A presentation for advanced marketing class - Dec 2012

1. Advanced Marketing – Case Study
Clocky : The Runaway Alarm Clock
a presentation

2. Clocky
Value Proposition

3. • A small project for Industrial Design course in
MIT
• The device attracted a great deal of attention
after its description was posted,
along with dozens of other student projects, on the
Media Lab Web site
• First prototype was demonstrated in Good
Morning America
• Gauri Nanda then set-up her own business
Nanda Home with the help of her family and
MIT
• First run of 500 clocks sold out almost
immediately online. Just two years after she
started, Nanda has sold more than 35,000 Clocky
units
• The company broke even two months
after its sales.
Clocky The Story

4. 1st snooze alarm clock by GE Telechron
Fragmented industry with a significant number of players
in the regular and niche alarm clock segment
Revolutionized the old technique and added great value
for the coming generation
Industry revenue was approximately $713 mio in 2008
(US Census data)
Bedside alarm clocks – one strong-selling items
Industry Outlook
facts and figures

5. • Increasing consumer confidence in
technology as well as economy sentiment
• The average American spends $1,200 on
electronics annually
• Worldwide clock sales were on target to reach
$5.42 billion in 2017
• Alarm clock : a low-involvement, low-cost item
• 57 percent of 25-to 34-year-olds hit the snooze
button daily
• Short product-life cycle
• A great idea is simply unstoppable
Market trends
and challenges

6. To introduce new technology and a new level of interaction with the end users.
A new creative product launched with optimal price-skimming opportunities
Entry Barriers Customer loyalty can discourage potential entrants
Large buyers have less power to negotiate because of few close
Buyer Power
alternatives
Supplier Power Better able to pass on supplier price increases to customers
Threat of Substitutes Customer’s become attached to differentiation attributes
Rivalry Brand loyalty to keep customers from rivals
Generic Strategy - Differentiation
Idea generation

7. people want their alarm clock to be a stylish accessory that goes beyond
functionality
Travel Clock
Smartphone app
Fun specialty
Digital AM/FM Radio
MP3 compatible
Clocky Segmentation

8. Need market : heavy sleepers Fun market : robotic pet
Humanization of technology
Clocky : the runaway alarm clock
Clocky targeting
and positioning

9. Functionalities
Design - appearances
Price
Attributes Clocky Blowfly Puzzle
Robotic pets - humanized product Works like a blowfly or mosquitos Puzzle made up of four pieces
Idea that jump off the nightstand and flying around the room and it firing the them in the air
wheel around
Size 4. 5.25" L x 3.5" W x 3.5" D 5.51"W x 5.51"D x 3.93"H 7"W x 6"D
Battery life 4 AAA batteries; early low battery 4 AA batteries 3 AA batteries
Architecture
warning
Interfaces No extra ports
Alarm shut off Sense you are out of bed to find Catch the propeller that was set Solve a simple puzzle
mechanism hiding Clocky flying and put it back in the cage
Sensory interaction Interacts with hearing and touch senses
Materials Plastic, electrical wiring Plastic and metallic-colored fly Plastic
Price $39.90 $30 $29.99
Snooze time 0-9 minutes 0 minutes 0 minutes
Features
Alarm sound Beeps in random pattern & Music Buzzer Sound of the pieces flying away
with its additional mp3 features
Alarm volume Constant volume Increasing volume Constant volume
Sound quality MP3 player sound quality AM/FM radio sound quality AM/FM radio sound quality
Consumer review 4 of 5 4 of 5 2 of 5
Competitive environment

10. Features
Buffered by rubber wheels and Computer chip inside the device randomly Impact-resistant design
shock absorbing materials programs its route each time the user hits
‘snooze’
Clocky $39
Ticky $49
Tocky $58
Red, almond, aqua,
chrome, black, raspberry Black, white
Collaboration with NPR with the launch of
the Tocky® All Songs Considered™ and
Tint $8 Tocky® Wait Wait… Don't Tell Me!®
Tint limited edition $10 rolling mp3 alarm clock.
Aqua, black, white, kiwi, orange
Black, kiwi, aqua, Product
white, orange
and price

11. Attribution matrix
Timer Basic necessity
Alarm sound Mp3 quality sound
Robust Product quality
Cute factor Attracts new customer
Emotional Increase product affinity
connect
Value for Should not be costly
money
Feeble product Should not be weak
Speaking For new generation
clock
Poor functioning Should not be required

12. Online Strategy Social media marketing
Multimedia online demo
nandahome.com
E-commerce portal
Amazon.com Promotion Strategy

13. Branding & Promotion
Packaging, naming, taglines (the runaway alarm clock), photography and video imagery
Media marketing & press release
Promotion Strategy

14. Sales strategy
Trade show : to win the hearts of Partnership building : collaboration
snoozers from all over with RED
Promotion Strategy

15. • The choice of distribution channel is
essentially related to the image
• The important factors to deal with big retailer
gave Nanda Home credit arrangement
facility which cushions its manufacturing cost
• Large retailer like Walmart, Target
• Upscale electronic venues like Sharper
Image, Brookstone
• Small designer stores : shop of museum,
modern art in NYC
• Direct channel like Home shopping network,
dedicated portal nandahome.com and e-
commerce partners with Amazon
Distribution Strategy

16. • Declining Sales – short product life cycle
• Sustaining media interest.
• Creating brand loyalty
• Upgrade Clocky product line
• Threat of Cannibalization – introduction of ‘tech-savvy’ cousin
like Tocky
Future Challenges