Consumer Marketing Essay Example

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 fundamental to Guaris success.

2. Nanda has several options for positioning Clocky. How would you segment the potential market for Clocky? Are there additional segments other than the “Need” and “Fun” target markets outlined in the case? On which target market segments should Nanda focus? Outline the value proposition appropriate for each target market segment. There are several ways in which the potential market can be segmented. Especially for new innovative products the VALS framework technique can be practical. VALS stand for values, attitudes and lifestyles, helps to categorise people into different sectors. There are eight different segments in the model but I feel only the segments of innovators and experiencers are needed in this study.

I also concur with Gauris division of her target market between the “Need” and “Fun” sectors. The “Need” segment although smaller than the “Fun” segment is in a relatively uncontested market. There alarm clock manufacturing process has not seen much change over the years and this new product aims to dramatically change people’s lives. Whilst the “Fun” sector gives a greater feasible catchment it does have draw backs as this market is over crowded with these types of products. I consider the “Need” market to be too high risk. If the product does not take of swiftly Gauri will have lost a lot of her investments and will not

be able too create the future designs she desires.

For example, laser pointer pens never sold substantially in Ireland until it moved into the “Fun” market and I see this product in a similar light. I am of the opinion that Gauri should concentrate on the “Fun” target market. These higher potential sales will allow her to salvage capital which will allow her to develop Clocky II. Moreover people who have problems getting out of bed will buy the product regardless. The innovators and experiancers are quite wealthy people and are less elastic when it comes to price. These are two categories which would allow Gauri to demand a high price at the launch of the product.

3.Which of the positioning options are most feasible given the product development of Clocky to date and Nanda’s goals, resources, and capabilities? Do you see the positioning of Clocky changing over time? Which of the positioning options are most valuable to Nanda given her aspirations as an entrepreneur? We are firstly positioning to the “Fun” market and the people who Gauri can receive the greatest return from. By positioning Clocky as a quality gift item sales will rise dramatically especially at the Christmas period. It can be positioned cuddly toy or friend who gets you out of bed in the morning in an amusing method. In conjunction with the product life cycle the positioning should change over time.

This change in positioning will allow Guari to use the money for the first Clocky to become the entrepreneur she aspires to be. Firstly the product will acquire a high price and then as the product sells more the prices can fall. It

is at this stage Guari can follow her ambitions in Clocky II and other innovative ideas. If Guari fails to carry out the second stage of this process I believe Clocky will only be a fad purchase and will lose a lot of potential customers. The second Clocky may target a different market and look at the “Need” segment. This would need a new professional look for Clocky but in addition new qualities such as built in radio or desk light.

4.Given your chosen positioning option, recommend the key components of a marketing launch plan for Clocky. Include recommendations on Clocky’s product design/features and manufacturing location, pricing, retail channels and distribution plan, and marketing communications. Be sure that your launch plan recognizes Nanda’s budgetary constraints. Gauri must try to create a cohesive marketing mix Clocky. We have chosen to target the “Fun” market and this must be reflected in our design and packaging. I believe the clock should base itself on a similar style to Furby. This may not be the design Guari prefers but she should she it as a stepping stone to her complete ideal Clocky.

This is similar to Sony’s hi-tech pet dog which gave them the funds to manufacture similar projects down the line. I believe Guari should take the fastest route to getting her product onto the shelves. The fastest large scale production is through out sourcing assembly abroad. Guari did state reservations about this choice concerning quality issues but as we are segmenting to the fun market and she needs to recoup her money fast I see this as the best alternative. Like most new technologies I deem price skimming to

be the proper pricing strategy for Clocky. This price also ties into the selling locations. When the price is high the product should be sold in high end retailers such as Target and Toys R’ Us. Subsequently when Gauri begins to make money the price of the product can begin to fall.

It is then that Clocky can go to cheaper stores such as Wal Mart BJs and Cost Co. Gauri can also make emailing or posting to contact the 9,000 or so who showed interest in the product on here website. I consider that to continue advertising the product whilst it is unavailable would only frustrate the customers and may down the line lose business. Gauri must aim at getting the product on shelves especially with the Christmas approaching. Just before product launch Clocky ought to be advertised. Advertising may even contain clips of the current media attention she is receiving as this would create a positive image towards the product as well as reminding people who seen the adverts previously.