Case facts / situational context
* Nanda, a young and innovative M.I.T. graduate student is the founder of Clocky.
* Clocky is an innovative alarm clock designed for people who have difficulty getting out of bed in the morning. Clocky could jump off and roll around the room, forcing people to get out of bed to turn off the alarm.
* Why has Nanda introduced the Clocky? It is a new solution to ‘just’ snoozing.
* The Clocky has already got overwhelming attention on diverse media.
* It is a hype while it still in prototype fase this is not a great timing for Nanda, because she wanted to wait for another year to have the capacity to debut Clocky properly on the market.
, thus, Nanda is currently in the process of finalizing a patent and will be entitled to a royalty-free license upon graduation.
* Nanda has received a $45,000 loan from family to help with the start up of Clocky.
* Challenge: Nanda needs to decide whether to partner with an American product design firm or an overseas company. Working with an American company will lead to higher costs, and partnering with an overseas firm, could deliver the same capacity but a lower cost. Disadvantages to do this are, risks like fraud, quality control, and communication issues.
* The manufacturing firm would be paid for the costs of the product, per each individual Clocky made 15 dollars, which would be too expensive for an American company and might be less expensive for an overseas firm. Others things like shipping costs, warehousing and packaging fees, credit card processing fees, would add more money to it, + wasted merchandise.
* Design choices;
* Manufacturing choices.
SWOT ANALYSIS OF CLOCKY
* Founder is entrepreneurial;
* Idea is not legally protected
* High start up costs.
* High media attention.
Questions to answer
1. Perform a thorough case analysis and identify the key marketing challenges Gauri Nanda is facing. Explain your answer.
Key marketing challenges:
* Segmentation: fun, need or demographic;
* Positioning (differentiation from competitors)
* Choice of producer (PRODUCT)
* Retail price (PRICE)
* How to direct the media attention (PROMOTION)
* Which distribution channels and which retail stores (PLACE)
2. Nanda has several options for positioning Clocky and she is considering different potential market segments.
a. Do you see additional segmentation options for Nanda other than the “Need” and “Fun” target markets? Identify at least one other segment.
Need market = heavy sleepers, people who have serious difficulties waking up each morning with a standard common alarm clock. (Research from neuroscientist has shown that Clocky will make it more difficult for the brain to go back to sleep, waking the user more effectively and promoting superior wakefulness throughout the day.)
Fun market = people who might see Clocky as an amusing appliance, a nice robotic household pet (innovativeness).
Demographical = age. In the case: 26-35 and 36-45 are the most interesting sub group (70% of the potential buyer group). So for example: young families.
* 18-25 years (highest sleep deficiency, the least length of sleep 6,8 hours, the most problems with awakening; 7% of the mailing list).
* 26-45 years (working people, the main segments of self consumers motivated both by needs and by fun (70% of mailing list).
* 46 years and more (people buying mainly
Corporate clients (corporations) = they could buy it as a gift for their employees. Over 73,4% of the...