Clocky: The Runaway Alarm Clock Principles of Marketing Sy Syms School of Business Yeshiva University Professor Chan – Spring 2014 Todd Robinson Eli Takhalov Alexander Auerbacher Yosef Friedman

Clocky Innovative alarm clock for people with difficulty waking up in the morning Rolling around in a random direction every morning and emitting a repetitive beeping noise Clocky forces owners to get out of bed and thus ensures a successful wake up

Market Segmentation - need or fun Need – Sleep aid for those that have difficult time waking up from sleep and feel that it disrupts their life significantly – Can be positioned as product driven by research, can be beneficial to sustained sales at higher prices

Market Segmentation - need or fun Fun – Product that varies on a toy clock – Presented as a playful, furry, and robotic pet that functioned as an alarm – Avoid risk of failing consumer expectations and maintaining product leadership

Positioning Statement “For sleepy customers who are tired of not waking up in the morning and pressing the snooze button, the Clocky offers a unique, fun alternative that includes a clock that moves so you wake up and stay up.”

Positioning Strategies Medical Necessity Effect on one’s lifestyle Solution for small and large segments People with Narcoleptics or people with minor sleeping issues. Need Element

By Benefit Need to wake up Against Competition Effective Technological capabilities – Erratic movement Need Element Positioning Strategies

Fun Element By Use While there is a need, their can still be a fun element ‘Clocky’ in entertaining Perfect Gift Positioning Strategies

Key Components of Launch Plan Price Distribution Design Communication

Price Retail Price – $49.99 Keep price high while Clocky is still popular Early adapters are willing to pay more in introductory stage.

Distribution National Distributors Colleges Nation Wide College Student-Employees

Design Customization Price Differential Based on Personal Customization Interests

Communication/Advertising Online Advertising = Key – specific segment Clocky Website Youtube - “Clocky Family”

Pricing Retail PriceMarkup Selling Price Cost per a clockyProfit Websi te $ % $ $ Target $ % $ $ Brook stone $ % $ $ 12.77

BEQ = FC / (P - UVC) Fixed CostPrice Unit Variable Cost Break Even Quantity Website $ 600, $ $ , Target $ 600, $ $ , Brooksto ne $ 600, $ $ , Breaking Even

Breaking Even With Returns BEQr 15 = BEQ / (1 - % of Expected Returns) BEQ % of Expected ReturnsBEQr 15 Difference (New - Old) Website 18, % 22,059 3, Target 33, % 39,813 5, Brookstone 46, % 55,278 8,291.65