by Alyssa Bao 1 P AC S AC ® Where Function Meets Fashion

by Alyssa Bao 2 Market Research Pricing Strategies: Ciotti, G. (2013) “10 Pricing Strategies that Can Drastically Improve Sales.” Help Scout [Online]. 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: Bundle (2011) “RANKED: America’s Most Materialistic States.” Business Insider [Online]. Available from: Information to help decide whether to lease or buy property: Faris, S. (2013) “Leasing vs. Owning Commercial Space.” Intuit QuickBooks [Online]. Available from: General Capital Costs for a Retail Store: Dahl, D. (2011) “The Cost of Starting Up a Retail Shop.” Inc. [Online]. Available from: Information on Employee Salary: CONCLUSIONS & REFERENCES

by Alyssa Bao 3 Company Profile Type of Organization Sole 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)

by Alyssa Bao 4 Products PacSac’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

by Alyssa Bao 5 All-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 the the 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)

by Alyssa Bao 6 3-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 Bao 7 Crystalline 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 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.)

by Alyssa Bao 8 EcoSac™ Line EcoSac 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 Bao 9 Store Details Location Los Angeles, CA, USA Hours 10 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 Layout contemporary, but warm and approachable

by Alyssa Bao 10 Distribution Manufacturer Retailer (PacSac Store) Bought by Consumer Shipped to Consumer (if bought online) PACSAC STORE PACSAC WEBSITE All products available in store will also be sold here to broaden my demographic from residents of Southern California to the US. ETSY Etsy 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

by Alyssa Bao 11 Manager Oversees employees, makes recommendations about the business, and files progress reports 2 Salespeople Morning / Night Shift Introduce customers to the products and make recommendations 2 Cashiers Morning / Night Shift Oversee purchases 2 Transporters Transport 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.

by Alyssa Bao 12 Promotion WORD OF MOUTH FASHION BLOGS Working 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 SHOWS The best way to get noticed in the fashion community would be to have my products worn by designers, no matter the runway.

by Alyssa Bao 13 Pricing Strategy Price Anchoring Compared to a $60 leather bag, a $40 bag seems like a bargain. Bundling Consumers like to buy things that match. By placing matching wallets next to bags, they are more likely to buy.

by Alyssa Bao 14 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 MONEY TIME

by Alyssa Bao 15 Finance Capital (1 year scope, approx.) MARKETING Website: $100 Misc.: $500 STORE Rent: $6,000 Interior Decorating: $1,000 Equipment: $2,000 Employees: $110,000 MERCHANDISE: $50,000 ($5/bag) _______________________________ TOTAL: $169,600 Financing PERSONAL FUNDS BANK LOAN: $50,000 Forecast Profit (1 st Year) Product sells for $30 on average First month : 10 units/day Next two months: 15 units/day Next 3 months : 20 units/day Next 3 months : 25 units/day Next 3 months : 30 units/day INCOME: 30[10(31) + 15(61) + 91( )] = $241,500 PROFIT: 241, ,150 = $71,900