Diamond Foam Business: Marketing Strategies Analysis

Executive Summary

This study comes into three parts. The first part gives procedures/transformation process in Diamonds Foam and Pak Electron LTD. In this particular part different strategies like marketine, competitive priorities and commercial strategies has been discussed for each organization. In second part the different ideas or frameworks like inventory management, performance measurement, total quality management, capacity planning and supply string design has been taken. I have taken different case studies to clarify different methodologies. In the third part the impact of different concepts and frameworks has been proven on each of the organization.

a) Marketing Strategies of Diamond Foam

Positioning Strategy

Customer perceives Gemstone Foam is high quality foam. Foam is high engagement product and people see price and quality before purchase it.

Target Market

Diamond Foam has broad marketplace in Pakistan because any product requires foam is their target market and person used that foam is their goal customer. Customers in southern region are furniture showrooms and in north region are retailers plus they not sell their products to end-users. Gemstone Foam used product development strategy with different product in market.

Marketing Mixture Strategy


Products that are sold by Gemstone Foam are

  • Spring mattress
  • Bed mattress sheets/comforter
  • Foam mattress
  • Foam products


  • Quality aspects of Gem Foam's products are given below.
  • Complete peace of mind because of their customers Stone Foam never foregoes their responsibility in complete quality control. A good mattress is not only reliant on its high quality standard but also the grade of after-sale service that gives you lasting comfort and security.
  • Diamond Foam has a quality control office who created products and processes regarding to SOPs (Standard Operating Strategies) for useful and hazard-free procedures.
  • Diamond Foam offer high quality sleeping products that are remarkable values with all the healthful benefits associated with a good night.


  • Features of products that are made by Gem Foam's receive below.
  • Offer high quality rest products that are exceptional values with all the healthful benefits associated with a good nighttime.
  • Medically it is proven that not every person is comfortable sleeping on a plain surface, and Stone Foam brand, Dolce Vita Adjustable bed, offers you that option to raise your mind or toes to a position what your location is preferred.

Brand Name

  • Foam mattress
  • Europedic Memory Foam
  • Spring mattress
  • Dolce Vita Pocket Spring and coil Mattresses
  • Dolce Vita Bonnell Spring and coil Mattress
  • Diamond Jumbolon
  • Jumbolon Board
  • Jumbolon Spray
  • Jumbolon Rolls
  • Life style products
  • Dolce Vita Recliner
  • Dolce Vita Adjustable bed


  • Diamond Foam provides good cover and polythene handbag because of their products.


  • In warrantee period, Diamonds Foam replace foam mattress with foam bed when it is damaged.


Services of Diamond Foam are given below.

Going beyond traditional service, to provide state of the art customer support experience, and want to earn customer's commitment by delivering services that predict their needs.

Diamond Foam is constantly looking for ways to improve their service by hearing customers, monitoring performance and implementing the best practice.


Guarantee that is given to customers are given below.

Customer rest is intensified by the fact that each product comes with reliable warranty and superior class after-sales services.

Diamond Foam take take great pride in to be the best possible mattresses company, who also adheres to its viewpoint to provide superior after-sale service giving the reliable assurance that looks after your comfort year after year.

They repair or replace your mattress, this warrant continues from the initial night out of purchase.

Diamond Foam also gives promise on stitches taken out of the take care of where sewn to the bed.

Customers promise is valid for original buyer only and it shields you from the day you purchase your mattress or complete sleep system, and remains in line with the "Warranty Period" specified.


All brands of Dolce Vita (Pocket Spring), Duet and Dolce Vita (Bonnell Spring and coil), except Supreme Jacquard Cloth and Supreme, are discounted 23% for dealers and marketers. Supreme Jacquard Fabric and Supreme are marked down by 15%.


Diamond Foam offers warranties with their customers from a decade to 12 years.

Payment Periods

Diamond Foam gives a payment period with their customers up to 3 months.

Credit Items

Diamond Foam sells their item normally on cash basis but sometimes offers on credit to particular customers.



Diamond Foam has coverage to Pakistan, Dubai, Afghanistan and Egypt.


Diamond Foam has different syndication center in and outside Pakistan, which provide foam to end-users.


Diamond Foam never encounters a problem of stock out because one day plant work per day generate inventory for 2 weeks.


Diamond Foam has 150 trucks, which provide foam to traders and distributors.



Diamond Foam spends 10% of sales each year on advertising campaign and uses all means for communication (e. g. billboards, Television set, radio, etc) for advertise their foam.

Sales Promotion

Diamond Foam offers different rates of discount to distributors on different brands.

Operational Strategies of Diamond Foam

Diamond Foam provides standardized foam in large quantity (mass development), continuously improves their operations and functions. Sometimes they actually mass customization (in conditions of size and smoothness, which is detailed by customers). Gem Foam has no computer-integrated design for design of foam. Gemstone Foam has skilled labor (job shop) and everything plants are computerized (dedicated copy lines) and parts aren't group together prior to the operation because one man can operate vegetable. Operations team is responsible for making highly inexpensive, useful and customer oriented operations from receipt of products to safe storage area and onward dispatches to customers (retailers) timely and proficiently.

How Gem Foam make foam

First of most they gather raw materials (PPG, TDI and catalysts). Three of these add one tube and now heat is given to their mixture and after this solution is spread by air and foam will be produced.

Core Functions

Following are core functions of Stone Foam's operations team
  • Product Receipts
  • Handling & Storage
  • Dispatches
  • Hospitality

Operation Department

Purchasing Strategies of Diamonds Foam

Diamond Foam purchases raw materials from many suppliers (multiple sourcing) of Korea, Taiwan and China. The essential raw material used in the process is Polypropylene Glycol (PPG), Toluene Di Isocynate (TDI) and many catalysts. Price of raw materials (PPG and TDI) is dependant on price of crude engine oil ($100/barrel). TDI prices have increased up to 35% since previous 10 months. The primary function of the Stone Foam's purchasing division is to buy the supplies, materials, equipment and services necessary to guarantee that maximum value is obtained for each and every rupees spent. Specific responsibilities, responsibilities and functions of Stone Foam's purchasing division are as under

Policies and Procedures

Develop purchasing goals, plans, programs and strategies for the purchase and contracting for all materials, products, equipment and services.


Prepare and assemble features and technical requirements.

Consolidation & Bulk Purchasing

Explore the possibilities of buying "in mass" to use full advantage of quantity discounts. According to the situation, Gem Foam can purchase twice the raw material than demanded scheduled to fluctuations in the prices of petroleum products.


Work with other departments to establish standardization of materials, products and equipment where practicable within a competitive environment.

Compliance with laws

Insure that purchases are created in conformity with suitable statutes, rules, legislation and plans.

Unlawful for employees

Unlawful for employees to buy any materials, supplies, equipment, or make any contract with anyone minus the consent/permission of buying department.


PEL was founded in 1956. with the technical cooperation of M/S AEG, West Germany. It's the oldest composite electronic equipment-manufacturing product of Pakistan with the object of primarily producing transformers, switchgears and electric motors. In 1962 after finish of jv arrangement with AEG, total shareholding was purchased than by sponsors M/S Malik Brothers Small.



Low cost


Consistent quality with top quality machine performance.


A lot of quantity, equipment and workforce flexibility is present.


Here a refrigerator is operationally/ functionally analyzed. It is managed for a complete day.


Here the quality assurance is checked out. The refrigerator is examined technically and actually by quality control.


Now the refrigerator is ready for packing after quality control checking. So the refrigerators are jam-packed according with their models and colors, and delivered to the Storeroom.


Pel is at a seasonal business since the demand season for their product is from April to September. PEL management quotes the demand meticulously and tries to stay away from the pilling of the inventory. Development of PEL leap in Feb. to Apr and they need more Inventories in this year. To keep carefully the over head charges low PEL has a little no of everlasting workers which -work through the entire year. However to meet the demand of the top season the management retain the workers at the non permanent basis right before the start of the season.


Optimal replenish inventory system is employed by PEL. In more technological terms the minimum level will serve as reorder point.

For taking care of the Inventory of different kinds, The Company divides the inventory into two wide-ranging categories.

Raw materials Inventory

Finished goods Inventory


In every division PEL has got several machines which are being used in the production of various home appliances and electronic equipment whose capacity is assessed in term of the productivity measures.


In the complete production process there are specific stages which are more time consuming than the others. So this restricts the out put rate to a minimum level to that which was expected. Along the way of the refrigerator processing the bottleneck is established at the thermo foaming machine. In the process; from basic making to the packaging at the stage of the foaming this bottleneck is created.



On the average each department gets the capacity pillow which varies from 5% to 15%


PEL is wanting to lessen its cost through enjoying the economies of scales in his procedures. Due to the purchasing in the majority and using the activities as the measure of the overhead charges PEL has been successful in reducing

The cost of materials

The cost struck in the processes

The cost in the overhead.


Warburtons handling the supply chain to meet customer needs:

Warburton's is a family group firm founded in 1870s. It's the 2nd largest grocery store brand in UK. Its main target is on quality not amount. It holds market talk about of 25% of twisted bread which makes it a market leader. It produces about two million of bakery products daily anticipated to which there can be an everyday fresh supply of baked products in the market.

Warburton's have divided their economy into three sectors; primary, extra and tertiary.

The most important sector includes, the growing and extraction of raw materials, like grains. Warburton's use the farmers of UK and Canada to obtain a very good quality of grain/wheat.

Secondary sector handles changing the collecting natural material, that is, wheat into flour and then finally flour into bread. From fifty years, Warburton's are working with millers which convert their wheat into quality flour. Then this flour is utilized to bake quality breads. Many modern techniques are being used to properly bake bakery and ensure quality.

Tertiary sectors bridges other businesses and clients with Warburton's. Tertiary sector is most significant in UK in comparison with primary and secondary. Warburton's have more than 900 delivery vehicles, which ensure a fresh supply of loaf of bread in market every day. It uses software to ensure efficiency of this fleet. (thetime100:Warburtons)

Total Quality Management:

Any company on earth can get 100% customer satisfaction and the default can be minimized to zero by using total quality management.



Nissan Motor Manufacturing UK is the UK's largest car manufacturing facility. Additionally it is the most productive plant in Europe. This success is because of careful planning and design.

Total Quality Management (TQM)

TQM is an integral feature of Nissan's way of working. This means that everyone's target is on quality all the time. It is a means of operating that requires people to undertake an 'improvement culture' where everyone is researching to improve.

Just in time

This means that creation happens equally as it is necessary. Vehicles are produced as customers need them; components arrive as assembly lines need them, and so forth. In this way, production is more efficient and there is absolutely no cash tangled up in shares - either of recycleables or done goods. Every vehicle is electronically supervised at all phases of production so that its progress can be checked.


In such a high technology environment it is important that people are trained. NMUK's training section specializes in both technical and people development, providing opportunities for those employees.


Kaizen means 'ongoing improvement'. It means that Nissan is convinced that even the tiniest change can make a difference. Improvements are usually advised by small teams, who meet to talk about ideas for advancements.


Every human deserves to be healthy and work in an environment where he/she is safe. Trade unions, like UNISON provides employees with their rights, health and safety.

UNISON (the general public service trade union) was shaped in 1993, and nowadays it is UK's major trade union. Its main focus is on providing personnel with their protection under the law, health and protection. It really is a merger of three public sector unions where two-third workforce involves women. It has been witnessed that in presence of UNISON's safety representatives, proportion of crashes and death is reduced by 50 %.

UNISON takes on an important role in work place, like providing higher benefits (pays, compensations etc. ) to the employees with extra getaways.

It cares for the cleaning staff (as they are dealing with higher level of injuries), manages the catering (by increasing food levels in colleges and nursing homes etc. )

UNISON's legislation includes two types of laws/clause; an example may be the HASAWA act 1974 (which bounds the company to care and compute risk for employee's basic safety) and other legislations/clause binds the worker to provide for itself and employees around him/her because of their safety.

UNISON's point of view is to provide long lasting health and security for the individuals. It focuses on women health insurance and safety, reducing violence, bullying, passive smoking and reducing the strain of the staff.

Capacity Planning:



Car set up is a intricate operation with many components requiring skilled assembly.

That's a crude indicator of what is included. Management are especially keen to monitor total machine-hours and total labour-hours that each vehicle requires.

So far, Nissan has spent over 2. 1 billion in the Sunderland site, taking its development capacity to 500, 000 vehicles per yr.

Production methods must be able to produce what customers want, in the quantities customers require, at a price consumers are inclined to pay, and at a cost that produces a earnings to the business. That means that being reliable is essential to success.

In some market sectors it is possible to carry out individual job development to meet a particular customer's get e. g. a marriage dress, a birthday cake, a fixed kitchen. However, very almost all the world's car manufacturers mass produce standard models, with individual consumer choice being accommodated by offering various colorings, interior designs, and optional extras within a restricted flexible development process. People can still personalise their cars further e. g. by choosing a specific car subscription or accessories.

In quest for high end result at low average cost, car making typically uses a continuous flow production method, where sub-assemblies are helped bring together in a final assembly area. This is actually the most cost effective and efficient method of creation and the quickness of the ultimate assembly line can be fine-tuned to match consumer demand. If demand accumulates, the production lines can be accelerated, within predefined limits.

At NMUK, the development flow draws on three main development retailers, as well as support areas. The three main outlets are

body assembly


final assembly.

Supporting creation areas are

press shop - produces sections for the vehicles

plastics shop - makes bumpers (fenders) on site

castings shop - makes engine parts e. g. cylinder heads

engine shop - assembles motors, installs engine oil, coolant fuel

axle vegetable - produces axles that are joined up with to engines in final set up.

Widely different procedures generate different careers across three main wide areas.

The equipment is scheduled to just work at a given level although when demand requires it; there is certainly flexibility in regards to both the equipment and the workforce of 4, 300. At this time, with a two-shift structure, NMUK has a total creation capacity of around 360, 000 products/year - another transfer can be unveiled which would take creation up to 500, 000 systems/year if so when required.

Performance Way of measuring:(thetime100:cocacola)

In any business activity it's important to be able to measure the success of strategies and operational activities. Measuring performance is the simplest way of examining how effective strategies and initiatives have been, with a view to making appropriate adjustments. Organisations need to measure and report performance against stated aims within a business plan, eg daily result, employee turnover. The business enterprise will have a tendency to measure and evaluate only those aspects of its business over which they have control. Ideally these measurements also needs to be benchmarked so that everyone can easily see how performance compares with others.

'Coca-Cola' uses in depth units of performance indicators for many areas of its activities, including its work to market communal responsibility. Community performance indicators include

Impact assessments of community programmes. These include indicators of educational attainment as well by environmental improvement and conservation.

Perception methods of the business as a good neighbour.

Inventory Management:( inventorymanagement. com)

Inventory management is mainly about specifying the size and keeping stocked goods. Inventory management is required at different locations within a service or within multiple locations of any supply network to safeguard the standard and planned span of production up against the random disruption of working out of materials or goods. The opportunity of inventory management also concerns the fine lines between replenishment business lead time, taking costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and faulty goods and demand forecasting.

c) Pel

does not have proper inventory planning by the management due to which heavy amount of the amount of money has been put by the business in the inventory. PEL has the strength also that it has a good repute for the company as being the quality conscious company. It has own experts for the purpose of the control of the grade of products. Due to the good perception selection for the intended purpose of the power section the business has more access to the entire markets of the country. The company also has more developed system of the syndication of the business although it is not the built in one but it is working effortlessly.

The company also needs to make some of the methods for the purpose of the keeping the inventory at the perfect level. Proper planning of the material can reduce the amount of the investment in the inventories by the business. The management of this company will not use the sophisticated strategy while making or doing the function of the demand forecasting by the company. They count more on the judgmental options for the goal of the projection by the company about their sales.

In Gemstone Foam the training is given to workers for developing their skills for future. The campaign based on steady with job. Training is given on following basis.

Identify the distance in performance of the employees

Compile fine detail of employee require training

Identify the areas of training

Identify the skills of trainees.

Train the employee

Management assesses the training program's success or inability.

Benefits for employees

Benefits for employees provided by Diamonds Foam are as under.

Medical allowances distributed by the company to the candidate

Lunch and dinner facility for employees

Apron, gloves and other requirements related to development of foam bed will be provided by the company

Uniforms provided by the business to helpers/guard

Health and Protection policies

Health and safeness policies are explained by Gemstone Foam are given below.

Production area should be clean

First help should be provided in case of any emergency

Proper ventilation system/ exhaust admirers to keep up the temperature

In circumstance of any fire there must be fire extinguisher and an leave door in manufacturer and different offices

Electric wires should be put as no cables come under toes. Wire should be properly placed


I have explored both companies and I have gained much understanding of different aspects, functions, frameworks in both firm Diamond Foam and PEL. Both are using different kinds of inventory management, Total Quality managemeny, supply chain design, performance measures, capacity planning.

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