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The Backpack Pioneers� �Final Presentation

Elliott Teigen, Niamh Walsh, Jacky Guan, Patrick Cooney,  Bruno Carreira, Timothy Duduch

12/8/20

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Mission and Objectives

  • As the Backpack Pioneers, our company aims to continuously put the customer first.

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  • We can fulfill our mission by pledging to deliver comfortable, high quality backpacks tailored specifically to the needs and wants of our loyal consumer base.

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  • While we aim to satisfy our customers wants and needs, our main objective is to for our backpack to create as big of a profit for our company as possible.

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Strengths

  •  Most profitable
  • Best durability
  • Highest net profit
  • Customers loves the backpack

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Opportunities 

  • More money available for promotions
  • Largest distributors for Urban Commuters

Threats

  • Competition has more promotions
  • Lost 9% of the market share
  • Less commuters due to poor economy affected by COVID-19

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Weakness

  • Not having a great promotions
  • Unable to find perfect price point until the end

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Situation Analysis

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Positioning Graph

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Segmentation

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  • Total market size: 125,028 people
  • Average growth rate (full marketplace): 4.2%
  • Average backpack price (full marketplace): $52.20

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Targeting the Urban Commuters

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MARKET SIZE (THOUSANDS)

GROWTH RATE

PURCHASED BACKPACK IN 2014 (%)

AVERAGE PURCHASE PRICE

Urban Commuters

25,306

3%

1%

$45.00

School Children

39,415

1%

1%

$24.00

University Students

34,044

5%

0%

$32.00

Luxury Trend Followers

7,503

7%

1%

$70.00

Outdoor Enthusiasts

18,761

5%

1%

$90.00

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Product

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Comfort

    • Wide Padded Straps
    • Advanced Material

Capacity

    • Rounded Top
    • Water Bottle

Waterproof

    • Too Expensive to Justify*

Urban Commuters Wants and Needs:

  • Comfort 56%
  • Capacity 28%
  • Waterproof 28%
  • Commuters need space for laptops and work-related items on the train (items that cannot be held)

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Color

  • “Black”

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Features

  • Water Bottle
  • Rounded Top
  • Wide Padded Straps
  • Advanced Material

*$10 per unit,

Failing COVID-19 economy=less disposable income for extra features

Decisions to Accommodate Customer Needs/Wants

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Positioning

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Professional

Classic

Kept production costs low while delivering on urban commuter preferences

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Distribution

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Our approach was inclusive because we selected all available and profitable distribution channels to sell our backpack through in order to maximize our profits.

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Price (MSRP to Units Sold)

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Throughout the quarters, the price ranged anywhere between $63.00 and $70.00, with the initial and final price being $66.00.

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Small correlation between Price and Units Sold. 

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Price�(Cost to Profit)

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Initial cost was $33.00, and we stuck with that production cost until Quarter 6, where the cost went down to $23.00.

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Price to Cost was the more important ratio to meeting our bottom line.

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Metrics per Turns 

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Statement of Cash Flows

Gross Profit

$22,602.16

Gross Margin

26%

Starting Balance

$10,000.00

Units Sold

2061

Unit Price

$42.63

Unit Cost

$31.66

Total Revenue

$87,855.16

COGS

$65,253.00

Market Costs

$9,450.00

Distribution Costs

$0.00

Total Fixed Costs

$9,450.00

Total Cost

$74,703.00

Net Profit

$13,152.16

Contribution Margin

$11.14

Final Balance

$23,152.16

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Income Statement

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Promotions 

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Quarter 1: “Social Media” at frequency 1x 

Quarter 2: Added “News Radio” at frequency 1x

Quarter 3: Didn't do anything, cut back on promotion 

Quarter 4: Did not touch media 

Quarter 5: “News Radio” did not do much to help promote our backpack, so we removed it

Quarter 6: Did not touch media, replaced wide padded straps with basic and removed laptop sleeve

Promotion

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In Conclusion…

  • Decrease production costs to maximize profit
  • All 4 of the Ps in marketing mix: product, price, promotion, and place are equally important
  • End goal was to increase the margins on our backpack
  • Brought us closer to our groupmates

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Questions?

Niamh Walsh: nwalsh2@su.suffolk.edu

Jacky Guan: jguan7@su.suffolk.edu

Timothy N. Duduch: tduduch@su.suffolk.edu

Patrick R. Cooney: pcooney@su.suffolk.edu

Elliott Teigen: eteigen@su.suffolk.edu

Bruno Carreira: bcarreira@su.suffolk.edu

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Additional Slides 

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