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Clocky
Clocky is an alarm clock that runs away when the alarm goes off, requiring the user to get up and catch it to shut it off. It was originally created as a student project at MIT and became very popular. The creator started her own company, Nanda Home, which has sold over 35,000 Clocky units. The alarm clock industry is fragmented with many players and Clocky differentiates itself through its unique runaway feature. Nanda Home uses various marketing strategies such as social media, partnerships, and trade shows to promote Clocky and builds brand loyalty to address future challenges like declining sales and sustaining media interest.
Clocky
- 1. Advanced Marketing –Case Study Clocky : The Runaway Alarm Clock a presentation
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- 3. • A smallproject 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 alarmclock 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 consumerconfidence 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 newtechnology 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 theiralarm 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 byrubber 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 choiceof 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