LAB BAGS

iamwesleyuy

LAB BAGS

The newest custom-bag

company in the market has

finally arrived!


THE LAB BAGS TEAM

Allen Caeg

Marvin

Labrador

Jaime

Machuca

Wesley

Uy

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Company Background

The Lab Bags Company is a luggage

companyaimedtoservecustomized

and specialized bags to customers.

The company was founded by 4

zealous entrepreneurs namely: (1)

Wesley Uy, (2) Allen Caeg, (3) Jaime

Machuca and (4) Marvin Labrador

during the mid-2014. The founders

wanted to incorporate both

creativity and innovation in

producingbagswhichcreatesatotal

different experience to customers.

True to its commitment, the

companywasabletoprovideunique

services to its customers and is still

operating today.

3


WHAT DOES LAB BAGS HAVE TO OFFER?

Lab Bags mainly offers a unique service wherein

customers are able to customize their own bags

according to their preferences. This allows the

customers to be their own artists and designers of bags.

The overall experience of designing the bag is the value

proposition of the company.

Lab Bags competes in an intense competitive market.

Euromonitor (2014) shows that the current value of the

bag industry continues and will continue to grow in the

next few years. The strong growth can be a cause of the

increasingincomeearnedbyFilipinoswhichboosttheir

purchasingpowerorcanalsobeacauseoftheincreasing

tourist arrivals here in the Philippines. Today, not just

“bag producer” competes in the bag industry but

international apparel producers have already entered

the market such as Nike, Uniqlo and Lacoste. Also

forecastedbyEuromonitoristheabilityofbagproducers

to use e-commerce or Internet retailing will make the

competition tougher. It is therefore important for Lab

Bags to continue to innovate and attract customers not

just for short-term but for long-term as well.

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MISSION AND VISION

The Mission of The Lab Bags Company is to

promote the artisans and designers living

inside the customers by creating their own

choice of bag.

The vision of The Lab Bags Company is to be the

premiere provider of completely customizable

bags through innovative technology and

services that the public trusts and values.

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COMPETITOR REVIEW

1

2

Jansport Bags

The online website of Jansport has certain features

that are convenient for customers. For one, Jansport

already laid out the most important feature at the top

of their website page. Jansport already include: (1)

Best Sellers, (2) New Items, (3) Everyday Bags, (4)

Outdoor Bags and (5) Digital Bags. Jansport already

categorize their bags in a convenient way such that

customers already know where to choose from. For

instance, if the customers want to know the new

products Jansport has created, they can freely click the

New Items tab. If the customers want to look at bags

designed for digital devices, they may click the Digital

Bags item. The categories that Jansport has created

already provides an easy access to their products.

Hawk

As of today, the website of Hawk is still under

construction. However, an alternative website for

Hawk bags are from Zalora. The website of Zalora

for Hawks are also magnificent. They did not

categorize the bags the same as Jansport but they

still categorize it effectively. The customers can

sort the bags through: (1) Popularity, (2) Lowest or

Highest Price, (3) Latest Arrival and (4) Discount.

All of these categories are helpful in deciding a

particular bag.

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COMPARATIVE CHARTS

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PRESENT ELEMENTS IN

Value Proposition

For the business model to be successful, the founders would provide a website that

is very simple to the point that first time users of the website would be able to

fully utilize it without any helps or tutorials. Most people does not want to have

the same bag with someone and makes it awkward to them seeing someone has

the same type of bag, with the product and service that we offer, you would not

need to worry about that awkwardness anymore. Customers would be able to

customize the bags that they would purchase so that their would not be of similar

bags out there with someone else. As for the target market, the focus would be to

students since they are the ones who would want to buy backpacks and at the

same time be able to customize them. Backpacks are mostly being used by

students because of the convenience that it brings with wide and a lot of

compartments inside the bag. When traveling in long distance, using backpacks is

the most comfortable compared to all other bags because it has two straps to put

onto your shoulders. On the other hand, different types of bag like athletic and

duffel bags are hard to carry because it only consist of one strap which would be

Revenue Model

All the products that would be offered would be posted online on its website.

Starting your own business online would be the wisest thing to do for start up

business since you would not have to pay rent monthly. With the current

generation, the product/service that is being offered would be more convenient if

it was posted online. Accessing the website would be more convenient because

they can easily customize the bag over the net and be able to compare what they

have done.

Market Opportunity

There has been a wide variety of backpacks that are being sold in the market but

there is not much sellers that is offering customization of the bags. Customers

can play around and use their creativity in selecting the design of their bags. For

example, Nike ID is one of the biggest customization of products but mostly it

focus on shoes. Many customers wanted something that is unique while at the

same time has the benefits of designing it on their own.

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BUSINESS MODEL

Competitive Environment

The current market of selling bags is already saturated but customization of bags is being

done by few brands. Penetrating the market would be hard because you need to advertise

your products so that people would know the brand do exist. Advertising would cost a lot

of money in any type, as a startup business it would be hard to provide some cash for a

very effective type of advertisements.

Competitive Advantage

The brand does offer a lot of customization so that it would be able to appeal customers

to buy products from the brand. With the current market, people does not know much

about customization of the bags because it is not advertised much. For LAB BAGS, the

brand would change that perspective because the founders have provided a website that

is easily accessed by the market to be able to create a bag that they are longing to have or

something that they would not be able to find in a market.

Market Strategy

For the brand to be able to grow, the varieties of the bags should be expanded like

offering customers an option to customize athletic bags and many other more. The startup

of the business is to buy finalized bags from a 3rd party but if there is really a potential

then creating their own bags would be an option. Another expansion would be to have its

own physical store. Having a physical store would cost a lot of money because you have to

pay so much for fees but if they brand really gets popular then having an own store is a

good option.

Organizational Department

Creating the first batch of the bags with customization would be hard since there would

be no knowledge of how this is done effectively, but as time goes on new ways would be

discovered on how to be effective on finishing the jobs.

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OPERATIONS

Customers would be able to customize the bags on the

LAB BAGS’ website after they are finish customizing the

bags, the website will show the amount of money they

should pay for the finished products. After they have

decided to purchase the product, they can choose what

the payment options they would choose. The options

would be to use Paypal for the convenience of

purchasingtheproduct.Secondoptionistomakeabank

deposit. For the last option, customers can choose to

purchasebyGCashorbySmartMoneyonwhichthemost

convenient payment method would be for them. After

payment is received, then the work would start.

Purchasing the bag would be the first option then the

paints that is needed for the customization. After

purchase of equipments is done, the artist would

proceed with the customization and after the work is

done it would be shipped or delivered with what the

preference the customer has chosen.

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SWOT

Strengths

-Customization of bags

-Easily accessible by customers over the

internet

-Delivered right into your doorstep

Weaknesses

-Needs advertisements to be known

-People needs assurance

-High customization price

Opportunities

-Physical Stores

-Creation of the brand’s own bags

Threats

-Security

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4PS

1

2

3

4

Product - Customization of bags

Price - Depends on the bag that

would be customize and the paint

job

People - Let customers use their

creativity to the fullest

Promotion - Advertising(Take

advantage of free

advertisements on social media)

Support to Nation Building

LAB BAGS would be able to support local products because

most of the materials that we would use would be bought

from local markets aside from the Jansport bags. It would also

be able to change the culture of local people as the products

is really unique from the products that are being sold in the

market. If the brand would be successful, there would be a lot

of demand for our products which would be of great help to

the economy because more jobs would be demanded and the

purchase of equipments that is locally bought would be of

higher number too.

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MARKETING PLAN

With the current generations, there are

millions of users of the internet and the

numbers aren't not stopping there. LAB BAGS

can take advantage of it because many are

able to access of the internet. Sharing the

website on social media would be the most

effective way for the brand because it would

also receive some feedbacks from customers

so that future customers would receive

assurance of the legitimacy of the brand.

Currently, most of the users of the internet

are students and what we are targeting are

students which directly correlate with each

other.

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WEBSITE


PRODUCTS

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LAB BAGS MAGAZINE

ECOMMER

AUGUST 2014

Bibliography: Euromonitor International. 2014. Bags

and Luggage in the Philippines.

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