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The Blockheads

The Blockheads. 2/15/11. Powerblocks Business Model. Design Marketing Cust . Experience. -PR, blogs, WOM. Outsourced: mfg , fulfillment. -New parents (baby <1 yr ) -Influence: relatives, friends. -Baby stops crying -Baby goes to sleep. Design IP Brand. -Online retail. Value-driven.

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The Blockheads

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  1. The Blockheads

  2. 2/15/11 Powerblocks Business Model DesignMarketingCust. Experience -PR, blogs, WOM Outsourced: mfg, fulfillment -New parents (baby <1 yr) -Influence: relatives, friends -Baby stops crying -Baby goesto sleep Design IPBrand -Online retail Value-driven Asset Sale

  3. 2/22/11 Powerblocks Business Model DesignMarketingCust. Experience -Blogs -WOM = referrals -Baby stops crying -Baby goesto sleep -Save $$$ for solution Outsourced: mfg, fulfillment -New parents (1st baby, baby <1 yr) -Influence: friends, blogs -Online retail Design IPBrand Value-driven Leasing

  4. Revelation #1: sleep training • Expert consensus: not good to have constant motion or noise while sleeping • Best solution = let baby cry • New mothers find it very hard to do this; experienced parents have success Target customer is new parents(new = with first child, and new = child < 1 year old)

  5. Revelation #2: Second Hand Market • Product is obsolete fast • Users sell or give away to friends

  6. PIVOT: Revenue Model  Purchase Model Rental Model Monthly revenue stream Use for 3 months Return early if doesn’t work Return functioning product or purchase Product redistributed to new user Rent again in future (problem recurs?) Recommend service to friends • One-time purchase • Use for 3 months • Throw away • Keep for future children • Sell • Give away

  7. Customer Decision Process

  8. Meet: The Simpsons

  9. Homer and Marge

  10. 1st Baby: Bart

  11. The Pain: Can’t Sleep

  12. Customer Interaction / Influence Map Saboteur: Grandpa/ma User: Baby Influencer: Friends Saboteur : other Doctors Recommender: Salesperson + web reviews Economic Buyer: Parents Recommender: Doctor Saboteur : Traditionalist Recommender: Sisters / Friends

  13. Now: Sleep Time

  14. IMPLICATION: Demand Creation • Blogs – spread word online • Refer-a-friend program • Free trial for 1 week(if economic)

  15. 2/22/11 Powerblocks Business Model DesignMarketingCust. Experience -Blogs -WOM = referrals -Baby stops crying -Baby goesto sleep -Save $$$ Outsourced: mfg, fulfillment -New parents (1st baby, baby <1 yr) -Influence: friends, blogs Design IPBrand -Online retail Value-driven Renting

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