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PACSAC®Where Function Meets Fashion

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Market Research

Pricing 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.” Del’s Journey [Online]. Available from: http://www.delsjourney.com/close-ups/us/best_worst/best_and_worst_states.htmBundle (2011) “RANKED: America’s 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/Salary

CONCLUSIONS & REFERENCES

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Company Profile

Type of OrganizationSole Trader / Proprietor

Business Aims• Sell products that help people carry items more efficiently

• Introduce new products in the design industry

Type of Production• Tertiary Sector - Retail

• Textile/Accessories Industry (Bags and similar

goods)

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ProductsPacSac’s 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™ Line

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All-in-One BackpackA 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 won’t 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)

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3-Way SatchelThe 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)

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Crystalline LineCrystalline 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 doesn’t 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.)

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EcoSac™ 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.)

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Store 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• Computer

Ideal Layoutcontemporary, but warm and approachable

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Distribution

ManufacturerRetailer

(PacSac Store)

Bought by Consumer

Shipped to Consumer (if bought online)

PACSAC 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.

Channels Methods

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ManagerOversees employees, makes recommendations about the business, and files

progress reports2 SalespeopleMorning / Night ShiftIntroduce customers to the products and make

recommendations

2 CashiersMorning / Night Shift

Oversee purchases

2 TransportersTransport and restock

products weekly

Human Resources Plan

PacSac is solely responsible for retail. Its designs are put into production by a separate manufacturing company.

Alyssa Bao, Owner & Designer

Manager 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

Transporters: $8/hr.

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Promotion

WORD OF MOUTH

FASHION 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 NETWORKS

FASHION SHOWSThe best way to get noticed in the fashion community would be to have my products worn by designers, no matter the

runway.

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Pricing 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.

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Product 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

MO

NEY

TIME

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Finance

Capital(1 year scope,

approx.)MARKETINGWebsite: $100Misc.: $500

STORERent: $6,000Interior Decorating: $1,000Equipment: $2,000Employees: $110,000

MERCHANDISE: $50,000 ($5/bag)_______________________________

TOTAL: $169,600

FinancingPERSONAL FUNDS

BANK LOAN: $50,000

Forecast 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