Nanda Clocky Case
1. Introduction:
In 2006 Nanda Home created the hugely popular “Clocky”, a fun and cute alarm clock that wakes up its customers by rolling around the room and requiring the customer to chase it. Over four years later, sales and profit margins have begun to shrink as Clocky’s product cycle nears its end, and Nanda Home is faced with the difficulties of replicating success. Nanda Home’s key issues revolve around how to market and brand a succeeding product to Clocky.
2. Executive Summary:
This paper has identified a number of ways to resolve Nanda Home’s issues. In particular, the following points have been proposed:
Focus on product line extensions as opposed to new categories.
Create a megabrand.
Hire a sales and marketing team to assist Nanda in operating the business.
Seek new distribution channels and utilize online marketing tools to expand the brand’s revenues.
Look into collaborations.
The key impediment to achieving these goals will be in the execution of the ideas. The core solution to overcoming this issue will be ensuring that Nanda has a successful team behind her to help her reaching her goals.
3. Situation Analysis, Evaluation of Options and Recommendation(s)
A) THE MARKET SITUATION
Customer
Nanda Home has taken a product decision to target the alarm clock sector by introducing Clocky. Therefore, its customers will be alarm clock buyers. There are two types of alarm clock buyers:
“Need” based buyers require alarm clocks since waking up is a disturbance for them and generally they fall a sleep after snoozing the alarm clock. Most of the sleep researches in the US showed that disturbed sleep cycles and wake-up difficulties plagued a significant portion of the country’s workers.
“Fun” based buyers would like to have an alarm clock or give an alarm clock as a present, since the humanized and innovative Clocky alarm clock models are viewed as amusing appliances.
According to the results of the survey, collected from online Clocky buyers between June 6th and August 28th, 2010, a considerable amount of customers are between 19 and 24 years of age. However, gender is not a criteria since gender is almost equal in number.
Company
The Nanda Home company is the creator of run-of-the-mill alarm clock. The company launched new products to the market to meet the needs of the customers in terms of “need” and “fun” segments.