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“Track your Pack”
Tucker Holman Loren Farber
William.Holman@colorado.edu Loren.Farber@colorado.edu
(847) 226­5112 (317) 525­5840

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Peter Erickson Corey Roth
Peter.Erickson@colorado.edu Corey.Roth@colorado.edu
(303) 478­0018 (860) 462­0863
Table of Contents ii-iii
II. EXECUTIVE SUMMARY _ TBD
III. INTRODUCTION SUB 1
1. INTRODUCING PRODUCT TO INVESTOR
2. MARKET APPROACH
A. TARGET MARKET
B. SERVICES PROVIDED
C. MARKET AND SERVICES
3. COMPETITIVE DIFFERENTIATORS
IV. DATA USED IN ANALYSIS _ TBD
1. DATA SOURCES
2. DATA CONTENTS
3. DATA ANALYSIS
V. LOCATION, LEASE, AND FINANCING PLAN​​_ SUB 1
1. BUSINESS OFFICE
2. WAREHOUSE AND SHIPPING
3. INFRASTRUCTURE
A. OFFICE EQUIPMENT
B. WAREHOUSE STORAGE
C. WAREHOUSE MATERIALS
4.FINANCING PLAN
VI. PRODUCT PLAN 4
1. PRODUCTS CATEGORIES 5
2. PRODUCT MENU (TABLE 6.8) 10
VII. SUPPLY CHAIN AND INVENTORY MANAGEMENT PLAN _ 11
1. INVENTORY MANAGEMENT STRATEGY 14

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2. STORAGE STRATEGY (DIAGRAM 7.1) 16
3. RECEIVING AND STORING PROCESSES 17
4. DELIVERY SCHEDULE (TABLE 7.2 & 7.3) 19
VIII. HUMAN RESOURCES STAFFING PLAN AND COST ANALYSIS _ 22
1. EMPLOYEES (TABLE 9.1) 23
2. COST ANALYSIS 24
IX. NON-HUMAN RESOURCES COST ANALYSIS _ 26
1. WAREHOUSE AND OFFICE SPACE 26
2. SHIPPING 27
3. PROPERTY INSURANCE/PROPERTY TAXES 27
4. UTILITIES (PIE CHART 9.3 & 9.4) 28
X. REVENUE ANALYSIS _ TBD
1. WHOLESALE COST BY SKU
2. RETAIL PRICE BY SKU
3. FORECASTED QUANTITY SALES BY TIME PERIOD BY SKU
4. GROSS PROFIT BY SKU
5. TOTAL GROSS PROFIT
XI. THREE-YEAR FINACIAL ANALYSIS _ TBD
1. INCOME STATEMENTS
2. BALANCE SHEETS
XII. PROCESS MAPS TBD
1. PROCESS FLOWCHART
2. RELATIONSHIP MAP, CROSS-FUNCTIONAL RELATIONSHIP MAP
XIII. FINAL SUMMERY TBD

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XIV. REFERENCES 29
II. Executive Summery
Odyssey LLC. Is unlike anything ever introduced as a company, we offer a
unique product within the backpack market. Located in Wichita KS, Odyssey can
send products all over the nation with our online ecommerce site that is easily
assessable. We offer a GPS backpack that the consumer can interact by logging on to
their profile through our site to track the past location of their Odyssey bag. There is
no other company that offers this kind of product, at Odyssey we plan to engage on
this opportunity and shift to the market trends with modern technology finalizing
an adventurous backpack. Our strategic supply chain and operations has our savings

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passed on to our customers who will be paying a fraction of what they normally do
for GPS devices and online code.
Our company solves the problem of tracking your hiking paths, a run, biking
and even answers questions like; did my kid get to school today? Odyssey consists of
the best quality material for its backpacks and specific designs to fit a specific
backpacks theme. Our growth rate in sales
We need to gain awareness in the hiking industry and we need your
expertise’s to get us there, we anticipate to demonstrate our environmental values
through advertisements and other sales promotion
III. Introduction
Odyssey LLC is an online e­commerce outdoor backpack company that offers a
large variety of backpacks that feature optional GPS location services. It focuses on
diversifying each bag design to fit individual consumer needs. Four entrepreneurs who
currently attend the Leeds School of Business at the University of Colorado, Boulder,

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founded this company. Odyssey plans to bring tremendous innovation to the backpack
world due to the unique services we plan to offer.
Odyssey is a limited liability corporation because we believe that it is the smartest
business model to pursue for many reasons. Being an LLC will allow our owners to not
be responsible for the business liabilities our company will accrue, this will also allow the
company to not pay taxes at the business level, and instead taxation will be passed
through to the owners’ individual tax returns. This will also give us the flexibility to
establish any organizational structure we prefer.
Odyssey’s mission is to differentiate each of our products to accomplish a
customer’s personal needs in a bag. After an Odyssey bag has been purchased, we hope
to build a relationship with the consumer in order to maintain close contact. Customers
have the option to include a GPS tracker that allows them to access unique features
directly from our website. The backpacks are also offered without a GPS tracker, to reach
a larger market share with decent amount of disposable incomes. At Odyssey, we build a
relationship with our customer that guarantees reasonable prices and high quality along
with the security of GPS location.
Odyssey is a metaphor that has inner meaning, representing our company’s
values, ethics, and mission to always fuel the adventure.​ ​This company was established

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with strong values. Our customers always come first, and our exceptional service goes
above and beyond customer expectations.
The founders recognized the large market for different kinds of bags, so they set
out to create the most efficient online marketplace for an adventure­oriented backpack. In
the past decade, E­commerce businesses have emerged as a large marketplace. On an
average day, around 76% of U.S. adults go online in search of products. Our main
competitor is ebags.com but we offer a new form of technology that they don’t have. At
odyssey we have a website login that users can track where they went today with their
odyssey backpack. Ebags.com offers a large selection of product lines including low­end
and poor quality bags that we don’t sell. Our entire product ensures quality with trusted
wholesaler and durable products that you can track. Ebags.com does not do what we
stand for and that is simply live the adventure to adequately satisfy our customers with an
online interaction of tracking where you were/are.
Odyssey is a Business­to­Consumer e­commerce company that will ship
backpacks and bags to individual consumers everywhere in the United States. Although
Business­to­Consumer is comparatively small, it has grown rapidly since 1995 and is the
type of e­commerce that most consumers are likely to encounter when searching the
Internet. Within the business­to­consumer category, we decided to approach using a
market creator business model.

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Target Market:
Odyssey has a primary focus on high­end products. When our customers buy our
products they know they are receiving a high­quality backpack for a reasonable price.
Our product line will be geared towards active/adventurous men and women from the
ages of 18 and up. They probably enjoy hiking, skiing, snowboarding, camping, running,
and biking. At Odyssey we thrive to provide the best quality and durability in our bags.
Our primary target market will be people with a household income of $50,000 and above.
The western states such as Colorado, Wyoming, New Mexico, and others are
home to the most national parks and conserved land in the United States. This geography
allows us to market to the residents of those states easily. The company located its
headquarters around this area for easier shipping and faster delivery service. We also see
tremendous opportunity and market potential for our products in the Midwest, East coast,
and Southern states.
Odyssey is introducing a child backpack that will allow parents to access the
location of their kid at all times. These packs are made for school children from the ages
of 3­12, whose parents who are constantly concerned with the location and safety of their
kids. We believe that parents all over the country will want the added security of the GPS
services included with the pack. Odyssey will market the children’s pack across the
country

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Overview of Services:
Odyssey specializes in all different kinds of products in the high­end spectrum of
backpacks designed to be comfortable and light. Odyssey will offer a child product line
of backpacks that come equipped with the GPS tracker resulting in better and more
sophisticated child safety. Those customers that
choose to purchase the version that comes equipped with the GPS tracker will be able to
access unique data and features directly from our online website. The GPS tracker
purchase includes a membership to our online website that lets our consumers locate
exactly where they have traveled on each journey with the bag. Hikers and people
interested in backpacking can access valuable information about the highest point you
reached, as well as the rout you took. Parents who purchase our child backpacks will be
able to visit our online website and have direct access to the location of their kids while at
school or at a friends house to ensure their safety and whereabouts.
After purchasing an Odyssey product, the customer will register that specific pack
through the website. The customer’s account will show each pack they own as well as the
location of each of those backpacks. Not only will the GPS tracker allow our customers
to track their own personal travels, but the travels of family and friends through a
network sharing cloud. A “friends” list will allow anyone you wish to see where you have

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been on your travels with the Odyssey product. This will create a fun way for our
customers to share their travels and adventures with their family or friends
Research has shown backpacks are lost everyday around the United States. At
Odyssey we know backpacks can be expensive, which is one of the best features of the
GPS tracker. Through the online account, a user can easily access the location of a lost or
stolen bag. Recovery of the bag will be much easier when the location of the bag can be
pinpointed.
Odyssey believes this market has a large potential for growth as well as room for
new innovation in products. There are currently several backpack companies that offer
similar products, but Odyssey is the first with a value proposition of a backpack that is
equipped with a small GPS tracker. Odyssey’s high quality bags can offer a competitive
advantage and create a solid market share with a organized business model.
Competitive Differentiators:
There are currently many different outdoor backpack companies in the
competitive environment such as Camelbak, Osprey, Dakine, Jansport, and The North
Face. The products Odyssey plans to introduce are fairly different from its competitors.
The GPS tracker is the main distinction between Odyssey and its competitors and is the
primary market strategy. There are currently no backpacks on the market that come
equipped with a GPS tracker.

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Another distinct differentiator between our company and our competitors is what
the GPS tracker allows our customers to access. Customers that purchase the backpack
equipped with the GPS tracker will be able to create
a profile and have access to unique data about their
day with the bag. Through the online website,
customers will be able to view specific details about
their location, distance, height, and time which adds
tremendous value to our total product offer. Offering this service to our customers allows
us to develop a long­term relationship with our customer and provide them with more
than just our backpacks.
The GPS tracker will also allow our customers who might lose or dislocate their
bag the convenience of being able to find the location of their lost bag via our website.
There is currently no other company that offers a child product line of backpacks that
include a GPS location service that gives parents the security of knowing their child’s
location. With the GPS tracker and online account services, Odyssey will bring its own
kind of innovation to the backpack industry.
IV. Data Analysis
The data sources in this project came from a variety of sources, but all of them
were accessed online. We utilized online search engines as well as databases to discover

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usable data. Some of the sources, especially those focused on broad topics, were easily
located and put to use. Some examples of this were finding the costs of office supplies
and the details for UPS shipping costs. Data such as this are general, easily accessible,
and simple to integrate into the project. These sources were very valuable and helped fill
in the broad details of the project.
Other sources were not as effortless to find and use. In these cases, the necessary
data was much more specific and took some searching to locate. These sources, when
found, were more valuable to the project because of the minute details that they added to
the project. Some examples of these included the monthly lease payments for the
warehouse, the interest rates for the financing business loan, and finding a manufacturer
for the GPS tracker device.
All of the data sources came from trusted websites. Whenever possible, websites
with an .org or .gov domain were used. These sites tend to be more reliable and the data
from them can be trusted. Most of the data sources we used came from the most relevant
website we could find. Often, multiple sources for the same data were found and
compared, and then the best option was used for the project.
In some cases, the specific sources we needed seemed to be a little unreliable. In
that situation, other sources that were similar but not perfectly applicable were used as a
comparison. For example, when finding the interest rates for the business loan, the first

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website gave a figure that did not seem to be accurate. After further research revealed that
similar loans had interest rates that were very close to the first rate we had found. This
gave us the confidence to proceed with the interest calculations and trust that they would
be accurate.
A lot of the data that we found turned out to be useful for the project. In some
cases, sources were even useful across different project sections. The biggest sections for
using data sources were the physical location and revenue analysis pieces. The physical
location section required an extensive search for a viable warehouse. Many different
locations across the Midwest were found and compared. Several different websites listed
and detailed warehouses that were open and available for rent. We had to narrow the
search to find a location that was both spacious enough for our levels of inventory, as
well as affordable enough for a small startup company. Eventually a suitable warehouse
was found, and the rest of the options were discarded.
We used several different step­by­step data analysis processes. One of which is
the process of elimination, in which data is gathered, compared, and then chosen or
discarded based on its merits. Another analysis method used was the multidimensional
drilling down and rolling up, in the case of the revenue analysis. For this process, the
initial data was found and reviewed, determining what aspects would be most necessary
to determine the levels of unit sales. Many times the data would be too broad, and it

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would need to be manipulated. The most way of doing this would be to drill down into
the data and eliminate the unneeded excess. This focused the data down to a point where
it was more relevant toward the calculations being performed. Rarely, the data would be
broken up into too many segments, and it was necessary to roll it up. This was true for the
data about students in elementary schools and the sales of the Trekker model backpack.
The data was divided in to sections based on what grade and type of school the children
were attending. These types of distinctions were unnecessary for the revenue analysis, so
all the segments of data had to be rolled up and combined to find the pertinent figures.

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V. Location
The proposed location of Odyssey backpacks has been carefully chosen to fit our
needs and add value to the total success of the E­commerce business. Located at 2657
West Esthner, Wichita, KS 67213, our company will not be forced to pay larger sums for
shipping costs because we will be selling high volume and this package price will reduce
costs. Wholesale orders will be easily delivered to our facility. Aside from the shipping
and receiving efficiency, the building is the perfect size to house both a warehouse and
office space. The total building size is 6,000 sq ft. split up into a 1,450 sq ft office and a
1,550 sq ft warehouse for each symmetrical duplex. We will operate our company by
renting the whole building providing a total of 6,000 sq ft. 3,000 for both office and

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warehouse space. The amount of space accessible and the three­year lease gives Odyssey
the utility to achieve anticipated success ultimately sufficient to meeting our needs.
This warehouse with office space is intended to do sales in an ecommerce
environment not specifying on location. The
location is perfect because there is no need to
pay expensive rent for high volume customer
shopping utility. Our IT is responsible for
making our web location at
www.OdysseyPacks.com attract high volume
traffic. The web designer is responsible for the attractiveness of the site. The location
outside of Wichita, Kansas is right next to thousands of hiking trails that our target
market is currently values. Our vision is to be located within the western culture of the
United Stats as more people participate in outdoor activities here and appreciate the
environmental area the Western land offers.
Wichita offers a medium size city in south central Kansas with about 390,000 in
population. E­commerce will expand the market because it’s easy to access the
online­based store where customers will not need to interact with our industrial facilities.
The online store will be designed for consumer behavior, as the site will be detailed and
intriguing for our customers.

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The design of the building has both a 3,000 square foot warehouse where we
anticipate over 3,500 pallets of inventory and an efficient order fulfillment area. This area
will be responsible for preparing orders for delivery and the 18’ warehouse door will be
opened to greet transporters. Certain employees will be engaged sewing on the logo and
installing the small GPS tracker onto the backpack within the west warehouse. To respect
our values and social responsibility we will be utilizing an environmental recycling
program for old backpack material within the warehouse. There are eight offices that are
included in the 3,000 square feet within which each of our employees will effectively
accomplish work. These offices will house our website design team along with the IT
professionals. It’s important to the Odyssey family that there is plenty of parking, clean
bathrooms, and respect for all employees and customers.
Price of both units is $3,025/month, a below average price among the alternative
locations that were suitable for our company in different locations. (Table 3.1) Thus, a
$36,300 investment per year must be paid to obtain the space we need to rent for the
company to succeed. Most locations with 6,000 SF average monthly rents were far
beyond $4,000 and did not offer easy access offices with warehouse space. We decided to
rent and not buy a building because of the liability and initial investment that buying a
building requires. The three­year lease will allow us to move in without difficulty and
adapt to this office/warehouse. Leasing rather than buying is an important decision and

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when making this decision taxes were in mind. Leasing is a safer and smarter agreement
whose advantages outweigh the disadvantages. We will not be forced to pay a large sum
of money to own the building nor worry about re­sale of the building.
The lease is a three­year agreement between Odyssey and Landmark Commercial
that includes many different liability, legal, and general guidelines that our company will
abide by. The initial security deposit investment to get the location is $9,000. We would
have to pay this as soon as we sign the lease. In addition to the security deposit we also
need to pay first and last months rent in full the first day of moving in. Thus, a $15,050
initial investment is required to obtain this building.
Shipping to each customer that ordered from our online store will be through
daily pick­up service from UPS. Daily pickup will ensure a UPS driver automatically
stops at our location once each business day, as scheduled, to pick up ground or air
shipments. The daily pickup customers receive UPS pickup per day at no extra charge for
packages that we can send throughout the week. This is an 11.30/weekly charge when
spending more than $75.00 or more of shipping cost per week. We will fall under this
category forecasting because we expect the majority of sales to be delivered
throughtrusted UPS priority delivery as the backpack are sold on our site. Our pick­up
time will be 3:30 PM daily guaranteed with the ability to track each package to its end
point.

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Location Square Ft. Price/SF Rent Per
Year
Lease
Time
Security
Deposit
Realtor
2657 W.
Esthner,
Wichita,
KS 67213
3,000 SF
Office
3,000 SF
Warehouse
Total
6,000
$6.50/SF/Year
$36,300 3 Years $9,000 Landmark
Commercia
l Real
Estate
18901 W
158th St,
Olathe,
KS 66062
3,750 SF
Office and
Warehouse
$8/SF/Year $30,000 2­3 Years $7,500 Prieb
Property
Manageme
nt
14648
South
800 West,
Bluffdale,
UT
84065
7,800​ SF
2,100 SF
Office
5,700
Warehouse
$7.54 /SF/Year
$58,800 4 Years $14,700 Knight
Realty
Company
761 E
Enterpris
e Dr,
Saint
George,
UT
84790
5,537​ SF
4316 SF
Warehouse
1,221 SF
Office
$6/SF/Year $33,222 3­4 Years $8,400 NAI Utah
South
Commercia
l Real
Estate
Services
Table 4.4 Building Selections
From Office/Warehouse Location

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Infrastructure:
Optimizing space in our office and warehouse is a​ ​primary concern as our
inventory increases and daily work takes it place. In a highly competitive world,
especially in the backpack industry, gathering the best costs and deals for warehouse and
office supplies will significantly affect our bottom line as the equipment list can be very
large. By finding the best deals on office and warehouse equipment, we believe at
Odyssey that it will prevent us from failing as a small business, and most importantly will
make us one of the most efficient backpacking companies in our industry.
In our 3,000 square foot office space, we found it necessary to supply the eight
office spaces with cost efficient and quality supplies. Fortunately EBay will be supplying
us with a lot of our office needs, as some of the best equipment at low prices has been
found there for mass quantity deals with free shipping. We want our employees to be
efficient, so we invested in 8 L­shaped desks can be purchased for $119.99 each. The
utilization of the L­shaped desks versus a regular straight desk will give our employees

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the ability to spread out their office supplies and materials accordingly, allowing them to
organize their files so no important information is lost in the process. Workdays can be
long and grueling for start up businesses, especially ours as we plan to conquer the
backpack market, so we decided to purchase comfortable office chairs. Instead of
purchasing regular ones for about $25 each, we struck a deal on EBay for 8 comfortable
chairs that support the back very well for $367.92.
We decided to spend more because we believe that the employees should work in
the perfect environment because it will promote hard work and boost their motivation.
For lighting, we used LED lights over the cheaper option of fluorescent lights for many
reasons. Fluorescent lights are hard to recycle, which can get expensive as recycling
becomes a large problem in the world today, Fluorescent lights also give off ultraviolet
rays (UV) that can cause health problems for individuals who are affected by light
sensitivity. We decided to do this because in the hiring process you never know what type
of employee will fill the position, and since they will be working a lot with those lights
choosing the healthiest product is important to us, as well as employee satisfaction. The
most important part in this decision included the fact that Fluorescent lights can last up to
10,000 hours, where LED lights can last up to 60,000 hours, saving us money and
another order of the harmful Fluorescent lights.

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At Odyssey we expect to have many clients and customers coming in to meet with
us for various business reasons. All equipment prices can be views on table 3.2 beneath
this section of where we will optimize the equipment. Every business office has a waiting
room, so we purchased two cheap, but comfortable couches for the waiting room. Other
office supplies that we found the best price for include a fireproof safe, calculators, a
postage meter, labeling machines so each employee can share one with another, two
whiteboards and 24 dry erase markers, eight paper shredders, and a photocopier. Safety is
also very important, so we found the best prices for alarm systems, fire extinguishers, and
first aid kits. We purchased a do it yourself alarm system to save money on the
maintenance costs, this alarm system includes a motion detector, wireless alarm system,
and a wireless keychain remote for the boss. Our ideas and information for our business
are valuable to us, so purchasing the $179.00 alarm system for both the office and
warehouse seemed necessary. The office supplies will end up being expensive, and we
were expecting that because there are a lot of important necessities for a successful
business to succeed.
Our office space needs computers and hardware accessories, we also saved money
buying the desktop computer and monitor separately. Some accessories included two HP
printers, a modem, eight surge protectors, and scanner. As we manage our money,
construct a website, protect our computer systems against viruses, and account for our

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own money, we spent ​$3,578.80 ​on Computer software. We used Norton Security for
our computers because most of the employees, including us, will be connecting our smart
phones to our work computers and Norton
Security protects against viruses on both
the computer and smart phone. This is an
important aspect to our business running
successfully because with all the hacks and
cloud breaches that have occurred recently,
a small business like us could not afford to
get valuable information stolen from us.
Another important software that we will use is the Inventory Management
software, which will help us, track when our inventory leaves the warehouse and
identifies if anything is missing. We decided to use Shopify as our Ecommerce software
because it has a easy to use website builder, unlimited bandwidth, and an optimized
search engine. Using Workbooks.com for $350 per month for a contact management
system, we end up saving a lot of money by choosing this product over the leading
product that costs $900 per month. We chose Workbooks off of a rating criteria website
that identified workbooks as a higher rating that the most expensive one, rating it an 8.40
out of 10.

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Communication is extremely important for the Odyssey team, in order to get the
best quality internet and telephone service we decided to use Comcast Business class for
3,236.40 over 3 years (89.90 a month). Comcast ensures that there will be no extra fees
and it is the best available package for businesses out there, as we would have to
purchase them separately if it was not for Comcast. The reason why we did not include
Cable in this was because our employees do not need to be watching TV at the office;
they can get their latest news source online if necessary. At Odyssey, starting as a small
business is going to be challenging because there will be thousands of clients to call, a lot
of marketing research, and managing finances can be tough, so we promoted multitasking
by purchasing eight cordless headsets for $127.92. This will allow employees to talk on
the phone while doing whatever assigned work they have at the same time, getting the
most work done as possible to set us ahead of our competitors. In order for our
employees to store information and process it, general office supplies are needed.
We found great deals for large quantity office supplies and even cleaning
supplies at Uline and Staples. These include Business cards, Envelopes, Stationery,
Printer Cartridges, CD’s, Floppy disks,
Pencils, fax paper, notepads, file folders,
staplers, and scissors, totaling to $1,162.72.
Uline and Staples helped save us a ton of

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money because we were able to buy most of these products in mass quantities for a
reasonable price.
Our warehouse consists of 3,000 square feet and we will be using all of it with the
mass amounts of backpacks we will be holding in our inventory. The software we bought
will track our inventory, but in order to optimize the fastest order process, many
important warehouse necessities will be used. To get our product right on the UPS truck,
we purchased electronic doors with motion sensors for our loading dock from Global
Industrial for $1,073. The reason why we are using electronic doors is because we want
to help the UPS driver do his job at the most
efficient level and at the same time get our
product to the destination in an orderly
process.
Accessing our large inventory will
call for rolling ladders because we are trying
to optimize the most space in our
warehouse. To move heavy inventory loads, pallet jacks will be
purchased on EBay for $129. Moving inventory to specific locations in the warehouse
will require labeling and labeling machines, so we purchased 4 for them for $107.52.
Moving the inventory will cause the need for a stock cart, at a low price on EBay, we got

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1 for $159.71. Other miscellaneous items include pry bars for $14.95 each, tape
dispensers for $9.98 each, box cutters for $10.95 each, Clipboards for $13.99 each, and
three banding dispensers for a total of $1273.50.
Table 3.2 Odyssey’s Infrastructure
Office Eqip. Quantity
Total
Price
Computer
Software
Quantit
y Total Price
Desk 8
$1,199.9
2
Word processing
software 1 $109.99
Off. Chair 8 $367.92
Virus protection
software 1 $94.99
File cabinets 3 $89.97 Accounting software 1 $189.95
Overhead and Work
lighting 10
$1,417.1
0
Desktop publishing
software 1 $119.95
Client seating 2 $799.98 Website Software 1 $129.97
Fireproof safe 1 $269
E­commerce
software 1 $2,844
Calculators 6 $22.50 Inventory Software 1 $189.95
Bookcases 2 $157.98 Office Supplies
Postage meter 1 $575.64 Business cards 20 $321.20
Worktable(s) 2 $267.98 Envelopes 15 $321.20
Labeling machine 4 $107.52 Stationery 1000 $150.00
Whiteboard/Marker
s 2 $178.00 Printer cartridges 30 $479.70
Paper shredder 8 $199.04 Flash Drives 5 $74.95
Photocopier 1
$1,099.9
9 Pencils 4 51.96
Wastebasket 8 $58.40 Cd's 8 $200

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Alarm system 1 $179.00 Cleaning supplies 1 $46.60
Fire extinguisher 1 $49.99 Fax paper 3 $74.97
First­aid kit 1 $42.99 Notepads 10 $84.90
Computer Equip. File folders 4 $39.96
Desktop computer 8
$3,039.9
2 Stapler 8 $63.92
Monitor 8 $719.92 Scissors 8 $45.76
Printer 2 $59.98 Warehouse Equip.
Modem 1 $69.99 Rolling Ladders 2 $335.90
Projector 1 $2,499 Boxes 100 $530.00
Digital camera 1 $109.99 Electronic Doors 1 $1,073.00
Surge protector 8 $156.64 Pallet jacks 1 $129
Scanner 2 $259.98 Stock Carts 1 $159.75
Communications Banding Dispensers 1 424.5
Telephone line 36
$3,236.4
0 Box Cutters 10 $109.50
Fax machine 1 $99.99 Tape Dispensers 4 $39.92
Cordless headset 8 $127.92 Clipboards 4 $55.96
Speakerphone 8
$1,039.9
2 Total
$26,994.0
2
Financing Plan:
Financing Odyssey is an important business decision that must be made for the
future success of our business. Therefore, we need to create a solid financing plan and
decide on the correct balance between debt and equity that would best fit our company.
Since we are a small start up, selling stock isn​’​t an option, so selling a stake of our
business to an investor will help us raise money. Our capital structure will be made up of
65% debt financing and 35% equity financing.

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We will acquire a $350,000 initial investment from investors to cover the initial
costs of purchasing and stockpiling inventory. 10% of the equity financing will come
from our families and relatives, which will total $35,000. The other $315,000 will come
from outside investors that have bought into the business plan and the viability of the
company in the long term. We will use ​vfinance.com​ to connect with potential investors.
This website has a vast directory filtering investors based on their interests in holding a
10­25 percent stake in the business. We are looking to sell a total of 31.5% of Odyssey​’​s
equity by giving out chunks of 10­15% equity to multiple investing individuals or groups.
Odyssey had to educate our investor on exactly how big our market is and how
we plan on expanding into different markets in the future. Venture capitalists look for
unique and different features when deciding to invest in start ups that separate them from
other current competitors in the same industry. The reason why our business was
appealing to our investor was because there are no other backpack producers out there
that have a GPS chip equipped inside the bag and that offer the online services that we
offer to our customers. Offering the GPS chip and service separates us from our
competitors and attracts investors because we are the first company to offer this type of
product and service that comes with.
A $650,000 bank loan must be taken out to cover the operating costs for the first
year. The loan will be taken out through an accredited lending institution. The loan will

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be charged a prime rate plus a spread. The prime rate at this time is 3.25% (Prime rate,
2015), and the bank will negotiate a spread that will be added on, most likely at a rate of
2% (Loan amounts, n.d.) The total annual interest on the loan will be 5.25%.
The loan will be used to cover the lease payments as well as office supplies and
employee payroll. We will need money right away to pay our IT employees that will set
up the initial e­commerce page with the additional web access to the GPS home screen.
Money that is overhead will be kept as emergency funds for unforeseen circumstances.
We forecast a profit in the first year of operations that will help pay off our large bank
loan. Even if sales projections are not met in the first year Odyssey expects revenue to
increase significantly in our second and third year.
Odyssey’s Capital Structure

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VI. Product Plan
Odyssey offers high­quality adult and children’s backpacks.​ ​Adult packs are
designed and manufactured to perform in the toughest of conditions. The range of packs
offered allows the user to transport the essentials no matter where their adventure leads.
The GPS tracker option makes these backpacks the safest option you can buy. Hikers
and backpackers will never be lost to the wilderness again as long as they have their
Odyssey backpack with the GPS tracker technology. Friends and family, as well as
rescue teams, will be able to find the adventurer no matter where he or she wanders. Four
different backpack models allow every outdoor enthusiast to find a pack suitable to his or
her needs.
Our children’s backpacks are built to transport the school essentials while offering
parental peace of mind. The optional GPS tracker keeps the children in sight no matter
how far away they are from Mom and Dad. Never wonder in fear where your little one
has wandered when you have the ability to track their every step. Now the walk to the bus
can be done with both child independence and parental confidence. Two different color
schemes mean every child can choose an Odyssey backpack to match his or her style.

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Product Categories:
Backpacking
Product Name: ​Voyager
Seasonal Emphasis: Spring/Summer
This backpack is designed for those people who don’t mind carrying the world on
their back. A 60L pack will fit anything everything for a week or two in the wilderness.
The stash pockets and insulated sleeve make carrying the extra items easy. An integrated
back support system and waist straps keep the pack comfortable even after many miles of
trekking. Even though you may take it to the middle of nowhere, you can always be
found using the optional GPS tracker. This backpack can accompany you on any Voyage.
Features:
● 60L capacity
● Outside zippered stash pockets
● Insulated beverage sleeve
● Integrated, adjustable back support
● Waist straps with pockets
● Multiple compartments
● Rugged canvas panel on bottom
● Built­in GPS location device
● 24/7 location service from any device
Product Name: ​Wanderer
Seasonal Emphasis: Spring/Summer

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This backpack is made for getting away from it all. A lightweight design allows
you to fill it to the brim and still carry it for hours. The minimal strap design does its job
like nothing else on the market while maintaining a comfortable ride. The oversized
opening lets almost anything fit inside and the fleece­lined pocket cocoons even the most
fragile sunglasses. Taking adventurous trails you can’t find is no longer asking for
disaster because the optional GPS tracker will always keep you on the map. The 32L
capacity will carry enough no matter where you may Wanderer.
Features:
● 32L capacity
● Lightweight design
● Minimal shoulder straps
● Oversized zippered opening
● Fleece lined pocket
● Rugged canvas panel on bottom
● Built­in GPS location device
● 24/7 location service from any device
Snow Sports:
Product Name: ​Trudger
Seasonal Emphasis: Winter
The slopes are calling you, and you have to take this backpack with you. This
hybrid ski/snowboard carrier pack is designed for any snow sports athlete. There are
velcro loops to hold your poles in place, letting your hands stay free to help scale the icy
crags. One of the shoulder straps is insulated inside, to keep your water tube from

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freezing in the cold temperatures. The optional GPS tracker keeps you on the map even
when you’re off the trails, and the waterproof liner around it will keep it from getting
damaged by the snow. This pack will accompany you no matter how far you trudge.
Features:
● 22L capacity
● Hybrid ski/board carry system
● Velcro pole loops
● Insulated shoulder strap
● Fleece goggle pocket
● Secure shoulders and waist straps
● Built­in GPS location device
● Waterproof compartment for GPS device
● 24/7 location service from any device
Hiking:
Product Name: ​Rover
Seasonal Emphasis: None
If you want to escape for a few hours but need to take a few things with you, this
backpack is the perfect fit. Whether you are going for a quick jog, a hike up the trails, or
biking across town, this backpack is the do­everything multi­tasker. The ergonomic
straps ensure a comfortable fit, and the water reservoir with stash­away hose keeps you
hydrated every step of the way. Multiple pockets keep your food separated from your
windbreaker. A small mesh pocket on the strap keeps your cell phone close to hand. The
optional GPS tracker lets everyone know where you are even if you forgot to tell them
you had left. This backpack can keep up with the toughest Rover.
Features:

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● 15L capacity
● Ergonomic, adjustable shoulder straps
● Water reservoir with stash­away hose
● Multiple zippered pockets
● Cell phone mesh pocket on strap
● Built­in GPS location device
● 24/7 location service from any device
Sample Advertisement:
Children’s Bookbags:
Product Name: ​Trekker
Seasonal Emphasis: Fall
Never wonder where you child has gotten off to again. This pack is perfect for
kids who are independent and walk to school or to the bus stop on their own. A large
compartment holds the books while a smaller compartment has dividers for all kinds of
pens and pencils. The extra padded straps are comfortable for any child to wear. A
variety of color schemes are available. The optional GPS tracker gives parents peace of

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mind as they can track every step their child takes. This backpack is perfect for any little
Trekker that needs to be found.
Features:
● Large compartment with laptop holder
● Small compartment with dividers
● Comfortable padded straps
● Extra large zipper pulls
● Velcro loops for extra items
● Variety of color schemes
● Built­in GPS location device
● 24/7 location service from any device
Manufacturer:
Xiamen Hindar Bags Industrial Co. Ltd​ ​is our company’s manufacturer that has
the experience and background to produce our product in a timely and trustworthy
manner. They have the capabilities to fill large and small orders costumed to the retailer.
Custom designs are accepted as well as possibly using their own pre­created designs.
They have a large R&D staff as well as company engineers that could assist in the design
and implementation of our specific requirements for the backpacks. they have experience
making almost every kind of bag, back pack and otherwise, and should be able to handle
any requests we will have for our own bags. They test the products they make for each
client, voicing any concerns with materials and/or design before mass­producing the
entire line. A 100% damage free guarantee speaks to their confidence in the quality of

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each piece produced. They are based in China. This will reduce labor and production
costs.
This company also has the capabilities and knowledge to manufacture the water
reservoirs, hoses, and bite valves for the Trudger and Rover backpack models. This
system allows the user to carry and access water without hassle. The hands free design
eliminates the need to stop and open the pack to access water bottles. The 2 liter water
reservoir capacity satisfies even the thirstiest users. Purchasing this product from the
same company will cut down on costs, as the products can all be shipped together. The
confidence we have as a buyer stretches across both product lines.
Systech Limited has over 10 years of experience manufacturing and developing
numerous kinds of technology products including the one we will buy GPS systems.
They have a large Research and Development division that pursues solutions to the
ever­changing technical world. Systech supplies a number of GPS devices, both personal
and commercial. They can customize and adapt their products to meet our specific needs
as an outdoor backpack company. As a low cost supplier, they can provide the high­tech
devices necessary while still allowing us to sell our product to a wide range of
consumers.​ ​Their industry experience and reputation is enough to ensure confidence in
the quality of the product.​ ​Systech also has over 400 employees and the ability to

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manufacture higher volumes of units as our business grows.​ ​They meet our specific
criteria as a high­quality, reliable manufacturer of GPS tracking devices.

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Table 6.8 Product Menu
Model
Capacit
y Color GPS Water Pack
Laptop Case
Cost Retail
Voyager 60L Blue Yes No No $201.49 $399.99
60L Blue No No No $121.50 $269.99
60L Grey Yes No No $201.49 $399.99
60L Grey No No No $121.50 $269.99
Wanderer 32L Green Yes No No $156.49 $299.99
32L Green No No No $76.50 $169.99
32L Black Yes No No $156.49 $299.99
32L Black No No No $76.50 $169.99
Trudger 22L Blue Yes Yes No $142.99 $269.99
22L Blue No Yes No $63.00 $139.99
22L Red Yes Yes No $142.99 $269.99
22L Red No Yes No $63.00 $139.99
22L
Orang
e Yes Yes No $142.99 $269.99
22L
Orang
e No Yes No $63.00 $139.99
22L Purple Yes Yes No $142.99 $269.99
22L Purple No Yes No $63.00 $139.99
Rover 15L Blue Yes Yes No $120.49 $219.99
15L Blue No Yes No $40.50 $89.99
15L Green Yes Yes No $120.49 $219.99
15L Green No Yes No $40.50 $89.99
15L Red Yes Yes No $120.49 $219.99
15L Red No Yes No $40.50 $89.99
15L Black Yes Yes No $106.00 $219.99

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Trekker n/a Blue Yes No Yes $106.99 $189.99
n/a Blue No No Yes $27.00 $59.99
n/a Green Yes No Yes $106.99 $189.99
n/a Green No No Yes $27.00 $59.99
n/a Red Yes No Yes $106.99 $189.99
n/a Red No No Yes $27.00 $59.99
n/a
Orang
e Yes No Yes $106.99 $189.99
n/a
Orang
e No No Yes $27.00 $59.99
n/a Purple Yes No Yes $106.99 $189.99
n/a Purple No No Yes $27.00 $59.99
n/a Pink Yes No Yes $106.99 $189.99
n/a Pink No No Yes $27.00 $59.99
n/a Black Yes No Yes $106.99 $189.99
n/a Black No No Yes $27.00 $59.99
GPS n/a Black Yes No No 79.99 $149.99
VII. Supply Chain and Inventory Management Plan
Odyssey plans to distribute our backpacks using the resources and manufacturing
of just two other companies, making our whole supply chain process somewhat simple.
At the same time, this will reduce the costs associated with getting our products to the
consumer. Between the two suppliers we have agreed to a contract purchasing agreement
that will allow us to purchase specified products for an extended amount of time.
Although we only have two suppliers there are many steps and procedures that must be
completed to ensure the customer receives a quality product. The overall process is very

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information­intense and requires numerous computer­tracking systems. The shipping
from the manufacturer to the Odyssey warehouse, as well as the shipping from Odyssey
to the customer, are both crucial to financial success. The use of data collection and
tracking will help to reduce the costly mistakes that can happen when shipping products
over long distances.
Suppliers:
Xiamen Hindar Bags Industrial Co Ltd.
When deciding between outsourcing or manufacturing ourselves, we decided on
outsourcing the production and manufacturing of our backpacks from an external source
located in China who has manufactured many different kinds of bags and backpacks for
many different other competitors within the United States. By outsourcing the
manufacturing of our backpacks we are able to reduce labor and production costs due to
the low wages that exist in the Chinese industrial and manufacturing plants. Xiamen was
founded in 1998 and has a wide product range that includes 16 different production lines
and has 15 years of experience making them the best choice for the outsourcing of our
products. Odyssey’s product line will only be using Xiamen for their hydration packs,
school bags, and daypacks. Xiamen has the capability to produce on average 400,000
pieces a month, which is more than enough to meet our individual needs. Xiamen has an
on site sampling and design center that puts together graphic designs and samples

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allowing us to have them manufacturer the bag and put our company logo on there at the
same time. They also have the ability to release 70 new items monthly allowing us to
bring new innovation and new products every year to the market and can have any
samples or designs completed in just 3­5 days. When deciding to use Xiamen as our
manufacturer we looked at their outstanding quality control department and knew when
purchasing through them that we would receive a superb product at a good price.
Systech Ltd.
When determining where to purchase our GPS system from we compared the
prices and quality of several different producers and decided to go with Systech Limited
who has been developing GPS systems for over 10 years now and has the capability to
mass produce GPS systems that we will use in our products. Systech’s low prices and
high quality gave them a competitive advantage over the other producers we researched.
Systech has a fairly large R&D department to combat with the ever­evolving
technological world. Due to the R&D department at Systech we are guaranteed to have
better and better GPS systems as we continue to grow our brand in the coming years.
This gives us the security of knowing that the innovation of our GPS systems will never
go out of date and will continue to get more sophisticated as Odyssey grows. Their
experience and reputation within their industry gives us the confidence that they will be a
valuable and loyal supplier.

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Organization of SCM:
Supply Chain Management is highly important to the success of the company and
therefore Odyssey will be hiring an employee with a bachelor’s degree in Supply Chain
or Operations Management. The primary role of this employee will be to watch over and
guide the product flow, information flow, and finance flow to create the most efficient
and least costly supply chain possible. The product flow consists of the movement of a
product from the business to the customer, as well as any customer returns or service
needs. The information flow involves transmitting orders and updating delivery statuses.
Lastly, the financial flow consists of credit terms, payment schedules, and title ownership
agreements. Odyssey’s supply chain management employee will be involved with
overseeing the flow of the three areas mentioned above to create efficiency.
We intend for our company to grow rapidly in the next three years and eventually
Odyssey will need to hire several more employees who will all be responsible for
overseeing our supply chain. By having several different employees with good
credentials and background oversee the process of getting our products from the supplier
to our warehouse and then to the customer Odyssey can ensure our process is the most
efficient and cheapest possible supply chain. Supply chain managers will work with
sophisticated software systems such as planning and execution applications to ensure
successful supply chain management. Planning applications use complex algorithms to

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determine the best possible way to fill an order and execution applications track the
physical status of a product, the management of materials, and financial information
involving all parties associated with the process.
Our supply chain management applications will be based on open data models
that support the sharing of data both inside and outside our company. This shared data
will reside in data warehouses in several different sites and companies. Sharing this data
upstream and downstream will allow our applications to create value for our customers
by improving the time­to­market of products, reducing costs, and allowing all parties in
the supply chain to better manage resources and future needs. Reducing costs in our
supply chain allows Odyssey to offer our backpacks at a reasonable price.
Inventory Management:
For our inventory management strategy Odyssey needs to ensure there is enough
inventory in stock at all times. This is important to make sure our products are never on
back order and are always available to customers searching online. The supplier of the
backpacks, Xiamen Hindar, has a minimum order requirement of 1,000 pieces at a time
but has the ability to produce 300,000­500,000 pieces monthly. Placing an order at the
beginning of each month would cause problems so we have decided to determine
necessary inventory levels by season. Placing these larger orders all at once will reduce
production and shipping costs.

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To control inventory Odyssey will place new orders based on how much existing
inventory is left in stock for each model and color. As we intend to grow exponentially
overtime we will increase our number of units ordered to meet our demands and growth.
Odyssey will use a first­in­first­out (FIFO) inventory method when determining which
inventory to take off the shelves. This means that the distribution of our inventory will be
based on which inventory came into our warehouse first. We will set a predetermined
level in our computer systems that will recognize when a certain product has gone under
the inventory level and the computer will then directly send a new order to our supplier
for the specific product we need. Our predetermined rate for each individual backpack
will each be 50 units. 50 units might seem large for backpacks, but setting the rate at 50
units gives us the time to place a new order and receive that new order.
Once Xiamen has received an order from Odyssey for a specific product it will
usually takes 20­30 days for them to complete the order and get it shipped. Since Xiamen
is located in China we need to allow for at least another 20­30 days for the shipment to
reach our warehouse in Kansas, giving us an estimated total of 40 days from when we
place the order to when we physically receive the order and can store it.
There is no minimum required order of the GPS chips from Systech, therefore we
can place orders of the GPS technology based on the projected sales of our products that
come equipped with the GPS technology and service. Odyssey has estimated that around

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50% of our total sales will come from products that are equipped with the GPS chip,
while the other 50% of total sales will come from the products that don’t come with the
GPS tracker.
Odyssey plans to purchase an order of 2,500 units of the GPS chip and we will
eventually increase our number of units purchased as we grow over the next several
years. By ordering 2,500 units at first we are giving our projected sales of the GPS
technology space for error by not ordering too many. We have ordered 3,000 backpacks
between the five models and purchasing 2,500 units of the GPS chip allows us to be at
the 85% mark of sales including the GPS technology. We will set a predetermined
inventory level for our GPS chip like the one in place for the products from Xiamen.
Each order during our start up phase will consist of 1,500 units and our inventory level
where we place a new order will be set at 150 units as well. When inventory of the GPS
chip has fallen below 150 units our IT system will recognize this product has low
inventory in stock and will send an invoice for a new order directly to Systech.
Diagram 7.1 Slotting Space
Rack A: Rack B:

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Diagram 7.1 is how we will organize our inventory within our warehouse. This
rack does not represent the actual size of the racks we will have in our warehouse, but
they have 4 shelves, which is how many shelves will be on our racks at our location.
The Rover and Trekker model will be organized in the same way as seen from above.
The Rover model will be placed on rack C, and the Trekker model will be placed on rack
D, while our GPS units will be placed on rack E. Each rack has 4 shelves and are
differentiated by labeling them shelves 1,2,3,4. When an employee receives an order he
or she can locate the exact shelve the products the customer ordered are at. So if the

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customer ordered a Trudger model in Red the employee would then go to shelf 2b where
this product is located within our warehouse.
Receiving and Storing Processes:
When our warehouse receives an order from a supplier we will first make sure
that the order consists of exactly what we ordered and nothing less. If there is a problem
with the order we will then contact the supplier and explain to them the problem in order
to get it resolved as quickly as possible. If there is no noticeable problem with an order,
we will then sort the products and place them on the specified shelves. By separating the
different backpacks based on model and color we are able to organize our inventory of
backpacks in the most efficient manner. At Odyssey, our employees will have memorized
which models and color go on which shelves. Organizing our inventory of backpacks in
this manner makes it easier on our employees because they will know exactly where to
find the exact product in each customer’s order.
When we receive orders of the GPS tracker from Systech we will utilize a very
similar process. When we first receive the order in the warehouse we will examine the
order to ensure there are no problems or defective GPS chips. If there are no problems
with the order we will then begin the storing process of the GPS chips. The GPS chips
will be assigned to their own shelf to allow for easier access of the inventory for our

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employees. The GPS chip inventory will be placed in boxes that have separators within
the box that can hold up to 50 GPS devices in each box.
When a customer makes a purchase online through our website we will then have
an IT system that sends an invoice of the order to the employees in charge of assembling,
boxing, and shipping each individual order. If an order consists of a model with the GPS
chip the employee will then select the model from our inventory using a first in­first out
method and then select a GPS device from the shelve using the same inventory method.
They will then put the GPS device into the designated pocket inside the backpack and
box up the order and send it to UPS to be shipped to the customer.
Delivery Schedule:
At Odyssey, the majority of products we offer are geared more towards fall,
summer, and spring use rather than winter use. We will have to determine necessary
shipments of inventory so that they best suit the seasonal demands of our products. Since
the majority of products we offer are geared towards the seasons mentioned above, we
will have to account for that and place orders that suit the current season. The supplier
will ship the orders to the UPS in Wichita, KS, and from there it will be delivered to
Odyssey’s warehouse. Obviously there will be a much greater volume of inventory
entering and leaving the warehouse during the busiest seasons, which will be different for

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each product that Odyssey offers, as detailed below. Table 7.2 and Table 7.3 detail the
minimum inventory levels as well as the quantity for each restocking order.
Trekker​:
Minimum Inventory Level
Table 7.2 Total
GPS chip 600
Fall 150
Spring 150
Summer 150
Winter 150
Rover 100
Fall 25
Spring 25
Summer 25
Winter 25
Trekker 250
Fall 100
Spring 50
Summer 50
Winter 50
Trudger 125
Fall 25
Spring 25
Summer 25
Winter 50
Voyager 150
Fall 25
Spring 50
Summer 50
Winter 25
Wanderer 150
Fall 25
Spring 50
Summer 50

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Winter 25
Grand Total 1375
The Trekker model, designed for children, is the only children’s book bag we
currently offer that comes in two different types and four different colors. Through
research, Odyssey determined that when parents purchase a school bag for their children
they usually do so in the months right before their school year starts. We found that
parents rarely purchase a new backpack for their children during the school year unless
their current backpack is lost or broke. This tells us that the majority of sales from our
Trekker model will come in the months of July, August and September. To account for
the seasonal demand of the Trekker, we will need to order a greater amount in the
emphasized months.
During these months we will purchase 500 units of each color, which is 300 more
units than we would usually order to account for the increased demand. If we are still in
the prime months for the Trekker model and inventory gets below 100 units, we will then
base the amount of units purchased for the next order on how many weeks are left within
the months of July, August, and September. This allows us to have enough inventories in
stock to meet the increased demand. In the months after the start of each school year,
Odyssey will resort back to the regular order number of 200 units of each color and will
place a new order when the inventory level reaches below 50 units.
Voyager, Wanderer, Trudger, and Rover:
Units Odered for
Restock

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Table 7.3 Total
Wanderer 900
Fall 150
Spring 300
Summer 300
Winter 150
Voyager 900
Fall 150
Spring 300
Summer 300
Winter 150
Trudger 750
Fall 150
Spring 150
Summer 150
Winter 300
Trekker 1100
Fall 500
Spring 200
Summer 200
Winter 200
Rover 600
Fall 150
Spring 150
Summer 150
Winter 150
GPS chip 6000
Fall 1500
Spring 1500
Summer 1500
Winter 1500
Grand Total 10250
The large capacity Voyager and Wanderer backpacks are designed for outdoor
activities that usually occur in the spring or summer. This means that these three product
models will generate the most revenue in summer months, and less in the typical winter
months. To account for the lower demand during the winter months, we will order fewer
inventories. When the winter does come, the ski/snowboard specific Trudger will be
more in demand. During the winter months Odyssey will order 300 units of the Trudger
model in each color, which is double what we would usually order and will place new

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orders when the inventory falls below 50 units. In the spring and summer, the Voyager
and Wanderer order will be 300 units of each color, which is also double what we would
usually order, and new orders will be placed when inventory falls below 50 units. The
Rover model is an all around model that needs to maintain a consistent inventory level
throughout the year. After the seasons of emphasis for each model, Odyssey will resort
back to our regular order number for each. We will then place our delivery schedule
around remaining inventory.
GPS Chip:
The delivery schedule for the GPS trackers will also be based off of existing
inventory left in the warehouse. At Odyssey, we believe that basing our delivery schedule
of our GPS trackers on a weekly or monthly basis is not the most efficient way. We
believe that our new orders shouldn’t be made on a regular timetable, but rather how
much inventory is still in stock in our warehouse. By managing our delivery schedule in
this way we are making sure that there will never be a surplus or shortage of our GPS
trackers. Our shipments from Systech during the first year will consist of 1,500 units of
the GPS chip and new orders will be placed when inventory falls below 150 units.
Systech ships each order to the local UPS, just like Xiamen does. This makes the process
fairly simple because we don’t have to travel to several different companies to get our

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different orders. When UPS has received the order, they will then process it and deliver it
to our warehouse where it will be stored.
Important KPI:
At Odyssey, we are responsible for increasing productivity and bringing new
innovation every year to the backpack world. This can be achieved through effective
application of key business processes, as well as improving our current processes and
products, and measuring this through units/time and growth. One of our most important
goals here at Odyssey is always making sure our employees are satisfied and enjoy
working for our company. We measure employee satisfaction and employee turnover rate
consistently to identify areas that need improvement. Another goal is to making sure we
establishing a strong brand name and achieve financial success from the sales of our
products. We can realize this by generating revenue, controlling costs, and increasing our
profit margins, as well as making strong business decisions and having good business
ethics. Lastly, an important goal at Odyssey is having outstanding customer satisfaction,
which can be achieved by providing outstanding, consistent customer service for any
customer who has an issue with the products or services Odyssey provides.
VIV. Human Resources Staffing Plan and Cost Analysis
At Odyssey, employing the best person and correct number of employees for each
job is important to us because it is a costly part of our business. Through various

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job­testing selection methods, such as integrity, personality, knowledge, and drug testing,
we will be able to find the best employees who meet our specific standards. Through
external recruiting, newspaper ads, and employee referrals we will attract a large number
of applicants for the Management, Marketing, Customer Support, Technical Support,
Supply Management, and Warehouse positions.
Table 9.1
Departments
# Of
employee
s
Company
Insuranc
e
Package
Hours
Per
Week
$ Per
Hour
Total
Yearly
Cost
Management HR,
Operation 2 Yes 35 Hours $25.50 $92,820.00
Marketing,
Web Design 3 Yes 25 Hours $22.75 $88,725.00
IT Support 2 No 30 Hours $28.00 $67,200.00
Supply Management 1 Yes N/A N/A-Fixed $55,000.00
Warehouse 3 Yes 40 Hours $9.25 $57,720.00
Finance 1 Yes N/A N/A-Fixed $60,250.00
Customer Support 2 Yes 40 Hours $10.00 $41,600.00
Total 14
12
Covered
$484,115.0
0
Table 9.1 displays the number of employees we employ per job and how much it
costs to fill the positions. For Management, we will require two managers to run both our
warehouse and our office independently, each working thirty­five hours a week each for
$25.5 an hour. Our Warehouse manager will need to have the appropriate leadership and
motivation skills to ensure that our workers are working at the most efficient rate as our
demand increases. The Office Manager will be assigned to distributing projects and job

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assignments to employees working at the desks. Marketing our product will be difficult
for our small business because we do not have the sufficient funds to advertise on TV, so
we hired three marketing managers working twenty­five hours a week for $22.75 an
hour. For our preliminary process of marketing our product, we grouped a team of three
employees with marketing backgrounds to utilize social media in the best way. We
specifically hired two young employees with marketing majors out of college because
they understand the current social trends in marketing, especially on social media sites,
guided by one veteran marketing employee to direct them in the right way. With this
group, this allows us to combine experience with new age technology thinkers in order to
market our product, lead by the knowledge on past trends, creating a competitive
advantage in our specific target markets.
Our Customer and Technical Support teams will have two employees each, who
will be stationed at the phone for forty hours a week at ten dollars an hour. At Odyssey
LLC, we understand that there are going to be technical problems with our product
because it has a GPS tracker in it. With the GPS tracker being used for one of the main
purposes of our product, a system failure of the GPS would require the device to not
function properly. With technology these days, anything can happen to a product as it can
never be made to run to perfection, so we will use a ​Proactive Support​ scheme to ensure
availability to our customer at all times. Proactive support scheme entails health

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diagnostics on the GPS tracker, which would make it easier and faster to diagnose the
problem of the GPS tracker if it were to fail. Being able to constantly check the health of
our customers GPS trackers not only ensures that the tracker will work properly for the
entirety of its usage, but it ensures safety to the customer because if the GPS were to
dysfunction when a hiker is using our product his safety may be compromised. Odyssey
will strive to ensure this will not happen to any of its customers.
The first type of technical support is the Crowd sourced technical support, which
is the usage of online discussion boards on our website for different customers to post
what they liked about our product and what troubleshooting errors they ran into. This will
not only allow us to respond with help, but it will give us a main idea of what exactly
could be going wrong with our product if any similar problems come up, giving us the

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advantage to go back into the development process of the backpack and make necessary
changes regarding our customers main problems.
The Warehouse Manager will oversee the three employees who work on the
warehouse floor. These three employees will be responsible for receiving, unpacking, and
sorting incoming shipments from our suppliers. Also, when a customer order is received,
they will assemble the backpack, put it in the correct spot, and box them up for delivery.
Being managed by one effective manager should ensure that they would do the best job,
as they will be closely monitored based on production. We will be assigning a production
count system to each employee to track how many backpacks they assemble a day and
how fast it takes them to go through the process. This will give us vital data to determine
if the systems in place are the most efficient and accurate ways to send and receive
shipments.
We plan on using all of our departments 5 days a week (Monday­Friday), and
adding additional days to the Supply Chain manager, Warehouse Manager, and
Warehouse employees if necessary. A time where we would
add Saturday or Sunday work days would be during our busiest times of the year, as
people buy backpacks based on different seasons. We will always make sure we have
part time warehouse employees available to add to our workforce. This helps satisfy

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unexpected demand and ensures that if an employee becomes sick, part­time employees
are ready to fill in.
During our hiring process, we first have to run a Job Analysis, which is creating
the description of all of our jobs and what qualifications are required. In our Job
Analysis, especially for the marketing and management jobs, we require that all our
Managers and Marketers areas of emphasis in education or experience match the job
descriptions. With this qualification it can help ensure that our Marketers and Managers
have been through the full learning experience, knowing that they chose that area of
emphasis because they had a passion for it, which in turn helps promote interest in their
jobs. After developing a pool of candidates for each position, we must run an internal
search on our business to recognize if any employee is ready to be promoted. This helps
promote employee commitment and motivation by giving them the mind set that Odyssey
recognizes good work and will act on it through promotions, compensation packages, and
being flexible with vacation days. We will not hire anyone before interviewing them 2
different times and having them go through personality, knowledge, integrity, and drug
testing. Following this we will be prepared to hire an employee, after going through the
rigorous elimination process from our pool of candidates.
IX. Non­Human Resources

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Odyssey will encounter other operational elements and costs that will account for
non­human resources costs within our company. This section includes warehouse and
office space cost analysis, shipping, insurance, utility, and property taxes. At Odyssey a
company objective is to reduce waste and eventually become a Leeds certified building
for leadership in energy and environmental design. To accomplish this we must use
energy effectively and responsibly by being efficient with our non­human resource costs.
Warehouse and Office Space
One of Odyssey’s missions is to protect our staff from any dangerous situations at
work. Our office and warehouse space will be cleaned twice a month by Merry Maids
Wichita that charges a fixed cost of $200/Month. The service provided by Merry Maid
will satisfy our employees to ultimately increase motivation. Odyssey will have Eco
L.E.D lighting that will guarantee the brightest workspace for our employees to stay
awake and see what they are doing within the building. As illustrated, warehouse
manager will stock the shelves with inventory organized by season and the high demand
backpacks are located closer to staff to reduce wasted time looking for the products.
There is an employee kitchen within one office to once again satisfy our employees with
a place to keep their lunch and make it without leaving the building.
Shipping

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Odyssey uses a third party business to handle shipping, thus hiring a driver and
making a delivery plan would be counterproductive. Using UPS is an easy way to get our
products that customers will order online to be distributed across the nation. This decision
was made because our market stretches way beyond Kansas. A customer’s order from our
online store will be boxed and picked up that same day. Daily pickup will ensure a UPS
driver automatically stops at our location once each business day, as scheduled, to pick
up ground or air shipments. The daily pickup customers receive UPS pickup per day at no
extra charge for packages that we can send throughout the week. This is an 11.30/weekly
charge when spending more than $75.00 or more of shipping cost per week. Customers
will automatically get their online code to access their GPS as soon as the box is ready to
be shipped so they can track their bag throughout the shipping process on our webpage.
Insurance
While forecasting different insurance costs and situations, we
have decided to be covered by The Hartford Insurance Group, which
insures over 1,000,000 small businesses yearly. Odyssey received an
insurance quote of $1500/Year including business income coverage, employee benefits,
data breach coverage, property and liability and workers compensation. Overall insurance
will reduce risk and liability, while on this plan Odyssey will be protected from any
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Property Taxes
The property owner will pay for any and all property taxes for the Odyssey
warehouse in Kansas. Landmark Commercial Real Estate owns the land and building,
and will be responsible for communicating with and paying any taxes due to the IRS, as
defined in the lease contract, 9.2% in KS. Odyssey’s lease payments are structured to
include a portion of the property tax, as the current resident inside the warehouse.
However, no property taxes will be included in Odyssey’s financial accounting records.
Utilities
The utility cost will change seasonally being located in Wichita, KS it will consist
of heating/cooling, water usage, lighting, computer usage, cable and finally an other
category accounting for overhead and additional utility costs. Odyssey’s energy use for
all of our utilities is broken down seasonally represented in Pie charts 9.3 & 9.4.
Over the winter months most of our utility expenses go to heating the warehouse
and office, thus a cost saving when it’s the summer months because the weather will be
comfortable.
Midwest Energy Inc. provides Odyssey of all of its electricity but we hope to
eventually implement solar panels to reduce costs while becoming green. Quantitatively
forecasting our electricity bill within the winter months to total $349.50/Month while
only $265.79/Month in the summer. The city of Wichita supplies us with our public water

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that we use within our firm; we estimate the cost of water around $200/Month all year.
Comcast will provide cable and phone service around the building so we can contact our
consumers, stakeholders, or est.
X. Revenue Analysis
Odyssey’s inventory will need to be identified, sorted, and tracked. Odyssey will
use individual seven­digit SKU numbers that are assigned to each unique product and
stored in the inventory system. The first two numbers of each SKU will identify the
department for each item. Odyssey only has three departments, adult backpacks, kids
backpacks, and the GPS trackers. This may change as the company grows, but for now
these two broad departments will contain all
of Odyssey’s products. The second pair of
numbers in the SKU will identify the model
of the backpack. The next two numbers of

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the SKU will indicate the color of the backpack. The final number in the SKU will
designate whether the backpack will include the GPS tracker or not. For a breakdown of
the SKU number, see Figure 10.1. To see the individual SKU for each item, see Figure
10.2.
The individual SKU numbers will allow the inventory system to keep track of the
current levels of each product as units enter and exit the warehouse. When an order is
submitted to the manufacturer, the order sheet will contain the SKU of the item
requested, as well as the quantity needed. The same process will be used when a
customer places an order with Odyssey. The computer system will submit the customer’s
order with the SKU of the item(s) as well as the quantity. By using an individual SKU
number as the item descriptor instead of just words, it will eliminate confusion or
mistakes. Each SKU refers to one specific item and one item only, which will help to
eradicate the possibility of the wrong item being ordered.
Model Color SKU # GP
S
Cost Retail
Price
Voyager Blue 431001
1
Yes
$201.49
$399.99
Blue 431001
0
No
$121.50
$269.99
Grey 431002
1
Yes
$201.49
$399.99
Grey 431002
0
No
$121.50
$269.99
Wandere
r
Red 431103
1
Yes
$156.49
$299.99

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Red 431103
0
No $76.50 $169.99
Green 431104
1
Yes
$156.49
$299.99
Green 431104
0
No $76.50 $169.99
Black 431105
1
Yes
$156.49
$299.99
Black 431105
0
No $76.50 $169.99
Trudger Blue 431201
1
Yes
$142.99
$269.99
Blue 431201
0
No $63.00 $139.99
Red 431203
1
Yes
$142.99
$269.99
Red 431203
0
No $63.00 $139.99
Orang
e
431206
1
Yes
$142.99
$269.99
Orang
e
431206
0
No $63.00 $139.99
Purple 431207
1
Yes
$142.99
$269.99
Purple 431207
0
No $63.00 $139.99
Rover Blue 431301
1
Yes
$120.49
$219.99
Blue 431301
0
No $40.50 $89.99
Green 431304
1
Yes
$120.49
$219.99
Green 431304
0
No $40.50 $89.99
Red 431303
1
Yes
$120.49
$219.99
Red 431303
0
No $40.50 $89.99
Orang
e
431306
1
Yes
$120.49
$219.99
Orang
e
431306
0
No $40.50 $89.99
Black 431305
1
Yes
$120.49
$219.99

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Black 431305
0
No $40.50 $89.99
Trekker Blue 421001
1
Yes
$106.99
$189.99
Blue 421001
0
No $27.00 $59.99
Green 421004
1
Yes
$106.99
$189.99
Green 421004
0
No $27.00 $59.99
Red 421003
1
Yes
$106.99
$189.99
Red 421003
0
No $27.00 $59.99
Orang
e
421006
1
Yes
$106.99
$189.99
Orang
e
421006
0
No $27.00 $59.99
Purple 421007
1
Yes
$106.99
$189.99
Purple 421007
0
No $27.00 $59.99
Pink 421008
1
Yes
$106.99
$189.99
Pink 421008
0
No $27.00 $59.99
Ca​mo 421009
1
Yes
$106.99
$189.99
Ca​mo 421009
0
No $27.00 $59.99
Black 421005
1
Yes
$106.99
$189.99
Black 421005
0
No $27.00 $59.99
GPS
Tracker
Black 411005
1
Yes 79.99 $149.99
The SKU numbers will also tell the system the cost and retail price of each item. Each item
will be individually stickered when it arrives at the Odyssey warehouse with a SKU sticker.
This sticker will then be scanned so the inventory system knows that the item is now stored in
the warehouse. When a customer order is fulfilled, the sticker will again be scanned. This will

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achieve a triple purpose. First, the SKU will tell the accounting system what the backpack cost
Odyssey, so that value can be added to the Cost of Goods Sold for the accounting period.
Second, the SKU will tell the accounting system how much it needs to charge the customer
for the backpack her or she has ordered. Finally, the inventory system will know that it needs
to reduce the quantity of that item to show it is no longer present in the warehouse. A full list
of the costs and retail prices of each individual backpack can be found in Figure 10.2
Odyssey’s revenue projections are complicated because of the variety of products
offered. Each of the backpacks will have seasonal periods in which sales are very high,
and seasonal periods in which sales will be much lower. For example, the Trekker
children’s backpack will sell many more units in the fall season, right before school
starts, and fewer units in the winter and spring seasons. Seasons of emphasis for all
products were previously detailed in the Product List section (see pg. WHAT###).
Another factor that will affect Odyssey’s sales is the fact that the market for
backpacks is already well established. Competitors in the marketplace have been
operating and selling similar products for much longer. Odyssey offers a quality product
with a GPS functionality that is not offered by anyone else in the industry, but it still must
take a market share away from existing competitors. The market share that Odyssey will
occupy will be small at first as it penetrates the market for the first time, but should grow
rapidly.

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Because Odyssey is a new company that operates exclusively as an online retailer,
it will have very little market exposure in its first three years. Only about 5% of potential
customers will know Odyssey backpacks exist as one of their options when choosing to
buy a backpack. This awareness percentage will vary for each individual model as well.
This small number of customers who are aware of Odyssey products will need to be
accounted for in the revenue projections.
Because of the competitiveness of the backpack market as a whole, Odyssey will
only be able to capture a small amount of market share in its first three years of operation.
According to Ranker.com’s list of the best backpack brands (Brandes, n.d.), there are at
least 56 companies currently selling products in the United States. As such, Odyssey
projects that it will be able to hold a 2% market share in its first year of operations. This
is an optimistic projection, due to the size and scope of the competitive marketplace.
Odyssey also projects a consistent 25% growth in market share over the next two years of
operations. That would result in a 2.5% market share in year two, and then a 3.125%
market share in year three, as seen in Figure 10.3. Once again, these projections are
optimistic and are also contingent on Odyssey producing, marketing, and selling a
Market
Share Growth
Year 1 1% 25%
Year 2 1.3% 25%
Year 3 1.563% 25%
Figure 3

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successful and popular product.
Management is confident these projections should be met or surpassed, based on
the National Retail Federation’s forecasts of steady growth in the retail industry. The
NRF is predicting that overall retail sales will increase 4.1% in 2015, with non­store sales
increasing by as much as 7­10 percent (Grannis, 2015). Odyssey does not expect to see
growth at those same levels, but the overall upward trend in retail is a good indicator that
Odyssey’s sales will increase each year.
Because Odyssey does not have any sales at this point, the company is in the
product development stage. With no historical sales data for Odyssey itself, historical and
competitive comparisons will be needed. The revenue projections will be quantitative,
utilizing data from a wide range of sources. The projections for each backpack type will
require separate research, due to the uniqueness of each product. For example, using
yearly camping data will work for the Wanderer backpack, but not for the Trekker. The
primary method for determining yearly sales for Odyssey will be a calculation of the total
yearly sales for each product from every brand. Then it can be calculated how much of
that total revenue can be attributed to Odyssey, based on the projected market share.
The target market for Odyssey backpacks consists of mainly outdoor enthusiasts,
as well as parents of elementary students. Due to the relatively high price tag for an
Odyssey backpack, the target demographic is people who have a yearly income of

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$50,000 or more. US household income levels are presented in Figure 10.4. The number
of US households that have an
annual income of $50,000 or more
makes up 51.1% of total US
households, as reported in the
Congressional Research Service’s
report on Household income
Distribution (Elwell, 2014). This number will be useful for determining the amount of
Americans who will be interested in the Odyssey product.
Each backpack model has two options, one that includes the GPS tracker and one
that does not. Even though the model that includes the GPS tracker is more expensive, we
project that it will make up a large majority of sales for every model. The main reason to
choose an Odyssey backpack over a competitor is the location service offered with the
inclusion of the GPS tracker. For that reason, Odyssey projects that 85% of all backpack
sales for the adult models will include the GPS tracker. Customers will choose to include
the GPS tracker with the children’s Trekker model 95% of the time. Parents will be
purchasing this Odyssey product specifically because it has the GPS functionality more
than any other feature.
Voyager and Wanderer Projections: