CLOCKY THE RUNAWAY ALARM CLOCK

CASE ANALYSIS

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.

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.

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?

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

4 INFERENCES

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STRENGTHSUnique design & technology Acclaimed prototype back by IG noble prize . Humanized modelLifestyle improvement benefit

WEAKNESSESPriced higher then

regular alarm clockNot every one

need a clocky Not yet fully f inalized product

OPPORTUNITIESG

rowing market for watchesIncreased pu

blic interestsFree promot ion

in form of publicity

THREATSRegular alarm clockTech alarm clocks-Puzzle alarm clockLoosing the public hype due to delay in the launchPrice senstivity

SWOT

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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4 INFERENCE

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TARGET GROUP

NEED MARKETMINOR ANNOYEDSIGNIFICANTLY ANNOYEDSLEEP DISODERS –

NARCOLEPSISBENEFITS- 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

4 INFERENCES

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MARKETING MIX Acquisition

strategy & Venture Capital to expand the market

Customer centric organizational Structure – ensured no bureaucracy

Prod

uct• The Runway Clock•Cute appearance.

• $50 per unit Market price

Place/Chan

nel’s

• Big Retailers (Wall Mart) & Small Retailers()

• Home shopping Channels

Promotion

• Tele-vision

• Print publication

• Radio(National Public Radio)

• British Broadcast Corp. (BBC)

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

THANK YOU!Anjali Mehta PGDM2-1504

Baljendar singh PGDM2-1549Izhaar PGDM2-1533

Shubham PGDM2-1539Shivani-PGCM5-1508Haaris-CMBA6-1524