Northwestern Ideas

End User

Executive Summary Swank is a design that captures a growing green market, which stems from the environmental social movement. The bags proposed capitalize on this growing trend by incorporating solar technology. The analysis of historical data over the past 30 years and from consumers surveyed in 2008 shows that while the country has entered a recession, consumers are still willing to spend money on products they find innovative and practical. Although risky, our approach of product development will help Butler Bag address a need that has not been served in the market by competition and will guarantee increased profits and an exclusive advantage by 2010.

Inspiration Society is currently experiencing a period of drastic change in the way consumers are viewing their environment, their finances, and in their purchase decisions. The Green Movement has taken hold and people are becoming increasingly concerned about their impact on the environment. The steep downturn of the economy has instilled the “less is more” attitude into the minds of consumers, who are now more tentative with their dollar. Technological innovations continue to revolutionize the everyday American life, increasing convenience and efficiency. It is a time of change, keeping in mind the recent Presidential election and that the voice of Generation Y is being expressed more than ever before. Our inspiration comes from an identified need of our target market: combining previously mentioned elements along with keeping up with the technologically savvy consumer of this generation. The incorporation of eco-friendly textiles, technological innovation, and an adjusted price-point creates a product that is innovative and will take hold with this targeted consumer in 2010.

Technology

Product

Today’s consumer places higher value on being in control of finances and living a green lifestyle, rather than the past years’ focus on having money and living a luxurious lifestyle. Consumers currently in their 20s (Generation Y) are going to be the ones most affected by this shift to simplicity. Generation Y is rebelling against the conspicuous consumption seen by their parents and moving towards a more thrifty and practical lifestyle. Trends in Generation Y’s behavior: ･ Because consumers often learn their lifetime shopping habits during their developmental years, members of Generation Y may be permanently shaped by today’s lesson of tough economic times. ･ More young environmentally conscious, leading to the “going green” movement. i. Ex: recyclable totes and bags, green fabrics, solar energy, etc. ･ They are more inclined to buy less, making those purchases they do make worthwhile and smart. ･ There is an emotional connection to the green movement.       Based on these trends our target market is a female professional, whether she is a CEO of a company or just entering the work force, ranging ages 22-35, she is fashion forward while still conscience of her environmental footprint. She is the eco-friendly fashion Millennial and part of generation Y, the most crucial market to capture in the years to come, as they currently make up 34% of the population.

SWANK Large Overnight

Large Bag

For environmental enthusiasts, solar paneled clothing and handbags are emerging as a hidden current for 2010. This technology is being featured in products such as apparel, backpacks, and handbags. Northwestern Ideas has incorporated this technology into its forecast for Butler Bag. This innovation is addressing a need that has not yet been met by Butler Bag or its competitors. Product research has supported the consumer need and desire for this type of product feature. The solar technology will help improve the efficiency of charging electronic devices such as cell phones, I-pods, and even laptops while saving significant amounts of wasted energy by carrying them around in the solar paneled bags. It's estimated that five percent of all electricity in the United States is wasted powering devices that are not in use. • This figure could rise to 20 percent by 2010, according to the Department of Energy.

Satchel

Clutch

• In the next two years, we expect our target market to continue their trend of environmental consciousness, while still needing to meet the needs of a technologically innovative and fashion-forward world. The eco-friendly fashion Millennials generation will be at 80 million strong in the year 2010, with and expected $200 billion in direct purchasing power.

Competition While our competitors have been successful in the past, currently it seems they may be leaving their consumer behind. They are raising prices in an economically unstable time, and have not shifted any of their product line to be more environmentally conscious regarding materials or manufacturing. Our analysis has identified these as important to the current consumer, and has been addressed in our forecasted product in eco-friendly textiles and lower price-points.

QuickTime™ and a TIFF (LZW) decompressor are needed to see this picture.

Price Points

Context

Social:

• Barack Obama’s landslide victory in the US presidential election proved the hypothesis that his campaign was instigating a liberal, social, and youth-driven movement. • With the recent release of many environmental awareness documentaries such as An Inconvenient Truth and The 11th Hour, in conjunction with high profile celebrities speaking out about sustainability (ex. Brad Pitt & Leonardo DiCaprio), it is apparent that the American public is becoming increasingly aware of environmental issues and making changes in their behavior to accommodate a healthier planet.

58

Most influential factor in decision-making 88 process when73purchasing a handbag. 72 49

38

32 2

11

23 4

1

0

We acknowledge the risk being assumed by introducing a product that is not widely available in the handbag market. However, because of the considerable opportunity for success, it is a risk that needs to be taken, and if successful, may revolutionize the standard in the handbag market. Consumers are increasingly driving the direction of fashion, and this target market’s rising demand for an environmentally friendly and functional product has been met by this line of bags.

Political: • The 2008 Presidential Election resulted in a win for Barack Obama: the first AfricanAmerican President of the United States of America. He vows to “ensure 10 percent of our electricity comes from renewable sources by 2012, help create five million new jobs, and save more oil in the next ten years than we currently import from the Middle East and Venezuela combined” and that’s just his energy plan. • The U.S. House of Representatives and Senate now both hold a democratic majority. Analysts have noted that over time, stocks perform better under Democratic administrations.

• Entertainment companies such as Netflix and TiVo have empowered viewers to watch television and movie programming how and when they want. The demanding consumer can now be more efficient, even when it comes to leisure activities. • The world’s top five social networks currently boast more than 370 million users, according to recent figures from the internet traffic monitor comScore. Online social networking websites and online dating sites, such as MySpace, Facebook, and eHarmony, have exploded and are a common way for people to interact. • Analysts suggest that the future of social networks will be in one crucial area, mobile services.

Clutch: $150

• After reading the FAQ on the Butler Bag website, it is evident that the consumer is asking for a single-strapped bag within their brand, as there are currently no bags with this option. Two of the Swank bags have this option the large bag and the sachel. •On the interior of the large-sized bag and the overnight bag is a concealed, padded laptop compartment that zips into the lining. Its dimensions will be 12”x17”, large enough to house an average-sized laptop.

Color Palette

• Student groups are involving themselves more in politics, taking on such issues as same-sex marriage, the Iraq war, sweatshops, etc.

• Apple's iPod revolutionized the way music is listened to and the clip-culture popularity of Google's YouTube has brought digital video streaming to the laptops and desktops of the world, transporting endless information immediately.

Satchel: $250

Large Bag: $300

• Between the lining and the exterior will lay a lightweight solar panel that will function as an electronic device charger. This will be discrete and not visible on the exterior. The large sized bag will have 2 solar panels and will be able to charge more than one electronic device at a time.

• ASTM International, one of the largest voluntary standards development organizations in the world, announced the formation of ASTM Committee E60 on Sustainability. Some other top companies rethinking their environmental impact include Apple, Saturn, and Johnson&Johnson, among others.

Cultural:

Large overnight: $375

Prototype Survey Results

Materials • This particular prototype will use vegan materials that are environmentally conscious and cruelty free. • It appeals to more than one market and the quality of the fabric is also superior in the eyes of consumers. • Vegan leather

• Japanese Paper (vegan leather with crinkle-like texture) • The thinner property of this material will allow for UV rays to efficiently penetrate though the solar panel

Concerns that factored into responses: • Bulkiness • Strength Style Excessive weight

Conclusions The culture of 2008 is all about technology; social networks, youtube, online dating, and the speed at which we are able to communicate through the Internet on our cell phones are all reasons that social and political movements are capable of gaining momentum. People today are exposed to so much more knowledge and information every second than they have ever been before and this has opened the eyes of the conscious consumer to be more aware of what their hard earned money is being spent on. We are now seeing the emergence of a huge “green” movement and once America resolves some of it’s current financial issues there is no reason this movement will not increase it’s growth. Another important trend to consumers is the impossibly fast speed in which new developments and products enter the market, with the craze of PDAs and iPhones it is obvious that consumers are searching for everyday products that will help to increase their quality of life as well as making it more convenient. With all of this considered, Northwestern Ideas has designed a bag that we feel addresses a need in our target market that has not yet been reached. Not only do we want to make this handbag convenient for students and young professionals to transport a laptop, but we also want to provide them with a technological innovation of which they may be unaware. Out of the 131 people that were surveyed regarding this prototype, 53% admitted they would be interested in purchasing a handbag with a laptop compartment. The handbag we have designed is made from environmentally friendly, vegan leather, which is made from a polyurethane. This material appeals to consumers who are concerned about their environmental footprint as well as purchasing products that are cruelty free. The bag is large-sized which holds the non-visible solar panels as well as the option of a discreet and padded laptop compartment. The non-visible solar panels have the ability to charge electronics while they are hidden in the bag itself. The data collect show the target market we have chosen does not fit with the price point that the handbag deserves. It is apparent to our team that we need to complete more extensive surveying to gather more data in order to better identify our target market. However, we feel that the people we have surveyed will be apart of our target market come 2010.

Reasons people said no: Already own a laptop bag Might be too heavy • Do not own a laptop Do not travel with laptop (too risky) di scree t

Economics:

Which of these price levels would you most likely buy a bag

• 1980 is the only other year that consumer confidence has dipped so low and 2 years after that recession unemployment rates dropped and federal debt decreased. The Conference Board is predicting that unemployment rates will rise in the next 2 years. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.

2% 17%

Chanel/Louis Vuitton/Gucci ($600 to $3000)

Coach/Dooney and Bourke ($250 to $1000+)

56% Guess/Betsey Johnson/Betseyville ($75 to $300)

25%

Forever 21/Target (less then $75)

The projection for the second quarter of 2010, which is close to when these bags would hit the market, is a positive GDP of 3.0, which is a staple growth percentage.

Both economic context and product aesthetics were taken into account in the creation of this color pallet. 1980 and 1988 were both years that experienced a similar economic situation to that which we are in today and history shows that in the 2 years following a recession color trends are deeper, muted, and more neutral tones.

Jessica Durnwirth Leanne Goldstein

[email protected] [email protected]

Kelly Hughes

[email protected]

Jessica Kenny

[email protected]

Melanie Weber

[email protected]