Post on 02-Jan-2016
The Blockheads
Powerblocks Business Model
Outsourced: mfg, fulfillment
DesignMarketingCust. Experience -Baby stops
crying
-Baby goesto sleep
Design IPBrand
-PR, blogs, WOM -New parents
(baby <1 yr)
-Influence: relatives, friends
-Online retail
Asset SaleValue-driven
2/15/11
Powerblocks Business Model
Outsourced: mfg, fulfillment
DesignMarketingCust. Experience
-Baby stops crying
-Baby goesto sleep
-Save $$$ for solution
Design IPBrand
-Blogs-WOM = referrals
-New parents (1st baby, baby <1 yr)
-Influence: friends, blogs
-Online retail
LeasingValue-driven
2/22/11
Revelation #1: sleep training
• Expert consensus: not good to have constant motion or noise while sleeping
• Best solution = let baby cry
• New mothers find it very hard to do this; experienced parents have success
Target customer is new parents(new = with first child, and new = child < 1 year old)
Revelation #2: Second Hand Market
• Product is obsolete fast• Users sell or give away to friends
PIVOT: Revenue Model
Purchase Model• One-time purchase• Use for 3 months
– Throw away– Keep for future children– Sell– Give away
Rental Model• Monthly revenue stream• Use for 3 months
– Return early if doesn’t work Return functioning product or purchase
– Product redistributed to new user
• Rent again in future (problem recurs?)
• Recommend service to friends
Customer Decision Process
Meet: The Simpsons
Homer and Marge
1st Baby: Bart
The Pain: Can’t Sleep
Customer Interaction / Influence Map
User: Baby
Economic Buyer: Parents
Saboteur : Traditionalist
Influencer: Friends
Recommender: Sisters / Friends
Saboteur: Grandpa/ma
Recommender: Salesperson
+ web reviews
Recommender: Doctor
Saboteur : other
Doctors
Now: Sleep Time
IMPLICATION: Demand Creation
• Blogs – spread word online
• Refer-a-friend program
• Free trial for 1 week(if economic)
Powerblocks Business Model
Outsourced: mfg, fulfillment
DesignMarketingCust. Experience
-Baby stops crying
-Baby goesto sleep
-Save $$$
Design IPBrand
-Blogs-WOM = referrals
-New parents (1st baby, baby <1 yr)
-Influence: friends, blogs
-Online retail
RentingValue-driven
2/22/11