- Pages: 8
- Word count: 1767
- Category: Business
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A.)Name and address of the Business
The Group decides that this Business will call its venture as “Blue bag”. It catches the attention of the Consumer and it will easily to remember and recall the brand and the product itself. It is a Bag that is created and made for the consumers’ desires and wants. So in short it is more on customized bag; however it is different from other customized bag because Blue Bag will depend on the materials that are to be used.
It will be located at a commercial space or building located in near Robinsons Cybergate J.P laurel Bajada Davao City. Most entrepreneurs put up their Business in this area because it is near to school, Malls and Subdivision where most of people are students, teenagers and young at heart usually live or make some shopping. Another reason for the place is that, since it is near business establishments there is a great chance that passers-by will see the visibility of the boutique with its product inside and get curious what is the product is all about.
B.)Name and Address
The Entrepreneur of this Venture and Their Addresses are the following
Andrade, Richard B. #127 Narra st. Phase 5 Hillside Subd Davao City
Plasabas, Emanuelle Purok 2 Brgy. San Vicente, Panabo City Davao del Norte
Earl Nicolle SidenoB.O. Obrero, Lacson St. Davao City
Jan Harvy Jugar#46-B Belen Rd. Brgy. Vicente Hizon Davao City
Charles Eduard Xu#1708 Tawi tawi St. West Insular Village, Lanang, Davao City
C.)Nature of the Business
Blue Bag is a partnership type of Business venture it is compose of five owners. . The business operates by producing its own product which consists of materials like cloth, sewing equipments and supplies, and design materials for customization. The operation includes distributing its good to its consumer door-to-door basis and also direct selling from the store receiving orders though person appointment or e-mail
D.)Statement of Financing needs
To start with the business the partners will need P260, 000 worth of capital to cover up all expenses, which means each of us will contribute P52,000 so that we can come up a total of P260,000 for the capital of the Business. The expenses include the least of the space with 2 months deposit and 1 month advance. Other expenses including the electricity, water, telephone and internet bills, office furniture like tables, chairs and air conditioner and equipment like sewing machine and other sewing materials.
E.)Statement of confidentiality report
To keep the confidentiality of the business, the confidential report or the secrets that are only within the owners should be kept only by the five owners and to tell to others only should be kept also in the four corners of the business office. Example of these are the name of the suppliers, the cloth that the business used, the amount of the capital, the income of the business and other important matters that are confidential are should be kept in private place.
Each partner is required to sign a contract of confidentiality, to prevent them from squealing any secrets of the business. The contract will also state the consequences that a partner will face if and when he violates this agreement. The agreed partner shall clearly understand all the statements in the contract.
This business venture of producing and selling bag “Blue bag” not only the name that catches the attention of the consumer but it focuses more on the feature of the bag and its real purpose which is with in the wants and the desire of the consumers. And also the bag has its purpose because it describes the consumer.
The idea of the group is to produce a product that is unique to the other bag that is now on the stores and we make that bag new to the local market and even in the nationwide market. This bag is not similar to other bag that most of the people uses. Even if the bag has its similar type of bag however it is different when it comes to design because we are focusing in the customized bag so that each customer that will buy has a unique design. Example of this is when the customer decides that the design of the image of the bag is female knight he/she will request to the person who’s in charge or the staff for the design that he/she wants. The bag gives different features because of its expediency and care-free feeling. Another big advantage of our product is the usage flexibility.
This refers to the kinds of purposes the bag can be used for. People of today are very practical but are willing to pay the right price for good quality bag. There are a lot of factors in which the bag can be rated at, the quality can be measured through durability, the physicality or design, the color, function flexibility, capacity for luggage, cost or price, and popularity/reputation of the bag. As of now we are unable to manipulate the popularity and reputation of the bag since we only introduced this recently to the public. The fabric we used for the bag is satisfactorily durable, the design is plain and simple but allows the bag for multiple kinds of usage other than school purposes, this bag can also house laptops and heavy books, it can also be used for gym purposes, people nowadays also buy gym bags since the capacity also allots the bag to house multiple luggage at the same time is durable enough to carry the heavy luggage.
III. INDUSTRY ANALYSIS
As “Blue bag” will be made, it will penetrate the bag industry. It will be a new and a refreshing look of product in Davao because the product it is not common for this type of product to be sold in the emerging market in Davao. Each customer will experience different feel for every product.
Producing bags has been in the Philippine industry since the Pre-Spanish period. The bags then in the Philippines were woven made from abaca fibers and other wooden materials. During the Spanish era, cloth has been introduced in the industry. It is not until the American colony that leather has been commenced as well.
Since then, the bag industry in the Philippines has been involving from the low quality to the high end materials.
Blue bag is a stylish, trendy and unique because of being an eco-friendly feature. It is something new that we can offer for our Davao market. This sling bag is different from other bags in which we can provide with affordability.
We provide a singular design to each customer to visually differentiate from other consumers with the same durable and reliable materials.
A.) Future Outlook and Trends
as the world today is increasingly given awareness of the developing dangers of the global warming. The effect would be that the world economy is slowly putting action through projects, campaigns and usage of eco-friendly materials. We see that eco-friendly products will rise and evolve. Partnered with our evolution of our unique designs we foresee we could continue in the competing bag market.
We could also expand, as the first producers of eco-friendly sling bag, in the Davao market and creating more types of bag that will also be in line of producing sling bags.
B.) Analysis of Competitors
The competition together with the competitors plays a huge part in affecting the external business environment since entrepreneurs see them as a threat to their business. Entrepreneurs should be aware of the competitor’s strengths and weaknesses. With this, the entrepreneur will be able to analyze and be prepared for the possible threats the company will face. Furthermore, in knowing the competitors’ strengths and weaknesses, the entrepreneur will be able to formulate a good opportunity analysis. Bags are considered essential up to now for its functional capability in which the industry continues to progress with different innovations. In a daily use, consumers now tend to seek products that meet their needs both on its usefulness, durability to sustain in carrying multiple items and the design that can highlight the uniqueness of the bag.
Blue bag venture is a personalized bag made of non-woven materials with an Ateneo de Davao inspired design that is affordable in Davao. That is the reason why the entrepreneurs do not consider a major competitor in the industry except for the usual bags that has been already sold.
The Blue bag enterprise will face competition from other popular cheap bag brands like Heart Strings, Cosé and also bags from department stores, bazaars and Chinese bargain stores. Since the venture has not yet opened outlets in the malls, the enterprise will surely be facing a tough competition, in the distribution process since more people go to commercialized stores.
However, the consumers will realize that the Blue bag products are of reasonable price and offer a very unique service and comfort. It is environment friendly, handy and hassle-free but it has rare Blue Knight designs and will suit the consumers’ kinds of styles since the venture is about customizing and personalizing, especially alumni from Ateneo de Davao and students and employees from the institution.
C. Market Segmentation
The venture will classify the business into smaller groups based on characteristics of the customers and buying situation.
Since the entrepreneurs are based and residing in Davao City, the market will sell in the said metro. By the time that the business will successfully grow, the entrepreneurs may think of ways to expand the venture.
The primary target market of the venture is female students enrolled in private schools of Davao City. These ages range from 13-20 years old. Other types of bag carriers such as young professionals both male and female are also welcome to use the product. The target market of this venture would preferably be students of the Secondary Education and College who have interests on trends and who bring or use bags on a daily basis.
Base from the survey that the entrepreneurs conducted, most of the consumers like the idea of customized bags and the most sought-after from a bag are its durability, affordability, design and usefulness which Blue Bag possesses. (See Apendix for survey questionnaire)
In central Davao City, there are 66 private schools and educational institutions who are offering Secondary education (High school and college).