Gauri Nanda developed Clocky, an alarm clock that moves around to prevent users from turning off the alarm easily. While Clocky gained media attention, Nanda faced challenges in launching the product commercially. She needed to decide on distribution partnerships versus co-branding, manufacturing locations, target markets, and how to leverage early publicity to market Clocky effectively when it was ready to launch. Nanda analyzed Clocky's strengths as a unique product with publicity, but also weaknesses as not a final product and potentially higher priced. She considered options like targeting annoyed users, those with sleep issues, or marketing it as a fun novelty item.
2. 1 CASE SYNOPSIS
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Classic example of decisionmaking relatedto positioning
strategies,choosingthe 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 enhancedfunctionality.
Initially, she was able to grab media attentionand consumer
interestbut still at least a year away from the ability to debut
Clocky, she need to tackle a series of challengesand take
some difficult decisionsin order to effectively launch the
productto 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 leveragethe PR gained from the media
attentionto market clocky?
Decide the distributionpartnershipoptionsas
comparedto co brandingoptions.
ShouldNanda continueto make publicappearancesor
reigniteonly when her productis ready to launch?
How to positionclockygiven the current scenario?
What would be her target group for the product?
Where to manufacturethe product- Domesticallyor
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)
PotentialEntrants
(Low)
4 INFERENCES
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8. 4
INFERENCES
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TARGET GROUP
NEED MARKET
MINOR ANNOYED
SIGNIFICANTLYANNOYED
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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• PricingDecision-Gauri Nanda needs to reconsiderher
pricing strategyand go for a reducedprice.
• User GeneratedContent- Asking people to share their
experiences with the snooze button on Clocky website.
• Target Groups- Corporatehouses and doctors (B2B
targets)and narcolepticsupport groups,target the age
group 25-45 (Exhibit8).
• Manufacturingdecisions-The product should be
manufacturedlocally as it offers higher benefitsin terms
of quality, legal hassles,reliabilityand shipping cost
comparedto manufacturingthe product in China.
• Positioningdecision: as lifestyleimprovementproduct
not as fad product