CLOCKY THE RUNAWAY ALARM CLOCK

CASE ANALYSIS

1 CASE SYNOPSIS

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Classic example of decision making related to positioning

strategies, choosing the proper channel, potential partnerships,

manufacturing issues, market analysis, and PR management

for a new product .

A runaway alarm clock is developed by Gauri Nanda who is a

ex-MIT student, which has enhanced functionality.

Initially, she was able to grab media attention and consumer

interest but still at least a year away from the ability to debut

Clocky, she need to tackle a series of challenges and take

some difficult decisions in order to effectively launch the

product to market.

2 CASE BACKGROUND

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BRIEF CASE BACKGROUND Hong Kong-based Li & Fung Group was a trading company

renowned for skillful management of its supply chain with 80 offices in 40 different countries.

The bulk of its business came from the trading of soft goods, which comprised garments and apparel, with the remainder consisting of hard goods such as furniture, fireworks and promotional items. Its major market was the US, followed by Europe, which contributed about one-quarter of its turnover.

Gauri Nanda is the founder of run away alarm clock.

She has always been interested in melding technology and

entertainment.

She took a job as a software engineer at apple computers

in2000 shortly after graduating from the university of

Michigan with a Bachler of fine arts in media and music

technology.

After one year at apple she left the company and enrolled at

M.I.T’s media lab.

In fall 2004, Nanda begins designing clocky as her

electronics project for the course.

In February 2005, pictures of clocky were raised from the

depths, of the web which linked into the limelight.

She received the 2005 IG Nobel price in economics for her

prototype.

3 KEY ISSUE

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How to leverage the PR gained from the media

attention to market clocky ?

Decide the distribution partnership options as

compared to co branding options.

Should Nanda continue to make public appearances or

reignite only when her product is ready to launch?

How to position clocky given the current scenario?

What would be her target group for the product?

Where to manufacture the product- Domestically or

abroad?

4 INFERENCES

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AGE GROUP COUNT %GIFT

UNDER 13 185 9.9

13-17 32 7.7

18-25 463 23.9

26-35 2699 26.7

36-45 2253 35.3

46-55 896 53.2

OVER 55 557 73.4

American’s spent over $7 billion on clocks and

watches.

Presently , no alarm clock is fundamentally providing

fundamental changes in the sleep patterns.

24-35 years old were the biggest offenders to the

alarms in America

The general growth for the market over the last year

was 4%(EXHIBIT 3)

SITUATION ANALYSIS

4 INFERENCES

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STRENGTHS

Unique design & technology

Acclaimed prototype back by IG noble prize .

Humanized model

Lifestyle improvement benefit

WEAKNESSES

Priced higher then regular alarm clock

Not every one need a clocky

Not yet fully finalized product

OPPORTUNITIES

Growing market for watches

Increased public interests

Free promotion in form of publicity

THREATS

Regular alarm clock

Tech alarm clocks-Puzzle alarm clock

Loosing the public hype due to delay in the launch

Price senstivity

SWOT

PORTER’S FIVE FORCES MODEL

Industry Rivalry(High)

Buyer Power (Low)

Supplier Power(Low)

Substitutes (High)

Potential Entrants (Low)

4 INFERENCES

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4 INFERENCES

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TARGET GROUP

NEED MARKET

MINOR ANNOYED

SIGNIFICANTLY ANNOYED

SLEEP DISODERS –NARCOLEPSIS

BENEFITS- value the product more

FUN MARKET

• NOT ANNOYED BY ALARMS• NOT INETRESTED IN THE

FUNCTIONAL BENEFIT OF THE PRODUCT

• BENEFITS- less risky , repositioning possible

• DRAWBACKS-fad item, interest will vanish soon, may be positioned as amusing appliance only

4 INFERENCES

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MARKETING MIX

Acquisition strategy & Venture Capital to expand the market

Customer centric organizational Structure –ensured no bureaucracy

Pro

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ct • The Runway Clock•Cute appearance.

• $50 per unit Market price

Place/Chan

nel’s

• Big Retailers (Wall Mart) & Small Retailers()

• Home shopping Channels

Pro

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n • Tele-vision

• Print publication

• Radio(National Public Radio)

• British Broadcast Corp. (BBC)

5 suggestions

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• Pricing Decision-Gauri Nanda needs to reconsider her

pricing strategy and go for a reduced price.

• User Generated Content- Asking people to share their

experiences with the snooze button on Clocky website.

• Target Groups- Corporate houses and doctors (B2B

targets) and narcoleptic support groups, target the age

group 25-45 (Exhibit 8).

• Manufacturing decisions- The product should be

manufactured locally as it offers higher benefits in terms

of quality, legal hassles, reliability and shipping cost

compared to manufacturing the product in China.

• Positioning decision: as lifestyle improvement product

not as fad product

THANK YOU!