Fashion and Technology in one place.

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Contents
Introduction..........................................................................................................................................3
Marketing Objectives..........................................................................................................................4
Financial Objectives...........................................................................................................................5
Enviromental Analysis........................................................................................................................6
SWOT Analysis...................................................................................................................................6
Market Segmentation.........................................................................................................................9
Marketing Mix....................................................................................................................................11
4p’s of marketing...........................................................................................................................11
Targeting Segment...........................................................................................................................12
Conclusion.........................................................................................................................................13
References........................................................................................................................................14

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Executive summary
This is the report for the product which will be released from our company Visionary
Futures. Which will be “The Smart Backpack” is our product and explained everything in
detailed in this report.
People search for methods to make their lives more easier and tend to buy more things
which are related to technology so as a team we thought of reproducing one of the first
things in the world which made humans lives a lot easier which is a backpack. All its
possibilities and price ranges are mentioned in this report, and we are pleased to give you a
brief description on how the product launch is happening for the product and a full
description of the whole product itself.

Introduction
People like to make their lives easier, so one of the fist things in this world which made
peoples lives easier is a bag, then this bag became a back pack with time. Technology is a
huge step which man kind kept and as people we search for tech supported items in this
world, we thought of using that technology into a bag, eventually it becomes a “SMART
BACKPACK”. This product is useful for travelers, daily workers and for any person who uses a
smart phone.
This special backpack can be purchased in different sizes which the customer is getting the
product for him/her to match with. Customers can buy the product in customized forms for
example to choose with variety of colors and can get it customized with accessories of the
number of options it has, a small difference of the price will occur the customers. The main
advantage for the customers are that this product is available in many designs such as
backpack, side bag, travel bag and in gender wise too.
When it comes to the size it can get form sizes from children to adult/or travelers. The
prices for this product are affordable for people and if classing this product it’s price can be
low or high on the number of options the specific bag has. The full choice is given to the
customers in which kind of a bag they want, the material can be changed too.
This Smart back includes.

 GPS Navigating system

 Phone Charging
 LED Lights inside
 Bluetooth Music
 WIFI Spy Camera
 Headphone Jack

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Marketing Objectives
Creating a brand value
As Visionary Futures is an existing firm. It has already built a good name in the
market which produces innovative and unique fashionable accessories. We
hope our next product “The Smart Backpack” will be an hit in the market
because there are no any other smart backpack producers in the market which
is a value reputation for the organization brand. As this product is a premium
product, we hope to deliver within Colombo and once demand and for the
product increases we then hope to supply the Smart bag island wide which
would in return help build brand value.
Growing digital presence
Visionary Futures already has an active digital media presence. We hope to
grow the digital media presence by uploading review videos and posting
attractive posters which can fascinate the customers also using the 4e’s
concept of digital marketing which tends the peoples to buy the product and
also to share the experience of the product.
Unique Selling Point (USP)
Because The Smart Backpack does not exist elsewhere else in the market, the
USP we would be basing the Smart Backpack on would be the attributes
product has to offer. And we make sure to provide fine quality as well as the
fact that this product is not available anywhere else and it makes the
customers excite to buy this product.

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Financial Objectives
Cutting down Costs
Our firm has a constant eye in working hard to minimize costs as it is one of the most
practical methods to improve and maximize profit ratios. To produce our Smart Backpack
we need materials such as power banks imported from china through Alibaba.com as buying
in bulk wholesalers would significantly bring down costs and other materials as bags locally
as Sri lanka is one of the market leaders of high quality garments with the lowest prices thus
corresponding with the objective of maintaining low costs as opposed to importing as many
other costs come along such as tariffs, higher transportation and shipping costs.

Growing Revenue
The objective of any firm would be to grow their revenue thus maximize their profits. We
hope to achieve this is by targeting our products to high school and college students as a
large fraction of them have mobile phones and keep their phones in the bag during class.
Our product would have large scope to make them customers as these students would find
it highly convenient if they could charge their phones during class as some may have not
charged their phones as they have hectic lives where it is normal to have a dead battery in
the morning therefore we would be able to fill this gap in the market and get loyal
customers thus revenue would be constant as we would get repeat purchase.
Moreover, we can give coupons to new customers of 30% to give their friends or family
hence acquire more customers in the process, thus ensuring we get sustained sales in the
future.

Wider Profit Margins

We plan on widening our profit margins by keeping our costs as low as possible by
purchasing from the cheapest supplier such as power banks from Alibaba and bags from
local garment firms thus achieving the goals of higher profit margins
In addition we can charge premium prices from our customers which are mainly students
and this is practical because when young adults make their mind to purchase something it is
quite easy to receive the funds as parents specially from high income family would not mind
spending on their children thus the demand would be more inelastic thus achieving the goal
of higher profit margins.

Sales
Our plan on sales is to start off by targeting students as they are easily influenced thus we
can obtain sales from them initially. We plan on selling 100 units in the first month so that’s,
750,000 rupees of revenue and target to achieve 5 million rupees worth of sale by the 2 nd
year of operations, however this is all only projected amounts and can vary according to
changing market conditions.

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Enviromental Analysis
SWOT Analysis

Visionary Futures have made a strong brand name

because of its uniqueness.

The product is a completely new product that never

existed in the market.

Production cost will be not much high because the

gadgets needed to the production is not too expensive.

Because of the gadgets inside the backpack it can be heavier

than other bags.
In order to get through the customers since it’s a new product,
the market researches and advertising can be a big cost.

An opportunity for our company will be to expand from smart

backpacks to other markets such as smart valets, purses
briefcases and etc..
Another opportunity will be selling accessories for our
backpacks suck as powerful adaptors and charging devices so
they can compatible.
Selling more accessories helps to brand recognition

New competitors may arise in a short time period of time

because the product can be easily copied.
The product approach will be slow because people don’t want
to try out new products.

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According to our product, CDSTEP could be applied as the following
Demography
 Mostly Targeted to the School/College students, By supplying our
product into the targeted segments allows our company to focus on the
key factors when entering such markets.
Social
 Product relies on social media and other platforms as it is a way to reach
out customers, like the new generation.
 As years past by new trends are increasing and making the businesses to
focus more into their product or service before releasing it into the
market. So companies always try to satisfy the customer’s needs and
wants to keep up with the trending market or else result in failure.
Technological
 Changes that have contributed to the advancement of the value of both
products and services in the past decades. Introducing our new product
into the Sri Lanka market as a uncommon Backpack is challenging
because if we tend to fail in providing the items to the customer and not
getting a positive feedback then another company might do a similar
product and correct our flaws in order to capture the market sales.
 So by having the latest technology we try to produce the best quality
product and gain more sales in the targeted market section
Economic

 The economy status of the country can make a huge failure in

the market and also economic changes can affect the
customers purchasing behavior.
 Economic factors such as foreign currency fluctuations and interest
rates will affect the customers purchasing behavior.
Foreign currency fluctuation – the U.S dollar being 150 SLR has reduced the buying power
of foreign goods. It so that we can buy materials and gadgets in bulk then the currency
fluctuation does not affect the business.
Interest rates – this is the cost of borrowing money. When interest rates are low, customers
may like to spend more money which encourage the economy also helps the economy.

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  It is also important to know these economic factors in the country
when setting up a product in a market. In Sri Lanka the inflation rate
is 4.67% during August 2020 which is suitable economy to release the
product.

Political
 The political situation in a country can affect the economy, so the
economic environment affects the business performance. This can be
factors like taxes and government spending, which affects the
economy of a country.

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Market Segmentation

The customer base would be anyone who would like to purchase a next
generational backpack. The segmentation used to understand the type of
customers are the age group, income, style, geographical segmentation,
benefit segmentation.
We have identified 3 possible types of customers who would possibly make
use of our product.
Base of Teenagers Employees Travelers
segmentation students
Age 12 to 18 years 19 to 30 years Any age

Income Anyone who can Anyone who can Anyone who can
afford it afford it afford it
Style They would prefer Employees will Travelers will
a trendy looking prefer bags that prefer a bag that
bag. are more decent suites their
looking. preferences
therefore it matter
based on their
opinion.
Geographical We should target Lives in cities Cities/ stores for
students who live travelling
in a wealthy area. equipment’s
(city)
Benefits/ features Teenagers would They would prefer Travelers would
mostly look into the features more mostly look into
the style, than the than the style but how the features
features it that doesn’t mean of the bag would
provides they don’t care support their
about how it looks. travel life and
They would most wouldn’t care
likely prefer a much about the
decent, trendy looks of the bag.
bag.

Ansoff matrix

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According to the ansoff growth matrix for the business to further expand we
should use two main growth strategies, market penetration and product
development to capitalize business.

Existing market New market

Existing Market

PENETRATION PRODUCT DEVELOPMENT

Bring in more sales outlets therefore Bringing in new designs to the bag or even
we can obtain a wider range of adding newer features.
customers.

MARKET DEVELOPMENT DIVERSIFICATION

New market

Different modes of sale such as online Different style for example duffle bags
stores to attract a larger customer base. with the same advanced features

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Marketing Mix
4p’s of marketing

Product-
The product “SMART PACKPACK”, is targeted at a niche market since this
product is not introduced into the market. The product is also known for its
exclusive style, superior creativity, innovative collections, contrasting features
and brightly colored designs.
Place-
Since Visionary Futures does not have a outlet store. For the time being the
product will be available to our consumers through our distributors such as
Branded backpack retailers and also through online platforms such as
Facebook and Instagram.
Promotion-
As the product is a newly launched product into the market, our motive at
Visionary Futures is to provide promotions to our customers in order to build
up trust which will help us boost our sales. And also to give coupons to our
newly launched product “Smart Backpack”
Use the television, websites and social media celebrity endorsement is also a
good promotional tactic for Visionary Futures
We believe that by providing these promotions to the customers we would be
able to increase the sales as well as build a strong customer base.
Visionary Futures are willing to provide a great discounts (exclusive on online
purchases) would gain a greater advantage, which customers would be able to
buy 2 and get 1 free.
Price- The pricing strategies we hope to follow for Smart backpack would be
cost based strategies and price skimming. The final price of the product is set
on by adding the cost of the product and the profit percentage, so this product
will be having premium pricing range as it is a luxury brand. In order to
encourage the customers repeat purchasing we hope to use coupons as a
tactic.

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 Targeting Segment

Targeting and positioning process.

As this product is mainly useful for the people who are using technology in their day today life. It is
mainly targeted to the young generation which represents the “MILLENNIAL GENARATION” which
the consumers will be in age of 18 to 35. This product fall under differentiated target market
because we target a specific type of customers who really find our product useful. We chose this age
category because they have the full right to use technology in their life at a max point other than the
younger generation and have knowledge than the older generation about the technology. As this
product aims most of its features to help customer’s life easier with technology, does not aim a
specific gender. This product is mainly value based product when it comes to positioning because it
can be customized as the customers wants and needs which will cost the them more if anything
more is added to the product. We put a stock product out to the market and also can be customized
if want, and if getting the product customized it will cost the consumer more than the stock product
and it can be color, fabric or features. We income in very fair amount when it comes to the stock
product, but the customized products we get a double of income due to the man power used and
the special accessories used.

Perceptual Mapping

Practical

Gadget type Stylish

Comfort

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Conclusion
Visionary futures believes that our new product The Smart Backpack is going to
be a successful product because currently we have zero competition and a
such worthy product does not exist elsewhere in the Sri Lanka market. with the
help of the tables above we were able to understand the type of customers we
are trying to target and also it helped us understand their preferences and how
we should act accordingly to achieve customer satisfaction. It gave out the
segment teenage students to be the most popular type and that we should
have full focus on that crowd of customers. The ansoff matrix gave us
strategies to further expand in the future and grow our customer base to the
fullest.We believe that customers would be excited to buy this smart backpack,
and visionary futures will contribute towards the success of the Smart
backpack and contribute greatly towards its brand reputation.

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References

McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Homewood, IL:

Irwin.
"SWOT Analysis: Discover New Opportunities, Manage and Eliminate
Threats". www.mindtools.com. 2016. Retrieved 24 February 2018.

Gabriel, Angela. "Single Message May Not Hit All Markets." Phoenix Business
Journal. November 20, 1998.
Read more: https://www.referenceforbusiness.com/small/Mail-Op/Market-
Segmentation.html#ixzz6X204hzid

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