LAB BAGS final

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.
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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.
Financial Projection
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COMPETITOR REVIEW
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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
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2
3
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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.