Product Line And Product Development Exercises

#DRA @RolandFrasier

Digtal Retailers Association

Digital Retailers Assoc. Exercises + SlidesDay 2

Product Mix + Product Line TermsProduct Mix Width: # of different product lines carried by the company

Product Mix Length: # of items in the product line

Product Mix Depth: # of versions of each product offered in the line

Product Mix Consistency: How closely related are the different product lines

Product Line: Closely related group of products

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The Product Line Grid

This is a sample of bold text on a full color slide. This is good for quotes, stats, dividers, etc.

The Product Funnel Grid

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The Product Funnel Grid

Product | Test 1 | Test 2 | Winner

Lead Gen Device$2 Cost/$10 Value

Contest Product $500

Membership Site, Assoc., Buyer’s Club

Core Products + Profit Maximizers

Contest #1Cost $____ CR __

Contest #2Cost $____ CR __

Launch ContestCost $____ CR __

Tripwire #1Cost $____ CR __

Tripwire #2Cost $____ CR __

Launch TripwireCost $____ CR __

Continuity #1Cost $____ CR __

Continuity #2Cost $____ CR __

Launch ContinuityCost $____ CR __

Product Set #1Cost $____ CR __

Product Set #2Cost $____ CR __

Launch Product SetCost $____ CR __



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omersThe Product Line GridProducts

Existing Extended New

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What are your current product(s) that you sell in

your existing markets?

Can you add or delete features or benefits to

change or modify existing products to sell to your

current market?

What new products can you create to sell to your existing customers?

In what additional channels can you sell your existing products that you aren’t selling them now?

What customers or markets in additional channels

would buy products with different features/benefits?

In what additional channels could you sell

new products?

In what completely newmarkets can you sell your existing products to new

customers?

What completely new markets would be a fit for

products with new features and benefits?

What new products can you sell in completely new

markets to new customers?

The Product Line GridProducts

Existing Extended New

Mar

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tom

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Exis

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New

#DRA @RolandFrasier


The New Product Canvas

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The New Product CanvasProblem Solution Unique Value

PropositionUnfair Advantage

Customer SegmentsTop 3 problems Top 3 Benefits

Single, clear compelling message states why you’re different, worth paying attention to.

Can’t be easily copied or bought

Target customers

Key MetricsKey activities you measure

ChannelsPath to customers

Cost StructureCustomer acquisition costsDistribution costsHosting, People, etc.

Revenue StreamsRevenue ModelLTV, Revenue, Gross Margin

Problem Solution#DRA @RolandFrasier


Product Innovation Mapping

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Disruption = Apply, Mix + Match Different Business Models To Your Industry

• Landlord (Physical/IP)

• Affiliate

• Pay As You Go

• Publisher

• Franchise

• Manufacturer/Sales Rep

• Wholesaler

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• Broker

• Reseller/VAR

• Retailer

• Network Marketing

• All you can eat

• Direct Seller

• Subscription

Experiment With Different Pricing Models

• Free (Ad Supported)

• Freemium

• Value Based

• Tiered/Volume

• Feature + Add-Ons

• Low Price

• MSRP/MAP

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• Free + Paid Support

• “Cost +” or “x Cost”

• Portfolio/Suite

• Commodity

• Razor + Blade

• Premium/Luxury

• Discount

Uber Product Innovation MappingBusiness Model

Primary Secondary Tertiary

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Broker: Connect Drivers With Passengers

Volume: Charge 15%-30% Brokerage Fee

Landlord/Tenant: Drivers Rent Car Space

Tiered based on type of car requested

Affiliate

Referral Fees For New Customers

Referral Fee For New DriversVolume (Distance/Miles)

Time of Day Premium

SurvivalLife Product Innovation MappingBusiness Model


Pric

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#DRA @RolandFrasier

Direct Seller: Gadgets People Want

Subscription: FPA Membership Publisher

Low Price: Tripwire Value Based Free + Ad Supported

Cost + or X Cost: Upsells to additional products

Tiered: Membership Levels

Feature + Add-ons

New Product Innovation MappingBusiness Model


Pric

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Product Improvement

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#DRA @RolandFrasier

Product Iteration Should Never StopPSF/PMF + PFM (People + Fun + Money)

Kaizen “ABI” ALWAYS Be Iterating

If you don’t someone else will be…

It’s why AirBnB isn’t Hilton or Marriott

It’s why Newspapers didn’t start Craigslist

It’s why Blockbuster never saw Netflix coming

Image Source: Ash Maurya

Build > Measure > Learn• Shorten the BML loop with Fast Feedback

• Build MVP First OR Start With Your Existing Product/Service, then Test it.

• Measure Results

• Learn What To Test Next From Data Analysis

• Each Product Iteration should better solve the customer’s problem.

Source: Eric Reis #DRA @RolandFrasier


Pivots: When Good Products Go Bad

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Product Line PivotsZoom-In: Many products become 1 product

Zoom-Out: 1 product becomes many products

Technology: New tech can improve price or performance.

Platform: Switch between house product, affiliate or marketplace

Channel: Change distribution channels but not product

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Value Capture: New rev model

Growth Engine: Move between viral, paid or sticky growth engine

Customer Need: Tweak product to solve more important need

Customer Segment: Same product to different customer

Architecture: High margin, low volume to or from Low Margin, High Margin


Thank you!

Product Line And Product Development Exercises

Business

Transcript of Product Line And Product Development Exercises