Week 9 FINAL WEEK –
Monday – Today we had our presentation, and it actually went really well. We have areas to improve on, mostly in the financial area. I know that I did the finances, so I feel really bad that I didn’t think to include things such as the website, and salaries, I also didn’t know the difference between net and gross profit. Even though I did research into the advertising and I thought i had the prices right, i do understand that it is very very low for how we want to advertise. So were looking into different and cheaper which could also be more effective ways to advertise such as through social media. We need to improve this and revisit this over the week before our hand in. However i am really happy because, we were told that the technical drawings were really strong, as these took me a really long time. Overall, I’m really happy with how today went. Just a few things to improve on for Thursday, i’m also going to make a ‘life-size’ prototype of the packaging box for hand-in.
Thursday – Looking back on the project, I think overall went really well and we all worked together well. Our presentation and publication looked really professional, there were a few problems but i think that we made an overall good brand with a strong image and thought about and planned most things well. I re made the packaging box, it now fits a bag inside of it (used my backpack to show the scale) it shows where our thank you card will go and how to acetate will be wrapped around the box (the acetate we printed on the uv printer wasn’t large enough to wrap around it but it’s being used more as a sample to show the real thing). To view my Niche Brand Report on Pinatex by Ananas Anam visit https://alicekiernander.wordpress.com/niche-brand-report/
First image is showing the scale of the bag, everything else after is what we did this morning, it has the prototype of the bag inside, wrapped inside the canvas bag with the thank you note.
Thursday – Today we had our business meeting, and just went over what we still needed to do for Monday. Mostly making a packaging prototype and ensuring that our presentation was consistent and our publication was ready for Monday. In the lecture we also went over how we are to hand our group and individual work, i went out and brought a black box for all of us to present our work into, I will be sticking our logo on the front of the box. By the end of the evening we had our presentation and publication ready, and are going to palm print on Friday so we have it ready for hand in. Our publication will be shown on Issuu for Monday on my iPad for our professional look, we also want to lay all of our prototypes and stickers etc on the table whilst we are presenting. Our prototype bag still needs to be completed, Isabel has been working on this, we just want to show how our inserts zip in and out.
Monday – Today we spoke about areas that we needed to do ready for Monday, mostly about our publication and what we needed for our presentation. We sectioned out an area to each person to have ready to give Emma for the publication. I did some bag compartment drawings and one more bag technical drawing and a write up about the research that i dd at the start about our trend research, and why we have chosen the selection of bags we have.
^^^Document of what i wrote up
I started working on the finances again, and came up with a figure of £17,250 as our start up costs, we now just need to look into how we will get this money. I was thinking a mixture of a bank loan and the crowdfunding website because this way we would be able to get our product out to potential customers whilst raising money to start our business.
(press on link for my workings out of the finances)
Thursday – Today i wasn’t in session, but i sent my group the technical drawings i had done over the week for the meeting. I also got them to update me, and they just want me to carry on making more technical drawings for the website and have another go at the finances.
I took Tyler and Isobel’s drawings and put them onto illustrator to give them more of a professional look. I have also put a few of the bags in the pinatex fabrics. I’m going to put all of them in the pinatex fabric, then once i have drawn more inserts i will put different colours linings on the inside to give options on the website.
Monday – We began by bringing in different bags with lower and higher price ranges to look at the differences between them.
Debenhams, £40 – this bag has a detachable bag on the inside. The outside bag is a shopper bag with thin straps, gold coloured fastenings and this part of the bag hasn’t got a lining but the inside has a strong pocket backing so it doesn’t get caught to anything. The detachable part of the bag poppers on the side to attach to the bag, and has a soft lining on the inside with a phone holder compartment and a separate zip part. The topstitching on the bag is detailed, and the fastenings are metal compared to the cheaper bag which has plastic fastenings. The made is made in china, made from polyester and cotton. The bag has been used a lot over the last year, especially the smaller detachable bag and none of it has broken yet.
Bag 2 –
Primary £6 – The leather look fabric has a really nice texture, the lining inside isn’t as soft as the first bag looks cheap also. The strap is also already breaking after a handful of times being used. The fastenings are plastic and have lost their colour. There are quite a few compartments in the bag which makes it very useful, but because it’s more flimsy i can’t put that much stuff in it. From looking at the label we were unsure where the bag was made it doesn’t make it very clear.. could possibly be spain as theres a spanish address.
Ruby’s Bag –
Tiptop, £15 in the sale. Annoying fastening that pops open all the time. Theres a card slot on the inside which is useful, it also has the Topshop logo pressed into the leather look material. The bag is made in chine, has a polyester lining 100% and the outside material is Polyurethane. The bag hasn’t lost its shape, even though is has been sorted away and had lost of times stuffed into it. Good sturdy bag.
Bag 1 – Apricot, £22 in the sale. The fabric around the handle has discoloured, and the tassles fall off and get caught a lot. The bag has two different handles, has a lining and a pocket on the inside. We think that the fastenings are plastic but we wasn’t sure. The bag is made in china.
Bag 2 Cath Kidson, £75. The bag has been used for years and is still in really good condition, hardly any wear and tear. The bag is PVC coated cotton, the strap is strong and has leather trims to reinforce the straps and the buckles. The lining on the inside is cotton, fastenings are metal. Inside there is a pocket, and a key holder clip. Even though this is the most expensive bag, i really don’t like the fabric, print or the trimmings.
We also started looking at the cradle to cradle, and cradle to landfill approach and thinking about where our brand will sit within this. So far i know that Pinatex is based around the cradle to cradle approach, i don’t think that we could keep up with this, but we would want our customers to reuse, upcycle/downcycle before they throw the bag away. One of the ways that this works, is because we have detachable linings the customer can always buy new linings for every occasion instead of just throwing once bag away to get another.
Today i also started looking at the Financing strategy behind our company, i got this far and now i need some help from my group as i am finding it hard to finish this off.
From looking at Mulberry and their costs for making the bag compared to what they actually sell their bags for,
It says that the cost of manufacturing one of their bags is around £185, and they generally sell their bags for around £995. £185 is around 19%-20% of the final cost of the bag. So by working out how much it would cost of manufacture our bag means we could work out the overall price of one of our bags.
Looking at the prices for materials:
- Pinatex: £18 Per square metre
- Organic cotton for the linings: From the Organiccotton.biz, it is £6.95 per meter
- Zips: From Zipperstation.com £8.70 for 10 meters, this means we can make around 13 inserts from 10 meters.
From looking at the same website which has the prices for the Mulberry bags, the labour costs for the bags are around £70-£100. As we want our bags and inserts to all be made at the manufactures we have an idea that it will be at the higher price point of £100. Once we add up the costs of the materials, fastenings, linings and labour we get a price of around £130.
£130 – For materials and manufacturing
£4.45 – for the First class signed delivery shipping costs
£6.92 – For the printed Pinya pocket canvas bags, if brought in bulk of 100
£0.50 -Cellophane as it is brought in bulk. 600m for £138.12, it takes around 2 meters to wrap a box, which makes 300 boxes.
£2.41 – Per draw box, when ordering 300.
£144.28 – Overall with the packaging and manufacturing costs
Using the idea of X 200-220% = Wholesale Price
X 220-250% = Retail price
£144.28 x 2 = £288.56 for the Wholesale Price
£144.28 x 2.5 = £360.70 For the Retail Price
|Setup Costs||Production Costs
|Market Research||Market research||Staff Salaries|
|Registering a Business||Product Development, designing and making the products||Utilities – power, water, telephone|
|The logo Design, company names||Maintaining a sewing machine|
|Buying equiptment, a sewing machine etc||Buying fabric for your product.|
|Buying stock fabric||Manufacturing|
|A deposit to rent a premises||Warehouseing and distribution||Monthly rent|
|Buying office equiptment, shop fittings and company stationary||Servicing office equiptment and replacing company stationary|
|Marketing and advertising|
Using crowdfunding, you can set a target and if you don’t reach it the money is given back to the people that pledge the money, but you are able to get more money than what you originally set as a target. There is a way that you can work out how much money you should target for, which is set out on the crowdfunding page. The average pledge is around £50, the average rate for people who pledge after seeing your site is 5%. So if you had a target of around £1000, with the average pledge being £50, I would need 20 people to back me. This would then mean that I need 400 visitors on my page to fit with the idea of 5% of people who view the page will pledge. This is just an outline given by crowd funding. Once we have set a realistic target, we could also get a bank loan so that we would be able to cover all our costs and have a more realistic target on crowdfunding. We would also not want a massive bank loan, as this could cause extra strain on our company with debts. As we are working in collaboration with Pinatex, we could use trade credit, so that we don’t have to pay for the fabric straight away and we pay as we sell the products. Other websites such as crowdfunding are kickstarter.com, hubbub, buzzbnk, just giving, crowdfunder, peoplefund.it, banktothefuture.com, indiegogo, one of our main competitors the Breton Bag Company started off by using kickstarter.
Finding costs for
Organic cotton – 300 Meters (for 300 bags) x £6.95 = £2,085
Pinatex Material (if not able to have as trade credit) – 300 Meters (for 300 bags) x £18 = £5,400
Zips – 10 meters makes 13 inserts. £8.70/13 = 0.67p each, so 300 x 0.67 = £201
Labour – £100 per bag in labour.
Packaging – 600m cellophane, will wrap around 300 boxes. You can buy 600m for £138.12
Ordering 300 draw boxes for the packaging will cost around £723, which is £2.41 per box.
(Need to add the unit, computers, advertising, staff salaries, utilities for the unit)
Start up costs so far = £8,547.12 without the unit, computers, advertising, staff salaries and unitilites for the unit.
Manufactures in the UK and the Philippines i have managed to find websites with numbers and locations so our group has a choice of where we want the shells of our bags manufactured. (http://www.philippinecompanies.com/search/manufacturer-bag&start=10)
On Monday we went over our ideas for packaging, we began by making the simple shape of the draw. We also thought that we’d have a sort of pocket inside the draw to hold the thank you note. We have also booked the UV printer to print our logo onto the cellophane, as this is going to wrap around our box so it has the ‘present’ feel to it. We are also starting making our prototypes on Thursday.
On Thursday we brought in the fabric for the inserts, the zip and the ‘shell’ of the bag which we brought from primark. We want to make a prototype of the inserts more than the outside of the bag, we want to show now the lining zips in and out of the bag as we know that this wasn’t explained very well through our last presentation. For our website we’ll be using Tyler and Isabels designs, but i will be putting them into illustrator to give them more of a professional drawn up look. From doing this i will be able to add colours and images of the fabrics so that at the next presentation you can visualise the bag with our drawings and also be able to see how our linings work. Today we also used the UV printer to print a sample of our acetate, we are all really happy with the outcome.
For our packaging prototype we will be making a smaller version of the draw with a prototype of a bag made smaller in card to show how it all fits, otherwise we will not have enough acetate to wrap around the box due to only being able to print unto A2 on the UV printer. Over the weekend we will be beginning to make the prototype of the bag to start a photoshoot/fashion film, and making more solid designs so that they will be able to go onto the website and publication.
Week 6 Lecture
Lecture – Creative financing. This is also an area that Myself and Ruby will be working on, we have started by calling a few businesses that we could have our ‘shell’ of the bag made at. Thinking more into where we could have the bag made, we would have it made in the UK because even though the pineapple leaves are made in the Philippines the material is finished in the UK and Annas Anam’s main office is in London. But it may also be a good idea to go to find a manufacture in the Philliphenes as this is where the material is originally from.
On Monday we had our presentation, which i feel quite confident with, as a group we are now all much more clear on the areas we need to work on. And from all our work on the different pieces on the power point, Ruby was able to make a short script for us to go off of so that we all knew when we were talking and what we were talking about. On the feedback from our presentation i think that it went really well and the areas that weren’t as strong we were mostly already aware of, so it was really nice to not have many surprises or worries about our project but also it was really nice to get feedback so we knew how to change these and make them better.
Main points to improve on:
- Packaging, need to look into other companies and how they package their products. The packaging needs to feed back to who we are as the brand and make the customer feel special and feel as if they are unwrapping a present.
- Make it more obvious, and develop the idea of the zip in and out linings so that they can be changed because it is a strong idea. But we didn’t go into enough detail in the presentation
- Work on the concession, think about ideas for the music for the store, the posters, colours of the walls, chairs etc
- Think about having our labels mention Pinatex as we are collaborating with them
- Advertising mock-ups, such as billboards in the middle of e.g. canary wharf because this is where our customer base is.
- We need to be more consistent in the powerpoint
- Where else could be advertise in London, the idea of advertising or maybe making something for the bikes in London to hold the customers items.
I went away and looked more into the packaging so i could come back to the group with some good ideas so we can begin mocking these up and developing them.
My main idea for the packing was having a pull out draw but big enough for the bag, this way the customer would have a personalised draw to keep their bag safe, but also by having a second purpose for this ‘draw’ they would reuse it so it wouldn’t get thrown in the bin. We would also like to use the clear cellophane wrapping paper with our logo, or pineapples printed onto it to be the outside ‘gift wrap’ of the box to keep it secure but still looking lovely in posting. The bottom image is of our canvas bags, we would like to put a draw string into them so that they can double up as the bags dust bag protector but also a re-useable tote, this will be good for extra free advertising also when the customer carry them around. We also want to include a thank you note, that has information about the leather also so that the customers will be aware of what they have brought. We are going to start mocking up the packaging on Monday.
Myself and Ruby tried calling a couple of manufacturing companies to see if they would be able to give us a really loose quote on what it would cost for us to get the ‘shells’ of the bags made. But none would really give us any prices because we weren’t actually having the bag made or we weren’t an established company, we are going to try a few more on Monday and over the weekend.
Over the weekend i am going to charity shops to see if i can find some bags that we can use for prototypes, i am also putting more information into the publication as we have more solid ideas because of the presentation on Monday. I’m also going to find a way to print on cellophane ourselves.
Week 5 Lecture-
Business Plan, here are some of my notes from the lecture i wanted to make sure that i understood each section so that i am able to help Sarah and Nanna with their business plans. As the brand strategist i work closely with marketing to support them and research.
clarifying goals and objectives, communicating these to your wider team of employees business partners and clients. Five essential components
- Executive summary, it is at the beginning of your business plan, but should be the last thing you write. It Encapsulates all the key points, ideas and objects of your business in a very short and concise “elevator pitch”. Mission statement, business opportunity, financial projections, funding requirements. Look at powerpoint for urban outfitters history mission and ownership
- Vision and objectives, This section will help investors and anyone else reading your business plan, understand what particular market need you are going after and what you will offer that is unique and differentiated. Overview of the industry, projected position for the future, customers and consumers and direct competition swot analysis. (no more than a 5 year plan)
- Market and competitive landscape, survey monkey, looking at our competitors, the section describes the market that you plan to operate in. How big is the market? how fast is it growing and what evidence do you have that this part of the market is a viable opportunity? You also need to identify who the competitors in the market are, whether they are growing and what their position is in the market. What are you going to do that is different? Looking at mintel for statistics, why did we go into this market, where we sit in this market.
- Implementation plan, business opportunity, your company strategy, benefits and needs. Looking into mintel using graphs and graphics to help you do this. This is probably the most detailed section of your business plan, identifying the specific actions that your business will take to go after the market opportunity you have identified. Ideally ,it should cover three years of activity, on a seasonal basis, and should include everything from how you communicate as a business and the staff you will hire to the space you will need
- Financials, your financial plan shows how your business will grow in terms of both profit and revenue and what financing you will need to make it happen. An income statement uses projections of how your business will grow at the top line, through sales and other revenues, and will also project the costs of delivering that growth. The cash flow statement shows the peaks and troughs of your cash situation on a monthly basis and identifies what funding you will need from this financial growth. Organisational structure, funding requirements, core operations. Also risk management for events that happen, it is identification and assessment of things that can go wrong and how you would minimise, monitor and control the probability and impact of unfortunate events like financial markets, project failures, production issues, legal liabilities, credit risk, accidents. (look at h&ms financials online as a PDF)
- looking at how to get the loan, what if float money???, sell app for, aim to see 5 in 1st year, look at the tax, total minus the tax, would then be the total money at the end of the year, they carry on going for the years
On Monday I left the session at lunch, before I left I printed out a few options of bags and colours so that we could put them together to see how they all looked. Before i left we decided on 4-5 bags, and a colour palette that we felt worked well for our product. But when i left i was told that none liked the idea of having a portrait bag, and everyone either wanted backpacks or landscape bags. I really liked the idea of having a choice of the shell of bag, some backpack, from landscape and some portrait so that the customer could have a choice, but they had to make a team decision. The team updated me and told me that there was now a logo and were sticking with the name Pinya Pockets, i do like the name and the logo. However it’s now Wednesday and we haven’t yet decided on a range plan, i’m beginning to get worried because we have our presentation on Monday and need to adjust the working drawings with examples and the customisable inserts for the bags. Hopefully on Thursday we can work through the list of ideas that we need to have for Monday. We also created the customer profile board, which i think worked really well and we managed to get a good idea of who our customer is ready to write the Pen Portrait.
Today in the afternoon session i was updated that we had chosen a logo! i really like this logo I think that it looks professional but also fun and quirky.
(This is our final logo)
On Thursday we started thinking about Monday and the presentation that we had to do, everything seems to be coming together. We have a lot more work than what i thought but it just needs to be all grouped together and sorted out. This weekend we are mainly focusing on getting our work together and ready for the powerpoint on Monday.
So this week we managed to come up with a brand name, but also drop it at the same time. We thought of Pinya Bolsa which means pineapple bag using a mixture of two languages, we also had a logo, which at the time we were happy with, we thought it looked clean and sophisticated. But after we had our session with Esther we all realised we needed to go back and revisit our name and the logo, we thought of Pinya Pockets because we were going back to our original ‘Pocket Problem’ which is were all of our compartment bags idea came from. But we still didn’t like the idea fully, nor could we come up with any ideas for a nice logo. When speaking to Esther she said about thinking about our market, and that a sophisticated clean logo like this didn’t go with our brand idea, which is true. The type of people that are going to buy are bag will be more trendy and ‘hipster’ as the normal person wouldn’t go out of their way to buy a Pineapple Leather bag. So again we are still waiting on a brand name, but then again i think were going to leave this for a while because otherwise we feel like were forcing it.
So, we also wanted Tyler and Isobel to have their very rough sketches done by Monday so we could make a questionnaire and start doing some research for thursday, I was also thinking about giving some to my mum to go around work with also. But they didn’t have any until Thursday, and they were finding it difficult to draw the linings of the inside of the bags. So instead i did some research on WGSN to look for technical flats for bags that we could tailor our range plan off of, so this would make it easier on the design team to focus on the inside of the bags. So far i have suggested these, too choose a range plan of maybe 5 to be the shell of the bags for us to then work on for the lining. By working off of these we can tailor them to what we want, add more or less pockets and they will look really professional for our social media accounts and for our websites.
For Monday we are looking at customer profiling boards, as a group we also wanted to gather some information about this ourselves, and maybe come up with a draft of our company wording. We also want to work on the colour palette board so we have atleast one define thing. So far it’s been a mixture of a week, good because i have found these for something to work off of, but also bad because we’ve gone back a step, but then again it will push us further into making the brand name better! (I hope)
Week 2 / looking at social media accounts
In lesson we looked at a few social media accounts from large hughstreet stores such as River Island and Oasis, from looking at these closely we were able to see flaws in their accounts and how it could be improved.
For example, the hashtags that Oasis used on their account weren’t really specific enough to what they were selling, which makes it harder for the audience to see the images. We also saw that the layout of the images weren’t very good, they weren’t professional and some of them had no meaning to the brand, really poorly constructed instagram. When we looked at Riverisland the hashtags were better, and they used a lot of customer images, however the image that they used again were quite poor for such a big brand. A very good example was ASOS, they had professional pictures even if it didn’t look like a professional set up, they had different instagram accounts for different areas such as ASOS Marketplace, or menswear etc.
Our group went away and looked at one of our competitors for our brand, The Breton Bag Company. They have a good website and nice professional instagram pictures, their models look like they’re always on the move so maybe this tells the story of what the bag is made for, their hashtags are good and they receive positive comments from the viewers. However we did see that they don’t really interact with their customers, such as showing posts or pictures or shout outs to anyone i think this makes it really impersonal. Also if you scroll down to the bottom of the page you can see where it used to be a personal account and i think that takes away from the professional look at the top.
This week we came to an agreement on what we would like to do, and established how were going to do it. Over the weekend i did more research, i looked at some statistics on Mintel to feed back to the group, i also looked at how we could advertise our brand, how we would go about it and how much it would be. I have e-mailed and called a few places but no response yet, i will try more next week. I have e-mailed Pinatex to see if there was a difference in price if brought in bulk but no reply, otherwise its around £20 a meter. I have a few numbers for different factories that could potentially make our bag.
We also found a competitor called the Breton Bag Company, they have a very similar idea to us they call themselves the ‘Modern Day Briefcase’. They have a few different styles of backpack with a large or small option. They must make their bags in a smaller quantity also because they have their bags on pre-order to be dispatched in October. I feel that even though our brand has the same type of idea, we are having different styles of bags, with more compartments and the sustainable leather.
So far we have decided that our bag will come in 3 different styles, with that being the ‘outer shell’, then having a zip out compartment lining so that it can be changed for any day of the year or whatever you are doing that day. There will be different options for the lining so it could suit any commuter. We want the bag to be compact, stylish and purpose built. We would like the leather to be the Pinatex material so it is sustainable, but we also love the texture of the fabric. We will advertise in business newspapers, such as the metro, on tubes, airports, in taxi’s and at conventions and pop-up shops, we feel this is where will we meet our customer. We will have social media account because the age range that we want to cater for will mostly have social media such as Facebook. Our age range is 25-50 and for commuters going to work etc.
This week we started meeting our group, and brainstorming initial ideas for our brand. We began by thinking about making unisex accessories, we wanted them to be practical, and genderless. After a while we decided on making unisex bags, we wanted them to be for workers, where they need to have the laptop/phone/folder space but also have the chance to customise their bag how they want and for it to be made of sustainable fabrics. Thinking about the customer base we were thinking around the ages of 25-45, we need the product to be made good quality so it would obviously be more expensive than the normal highstreet brands. The main part of the customisable bag would be for it to give the customer the choice to choose the different pockets and sections for their personal use.
I started by looking on WGSN for trends for men and woman for 2017/18, so that we could compare and come to a middle ground to make it unisex.
Unisex Bag Company
We are starting to compact it down next week.