The Blockheads

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• Product is obsolete fast• Users sell or give away to friends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