2. VALUE PROPOSITION
Channel the amazing capabilities of WATSON to help children in
their development process. Use this technology to establish a
new toy that utilize WATSON to record child engagement,
analyze and provide insight for parents. Take the concept of
cognitive toys to a new level.
3. COMPETITIVE LANDSCAPE
• IBM has partial competitors for the Watson AI Technology:
IBM GOOGLE SAFFRON
TECH
CLOUDERA
SIZE LARGE LARGE SMALL SMALL
PLATFORM WATSON NOW/DEEPMIN
D
Saffron Streamline Cloudera Enterprise
WORD-BASED AI YES YES NO NO
FINANCIAL RESOURCES LARGE VERY LARGE SMALL SMALL
LIKELIHOOD TO COMPETE
WITH IBM
- HIGH LOW LOW
COMPETITIVE THREAT - HIGH MEDIUM MEDIUM
4. MARKET SIZE
• Initially we would just focus in the USA market.
• Target: Kids under 5 years of age.
• Variables to consider:
• Population of children under 5 years of age
• Average number of children per family
• Education level
5. MARKET SIZE
Total number of households
than can targeted
𝑀𝑎𝑟𝑘𝑒𝑡 𝑆𝑖𝑧𝑒 =
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐶ℎ𝑖𝑙𝑑𝑟𝑒𝑛 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑎𝑔𝑒 𝑜𝑓 5
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐ℎ𝑖𝑙𝑑𝑟𝑒𝑛 𝑝𝑒𝑟 𝑓𝑎𝑚𝑙𝑖𝑦
∗ 𝐸𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛 𝑙𝑒𝑣𝑒𝑙
Proxy of income level
• By doing this we found an estimated
number of households who are potential
buyers of the toy.
3.15 MILLION
Number
of kids
per
househ
old
Amount
of
children
under 5
(Total Population
in the USA)* (%
of Americans
with BA degree)
6. ECONOMIC MODEL
• The economic model was based on the past annual income statements
2009-2013 of Hasbro, Mattel and Lego (companies we believe might be
interested in developing this sort of toy) and marginal revenue.
• Average Net Margins:
• Since Lego is an outlier we decided to remove it from the sample. The
average: 10%
• Two way income:
• License revenue from Watson technology
• 9.10% minimum margin for every sale
HASBRO MATTEL LEGO
8.68% 11.95% 22.5%
8. TOY DESIGN
• Toy will follow traditional, friendly aesthetics of
conventional toys
• The cognitive toy technology could be placed inside a
normal, soft teddy bear, integrating a lithium ion
battery, microphone, speaker, and wireless
communications
• A standard teddy bear is 14 inches tall, 6 inches
deep, and 9 inches wide
• Further details and versions will be determined by the
toy companies licensing the technology
9. BRANDING STRATEGY
Brand Target audience Key Message Behavior Objective Channels/Vehicle
s
Materials Tactics
IBM Watson • Toy
manufactures
• Toy industry
associations
• Analyzers
Consultants
• Big Data
• Cognitive
solutions
• Recognize
Watson’s leading
position in
providing cognitive
solutions
• Willingly to
develop Watson
embedded toy
• Toy industry
expos/seminars
/exhibitions
• Toy industry
magazines
• Toy industry
related websites
/platforms
• Social media
• Posters
• Leaflets
• Flyers
• Videos
• PPTs
• Advertisement
• Research
Center visit
“IBM Promise” +
• Toy end users
(Children and
parents)
• Smart toy,
smart life
• Childhood
partner
• Help
children
learn faster
• Very aware of “IBM
Promise”
• Willingly to buy the
toy with “IBM
Promise”
+
• Children
business
related Website
/platforms
• Airport video
Ad.
• Videos
• Small
souvenir
• Posters
• Leaflets
• Flyers
• Sponsorship
activities on
some children
events
Co – Branding Strategy - “IBM Promise”
• IBM actions: Build band awareness – “IBM Promise” / Build BIS for “IBM Promise”
• Customer benefit: Toy producers are allowed to put “IBM Promise” logo on the
product as endorsement
Communication Strategy
• Prioritize messages (from Positioning Statement) that address the behavioral objective and key leverage points identified in the Buying Process
• Reinforce drivers and overcome barriers (Customer Portrait); emphasize key differentiators
• Identify key communication channels/vehicles, tactics and measurement choices
• Allocate marketing communications budget and develop schedule/sequencing plan
