Forgein Trade University Operations and Project

Group 3 Management
Class: Fuon-m3-a
Le Vuong Khanh Duy, Nguyen Huy Phuc, Nguyen Huy Phuoc, Le Viet Bach,
Ngo Manh Tan Duc

BRONX BACKPACK
“We gotcha back”

1 . Company background

Bronx is an urban functional backpack. One of the main advantages of the Bronx is we have a
young and talented designer team who is very flexible and catch up with trends really fast in
order to design fashionable backpacks which attract young people. In addition, the backpack is
equipped with anti-theft protection thanks to built-in magnets, and is also made of 600D water-
repellent fabric.
Our Story
Growing up with a passion with rap and hiphop culture. We want to change how people see it in
a positive way. People who buy these backpacks will carry our spirit, passion and the love for the
hiphop culture to the world by the most fashionable way.

2. Target customer
- Price range : 50 $ - 70$
- Color : 8 main colors : Gold, light silver, mint, orange, black, light blue, purple

- Size : 6-10 litres

- Occasion : school, photoshoot, daily
- Gender : female and male
- Age group : 12 – 25 years old
- Material : cotton, Polyester, 600D water-repellent fabric
Our product mainly targets young customers and hiphop culture. With a fashionable design and
various colors we planning to sell to young people with good fashion sense. A minimalism
design help customer can use our backpack in almost every occasions and it apply for every
gender.
We also produce a bigger size of our product and use Water – resistant fabrics that is commonly
use for travel backpack to help travellers look more outstanding from others.

Frequency of Purchase
Every year, our company will release 2 collections Summer and Winter . In the middle of the
year, we will release a special edition of our product which collab with others luxury brand such
as Gucci, Hermes, Louis Vuitton with limited edition for higher class customer.

20% customers will comeback twice a year to buy a new design backpack
70% customer will comeback after 2 years after the product worn-out
5% customer will only wait for the limited edition bag to release
5% customer which is our VIP will buy all the newest and rarest product through out the year

4.Competitors analysis
There are 3 main competitors in the Vietnam market which are Adidas,Nike,Kraken
a) Adidas
Advantages:
 Have a large variety of design and features to approach more customers like athletes,
elderly, kids,etc.
 Affordable price
 Have a long live reputation
 Strong in marketing
Disadvantages:
 Is an international brand, will lose local customer when a new loccal brand is born.
 Doesn’t catch up quick with trends
  Affordable backpacks from Adidas usually have a basic design which can’t attract
fashion lovers
b) Nike
Advantages
 Have a long live reputation
 Collab with many famous high end brand to produce fashionable products
 Strong in marketing
 Create trends for fashionista
Disadvantages:
 More expensive than most of sport brands
 Most of the customers are athletes
 Fashionable products from Nike usually are extremely expensive because it was hyped up
by famous influencers
c) Kraken
Advantages
 Uses high quality materials to produce which also increse durability
 Have a good reputation around the globe
 Suitable for mostly all occasions
Disadvantages
 Prices range too high for the majority of Vietnamese students
 The design doesn’t catch up with trends
 Have a formal design which will struggle to attract fashion lovers and stylish customers
 5. Product Design

Product detail :
 30.5 x 14.5 x 42.5cm/12 x 5.7 x 16.7in
 Outer: 80% cotton, 20% polyester
 Trim: 100% calf leather
 Back panel: 100% polyamide
 Lining: 60% cotton, 40% polyamide
 Top handle, adjustable shoulder straps
 Two exterior zip pockets, one interior zip pocket
 Laptop compartment
 Two-way zip closure
 Polished metal hardware

We also collab with Gore-tex : waterproof, breathable fabric membrane and registered

trademark of W. L. Gore & Associates. Invented in 1969, Gore-Tex can repel liquid water while
allowing water vapor to pass through and is designed to be a lightweight, waterproof fabric for
all-weather use. It is composed of stretched polytetrafluoroethylene (PTFE), which is more
commonly known by the generic trademark Teflon. The material is formally known as
the generic term expanded PTFE (ePTFE).

6. Manufacturability and Operation Strategy

Labor : 20 workers working 10 hours a day salary 3 millions vnd per month = 60m vnd / month
Factory rental : 20m vnd / month
Machine : 80 milions vnd

Marketing

- Facebook and instagram ads cost : 3 millions per month for 20 months we will engage
1000000 potential customers
- Tiktok KOLs about 250 thousands vnd per video
- Blog : 200 thousands vnd per post
- We will make meme on Twitter for free marketing

Retailer
Our company make most profit from retailer store . For every consignment, we give distributor a
20 % fixed
We also open 3 retail stores in Hanoi, Da nang and Ho Chi Minh city which cost about 15
millions vnd per month for rental fees.

7. Industry Analysis
Product type:
Based on the product type, the market is segmented as canvas, polyesters, nylon, leather, and
others. The polyesters segment held the largest share of the market in 2019. The dominance
of the segment is mainly because of polyester offering higher strength compared to other fabrics.
The waterproof nature of the fabric makes it durable for manufacturing sturdy school bags.
 Distribution Channel Type :

Based on the distribution channel type, the backpack market is segmented as offline and
online. The offline segment held the larger share of the market in 2019, whereas the online is
likely to be the faster-growing segment. The dominance of the offline segment is mainly due to
the increasing number of supermarkets and hypermarkets offering more options for consumers to
make a perfect purchase decision.

Some of the major Backpack manufacturers are :

 NIKE, Inc.
 Puma SE
 Delsey SA
 Targus Inc.
 VIP Industries Ltd.
 Oasis Bags
 Herschel Supply Company
 Samsonite International SA
 VF Corp.
 LVMH Moët Hennessy - Louis Vuitton

END