What Is the Lean Product Development Process by OpenX Senior Product Manager

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Stuart Moncada

My Beginnings

Medellin

What & where I learned

Who signed the checks

What is the role of a product manager?

A product manager’s responsibility is to launch products that customers love!

Things a product manager might have to do

✓ Market research

✓ Competitive research

✓ Create roadmaps

✓ Write user stories

✓ Discuss technical details w/ engineers

✓ Customer interviews

✓ Design wireframes and mockups

✓ Define product KPI

✓ Write marketing copy

✓ Create financial models

✓ Usability studies

✓ A/B testing

✓ Determine pricing

✓ Organize trainings

✓ Lead agile meetings

✓ Tackle technical debt

Lean Product Development Process

Source: “The Lean Product Playbook”, Dan Olsen

Lean Product Development Case Study:

Mobile Pet Grooming Service

15Page:

Proposal Based on Primary & Secondary Research

Conducted 13 interviews with key stakeholders

Pet Owners (9)Enterprise Competitors (PetSmart, Petco)Independent Dog Groomers (2)

MVP product strategy for Mobile Pet Grooming Service (Website + iOS + Android)

Primary Research Interviews

Performed Market & Competitive Research

Market & Industry Research (Industry reports, craigslist)Competitive/Comparable Analysis (DogVacay, Rover)Enterprise Competitor Analysis (PetSmart, Petco)

Secondary Research

16Page:

Opportunity

$4.5B Pet Grooming

85M Pet Owners

Focus on Dog Owners in USA

12% Households38% HouseholdsPros:

• More $ to groom

Cons• Less grooming frequency (~2-5 months)

• Fewer groomers (more difficult)

48% HouseholdsPros:

• More grooming frequency (~ Monthly)

• More groomers

Cons• Lower $ per grooming

17Page:

USA Market Sizing

Initial Overall Market Can Expand

TAM$4.5B

Total Available Market (TAM)• $4.5B US pet grooming market. • Subject to grow as the platform grows and provides better

services for cheaper prices.

Serviceable Available Market (SAM)• $2.2B US dog grooming market

Serviceable Obtainable Market (SOM)• $110M in spend (5% of SAM)* • $22M in revenue (20% take rate)• Bottoms up sanity check, 110K/65M (.16%) pet owner

customers

SAM$2.2B

SOM$110M$22M

* SOM estimated by comparable market capture of Rover/DogVacay of 150M/1.5B)

18Page:

Target Users

Busy Dog Owners Dog Groomer

• High income earners

• Full time job / busy

• Multiple pets

• High importance on cleanliness and grooming frequently

• Value and willing to pay for convenience & luxury

Target Users Will Evolve as Network Expands

• Certified and experienced

• Flawless customer service skills

• Great pet management skills

• Proficient in current styles

19Page:

“My pets are like my children. I want my pets looking flawless and having the latest styles.”

Jennifer Fitzpatrick (Trendy & Pampering Multiple Dog Owner)

Age 33

Education Masters

Location Santa Monica, CA

Occupation Strategy Manager; $135K

Pets Poodle, Yorkie

Grooming Goals• Trendy and stylish looking pet• Like to use accessories to add a finishing touch• Want to try new cuts and styles on pets

Grooming Frustrations• Inconvenience of taking multiple pets to the

groomer• When groomer does not have ideas or

suggestions on cuts and styling

Lifestyle• Single and lives in a one bedroom with her

pets• Will take her dog along when she is at

brunch with friends or shopping• Not too conscious about spending, goes

out to dinner or for drinks 4-5 times a week• Spends money on trendy brands for

clothing and shoes• Travels 4-5 times per year and always has

to figure out what to do with pets

MetricsFrequency of Grooming

Willingness To Pay

Online Purchase

Every 3 weeks

$140 Wash & Cut

3-5 times per week

20Page:

“I am the most highly requested groomer at PetSmart but I am still only making $12 an hour and have little flexibility to create my schedule.”

Karl Townsend (Undervalued Pet Groomer)

Age 32

Education Dog Grooming Certification

Location Pasadena, CA

Occupation Dog Groomer / Uber; $50K

Pets Labrador, Maltese

Grooming Goals• More hours to have higher pay• More flexibility in my schedule• More creative freedom on styling

Grooming Frustrations

• Hourly pay doesn’t reflect value of work performed

• Pets that have poor behavior issues

Lifestyle• Single and lives with a roommate • Not too much disposable income; rarely

goes out to dinner• Spends the most time with pets; either his

own or at work• Uses online sites and apps frequently to

find the best deals

MetricsGrooming Experience

Customer Service

Online Purchase

8 Years

3-5 times per week

Pet Management

21Page:

Current Direct Competition

Brick & Mortar

(PetSmart / PetCo / Mom & Pop)

Cost For Wash & Cut: $60-$120

Strengths

• Physical visible location

• Scale / existing customer base

Weaknesses

• Lack of personalization

• Inconvenience of driving and waiting or returning

Mobile Pet Groomers

Cost For Wash & Cut: $80-$120

Strengths

• Convenience (No driving, dirty car, or waiting for hours)

Weaknesses

• Most expensive

• Not as many options

• User experience is lacking

Self Service

Cost For Wash & Cut: $2-5 for supplies

Strengths

• Cheapest by a long shot

• Don’t have to drive anywhere

Weaknesses

• Cumbersome and requires expertise for advanced services

• Get house dirty

22Page:

Other Competitors to Watch

23Page:

Fido Press Release

Mobile dog grooming service, Fido, launches in Los Angeles

Fido, a mobile pet grooming service that can be thought of as an “Uber for Pet Grooming” has been launched in Los Angeles.

Los Angeles, California’s most populous county will be the first market for the Los Angeles based startup, which was launched six months ago by COMPANY NAME REMOVED. Fido said it has seen strong adoption of its service having delivered hundreds of dog groomings by dozens of mobile dog groomers on its platform.

“Fido’s goal is to be the most personalized, convenient, and friendly dog service for busy pet owners. Pet owners no longer have to round up their pets, throw them in their nice clean cars, and wait hours for their pets to be groomed,” said Stuart Moncada, Fido’s Product Manager. “The challenges of coordinating your schedule with your dog groomers and driving through Los Angeles traffic to get your dog groomed is a real pain point for many Los Angeles pet owners that we can help solve.”

Fido’s mobile app and website allow pet owners to find and book a highly qualified pet groomer in seconds within a few clicks ortaps. “I downloaded the app and was able to browse and book a groomer for my poodle and my yorkie instantly. I no longer have to deal with playing phone tag with my groomer and they come right to my apartment in Santa Monica and groom my pets in their specialized mobile grooming vehicles,” said Jennifer Fitzpatrick, a satisfied returning customer.

The company said its pet groomers go through an intensive 15 point certification process, including requiring a minimum of 3 years of pet grooming experience, background checks, fingerprinting, samples of their work, and an in-person meeting.

Fido has launched with a “Top Dog” grooming package priced at $130 that includes a wash, cut, nail grooming, teeth cleaning, andsome flair in the form of a bow tie, bandanna, or other accessory. The company plans to expand its offerings of services as it grows its network of dog groomers and owners.

24Page:

Website Overview

• Will be the central point for Pet Groomers (Manage account, set schedules, indicate breed/service specialties)

• Pet owners will be able to search for services/pet groomers

• Visitors will learn about company and service offerings

• Visitors will be able to learn about pet grooming with respect to different breeds

• Pet owners and pet groomers will be able to login to view their accounts

Management Center for Groomers & General Information Hub

25Page:

App Overview

• Will be the central point for Pet Owners to search and book services as well as view groomer profiles

• Ability to add pets to your profile

• Initially no Pet Groomer functionality to keep app simple and focused

• Pet Owner account management: service history, payments, profile, help

Focused on Pet Owners

26Page:

Q1 Q2

App

Website

MVP Roadmap

Services & About

Account Management(Create accounts and

profiles)

Search for groomers (No

schedule match)

Book a groomer (Deluxe package)

Process Payment

Search for groomers

(Schedule match)

Pet groomer schedule entry

Book a groomer (Multiple/custom

packages)

Add Pets

Search for groomers (No

schedule match)

Book a groomer (Deluxe package)

Search for groomers

(Schedule match)

Book a groomer (Multiple/custom

packages)

Alpha

Referrals promo code

Account Management(Create accounts and

profiles) Process Payment

27Page:

User Story: Search for Grooming

As a pet owner I want to search for a grooming service so that I can know what my options for pet grooming are

Acceptance Criteria• Can select an existing pet or add a new one to profile

• Can search by current location or enter address

• Can select from a set of packages

• Can search by specific date or browse all nearby groomers

28Page:

Wireframes: Search for Grooming

As a pet owner I want to search for a grooming service so that I can know what my options for pet grooming are

29Page:

User Story: Book a Grooming

As a pet owner I want to book a grooming so that my pet can be clean and neatly groomed

Acceptance Criteria• Can browse profile of groomer throughout process

• Can see availability of groomer through calendar

• A request for service will be sent to the groomer

• Dates, pet, service, and contact info is required

• Additional message is optional

30Page:

Wireframes: Book a Grooming

As a pet owner I want to book a grooming so that my pet can be clean and neatly groomed

31Page:

GTM Strategy

Product & Pricing

• $130 initial deluxe package (wash, cut, nails, teeth, flair)• 20% take rate (60% take rate if company supplied truck)• Add bundles & options with feedback and iterations

• Purchase 2 grooming trucks initially to be shared by groomers• Need to ensure high quality product especially in beginning• As service levels are added can consider other options (allowing groomers

w/ existing mobile pet grooming vans, financing assistance for mobile pet groomers)

• 360 groomings per month capacity (6 groomings per truck per day, 2 trucks)

• 8-10 Groomers• Keep the 168 weekly hours of truck capacity utilized (8AM-8PM * 7 * 2)• ~ 20 hours per groomer per week

32Page:

GTM Strategy

Launch & Awareness

• Launch initially in LA (Downtown, Santa Monica)

• High density pet owners, high income/willingness to pay

• SF 2nd and investigate NY a bit more

• Partner up with high rise luxury buildings to come in and do groomings on select days

• Offer two sided referral system to increase virality

• Company branded grooming vehicles

• SEO, SEM, social, Yelp

• Yelp checkin discounts

• Encourage groomers to post services on craigslist

33Page:

Objectives & Key Metrics

Focus initially on retention to find product market fit

Acquisition >> Activation >> Retention >> Revenue >> Referral

Retention / Usage• Returning customers booking services• Frequency of bookings• Groomer

• Avg hrs per week available• % of avail hrs booked

Activation• % of leads converted (organic vs paid)• % of searches leading to a booking• Avg # of results (groomers) returned per

search

34Page:

Risks & Challenges

Risk/Challenge Actions & Mitigations

Scaling the pet groomer side of the network requires investment in mobile grooming units

• Partner up with banks and manufacturers to offer financing assistance for pet groomers

• Look into lower cost options such as trailers or used equipment

Scaling the pet groomer side of the market requires finding skilled and certified pet groomers

• Recruit from existing certified base initially• Offer certification courses

Bringing down the price point so that the service can enjoy more wide spread adoption

• Offer additional lower cost services such as wash only• Lower barrier to entry for pet groomers to increase demand density

Android fragmentation from differences in screen sizes and OS versions

• Prioritize OS/devices that are most proliferated in target segment (high income, age 30-45)

• Invest in good automated testing from beginning

35Page:

Risks & Challenges - Cont.

Risk/Challenge Actions & Mitigations

Market equilibrium is important so that both sides of the market are satisfied

• Need to closely monitor and control the ratio of groomers to pet owners, ~1:40

• Incentive and de-incentivize sides to reach equilibrium: special offers, raise bar to become pet groomer

Keeping transactions on platform so that value creation can be monetized

• Don’t show contact info until booking scheduled• Provide enough value through platform to both sides so that they both

want to transact• Groomer: Scheduling, payment, dispute resolution• Owner: Scheduling, dispute resolution, grooming history, pictures,

real time updates

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