McCarty General Assembly - product management
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Local-r is a shopping app designed to connect consumers with local retailers, enabling them to compete with larger stores by aggregating inventory online. The app targets urban shoppers aged 25-34, aiming to enhance local retail visibility and drive sales while providing customers with convenience and comparable pricing. The document outlines the app's development timeline, market analysis, key metrics, and strategies for capturing a significant market share in local shopping.
McCarty General Assembly - product management
- 1. Local-R Helping businesses and consumers make shopping happen Local-R Created by Justin McCarty
- 2. The Local-R shopping app aims to help bring retail shoppers back to local neighborhoods and community stores by helping local businesses aggregate their inventories online thereby enabling them to compete against big box stores and online shopping in terms of convenience, price, and loyalty
- 3. Table of Contents This presentation will discuss the product management outline for a potential new app, Local-R Product Life Cycle 04 Business Case 05 Market Analysis 06 User Personas 09 Key Metrics 10 Roadmap 11 Minimum Viable Product 12 Storyboards Appendix
- 4. 04 Product Life Cycle Plan/Partner/Build Development Raise initial funding, Recruit key resources Plan initial city/cities launch(es) Develop initial key partnerships (communities/retailers/early adopters) Launch Launch beta in selected communities Receive feedback and tweak for full scale launch Full launch in broader context targeting early adopters Introduction Grow Adoption en mass by convenience/price shoppers Retailers and number of items listed increases exponentially Decision data collection begins in earnest Growth Capture Product becomes the top app for planning local shopping globally Data collection has potential to radically alter the retail industry Maturity Pivot Decline Explore market opportunities to recapture lost market share or explore sale of business
- 5. 05 Business Case: Executive Summary Customers receive the convenience of, and similar pricing to, shopping online or at big box stores while supporting local businesses. In return, Local Businesses receive increased traffic, data analytics, and sales. Objectives • • • Customer Top solution for 25 – 34 year old shoppers in urban locations Own 10% of shopping activity w/i this segment Capture 1% of the gross $ spent while shopping Implementation • • Local Retailer • • • The first priority is to develop a product loved by the target user demographic Spend months 1 – 6 building and iterating a useable product with small test groups Launch in one supportive city or a small group of cities Optimize for the proper market fit Months 6 – 18 grow the number of locations and user penetration, targeting 100K users through month 18 Stakeholders • • • B Investors Advisors Key Partners BUSINESS JUSTIFICATION Local-R has the potential, once adoption reaches a critical mass, to provide highly descriptive information as it relates to consumer choices. This data would encompass the tradeoffs between instant delivery and delayed pickup as well as pricing sensitivities between locations and product substitutions. This data will be relevant for advertisers who will provide revenue streams for suggested substitutions across retailer and product.
- 6. 06 Market Analysis: Blue Ocean Strategy Local-R will largely operate in an unchartered space managing the channel and interaction between consumers and local retailers. Current retail strategy is largely to either attract shoppers with discounted promotions or with a strong review on sites like yelp. What has not been emphasized enough is the availability of both goods on demand as well as specialization from the local business options. • Eliminate the traditional price promotion marketing (flyers/mailers/etc) Eliminate • Reduce importance of selection per retailer as selection per neighborhood becomes more important Raise Reduce Create • Raise the awareness of specialization and expertise available at local retailers • Create on demand certainty for immediate item availability.
- 7. 07 Market Analysis: Sizing Based on conservative estimates, we believe Local-R to be capable of annual revenues in excess of $25,000,000 within 2 years 10% 4% 4% Local-R is targeting the 13.2% of the US population that is aged 25 – 34, and specifically the 33% with college degrees, or ~4.36% of the top 25 US Cities 10% Within 3 Years we plan to retain 10% of the shopping activity of the target market 1% 1% 10% of the target segment’s annual spending related to goods and foods amounts to $2.5+ billion. Capturing just 1% of this figure as revenue amounts to $25+million in revenues
- 8. 08 Market Analysis: Trend Analysis Local-R’s target market segment, the urban living college educated 25 – 34 years, continues to grow in both size and prominence. Importantly, independent retail growth is trending in the same direction 1.5X 250 LocaL-R Target Segment Urban Dwelling College Educated 25 – 34 Years Old Rate independent coffee shops are opening compared to Starbucks Independent bookstores have opened since 2009 1,400+ small grocery and specialty food stores have opened Trend Growth Since2000, the number of college-educated 25 to 34 year-olds has increased twice as fast in the close-in neighborhoods of the nation’s large cities as in the remainder of these metropolitan areas. In the aggregate, in the nation’s largest metro areas, the number of young adults with a four- year degree living in close-in neighborhoods increased 26 percent since 2000. Outside these close-in neighborhoods, the number of young adults with a four-year degree increased only half as fast, about 13 percent.(1) 1) The Young and Restless in a Knowledge Economy (2011)
- 9. 09 User Profiles Local-R’s target segment is growing, increasing its disposable income in the knowledge economy, and is a group of technology early adopters GREG BACKGROUND: • Software Developer • 3.5 years in his neighborhood • Single, lives with roommates DEMOGRAPHICS: • Male/27/$125K annually • Lives in an “up and coming neighborhood” with young professionals, is currently gentrifying, has many local eateries and conveniences VALUES: • Independence, variety of options • Being near friends and common spaces to share time with them JACKIE BACKGROUND: • Attorney • Has lived in city 5 years, local neighborhood 2 years • Engaged and lives with Fiancé DEMOGRAPHICS: • Female/32/$180K annually • Higher residential density and affluent neighborhood, close to public transportation, and closer to down town. VALUES: • Hard work and success • Convenience for a busy lifestyle
- 10. 10 Key Metrics Below is an overview of the metrics used to measure success at each stage in the customer lifecycle: Acquisition, Activation, Referral, Retention, and Revenue A @ R r Beta List Completed Experiences Friend Referrals Second Experiences We plan to offer enticements such as “Free Delivery” for referring more users Maintaining a strong conversion to a second experience may be the most important metric to ensuring sustainability Trip Completion Posting/Sharing Time Between Experiences Measuring the number of trips “Shared” via Facebook and Twitter will help track anticipate future user growth Measuring the frequency of use will provide an important metric for anticipating future revenues Evangelical early interest/adopters help plan future cities for growth The number of Completed Experiences will measure true user engagement and activation Account Creation Feedback Yield Account creation will be Local-R’s metric for measuring new user acquisitions Quality feedback is important to market fitting the product and is a further measure of engagement R Revenues In/ $ Spent per Trip The ratio of aggregate revenues received to the total dollars spent per customer trip will be an important metric for understanding the potential value of Local-R
- 11. 11 Roadmap: Timeline We have developed the roadmap below, establishing our high level goals for the next 18 months: 3Q2014 1Q2014 • • • • Raise initial funding Recruit key resources Plan initial city/cities launch(es) Begin development of MVP DEVELOPMENT 1Q2015 • • • • • • • • • Kickoff launch in initial cities Product fit to feedback Iterate and release 2.0 Activated 5K users Received feedback from 75+% LAUNCH Activated 35K users Revenues > 500K annualized Referrals 15+% Growth into top 25 US cities GROWTH 2Q2014 4Q2014 2Q2015 • • • • • • • • • • • G Complete MVP Develop initial key partnerships (communities/retailers/early adopters) Iterate product through small group user testing Put launch team in place Activated 15K users Revenues > 200K annualized Referrals 10+% Growth into top 10 US cities Grow activated users to 100K Revenues > 1.5mm annualized Growth into top 100 world urban areas GROWTH GOALS Our growth curve is mapped to the growth experienced by Groupon over the first 24 months of operations. Whereas Groupon’s target segment encompasses the entire population within selected cities, our segment is just 4.36% of this number and our goals have been scaled accordingly
- 12. 12 Minimum Viable Product Local-R has opted to create a useable/functioning minimum viable product prior to launch: Feasability With the advent of new development tools and the decreased cost of prototyping, creating a working MVP is reasonable with a limited budget and timeframe Desirability Developing a working MVP will allow Local-R to measure the desirability with real users in selected locations, critical to understanding the right market fitting for the products growth Viability The working MVP will also allow us to capture key metrics that will provide insight into the revenue potential and scalability of Local-R L Lean Methodology Utilizing the selected city site launch plan, along with a working MVP, we will be able to use real feedback to drive the product forward via lean methodology: BUILD MEASURE LEARN REPEAT
- 13. 13 Key Features Feature Sign In/Splash Facebook connect Address book/friend search Trip Time Shopping Cart • Cost Total • Located • Collapsible • Item Add Item Search Keyboard Walk/Deliver Walking • Status Bar • Location • Time to Location • Item Graphic • Item Cost • Map Delivery • Partners Menu • ETA • Feedback • Confirmation Feedback feature Push notification/Deal Push notification/new retailer Denotes feature is prioritized for minimum viable product Type Acquisition Referral Activation Retention
- 14. Justin McCarty http://about.me/jdmccarty http://www.linkedin.com/in/justindmccarty
- 15. A1 Appendix: Storyboarding Welcome to Local-R! Thank you for taking the time to walk through storyboarding with. Put yourself in the mind of "Jackie" who you saw profiled earlier. Work with Jackie to navigate the app and help her tryout shopping local! Splash Screen For the landing page/splash screen we are looking for some open ended thought on the following topics: 1. How do you feel about the name? logo ideas? what would you call us? 2. Is it clear that you can choose one of the three choices across the top bar? List Adder By choosing to "Shop" and use the app, you are directed here to build your mobile shopping cart. Help us think about: 1. The information block, useful? Need more? Need less? 2. What would you do next?
- 16. A2 Appendix: Storyboarding List Adder – Type We will let this one speak for itself. All thoughts are welcome. Secret magic algorithmic search juju in beta. Choose Path BAM! You didn't know this was a choose your own adventure eh? Select "Walk" and head to left side of the next page, pick "Deliver" and we are sending you to the right side of the next page.
- 17. A3 Appendix: Storyboarding Walkable Map Welcome walkers! This is what we had in mind for the mapplication phase. Help us think about: 1. Is that status bar's purpose clear? 2. What are some map suggestions? 3. Styles - Waze vs Google Maps? 4. Where are you going next? Anything we are missing? Cool - head to the next page. . Delivery Partners It’s cool - we all have those days where we rock out in the PJs and like the world brought to our doorstep. Actually, this is a large focus for us getting the instant gratification from local availability along with top notch consumer choice is what we are going for. This page is a little blank. The guys I have in mind are "TaskRabbit" / "postmates" etc. any other thoughts on this screen?
- 18. A4 Appendix: Storyboarding Delivery ETA Attempting to get to the best of Uber/Seamless/Postmates here - too cluttered? What do you need to be seeing more/less of?. Review Us! This is maybe a little bit of a work in progress - any thoughts on feedback schemes you've been using lately? What would you consider adding from your experience today? Thanks for all the hard work and making our product more accessible for users like yourself!