Team bulla final

BULLA

Team Bulla, David Zilberman, Aaron Kelley, John Robinson

Our initial idea was to develop a small men’s handbag targeted at the professional male between 25-35, above average income looking for a trendy bag to carry his must have belongings.

The men’s handbag market is estimated at $1B/ year.

The Idea!

WHERE WE STARTED

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After Customer Development Process:

• It’s a company and not just a product BUT you need to start with a HOT product• Men do want a way to carry their iPad and other personal items BUT

professionals today still need to carry their laptops • SO based on customer input… we shifted our initial product to a

MODULAR messenger bag that includes a REMOVABLE folio case.• New product is UNIQUE, INOVATIVE and addresses a BROADER USE-

CASE

The Idea!

WHERE WE ENDED UP

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The Team:Team member

nameBackground Expertise role

David Zilberman The founder and CEO of iRazzle Web marketing & ecommerce

Customer engagement and Product Design

Aaron KelleyPh.D.; business development

management; experience with complex chemicals and materials.

Analytics, business development

Marketing and web design

John RobinsonMerchandising, product

development & supply chain management experience

Product development and sourcing Sourcing

Team Bulla

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Team Bulla, David Zilberman, Aaron Kelley, John RobinsonBusiness Model Canvas Version 1

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• Conduct a dozen interviews with potential customers in our demographic segment

• Interview retailers -20 men’s fashion and/or accessory stores

• Visited competitor bag manufacturers Timbuktu & Rickshaw

• Pivoted from men’s handbag to satchel to a bag for the iPad

BMC V1, So here’s what we did

What we did:

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• Resegmenting an existing market with a niche product(s) driven by branding and marketing– Defined the addressable target = 190K Bags/$47.5M

• Sales clerks at the retail stores we visited indicated that there is consumer demand for “men’s iPad bags”.

• Men who we’ve interviewed expressed an interest in customization and willingness to pay a premium

• Price points range from about $100 for canvas to around $300 to $400 for leather smaller bags and can range as far as $500 to $600 for mid-size leather messenger bags.

BMC V1, So here’s what found

Lessons Learn:

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• Recruited a designer to join TeamBulla!• Launched low-fidelity website to test funnel through simulation• Launched web surveys• Got out and engaged potential customers to learn about their willingness to purchase online or retail• Examined customization strategies by meetings with industry experts including head of fashion department @ CCA, visiting bay area bag retailers/manufacturer and operations and product development professor @ Haas


What we did:

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Survey response: • 48% willing to purchase online• 15% Likely, Very Likely to Purchase within next 3 months• 42% would consider possibly purchasing within next 3 months Customization: • Keep it simple; control the variable configurations by offering pre-

set options • Customers are willing to wait for customization although if the wait-

time is too early it may not be perceived as unique whereas, too late may risk a loss of interest

• Consider a short supply chain by sourcing with a local manufacturer


Lessons Learn:

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Folio

• First round of designsThe first round of designs were created based on our design concept

• Second round of designsThe second round of designs were created based on feedback from potential customers that was received from the first round of designs

After several calls with the designer and a ½ day of hands on design iterations incorporating feedback from potential customers

We developed what we believe represents the customers needs/wants in a novel design with a folio type bag that will hold an iPad and several other items (phone, business cards, glasses, etc.). The folio can then fit into a second bag which expands its carrying capacity to include a full sized laptop and power cables.


What we did (1 of 2): 1

2Folio &

Messenger bag

Messenger bag

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• Mapped ecommerce revenue model

• Sent our project out to bid to 7 manufacturers for bidding. – Country of Origin: China, Hong Kong, United States– BOM ranged in price from

• Folio Range $5 to $27, average $9.40• Messenger bag Range 7.80 to 41, average $18.81• Combined ranged from $12.8 to $68, average $40.4

• Web page - www.bullaboys.com. – Designed to understand customer acquisition costs by actual bag purchases.– Linked product images, which are similar to our design styles, to Amazon bags– Collect costing data to drive traffic to Bullaboys via Adwords, Facebook, LinkedIn, Google this combined with the actual conversion to purchases should give us a good estimate of acquisition costs.


What we did (2 of 2):

http://www.bullaboys.com/

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• Product designed with the customers inspiration can lead to imaginative solutions

• It is necessary to work more closely with the designer through the prototype building to ensure you are happy with the end product.

• For a start up – manufactures are motivated by charity or giving the little guy a discount. However, there are some who can offer insights and advice for navigating the mine fields

• Driving traffic to Bulla Boys– Top search terms: iPad Case, iPad Bag, Gifts for men, and Laptop bags– Cost per acquisition• Adwords: $1.62/CPC, .02%/CTR & 1.6%/CTR• Facebook: $.73/CPC, .034%/CTR, • LinkedIn: $2.00/CPC, .011%/CTR


Lessons Learn:

211

27 23 19 186 5 3

0

50

100

150

200

250 Top Search Terms (CTR)Tablet(0.02%) Man bags(1.6%) iPad case iPad bagGifts for men Laptop bags$1.62 avg. Cost Per Click

Concept Evolution

&

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1. What did you learna) Customer feedback is essential...by engaging the customer early and often will you

learn something. b) Get out engage the customer with prototypesc) The right survey will delivery valuable data. The wrong one can lead you hanging.d) The first design isn’t the design that is going to markete) Your key supplier may not see you as a key customer (p.s. don’t tell them you’re a

start up)

2. Yes, we believe there is a viable business here, but the work has only begunSelling a fashion product is as much about building a brand through marketing as it is about a inspiring designs

3. Do we want to purse this after the class?We’ll keep our day jobs but the lessons learn from this class and project will benefit each of us in our future endeavors

“So here’s where we ended up.”

“So here’s where we ended up:”

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A big thank you to our teaching team, designer, advisers, naysayers, and most of all our potential customers.

Special thank you to:Mike Corselli, Designer Saad Khan, AdvisorMichael Martin, AdvisorMark Richards, Advisor

A special shout out

BULLA

Team Bulla, David Zilberman, Aaron Kelley, John RobinsonFinal canvas walk through

Education

Team bulla final