Cover & Carry is a one-stop shop for protective coverings fit for any electronic device. We offer customized cases from preselected materials and designs, our company stands out by allowing
customers to create new products from their personal belongings.
A pure play business, Cover & Carry will have no bricks-and-mortar storefront and our manufacturer-direct model will focus on creating one-to-one relationships with customers. Our target is composed of heavy electronics users, from the young adults entering college or the workforce to the middle-aged professionals with multiple gadgets they want to cover. We hope to position Cover & Carry as as a high-quality, high-value brand, distinguishing ourselves through our personalized shopping experience and devotion to customer
service.
3. EXECUTIVE SUMMARY
Turn old fabrics into new favorites. Cover & Carry provides a way for
people to integrate their belongings with new products, transforming an item of their past
into something fresh and original that they created.
Cover & Carry is a one-stop shop for protective coverings fit for any electronic device. While other
businesses offer customized cases from preselected materials and designs, our company stands out by allowing
customers to create new products from their personal belongings.
A pure play business, Cover & Carry will have no bricks-and-mortar storefront and our manufacturer-direct
model will focus on creating one-to-one relationships with customers. Our target is composed of heavy
electronics users, from the young adults entering college or the workforce to the middle-aged professionals
with multiple gadgets they want to cover. We hope to position Cover & Carry as as a high-quality, high-value
brand, distinguishing ourselves through our personalized shopping experience and devotion to customer
service.
Cover & Carry’s 30 IT, Creative, and Marketing employees will be managed by 3 executive board members.
While our unique business concept will allow us to save on production costs, we need approximately $42,000
to cover start-up materials, machinery, website development, facilities, and other costs.
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4. CONCEPT
The concept behind this new business venture is creating a
customized product through a unique service:
Cover & Carry allows customers to turn their favorite material – whether
an old pair of jeans, team jersey, sentimental blanket, or any other kind of
fabric – into a tailor-made cover for their laptop, iPod, phone, camera, or
any other digital device. This incorporates the “Do-It-Yourself-Design”
(DIYD) system, which puts the customer in the driver’s seat when it
comes to creating the product they want.
Our service will also allow users to choose from in-stock fabrics to create a customized cover without sending in
their own materials. As the idea of customizable laptop cases is not an original one, we will differentiate ourselves by
providing greater customizability, a more user-friendly online experience, along with more education and marketing
content on how users can take advantage of this service. In the future, we will consider expanding our target market
beyond the individual electronics users to include consumers such as:
• colleges & schools
• sports teams
• businesses
• clubs
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5. Business Model:
The pure play business model will be adopted, as Cover & Carry will have no bricks-and-mortar
shopfront. This directly complements our main model as a “manufacturer-direct business,” which
aims to create personal, one-to-one relationships with our customers.
The manufacturer-direct model takes advantage of the web’s powerful ability to allow us to reach
customers directly, thereby compressing the distribution channel and reducing costs by eliminating the
middlemen.
In addition, through this model we can closely monitor sales, inventory purchased, the general
industry climate, effectiveness of advertising efforts, and commissions paid to affiliate advertising.
From this information, a Return On Investment (ROI) can be established and used to later refine or
expand the business.
Our manufacturer-direct model will focus on the key areas
of efficiency: customer service and customer preferences.
Through excelling in these key areas with our customers, we
anticipate a strong word-of-mouth channel to develop through
our target market.
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6. MARKET ANALYSIS
Market Segmentation:
As Cover & Carry is a provider of electronics
accessories, we want to target people who are
heavy users of electronics.
According to studies conducted by
the Pew Research Center:
• 71% of teens and 77% of adults have a cell phone
• 74% of teens and 46% of adults have a computer
• 60% of 12 and 13-year-olds have a computer
• 73% of 14-17-year-olds have a computer
• 75 %18-24-year-olds have an mp3 player
• 66% of 18-29-year-olds have a laptop or netbook
• 56% of 25-29-year-olds have an mp3 player
• 55% of 30-49-year-olds have an mp3 player
• 20% of people 50 or older have an mp3 player
7. Target Audience:
The previous statistics tell us that our target audience of heavy electronics users range from
14 to 50-years-old. Since the target is so big, it needs to be broken up into smaller segments:
• young adults aged 14-25
• people aged 25-50+
The main difference between these two groups is the fact that the younger group is more
likely to be in school full-time and not yet financially independent. The second group is more
likely to be working full-time and self-sufficient.
Their Voice:
“ My name is Amy, and I am an 18-year-old high school
senior. I just got a new laptop to use as I finish up this year
“ My name is Thomas and I am a 36 year old sales associate.
I use my laptop and Blackberry a lot and want to protect
them while I am on the go. I am not a fan of the pre-made
options, and would rather spend the money to make one I
”
and go to college. I want my computer to be protected really like.
since I know my parents spent a lot of money on it. I also
want a case for my iPod. I don’t want them be just plain
cases. While I was cleaning out my closet, I found a bunch
of clothing and blankets that I really like but don’t use
”
anymore.
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8. Customer Profile:
Our target lives in North America and has disposable income. They consume a lot of media, especially
electronic-based. Some websites they visit regularly include Myspace, Facebook, LinkedIn,YouTube, and
Twitter. Many also frequent several blogs.
Our target market is people who want to protect their electronics while still maintaining a sense of style
and individuality. They value customer service and the ability to customize products to their own specific
needs and aesthetic.
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9. Competitor Analysis:
company overview strengths weaknesses
Timbuk2 Bags • mainly internet-based retailer • many varieties of bags • no cases for mobile
• recently opened a retail store such as messenger style, devices/mp3 players
in San Francisco backpacks, & laptop • must choose from
• offers custom bags sleeves pre-selected materials
• distributes products to inde- • lifetime guarantee for DIY bags
pendent retailers across the • no DIY laptop cases/
country sleeves
Personalized Laptop • internet based retailer • bulk discounts • minimum quantity
• offers customizable laptop • many options requirements, so not
Sleeves
sleeves good for individuals
• must choose from
pre-selected materials
Waterfield • internet based retailer • made in San Francisco • only options for di-
• offers quality electronic cases • high-quality materials mensions & color
• many varieties of cases • must choose from
for many devices pre-selected materials
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10. BRAND POSITIONING
“Differentiation is the process of adding a set of meaningful and valued differences
to distinguish the company’s offering from the competitors’ offerings (Kotler and Keller, 2006).
[It] is what a company does to the product, as opposed to positioning, which is what it does to
the mind (Strauss, 202).”
Product Differentiation:
Our product is the only one that allows you to send in your own material
(or choose from our selection of fabrics on-hand) and create a new, custom
product based on a variety of options. Because no other company allows
such customization, this will be Cover & Carry’s main selling point. By
giving the customer the ability to make and preview their own electronic
cover online with our options, we are creating a one-to-one relationship
with each consumer.
Channel Differentiation:
The Internet functions as the communication and transaction channel for
Cover & Carry. People anywhere in the world or at any time of day can
access our site and, thus, our product. Our highly-personalized experience
could only really succeed online, since the Internet gives consumers the Strauss, Judy, and Raymond Frost.
ability to feel products out visually or through reviews before actually E-Marketing. 5th ed. Upper
purchasing them. Saddle River, NJ: Prentice Hall,
2008. Print.
11. Service & Personnel Differentiation:
Our company will have round-the-clock online customer service
through email and instant-messaging and the website will also provide
a phone number for service calls. Because of our emphasis on one-
to-one relationships, we need consultants to handle customer
inquiries, such as questions about the process of sending in their
belongings and what options would work best with their material.
Despite this need to in-office personnel, it is still cheaper and more
efficient than operating out of a brick-and-mortar location.
It is extremely important for our customers to trust us
because we are, in essence, taking something of potentially
strong emotional meaning or even monetary value and
changing it into something else. We need customers to be
assured that we are here to serve them and help turn their
ideas into reality. It must be clear that it is 100% the cus-
tomer’s idea, their unique product.
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12. Image Differentiation:
Cover & Carry’s website is also experience branding, because the product is not the only
thing that a consumer receives from visiting our site. The whole process – the first step of which
can take place entirely on the consumer’s own – ultimately makes the experience special for each
shopper:
1. Material Decision: customer decides what pair of jeans/baby blanket/jer-
sey they want to transform OR customer chooses from in-stock materials
2. Product Decision: customer chooses what product (ex: laptop sleeve) to
create with their material
3. Design Process: customer creates their product (choices for laptop cover
may include size, type of protective covering, type of closure, etc.)
4. Review: customer views draft of their product (received from virtual de-
signer if using personal materials or received automatically if choosing from
in-stock material)
5. Payment & Delivery: customer pays by credit card or PayPal and receives
their product in the mail
Our company wants consumers to come back to our website, if they get a new technological
product or if they simply enjoyed our work. Repeat purchases and word-of-mouth marketing are
essential to the success of our brand.
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13. “Positioning Strategies help to create a desired image for a company and
its products in the minds of a chosen user segment. Positioning is the process of creating
this image, and a position is the resulting view of the firm or brand from the consumer
perspective (Strauss, 202).”
Strauss, Judy, and Raymond Frost.
E-Marketing. 5th ed. Upper
Saddle River, NJ: Prentice Hall,
2008. Print.
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14. Product Attribute
Positioning:
The product our company specializes in is inherently
unique because it is created from the customer’s
personal belongings and design preferences. We can
also add initials or a logo to their design.
Benefit Positioning:
Cover & Carry provides a way for people to integrate their belongings with new
products, transforming an item of their past into something fresh and original that
they created. This adds tremendous sentimental value to an otherwise simple
product.
Since Cover & Carry will conduct business with domestic wholesalers and per-
form all production in-house, consumers can also feel good that they are buying
an American brand.
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15. Integrator Positioning:
We hope that customers will choose us first when they want a one-of-a-kind
electronic protector that is made for them, by them.
Cover & Carry’s website is a consumer’s one-stop shop for protective coverings for all their
portable technology needs:
• laptops
• cellphones, iPhones, & other smart
phones
• iPods & mp3 players
• cameras
• digital book readers (iPad, Sony
Reader, Amazon Kindle)
• portable DVD players
• speakers
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16. Technology Positioning:
Our website will feature many pull-down menus, allowing people to choose the type of
product and the product attributes they want. For example, we will have the following
options available for laptop sleeves:
• product type: sleeve, backpack, messenger bag, etc. certain layout or
design of case, shaped like something, rectangular)
• size: 13”, 15”, 17” MacBook & PC models
• type of protective covering: none, vinyl, clear or colored plastic
for keyboard protection
• type of closure: none or slide-in, loose flap, buttoning flap, string,
3-sided zipper, 2-sided zipper, etc.
• extra design requests: if customer has specific ideas about layout,
wants their product shaped like something, etc. they can leave comments/
instructions
As previously mentioned, there will also be a virtual designer that will send the customer
drafts of their personalized cover for review and confirmation. If a customer takes the
in-stock material route, virtual models will be available for view at each step of the
customization process.
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17. User Category Positioning:
Different portions of the website will target different types of consumers. These include:
• colleges & schools
• sports teams
• professional organizations & brands
• hobbies & interests
• kids’ area
A simple category breakdown is not only helpful to
the user but, from an outside perspective, it can help
Cover & Carry draw business from other sites. For
instance, our future plans to become affiliates with
sites such as etsy.com – which features the specialty
products created and sold by individual designers –
would include advertising on existing hobby/interest-
related product pages to pull customers to our own
respective categories.
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18. MARKETING PLAN
Advertising:
Since our target market is made up people age 14 to 50, we must have a range of media channels to
advertise our new business. The target market spends a lot of time online – browsing, buying, and
networking. We will advertise on web sites that have the most user traffic:
• digital device review websites (ex: www.notbookreviews.com)
• Facebook
• Twitter
• LinkedIn: this networking site will hopefully be very profitable, as it is for people in the workforce
and those searching for job opportunities; our target market is made up of people in or entering the
business world who are heavy users of electronics.
• blogs: our target market is filled with bloggers; we will advertise on the top blogs within categories
such as business, technology and style, which include:
- iblogbusiness.com
- thesartorialist.blogspot.com
- technospot.net/blogs
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19. Public Relations & Promotions:
Cover & Carry will also have Facebook and Twitter
accounts as well as a blog.
• Facebook:
- general company information
- product pictures
- post contests to win coupons
- “Before & After” customer-designed product shots
• Twitter:
- post news (upcoming promotions and service
options available to customers, new products,
contest results, company information, etc.)
- post links to contests on the Facebook
- post links to webpage and blogs
• blog:
- satisfied customer comments & stories
- pictures of upcoming products
- news, updates, results of contests
With these media communication strategies, Cover & Carry
will gain awareness and traffic from the target market.
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20. OPERATIONAL PLAN
Organization Structure:
As a start-up business, Cover & Carry will initially conduct most operational activities – from material and
equipment storage, to production and distribution, to customer service – from one physical office-warehouse
unit located in New York. Business growth permitting, a similar unit will be developed on the West Coast in
the future. As an e-business, we can also handle some to all of customer interactions remotely once business
is established.
Management Plan:
Based on a projected 10,000 customers served in the first year of sales, Cover & Carry will need the following
personnel as broken down by department and activities performed:
department activities performed personnel needed
Management • executive tasks 3
• wholesaler & distributor relationship -- managing 30 employees
management
IT • website management 5
• customer service (website, payment, -- servicing an average 40 customers per week
delivery queries)
Creative • production 20
• design & customer service (provide -- servicing an average 10 customers per week
drafts in design process)
Marketing • advertising, promotions, etc. 5
• social media management
• affiliate relationship management
21. Capital Requirements:
While receiving fabrics materials unit price calculations total cost
from customers allows fabric such as $3.50 per yard/unit $3.50 x 1,000 units $3,500
Cover & Carry to save on • foam lining
production costs, we still • cotton spandex
need bulk fabrics for lining all • cotton flannel (prints)
products and for creating the • vinyl
more traditional customized thread $1 per 500-yard spool $1 x 1,000 spools $1,000
covers (ones without the trimmings such as $0.75 per piece $0.75 x 500 pieces $375
customer’s personal belongings • designer buttons (a piece can be a bag
as the main material). • appliques of 10-50 buttons
depending on size)
The table to the right provides
shipping $350 -- $350
a rough outline of start-up
• supplier flat rates (ex: $50
capital requirements. Buying
for purchases over $600)
materials wholesale from local
• shipping materials
companies like trimfabric.com
will be most economical. equipment
industrial machines w/ $1,500 per unit $1,500 x 20 units $30,000
accessories
(material pricing based on average
trimfabric.com, esupplystore.com listings)
rent & utilities $1,000 per month $1,000 x 6 months $6,000
website development $1,000 -- $1,000
(equipment pricing based on average
sewingmachineoutlet.com listings and $42,225
allbusiness.com, )
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22. Revenue Breakdown:
Cover & Carry will break down revenues to cover costs as follows:
5%
20%
marketing
overhead
equipment/materials
75%
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23. Workflow Diagram:
• correspondence between
• customer payment through credit
design & production teams
card or PayPal
• physical product creation
• storage of customer information in
C&C database TRANSACTION
• retrieval of material from customer
PRODUCTION
• design process CUSTOMER
• review with C&C
EXPERIENCE
virtual designer
• quality testing
SHIPMENT • packaging
• distribution
• order received
• follow-up email (discount offers, CONFIRMATION
customer satisfaction inquiry)
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