SUBMITTED BY:GROUP -6

NISHA KUMARISATYAJIT CHANDRA

KUMAR GAUTAM SINGHSOURAV JAGNANIDEBVRAT GORAIN

RANJAN KUMAR GIRI

A CASE STUDY ONBEAN BAG CHAIR

BUSINESS PROPOSAL

1) CONSUMER ANALYSIS

Bean bag chairs were aimed to the university students market.

The students were the consumer .The consumer group divide into two groups.

Freshmen Segment The Upperclassmen

Freshmen Segment:

First opportunity to live away from home.Experimentation with new ideas, new products.Priority of having fun and enjoying themselves.Portraying their personality with products.Lesser space in hostels.Low priced Bean bag chairs more attractive.Look for enjoyment in their room.

The Upperclassmen

Living off-campus in private and personalized residence.

Reflecting their personality.Desire for comfort, relaxation and pressure

free.Managing within their prescribed budgets.All features are considered for the product.

2) MARKETING STRATEGY

Marketing strategy will cover Product Price Promotion Distribution

Product : The Bean Bag chair

The Bean Bag chair is an alternative to the traditional chairs.

Highly comfortable.Stylish look.Act as a functional furniture.Low in price.Catering to all needs.Easy to store and low space occupying.

Marketing Strategy regarding product.

Two consumer groups.Bean bag chairs having separate bag and stuffs.Freshmen segment: The L-shape Bean Bag chairMuch smaller in size.Easy to keep in low spacious hostel room.Almost a look of traditional chair.Serve Many purposeThe Upperclassmen: The Pear shaped Bean Bag chairMore sophisticated design.Very comfortable and functional.Accommodate three ways of sitting.More classic look

Marketing strategy regarding pricing

Low pricing policy to be followed.Low Margin with profit.Roller leather used to cut down cost and save

wastage.High quality of vinyl to be used.Price around 210$ for pearl shaped Beanbag

chairs.Price around 180$ for L-shaped Beanbag

chair.

Marketing strategy regarding promotion

Word of mouth.Billboards and wall painting used.Pamphlets distributed in hostels.Campaigns in colleges.Awareness camps in university campus.Advertisement in western news with smallest

size.

Marketing strategy regarding distribution

Direct selling method adopted.Range of products made available.Temporary selling stall used in peak time.Selling outlet stalls used in college feast.Salesmen kept to visit hostels and take order.Samples shown to students with testing

quality and durability.

3) Analyzing Trade option

Selling to local furniture stores:High cost reduces profit margin.Easy availability.Increases the market.Increases the customer base apart from students.Very less time required to be devoted by

businessmen.Selling to campus outlets:High cost.Focuses on student.Easy availability.Market Penetration.Less time required by businessmen.

………..continued

Direct selling to the studentsSupply made to the students hostels.cut down the cost.Salesmen to be introduced.Non-availability of direct competition.Catering to the students need.

4) Alternatives available

Product: Bean bag chairs1)Ball shape 2) Pear shape 3) L-shape chair

MaterialLeather- a)Skin b)RollVelour/Cotton/CanvasVinyl- a)High b)Medium c)Low

Advertisementa)Campus press(western news)b) Radio- i) CKSL 1410 ii)CIQM103.1FM

Distribution: selling toa)Local furniture's store b) Campus outletc) Directly to students.

Financial implications:

Pear shaped Bean bag chair +skin leather+high vinyl quality will cost more than 211$, the most costly combination.

L-shaped+Rolled leather+high vinyl quality will cost around 115$, acceptable to most students.

Ball shaped+Rolled leather+low Vinyl quallity will cost least around 100$.

Most preffered optimum combination for the students will be the Pear shaped+rolled leather+high vinyl qulaity which going to cost more than 160$.

5) Strategy chosen: As lee and Michael

Two type of Bean bag chairs to be manufactured:L-shaped- Freshmen segment.Pear shaped- the Upperclassmen.

Material usedRolled leather.High quality of Vinyl.Promotion strategy:Advertisement: Western news with one-eighth of a page. Radio: CIQM 103.1FM-30 sec. add, evening timing on Saturday-

Sunday.

Distribution Strategy:Direct selling to students

6) Future growth plan

All three product to be manufactured with variety of quality including the fabrics.

Selling from retailer’s shops.Covering all universities of Canada.Coming on prime time with 30 second add

everyday on both radio services.Retail outlets in university campus to be

used.Campus press: western new with half page

add.

THANK YOU!