LAB BAGS
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<strong>LAB</strong> <strong>BAGS</strong><br />
The newest custom-bag<br />
company in the market has<br />
finally arrived!
THE <strong>LAB</strong> <strong>BAGS</strong> TEAM<br />
Allen Caeg<br />
Marvin<br />
Labrador<br />
Jaime<br />
Machuca<br />
Wesley<br />
Uy<br />
2
Company Background<br />
The Lab Bags Company is a luggage<br />
companyaimedtoservecustomized<br />
and specialized bags to customers.<br />
The company was founded by 4<br />
zealous entrepreneurs namely: (1)<br />
Wesley Uy, (2) Allen Caeg, (3) Jaime<br />
Machuca and (4) Marvin Labrador<br />
during the mid-2014. The founders<br />
wanted to incorporate both<br />
creativity and innovation in<br />
producingbagswhichcreatesatotal<br />
different experience to customers.<br />
True to its commitment, the<br />
companywasabletoprovideunique<br />
services to its customers and is still<br />
operating today.<br />
3
WHAT DOES <strong>LAB</strong> <strong>BAGS</strong> HAVE TO OFFER?<br />
Lab Bags mainly offers a unique service wherein<br />
customers are able to customize their own bags<br />
according to their preferences. This allows the<br />
customers to be their own artists and designers of bags.<br />
The overall experience of designing the bag is the value<br />
proposition of the company.<br />
Lab Bags competes in an intense competitive market.<br />
Euromonitor (2014) shows that the current value of the<br />
bag industry continues and will continue to grow in the<br />
next few years. The strong growth can be a cause of the<br />
increasingincomeearnedbyFilipinoswhichboosttheir<br />
purchasingpowerorcanalsobeacauseoftheincreasing<br />
tourist arrivals here in the Philippines. Today, not just<br />
“bag producer” competes in the bag industry but<br />
international apparel producers have already entered<br />
the market such as Nike, Uniqlo and Lacoste. Also<br />
forecastedbyEuromonitoristheabilityofbagproducers<br />
to use e-commerce or Internet retailing will make the<br />
competition tougher. It is therefore important for Lab<br />
Bags to continue to innovate and attract customers not<br />
just for short-term but for long-term as well.<br />
4
MISSION AND VISION<br />
The Mission of The Lab Bags Company is to<br />
promote the artisans and designers living<br />
inside the customers by creating their own<br />
choice of bag.<br />
The vision of The Lab Bags Company is to be the<br />
premiere provider of completely customizable<br />
bags through innovative technology and<br />
services that the public trusts and values.<br />
5
COMPETITOR REVIEW<br />
1<br />
2<br />
Jansport Bags<br />
The online website of Jansport has certain features<br />
that are convenient for customers. For one, Jansport<br />
already laid out the most important feature at the top<br />
of their website page. Jansport already include: (1)<br />
Best Sellers, (2) New Items, (3) Everyday Bags, (4)<br />
Outdoor Bags and (5) Digital Bags. Jansport already<br />
categorize their bags in a convenient way such that<br />
customers already know where to choose from. For<br />
instance, if the customers want to know the new<br />
products Jansport has created, they can freely click the<br />
New Items tab. If the customers want to look at bags<br />
designed for digital devices, they may click the Digital<br />
Bags item. The categories that Jansport has created<br />
already provides an easy access to their products.<br />
Hawk<br />
As of today, the website of Hawk is still under<br />
construction. However, an alternative website for<br />
Hawk bags are from Zalora. The website of Zalora<br />
for Hawks are also magnificent. They did not<br />
categorize the bags the same as Jansport but they<br />
still categorize it effectively. The customers can<br />
sort the bags through: (1) Popularity, (2) Lowest or<br />
Highest Price, (3) Latest Arrival and (4) Discount.<br />
All of these categories are helpful in deciding a<br />
particular bag.<br />
4
COMPARATIVE CHARTS<br />
5
PRESENT ELEMENTS IN<br />
Value Proposition<br />
For the business model to be successful, the founders would provide a website that<br />
is very simple to the point that first time users of the website would be able to<br />
fully utilize it without any helps or tutorials. Most people does not want to have<br />
the same bag with someone and makes it awkward to them seeing someone has<br />
the same type of bag, with the product and service that we offer, you would not<br />
need to worry about that awkwardness anymore. Customers would be able to<br />
customize the bags that they would purchase so that their would not be of similar<br />
bags out there with someone else. As for the target market, the focus would be to<br />
students since they are the ones who would want to buy backpacks and at the<br />
same time be able to customize them. Backpacks are mostly being used by<br />
students because of the convenience that it brings with wide and a lot of<br />
compartments inside the bag. When traveling in long distance, using backpacks is<br />
the most comfortable compared to all other bags because it has two straps to put<br />
onto your shoulders. On the other hand, different types of bag like athletic and<br />
duffel bags are hard to carry because it only consist of one strap which would be<br />
Revenue Model<br />
All the products that would be offered would be posted online on its website.<br />
Starting your own business online would be the wisest thing to do for start up<br />
business since you would not have to pay rent monthly. With the current<br />
generation, the product/service that is being offered would be more convenient if<br />
it was posted online. Accessing the website would be more convenient because<br />
they can easily customize the bag over the net and be able to compare what they<br />
have done.<br />
Market Opportunity<br />
There has been a wide variety of backpacks that are being sold in the market but<br />
there is not much sellers that is offering customization of the bags. Customers<br />
can play around and use their creativity in selecting the design of their bags. For<br />
example, Nike ID is one of the biggest customization of products but mostly it<br />
focus on shoes. Many customers wanted something that is unique while at the<br />
same time has the benefits of designing it on their own.<br />
4
BUSINESS MODEL<br />
Competitive Environment<br />
The current market of selling bags is already saturated but customization of bags is being<br />
done by few brands. Penetrating the market would be hard because you need to advertise<br />
your products so that people would know the brand do exist. Advertising would cost a lot<br />
of money in any type, as a startup business it would be hard to provide some cash for a<br />
very effective type of advertisements.<br />
Competitive Advantage<br />
The brand does offer a lot of customization so that it would be able to appeal customers<br />
to buy products from the brand. With the current market, people does not know much<br />
about customization of the bags because it is not advertised much. For <strong>LAB</strong> <strong>BAGS</strong>, the<br />
brand would change that perspective because the founders have provided a website that<br />
is easily accessed by the market to be able to create a bag that they are longing to have or<br />
something that they would not be able to find in a market.<br />
Market Strategy<br />
For the brand to be able to grow, the varieties of the bags should be expanded like<br />
offering customers an option to customize athletic bags and many other more. The startup<br />
of the business is to buy finalized bags from a 3rd party but if there is really a potential<br />
then creating their own bags would be an option. Another expansion would be to have its<br />
own physical store. Having a physical store would cost a lot of money because you have to<br />
pay so much for fees but if they brand really gets popular then having an own store is a<br />
good option.<br />
Organizational Department<br />
Creating the first batch of the bags with customization would be hard since there would<br />
be no knowledge of how this is done effectively, but as time goes on new ways would be<br />
discovered on how to be effective on finishing the jobs.<br />
5
OPERATIONS<br />
Customers would be able to customize the bags on the<br />
<strong>LAB</strong> <strong>BAGS</strong>’ website after they are finish customizing the<br />
bags, the website will show the amount of money they<br />
should pay for the finished products. After they have<br />
decided to purchase the product, they can choose what<br />
the payment options they would choose. The options<br />
would be to use Paypal for the convenience of<br />
purchasingtheproduct.Secondoptionistomakeabank<br />
deposit. For the last option, customers can choose to<br />
purchasebyGCashorbySmartMoneyonwhichthemost<br />
convenient payment method would be for them. After<br />
payment is received, then the work would start.<br />
Purchasing the bag would be the first option then the<br />
paints that is needed for the customization. After<br />
purchase of equipments is done, the artist would<br />
proceed with the customization and after the work is<br />
done it would be shipped or delivered with what the<br />
preference the customer has chosen.<br />
4
SWOT<br />
Strengths<br />
-Customization of bags<br />
-Easily accessible by customers over the<br />
internet<br />
-Delivered right into your doorstep<br />
Weaknesses<br />
-Needs advertisements to be known<br />
-People needs assurance<br />
-High customization price<br />
Opportunities<br />
-Physical Stores<br />
-Creation of the brand’s own bags<br />
Threats<br />
-Security<br />
5
4PS<br />
1<br />
2<br />
3<br />
4<br />
Product - Customization of bags<br />
Price - Depends on the bag that<br />
would be customize and the paint<br />
job<br />
People - Let customers use their<br />
creativity to the fullest<br />
Promotion - Advertising(Take<br />
advantage of free<br />
advertisements on social media)<br />
4
MARKETING PLAN<br />
With the current generations, there are<br />
millions of users of the internet and the<br />
numbers aren't not stopping there. <strong>LAB</strong> <strong>BAGS</strong><br />
can take advantage of it because many are<br />
able to access of the internet. Sharing the<br />
website on social media would be the most<br />
effective way for the brand because it would<br />
also receive some feedbacks from customers<br />
so that future customers would receive<br />
assurance of the legitimacy of the brand.<br />
Currently, most of the users of the internet<br />
are students and what we are targeting are<br />
students which directly correlate with each<br />
other.<br />
5
4<br />
WEBSITE
PRODUCTS<br />
5
<strong>LAB</strong> <strong>BAGS</strong> MAGAZINE<br />
ECOMMER<br />
AUGUST 2014<br />
Bibliography: Euromonitor International. 2014. Bags<br />
and Luggage in the Philippines.