Exercise:The Run Away Alarm Clock
1.What are the key marketing challenges facing Gauri Nanda? How would you prioritize them in terms of which are most crucial to effectively bring her new product to market? There are many marketing challenges which must be eradicated before the product can successfully enter the market. Gauri needs to get the invention into production as soon as possible. The massive media frenzy has begun yet she is still only at the protocol stage of manufacturing. Buyers were lining up to purchase the product yet Gauri knows she is at least a year away from full assembly. As the article states “Would customers interested in buying Clocky now be frustrated once they learn that the product was not yet commercially available?” The next marketing challenge is to decide to partner with a large scale retailer or to track a co-branding opportunity. This challenge may seem like a minor decision but in fact will shape her company both now and in the future. The choice of entering a large scale outlet store poses the risk of the product becoming a flash in the fan fad whilst co-branding may limit the control held over the invention. The next issue which arises is the issue of pricing. How the product is priced will be determined by whether a long or short term strategy is adopted. This matter has a strong link with the distribution tactic. If stores such as Wal Mart are elected to sell the creation then it may be seen as a short term solution in which to retrieve costs early as possible. Whereas an upper class store might be elected if Gauri wishes to revolutionize the product over time and create a brand (such as Playstation 1, PS2, PS3). Finally there is the issue of aiming the specialized alarm clock to the “Fun” or “Need” target segment. It is hard to change the perceptions of a product once it has gained certain perceptions so the correct choice here could be...