1.0 Introduction I am the Marketing President of Xtreme Creative Sdn. Bhd. which is an international marketing firm in Kuala Lumpur.

We have assigned to prepare a marketing report about Hiding Alarm Clock, also called ‘Clocky’. It is a revolutionary alarm clock. It has many special features compare to other alarm clock. The creator, Nanda, is planning to market this product in Malaysia. However, she unsure of how to position a product and she was faced with a number of difficult decisions as she attempted to devise a marketing plan to bring her Clocky project to fruition. The following is our analysis of her situation and suggestions on how she should proceed.

2.0 Overall Marketing Plan and Objectives 2.1 Background Clocky is a special alarm clock that outfitted with wheels which allowing it to hide itself. Then the owner has been forced to awake to find it. It was invented by Gauri Nanda, a graduate student at MIT Media Lab. Clocky won the 2005 Ig Nobel Prize in Economics. After earning her Master Degree from MIT, she founded a company, Nanda Home Inc, to commercialize Clocky and other home products. 2.2 The Clocky and Target to Achieve Clocky is not an ordinary alarm clock - it has wheels. It can run away with beeping sound and the users have to get out of bed to silence Clocky's alarm. Clocky beeps in an R2D2-like robotic pattern, this kind of annoying sound sure can awake users from sleeping. Users can set Clocky to run away right when the alarm sounds, or set to snooze one time before it runs away. Besides, users can customize snooze time up to 9 minutes long. Users can also turn off Clocky’s wheels if users don't want Clocky to run away. A backlight helps users see Clocky at night. Clocky is the best choice for those who have trouble waking up in the morning. It is compact, attractive design, clever, and playful. It will amuse users as they wake up in the morning.

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They quickly become enthusiastic about new possibilities but are equally quick to cool. They might see Clocky as a useful technology and pioneering wake-up function.We target to achieve our goal. They favour stylish products that emulate the purchases of people. RM1 million sales in first year and RM500. . and their purchases reflect cultivated tastes for upscale. enthusiastic.Fun Market: This market composed of people who might see Clocky as an amusing appliance and a nice robotic household pet. niche products and services. we have to keep on innovate new features on Clocky in order to keep this group of customer. They are very active consumers. The socializing effect influence them to buy the product.Need Market: This market composed of people who have serious difficulties waking up in the morning with a standard common alarm clock.Strivers: This market composed of people who are trendy and fun loving. The sales will drop in second year because we are going to use skimming pricing strategy and technological product has short life cycle. The following explain the value propositions and reasons for each target market: . Innovation and playful nature of Clocky can meet the needs of this group of customers.Experiencers: This market composed of people who are young. . 2.Innovators: This market composed of people who are like new ideas and technologies.3 Target Market The potential customers are divided into 5 groups. 2 . . They like to receive innovative idea and technologies. Their purchases reflect the emphasis they place on looking good and having "cool" stuff. . Therefore.000 sales in the second years. and impulsive consumers.

c.1 Market Study There are many type alarm clocks in the market. playful and innovative design.00 to RM30. customizable snooze time. hypermarket.00.We’ll have a customer list which contain the customers’ personal information because we’ll requested them to fill in a form to register a 1-year warranty of Clocky. Special features and Innovative.1 Strengths a. we’ll request for their feedback and provide them the latest product and information about our company. We will have competition advantage because the information allows us to do more accurate and detail market analysis in future. clever. 3. we composed a slogan to promote our product.2. it is “Say Goodbye to Late”.fun users. Firstly. Customer list.There are many features in Clocky. Consumer can get a normal alarm clock easily because these alarm clocks are buyable at many places. This is an innovative product in the market. battery alarm clock. Another purpose of this slogan is to attract our main potential target market. 3. The price range is from RM2. b. we will choose colours and type of package that make your product look more valuable. such as. stationery shops. digital alarm clock and radio alarm clock.2 SWOT Analysis Using a SWOT analysis we are able to define the success factors that will influence Clocky in future launch on the market. Therefore we will identify internal organizational strengths and weaknesses with external opportunities and threats. through sending e-mail to them. for example. watch shops and ‘pasar malam’. run away with beeping sound. and strivers. Add value. Secondly. experiences. supermarket. Therefore. phone alarm clock. 3 .We use some strategies to add value to our product. Need Market. spring-driven alarm clock. In addition. such as. This method is very cost effective and customers can control the volume of information that they want to receive. we can attract attention from the others potential customers.0 Competitive Analysis 3.3.

The market of Clocky can be expanded to other countries.Since we are the first mover in the market to market Clocky. c. 10% import tax. the customer will look elsewhere for something similar when it is time for their next purchase. Customer may not dare to try to buy Clocky. The sales of Clocky may be affected by this factor.In order to create brand loyalty. b.2.This policy has increased our cost.Nanda Home Inc. many competitors will enter the market if Clocky has a good respond from consumer.3. Therefore the cost of producing Clocky is high.The quality of Clocky is excellent so the components used are expensive. is a new company or brand. the weak image of company factor will be diminished significantly. Indonesia. b. Creating brand loyalty.2. people have less or no knowledge about the company. we lost a lot potential customers in consequences. Competitors. Growth strategy. Weak market image. If we address this communication properly.The nature of technological product dictates that Nanda must already be considering the positioning and timing of the next generation of Clockys. They will observe closely the innovations of first movers and then improving from to gain advantage. 3. and China. b. such as Thailand. High cost. as the channels we choose will impact the way in which the Clocky brand is perceived immensely.3 Opportunities a. Short product life cycle. therefore we have to charged higher price to maximize our profit. 3. This challenge relates directly to our choice of distribution channels.2. the quality of Clocky must be controlled.4 Threats a.an alarm clock outfitted with wheels.2 Weaknesses a. If the product is of a poor quality. 4 .

Sales Tax and Import Duty Sales tax which is currently enforced is a single stage tax levied on certain imported and locally manufactured goods. Chinese and Indian community.3. Since then.3 PEST Analysis A PEST analysis is an analysis of the external macro-environment that affects all firms.E. General rate on all goods is 10%.S.3. Political Stability Malaysia had its fair share of internal problems due to the differences and existence of various races. b. It is not imposed on personal or professional services. Economic. The biggest incident was way back in May 1969 when racial tension between the Malay and Chinese caused riots and fights which resulted in hundreds of deaths. Social. that is the Malay. is an acronym for the Political.T. It is normal now to see the various races working together in the same office. or sales of intangible property." Normally the rate on watch and clock is 10%. The rate of import duty varies according to the type of goods imported. Malaysian GDP to grow 8% in 2010 . and Technological factors of the external macro-environment. although they do not necessary live in the same area.3. P. Notably between the three major races. either at the time of importation or at the time the goods are sold.1 The Political-Legal Environment a. 3. joking and helping each other out or eating together.strongest since 1996 5 . sales of real property. 3. the races have learned to live rather amicably with each other and want to avoid such a serious conflict from happening again.2 The Economic Environment a. The rate applicable to each category of goods is indicated in Columns (4) and (5) of the "First Schedule to the Customs Duties Order of 1996.

Strengthening domestic and external conditions led them to upgrade Malaysia’s economic growth to 8% in 2010. has increased from 47.8% per annum. The propensity to consume is likely to be further enhanced by firm commodities prices. b.200 and MYR3. 6 .472 in 1999 to MYR3.7%. with private sector spending by households as well as exports leading the way. The proportion of middle-income households.499 per month. its highest in a decade. defined as those earning between MYR1.7% in 1999 to 47.5% and World Bank’s 5.Malaysia’s gross domestic product (GDP) is expected to grow to 8% in 2010. higher export profits. Private consumption increased at a faster pace of 5. and considered as one of the most developed of the developing countries.5%-5.011 in 2002. Income/ Buying Power Malaysia is classified as an upper-middle income country. versus Bank Negara’s forecast of 4.8% year-on-year. underpinned by strengthening domestic and external conditions.9% in 2002. low interest rates. The Malaysian economy may have probably expanded at a more rapid pace in first quarter of 2010 at 9.1% year-on-year in 2003. a stable job market and the positive wealth effect of the buoyant stock market. according to AmResearch. denoting average growth of 6. underpinned by improved consumer confidence. Mean monthly gross income per household increased from MYR2.

500 per month. some local retailers have been offering interest-free installment plans for expensive purchases. Malaysians who live in urban areas have become accustomed to shopping for groceries at hypermarkets and supermarkets. b.3.3 The Social-Cultural Environment a. with 57. 3. Domestic growth to buoy retail sector In view of the young customer base in Malaysia – forty-two percent of the total population is aged between 10 and 34. High profile international retailers have played important role in shaping consumer-buying behavior. so the demand for lifestyle products is very high. The high-income group has household income of more than MYR3. followed by supermarkets and traditional grocery stores. Unilever and Nestlé on the retail scene. The internet users in Malaysia Among ASEAN Countries. Therefore. It is easy to find products marketed by Procter & Gamble. High and middle-income households spend most of their money at hypermarkets.4 The Technological Environment a.3. Malaysia is one of the most prominent countries as it ranks as number 2 in terms of internet penetration.80 of every 100 Malaysians being internet 7 . Lifestyles / Shopping habits Malaysia’s consumer lifestyle has been changing due to education levels. This will encourage consumer spending thus boosting retail sales. Malaysians also have an open demand for foreign brands.3. Over the last two years.

movie tickets. Malaysia e-commerce statistics Half of Malaysia’s Internet users are buying or transacting online. 8 . It is positioned just behind Singapore. Most of the numbers are contributed by airline tickets. The most preferred online payment method in this part of the world is credit cards followed by Internet banking. b. There 64% out of the whole internet users in Malaysia are in the age of 15-34 years old.users. Other popular goods sold online include books. technology gadgets and so on. general consumer goods. which equal to more than 8 millions in 2009.

less customer knowing for it and sale is low but slowly growing therefore. growth. resale value and etc. sales.0 Product Strategy Our main product hiding alarm clock (clocky) is a consumer product (B2C) in the market. and product will decrease in market. as company provides goods or services for consumers. style. marketer will put more effort in promotion and investment for the product. price. promotion will be stop and lower investment on this product because the decline of product life cycle which makes the product price will be reduced in market. before making a decision to buy it. We need to keep on perform Investment. maturity. important of convenient location and considerable of comparison in price and quality. 9 . When our product enter into the market is a starting life cycle at introduction stage which our product price. sale of the product is slow but our profit still having high cash flow and product become common in market. less purchase frequency. low investment and promotion in differentiate. and promotion at the higher level to attracting customer. the characteristics in marketing mix factors is the price of the product is relatively high than other product. therefore price of the product should be maintained or reduced. There are many type of consumer product such as specialty product. quality. In additional. We classify our product as shopping product because normally consumer will spend considerable time and effort gathering relevant information about price. color. convenience product. profit. and decline stage. The characteristics of shopping product in consumer factors is considerable time for planning to purchases. Next stage is growth. The product life cycle is the progression of a product through introduction. sales will grow rapidly in market our profit gain faster and product knowing from customer. shopping product and unsought product. promotion and investment should be perform as high level because is a new product. Last stage is decline. After that product will enter to the maturity stage which is the climax growing of our product. Business–to-consumer (B2C) defined as a transaction that occurs between company business and a consumer. they will look for it in the market. seller image is very important. have a short distribution channel and the promotion of selling and advertising created by producer and retailer.4.

and increase frequency of use. During the maturity stage. We can extend the product life cycle through increase the number of users. Successful packagings have the power to influence buyer decisions which help increasing the sales of the product. finding the new uses of the product which we can add new function into our product such as alarm tone can change to customer favorite music song and according to the seasonal produce the new edition of the product. Hiding alarm clock recognized as the individual brand in the market. 10 . Thailand. assistance in marketing and cost-effective packaging. we can change the product package or quality during the seasonal events because the product with the new design packaging outlook will attracted difference type of customer to purchase it. Lastly. we can increase the number of users by extend our product to other geographical area such Indonesia. labels. We decide to build strong brand equity for this product with slogan “say good bye for late”. Based on the problem. Besides that. finding new uses. Packaging plays an important role to form part of the product such as protection to the product. and other Asia countries.As a technological product we estimate our product life cycle is shorter den other product because the nature of technologic which is a fast growing and development product in the market. technologic products get obsolete very fast from season to season. We decide to package our product with the attractive outlook that can capture the customer attention and can enhance convenience for customer. Besides that. changing package size. This is the way that we can extend the product life cycle in the market. as a marketer will suggest company either extends the product life cycle which at maturity stage or stop invested the product at the decline stage. The advantage for using brand equity can easily get likelihood from customer to recognize the firm and product which can increase the sale volume and higher profit margin against competing brand. or product quality.

Based on the fact. By using the direct channel as distribution. A distribution channel can be as short as being direct from the manufacturer to the customer or may include several intermediaries such as agents. distributor and retailer. There are two type of channel we can use in help for distribution the product. manufactures to retailer to customer. 11 . it is better that manufactures can earn higher profit margin by go through less intermediary. By using this type of distribution channel. Example.0 Distribution Strategy Distribution defined as the management plan for moving product to intermediaries and final customers. lastly second intermediary sell product to the customer with price RM 10 each. The reason that we choose this type of distribution channel is the manufacturers can earn higher profit margin which the product can go through less intermediaries to the customer. Example: manufactures sell product to first intermediary (wholesaler) with price RM 5 each. In addition. after that first intermediary sell product to second intermediary (retailer) with price RM 8 each. first is the channel from manufacturers to retailer to customer and another is the direct channel which the manufacturers direct sell to the customer. There are different types of distribution channel such as manufactures to customer also known as direct channel. we will use internet as our intermediary to communication with customer which use the direct mail (e-mail) provide more information to them. there are 2 manufacturers direct sell product to 100 retailers. the price of the product will increase when pass through to each intermediary until to the customer.5. For our product we decide the distribution channel as manufactures to retailer to customer. Therefore. manufactures to wholesaler to retailer to customer and manufactures to agents to wholesaler to retailer to customer. we also faced disadvantages as inefficiency on distribution which less intermediaries the channel of distribution will become more complex between manufacturers and retailer. we also can use dual distributions which mean moving the product through more than one channel to reach the firm target market. wholesalers. there are 100 contact lines and one line from each manufacturers to each retailers which the arrangement for the distribution will be complex and inefficiency.

we also want to do a marketing test for the product and estimate the problem. Besides that. Besides that. we choose selective distribution for the manufacturers distributes product in each particular market. Lastly. the logistics and supply chain management that we are perform for the product is downstream management.After that. 12 . price and display. we also decide to have a manufacturer base at Malaysia for future expansion to other Asia countries and we can perform upstream and downstream management in the distribution plan. Reason that we use downstream management is our product and manufacturers are from outsider countries which import by air freight to Malaysia. Selective distribution involves a manufacturer using a limited number of channels in a geographical area to sell product. The reason that we use selective distribution is can reduce the total marketing cost and give more control over product in advertising.

they will feel interested on our Clocky product. and low-cost technique to attract consumer’s attention. total online spending near $30 billion in 2009.com. According to comscore. They are Guerrilla Marketing. persuade. Based on the research statistic. we get know that the expectation of Malaysian going to shopping center will be increase. not for profit organization. product. U. airports. we want to inform market about the Clocky through TV advertising. This is equals to more than 5% of total advertising spending. Here. the Malaysian internet age group from 15 to 34 year old has possessed 64% out of the whole internet user. Electronic Direct Marketing.6. or remind members of a particular audience. We will advertise Clocky in the web and we will also send email notices to our targeted market. By using this electronic direct marketing channel also cost less than traditional advertising marketing. this will indirectly help to generate the sales. or idea by a sponsor identified in a message that is intend to inform. innovative. Here is our idea to implement the guerrilla marketing. According to past record. Beside focus on guerrilla marketing. we will produce many units model of Clocky that are in larger size then put it in the place that is easy to exposure to consumer like shopping center. LRT stations. we will focus on 3 types of promotion marketing. and Advertising.0 Promotion strategy Since Clocky product hasn’t market in Malaysia yet. it shows that the forecast of Malaysia Gross Domestic Product (GDP) is expected to grow to 8% in 2010. We need to inform the targeted market that our product is available to buy now. Advertising is non personal communication through various media about a business firm. we can see that how huge for the internet user market. hence our main objective of promotion is to provide information to the market about the availability of Clocky product. When people saw our Clocky model. To achieve our promotion objective. According to market research by Nielsen show that advertising on media had surged 18% across Asia Pacific in the first quarter of 2010 with the average spending on ad advertising 13 . From here.S spending on online advertising has totals about $16 billion per year. we will also use Electronic Direct Marketing Channels to promote the Clocky. This means that our targeted market is inside this 64% of user group. etc. We will also use advertising to promote the Clocky. Guerrilla Marketing uses unconventional. Based on the AmResearch statistic. With this statistic.

this will make sure our potential customers are aware with our Clocky product and this will also help to generate repeat and higher value purchases. By placing the ad in TV advertisement.in media across the region has lifted to US$31.16 billion. 14 .

This type of pricing strategy is the strategy that involves charging a relatively high price for a short time where a new.9% in 2002.533.472 in 1999 to MYR3.00.270 per month in the rural areas. we can understand that our targeted markets are able and affordable to spent RM49. The price of clocky is expected to fall when new competitors come into the market.37 and 26-35 are $43.011 in 2002. the produce and sell it in the lower cost. After we launched this new product.On average. With the statistics above. or much-improved product is launched onto a market. we will suffer a threat from getting new competitors for clocky product in the market. The price we set for Clocky is RM49. Mean monthly gross income per household increased from MYR2.943 per month in the urban areas and MYR1. and considered as one of the most developed of the developing countries. advertising and etc. denoting average growth of 6.200 and MYR3. 15 .The main objective we use Skimming Pricing Strategy is to get benefit from high short-term profits. We have to monitor our competitors carefully because competitors may copy and modify our clocky product.90 for our clocky product. hence we can set the price at a relatively high. innovative. salary by age group between 18-25 earn the salary average at $31. The reasons why we are using Skimming Pricing Strategy is because from the practice of this pricing strategy it allows for some return on the set up costs.241. such as the costs of introducing the product to the market via promotion.499 per month. Based on the research on household income and buying power we have done. defined as those earning between MYR1. has increased from 47. Whereby the pricing strategy we use for Clocky is Skimming Pricing Strategy.90. Malaysia is classified as an upper-middle income country. households living in urban areas spent 1. When competitors have coming into the market.7. the research and development costs are likely to be high.5 times more than households living in rural areas.8% per annum. Average consumer spending stands at MYR1.7% in 1999 to 47. we are able to lower down our price to compete with competitors. The proportion of middle-income households.0 Pricing strategy Since the Clocky product is a shopping product. where when our innovativeclocky product is launched. According to Certification Salary Survey Results.

For planning the 4P strategy. SWOT mean as Strength. 16 . place (distribution). and shopping product. we will go through to the marketing analyses which are PEST. guerrilla marketing promotion. After that.0 Conclusion Marketing is acknowledged to be the most challenging activity for any company. Opportunities. As a conclusion. we can estimate how the changing of environment influences the product and determine the SWOT of the product in the market. as a marketer we need do more research and collecting as much as relative information from the market before we start our marketing plan which can assist us to setup our marketing plan goal or objective. an effective marketing report will brings together all of the elements of the marketing mix (4P) to achieve the company marketing objectives by delivering to customers what they want and satisfy their need in the market. First of all. For examples the 4P strategy that we use in this marketing report are skimming pricing strategy. Weakness. Economic environment. 4P mean as price. Next. Social-culture environment and technological environment. we based on the PEST and SWOT marketing analysis for assisting us.8. promotion. Therefore.legal environment. Based on the information. PEST and SWOT are playing the important role in whole marketing report which assisting us to understanding the market needs. and product strategy. we can clearly classify that what type of product we are selling and which type of customer will be our target market. PEST means the Political. SWOT and 4P. the most successful marketing planning will be those that can meet these need most effectively. dual distribution. Besides that. and Threats.

com/mta/political_stability. 2010) (http://www.wetpaint.htm.odci.com/news/loa/loa106.pwc.com/page/Malaysia+Internet+Penetration.marketingteacher. 2000) (http://comm215.malaysia-trulyasia. 2004) (http://certification.com/en_GX/gx/retail-consumer/pdf/malaysia.html.gov/cia/publications/factbook/geos/my. 2008) (http://www. 10/15/03) (http://biz.com/lesson-store/lesson-pest.html.com/docs/35312835/NEW-CLOCKY!-The-Run-Away-Alarm-Clock-Hideand-Seek.com/news/20100712.References (http://www.shtml.pdf. 2010) 17 .asp? file=/2010/4/23/business/20100423113511&sec=business.my/news/story.docstoc. 2010) (http://www. 2008) (http://www. 2002) (http://www.marketingservicestalk.htm.com.about.html) (http://my.com/od/selfstudy/l/bl_02results_c.nielsen.thestar.

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