Quirkbot - Narratives as a Tool to Brand and Market Educational Coding

Quirkbot - Narratives as a Tool to Brand and Market Educational Coding

Written by: Tehilah Auramo Kevan D’Agostino Boyke Dalmeijer University Of Gothenburg Master’s of Business and Design KMD666 V16 Design, Branding and Marketing Gothenburg, Sweden March 21st, 2016

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ABSTRACT

1 INTRODUCTION

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CONTEXT AND PROBLEMATIZATION

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3

THEORETICAL FRAMEWORK

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4

METHODOLOGY AND RESULTS

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4.3

SECONDARY RESEARCH

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2.1 COMPANY BACKGROUND 2.2 PROBLEMATIZATION 2.3 LIMITATIONS

3.1 3.2 3.3 3.4 3.5 3.6

4.1 4.2

MARKETING OVERVIEW MARKETING IN SMALL COMPANIES BRANDING OVERVIEW LOVEMARK - THEORY OF EMOTIONAL BRANDING VALUE CREATION FRAMEWORK CUSTOMER VALUE

VALIDITY AND RELIABILITY PRIMARY RESEARCH

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4 5 5 6 6 6

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5 ANALYSIS

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6.1 6.2 6.3 6.4 6.5

PROPOSED SOLUTION

SUSCRIPTION-BASED BUSINESS MODEL COMPANY PHILOSOPHY CUSTOMER AND USER SEGMENTS BRAND ORGANIZATION TWELVE MONTH IMPLEMENTATION PLAN

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7 DISCUSSION

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8 CONCLUSION

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REFERENCES

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APPENDICES

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ABSTRACT

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his paper aims to describe a new branding and marketing strategy for the start-up company Quirkbot and how that came to be. Quirkbot produces microcontrollers that are programmable through their own developed software and works closely with Strawbees. The company gained initial success through Kickstarter, but as that success is slowly coming to an end, Quirkbot is now looking for ways to make their product more aligned with a specific marketing and branding strategy to approach the market with a sense of confidence and clarity.

Through the use of various primary research methods like applying practical marketing and branding models, observations, generative methods and secondary research, we suggest a subscription-based educational marketing model that targets children between ages 8 and 13. Through various themes in combination with engaging designs, a steady learning curve and the Build, Code, Play philosophy, Quirkbot will be able to create playful learning experiences that push the imagination, are easy to build and fun to modify. Consequently, we argue that the suggested brand position will help Quirkbot to create more value, win more trust and generate higher revenues.

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1. INTRODUCTION

of Gothenburg Sweden and will present a solution regarding programming in society for and in col-

Technology today is everywhere. From your high-

laboration with the company Quirkbot.

tech smartphone to the low-tech coffee machine, it’s omnipresent. Each of these devices requires a form of programming and a developer that writes

2. CONTEXT AND PROBLEMATIZATION

that code. In today’s society, there’s a shortage of programmers and the new generation takes technology for granted, but is not aware how it came to be.

2.1 COMPANY BACKGROUND In 2013 in Gothenburg Sweden, Dan Henriks-

Therefore, the question arises if programming

son, Kristofer Hagbard, Carl Bärstad and Paulo

should become an integral part of primary edu-

Barcelos combined their design, engineering

cation systems. In countries like India, program-

and development backgrounds to co-found the

ming has been an integral part of the curriculum

company and the product: Quirkbot. The product

for years, other countries are implementing it

promotes imaginative thinking through construct-

this year like Finland, but in other countries like

ing with Strawbees, which can be paired with

Sweden this is not yet the case. The programming

a microcontroller to trigger motion, lights and

languages like C++, Ruby, HTML(5), CSS, Javas-

sounds. Although not entirely clear, today they

cript and Python change every year and are not

have around seven employees both from Quirkbot

fully established. Hence, centralized education

and Strawbees working both full time and part

systems may have a hard time implementing

time. In early 2015, the popular crowdfunding site

programming to the curriculum. Companies,

Kickstarter, which helped to create buzz around

especially start-ups, see this lack of perseverance

the product and a financial backing of over $75,000

as a business opportunity to present their own

USD, funded Quirkbot.

solution to this societal challenge. An all-inclusive solution has not yet presented itself and it is

Although the company had a recent surge of

questionable if this will be possible due to how we

interest and backing from multiple communities

perceive programming today. Yet, there are possi-

within the maker culture, it has not yet turned a

bilities to integrate and popularise programming.

profit (personal communication, Dan Henriksson,

The fields of marketing and branding might be able

26, Feb 2016). The product’s main goals are to

to change the perception on programming and

promote play, learning, sharing, cooperation and

provide a clear strategy that fits within the possi-

equality for kids by enabling them to build, make

bilities of educational systems, businesses, people

and program their own structures (see figure 1).

and society as a whole.

Quirkbot hopes that working with their product will encourage children to explore coding. The

This paper, commissioned by Peter Zackariasson,

company also created and developed its own visual

is a four week case study of three students of the

programming interface that runs on a website.

Design, Branding and Marketing course, part of

This interface allows its users to switch back and

the Master Business and Design of the University

forth from a user friendly, drag and drop interface,

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Figure 1: The Five Values of Quirkbot

to your typical programming interface. This

provides users a more systematic way of learning

combinational learning is partly how they see the

physical programming? As Quirkbot has not been

success of Quirkbot within the self-teaching of the

selling their products outside of their crowdfund-

coding language (ibid). Today, their product is not

ing campaign, there is no telling how successful

available. However, Quirkbot is collecting a list of

they have been in any particular market. Hence

pre-orders and they are establishing their way into

Quirkbot is now looking for ways to make their

the market this year.

product more aligned with a specific marketing and branding strategy to approach the market with a sense of confidence and clarity. Part of our task

2.2 PROBLEMATIZATION

is to help Quirkbot approach the larger market

Quirkbot’s initial success was built within the

so they are in a position where they can generate

maker subculture, which encourages elements

sales; to be in a position where they can generate

of creative skills to make or design something on

profits not only towards Strawbees, but also for

your own; part of the Do it Yourself (DIY) mantra

Quirkbot as a separate entity.

recently growing in popularity (Klein, 2016).

Quirkbot has been part of this success, proven by their recent funding through Kickstarter last year.

2.2 LIMITATIONS

However, as their recent success with Kickstarter

Although our research has reached its aims, there

subsides, they are forced to decide where they

were some unavoidable limitations. Firstly, due

belong in regards to where their brand is posi-

to lack of information regarding cost and struc-

tioned within the market. Despite being known

ture, we don’t produce calculations towards the

within Sweden, Quirkbot seems to be at a cross-

financial planning of Quirkbot. Secondly, within

roads when it comes to their decision to what their

the time constraint of three weeks, we did not find

products represent: Do they want to be known as

time to conduct interviews or focus groups, which

the fun toy that everyone wants to build and play

could have been an important and substantial

with? Or are they more interested in creating a

element of our research. Thirdly, it is important

product that is more focused on education and

to note that we used the majority of the methods

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for the first time within marketing and branding.

A pivotal concept in this regard comes from the

Finally, our limited knowledge around branding

development of marketing thinking known as the

and marketing may have constrained our ability to

‘managerial approach’ from E Jerome McCarthy

create a reliable and substantial proposition.

(as cited in Doyle, 2011). In 1960, in his co-authored book, Influential Basic Marketing: a managerial approach, McCarthy developed one of the most prominent and widely used concepts within

3. THEORETICAL FRAMEWORK

the marketing mixes. Known as the Four P’s model, it describes the key ingredients of product, price, promotion and place (or distribution) (see figure

Before diving into the Quirkbot case, we need to

2). Although the Four P’s model is now regarded

establish some grounds on what marketing and

as too simplistic for current marketing conditions

branding really means, because these terms are

(ibid), it has been an important groundwork for

quite ambiguous. By using several theoretical

basic marketing planning and programming.

frameworks from professionals within the field of marketing and branding, we will shed some light on what marketing and what branding means.

Additionally we will explain the meaning of value and how to create it, because creating value within this context is important. Both products and marketing strategies unavoidably communicate values and thus impact the perception of a brand.

3.1 MARKETING OVERVIEW Marketing can be described as to “what an organization must do to create and exchange value with customers” (Silk, 2006, p. 7). In this sense, marketing plays a major role within a firm’s strategic direction and to claim success it requires a deep understanding of its customers, competitors, collaborators and capabilities to serve their custom-

Figure 2: The Four P’s of Marketing by E Jerome McCarthy

ers profitably, which is an important aspect of any business (Silk, 2006).

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“Enjoyment of interaction can transform the most insignificant product into a musthave item” - Cho, 2011

However, with newer formed organizations and entrepreneurial businesses, this aspect of marketing can often be overlooked due to their ‘Liability of Smallness’ (as cited in Kraus et al., 2010). The term refers to the organization’s limited finances and human resources, which reflect on their marketing decisions and accuracy due to often single ownership or ideas (ibid). The importance of marketing plays a major role for many of these new firms, however Kraus et al. (2008) argue that many of them actually approach marketing in a very informal way: “more simplistic and ad hoc, based on intuition, with little or no formal structures” (Kraus et al., 2010, p. 7), and spend more of their energy

Figure 3. SME Entrepreneurial Marketing Orientation

towards financial decisions.

(Jones & Rowley, 2011)

3.2 MARKETING IN SMALL COMPANIES

3.3 BRANDING OVERVIEW

A study by Jones and Rowley (2011) summarizes

Branding is perhaps one of the most abstract sub-

some key characteristics for small and medium

jects within business. What we find helpful though

sized enterprises (SME) across different market-

is the fact that these theories cover a lot of similar

ing literature. It is suggested that the shorter pro-

thoughts in what we have thus far learned from

cesses for decision-making and communication

design literature, that also highlight the impor-

can partly explain why SME’s behave in a more

tance of sense-making through sensory aspects,

responsive and risk-taking way towards customers

emotions and values.

and competitors. The authors have created their own model, the SME entrepreneurial marketing

Two powerful descriptions by Cho (2011) of what

orientation, (see figure 3). Despite being gener-

a brand might mean are summarized as a useful

alizations some of the points in this model, e.g.

introduction to a more recent, Lovemark, theory.

speed to market, might lead to increased competitiveness if properly explored and adapted by small

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companies.

Departing from just a physical product, branding is found to be symbolic and deliver social meanings (Frazer, 1983; Pohlman & Mudd, 1973).

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A brand image equals the complete set of

3.5 VALUE CREATION FRAMEWORK

impressions that consumers get when inter-

To better understand value, we looked into Smith

acting with a brand (Dichter, 1985; Newman

and Colgate’s (2007) proposed framework for

1957) including perceptions, feelings, attitudes

defining different types of value. They identify four

and beliefs (Bullmore, 1984; Gardner & Levy,

main types of values, and are proposed as a tool for

1955).

marketing strategists to develop creative product concepts and recognize new product opportunities for organizations:

3.4 LOVEMARK - THEORY OF EMOTIONAL BRANDING

a) Functional/instrumental value - The descrip-

A lovemark is a brand that enjoys higher cus-

tion of the product itself and the extent to which a

tomer loyalty by enforcing feelings of love and

product is useful and fulfills a customer’s desired

respect among consumers (as cited in Cho, 2011).

goals either directly (functional/intrinsic value) or

While products only capture low levels of love

indirectly (instrumental/extrinsic value).

and respect, and brands low levels of love but high respect, lovemarks perform high in both aspects,

b) Experiential/hedonic value - The extent to

(see figure 4).

which a product creates appropriate experiences, feelings, and emotions for the customer.

A deep emotional connection with customers is what distinguishes a lovemark from a brand (ibid).

c) Symbolic/expressive value - The extent to

In order to create it, a brand must incorporate

which customers attach or associate psychological

three elements of experience in their offering, that

meaning to a product.

is, mystery, sensuality and intimacy. The original ideas by the author Kevin Roberts (2004, 2006)

d) Cost/sacrifice value - The cost or sacrifice that

are presented below as summarized by Eunjoo

would be associated with the use of the product.

Cho (2011) (see figure 5) 3.6 CUSTOMER VALUE Customer value is created as a result of the interaction between what the product provides and what the users bring in terms of their goals, needs and limitations. Osterwalder et al. (2014) refers to value creation as value proposition, which describes the benefits your customers can expect from your products and services. Looking into Holbrook’s model and definition on what defines customer value and how the customer perceives it, he describes it as “an interactive relativistic preference experience” (Holbrook, 1994, p. 27) that can be explained using three definitive characteristics:

Figure 4. Love and respect matrix

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Figure 5. Lovemark elements (as cited in Cho, 2011, p. 18-20)

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“Typically, the act of purchase is not an end in itself but the means of obtaining experiences derived from the product.”

- Holbrook, 1994

4. METHODOLOGY & RESULTS

a) Interactive - First, Holbrook explains that customer value is interactive because value can only be obtained through an interaction between the customer and the product. And although a

We will briefly describe the methods we have used

product may have many qualities, he explains that

to come to a solution for Quirkbot. We divided

they only come to represent customer value when

these methods up in two categories: primary

customers within the context of a marketplace

research, which we have conducted ourselves, and

exchange appreciate them.

secondary research, that which has been collected and written by professionals within the field of

b) Relativistic - The second value is explained as

marketing and branding. First, we will describe the

relativistic, because value is subjective when it

validity and reliability of our methodology, then

is the result of customers, who relate to various

the models we have used and how we used them.

sources of value in a multitude of different sit-

Additionally we will briefly describe the results we

uations. Customer’s interests differ and change

gained from the used methods. The analysis of the

over time to the arrival of a newer product; hence

results will be presented in Chapter Four.

another characteristic of this value is the judgment of preference.

4.1 VALIDITY AND RELIABILITY c) Experience of Consumption - Thirdly, Holbrook

In any research, it is important to state if the

(ibid) explains that value is found in the experience

research is reliable or viable. This gives the indica-

of consumption of the product, rather than in its

tion if the research is trustworthy enough to use in

purchase. Typically, the act of purchase is not an

other work. The research we have conducted is not

end in itself but the means of obtaining experiences

reliable, but it is viable. The methods used mainly

derived from the product. It is a marketing axiom

involved filling in different practical hands-on

that people do not buy products, they buy the

models than abstract frameworks in branding and

services that products provide. However, we might

marketing theories in order to explore Quirkbot

recognize that for some products and markets the

from different angles to create a thorough under-

act of purchase is a part of the consumption experi-

standing of their business. We found it especially

ence; I may choose to shop at an expensive delicacy

helpful to scan and interact with the product on

store in preference to a conventional supermarket

our way towards a marketing and branding strat-

because this is more enjoyable and, arguably, this is

egy for Quirkbot. Sadly, due to time limitations,

part of the consumption experience derived from

we were only able to test the models with just

the goods purchased (Smith, 1996).

the three people in our group. Considering that

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Figure 6. Competitor Matrix with the example of LEGO Mindstorm

different people value and experience Quirkbot in

After we filled in the model, we applied some of its

various ways, which result in different outcomes,

aspects to closely related competitors to create a

more research with more people should be done to

competitor matrix (see appendix B). The combi-

come to a more reliable consensus.

nation of competitors we chose were companies that revolved technology, creation, programming,

The validity of the models is somewhat debatable.

education and toys, which we saw as closely related

Each of these models have been created by profes-

to Quirkbot. Some of the competitor’s offerings

sionals within the field of marketing or branding,

we looked into were Lego Mindstorms (see figure

however we did not research the origin of these

6), Kano, Moff Band, Raspberry and Arduino, as

models, how trustworthy they were or how well

well as Roommate, Thymio, My Atoms, Crafty

they worked in other research. In the discussion

Robot, Robi and Robo Wunderkind. The competi-

later on, we will describe our experience from

tor matrix helped to see what really differentiated

using these models.

Quirkbot from the rest and how the market situation looks today.

4.2 PRIMARY RESEARCH

During the initial introduction of Quirkbot, two

Our process began by filling in Kelly Odell’s (2006)

of our team members who were there noticed that

World’s Shortest Marketing Plan. This model

no instructions were present and that the product

asked short questions relating to products, price,

seemed a bit rough around the edges. This made us

place and promotion, which were divided by six

question how others would perceive the product as

questions (what, why, when, how, how much and

it currently stood and this formed the third step in

who) and helped to rapidly explore the market-

our process.

ing aspects within Quirkbot (see appendix A).

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One of our team members was not present when Quirkbot was introduced and this gave us the opportunity to let her try the kit without prior knowledge of Quirkbot, programming, and without any insight (see figure 7). We decided to not give any specific task, instruction or a time limit to see how the product would do on its own, and to allow her to experience the product as it is. The other two team members observed, wrote down her actions and asked some questions afterwards.

Figure 8. Customer Journey Observations of Tehilah, 29 years.

After one hour, she got frustrated and was on the

Besides observing how someone would use the

verge of giving up, which at that point the other

Quirkbot kit, we looked at a market leading toy

team members decided to help out. Reasons for

company that embraces creation, namely LEGO,

this was that the suggested design, found on the

to use as an unofficial benchmark throughout our

Instructables.com, was too complex and ended up

work. We went to a toy store and explored the

in a shaky structure. Also, the software interface

spectrum of different LEGO products, how they

did not explain how to program specific move-

are presented and what customer segments they

ments. Through the observations we gathered

seem to target, in order to learn from their ways of

various data that later led to key insights on how to

marketing and branding (see figure 9).

properly market and further develop Quirkbot. In figure 8 you will find the first ten actions from the observations. For the full list of observations, see appendix C.

Figure 9. LEGO Display at Toy Store

After the observations, we chose to generate and share ideas and thoughts around Quirkbot in a mind-map (see figure 10). A mind-map is a common design method that uses brainstorming to generate ideas for the diverging part of the double diamond model (Norman, 1988). Each team member was encouraged to put any ideas or thoughts on the board using post-its. We then

Figure 7. Tehilah Testing The Quirkbot Kit

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Pierre Hermé’ model (Jobber, 2009). This model helped to further define the branding of a company. It consists of six different parts: the brand domain, the brand values, the brand reflection, the brand personality, the brand assets and the brand heritage. The model encourages the user to map out their business within different stages of the company’s life, however due to Quirkbot being such a new business, we modified how we used the model. Instead we divided these factors into a “before” and “now.” With “before” meaning how Figure 10. Mind Mapping Around Quirkbot Idea

explored our ideas through secondary research

Quirkbot is currently positioned and “now” meaning how we might see Quirkbot positioned with our ideas in mind. See Appendix E for the results.

and came up with a more refined idea. By dividing this idea into five key categories (business model,

As our process came to a close, we used the Busi-

education, unique designs, start kits and identity)

ness Model Canvas created by Alexander Oster-

and explored these through more brainstorming,

walder (2008). The use of the Business Model

we mapped out the possibilities of our refined

Canvas helped to create a holistic view of Quirk-

idea. We used this information to create state-

bot’s business. It also functioned as a checklist

ments and themes which eventually led to the

to see if all the ingredients were there. Although

following research question for the Quirkbot case:

we did not have all the elements of the canvas, for

“How might Quirkbot create playful learning

example cost structure, it allowed our group to

experiences that push the imagination through

understand and see the value proposition and key

engaging designs, which are easy to build and fun

activities more clearly within our proposed ser-

to modify?” This question enabled us to work

vice. Finally, as we started to understand our pro-

effectively on a common ground.

posed service more clearly, we decided to create a customer journey map 2.0 that outlined our

The next step in our process was to fill in the ‘

proposed service from start to end: purchasing the

Successful Branding Process’ model, created by

Quirkbot to engaging with it. This process helped

O’Malley (2014). The model gives five easy steps on

to make our ideas more tangible and was useful

how to develop a successful brand by asking ques-

in viewing any possible issues, gaps or challenges

tions like: How is the brand perceived today and

during the journey. We will show these two models

how will you nurture, enhance and innovate the

as a deliverable for Quirkbot in Chapter 6.

brand? We answered these questions as a group and this resulted in a list of aspects that differentiated Quirkbot. This helped us to further define the branding of Quirkbot. See appendix D for results.

After the ‘ Successful Branding Process’ model, we used the ‘Anatomy of the branding position of

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“Young people today have lots of experience ... with interacting with new technologies, but a lot less expressing themselves with [it] ... almost as if they can read but not write with new technologies.” Mitch Resnick (2013) 4.3 SECONDARY RESEARCH

of college students graduate with degrees in the

The Quirkbot case involved several elements,

field” (CNN, 2014). Some educators and experts are

such as marketing, brand value, customer experi-

referring to coding as language (Techerhack, 2013)

ence, user friendliness, psychology and sociology,

or calling coding the ‘new literacy’ (Missio, 2015)

making this case somewhat challenging to grasp.

and the urgency to bring coding to school seems

Therefore to better understand the scope we used

evident. In some countries like India, coding has

secondary research gathered from several sources,

been an integral part of education for several years.

such as journals, books, websites and other online

For Sweden however, we found out that this is not

sources. This research dived into various subjects,

yet the case; programming has been discussed

including the psychology of toys and coding within

in the government several times before, but has

education, as they were valuable in shedding light

only as recently as in last September, 2015 asked

on our proposed direction for Quirkbot. We will

for an actual updated curriculum (Skolvärlden,

briefly describe our key findings.

2015). This might be because coding languages like C++ (Quirkbot), Ruby, HTML(5), CSS, Javascript, Python etc. change every year and are not fully

Coding in Education Today

established. Knowing the centralized education

As all of us have personally experienced a recent

system, adding this unpredictable language of

surge of technology-based systems and products,

coding to the curriculum would be challenging and

we became interested in this growing topic in what

may take years to implement.

seems to be one of Quirkbot’s primary objectives: to teach children about coding. Therefore, as part of our initial research, we looked into the promi-

Psychology of Emotional Branding in Toys

nence of coding within school curriculum in our

The non-representational building material

home countries Finland, the Netherlands and

(Strawbees) that enables users to create represen-

Canada, as well as the USA. We have learned that

tational material (structures), the low entry level

all the countries mentioned above are already

of physical skill and the experience of dumping out

taking an initiative to implement coding as a man-

material and sorting it (Wrenn, 2012), reminded

datory element of the primary level curriculum.

us to a large degree of LEGO. We saw this familiar-

Some educators argue: “Computer science is one of

ity as an opportunity to research LEGO and break

the top paying college degrees -- and yet only 2.4%

down the psychology behind toys.

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LEGO is an interesting company, after decades

Further research shows that kids have major

of success they were almost bankrupt in 2005,

impact in family purchasing decisions. YTV Tween

but by cutting costs and innovating their brand,

Report, a national survey in Canada that tracks the

they are now the biggest toy manufacturer in

lifestyles, attitudes and opinions of kids aged 9 to

the world and beating Mattel (Ringen, 2015). A

14, shows that kids influence, for example, 76% of

problem for LEGO was that children played less

the family purchase-decisions of software and 98%

with the tangible physical and more in the intan-

of family entertainment decisions (Corus Enter-

gible digital. For a company that mainly relied on

tainment, 2008). When it comes to the actual use

selling building blocks, this trend was devastating.

of toys, it is interesting how children and adults in

Through extensive research, LEGO has managed

fact behave in similar ways. According to experts

to integrate the offline and online world, but in

and anthropologists (Muensterberger, 1994, p. 10):

recent research they saw that there are no more meaningful distinctions between digital play and

“Giving a doll or any other object a “soul” or a name

physical play anymore. Yet, the (toy) experience

is one telling example. This is a phenomenon anthro-

should be carefully balanced between the offline

pologists are long acquainted with. It is called ani-

and digital world. They claim it’s not necessarily an

mism. In psychological terms, it has been described

intuitive experience for kids, and the flow between

as “attachment” or “clinging response”, not only

setting down the bricks and picking up the tablet

among children, but adults as well. The concrete

has to be carefully choreographed. The play with

manifestations are many. Some people remember

LEGO is therefore always choreographed with

a favorite toy; others recall the first attempts at

clear instructions and feedback.

collecting baseball cards or campaign buttons, or perhaps going in search of shells and minerals. Pref-

One of LEGO’s recent successful products is the

erences and taste are under the influence of prevail-

new LEGO Friends theme. Their research showed

ing trends and environmental conditions, especially

that boys are more compelled by strong narratives

as one grows older.”

and that girls are more into role-play, as proven by the success of the Friends theme (Ringen, 2015).

Some emotional drivers to collecting are further

But regardless of the toy, children create a world of

listed by the same author (ibid, p. 11-12):

their own (the world of pretend) and don’t worry about what it is and what its worth than whether

“Repeated acquisitions serve as a vehicle to to

it has a sense of wonder. If it’s not special, it’s

cope with inner uncertainty, a way of dealing with

not worth keeping and it will never grow to be a

a dread of renewed anxiety, with confusing prob-

valuable collection. LEGO promotes the collective

lems of need and longing. The sense following the

aspect by providing unique pieces in every box.

acquisition is usually that of blissful satisfaction

This has the benefit that people can’t just replicate

and excitement, at times accompanied by flagrantly

a design from the box, they need the pieces. Adults

exhibitionistic elation (as I spoke of when George

collect in a different way. If it has a higher price, it’s

Tillmann wanted to show me an object he had just

more valuable and worth collecting (Robertson,

brought home, even though it was long after mid-

2016).

night (…) The intricacies of the find; its discovery or attainment; the sometimes clever ploys utilized to effect an acquisition; the fortuitous circumstances

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“People need their interactions with technologies and other complex systems to be simple, intuitive, and pleasurable.”

-(Kolko, 2015, p. 68).

of the lucky strike; the energy expended in obtaining the object; and occasionally the waste of time; the preoccupation with the challenge; with rivalry and jealousy - all the emotions are shared and devoted collectors...”

When researching popular toys we made some interesting findings especially in the following two sources. Wired (2013) has listed “32 of the Most Popular Toys From the Last 145 Years”. We learned that toys most often take the form of a featured figure, like the self-carved wooden dog from a Noah’s ark series from the 1880’s or even a character with a particular personality, like the Teenage Mutant Ninja from the 1980’s around the time when the development of plastic technology has recently boomed and became a cheap and popular

Figure 11. Popular Toys From The Last 145 years (Wired 2013)

material for toys (see figure 11). Playthings, such as the Jojo in the 1930’s or slinky from the 1950’s,

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are also listed, but they are not so many. Safety and

Toys that are kind enough to tackle tough emotions

educational aspects of toys are argued to be the

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rising trends among toys (ibid).

It’s easy enough for your child to do frustration-free

A more recent study by Parents (2015) confirm

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With minimal assistance from you

that the most popular toys - picked by parents and

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Kids feel like they’re standing in a city or even in outer space

tested by kids - include mostly toys with some kind of sensory aspects, such as blinking lights. See the

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total list of 21 of the most popular toys for ages

Children who love the challenge of a long blueprint, assembling the Lego City Spaceport has a

appendix F. The descriptions, as quoted directly

cool payoff

from the source, often include an explanation of

•

what makes the toy special in emotional mean-

Accessories allows more customization than ever

ing, especially the following wordings we find interesting:

14

5. ANALYSIS

lost business opportunity. A user might not create anything valuable at all, by trial-and-error maybe,

This chapter discusses how we perceive Quirkbot

but one that is very time-consuming and not very

today, its values and target group in relation to

engaging. We want to challenge the idea that “an

the current market situation. Due to the many

empty page” is the most effective way to spark a

intertwined perspectives in this chapter, we will

user’s creativity.

describe the analysis with a discussion approach.

We dig deeper to the current challenges and

It becomes obvious for us, that the product in its

opportunities in order to introduce the reader to

current form is designed for ‘makers’ that already

our proposed solution in the next chapter.

know what they are doing, which is also confusing since they address educators on their webpage.

Quirkbot’s current values of promoting play,

Quirkbot is marketed only on digital platforms

learning, sharing, cooperation, equality are novel

that make it hard for some potential customers to

concepts, but might not bring the economic

find the product. This increases the pressure for

breakthrough for the company that Dan Henriks-

Quirkbot to create a proper marketing strategy.

son envisions. During our study, that by no means

Quirkbot seems to rely heavily on the ‘maker’

was theory-driven, we have noticed that due to

movement, which despite its recent rise still

the practical issues with the product itself, it is

represents an identity of a minority or a niche that

rather hard to both build and code, and therefore

is perhaps not appealing enough for the masses to

the incentive for the user to learn and share are

relate to. It is questionable, if an ordinary child of

remarkably lower than what the brand actually

5+ would use Quirkbot in its current design out of

promises.

their own interest without the push of an educator or a parent. By designing for ‘makers’ and assum-

Incremental improvements in the product are

ing that users know how to get along with the prod-

necessary to achieve a higher level of perceived

uct without instructions, they fail in delivering

quality around the Quirkbot brand. During our

their value of equality. We have learned that the

customer journey we learned that it is especially

success stories in the toy market, such as LEGO,

frustrating when basic tools, such as a screwdriver

indeed deliver instructions along with narratives

and rubber bands, are missing. Without instruc-

and characters, that in turn create emotions, and

tions and suggested designs we argue that the

an easy and attractive framework that become a

value offering is rather weak. The current idea is

welcome push for consumers’ own imagination.

that Quirkbot facilitates consumer’s fantasy and

We also see that the demand is high for educational

creativity with few or no limitations. According to

toys especially within coding, both on the con-

our experience this, in reality, leads to frustrated

sumer market and towards educational systems in

consumers that grab whatever tools they have at

e.g. Finland, Canada and USA, but the competition

hand, e.g. knife instead of a screwdriver, and turn

is already tough. Similar circuit boards are sold

to Google for finding instructions and suggested

under many - sometimes more known - brands,

designs randomly on the Internet. Sometimes

such as Arduino or Raspberry.

these designs are not suitable for the user, considering the level of difficulty. The user is sometimes

Coding is a very popular topic in many countries

even asked to pay for the instructions coming from

today; coding has actually become mandatory

other sources than Quirkbot, which we see as a

in the earlier described countries. The timing

15

6. PROPOSED SOLUTION

is perfect in that sense. Sadly, Quirkbot’s home country Sweden is lagging behind other countries as a potential market. The curriculum in elemen-

Now that we have discussed our findings, we

tary schools in Sweden doesn’t include coding yet.

will present our proposed solution for Quirkbot

It has been brought up in the Government several

that we have created with the earlier described

times, the last occurring in September 2015. The

constraints in mind. This chapter will describe

discussions are still happening on a very high level.

the new business model for Quirkbot, its vision,

In a democracy like Sweden, it might take several

mission, philosophy, targeted customer segments,

years, to actually agree upon and implement a

as well as the more practical implications like

detailed plan.

organizational structure and a twelve-month implementation plan.

Coming back to our original problematization of whether Quirkbot represents more of a toy or education, we have learned that these two brand

Vision

positions don’t need to be mutually exclusive since

To blur the lines between learning and playing

“educational toy” is a commonly used term on the market. However, our research shows that whatever position is dominating their offering will have to be reflected in the unit price towards consumers. Toys represent a category of cheaper pricing

Mission

whereas education can be more expensive. The

To create playful learning experiences that pushes the imagination through engaging designs, which are easy to build and fun to modify.

competitive situation is increasing the pressure for Quirkbot to increase user-friendliness, and either drop their prices or radically differentiate their product and service offering.

After analyzing earlier theories in branding and marketing, we can confirm that there is a remarkable resemblance in design literature that studies sense-making, and marketing and branding

6.1 SUBSCRIPTION-BASED BUSINESS

literature that highlight consumer’s emotions and

MODEL

values. In order to discuss how the marketing and

Through our research, we saw the implementation

branding theories helped us to analyze the Quirk-

of the psychology of storytelling as a fundamen-

bot case, it’s worth mentioning that we found a lot

tal opportunity of the future marketing strategy

of support in the Lovemark theory to back-up our

of Quirkbot. In return this could potentially

results in the emotional and sensory issues found

target new customer segments and give Quirk-

during the customer journey map.

bot an opportunity to generate more recurring revenues. It appeared that the development of a subscription-based business model would be most suited, effective, and fun for this concept. (see figure 12) We envision this as follows: Every

16

Figure 12. Subscription-Based Model With Learning Curve

month, customers will receive a box, packaged in

with what they make. By allowing them to choose a

a theme-featured series of attractive designs for

theme/narrative, they become more engaged with

a Quirkbot. Each box represents a quality service,

what they’re making. To start, we propose that

that helps the consumer to reach new levels of

customers can choose between three sets of narra-

building and coding know-how. The box includes

tives: Jungle, Space and Farming. These narratives

clear instructions together with the necessary

showed in our research to be relevant on three

hardware like LED’s, speakers and extra equip-

points: gender neutrality, general interest, and

ment like a screwdriver and rubber bands. Because

ability of storytelling. The idea would be that at the

users need a computer (or even better a tablet

end of the six months, users would have a collec-

or smartphone), the transition from building

tion of designs that relate to a grand narrative.

to coding is carefully choreographed within the

Within the time provided, we managed to start on

instructions (depending on the structure). This

three narratives that may reflect how Quirkbot can

will enable Quirkbot to better facilitate within

build these stories.(see appendix G). We see this

educational systems, as children can use Quirkbot

as a major opportunity for Quirkbot as there are

on their own, without any help of adult supervi-

possibilities for expansion within these areas both

sors. Consequently, teachers don’t need to learn

within the designs and narratives, and also licens-

how to code. In this concept, Quirkbot becomes

ing possibilities through popular and relevant

something that users look forward to: every

brands such as National Geographic, BBC etc.; all

month, a new challenge, but also a new opportu-

with the same goal in mind: keeping education fun,

nity to learn and play. (See figure 13 for Business

informative and engaging.

Model Canvas used with Quirkbot proposed solution) Learning Curve The proposed subscription-based model would be Designs as Narratives

part of a learning curve that unconsciously teaches

As part of our initial research, we looked into the

the user coding skills and pushes the imagination.

psychology of narratives and storytelling within

In return, this creates drive for learning around

toys. This gave us insight into why users associate

Quirkbot. As with any language, (C++ in Quirkbot’s

17

KEY PARTNERS

KEY ACTIVITIES

VALUE PROPOSITION

Strawbees

Clear instructions

Easy building

Tech/hardware producers Retail chains

Design generation

Focus on coding

What themes attract different groups?

Fun

Licensing opportunity (National geographic and discovery channel)

Trend sensitive

Educational labs

Push imagination Attractive and engaging designs Recurring learning Sense of accomplishment

Universities KEY RESOURCES People making Unique designs (copywriter) Intellectual properties

‘Wow’ effect Different packages for various users Packages works as facilitation Re-usability

CUSTOMER RELATONSHIPS

CUSTOMER SEGMENTS

One website (Quirkbot)

8-13 year old kids

Self-service (selfmaintaining)

Anyone interested in learning code with flexibility(?)

Playful contact Communities Co-creation CHANNELS

Fun teachers Lead users The ‘involved’ parent

Preferred retailers Free marketing through Youtube and Snapchat Specialized stores for special editions

COST STRUCTURES

Revenue streams

Research and design

Subscription based

Tech development

Fixed vs. monthly

Economies of scale

Retail

Salaries

Figure 13. Business Model Canvas of Quirkbot

case) coding can be taught with incremental steps.

something valuable resulted in failed attempts to

Our idea would fully integrate these steps into

make something that had any sort of value at all. As

the six-month-subscription, and would allow for

well, the time spent on constructing these char-

a guarantee to their users that they would uncon-

acters resulted in less time available for learning

sciously learn a level of coding at the end of their

code, an important observation considering the

subscription. The learning curve becomes a frame-

limited attention span of the human brain. To

work for each theme, that helps both Quirkbot to

solve these issues, we have outlined a company

design the themes and the user to get most out of

philosophy in three main concepts around our

the Quirkbot experience. In order to acquire such

proposed idea for Quirkbot, helping to outline how

a learning curve, Quirkbot should try to consult

the product itself should be perceived and com-

with experts, or turn to professionals from the field

municated. The philosophy stems from our aim to

within their social network or the ‘maker’ commu-

reinforce and deliver more truthfully to Quirkbot’s

nity. The learning curve drives their values as edu-

core values of learning and equality, by improving

cators of code, which helps solidify their position

aspects such as accessibility, accomplishment and

as being more educational.

user-friendliness.

BUILD - By providing the design of structures with

6.2 COMPANY PHILOSOPHY

clear instructions, users will be able to build with

In our analysis we suggested that one of the

a sense of direction. This in turn, will give the user

struggles with the Quirkbot was its inability to

a sense of accomplishment and satisfaction. With

create clear feedback to its users during building

our educational subscription model, users will

and coding. In turn, a lot of the attempts to create

be able to create structures each month that are

18

part of a grand narrative or theme, that the user

Quirkbot is not meant for everyone. If you are

finds fascinating and motivating from the start.

not into creating, programming or even robots,

By knowing the scope of a building project before-

Quirkbot is not made for you. With our proposed

hand gives an extra push to start building.

solution it becomes possible to target a bigger market than the current situation. However, with

CODE - With the created structures in hand, users

Quirkbot there’s a clear distinction between a

will attach a Quirkbot and continue to follow the

customer who buys the product and a user who

(physical and/or digital) instructions to code and

uses the product. We have identified two customer

make the structure come alive. This is where the

segments and one user segment that represent the

power of Quirkbot really comes into play. Firstly,

most prominent segments for our proposal.

we think that because the user relates to the structures coming from within a particular theme, the user feels more affection and it becomes more

User Segment: Children 8–13

fun to code the structures. Secondly, we believe

The years between 8-13 in a child’s life can be full

that because the building momentum will now be

of experimentation, fantasy and fun. Perhaps the

much easier and faster, users will spend a lot more

last time before things become complicated within

time on modifying the code. This dual psychology

the teenage years. For example, social aspects start

will allow users to learn the most. Less time spent

to become more important and take time from

on building the structures, and more time devoted

learning and hobbies. However, by setting proper

to making the structures do certain things. Each

values and habits within these years can lay the

design becomes a living character in a story, where

groundwork for how children develop the rest of

a user solves a series of challenges curated by

their lives. We see this as an important segment for

Quirkbot.

Quirkbot, as it represents both an opportunity to positively influence a young generation to play and

PLAY - As soon as the quirkbot is programmed, the

learn through code in combination with a theme of

user can start to play through their world of imagi-

their choosing, and build a long-term relationship

nation. We want to help the user to get most out of

with them, potentially growing the future maker

the momentum of play, that we gladly emphasize

community.

to keep a child’s life in balance after all this learning. We envision that Quirkbot can suggest things to do with the structures, for example, battle, race

Customer segment: Involved Parent

etc, or other examples of gamifying the experience.

Parent’s generally care about their kids well being,

After playing, users are able to make and collect

learning and having fun being just two of them.

many more structures. One Quirkbot circuit board

With entertainment now in numerous forms of

can fit into as many designs as you can imagine and

technology, opportunities for engagement are

with new Quirkbot designs coming every month,

everywhere. The involved parent is aware of this

the user won’t run out of ways to play and learn.

information overload and takes the effects into consideration in relation to the well being of their children. Quirkbot creates a non harmful play-

6.3 CUSTOMER AND USER SEGMENTS

ing experience that combines physical play and

Through our research, it became clear that

digital learning through programming self-created

19

structures. Involved parents can decide to join in if

6.4 BRAND ORGANIZATION

they want to, but children are fully able to use the

During the course of our process, designing a

instructions to their advantage and play without

suitable brand organization for Quirkbot was a

assistance. This becomes a valuable incentive for

challenge. Quirkbot is a company, but it’s also a

parents to buy a Quirkbot for their kids.

product, therefore the product defines the brand and this limits the possibilities of the brand.

However, LEGO has the very same problem and

Customer segment: Cool Teacher

they are doing better than ever. We think this is

Quirkbot helps you learn in an unconscious way.

due to the building possibilities of LEGO. With

However, we also see Quirkbot as a new learn-

the different blocks LEGO can design whatever

ing tool that ‘cool teachers’ can bring into their

they want and create themes like LEGO City,

classrooms and use to approach ordinary subjects

LEGO Star Wars, LEGO Friends etc. The same

in a new way. Due to Quirkbot’s inability to fully

thing is possible with Quirkbot and the straws (or

integrate their product as an alternative to learn-

any other building material for that matter). By

ing within a programming curriculum, we see the

creating different themes dedicated to different

themes as a driver. With new themes come new

user segments, Quirkbot as a company is still able

ways to learn a variety of subjects. For example, we

to divert. Through licensing Quirkbot is able to

could see the solar system as a subject, and Quirk-

‘lift’ with other brands like Star Wars, National

bot as an alternative to learning how the planets

Geographic, BBC etc. Quirkbot has the potential

revolve around the sun versus a more traditional

to also extend its own brand by creating games,

textbook approach. There are endless ways for

movies, etc. out of its most popular narratives. We

teachers to bring Quirkbot into the classroom, and

consider Strawbees as one of many suppliers for

we feel the company itself has a direct possibility

Quirkbot. Another idea, borrowed indirectly from

to cater within this market in the future.

our LEGO benchmark, that also has the potential to strengthen the relationship with Strawbees as a preferred supplier, evolves around ordering

Customer Journey

unique Quirkbot-branded straws from Strawbees.

For our proposal we created a customer journey

In a quite clever way this would help Quirkbot to

map that shows all the important touchpoints

protect its designs and make them less replicable

a customer and an user would go through. The

by the market.

reason for dividing the customer and user is due to parents that provide for their children. Therefore

We suggest that the umbrella brand Quirkbot will

we see the customer as the involved parent or cool

hold Quirkbot Academy, Quirkbot Maker and

teacher and the user as kids between the ages of

Quirkbot Business. Each of these subsidiaries

8 and 13. It is unlikely, however not improbable,

target different customer segments and offer dif-

that kids will buy Quirkbot related products in a

ferent products accordingly (See figure 15 for our

retail store or online on their own. The customer

proposed organization.).

journey map (see figure 14) shows these different journeys.

20

JOURNEY MAP “I need something fun for Johnny, if he could learn from it, that would be great!”

“This was easy!

I’ll choose a theme Johnny would like!”

“That’s a great deal for a gift and I can just put in my address and it delivers right to my door ”

TOTAL

$89

WEBSITE

customer segment

“INVOLVED PARENT”

PAY + ADD INFORMATION

FAST DELIVERY

“YAY!” “Wow! thanks mom”

“This looks exciting Johnny”

Q Q

EDUCATION RIGHT AT YOUR DOORSTEP “It came with everything!”

“wow! that was so fun to build”

WELCOME TO THE ACADEMY

Q

customer segment

“CHILDREN 8-13”

WELCOME TO THE ACADEMY + INSTRUCTIONS FOR FIRST BOX

FUN + EASY BUILDING

“hm, let’s look at the code and see if I can make it do something”

“ROAR!!”

VISIT QUIRKBOT SITE AND START CODING

“Lets battle!”

“I can’t wait to play with this”

ATTACH YOUR CREATION TO MAKE IT MOVE

“let’s make it do something else!” “meow”

INVITE FRIENDS TO PLAY + BATTLE

CODE MORE

“I LOVE MY QUIRKBOT! I can’t wait until next month”

Figure 14. Customer Journey Map

21

Figure 15. Proposed Organizational Structure of Quirkbot

6.5 TWELVE-MONTH IMPLEMENTATION

separately, undivided attention and buzz around

PLAN

that particular theme can be created. Developing

An important question for Quirkbot is of course:

a variety of themes for the market is of key impor-

How to implement this? What do we need?

tance and the first years will be intense, because

Although we are no experts in the field of imple-

the kits are still in the making. However, it seems

mentation and the finances were never our main

reasonable to assume that Quirkbot is able to

focus, we created a twelve month plan that gives

launch three themes within one year.

a suggestion on where to start and what that requires, e.g. what kind of people Quirkbot needs

In our plan (see figure 16), only the three subscrip-

to make our proposal happen. The approach to

tion based products or kits are treated, but we

this implementation plan is carefully structured

don’t want to exclude the development and sales of

as a project that divides internal activities from

the existing Quirkbot kit. An upgraded version of

activities that need to be coordinated together

this kit can be a strategic move that doesn’t require

with external actors.

too much effort. The profits from the ‘maker’ kits can support the project financially while targeting

We suggest that the three kits are developed and

a customer group that poses little or no risk to can-

launched at different times in order to get the first

nibalize sales of Quirkbot’s educational subscrip-

package e.g. Jungle out on the market as soon as

tions. An important thing to note is that Quirkbot

possible and start generating revenue. We believe

needs investments beyond Kickstarter to hire the

that focusing on one theme at the time is the way

right people. Kickstarter and their experience

to go, because different themes require different

thus far shows that there is a market out there. We

(theme) experts or (in the case of the licensing

defined this market and made it even bigger, thus

model) partners. Fortunately, the learnings gained

making investing in Quirkbot more appealing to

through development of one package, can be used

investors (see full 12 month implementation plan

to speed up the process, e.g. the learning curve

in Appendix H).

stays the same. By launching the different themes

22

12 Month Implementation Plan INTERNAL Project Management

1

2

3

4

5

6

7

8

9

10

11

12

11

12

♦

Design Development

★¹ ★² ★³

Visual Communication

Product Content Creation

Graphic Content Creation

EXTERNAL

1

2

Sales

Purchasing/Sourcing

3

4

5

6

7

8

9

10

▲

Communicator

Brand Ambassador

♥

MILESTONES

♦ ★

Project plan ready, key resources acquired and mobilized Theme/product package completed and ready for market

▲ ♥

Trial period with retailers start Additional promotional activities start

Figure 16. 12 Month Implementation Plan

7. DISCUSSION

found that by approaching the masses, there is a larger chance to impact change within society, and

In our report, we looked at Quirkbot as both a

find ways for a larger amount of people to learn

product and a company, and explored a variety of

how to code through their products. By position-

ways for them to approach the market. Quirkbot’s

ing Quirkbot as an educational alternative, we

products are not fully clear whether they are toys

see appeal within its ability to then approach the

or educational tools; two product markets that

market at a later date with more confidence, as it

don’t often live symbiotically. However by only

would have an opportunity to be situated within

approaching the maker culture, they may only be

the minds of their consumers. As well, by creating

targeting a narrower segment of their potential

a more standardized learning curve for code, their

market. In our findings we also found that the

roles and values will be more prominent within

educational systems within Sweden may not be

this market, and would have a clearer percep-

fully ready to implement coding into their curric-

tion of their position within it. We found that the

ulum, thus Quirkbot must find ways to prepare the

use of narratives is also important for children’s

market until it is ready. Thus, in our findings we

toys, and can see this also as an important aspect

23

8. CONCLUSION

and differentiator for Quirkbot to leverage more aspects of learning within their product.

Our focus was to help Quirkbot approach the The methods used to approach this case

larger market so they would be in a position where

leaned heavily on the models used throughout.

they could generate sales; to be in a situation

Because this case relied more on more practical

where they can generate profits not only towards

approaches, we saw the practicality of the models

Strawbees, but for Quirkbot as a separate entity.

as more useful than the frameworks set forth

During our process, we reformed this task into the

by theory. We see the models useful to any new

following research question: How might Quirkbot

venture, and particularly helpful when checking

create playful learning experiences that push the

off elements of their business to see if they are

imagination through engaging designs, which are

missing anything important.

easy to build and fun to modify? Through various primary research models like a competitor matrix,

Because Quirkbot has situated themselves within

the Successful Branding Process model, obser-

this maker culture, we see our proposed service as

vations and secondary research, we came to the

a more radical shift for their brand. However, we

conclusion that Quirkbot’s current product needs

see value in placing Quirkbot towards the masses,

improvements, e.g. additional tools and instruc-

as the opportunity to create a drive around their

tions, before being able to be released on the

products is much higher. We also see how their

market. Additionally, we see the targeted customer

current novel values can actually be enhanced

segments, especially education, as not the right

within our proposed strategy. As long as there is

choice for now. Knowing the centralized educa-

demand on the market, Quirkbot will do wisely by

tion system in Sweden, adding the unpredictable

exploring different business opportunities in order

language of coding to the curriculum would be

to try and respond to some of that demand with

challenging and may take years to implement.

feasible commercial offerings. A bigger market

Therefore mainly targeting the education system

share would mean a more established position

is both too challenging and too limiting, when

on the growing market and provide more means

considering the full business potential of Quirkbot.

for the survival and development of Quirkbot as

Instead, we suggest a subscription based educa-

a company. Instead of seeing radical commer-

tional model that targets children from 8 to 13

cialization of Quirkbot as a bad thing, we want to

years old. Through various themes in combination

focus on the huge potential of building a successful

with engaging designs, a steady learning curve and

company that inspires other start-ups, further

the Build, Code, Play philosophy, Quirkbot will be

enhancing the culture of makers of different kinds.

able to create playful learning experiences that

With a larger timeframe and more information

push the imagination, are easy to build and fun to

around their finances, the ability to create a plan

modify. Consequently, with our proposed solution

that reflected their ability to generate profits may

Quirkbot becomes a learning toy for the masses.

have been more conceivable.

If this more utilitaristic approach is properly adopted by Quirkbot and communicated out to the potential customers our assumption is that the brand will create more value, win more trust and generate revenue.

24

25

26

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Retrieved 8 March 2016, from http://www.forbes.com/sites/andyrobertson/2015/03/31/ lego-dimensions-portal/#39684ecd4440 Silk, A. (2006). What is Marketing? Boston, MA: Harvard Business School Press.

Skolvärlden. (2015). Regeringsförslag: Programmering i grundskolan. Retrieved on 2016-03-20 from: http://skolvarlden.se/artiklar/regeringsforslag-programmering-i-grundskolan Smith, N. (1996). Ethics and the Typology of Customer Value. NA - Advances in Consumer Research Volume 23, 148-153. Association for Consumer Research. Retrieved from http://acrwebsite.org/volumes/7931/ volumes/v23/NA-23 Smith, J. & Colgate, M. (2007). Customer Value Creation: A Practical Framework. Journal of Marketing Theory and Practice. Taylor & Francis Online 15 (1). 7-23. Available from: http://www.tandfonline.com/doi/ abs/10.2753/MTP1069-6679150101 Wired. (2013). 32 of the Most Popular Toys From the Last 145 Years. Retrieved on 2016-03-20 from: http:// www.wired.com/2013/10/see-the-most-popular-toys-of-the-1880s/ Wrenn, E. (2012). Why we love Lego - leading psychologist reveals the ‘builder instinct’ is the key to the popularity of the toy. Retrieved 6 March 2016, from http://www.dailymail.co.uk/sciencetech/article-2178872/ Why-love-Lego--leading-psychologist-reveals-builder-instinct-key-popularity-toy.html

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APPENDICES

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APPENDIX A: The World’s Shortest Marketing Plan Applied to Quirkbot

PRODUCT

PRICE

PLACE

WHAT

WHY

What products do you sell?

What need does When do you it fill? need it?

Arduino boards, fun toy, a new craft, is it a service, coding for kids

Fun alternative education, hobbyist, visual imagination, coding education, creative flowbuilding coding and sharing, leisure time time to learn code, tangible + digital combination

When you want to make strawbees come alive, when the teachers tell you to, when you got time to spare, time 45 mins - 1hr

What price will you sell for?

Why is that the right price?

Is it a risk - will schools make it a want, more for maker box, too high for individuals, cheap straws, what makes this price worth it, $80-90

How long will the price be valid?

For education, private use, Already timed usability, out, it's not valid packaging, long at all lasting?, needs to be aligned with competitors

No info available, tech becomes cheaper - price is always dropping, initial price should go down

How will products be distributed?

Why choose When do these channels? customer choose different Quirkbot channels? doesn’t know any better and it Alternatives are chosen when is quick and something is easy, get needed quickly, consumers to channels are test and limited, when prototype, all tools available there is a "want" might lead to or desire for a sales product

Posted - no clear distribution channels, kickstarter?, maker fairs, science festival, liseberg, other events in universeum?

PROMOTION

What type of Why choose promotion to be these activities? used?

Tailors to young 7 wonders of audience, the world, Snaphat for Snapchat + kids, innovation other social companies to media, web make quick and blog, easy prototype, Kickstarter, physical places, Youtube, moving objects package are well solutions - even captured on bigger or more video, open expansive, source is social design schools, good for social Quirkbot Stores, media pop up workshop in parks + squares "flying objects"

WHEN

Timing, launch, lifecycle, etc.

Ongoing, now, depends on education system

HOW

HOW MUCH

WHO

How will the product fill the need?

Product costs, volume to be sold, etc.

Customer segments to be targeted?

QuirkBot provides you with tools + instructions + designs, big creating and learning visuals, learning by doing, attractive appearance

No information, depends on channel, plastics - injection molding might cost more,

How will the price develop over time?

How much sales and margin will be created?

Different prices for different segments?

How will we create of enter these channels?

What are the costs/benefits of these channels?

How do different segments use different channels?

Talking to educators, businesses, stores, showing benefit to education system, requires QuirkBot to contact schools directly

Internet spreads fast + easy, no middle man - all for profit, only domain post costs.

How will the promotion be executed?

Cost/benefit of the promotion?

Probably cheaper for Low volumes - high schools - volume dependent, margin, if education education, business, private market - low margin - use high volume

Spreads fast world Viral video, record etc, cheap QuirkBot competition, celebrity innovators, quirkbot event at schools, promotion through vloggers

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Schools, children, educators, parents, DIY, geeks, families into technology

Kids Snapchat + Youtube, target groups and potential customers might never find their homepage - FaceBook - InstaGram, recommendations spread in networks - example: between teachers,

Target group for various promotions?

DIY on Youtube, young "sharers" yes business to business, business to education, business to consumers - kids + parents

APPENDIX B: Competitor Matrix

COMPETITOR MATRIX Lego Mindstorm Kano

Moff band

Raspberry

Arduino

What it does?

Use Lego system to create and command robots that walk, talk, think and do anything you could imagine

Wearable tech with sound effects. Controller for games, like Wii. Battery works for 20 hours with one charge.

Standalone circuit board. "Single-board computer" and you can create anything with it.

Standalone circuit board.

What are the costs?

4000 SEK (cost 150 EUR (but also 46 EUR of an iPad!) needs a screen)

5 - 40 USD

20 - 50 EUR + VAT

How involved are children?

Kids already know lego. Kids can be selfgoing with the help of manuals.

Build your own computer.

Program your own games.

Software is No adults needed. Not really - they need Not really - they need already there. The supervision supervision user basically plugs n play and drag and drop.

Learning outcome Building and programming

Build computer and design your own games given the options provided.

Ease of use

Drag and drop.

Good instructions and design suggestions.

Kids already know how to lego.

Support

Experiment and create anything.

Hard-core programming.

Experiment and create anything. Hard-core programming.

User is introduced Very easy. to some ready options, so it's easy to start. Easy to assemble and plug'n'play. "As simple and fun as LEGO".

Not very easy

Not very easy

Established international company - lot of support!

Manuals, videos, forum, community

Reviews available.

"KANO for education": schools, clubs, communities.

Lesson plans, teachers just have to check if the plans are aligned with educational learning goals.

No support provided by Moff.

No support really needed. 3rd party developers involved.

A lot of support provided. Established on the market and other companies are using Raspberry technology.

A lot of support provided.

Established on the market because one of the oldest solutions available.

Differentiator

Brand recognition.

Probably more advanced than other competitors.

Possible to subscribe to a magazine to an extra cost. Open source - the KANO computer uses Linux OS.

Ready to use. New Unlimited sound effects possibilities. It can published every run Linux OS. month. Energyefficient, shuts down after a short time.

Target group

10 years + (almost exclusively show boys in the ads)

Schools, clubs, 5 years + communities.

Seems that they are targeting 8 to 14-year-olds.

Content (as in games) and ads seem genderneutral.

14 +

14 +

Visual - what does Looks more it look like? technical.

Looks nice with the orange color.

Very neatly packaged.

Multiple colors, minimal style.

Just a normal circuit board. The web videos use a lot of humour.

Circuit board

Customization possibilities (flexy design)

Theoretically, yes it's adaptable because open source. Not really sure how this could work in practice.

Choose between You have to build already existing something around it. sounds. We think Moff can only host 1 sound at a time.

Combine with any LEGO

Toy for fun, no real learning happening.

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Unlimited possibilities.

Completely customizable.

APPENDIX C: Full Customer Journey Experience, Tehilah, 29 years

Observations Customer Experience 1

She opens up the box

23

She drops the LED

2

She removes everything out of the box

24

She asks: Ok, I am set-up now? I don’t get it, why do I need two?

3

She opens a smaller box insides in the big box

25

She makes another helicopter

4

She removes everything out of the smaller box

26

She looks for additional instructions and finds the website

5

She is amazed by the LEDs

27

She grabs her laptop

6

She asks: Why do they have a light when it has no function? The light doesn't do anything?

28

She goes online to the Quirkbot website

7

She opens up a plastic package with connectors

29

She creates account on the Quirkbot platform

8

She tried to connect a LED to the Quirkbot

30

She grabs the box and looks for instructions

9

She connects straws with the star connector

31

She adds a sequence on the platform

10

She looks at the pictures on the box

32

She sets some numbers in the sequence

11

She compares the quirkbot with the picture on the box 33

She plugs in the Quirkbot using the usb cable

12

She looks at the pictures inside the box and copies the images

34

She looks for ‘Quirkbot test’ on Google

13

She asks: How do you put in the led?

35

She finds some code on Github

14

She say’s: There have to be some instructions to help me out!

36

She sighs deeply

15

She compares the star connector with the quirkbot

37

She says “I don’t know, I wanted to look up some ready made codes but I don’t know. It’s blinking, it’s red, I like it.”

16

She adds the backpack to the quirkbot

38

She turns the Quirkbot on and the Quirkbot starts to blink blue

17

She connects the rotor to the quirkbot

39

She says: Now I am connected, but It didn’t say anything like ‘ Welcome’ or anything. Should there be a instruction with it?

18

She connects the star connector to the rotor and tries to bold it with a screw

40

She asks a friend what to do.

19

She says: I need a screwdriver! A really tiny one!

41

She searches for ‘Quirkbot for dummies’ on Google

20

She had no screwdriver so we handed her a stanley knife and she screwed it in with the tip of the knife.

42

She finds a tuturial on instructables.com

21

She asked: Should the helicopter thingy be really tidily screwed or slightly loosened up?

43

She looks through the instructions

22

She adds a LED to the quirkbot, it sticks out. “The sticks should go inside somewhere?”

44

She starts building the strawbies according to the tutorial

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APPENDIX D: ‘Successful Branding Process’ model

Brand Assessment: How is the brand perceived today?

Brand Promise: What will define your brand?

• Kids go crazy about it, but it’s questionable how involved they are with the Quirkbot.

• Without instructions, building a decent Quirkbot is difficult.

• Organisational structure is not clear.

• Learning is not an integral part of the experience. It is not clear what you learn

• Kids go crazy about it, but it’s questionable how involved they are with the Quirkbot.

• Without instructions, building a decent Quirkbot is difficult.

• Organisational structure is not clear.

• Learning is not an integral part of the experience. It is not clear what you learn

Brand Strategy: How will you manage and position the brand?

• A creative testing lab to engage users, get feedback and improve the designs • Give users a sense of accomplishment • Facilitate growth and innovation within the product line

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APPENDIX E: ‘Successful Branding Process’ model

Anatomy Of The Branding Position by Pierre Hérme HERITAGE Before

Now

Kickstarter + earlier product created

Product does not work well without assistance in both construction and software

Learning kids to code

Competitors are able to give better experience to educate and learn

Open source

Not embracing business opportunities

The maker movement

DOMAIN Before

Now

Kids 8-13

Create customer segments

Parents that want children to learn

8+ Kids who want to have fun

Maker community

Adults who want to learn code

VALUE Before

Now

Making coding fun

Making coding fun

Learning by doing

Learning by doing An engaging and supportive community

ASSETS Before

Now

Ride on trend with coding + maker era

Creating and collecting unique designs

Personal attention for kids

Quality

Safe and fun

User can do it themselves in a proper way Easy to learn/understand, hard to master

PERSONALITY Before

Now

A platform for makers and coders

Build, code, play, fun to display

Quirky and contemporary

Quirky

Heavily influenced by Strawbees

Strawbees as one supplier

Unconsciously learning code

First steps into coding

REFLECTION Before

Now

Kids enjoy messing around with Quirkbot

Users engaged by the designs

Children and parents feel part of the revolution

Revolution flows into education Multiple designs, one Quirkbot Quirkbot becomes expandable through both licensing and product extensions

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APPENDIX F: 20 of the most popular toys

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APPENDIX G: Narrative Suggestions

SPACE Benefit: Endless possibilities for storytelling. Space sparks mystery and creativity, and represents a more or less gender-neutral offering.

Story/package: The 5 pieces could be Earth, Moon, Sun, stairchain e.g. Big Dipper and an Alien or Robot such an Alien.

1.

First package is Earth - Make it rotate!

2.

Moon, night-glowing - Build together with Earth and it rotate around it.

3.

Sun - Combine with leds and make it shine!

4. Robot - Make it walk or anything. This robot habiting the Earth is called XX. Add sympathy elements to the character to resemble Wall-e or Ex Machina.

5.

Alien - Attacks the Earth. Robot makes a counter-attack. How can it save the Earth? (Alternatively, build yet another planet that is on the course to hit the Earth. Use sensors for the attacking planet or missile “weapons” for the robot to protect the Earth)

FARM Benefit: Domestic theme will appeal to parents since it teaches kids values that are home- and work related (LEGO friends), and puts focus on the origins of food - a growing interest on the market.

Story/package: 1.

Dog - the King of the farm. Make the tail move. Sympathy and Easiness.

2.

Tractor - Make it move! It’s time to harvest!

3.

Sheep - Make it move and add a sensor for King to follow the sheep.

4. House - Add lights. Build a similar mini-house for the King doggie (sympathy). Add lights on the tractor as well. The harvesting has not gone as planned. It’s getting late and the farmer has to work nighttime (realism)!

5.

Wolf - It’s attacking the sheep when farmer is sleeping or away working. Wolf has night-vision. Make a night-glowing wolf! Finally, the dog and wolf become best friends (sympathy ending).

JUNGLE Benefit: Exotic values sell well.

Story/package: 1.

Tree - How high tree can you build?

2.

Monkey - Make it play and climb the tree. It wants to see the sun!

3.

Fluorescent frog, glows in the dark - Make it jump!

4. Parrot - Make it talk / imitate voices, or make it fly!

5.

Dinosaur (or tractor) - Attacks the jungle! How can monkey, frog and parrot protect the jungle?

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APPENDIX H: 12 Month Implementation Plan

12 Month Implementation Plan INTERNAL Project Management

1

2

3

4

5

6

7

8

9

10

11

12

11

12

♦

Design Development

★¹ ★² ★³

Visual Communication

Product Content Creation

Graphic Content Creation

EXTERNAL

1

2

Sales

Purchasing/Sourcing

3

4

5

6

7

8

9

10

▲

Communicator

Brand Ambassador

♥

MILESTONES

♦

★

Project plan ready, key resources acquired and mobilized Employees Theme/product package completed and ready for market

PARTICIPANTS TASKS

Project Leader

Visual Designer

▲ ♥

Trial period with retailers start Additional promotional activities start

Pushes the project forward, follows up the deliverables in weekly meetings and reports back progress and questions to the steering group Designs the instructions, letters and other visual communication guidelines

Product Designer Creates the unique designs for the characters. Experiments with other material that can be added as part of the packages Copywriter Programmer/Educator

Creates the narratives, and does trend­search to define what characters and themes suit for commercial viable offerings Defines the learning curve

Salesperson Approaches investors and banks to raise capital, sells product to store, explores other channels for sales and collaboration, lobbies programming into the curriculum for Swedish schools Brand Ambassadors Analyzes the market and conduct negotiations with suppliers Communicator

Promotes the brand in strategic locations

39