Marketing to ‘Real People’: Eight Sleep’s Move from Tech Icons to Main Street

This Wall Street Journal article, “Musk and Zuckerberg Praise This $3,000 Smart Mattress Cover. Will Regular People Buy, Too?” offers an example of a company trying to move from a high-end niche to a more mainstream segment. Can it succeed? The short article could be assigned for class or summarized in a short lecture. There are some interesting possible discussion questions noted below.

Relevant Chapters

Lots of potential ties. Consider returning to this example for multiple chapters, which can have the added benefit of showing students how all the pieces fit together.

1. Chapter 4: Segmentation and Positioning – shifting to a broader market
2. Chapter 5: Consumer Behavior – understanding motivations and influences
3. Chapter 8: Product Planning – technology, branding, and perceived value
4. Chapter 9: New-Product Development – innovation and market expansion
5. Chapter 13: Integrated Marketing Communications – multichannel promotion mix
6. Chapter 17: Pricing Policies – value-based pricing and subscriptions

Discussion Questions/Answers

Chapter 4: Focusing Marketing Strategy with Segmentation and Positioning

• How has Eight Sleep shifted its segmentation strategy from its original market to its new target?
  • Originally targeted affluent, tech-forward consumers and elite influencers (e.g., Musk, Zuckerberg).
  • Now pursuing broader, health-conscious segments (e.g., doctors, dancers, teachers).
  • Repositioning the product from “luxury tech” to “mainstream health and wellness” tool.
• What challenges and opportunities does Eight Sleep face in repositioning a high-end product for a broader audience?
  • Challenges: Perception of elitism, high price tag, need for education, unfamiliarity with tech.
  • Opportunities: New applications (e.g., menopause, sleep apnea), broader distribution, relatable messaging.

Chapter 5: Final Consumers and Their Buying Behavior

• What psychological and social influences affect how consumers perceive and adopt smart mattress technology?
  • Psychological: Perceived health benefits, desire for better sleep, tech curiosity.
  • Social: Endorsements (celebrities, professionals), trend toward wellness and biohacking, social proof.
• Why might consumers hesitate to purchase a product like the Eight Sleep Pod, even if they value sleep improvement?
  • High price creates risk and need for justification.
  • Subscription model may trigger “commitment hesitancy.”
  • Complex product benefits may not be easily understood without trial or demonstration.

Chapter 8: Elements of Product Planning for Goods and Services

• How does the technology in Eight Sleep’s product add value to the customer experience?
  • AI-driven sleep tracking and temperature control personalize the experience.
  • Enhances health outcomes (e.g., potential help with hot flashes or apnea).
  • Transforms a traditional product (a mattress) into a service-augmented product.
• How has Eight Sleep used branding to differentiate its product from traditional mattress competitors?
  • “Sleep fitness” branding frames the product as performance-enhancing, not just comfort-focused.
  • Associates with elite influencers (Musk, Zuckerberg) to signal innovation.
  • Adds legitimacy by exploring medical applications and regulatory approval.

Chapter 9: Product Management and New-Product Development

• What stage of the product life cycle is Eight Sleep’s Pod currently in? How can it extend its lifecycle?
  • Likely in the growth stage, moving toward maturity.
  • Lifecycle can be extended through:
    • Market development (new segments, international markets like China),
    • Product improvements (medical certification),
    • Expanding distribution (retail showrooms).
• What are the risks and rewards of positioning a new product as both a luxury and a health device?
  • Risks: Confusing messaging, alienating cost-sensitive buyers, unmet expectations.
  • Rewards: Higher perceived value, justification for price, opportunity for medical validation and insurance coverage.

Chapter 13: Promotion—Introduction to Integrated Marketing Communications

• How has Eight Sleep evolved its promotional strategy as its target market has shifted?
  • Moved from niche social influencer strategy to mass-market TV ads.
  • Uses relatable, real-person testimonials to build trust.
  • Added physical retail to allow hands-on experience—essential for complex, high-ticket products.
• What are the benefits and risks of relying on celebrity endorsements for launching a new product?
  • Benefits: Instant credibility, media buzz, aspirational appeal.
  • Risks: May create perceptions of exclusivity or inaccessibility; dependence on public image of endorsers.

Chapter 17: Pricing Objectives and Policies

• How does Eight Sleep justify its premium pricing and annual subscription?
  • Emphasizes health benefits, personalization, and ongoing software updates.
  • Positions product as a long-term investment in wellness.
  • Uses data and testimonials to show outcomes (e.g., improved sleep, temperature control).
• What are some potential pricing strategies Eight Sleep could consider as it targets a broader market?
  • Tiered pricing: Offer basic and premium versions.
  • Bundled value: Include 1-year subscription or accessory packages.
  • Financing options: Monthly payment plans or 0% APR to reduce sticker shock.

ChatGPT was used to develop ideas for this blog post.