Business Plan for Edorate Bags: ACCG 3008 Assignment - S1 2020

This business plan outlines a strategy for Edorate Bags, a company focused on producing technologically advanced luggage. It begins with a business plan pitch and explores the business opportunity, including customer needs, target market, social impact, and relevant megatrends. The plan details the sales and marketing strategy, covering fundamentals, social media approaches, and measurement techniques. It also includes an operational strategy, outlining the structure, outsourcing considerations, and risk management. Furthermore, the plan presents financial projections, including P&L statements, balance sheets, and capital requirements, concluding with a valuation and justification for the business. The plan incorporates market research, competitive analysis, and strategic recommendations to ensure success.

CORPORATE ADVISORY

Contents
1.0 Business Plan Pitch.........................................................................................................2
1.1 Written pitch.....................................................................................................................2
1.2 Visual pitch.......................................................................................................................2
1.3 Backer rewards.................................................................................................................2
2.0 Business Opportunity...........................................................................................................2
2.1 Customer need and target market.....................................................................................2
2.2 Social impact....................................................................................................................2
2.3 Relevant megatrends........................................................................................................2
2.4 Similar successful campaign............................................................................................2
2.5 Opportunity testing plan...................................................................................................2
3.0 Sales and Marketing strategy...............................................................................................2
3.1 Fundamentals....................................................................................................................2
3.2 Social media and free publicity........................................................................................2
3.3 Measurement and information..........................................................................................3
4.0 Operational strategy.............................................................................................................3
4.1 Operational structure........................................................................................................3
4.2 Outsourcing......................................................................................................................3
4.3 Operational risks...............................................................................................................3
5.0 Financial plans.....................................................................................................................3
5.1 P&L and Balance Sheet....................................................................................................3

5.2 Capital requirements and funding plan.............................................................................4
5.3 Valuation and justification...............................................................................................5
References..............................................................................................................................6

1.0 Business Plan Pitch
This business plan is associated with combination of fashion and technology in form of high
technology enabled handbags. The company will make efforts to design leather bags for
luxury prices, which are equipped with technology especially tracking devices and phone
chargers (Miller, 2017).
1.1 Written pitch
Edorate bags have been designed according to the today`s computer and world traveller as is
it not just backpack but also it includes portable power station with intelligent battery, which
has been designed efficiently near to any phone. This smart storage system, which avails
space for devices where it can access and locate them. Durable water repellent with shocking
absorbing EVA foam designed to keep them organised. This include organiser board inside it
to use technology accessories, cables to charge mobile devices anytime, and iPhone lightning,
and USB devices.
1.2 Visual pitch
Edorate has several game changing features and additional functions as compared to other
brands. It is made up of polycarbonate, aluminium, and polypropylene. Three versions have

special removable wheels and internal battery of 8000 mah battery, which can be removed
easily when desired (Kimani and Mutsotso, 2018).
1.3 Backer rewards
Backer rewards are special set of rewards for the project backers. Most backers visit crowd
funding to delegate some portion of profits to the charities. Furthermore, using the
gamification mechanism can unlock different devices. As a backer rewards and competitive
advantage, the “Edorate”, which has three smart products which includes GPS tracking,
Smart locks, Travel assistance application, and self-built digital scale (Klein, Falk, and
Gloukhovtsev, 2016).
2.0 Business Opportunity
The business opportunity of business are growth drivers-
 Increasing demand of technology advanced items
 Increasing focus on quality in luggage segment and relatable product design

 Fast increase in air travel in Australia and focus on manufacturers to avail tech savvy
bags in Australia
 Increasing adoption of trendy bags in America and Australia
2.1 Customer need and target market
Target market includes people travelling in airlines and trains. They crack down to smart
luggage, which enable TSA approved digital locks to allow travellers to deem low risks by
TSA (transportation security Administration). The features of plausible target market
includes working class people with high-income level. Target market is a defined segment of
consumers, which plans to serve geographic, demographic, psychographic and behaviour.
Younger generation has been witnessing higher growth in use of technologies in the
organisations, which force them to carry laptops during their travel time so that operations
cannot be hurt, which includes the densely populations nations (Thompson, and McLarney,
2017).
(Source: Kickstarter, 2018)

2.2 Social impact
New ways to work have already been affecting workforce as it becomes easy to communicate
with each other through social collaboration, instant messages, and applications. Social
impact is the way to work for the offices with effective training people, training, working
together, and then helping it to execute a strategy that can protect machines. Furthermore, it
has provided another way of enabled interaction between employees even in travelling
(Warnaby, and Shi, 2018).
2.3 Relevant megatrends
The trend for the Smart luggage researches those current and future market trends, which can
justify accomplishing markets within the tracking technologies. The market size of Luggage
bags is more than 630 million in 2016 and it is expected to grow at the rate of 16% from
2017-2024. Consumer shifts to leisure, style-quotient, and lifestyle are expected to drive
smart Luggage for upcoming seven years. Penetrating (IOTs) internet of things is expected to
equip the luggage with the smartest technologies (Bhutani & Wadhwani, 2016). From the
earlier data, it is seen that CAGR for 2013 to 2016 is expected to 16 percent and further, it is
expected to increase to 2 billion.

(Source: Bhutani, & Wadhwani, 2016)
2.4 Similar successful campaign
Advertisement campaigns is one of the most important to promote and induce the clients to
buy products. The campaign “smart travel with Edorate bags”. The company can apply
digital strategy as set gold standard by facilitating free shipping where consumers decided to
exchange and return purchase on this site. Edorate bags website can focus on online
marketing, and social media campaigns through which one can induce the customers to buy
the product (Ludwig, 2016).
2.5 Opportunity testing plan
By offering low pricing strategies, it is important to test opportunities and grab them to get
highest sales. The testing assumptions bring risks such as increasing use of smartphones
related to coupling of increasing penetration and then sensing technologies with personal and
privacy threats. Decreasing costs of sensors with higher availability of internet where the
market expected to witness number of products in this segment and issues related to privacy
of personal data (Warnaby, and Shi, 2018).

2.0 Sales and Marketing strategy
The strategy will include advertisements in which products focus on core competencies,
which centre for security (Thompson, and McLarney, 2017). With an aim to avail consistent
message to target audience as it is identifiable by setting target market and concentrate on
promotional efforts on outdoor advertising campaigns (Peng, Song, Skowronski, & Dong,
2020). For instance-, IMC has the objective of selling 150 units for best selling items and
then increase it by 10 percent every year. Selling medium products must be nearly 50 and
increased by 10 percent every year and low-selling products is nearly 20 in first year by
increasing 10 percent every year.
3. Fundamentals
Key product success depends on-
Product-
The Edorate bags open the application on smartphone to access real time GPS tracking,
combine fingerprint, enable Wi-Fi technologies, and service network provider are the
important features of product. It many include activated SIM card, précised, and renewable
service plan. As far as technology is concerned, it brings security and privacy issues related
to personal data such as confidential details, and the itinerary travels, which are expected to
decelerate smart luggage.
Price-
This strategy includes automatic worldwide tracking, which range from $900-$1700, which
differs due to size differences, quality and difference in the attributes each of them avails
such as 15-days rechargeable battery (Kimani, and Mutsotso, 2018).
Place-

Geographically, Australia is the start-up place and further, it can be extended to North
America. It can own adoption of technologically advanced items, which focus on innovation
products.
Promotion-
To encroach different markets, the company has to use appropriate medium such as
marketing campaigns so that awareness can be spread amongst customers regarding the
features of product.
3.2 Social media and free publicity
The company would follow some of the social marketing strategies, which includes using
YouTube advertisements, TV advertisements, and mall activities. Furthermore, the company
can collaborate with digital socialites who have followers of nearly 10000 genuine followers.
Most importantly, the company has to check its engagement rates as more traffic on website
can lead to huge sales. This includes promotion, which includes potential customer in buying
the products (Klein, Falk, Esch, and Gloukhovtsev, 2016). Sales promotion is the process of
inducing people at its best with the help of offers, discounts, and rebates.
3.3 Measurement and information
For the measurement, the company has to undertake PESTLE analysis to determine the risks
and external threats associated within the environment. To derive market research, the report
has to undertake defining the goals, analysing the data, designing the research questionnaire
to get customer feedback and finally visualise and communicate results.
4.0 Operational strategy
4.1 Operational structure
Edorate bags is a cloud communication platform, which can connect, engage, and then
interact with consumers in an efficient way. At operational level, the company has to employ

40 employees in Australia. The company needs leading global CPaaS (Communication
platform as its service) at its cutting edge of this sector (Boyer, 2017).
.
(Source: DELMIA Apriso, 2016)
The above diagram suggest that as a unique opportunity to work across in the full product
lifecycle, which can help them to shape the product updates by driving new customer
activities with product engagement. The operational position includes project management,
cross-functional activities, marketing, support, product management, and sales. It is a unique
opportunity to work across by making new customer activation (Handa & Garg, 2018).
4.2 Outsourcing
Operational strategy avails appropriate details, which is associated with contracts and
employees, which can provide motivation to perform best. A manager will have to undertake
activities, which promote employees by measuring their performance through balance
scorecard. Australia is the major market but soon the company will start to expand its
products to technologically advanced places and manufacturers, which focus on product
designs (Kickstarter, 2018). To increase the profitability in future, the company can increase
air traffic in densely populated nations especially Asia Pacific such as India and China with

increasing footfall in Malaysia, Singapore, and Thailand (Chopra, 2017). Some of the
competitors shows that there are always few players and new entrants such as Lugloc,
Trunkster, barracuda, Reden, Samsonite, Away and Delsey (Ge, and Li, 2019).
Many of the competitors have been investing in incorporation technology by offering
improved and technology savvy features to clients so that they can attain the stager of product
development stage to attain competitive advantage. The system consists of carry bags,
checked bags, and passport pouch that can connect to each other (IATA, 2019).
4.3 Operational risks
Risk Matrix
High Risk 1 Risk 4
Medium Risk 2 Risk 5
Low Risk 3
Impossible possible likely highly likely
Risk 1- Poor definition of work packages, inadequate scope, and quality needs.
Risk 2- These bags are often confused with TSA scanners, which includes mesh of wires,
RFID tags, and battery chargers.
Risk 3- Threat of competitors is likely to occur.
Risk 4- Underestimation of errors, fluctuation of prices, and reducing the project budget.
Risk 5- Operational risks for technology-enabled bags has no limitation to feasibility only to
airports because of connectivity issues (DELMIA Apriso, 2016).