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LightWeight Luggage

Photo Retrieved from http://hakkiz.files.wordpress.com/2006/07/tokyo_night.jpg. Photo Retrieved from http://www.iaes.org/conferences/past/newyork_60/cityinfo/New%20York%20City.jpg. LightWeight Luggage. SOM 301-001 Lecture Presentation Spring 2010. Group 9

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LightWeight Luggage

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  1. Photo Retrieved from http://hakkiz.files.wordpress.com/2006/07/tokyo_night.jpg Photo Retrieved from http://www.iaes.org/conferences/past/newyork_60/cityinfo/New%20York%20City.jpg LightWeightLuggage SOM 301-001 Lecture Presentation Spring 2010 Group 9 Ying Jiao Zheng, Kaitlin Beazell, Molly Pannell, Kristina Villavicencio, Tiffany Kupl, RajuShahani, Angela Henderson, Grace Daeun Kim, Adam Tran, Laura Moukalled

  2. Company Overview • Company Name • Company Logo • Company Mission Statement • Relevance of name & logo to product

  3. LightWeight Luggage: Description ▶Inner Structure: Mesh plastic (perforation allows us to keep the weight low) ▶ Exterior Structure: Durable Nylon ▶ Up to 50% Lighter than our competitor’s luggage ▶ Wheels attached on the bottom at each corner for easy, painless transportation ▶ Product weight is 5.5-6 pounds, comparable to our competitors’ products that are 11-13 pounds. ▶ Two sizes, carry-on and full size, to appeal to every kind of traveler

  4. Management & Operations Manufactured in the United States Levels of Management: Hierarchy Employees →Management, U.S.→Japan

  5. Marketing: Strategies • SWOT Analysis • Strengths: strongly designed product • Weaknesses: new company in the already well developed suit case market • Opportunities: rising costs of for baggage on airlines depending on size dimensions • Threats: airlines with low, or no, baggage fees ► Limitations: small, new company with only two products. Some smaller airlines will still only allow one suitcase even with the weight restrictions. Our product can be purchased as a set of two (one smaller, one larger), or individually depending on the consumers’ needs.

  6. Marketing: Implementation & Advertising • Illustrated by a consumer study in Asia, the customer market has changed significantly in recent years. • The middle class is steadily on the rise in Asian countries, particularly places like Japan. • In addition to the middle class, the young population in Japan, teens-young adult, has increasing power in the consumer world. • By marketing to the middle class and young adult generation in Japan, we can reach our full marketing potential. • Television commercials and the internet will be our main source of reaching the public. • Celebrity endorsements and using 20 something year old models, etc. will create an attraction to our brand from youth that will maximize our sales. http://www.apmforum.com/emerald/asian-consumer-marketing.htm

  7. Technology • To market in the Japanese market, technology plays a large role as they are very advanced with things such as ‘electronic paper.’ • Technology in Japan is all about innovation. Often, the smaller a new product is, the better it is. Our suitcases have a new design that will appeal to the people. The different size choices offer different choices for consumers. • The way we choose to use technology to market the brand can significantly increase consumer reception of our new product. http://www.japanmarketingnews.com/2006/06/need_more_speci.html

  8. Finance and Accounting Projected Monthly Costs Monthly Cost# ▶ Salary Employees $3,370.00 4 ◦ total $ 13,480.00 ▶ Production Workers (160 hrs @ $12 hr) $1,920.00 15 ◦ total $ 28,800.00 ▶ Cost of Materials per unit $ 50.00 3400 ◦ total $ 170,000.00 ▶ Capital Expenses (Bldg, Equip) $ 4,100.00 • Bldg Lease (U.S. & Japan) $ 2400 • Equipment (Lease U.S. & Japan) $1700 ▶To Break Even, we need to sell each at $ 65.26 ▶Value Added to Goods (Mark Up) $ 70.00 3,400 ◦ total $ 238,000 ▶Sales Revenue $120.00 3400 ◦ total $ 408,000 ▶Profit $ 186,1420 ▶ Variable Expenses $5,500.00 ◦ Advertising (U.S. & Japan) $4,000 ◦ Utilities (U.S. & Japan) $1,500 ▶ Total Expenses $221,880 Sources: http://www.census.gov/prod/2009pubs/10statab/domtrade.pdf & https://www.census.gov/prod/ec97/97m3169a.pdf

  9. Competitor: Kenneth Cole Gross Profit Summary *Gross Profit in 2009 is $189,209,000 dollars.

  10. Investment Inquiries and Concerns • Invest $250,000,000 dollars; Loan repayment = $75,000/yr • Break even in 3.5 years with an initial return of half of our gross profits in 3.5 years • Plus $75,000 return for two years, total of 150,000 return on initial investment which is a 60% increase.

  11. Reference List • United States Securities and Exchange Commission;Form 10-K Report; Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=71589&p=irol- SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXB vPXRlbmsmaXBhZ2U9NjgxNjI0NyZhdHRhY2g9T04%3d • http://www.japanmarketingnews.com/2006/06/need_more_speci.html • http://www.apmforum.com/emerald/asian-consumer-marketing.htm

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