Kevin Blackwell insisted he saw hope for the future despite seeing Luton relegated by the 1-0 defeat at Derby.
Lewin Nyatanga's first-half goal sent Hatters tumbling down to League One and in turn pushed the Rams back up into an automatic promotion spot for the Premier League.
But despite admitting the hurt felt by suffering the drop, Blackwell still praised Town's show at Pride Park.
He said: "It was more than just a battling performance; there was quality there too.
"We didn't get the breaks when we needed them and lacked a bit of experience and cutting edge, which made the difference.
"But the players did Luton proud tonight.
"It's no secret Luton have sold £4million of striking talent and it's not been replaced. It's hard.
"Drew Talbot at just 20 and Calvin Andrew, who has just come back from knee ligament reconstruction work, put in a good shift.
"Besian Idrizaj, the lad from Liverpool, also caused them problems when he came on and I'm proud of what I saw."
Asked if he had been faced with an impossible job on his arrival, the 48-year-old said: "Twenty six days in, it's been an interesting job.
"It's always a difficult job when you go down. It's not normal that when a club goes down it comes straight back up again.
"Luton will be perceived as a Championship team in the league next season.
"But I've only had half a game that's been poor since I've been here and that was the first-half against Plymouth.
"Since I've been here we've been unlucky to lose games, but that comes down to inexperience in certain areas and if we can improve that we'll have a chance."
He added: "It hurts to be relegated.
"I didn't come here just to go down to the lower echelons of the football league.
"It's the first time I've been down there in 12 years and I don't intend to be there long. I want to bounce back."
Blackwell also spoke of his aims for the future under the guidance of new chairman David Pinkney.
He said: "I was told certain things and had a picture painted and sure enough, seven days later the new chairman came on board.
"He wants a new stadium and new training ground. It's not often you get the chance to rebuild a club from top to bottom and I want to give it a go.
"I want to paint a picture back to him and hopefully there will be funds to strengthen the team."
Blackwell added: "The new chairman is a dynamic chairman with a business brain and he has high expectations and high demands.
"The players have to learn that, but today they've put down a benchmark and shown there's quality here.
"We will have to add experience, but if they show that application and attitude as well as that skill, we will have a chance next season."
its all luck i tell ya
