Clocky got a lot of media attention approximately a year early from commercialization. The hype it is having might have a negative and positive affect towards when actually Gauri introduce the product to the market. The questions raised was “Would consumers interested in buying Clocky now be frustrated once they learned that the product was not yet commercially available, or would they be content to wait until Clocky reached the market?”
2) Target market
Gauri have to decide whether to focus on “Fun” or “Need” target segment. This is a critical step in the development as it will be difficult to change perception of a product once it gains a certain reputation.
3) Production partnership
Gauri have to make a decision whether to partner with a large-scale retailer (Wal-Mart) or to pursue co-branding opportunities with a product development outfit ( iRobot). Both ways offer it’s up and down sides. With a large scale retailer, Gauri face the risk of the product becoming a fad, like Tickle-Me-Elmo. On the other hand, pursuing co-brading opportunities, she might have less control over the product invention.
Gauri have to decide the price for the product. This also will determine the product strategy adopted. Selling to Wal Mart allows Gauri to cash in early but sacrificing the long term potential of the product. Whereas selling to a upper class store allows Gauri to build brand image but it may take longer time to generate enough profit to recoup back the investment.
Gauri needs to tackle the challenges from 1 to 4. I feel that the early media attention issue need to be taken care of first and make sure it does not negatively affected the commercialization of the product. Secondly, Gauri needs to determine the target segment which will lead to production partnership decision and ultimately pricing.
How would you segment...