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Clocky The Runaway Alarm Clock Case Solution

Solution Id Length Case Author Case Publisher
2701 1743 Words (7 Pages) Elie Ofek, Eliot Sherman Harvard Business School : 507016
This solution includes: A Word File A Word File

In 2005, there were many companies in both the mainstream and specialty alarm clock segments of the US alarm clock industry, which was highly fragmented. It has been noted that over $7 billion was spent by Americans on luxury items like watches and clocks. Consumer spending on clocks, lamps, and furniture as a category exhibited an overall trend of growing increase. Since 2002, the import watches market has also increased at a CAGR of 4%.

Gauri Nanda is the maker of a novel new product called Clocky, an alarm clock that not only rings but also rolls around the room to wake its user up. Nanda must overcome a number of obstacles and make challenging choices in order to successfully launch her invention, despite the media attention and consumer interest she is facing and the fact that she is at least a year away from being able to introduce Clocky. These include marketing and PR management, channel selection, prospective alliances, manufacturing concerns, and positioning tactics.

Following questions are answered in this case study solution:

  1. What is the appropriate value proposition for each target market segment?

  2. Which of the positioning options are most feasible given the product development of Clocky to-date and Nanda’s goals, resources and capabilities?

  3. Do you see the positioning of Clocky changing over time?

  4. Which of the positioning options are most valuable to Nanda given her aspirations as an entrepreneur? 

  5. Given your chosen positioning option, recommend the key components of a marketing launch plan for Clocky. Within Nanda’s budgetary constraints consider product design/features, manufacturing location, pricing, distribution channels, and marketing communications?

Case Study Questions Answers

1. What is the appropriate value proposition for each target market segment?

Gauri Nanda, the founder of Clocky: The Runaway Alarm Clock, must find a way to segment her product in the market. Her product, Clocky, can be segmented in two different ways. The target market for the first category could be those who directly require the function of the product. The major significance of segmenting the product this way is that it directly meets the wants of its customers by providing a unique product that effectively wakes them up in the morning. The need market's small target market is a drawback. The vast majority of insomniacs are young adults between the ages of 18 and 29.

A sophisticated alarm clock is less of a necessity outside of this group. This division misses Clocky's distinctive "Fun" and creative experience. The "Fun Market" is the other segmentation method that is suggested. Nanda may then concentrate on the comfortable, pet-like aspects that make her product more than just a method to get out of bed if this is put to use. Customers who are sick of using the same old alarm clocks and want something different may find this additional experience and relationship appealing.

Since it can target older consumers who are wanting to buy presents for their family as well as children by using various patterns and designs to make the clock look more lifelike, this type of segmentation will draw more consumers. The main advantage of this is that it may both provide the basic function of waking someone up in the morning and offer an additional experience to it. The "Fun Market" raises some red flags because it could become a passing fad. The popularity of the product won't last if buyers view it as nothing more than a passing fad.

Clocky will set itself apart from other alarm clocks owing to its specification of having a pet-like feature by targeting a particular audience in the "Fun Market." Clocky's fun yet the innovative approach of waking people up in the morning will not become unsuccessful, but will instead open up a chance for long-term business.

2. Which of the positioning options are most feasible given the product development of Clocky to-date and Nanda’s goals, resources and capabilities?

The fun market should be Nanda's main concern. Her invention had two crucial traits that are typical of fad products: a poor product utility and a high initial popularity. I thought it was interesting that so many prospective customers choose to give the goods as a present rather than purchase it for themselves. They would eventually come to understand that getting more sleep would be the real answer to their issue. Nanda had a strong sense of entrepreneurial spirit, but she lacked the experience to launch her invention. She was still somewhat inexperienced and lacked a clear direction for her career.

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