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. cute/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.e. 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...