Case analysis of Clocky-the runaway clock with case synopsis, case background,inferences and recommendations

1. CLOCKY THE RUNAWAY
ALARM CLOCK
CASE ANALYSIS

2. 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.

3. 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.

4. 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?

5. 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

6. 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

7. 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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5

8. 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

9. 4 INFERENCES
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MARKETING MIX
 Acquisition
strategy &
Venture
Capital to
expand the
market
 Customer
centric
organizational
Structure –
ensured no
bureaucracy
Product
• The
Runway
Clock
•Cute
appearance.
• $50 per
unit
Market
price
Place/Channel’s
• Big Retailers
(Wall Mart)
& Small
Retailers()
• Home
shopping
Channels
Promotion
• Tele-vision
• Print
publication
• Radio(Nation
al Public
Radio)
• British
Broadcast
Corp. (BBC)

10. 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

11. THANK YOU!
Anjali Mehta PGDM2-1504
Baljendar singh PGDM2-1549
Izhaar PGDM2-1533
Shubham PGDM2-1539
Shivani-PGCM5-1508