Case Analysis Of Clocky

Situation
Nanda has designed an innovative alarm clock named Clocky. Clocky has a unique function that it can jump off a nightstand and roll around the room to wake people up, arousing attention and interests of the public. However, Clocky is still a prototype and it was not yet commercially available. Precise marketing positioning, promotion means, distribution channels and pricing are crucial in order to make profit from the sale of Clocky. This report includes the evaluation of the current marketing strategy adopted for Clocky as well as suggestions of marketing segmentation in Hong Kong.
Assessment of STP Options
Both behavioral segmentation and age segmentation are strategies that can effectively divide consumers into two major markets

However, some attributes may not be measurable as people are subjective and they may perceive differently towards the same benefit. For age segmentation, it is objective and measurable as customers can be easily recognized and segmented simply by age. But people in same age group may not be homogeneous, that they may have different life experience, causing different pace of maturity development and different perception of the product. Also, the optimal width of age group is negotiable in making precise comparison. For concentrated marketing, Nanda can focus all resources on promoting and distributing in the specific market segment which can increase effective use of resources, bringing the most efficient outcome. It also reduces direct competition with competitors as she focuses on a smaller market. However, risk diversification is not likely in concentrated marketing, as in a smaller and targeted market. If the demand declines in that market, it has a direct effect on revenue and the profitability. For product differentiation, Clocky is a new and advanced product that it is hard to have similar products to compete. So customers will be more loyal to Clocky as it is less likely for them to have substitutes. But product differentiation requires a lot more efforts in research and development as

The Need market is constantly growing. Also, with the ability to jump off the nightstand and move around the room, Clocky can successfully wake people up by forcing them to run after it. With this superior function, it has rooms of asking for a higher selling price. Clocky can then make a significant profit. However, the need market is quite limited when comparing to the fun market, which includes people of various interests. The need market is a niche segment and so the the corresponding customer base is relatively small. But targeting the need market can avoid excessive advertising fees as needed in the fun market and the effectiveness of advertising is higher when the focus of need market is shaper. Also, the fun market is highly saturated while need market is not, having rooms of expansion. Therefore, it is recommended that Nanda should focus on the need market since it would be more feasible in terms of limited funds. Some may say that the fun market could boost the sales of Clocky as new and unique items are welcomed by the public. However, Clocky may soon turn into a fad product when newer products are introduced, in which people will not buy Clocky anymore. It has only short-term boot of sales in fun market while it has more long-term development in the need