Day 2 exercises from Digital Retailer Association for product development. Product line, product mix, product line depth, product mix depth, and more exercises are included, along with product line grid, new product development canvas, etc. This information will help you develop your product line from scratch or from an existing product base

1. #DRA @RolandFrasier
Digtal RetailersAssociation
Digital Retailers Assoc.
Exercises + Slides
Day 2

2. Product Mix + Product Line Terms
Product 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
#DRA @RolandFrasier

3. The Product Line Grid

4. The Product Line Grid

5. 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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6. 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 #1
Cost $____ CR __
Contest #2
Cost $____ CR __
Launch Contest
Cost $____ CR __
Tripwire #1
Cost $____ CR __
Tripwire #2
Cost $____ CR __
Launch Tripwire
Cost $____ CR __
Continuity #1
Cost $____ CR __
Continuity #2
Cost $____ CR __
Launch Continuity
Cost $____ CR __
Product Set #1
Cost $____ CR __
Product Set #2
Cost $____ CR __
Launch Product Set
Cost $____ CR __

7. This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
The Product
Line Grid
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8. The Product Line Grid
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9. omersThe Product Line Grid
Products
Existing Extended New
Markets/Customers
ExistingExtendedNew
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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 new
markets 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?

10. The Product Line Grid
Products
Existing Extended New
Markets/Customers
ExistingExtendedNew
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11. This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
The New
Product Canvas
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12. The New Product Canvas
Problem Solution Unique Value
Proposition
Unfair
Advantage
Customer
SegmentsTop 3 problems Top 3 Benefits
Single, clearcompelling
message states why
you’re different, worth
paying attention to.
Can’t be easily copied
or bought
Target customers
Key Metrics
Key activitiesyou
measure
Channels
Path to customers
Cost Structure
Customer acquisitioncosts
Distributioncosts
Hosting, People, etc.
Revenue Streams
Revenue Model
LTV, Revenue,
Gross Margin
Problem Solution
#DRA @RolandFrasier

13. The New Product Canvas
Problem Solution Unique Value
Proposition
Unfair
Advantage
Customer
SegmentsTop 3 problems Top 3 Benefits
Single, clearcompelling
message states why
you’re different, worth
paying attention to.
Can’t be easily copied
or bought
Target customers
Key Metrics
Key activitiesyou
measure
Channels
Path to customers
Cost Structure
Customer acquisitioncosts
Distributioncosts
Hosting, People, etc.
Revenue Streams
Revenue Model
LTV, Revenue,
Gross Margin
Problem Solution
#DRA @RolandFrasier

14. This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
Product Innovation
Mapping
#DRA @RolandFrasier

15. Disruption = Apply,Mix + Match Different Business Models To Your Industry
• Landlord (Physical/IP)
• Affiliate
• PayAs You Go
• Publisher
• Franchise
• Manufacturer/Sales Rep
• Wholesaler
#DRA @RolandFrasier
• Broker
• Reseller/VAR
• Retailer
• Network Marketing
• All you can eat
• Direct Seller
• Subscription

16. 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

17. Uber Product Innovation Mapping
Business Model
Primary Secondary Tertiary
PricingModels
PrimarySecondaryTertiary
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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
Drivers
Volume (Distance/Miles)
Time of Day Premium

18. SurvivalLife Product Innovation Mapping
Business Model
Primary Secondary Tertiary
PricingModels
PrimarySecondaryTertiary
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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

19. New Product Innovation Mapping
Business Model
Primary Secondary Tertiary
PricingModels
PrimarySecondaryTertiary
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20. This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
Product
Improvement
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21. #DRA @RolandFrasier
Product Iteration Should Never Stop
PSF/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

22. 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

23. This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
Pivots: When Good
Products Go Bad
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24. Product Line Pivots
Zoom-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
#DRA @RolandFrasier
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

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