PM Section 11
May 28th, 2014
Irving C.
Online Shopping Landscape
Sales of physical retail goods and services made on smartphones were $8 billion in the U.S. in 2012
http://mashable.com/2013/01/16/mcommerce-31-billion-2017-forrester/
Global e-commerce sales made via mobile devices are expected to top $638 billion in 2018
http://www.businessinsider.com/us-e-commerce-growth-is-now-far-outpacing-overall-retail-sales-2014-4
43% of Internet shoppers have experienced frustration with inability to find product information online
http://www.pewinternet.org/2008/02/13/part-2-online-shoppers-who-they-are-and-what-they-think/
The Problem
Searching for gifts online is a time consuming and ineffective process because:
Overwhelming amount of products online
Recommendation engines are not precise
No clear channel to access new products
THE SOLUTION
A web product that suggests new products as gift ideas focused on:
Reducing shopping time (product recommendations)
User Experience (product showcase - tiled grid)
Engagement (Offer unique and original products)
Recommendation system will come from various web sources:
Market Analysis
Target Market
Goodly is targeting e-commerce shoppers who are frustrated with gift search process - (apparel, design, media, & lifestyle).
Market value
estimated to be $71 billion as of Q1 2014 (Census 2014)
Market demographics for mobile smartphone shopping?
Online purchasers tend to be younger, better educated, and higher-income than those who have not bought a product over the internet.
http://www.pewinternet.org/2008/02/13/part-1-trends-in-online-shopping/
Competition
Product wireframes
Wireframe part 2
stakeholders
Who?
Business - CEO
Technology - developers
Design - UX/UI designer
Customers - Mobile phone shoppers, Special event shoppers, lifestyle shoppers
STAKEHOLDERS
Why?
Business: Understands the e-commerce market space. Drives product roadmap and customer acquisition strategy.
Technology - Building product suggestion experience: tiled grid showcase and future features.
Design - UX/UI designer needs to understand what are goodly customers need and design an experience that will encourage purchase and user engagement.
Customers - need to aware that their problems and pains are being addressed and converted into new features in future iterations of goodly.
Level of involvement
Business - High (involved in operational decisions and strategy)
Tech - Mid (involved in product roadmap and product decisions)
Design - Mid (works with developers to build a product with grade a experience.
Customers - High (user facing blog with product news, updates, and customer feedback on product)
Market validation
US Population: 330 million
# of US households: 100 million
# of people per household: 3
% of households with internet access: 85%
% of households that shop on the internet: 70%
# of people with internet access who shop online from home: 59,500,000
% use Goodly: 3%
# of people Goodly: 1,785,000
Average gift price: $30
Gift sales on Goodly: $53,550,000
% of transaction: 5%
Total market size: $2,677,500
business model
Key Metrics
Acquire - start off by reaching out to college demographic -
very fashion and lifestyle product conscious.
Spread product by word of mouth and advertise on producthunt.co.
Email campaigns.
Engage
User engagement will be derived from UX and UI design - showcases products elegantly, provides sufficient information, easy to use.
Retain
Email power users of sales for product categories. Notify users of new products that are on goodly. Send out tailored emails with product recommendations based on previous purchases
Grow
The product categories will be limited to: apparel, media, design products at first. As the user base grows, goodly will expand into larger product categories. Concierge model at first and then develop algorithm - (four pins, oki-ni, hype beast, bless this stuff, cool material, canopy, etc)
profit (Back of the napkin analysis)
US Population: 330 million
# of US households: 100 million
# of people per household: 3
% of households with smartphones: 65%
% of smartphone users who shop online: 70%
# of people who shop from mobile phone: 45,500,000
% use Goodly: 3%
# of people Goodly: 1,365,000
Average gift price: $30
Gift sales on Goodly: $40,950,000
% of transaction: 5%
Total Revenue: $2,047,000
Product Development cycle
IDENTIFY PROBLEM
Online gift search process is time consuming and ineffective.
POTENTIAL SOLUTION
Reduce gift searching time by using data from social networks.
Plan
How do customers find the right gifts online?
Amazon recommendation engine - aggregated purchasing data
Shop on brand name online store fronts
Wish lists and deals
Develop
Product would be able to:
- Setup a user profile
- Gather user data from social networks (API)
- Present amazing gift recommendations (Algorithm)
- Buyer check out
Evaluate
Test idea and assumptions by:
Email campaign with value proposition
Success criteria would be:
If 30-40% of people respond, then proceed to order an amazing gift
Launch
Create email campaign:
" Find amazing gifts, now - with Goodly
1) Setup personal goodly profile
2) Receive amazing gift options
3) Order! and get it delivered to you
Just like that. "
CTA email submission
Assess
Funnel analysis:
# of emails received
# of Goodly profiles setup
Feedback to gift selection process
# of people who actually purchase gifts
Iterate or Kill
How satisfied was the user?
How much money was spent on shipping gift?
Would the user use Goodly again?
What did they like/hate about the process?
Product lifecycle
Product Roadmap
Spring 2014
June 2014 - Validate idea with MVP Email campaign
June 2014 - User Profile and Front end (tile grid layout),
July 2014 - Product Suggestion engine
August 2014 - Launch - Collect customer feedback on:
- Product Suggestions (precision, type of product)
- User Profile
- Design and User Experience
---
September 2014 - Integrating more product sources
October 2014 - Wishlists, Social implementation (sharing on networks)
Porters five forces
THREAT OF NEW ENTRANTS
- Barrier of entry is low due to technology (etsy, grand st., svpply)
- Amazon owns most of e-commerce marketshare
- Capital costs are significant for development team
Bargaining power of suppliers
- Large e-commerce sites host sellers for a % of sale, subscription plan
- Extensive supply chains and logistics resources
Bargaining power of buyers
-
Buyers can rely on friend recommendations or shopping local for gifts
- Buyers aren't loyal to a specific brand
- Alternate buying channels available
Threat of substitutes
- Retail shopping malls, brick & mortar stores, boutiques
- Instead of buying it - Share it (Airbnb, RelayRide, TaskRabbit)
- On the product level, there are abundance of substitutes depending many factors.
Trend Analysis
Technology: On-demand services (Uber, Flycleaner, Freshdirect)
Societal/Social Trends: US online shopping is forecasted to grow by 8% annually until 2017 (Mashable)
Trend Analysis (Continued)
Regulatory Trends: Mobile phones are enabling international shopping (Wired)
Socio-Economic Trends: US Smartphone users are prevalent across all demographics.
