by alyssa bao 1 p ac s ac ® where function meets fashion
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by Alyssa Bao1
PACSACWhere Function Meets Fashionby Alyssa Bao2 Market ResearchPricing Strategies:Ciotti, G. (2013) 10 Pricing Strategies that Can Drastically Improve Sales. Help Scout [Online]. http://www.helpscout.net/blog/pricing-strategies/ California is shown to be the most populous state, and one of the most materialistic.Leu, D. (2002) The Best and Worst Places in America. Dels Journey [Online]. Available from: http://www.delsjourney.com/close-ups/us/best_worst/best_and_worst_states.htmBundle (2011) RANKED: Americas Most Materialistic States. Business Insider [Online]. Available from: http://www.businessinsider.com/ranked-americas-most-materialistic-states-2011-3
Information to help decide whether to lease or buy property:Faris, S. (2013) Leasing vs. Owning Commercial Space. Intuit QuickBooks [Online]. Available from: http://quickbooks.intuit.com/r/money/leasing-vs-owning-commercial-space/
General Capital Costs for a Retail Store:Dahl, D. (2011) The Cost of Starting Up a Retail Shop. Inc. [Online]. Available from: http://www.inc.com/articles/201108/business-start-up-costs-retail-store.html
Information on Employee Salary: http://www.payscale.com/research/US/Job=Salesperson_%2F_Salesman_%2F_Saleswoman/SalaryCONCLUSIONS & REFERENCESby Alyssa Bao3Company ProfileType of OrganizationSole Trader / ProprietorBusiness Aims Sell products that help people carry items more efficiently Introduce new products in the design industryType of Production Tertiary Sector - Retail Textile/Accessories Industry (Bags and similar goods)by Alyssa Bao4ProductsPacSacs market is aimed for the everyday consumer who is looking for more efficient and more innovative ways to carry their things.
Aside from regular clutches, bags, luggage, wallets, suitcases, utility belts or otherwise, the following are examples of exclusive PacSac products.
All-in-One Backpack 3-Way Satchel Crystalline Line EcoSac Lineby Alyssa Bao5All-in-One Backpack
A truly innovative product for all consumers, but especially travelers. The built in wallet, attached to the backpack by velcro, comes with an adjustable, removable strap and a piece of fabric that snaps on thethe back so the velcro wont scratch against your skin. These features allow it to function as a wallet, purse, cross-body bag or backpack pocket. To discourage thieves from stealing it, two fabric flaps are attached by a buckle cover the wallet when worn with the backpack. ($40 per unit, $60 for leather)by Alyssa Bao63-Way Satchel
The satchel was designed for people who are looking for a cross-body bag that is a little less boring. It can be worn three ways, unleashing the adventurer and risk-taker inside everyone.
($30 per unit, $50 for leather)by Alyssa Bao7Crystalline Line
Crystalline is a line of waterproof, transparent apparel designed with safety in mind.
For example, a thief may be inclined to steal a huge bag, thinking there may be valuables inside it. If the bag is transparent, the thief can see it doesnt hold anything important.
The products are also hi-tech looking, which is a draw for fashionistas.
(Cost per unit ranges from $5-30, depending on product.)
by Alyssa Bao8EcoSac LineEcoSac was designed for people who believe in sustainability for the earth.
Most biodegradable bags are tote bags, but the aim of EcoSac was to design more fashionable handbags and similar accessories that were also green and biodegradable.
(Cost per unit ranges from $2-20, depending on product.)by Alyssa Bao9Store Details
LocationLos Angeles, CA, USA Hours10 AM 8 PM, Mon. Sat.11 AM 7 PM, Sun. Equipment Needed Packing Supplies Tagging Supplies Cash Register Credit Card Reader Security System Cleaning Supplies Furniture / Decorations Basic Office Supplies ComputerIdeal Layoutcontemporary, but warm and approachableby Alyssa Bao10DistributionPACSAC STORE PACSAC WEBSITEAll products available in store will also be sold here to broaden my demographic from residents of Southern California to the US. ETSYEtsy is a website where people can sell their products (usually handmade or vintage) online. It is a trusted source and will introduce new customers with minimal advertising. On Etsy I will sell selected products, with the availability of worldwide shipping.ChannelsMethodsby Alyssa Bao11Human Resources PlanPacSac is solely responsible for retail. Its designs are put into production by a separate manufacturing company.Alyssa Bao, Owner & DesignerManager may select his/her hours but must work 40 hrs./week, $14/hr.
Salespeople: $11/hr., 5 hr. shift
Cashiers: $10/hr., 5 hr. shift
by Alyssa Bao12PromotionWORD OF MOUTHFASHION BLOGSWorking with a fashion blogger, especially one that is influential or has many followers, is more efficient and cheaper than running an online advertisement.ETSY.COM,PERSONAL WEBSITE,& SOCIAL NETWORKSFASHION SHOWSThe best way to get noticed in the fashion community would be to have my products worn by designers, no matter the runway.by Alyssa Bao13Pricing Strategy
Price Anchoring Compared to a $60 leather bag, a $40 bag seems like a bargain.BundlingConsumers like to buy things that match. By placing matching wallets next to bags, they are more likely to buy.by Alyssa Bao14Product Life Cycle Plan DEVELOPMENT Make prototypes Manufacture products Establish store/online presence INTRODUCTION Advertise via social circles and online networks GROWTH Continue advertisements Sell products Tweak products based on reviews MATURITY Continue advertisements, focusing more on word of mouth and social circles Emphasize highest-grossing products Continue to sell products DECLINE Continue to sell products, but not as many units
MONEYTIMEby Alyssa Bao15FinanceCapital(1 year scope, approx.)MARKETINGWebsite: $100Misc.: $500 STORERent: $6,000Interior Decorating: $1,000Equipment: $2,000Employees: $110,000 MERCHANDISE: $50,000 ($5/bag)_______________________________
TOTAL: $169,600FinancingPERSONAL FUNDSBANK LOAN: $50,000Forecast Profit (1st Year)Product sells for $30 on average
First month : 10 units/dayNext two months: 15 units/dayNext 3 months : 20 units/dayNext 3 months : 25 units/dayNext 3 months : 30 units/day
INCOME: 30[10(31) + 15(61) + 91(20+25+30)] = $241,500
PROFIT: 241,500 - 169,150 = $71,900