Clocky is not ready to be manufactured. The unsolicited media attention Clocky received immediately sparked the interest of consumers both needing and wanting such a product. The challenge lies in keeping the interests of the consumer until Clocky is fully developed and ready for the market (± 1 year). o? The unavailability of Clocky can lead to frustrated consumers which may affect the chances of them buying Clocky at a later point in time o? The excitement/hype created for Clocky may also wear out and lead to less enthusiastic consumers once the product is launched.
This could possibly limit the market to only consumers who buy this product for actual needs. o? The “fun” market can easily find other fun products to entertain themselves with which could seem as more exciting at the time that Clocky is released. So the challenge here is to reignite the excitement that has already been created in consumers at a later stage. ?? The choice of target market and positioning has an effect on: > Estimate the right pricing point (might vary if bought as gift vs. for self) > The design features emphasized (functionality vs. ute/shaggy look) > Choice of where to distribute Clocky (difference in the margins/type of store) ?? ?? ?? ?? Customer mailing list through website (8000 email addresses)– makes it possible to collect data and be able to evaluate how to position Clocky based on the market of most likely buyers Media exposure – product is very visible especially in popular shows such as Good Morning America and the Today show and winning the Ig Nobel Prize. This created awareness of Clocky activated both the needs of some consumers as the interest of consumers who viewed this as a fun product because of the “quirk” factor that was emphasized Support of M. I.
T. ’s Media Lab – provided guiding and support for the prototype No funding – the prototype was build with a family loan. Getting funding from sponsors might limit the control over the actual product. ?? Demand for a more effective means of waking up – seen from the many other innovation attempts (Alarm Watch, Match Alarm Clock, Tugaslugabed) People still buy alarm clocks – during a 10 year period the total manufacturing costs of alarm clocks has not declined and the import of watches and clocks have been growing (table A in Clocky Case) Companies interested in product – potential partners in M. I. T. sponsors, and early talks with Walmart ? ?? ?? ?? ?? ?? ?? ?? Part of the potential need-market is already reached through website – both mailing list and pre-orders Price is less an issue – if the product provides a solution to a problem consumers are willing to pay more, especially the group with serious sleeping problems. Design is less important – focus on functionality/problem solving Broad segment (waking up minor annoyance vs. real problem/hindrance in life) Value proposition > More effective than any other alarm clock, unpredictable, resolve problem Feasibility > Once the need is met, these consumers are less likely to buy a new version of Clocky (i. . product life cycle is short) ?? ?? ?? ?? After initial hype, product is ‘abandoned’ ? product looses value and will end in discount bins/online auctions Seems more important at that moment than it acutally is Value proposition >social proof Feasibility > Will lead to short term profits but will probably become a fad product ?? ?? ?? ?? ?? People with higher income Can target more specific: age category 26-45 More specific segment of the fun-market Value proposition > innovation, new (option on the long run, when there is a budget for differentiating and added features ) Feasibility ?
Difficult to reach with low budget because of R&D, prototype of Clocky is not considered as gadget ?? ?? ?? ?? ?? Broad segment (differentiate later on demographics, psychographic and behavioral segments e. g. children, business people etc. ) ? long product life cycle Fun market doesn’t exclude need market ? large segment Media attention has been emphasizing the quirk factor and thus profiling Clocky as a ‘fun product’ ? positioning in mind Continuous possibility to satisfy customers and entertain with new version? growth Many competitiors among fun segment ? continious innovation BUT: ??
Danger to become fad product ? don’t neglect the functional part ?? More competitors among ‘fun’ components ? don’t neglect the functional part ?? Value proposition > humanization of technology, robotic household pet, gives attention, interactive device, amusing. ?? ?? To break even to pay off loan Make profit to differentiate product in order to reach different segments and lengthen product life cycle ?? ?? ?? A lot of media attention is focused on the fun factor A Finished and working prototype Mailing list with approximately 8,000 potential customers willing to buy ?? Outsourcing? ? Entrepreneurial personality ‘she enjoyed working on projects from scratch and seeing them through to the end’ (not likely to outsource core components) Producing in domestic industry ?? It is important to keep control over the quality of production ? First edition needs to build brand reputation? Geographical scope: Only sales in U. S. (for now) ?? She knows the U. S. market ?? Majority of media exposure in U. S. ?? Lower transportation cost ?? ?? ?? Distribution: keep the price low ?? By selling on her website in stead of a store, use discount during special periods. Later on ? se different channels to meet different segments (e. g. elderly who are not online). ?? ?? Position it a fun product but don’t neglect functional part. Start with one product and differentiate in later stage ? differentiated marketing, marketing mix ? reach specific segments Promotion: Build brand awareness through promotion ?? ?? ?? ?? ?? ?? ?? ?? ?? Keep mailing list up to date by sending teasers Via her website ? WOM Approach bloggers to test and elaborate on product ? WOM One big stunt to put Clocky back in the spot lights ? not necessarily during big event e. g. Christmas because of threat to become fad item.
Social media (facebook tagging, twittering) Price competitions on own website/social media Exposure by pop-up store tour around the U. S. Approach institutes who deal with people who have serious problems with getting out of bed Approach companies to make special deals (e. g. Christmas gift for employees) ? bulk production ?? ?? ?? ?? Positioning must change over time to avoid fad-factor. When financial capital is obtained ? differentiate Clocky for different segments (e. g. fun toy for kids which says : ‘catch me, wake up’, personal voice memo when giving Clocky as a gift etc. In other words, personalize Clocky for profitable segment with colors, appearance and audio (i. e. add new features). Build a brand around Clocky. Make sure that the Clocky associations are transferred to the brand in order to build a strong image and brand identity. Worst case scenario : Even if Clocky will not have a long product life cycle, the brand should be used to develop other products. The brand should create a long term value for its customers. Keep on monitoring the market and try to anticipate on needs in order to keep up with competitors. ?? ? ?? ?? ?? ?? ?? ?? ?? ?? Keep media attention low until product is near launching date ‘Smart’ promotion, trigger WOM Keep core components in-house, remain control (in first stage) Focus on ‘fun-market’ because of sustainability Start with selling one product on website because of budgetary constraints and break even/make profit and build brand awareness Continuously monitor market, anticipate on needs of different/new segments in order to lengthen product life cycle Later stage: differentiated marketing in order to maximize profit ? serve large segments
