MARKETING ENVIRONMENT (Midterm Paper in Principles of Marketing)

Divina Gracia, Faye Domingo, Yzabel Marzan, Diana Christine Piczon, Jomari Silao, Lorelyn Mae

Company Background
BAGets Inc. is based in Manila, Philippines, creating eco-ethical bags primarily out of cheese catcha cloth. Cheese cloth is used in a variety of different things; but its traditionally used in the process of making cheese; cheese cloth is made from woven cotton interweaving each other. In the 1960s and 1970s cheese cloth was a very popular fashion choice and now were returning it back to the fashion industry through making bags. BAGets is established not only to provide awareness to people but also to create value and satisfaction through our products. BAGets philosophy stands upon its two bottom lines: People and Planet.

Mission Statement
BAGets, Inc. is established with one goal in mind: To design an entire collection of bags not only to provide our customer value and satisfaction but also to reinforce environment-friendly products. Our mission is to bring the best value, style and quality in every bag we create inspired by the stories it depicts. We are proud to bring a wide range of bags whether their style is preppy, eclectic or anything in between. Our collections make it easy to design fun that they will love.

Objectives
First on our list is to launch information campaign in order to promote environmental awareness towards the society especially now that society is more concern about preserving Mother Earth. Second is to reinforce the use of BAGets products through different distribution channels. And last but not the least, every individual wants their stuff to be stylish and personal; people pride themselves on their individual sense of styleand our collection let them express who they are. All our bags are created to meet customers needs and wants. We offer products that simplify as well as inspire your lifestyle.

Business Portfolio

Tote Bag (Php200-500)

Rucksack (Php300-800)

Drawstrings (Php200-600)

Shoulder Bag (Php300-800)

Sling Bag (Php300-800)

Duffel Bag (Php600-1000)

Clutch (Php400-700)

All photos are from google images

Marketing Environments

Microenvironment factors affecting BAGets Inc. Suppliers Suppliers play an important role in the organizations operation. It is essential to the organization to have an effective partnership relationship management because marketers today treat their suppliers as partners. Suppliers provide the resources needed by the organization to produce goods and services. Catcha suppliers in the Philippines consider supply availability and pricing. Shell Canvas & Upholstery provides high quality cheese catcha cloth and other types of fabrics. Carolinas Lace Shoppe provides product accessories like buttons, zippers, laces, etc. Wiselion International Company Ltd. provides reusable boxes that are used for the packaging of products.

Marketing Intermediaries Marketing intermediaries help our company promote, sell and distribute our products to final customers. One of our intermediaries is SM department stores; introducing BAGets products to retail outlets and establishing branches with them. In addition we plan to introduce and promote our products to the city governments to be able to contribute in their current advocacy lessening the use of plastics. And also we establish our main branch as our main distributor/seller/promoter of our products.

Competitors However BAGets Inc. has many competitors in the Philippines when it comes to selling bags but since it is newly established local company we had considered companies within the direct line of business with us. Public To able to achieve our objectives we have to consider different publics. Banco De Oro to provide funds Billboard / Online / Social Networks / Magazines & Newspaper Advertisements for promotional strategies City Government (No to Plastic Campaign) distribution and promotion Heartstrings Cose Abakada

Customers BAGets customer does not necessarily vary in age. From youngsters to elders, and also from elders to older, BAGets Inc. can capture high consumer attention due to different environment changes arising. We can divide BAGets customers in different categories:

i.

Consumer Market This is the group of consumers from where BAGets Inc. purchases are at the highest level because our target consumer market includes tweens, teens, and young adults. They mostly buy BAGets products for daily use in large numbers and purchasing by individuals is the case of repeat purchase. Environment caring consumer market is a big advantage for the company. Reseller Market Reseller market of BAGets products is large in the Philippine. This is the markets which buys the product from the company and resell it for profit. In the Philippines, department stores are the biggest example of reseller of BAGets; department stores purchases BAGets products from the company and sell it to target markets.

ii.

Macroenvironment factors affecting BAGets Inc. Demographic The company is focusing on the demography of age, gender, location and occupation of the consumers. Both Female and Male consumers are likely to use a BAGets products because it is very suitable for both especially for echo boomers. The BAGets Inc. manufactures bags in a more fashionable way to fulfill the needs and wants of the Generation Y consumers. Our companys target location is in urban areas particularly Metro Manila. On the other hand, the company is not limiting its products from the Generation X consumers.

Economic The economy today is not that stable. Hence, it makes the purchasing power and spending patterns of our target consumer reduced. Consumers are into low price but quality driven products due to their limited budget. BAGets products are fairly priced for the accessibility of the consumers. In addition, promoting the Philippines through these products definitely contribute to the expansion of our countrys economy.

Natural Since our main resource is obtained from natural resources and even recycled materials which are: Cheese Cloth Catcha Scrap Cloth Organic Materials Indigenous Fabrics

Technology Bag industry is affected by technological factors in positive manner since new technologies are being developed. In addition, technology advancement results to a broader manufacturing field like providing customized bags, online selling and promotion. The company is adapting to all of the technologies available; we manufacture products, we communicate and transact with our partners and consumers faster and easier effectively and efficiently.

Political The company performs its usual operations in local market. Bags are not usually affected by the law since there are no major changes happen in law regulations. Apart from that, the copyright protection helps protect the companys trademarks so that it cannot be imitated by other competitors. In addition, there are also government regulations to protect the consumer from being abused and cheated by the company.

Cultural The company is an environment and customer oriented company. These products are introduced to environment lovers and were also immersing our products into the fashionable youth culture in our local industry today.