G.L.

BAJAJ COLLEGE OF TECHNOLOGY AND MANAGEMENT

GREATER NOIDA
MINI PROJECT- 1

ON
“Smart Luggage Bag”
TOWARDS THE PARTIAL FULLFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(Dr. A.P.J. Abdul Kalam Technical University, Lucknow, Uttar Pradesh)

By
BISWAJEET JENA
(Roll No.- 23MBA159)
Session: 2023-24
Under the Supervision of
MR. VIJAY KUMAR SINGH

1
 DECLARATION

I hereby declare that the work presented in this report entitled “MINI PROJECT-1", was carried out by me.

I have not submitted the matter embodied in this report for the award of any other degree or diploma of any

other University or Institute. I have given due credit to the original authors/sources for all the words, ideas,

diagrams, graphics, computer programs, experiments, results, that are not my original contribution. I have used

quotation marks to identify verbatim sentences and given credit to the original authors/sources.

I affirm that no portion of my work is plagiarized, and the experiments and results reported in the report

are not manipulated. In the event of a complaint of plagiarism and the manipulation of the experiments and

results, I shall be fully responsible and answerable.

Name: Biswajeet Jena

Roll. No.: 23MBA159

(Candidate Signature)

2
 GL BA JAJ
COLLEGE OF TECHNOLOGY & MANAGEMENT
Approved by A.I.C.T.E. & affiliated to Dr. A.P.J. Abdul Kalam Technical University

CERTIFICATE

This is to certify that Mr. Biswajeet Jena, Roll No. 23MBA159 has

undertaken this project titled “Smart Luggage Bag” for the partial fulfillment of

the award of Master of Business Administration degree from Dr. APJ Abdul Kalam

Technical University, Lucknow (U. P.).

I wish him all the best for his bright future ahead.

Date:

Project Supervisor

Department of Management Studies

Head of Department

Department of Management Studies

3
 Acknowledgment

First of all, I would like to express my gratitude to almighty God to enabling me to

complete this report on “Smart Luggage Bag.”

Successfully completion of any type of project requires helps from a number of persons. I

have also taken help from different people for the preparation of this report. Now, there is

a little effort to show my deep gratitude to that helpful person.

I convey my sincere gratitude to my Academic Supervisor Mr. Vijay Kumar Singh.

Without his kind direction and proper guidance this study would have been a little success.

In every phase of project, his supervision and guidance shaped this report to be completed
perfectly.

I would also like to thank my friends to give a clear idea about different specimens of
technology innovations.

Biswajeet Jena

4
 TABLE OF CONTENT

Sr.No. Topic Page No.

1 Introduction 6-8

2 Problem Statement 9-15

3 Propose a solution 16-22

4 Features 23

5 Market Strategy 24-27

6 Feasibility Analysis 28

7 STP Analysis 29-32

8 Business plan in detail with proposed budget 33-34

9 Challenges 35-36

10 Conclusion 37

11 References 38

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 Introduction

The Smart Luggage Bag is an innovative travel solution designed to enhance the

overall travel experience by integrating cutting-edge technology into traditional

luggage. This state-of-the-art luggage is equipped with intelligent features that

cater to the modern traveler's needs, combining convenience, security, and

connectivity.

Key Features:

1. GPS Tracking: The Smart Luggage Bag comes with built-in GPS tracking

technology, allowing users to locate their luggage in real-time using a dedicated

mobile app. This feature provides peace of mind and minimizes the risk of lost or

misplaced bags during travel.

2. Digital Lock System: Say goodbye to traditional padlocks. The luggage

incorporates a secure digital lock system that can be controlled via the mobile app.

Travelers can lock and unlock their bags with ease, enhancing both security and

accessibility.

3. Integrated Charging Ports: To address the common issue of low battery levels

during travel, the Smart Luggage Bag features integrated USB charging ports.

This allows users to charge their devices on the go, ensuring that smartphones,

tablets, and other electronic devices remain powered throughout the journey.

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4. Smart Compartments and Organization: The interior of the bag is intelligently

designed with modular compartments, making packing and unpacking a breeze.

The mobile app assists users in organizing their belongings efficiently, ensuring a

stress-free travel experience.

5. Weight Sensors and Alerts: The luggage incorporates weight sensors that help

users adhere to airline baggage weight limits. The mobile app sends alerts if the

bag exceeds specified weight thresholds, preventing potential overage charges.

Market Potential:

The Smart Luggage Bag caters to a growing market of tech-savvy travelers who

seek convenience, security, and connectivity in their travel accessories. With the

global travel industry steadily rebounding, the demand for innovative luggage

solutions is on the rise.

 Competitive Advantage: Our product stands out in the market due to its
comprehensive set of smart features, user-friendly mobile app, and robust build

quality. The integration of advanced technology not only enhances the user

experience but also addresses common pain points associated with conventional

luggage.

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 Financial Projections: Initial market research indicates a strong demand for
smart luggage, and we anticipate robust sales growth within the first year. With

strategic marketing campaigns, partnerships, and continuous product

improvements, we project a steady increase in market share and profitability over

the next three years.

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 Problem Statement

In the rapidly evolving landscape of travel and technology, conventional luggage

solutions no longer meet the demands of modern travelers. The traditional luggage

industry lacks innovation and fails to address the growing needs of consumers

seeking convenience, security, and connectivity in their travel experience. This

vacuum in the market presents an opportunity for the introduction of smart

luggage bags. Travelers often face challenges with traditional luggage, including

lost items, limited security features, and difficulty in tracking.

There is a need for a smarter, more efficient luggage solution to enhance the

overall travel experience Current luggage offerings lack the integration of smart

technologies that can enhance the overall travel experience, provide security, and

streamline the way people manage their belongings during journeys.

This gap in the market presents a compelling opportunity to introduce a

revolutionary Smart Luggage Bag that leverages cutting-edge technology to

address these pain points and redefine the travel experience. Traditional luggage

bags are struggling to keep pace with the demands and expectations of modern

travelers. The need for smarter, more technologically advanced luggage solutions

is evident as travelers seek convenience, security, and connectivity throughout

their journeys. This creates a compelling opportunity to develop and introduce a

cutting-edge.

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The traditional concept of luggage has become increasingly outdated and

insufficient to meet the dynamic needs of modern travelers. The conventional

suitcase or travel bag, while functional, lacks the integration of smart technologies

that have the potential to significantly enhance the overall travel experience.

Recognizing this gap in the market, there is a compelling opportunity to introduce

a revolutionary Smart Luggage Bag that leverages cutting-edge technology to

address various pain points and redefine how individuals approach and engage

with travel.

The primary drawback of traditional luggage solutions lies in their static nature.

They are essentially containers for belongings without offering any additional

value beyond storage. In contrast, a Smart Luggage Bag would seamlessly

integrate technological advancements to provide an array of features aimed at

improving the overall travel experience.

Security is a paramount concern for travelers, and the Smart Luggage Bag could

incorporate state-of-the-art security measures. This might include biometric locks,

GPS tracking, and RFID technology to ensure that belongings are not only secure

but also easily traceable in case of loss or theft. The inclusion of such features not

only enhances peace of mind but also contributes to a more seamless and stress-

free travel experience.

Moreover, managing belongings during journeys can be a cumbersome task, and

traditional luggage solutions offer limited assistance in this regard. A Smart

Luggage Bag could feature smart organization systems, perhaps employing IoT

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(Internet of Things) technology, to help users keep track of their items. This could

include sensors that alert users if they are leaving an item behind, or a mobile app

that allows remote monitoring and control of the luggage. The integration of smart

technologies could also extend to practical considerations like weight sensors,

helping travelers stay within airline baggage limits, and even climate-controlled

compartments for items that require specific temperature conditions.

In addition to these functional aspects, a Smart Luggage Bag could enhance the

overall travel experience by incorporating entertainment features. This might

include built-in charging stations for electronic devices, Bluetooth speakers, or

even a display screen for in-flight entertainment. Such features would not only

cater to the practical needs of travelers but also add a layer of convenience and

enjoyment to their journeys.

The evolution of travel and technology has created a significant gap in the market

for innovative luggage solutions. The introduction of a Smart Luggage Bag,

incorporating cutting-edge technology, has the potential to redefine the travel

experience by addressing security concerns, providing intelligent organization

solutions, and enhancing overall convenience and enjoyment for modern travelers.

As the travel industry continues to embrace technological advancements, the

demand for such revolutionary luggage solutions is likely to grow, making this a

compelling opportunity for those seeking to revolutionize the way we approach

and engage with travel.

Smart Luggage Bag that addresses the following key challenges:

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 Inefficiency in Traditional Luggage: Conventional luggage options lack features
that could significantly improve efficiency, such as real-time tracking, weight

monitoring, and automated organization. Traditional luggage typically relies on

manual tracking methods, such as paper tags or barcode scans, which can be prone

to errors and delays. In contrast, modern luggage solutions can incorporate GPS

and RFID technology for real-time tracking. Conventional luggage does not have

built-in mechanisms for monitoring weight. Travelers often face challenges at the

check-in counter, needing to reorganize or redistribute items to meet airline

weight restrictions. Traditional luggage lacks automated organization features.

Travelers often struggle with maintaining a neat and organized suitcase during

their trips. Innovative luggage designs can incorporate compartments with smart

sensors or even robotic assistance for automated packing.

 Security Concerns: Instances of lost or misplaced luggage, as well as concerns

about theft, highlight the need for a secure and intelligent luggage solution that

can offer robust anti-theft measures and tracking functionalities. Lost or

misplaced luggage is a common issue faced by travelers, often resulting from

mishandling during transit or errors in the baggage handling process. Theft is

another significant security concern, as airports, hotels, and other travel hubs can

be potential hotspots for criminal activities. In response to this threat, an effective

luggage solution should integrate robust anti-theft measures. This not only

inconveniences passengers but can also disrupt travel plans, especially when

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 essential items are contained within the misplaced luggage. To address this

concern, a secure luggage solution should incorporate intelligent tracking systems

that provide real-time updates on the location of the baggage, allowing travelers to

monitor and locate their belongings with ease.

 Limited Connectivity: Existing luggage options fail to provide seamless

connectivity with smartphones and other devices, hindering travelers from

accessing crucial information about their luggage in real-time. In today's digitally

connected world, travelers rely heavily on their smartphones and other smart

devices to access crucial information. In today's digitally connected world,

travelers rely heavily on their smartphones and other smart devices to access

crucial information. This limited connectivity means that travelers are unable to

receive real-time information about the whereabouts of their luggage, causing

inconvenience and potential anxiety. There is a growing demand for luggage

solutions that seamlessly integrate with smartphones and other devices, allowing

travelers to monitor and manage their belongings effortlessly. The absence of

such functionalities in traditional luggage options further emphasizes the gap in

meeting the evolving needs of modern travelers.

 Technological Obsolescence: The rapid advancement of technology has left

traditional luggage solutions outdated, making it imperative for a new entrant to

capitalize on the latest innovations to stay ahead of the curve. Technological

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 obsolescence occurs when existing technologies are rapidly surpassed by newer

and more advanced innovations. In the case of luggage solutions, the pace of

technological advancement has rendered conventional methods and designs

outdated. These may include basic designs with limited features, such as manual

zippers, simple handles, and standard compartments. With the rapid evolution of

technology, modern consumers have come to expect more from their luggage,

seeking innovative features that enhance convenience, security, and overall travel

experience. The rapid advancement of technology has indeed rendered traditional

luggage solutions obsolete. To thrive in this dynamic market, new entrants must

embrace the latest technological innovations to offer products that cater to the

evolving needs and preferences of modern consumers, ensuring they stay

competitive and ahead of the curve in the luggage industry.

 Environmental Impact: The luggage industry is under growing scrutiny for its

environmental footprint. The production and disposal of traditional luggage

materials contribute to waste and pollution, demanding a more sustainable

approach. The luggage industry has come under increasing scrutiny due to its

significant environmental footprint, with concerns arising from both the

production and disposal stages of traditional luggage materials. The conventional

manufacturing processes and materials used in luggage production contribute

substantially to environmental degradation, prompting a growing demand for a

more sustainable approach. These processes often involve the consumption of

finite natural resources, energy-intensive manufacturing methods, and the release

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of harmful emissions and pollutants into the air and water. To address these

environmental concerns, there is a growing call for a shift towards more

sustainable practices in the luggage industry. This includes the exploration and

utilization of eco-friendly materials, such as recycled plastics, organic fabrics, and

other biodegradable alternatives.

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 Propose a solution

Smart bag is designed in such a way that it is a lightweight luggage bag which is

modified with advanced electronic technology for the purpose of advanced

security system and also made the human travelling facilities more efficient with

less effort. Auto trailing technology which reduces human efforts. Wherever the

people travel they used to carry luggage, especially to the airport all of them

dragging out their heavy luggage perhaps trailing of the bag is a very difficult task

for old peoples. If the bag follows passengers by utilizing the human following

concept then the entire problem gets vanished. The following technique is

implemented using data taken from ultrasonic and IR sensor. The ultrasonic

sensors always measure the distance between the bag and the human by sending

sound waves and collecting the reflected waves when it tracks an obstacle.

Misplace or losing the bag is also avoidable using the proximity detection method.

Beyond this, it has feature of tracing and tracking the bag using GPS and GSM

and locate the accurate position of the bag. A fingerprint locking system is used in

this smart luggage bag. Recharging port is also provided in this smart luggage

bag. For recharging port an in built power bank is used. Recharging port mainly

used for the charging of mobiles phones and laptops.

There are a lot of applications to the luggage but all of them are not controlled

from the luggage instead the commands are sent from the mobile phone to the

luggage via Machine to machine communication. The mobile phone has pre-

installed application software with a pre-installed set of instructions. They wait for

16
the user to send the commands. After the microcontroller embedded inside the

luggage receives instruction from the user it acts accordingly. This can either be

for tracking its location and sending it to the user or sending the luggage weight

also the charge of the batteries and opening a lock from biometric and pin .

Operational Plan:

 Manufacturing or Sourcing Process

Clearly outline the manufacturing process if the product is produced in-house or

detail the sourcing strategy if it involves external suppliers.

Specify key production milestones, production capacity, and any technology

involved in the manufacturing process.

Address any contingency plans for disruptions in the manufacturing or sourcing

process.

 Supply Chain Management:

Map out the entire supply chain from raw material acquisition to final product

delivery.

Identify potential risks and outline strategies for mitigating these risks.

Incorporate sustainability considerations and ethical sourcing practices in the

supply chain.

 Quality Control Procedures:

Detail the quality control measures implemented throughout the production

process.

Highlight key quality checkpoints, testing procedures, and standards that need to

be met.

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Describe the process for handling and resolving quality issues.

 Inventory Management:

Outline the inventory control system, including methods for tracking and

managing stock levels.

Specify reorder points, safety stock, and any automated systems used for

inventory management.

Discuss strategies for minimizing excess inventory and avoiding stockouts.

 Partnerships and Collaborations:

Identify existing partnerships and collaborations critical to the operational

success.

Discuss the criteria for selecting potential partners and how these relationships

contribute to overall business goals.

Outline plans for expanding or optimizing partnerships in the future.

Product Development:

 Current Status of the Product:

Taking an overview of the product, including key features, specifications, and

market positioning.

Highlight customer feedback, sales data, and any relevant metrics that reflect the

product's performance.

 Future Updates and Improvements:

Outline a roadmap for future updates or versions of the product.

Detail planned enhancements, additional features, or modifications based on

market trends, customer feedback, and technological advancements.

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  Research and Development Plans:

Elaborate on the ongoing and future research and development initiatives.

Discuss the budget, timeline, and team responsible for R&D activities.

Explain how R&D efforts align with the company's overall strategy and goals.

The business model for a smart luggage bag involves creating a product that

incorporates technology to enhance the functionality and convenience of

traditional luggage. Here's a brief description of the business model for a smart

luggage bag:

 Product Offering:

Develop a range of smart luggage bags equipped with technology features such as

GPS tracking, built-in scales, USB charging ports, and RFID blocking for added

security.

 Target Market:

Identify and target tech-savvy travelers, frequent flyers, and individuals who value

convenience and innovation in their travel accessories.

 Revenue Streams:

Generate revenue through the sale of smart luggage bags both online and through

retail channels.

Consider additional revenue streams such as subscription services for premium

features, extended warranties, or accessory sales.

 Distribution Channels:

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Utilize a combination of online sales through an e-commerce platform and

partnerships with retailers to make the smart luggage bags easily accessible to

consumers.

 Marketing and Branding:

Implement a marketing strategy that highlights the technological features,

durability, and convenience of the smart luggage bags.

Leverage social media, influencers, and online advertising to create brand

awareness.

 Partnerships:

Explore partnerships with airlines, travel agencies, or online travel platforms to

enhance visibility and potentially offer exclusive deals or bundles.

 After-Sales Support:

Provide excellent customer service, including warranty support and assistance

with the smart features of the luggage to build brand loyalty.

 Supply Chain Management:

Establish a reliable supply chain to ensure the availability of products and timely

delivery to meet customer demands.

 Technology Integration:

Continuously update and improve the technological components of the smart

luggage bags to stay competitive in the market.

 Regulatory Compliance:

Ensure that the smart luggage bags comply with relevant regulations and

standards, especially regarding technology and air travel restrictions.

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  Sustainability:

Consider incorporating sustainable materials in the manufacturing process to

appeal to environmentally conscious consumers and align with global

sustainability trends.

 Data Security and Privacy:

Address concerns related to data security and privacy, especially if the smart

luggage bags collect and store personal information. Clearly communicate the

measures taken to protect customer data.

All the efforts are centered around customers and their needs so that we can

provide the best quality luggage bags that will yield total customer satisfaction.

We are also committed to delight and delivering beyond what is expected by the

customer. but also not causing much damage to our environment and by focusing

on the right needs of the customer.

Tracking systems were first developed for the shipping industry to track cargo.

First devices developed were passive. To obtain automatic and real time tracking

active devices are to be used. Muruganandham and P. K Mukesh proposed a

system that uses GSM/GPRS modem and GPS system to provide real time

tracking over the internet by TCP/113 connection through Java applications

developed specifically for it.

Fingerprint recognition technology allows access to only those whose fingerprints

that are pre stored in the memory. Stored fingerprints are retained even in the

event of complete power failure or battery drain_ These eliminates the need for

keeping track of keys or remembering a combination password, or PIN. It can

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only be opened when an authorized user is present, since there are no keys or

combinations to be copied or stolen, or locks that can be picked.

Proximity detection is used to keep yours luggage close. If someone unknowingly

took your bag and is strayed outside the range of your Bluetooth signal then alert

message will display on your mobile app. Then using real time GPS we can track

the bag. The connecting distance is fixed between the bag and mobile say 10

meters .

Nowadays luggage bags are basic and standard needs and want of customers in

the market in the first step in starting a successful market of the bag is to have an

innovative concept that appeals to the target audience, the female or male of age

group 15 to 64 years is the main consumer of the luggage bags market, the rise in

the popularity of premium luggage bags has been playing a vital role in the

luggage bags market as the working population is increasing the purchasing

power of the group and hence increasing the demand for the luggage bags. As

there is a convenience in the availability of brands under one platform especially

this reflects the style and personality of the person that's why I have come up with

the new and innovative luggage bags that do not only reflect the style and

personality of a person but also protects their bag from rip-off and robbery etc. So

that person should not worry about their expensive items if their luggage bags get

ripped off or lost due to any reason so from now on there is no need to worry

about any item if smart bags are in the market from now on.

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 Features

FingerPrint
Sensor
GPS Module

Mobile App

Smart
Digital lock Bag GSM Module

Power Bank
Bluetooth
Module
Weight sensors and
alerts

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 Market Strategy
 4 P’s of
Marketing

❖ PRODUCT
 Our luggage is a smart bag it is automatic or automation means by an electronic

gadget human intervention is limited most of the time everyone uses a bag for

travelling and track it everywhere. Our Smart bag back is a new brand which will

provide different variety of luggage bag to their customer we will offer such

product that will give self-confidence to persons and will give an elegant, classy,

fabulous look the bag which we will sell it will not only provide customer good

look but also ease and comfort too.

 There is a function in the our bag if the bag is lost the user get the location by GPS
locating system and throughout the travel period its location will be updated to the

database. The bag is locked through cell phone user need not utilize any keys or

any pins and biometric .Our objective is to make a person’s look more classy,

trendy, fabulous and safe the greatest advantage of this smart bag is the customer

can get to the location by GPS if a bag is lost.

 Highlight the unique features of your smart luggage, such as built-in GPS

tracking, integrated charging ports, and smart locks. Emphasize how these

features make travel more convenient and secure.

 Discuss the design elements that make your luggage stand out, and emphasize its

durability and high-quality materials.

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 Ensure that the smart luggage is compatible with common devices and platforms

for ease of use.

❖ PRICE
 Bags have segmented their market into a few segments that include young to

middle aged who want to belong to the society and feel a sense of importance.

 Smart bags are not exorbitantly priced it can be afforded by middle to higher

income group individual, we have priced our bag’s such that it does not become

unaffordable to the public but at the same time improve the self-esteem of the

individual when they own the product. The material used in making of bags are

off premium quality and we are focusing on the budget also that every middle

class can grab it the pricing of the bag were maintained as a brand still maintains a

supreme quality. Our smart bag is launching bags from Rs.4000 to Rs.15000 that

can be affordable for many customers.

 Smart bag tries to offer discounts time to time to enhance sale and keep our

customer happy.

 Break down the costs involved in manufacturing, distribution, and marketing.

Consider both fixed and variable costs.

 Decide on a pricing strategy, whether it's premium pricing due to advanced

features or penetration pricing to capture market share initially.

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 Plan for any introductory offers, discounts, or bundle deals to attract early

customers.

❖ PLACE
 Smart bag is optimizing it network to drive organic growth and profits. Luggage

bag has to type of distribution channel direct distribution and indirect distribution

channel. In direct distribution channel smart bag offers bags through various local

boutiques, local market throughout India and Departmental Store which have

separate section for bag amongst the high and product sections.

 The direct channel include the E-Commerce site that the company owns which

constitutes for quite a significant amount of its total sales it is to be sell online.

Smart bag is setting up its own stores this year.

 Identify the channels through which you will sell your smart luggage—online

platforms, retail stores, or a combination.

 Consider forming partnerships with travel agencies, airlines, or technology

retailers to expand your reach.

 Outline plans for expanding distribution geographically as your business grows.

❖ PROMOTION

 After having finalize the product it is essential to communicate with customers. I

also tell the benefit of my bag to the consumers also being a new brand I need a

face to whom the consumer can connect too. I advertise my bag on popular TV

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 channels, radio, magazines, newspapers and other print media channels. I also do

social media marketing on Facebook, Twitter, Instagram and YouTube along with

descriptive blogs about the product are also one of the effective strategies that

help to connect with customers.

 Smart bags is classic, trendy, fabulous and safe as it has many features as its

tagline is “wherever you are we stand by you”.

 Develop a strong online presence through a dedicated website, social media,

and e-commerce platforms.

 Create engaging content around travel tips, tech reviews, and smart

luggage features to attract and educate potential customers.

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 Feasibility Analysis

Market Demand -

After evaluating the demand for Smart Luggage Bag in market through surveys or market research now
we understand traveler’s needs and preferences regarding a good luggage bag which provide safety &
security, low price and tracking bag. .

Competitive Analysis -

Existing platforms like American Tourist, VIP, Sky Bag offering Luggage Bags which made by
traditional technology which can’t satisfy modern traveler’s needs and some companies like Samsonite,
Delsey, Away who made similar types of smart luggage bag offering high price in market which cannot
affordable by a middle class family. .

Technical Feasibility -

The technical feasibility of a smart luggage bag largely depends on the desired features. Integrating GPS
tracking, Smart lock system, mobile charging port, and app based monitoring is feasible with current
technology. Also factors like battery life, durability, and connectivity reliability should be considered for
a successful implementation which provide traveler’s better utility.

Operational Feasibility -

The operational feasibility of a smart luggage bag involves assessing how well it fits into existing
processes. Considerations include user adoption, maintenance requirements, and compatibility with travel
regulations. Addressing these aspects is crucial for the effective deployment and acceptance of smart
luggage in practical scenarios.

Financial Feasibility -

The financial feasibility of smart luggage bag depends on development cost, manufacturing expenses that
is around 2500, and potential market pricing of product that is around 4000 to 15000 which is very low
from competitors pricing. Factor such as competitive pricing, production scale, and ongoing maintenance
costs should be considered to ensure a viable and sustainable business model.

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 STP Analysis

STP analysis stands for Segmentation, Targeting, and Positioning, and it is a

crucial component of a business plan. Let's apply STP analysis to a business plan

for smart luggage bags:

 SEGMENTATION

 Demographic:
1. Divide the market based on demographics such as age, gender, income, and

occupation. Smart luggage bags may appeal to tech-savvy travelers, frequent

flyers, and business professionals.

2. Identify the key demographics of your target market. For smart luggage bags, this

could include frequent travelers, business professionals, tech-savvy individuals,

and luxury travelers.

3. Targeting frequent travelers, business professionals, and tech-savvy individuals.

4. Age group: 22-45 years.

5. Income level: Middle to high income.

 Psychographic:
1. Consider the lifestyle and preferences of potential customers. Smart luggage bags

may attract individuals who value convenience, efficiency, and the latest

technology.

2. Understand the lifestyle and interests of your target audience. For example, people

who value convenience, technology, and modern travel solutions.

3. Focus on individuals who value convenience, technology, and the latest trends.

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4. Appeal to tech enthusiasts who enjoy gadgets and smart devices.

 Geographic:
1. Segment the market based on geographical locations. Consider regions with a

high concentration of travelers or those with a tech-oriented Consumer

base.

2. Urban and suburban areas with high travel activity.

 Behavioural:
1. Consider the behavior of your customers. Are they early adopters of technology?

Do they prioritize features like security and connectivity in their luggage?

2. Targeting individuals who travel frequently for business or leisure.

3. Emphasize the need for hassle-free travel and the convenience of smart features.

4. Usage-based

5. Frequent flyers who require durable and reliable luggage.

6. Business travelers who need organized compartments for work-related items.

 TARGETING
 Based on the segmentation analysis, identify the most attractive segments for the

smart luggage bag business. For example, the target market could be frequent

business travelers aged 25-45 with a high income and a preference for tech-driven

products.

 Consider the size and growth potential of each segment to prioritize them. The

goal is to select segments where the product can meet specific needs and demands

effectively.

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 Choose specific segments that align with the product. For example, if your

research indicates that business professionals who travel frequently are a

significant segment, target them.

 Consider the size and profitability of each segment. Prioritize segments that have

the most potential and align with the unique features of smart luggage bags.

 The primary target audience is frequent travelers, especially those who appreciate

technology and want a seamless travel experience.

 Secondary targets may include business professionals who need a blend of

functionality and style in their luggage.

 POSITIONING
 Clearly define the unique value proposition of the smart luggage bags. Highlight

features such as GPS tracking, smart locks, USB charging ports, and other

technological innovations.

 Emphasize the convenience, security, and efficiency that the smart luggage bags

offer compared to traditional luggage options.

 Develop a compelling brand image that resonates with the target market. Position

the product as a must-have for modern, tech-savvy travelers who seek a seamless

travel experience.

 Define how your smart luggage bag will be perceived in the market. Highlight its

unique selling propositions (USPs) such as integrated technology, security

features, design, or any other distinctive characteristics.

 Communicate the value proposition clearly to your target audience. For instance,

emphasize how your smart luggage bag makes travel more convenient and secure.

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  Unique Selling Proposition (USP)

 "The Smart Luggage Bag - Redefining Travel Experience."

 Emphasize features such as GPS tracking, smart locks, USB charging ports, and

integrated technology for a stress-free travel experience.

 Brand Image:

 Position the brand as innovative, stylish, and reliable.

 Communicate a sense of luxury and sophistication through design and materials.

 Value Proposition:

 "Effortless Travel Companion: Stay connected, organized, and secure with our

state-of-the-art smart luggage."

 Price Positioning:

 Position the smart luggage as a premium product, justifying the higher cost with

advanced technology and quality materials.

 Communication Strategy:

 Utilize online platforms, social media, and influencers to showcase the tech

features and stylish design.

 Highlight testimonials and reviews from frequent travelers who have experienced

the benefits of the smart luggage.

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 Business plan in detail with proposed budget

Smart bags Business Start-up

cost

Funding Estimated

Investor Funding

Owner 1 50,60,000

Other
50,60,000
Total Investment

Loans Bank

loan1

Bank loan 2

Total Loans

Other Funding

Grant

Other

Total Funding 50,60,000

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Costs Estimated

Fixed Costs

Advertising for opening 10,00,000

Basic Website 10,000

Business card/ Stationary 50,000

Computer Hardware/ Software 3,00,000

Machines & Equipment 20,00,000

Office Furniture/ Fixtures 4,00,000

Operating Cash 5,00,000

Starting Inventory 8,00,000

Total Cost 50,60,000

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 Challenges

Creating a business plan for smart luggage bags can be an exciting venture, but it
also comes with its set of challenges. Here are some potential challenges you
might face:

 Technological Dependence:

Smart luggage bags heavily rely on technology such as GPS tracking, Bluetooth
connectivity, and smartphone apps. Dependence on technology introduces the
risk of technical failures, software bugs, and the need for regular updates.

 Regulatory Compliance:

Smart luggage bags may involve various electronic components, which can be
subject to different regulations and certifications. Ensuring compliance with
international standards and regulations can be a complex and time-consuming
process.

 Data Security and Privacy Concerns:

Collecting and managing user data, especially with features like GPS tracking,
raises concerns about privacy and security. Ensuring robust cybersecurity
measures to protect user data is crucial to building trust and compliance with data
protection laws.

 Battery Life and Charging Infrastructure:

Many smart luggage features require a power source. Balancing functionality

with battery life can be challenging, and users may find it inconvenient if the bag
requires frequent charging. Additionally, the availability of charging
infrastructure, especially during travel, could be a limiting factor.

 Costs and Affordability:

Integrating technology into luggage can significantly increase production costs.

Striking a balance between offering advanced features and keeping the product
affordable for the target market is a constant challenge.

 Market Competition:
The market for smart luggage bags is competitive, with both established brands
and new entrants vying for market share. Differentiating your product from others
and creating a unique value proposition is essential for success.
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 Global Logistics and Distribution:

If you plan to sell your smart luggage bags internationally, dealing with global
logistics and distribution can be complex. Navigating customs, shipping, and local
regulations can pose challenges, impacting your supply chain and overall business
operations.

 Consumer Education:

Educating consumers about the benefits and proper use of smart luggage features is
crucial. If users are not familiar with or do not understand the technology, it may lead
to dissatisfaction and underutilization of the smart features.

 Rapid Technological Changes:

The technology landscape evolves quickly. Keeping up with the latest advancements
and ensuring your product remains competitive can be challenging. Regular updates
and improvements may be necessary to stay relevant in the market.

 Environmental Considerations:

The production and disposal of electronic components in smart luggage can

contribute to environmental issues. Addressing sustainability concerns, such as using
eco-friendly materials and implementing recycling programs, is increasingly
important in today's market.

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 Conclusion

Smart bag is an innovative carry on suitcase that makes life easier and smoother.

Carrying luggage is the main difficulty faced by each and every passenger. Here we

try to solve the dragging of luggage difficulty and also providing better security and

intelligent features that suitable for modern era. In this project we developed a new

low cost human following technology to assist low cost consumer product

implementation, so that the overall production cost of an automatic user following bag

will be less. The inbuilt power bank can provide sufficient power and at the same time

share power to users gadgets like smartphone, laptops etc.

By addressing the current limitations of traditional luggage solutions and offering a

comprehensive range of smart features, our business aims to revolutionize the travel

industry. The integration of technology into luggage not only meets the demands of

modern travelers but also sets a new standard for convenience, security, and

connectivity in travel experiences.

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 References

• The above-mentioned project is a complete thought of mine that is being described with the
help of some sources. They are:

• https://www.tomsguide.com/best-picks/best-smart-luggage

• The Pictures used into the Project are copyright free images and the Source is Google.

• The Table of Content, Certification and Declaration form are taken from the Mini Project
Guidelines.

• The definition of each subpoint has taken from Quora.

• I also take some content from ChatGPT.

So, here’s a complete list of things that I have taken as a source to have some knowledge about the
project. I used them to explain my project and to make it successful.

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