Marketing data analysis - report

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Table of Contents 1. EXECUTIVE SUMMARY ............................................................................................................................................................ 2

2. BACKGROUND INFORMATION ................................................................................................................................................ 3

3. MARKETING RESEARCH PROBLEM AND OBJECTIVES .............................................................................................................. 4

4. METHODOLOGY ...................................................................................................................................................................... 5

4.1 FIELDWORK .................................................................................................................................................................................. 5 4.2 SAMPLE AND SCOPE ....................................................................................................................................................................... 5 4.3 QUESTIONNAIRE DESIGN ................................................................................................................................................................. 5

5. RESEARCH FINDINGS .............................................................................................................................................................. 6

5.1 OVERALL SAMPLE CHARACTERISTICS .................................................................................................................................................. 6 5.1.2 Demographics ................................................................................................................................................................... 6 5.1.3 Behavioural ....................................................................................................................................................................... 8

5.2 MARKETING SEGMENTATION AND NEW PRODUCT ANALYSIS ................................................................................................................ 10 5.3.1 Segment 1: Budget Backpackers ..................................................................................................................................... 11

5.3.1.1 Demographics ............................................................................................................................................................................... 11 5.3.1.2 Behavioural ................................................................................................................................................................................... 11 5.3.1.3 Product Preferences ...................................................................................................................................................................... 11

5.3.2 Segment 2: On-The-Go Busy Bees ................................................................................................................................... 13 5.3.2.1 Demographics ............................................................................................................................................................................... 13 5.3.2.2 Behavioural ................................................................................................................................................................................... 13 5.3.2.3 Product Preferences ...................................................................................................................................................................... 13

5.3.3 Segment 3: Small Escapers .............................................................................................................................................. 15 5.3.3.1 Demographics ............................................................................................................................................................................... 15 5.3.3.2 Behavioural ................................................................................................................................................................................... 15 5.3.3.3 Product Preference ....................................................................................................................................................................... 15

6. TARGET MARKET .................................................................................................................................................................. 17

7. MARKETING STRATEGIES ...................................................................................................................................................... 18

7.1 PRODUCT ................................................................................................................................................................................... 18 7.2 PRICE ........................................................................................................................................................................................ 18 7.3 PROMOTION ............................................................................................................................................................................... 19 7.4 PLACE ........................................................................................................................................................................................ 19

8. RECOMMENDATIONS ........................................................................................................................................................... 20

9. LIMITATIONS ........................................................................................................................................................................ 21

10. BIBLIOGRAPHY.................................................................................................................................................................... 22

11. APPENDIX ........................................................................................................................................................................... 23

APPENDIX 1: SURVEY QUESTIONNAIRE .................................................................................................................................................. 23 APPENDIX 2: SPSS OUTPUT ................................................................................................................................................................ 29

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1. Executive Summary Despite its ability to remain as a popular backpack brand across various market segments, JanSport wishes to explore

different backpack designs that may draw greater growing appeal from different target markets. This marketing

research report aims to identify various market segments that propose different backpack designs that may generate

an increase in profit and further build the JanSport brand and product range. From the research, it was identified

that there are three differing segments that yielded different product designs. The designs included:

Budget Backpack: $30, Large, 5 zippers, pattern/print and cotton material

Multi-purpose backpack: $50, large, 3 zippers, black and waterproof material

Small Escape Backpack: $30, small, 4 zippers, pattern/print and waterproof material

The study further identified overall demographics and behavioural characteristics of each of the segments. Through

utilising the method of Best Worst Scoring (BWS) and hierarchical clustering, it was identified that the Budget

Backpack held the greatest potential and appeal across the University/Schooling target market. This segment not

only presented the second largest relative size (40%) but more importantly, identified JanSport as their existing

favourite brand. This therefore provided an established opportunity for JanSport to retain and expand this target

market.

Overall, the research report illustrated three distinct market segments that may help JanSport expand its

organisation across various target markets and develop a new optimal product offering.

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2. Background Information JanSport Inc. is a subsidiary company of American clothing corporation, VF Corporation. JanSport is the world’s

largest designer and maker of bags including backpacks, shoulder bags, luggage and laptop bags. Skip Yowell, Murray

Pletz and Jan Lewis founded JanSport in 1967 in Seattle, Washington. Yowell was in charge of the sales and

marketing of the brand, while Pletz bought the innovative design and patent, and Lewis worked with fabrics and

patterns to create an aesthetically pleasing product (Jansport 2014). The initial release of the convertible travel pack

and signature daypack occurred in 1975. Fast-forward 11 years later and VF Corporation saw the growing potential

of the company and purchased JanSport in 1986 (Advameg Inc. 2014).

Innovation was a key aspect in the lead up to the founding of the company. Unlike traditional top-loading backpacks,

JanSport introduced the panel-loading daypack which is so common amongst all backpack brands today. JanSport

have been making backpacks since 1967 with the idea of creating packs that equip their customers for adventure,

designing backpacks that are “durable, functional and versatile. Whether you’re headed to a concert, to class, or

going off the grid—we’ve got your pack” (JanSport 2014). However, with the backpack industry becoming more and

more competitive, JanSport hopes to create a new backpack concept that will continue their success long into the

future and reach the right market. As a result JanSport has decided to undertake the following marketing research

project to understand which attributes are most important to its consumers and which product concepts based on

these attributes will be the most successful in their current target market.

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3. Marketing Research Problem and Objectives Finding a new and an ideal product design can be very challenging. JanSport wants to focus its resources on creating

an ideal product design in order to attain maximum profit and overall sales. However, focusing on creating an ideal

product design for an undefined target segment can be very challenging and can potentially restrain JanSport from

further creating new product design for other potential backpack segments. In order to understand the consumer

preferences while selecting a backpack, JanSport has come up with three potential possibilities including;

Budget Backpack: $30, Large, 5 zippers, pattern/print and cotton material

Multi-purpose backpack: $50, large, 3 zippers, black and waterproof material

Small Escape Backpack: $30, small, 4 zippers, pattern/print and waterproof material

The overall main motive of JanSport is to figure out whether or not these potential possibilities will be successful

when introduced in the respective target market or whether or not they have to undergo changes in their potential

ideas phase and create a complete new product. Therefore in order to have a better understanding of the consumer

preferences before deciding on the ideal new product design, JanSport aims to conduct a marketing research task to

identify out the type of backpack design which would be more appealing to consumers in terms of their

characteristic functions and design. The information based on colour preferences, number of zippers, type of

material used and price of the product will enable JanSport to know and understand the most popular combinations

which a customer would pick or chose while purchasing a backpack.

Predominantly, JanSport’s marketing research objectives aims to uncover the varying consumer preferences, and in

turn identify the most appealing and profitable backpack design.

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4. Methodology

4.1 Fieldwork There was informal exploratory primary research conducted prior to the completion of the survey questionnaire.

This mainly involved observing the variety of backpacks and their unique designs across different consumers. The

initial observations were made within a university setting. After discovering the various key attributes of backpacks

such as material, colour and zipper components, additional research was under taken at various stores that supplied

a range of backpacks. This allowed the ability to identify all possible attributes and product combinations available in

the development of a new backpack.

4.2 Sample and Scope A total of 50 respondents were collected in the process of the research. There was a 100% response rate, and

included a wide variety of respondents. Due to the open nature of the JanSport brand and the universal appeal of

backpacks, the sample was not restricted in terms of age, gender or any other attributes. This allowed a greater

availability of data and provided the opportunity for JanSport to identify the market’s entire potential.

4.3 Questionnaire Design In order for JanSport to identify the optimal product and ideal target market, a questionnaire was designed

incorporating both consumer and product attributes (see Appendix 1: Survey Questionnaire for question guideline).

The key purpose of the questionnaire was to help JanSport identify the most optimal product backpack combination

that would ensure the ongoing success of the brand. While the use of ranking and/or rating methodology may have

provided JanSport an insight within consumer preferences, this method proposed various issues including bias and

simply consumer laziness to complete the survey. Therefore, it was concluded that utilising the best-minus-worst

methodology would therefore provide a stronger valid and reliable insight towards consumer preferences.

Furthermore, the BWS methodology is regarded as an appropriate research approach, particularly when the

questionnaire respondents have little to no experience in choice making (Adamsen et al. 2013).

Through incorporating the BWS methodology, JanSport is able to collect more accurate data without the issue of

bias, and allows respondents to make a stronger informed decision in regards to their preference. However, it is

noted that the questionnaire design strongly focussed on the design preferences of the backpacks, with limited

attention towards JanSport competitors and overall positioning within the market. Therefore, it is highly

recommended that follow up research should be conducted by JanSport to further strengthen the findings and

solidify the overall final recommendations.

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5. Research Findings

5.1 Overall Sample Characteristics

5.1.2 Demographics The overall sample consisted of 50% male and 50% female, with 46% of respondents aged between 18 to 24 years

old. The majority of the respondents (32%) had an annual income of under $20,000. The respondent’s overall

preferences indicated the Nike (26%) brand as most favourite and Billabong and Hershel (16% respectively) as least

favourite brand.

Summary of Overall Demographic Characteristics

The respondents included 50% male and 50% female

46% of the respondents were aged between 18 to 24 years old

32% of the respondents had an annual income under $20,000

26% of the respondents stated Nike as their favourite backpack brand

Figure 1: Per centage Frequency of Gen der

Figure 2: Per centage Frequency of Age

0% 10% 20% 30% 40% 50% 60%

Male

Female

Gender

Percentage

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

18 - 24 years old

25 - 34 years old

35 - 44 years old

45+

Age

Percentage

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Figure 3: Per centage Frequency of Income

Figure 4: Per centage Frequency of Favourite Backpack Brand

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Under $20,000

$20,000 - $49,999

$50,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000 +

Income

Percentage

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Billabong

Jansport

Nike

Hershel

Quicksilver

Other

Favourite Backpack Brand

Percentage

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5.1.3 Behavioural Overall, the majority of respondents (32%) purchased a backpack every few years; however, 24% of respondents

stated they rarely purchased a backpack. Furthermore, 40% of respondents stated they purchased their backpack via

on online platform, followed by 34% stating the purchased via a physical department store. The use of the backpack

varied across the respondents, with 46% stating they used the backpack for university of school, followed by 20%

utilising the backpack for additional travelling purposes. Additionally, 34% respondents stated that they mainly

recognised backpack advertisements in store, with other respondents stating they saw advertisements and

promotions within magazines and TV (28% respectively).

Summary of Overall Behavioural Characteristics

32% of the respondents purchased a backpack every few years

40% of the respondents purchased their backpack via an online store

46% of respondents stated they used a backpack for university or school purposes.

34% of the respondents mainly noticed backpack promotions in store

Figure 5: Per cent age Frequency of Purchase Rate

Figure 6: Per centage Frequency of Purchase Place

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Segment 1 Segment 2 Segment 3

Purchase Rate

Once every six month

Once a year

Every few years

Very rarely

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Segment 1 Segment 2 Segment 3

Place of Purchase

Coop Store

Online Store

Department Store

Direct from distributor/retailor

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Figure 7: Per centage Frequency of Backpa ck Purpose

Figure 8: Per centage Frequency of Me dia A dvertisement

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Segment 1 Segment 2 Segment 3

Backpack Purpose

Gym Bag

Uni/School Bag

Fashion accessory

Travel Bag

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Segment 1 Segment 2 Segment 3

Media Advertisement

Newspaper

Magazines

Billboards

In Store

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5.2 Marketing Segmentation and New Product Analysis Through running the hierarchical cluster analysis upon SPSS, the following dendrogram was produced. From the

visual illustration, it could be interpreted that there are various distinct segments. Additional research and analysis

utilising a scree plot, the agglomeration coefficient begins to straighten out after the 3rd cluster. Therefore, it is

concluded that there are approximately 3 distinct segments.

Segment 1 Segment 2 Segment 3

Figure 9: Den drogra m

# Clusters Agglomeration Coefficients % Drop Drop

1 819.877 n/a n/a 2 687.205 -16.2% -132.67 3 568.631 -17.3% -118.57 4 496.240 -12.7% -72.39 5 434.556 -12.4% -61.68 6 386.169 -11.1% -48.39 7 347.753 -9.9% -38.42 8 316.108 -9.1% -31.65 9 292.216 -7.6% -23.89 10 270.278 -7.5% -21.94

100

200

300

400

500

600

700

800

900

1 2 3 4 5 6 7 8 9 10 11

A gg

lo m

er at

io n

C oe

ff ic

ie nt

# of Clusters

Scree Plot

Figure 10: Scree Plot

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5.3.1 Segment 1: Budget Backpackers

This segment mainly consists of university students that are on a tight budget. A large majority are age between 18

to 25 years old, and purchase a backpack on an annual basis. Furthermore, it is discovered that 35% of this segment

stated that JanSport was their favourite backpack brand. This segment’s relative size is 40%.

5.3.1.1 Demographics 60% are age between 18 to 25 years old, with 30% age between 25 to 34 years old

40% are female and 60% are male

35% earn an annual income between $20,000 to $49,999. However, 30% have an annual income less than

$20,000

Their most favourite backpack brand is JanSport (35%), followed by Hershel (20%). Brands including

Billabong, Nike and Quicksilver were least favourite (15%).

5.3.1.2 Behavioural 35% purchase a backpack annually. However 30% rarely purchase a backpack.

45% purchase a backpack via an online store, with an additional 30% purchasing backpacks through

department stores.

70% utilise their backpacks for university or schooling purposes. Additionally, 20% use backpacks for

travelling purposes.

40% stated they mainly saw backpack advertisements online, while 30% stated they mainly saw

advertisements in stores.

5.3.1.3 Product Preferences From the analysis, it is revealed that this segment place a great importance upon the price of the backpack

(importance value of 28.834). Additionally, they placed a great importance on size of the backpack (importance value

of 24.022). Through the produced utility values, it is concluded that their ideal product is a large, pattern/print

design, cotton material backpack with 5 zippers for $30.

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Utilities Utility Estimate Std Error

Price

$30 1.481

$40 .338 $50 -.338 $60 -1.481

Size

Small -1.013 Medium -.488 Large .938 Extra-Large .563

Zippers

2 -.131 3 -.075 4 .094

5 .113

Colour

Black -.225 Blue .263 Red -.506 Pattern/print .469

Material

Faux Leather .488 Cotton .769 Canvas -.694 Waterproof -.563

Constant 5.500

Importance Values Correlationsa Preference Scores on Stimulations Price 28.834 Value Sig. Number ID Score Size 24.022 Pearson’s R 1.000 1 17 5.238 Zippers 10.774 Kendall’s tau 1.000 .000 2 18 9.269 Colour 18.421 R Square 1.000 3 19 5.969 Material 17.948 a. Correlations between observed and

estimated preferences

Averaged Importance Score

Preference Probabilities of Simulationsb Card Number ID Maximum Utilitya Bradley-Terry-Luce Logit

1 17 5.0% 25.9% 7.7% 2 18 80.0% 45.2% 76.3% 3 19 15.0% 28.8% 16.0%

a. Including tied simulations b. 20 out of 20 subjects are used in the Bradley-Terry-Luce and Logit methods because these subjects have all nonnegative scores.

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5.3.2 Segment 2: On-The-Go Busy Bees

This segment mainly consisted of females, aged 25 to 34 years old. They purchase a backpack every few years at

various online stores. Overall they use a backpack for university or schooling purposes. This segment’s relative size is

48%.

5.3.2.1 Demographics 50% are age between 25 to 34 years old

58% are female and 41.7% are male

33.3% earn under $20,000 annually. However, 29.2% earn between $50,000 to $99,999 annually.

Their most favourite backpack brand is Nike (37.5%) and their least favourite backpack brand is Hershel

(8.3%).

5.3.2.2 Behavioural 45.83% purchase a backpack every few years, while 33.33% purchase a backpack annually.

37.5% purchase a backpack via an online store, with an additional 33.3% purchasing backpacks through

department stores.

37.5% utilise their backpacks for university or schooling purposes. However, 29.2% utilise their backpacks as

a gym bag.

41.7% stated they notice backpack advertisements in stores, with an additional 25% noticing backpack

advertisements in magazine publications.

5.3.2.3 Product Preferences From the analysis, it is revealed that this segment place a great importance upon the type of backpack material

(importance value of 23.844). Additionally, they placed a great importance on size of the backpack (importance value

of 23.369). Through the produced utility values, it is concluded that their ideal product is a large, black, waterproof

material backpack with 3 zippers for $50.

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Utilities Utility Estimate Std Error

Price

$30 -.031

$40 .031 $50 .266 $60 -.266

Size

Small -1.219 Medium .141 Large .641 Extra-Large .438

Zippers

2 -.406 3 .484 4 -.188

5 .109

Colour

Black .813 Blue -.250 Red .063 Pattern/print -.625

Material

Faux Leather -.219 Cotton .078 Canvas -.031 Waterproof .172

Constant 5.500

Importance Values Correlationsa Preference Scores on Stimulations Price 14.807 Value Sig. Number ID Score Size 23.369 Pearson’s R 1.000 1 17 7.875 Zippers 17.146 Kendall’s tau 1.000 .000 2 18 5.672 Colour 20.835 R Square 1.000 3 19 3.609 Material 23.844 a. Correlations between observed and

estimated preferences

Averaged Importance Score

Preference Probabilities of Simulationsb Card Number ID Maximum Utilitya Bradley-Terry-Luce Logit

1 17 79.2% 45.9% 72.4% 2 18 10.4% 32.7% 16.4% 3 19 10.4% 21.4% 11.1%

a. Including tied simulations b. 23 out of 24 subjects are used in the Bradley-Terry-Luce and Logit methods because these subjects have all nonnegative scores.

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5.3.3 Segment 3: Small Escapers

This segment is a large mix between consumers, with a majority age between 18 to 24 years old. This segment’s

relative size is only 12% of the overall sample size. Overall, this segment utilise their backpack as a fashion accessory

and travelling purposes, and therefore value a small bag design. This segment’s relative size is 12%.

5.3.3.1 Demographics 66.6% are age between 18 to 25 years old, with 33.3% age between 35 to 44 years old

50% are female and 50% are male

33.3% earn an annual income between $100,000 to $149,999. However, 33.33% have an annual income less

than $20,000

Their most favourite backpack brand is Hershel (33.3%).

5.3.3.2 Behavioural 50% purchase a backpack once every 6 months. However 50% rarely purchase a backpack.

50% purchase backpacks through department stores, with 33.3% purchasing backpacks via online stores.

33.3% utilise their backpacks as a fashion accessory. Additionally, 16.7% use backpacks for travelling

purposes.

50% stated they mainly saw backpack advertisements in magazine publications.

5.3.3.3 Product Preference From the analysis, it is revealed that this segment place a great importance upon the size of the backpack

(importance value of 38.307). Additionally, they placed a great importance on colour of the backpack (importance

value of 21.776). Through the produced utility values, it is concluded that their ideal product is a small, pattern/print

design, waterproof material backpack with 4 zippers for $30.

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Utilities Utility Estimate Std Error

Price

$30 1.063

$40 .125 $50 -.625 $60 -.563

Size

Small 1.938 Medium 1.125 Large -.813 Extra-Large -2.250

Zippers

2 -.188 3 -.188 4 .375

5 -1.388E-16

Colour

Black -.563 Blue -.563 Red -.188 Pattern/print 1.313

Material

Faux Leather .250 Cotton -.625 Canvas -.188 Waterproof .563

Constant 5.500

Importance Values Correlationsa Preference Scores on Stimulations Price 17.040 Value Sig. Number ID Score Size 38.307 Pearson’s R 1.000 1 17 3.875 Zippers 11.106 Kendall’s tau 1.000 .000 2 18 6.438 Colour 21.776 R Square 1.000 3 19 10.750 Material 11.770 a. Correlations between observed and

estimated preferences

Averaged Importance Score

Preference Probabilities of Simulationsb Card Number ID Maximum Utilitya Bradley-Terry-Luce Logit

1 17 0.0% 18.5% 0.4% 2 18 0.0% 30.4% 1.7% 3 19 100.0% 51.1% 97.9%

a. Including tied simulations b. 6 out of 6 subjects are used in the Bradley-Terry-Luce and Logit methods because these subjects have all nonnegative scores.

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6. Target Market From the analysis, JanSport have three distinct customer segments with different product preferences. These

include:

Budget Backpackers On-The-Go Busy Bees Small Escapers Price $30 Price $50 Price $30 Size Large Size Large Size Small Zippers 5 Zippers 3 Zippers 4 Colour Pattern/Print Colour Black Colour Pattern/Print Material Cotton Material Waterproof Material Waterproof Relative Size 40% Relative Size 48% Relative Size 12%

Budget Backpack Design On-The-Go Busy Bees Design Small Escapers Design

Figure 11: E xample o f Backpack Desi gns

Taking into consideration of the segment’s characteristics and attributes, it is concluded that segment 1, Budget

Backpackers, is the ideal target market for JanSport. Through comparing the differences amongst the segments, the

Budget Backpackers indicated the following ideal behavioural characteristics:

35% stated JanSport is their favourite brand

60% age between 18 to 24 years old

70% use a backpack for university or schooling purposes

35% purchase a backpack once a year

As this segment already had an established likeness towards the JanSport brand, it is clear that this target market

would be most quick to adapt to the new product. Furthermore, their frequency of purchase further indicates the

potential for repeat purchases, thus allowing JanSport to gain profitable growth. Overall, although this target market

didn’t contain the largest number of respondents (segment 2, On-The-Go Busy Bees had a total of 48%) this segment

purchased bags relatively frequently and stated that JanSport was their favourite brand, thus making this the ideal

target market

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7. Marketing Strategies Based on the hierarchical cluster analysis research findings, the following market strategies have been developed for

JanSport and specifically to target effectively segment 1, Budget Backpackers.

7.1 Product The backpack product itself should adopt the name “Budget Backpackers” this is as this will effectively appeal to

segment 1 as they generally are aged between 18 to 24 and thus income can be seen as low. The Budget Backpack

should be made up of the following attributes:

Budget Backpackers Price $30 Size Large Zippers 5 Colour Pattern/Print Material Cotton Relative Size 40%

This product composition makes up the most appealing backpack to segment 1 and therefore JanSport should

include it as part of their new product development.

7.2 Price As segment 1 comprises of people in the 18 to 24 age bracket who generally purchase the backpack for university or

school purposes, the price needs to be set accordingly in a way that will be appealing to the target segment.

Therefore, a price of $30 will be the most appropriate for the segment and coincide with the backpack itself being a

“Budget Backpack.” This price will help to effectively position the bag as a value for money item whereby it is large

yet affordably priced. This price combined with the extravagant product features (such as large size and zippers

compartments) illustrate that the product is “value for money”, thus increasing the backpack’s overall appeal.

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7.3 Promotion Based on the segment media consumption for backpack advertisements, two key insights were revealed:

40% of the segment see backpack advertisements on television

30% of the segment see backpack advertisements in store

As a result, JanSport needs to develop an integrated marketing communications campaign whereby a key message

promoting the Budget Backpack is advertised via television ads as well as supporting posters in-store with the same

consistent message. In this way consumers develop an easily recallable brand and product which would be effective

for JanSport.

Another key insight of the data revealed that 45% of the target segment purchased their backpacks online.

Therefore, JanSport needs to also effectively advertise their products online with the consistent messages placed on

television and in-store. These advertisements can include Facebook sidebar advertisements targeted at students

aged between 18 and 24. As Instagram is a growing platform for business social media, JanSport could also establish

an account promoting the innovative bag designs they have available. Additional competitions such as “tag and

share” the image may further increase the awareness of the product.

Furthermore, since the target segment is made up predominantly of University students, poster advertisements can

be placed around Universities as well as in common University related locations such as the Co-Op book store. Print

advertisements within university magazines such as UTS Vertigo may further strengthen the message channels.

7.4 Place As mentioned, 45% of segment 1 purchase backpacks online, therefore Jansport needs to develop an easily

accessible web platform for purchase and order of the Budget Backpack. By allowing the web links to be easily

accessible, consumers will be able to purchase the bags at a faster and more efficient rate which can stimulate

positive brand positioning.

Additionally, 30% of segment 1 purchased their backpacks from department stores. This indicates that JanSport

backpacks, particularly the Budget Backpack, should be distributed and stocked at various department stores

including Myer and David Jones. Other similar retailers that fall under the “budget” theme of the backpack include

Target, Big W and K-Mart which JanSport could also use as part of their marketing channel.

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8. Recommendations To reiterate the findings, they suggest that JanSport should develop an ideal backpack with the following attributes:

Budget Backpackers Price $30 Size Large Zippers 5 Colour Pattern/Print Material Cotton Relative Size 40%

Figure 12 : E xample o f Budget Backpack D esigns

The creation of such a product will largely appeal to a market of university and school students. This is due to its

extremely affordable price, yet large size creating a position of value for money in the market place.

These consumers would best be targeted through the mediums, which they consume the most in regards to

backpack advertisements. This includes;

Television Advertisements

Social Media – Online advertisements

Print Advertisements – in store as well as on school and university campus/magazines

Due to the nature of this backpack, there is a future potential for JanSport to further target it to a wider market

including travellers on a budget who are searching for an affordable backpack that is large and useable for everyday

purchases.

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9. Limitations Although the research was completed through profound analyses and preparation, there are still various limitations

due to both subjective and objective factors.

First, due to time lacking, the number of respondents are limited to 50. According to Kalpana (2011), the most

popular and ideal amount of respondents should be 100, in order to limit the margin of error within the range of +/-

10% at any population. It is clear that a higher respondent rate could provide even more accurate data for the

research, with approximately the rate of 100 respondents’ ability to generate a safe range of accurate data and

usually applied by firms with limited budget and time for data collection. In this project, besides the consideration of

time, insufficient customer base limited the ability to produce highly accurate and reliable data. Furthermore, it is

noted that the research did not weigh the data as the purpose of the research only required percentage frequencies,

and not the comparison of relationships between variables.

Secondly, there was limited exploratory research in this project. Exploratory research such as interview or focus

group is usually applied at the beginning of every research project, as the purpose to observe and define any

possible problems that firm wants to further understand (Kowalczyk, n.d). While there were observations made

upon the design of the backpacks, due to the time constraints, no focus groups or in-depth interviews were

conducted to help further assist the research. Overall, there was limited exploratory research to properly grasp the

important factors in customers’ mind regarding the choosing and design of the JanSport backpack. Therefore, it is

acknowledged that there is a risk that sections of the report and discussed conclusions could be misleading and

provide false data for later marketing or business plan.

Lastly, there is also limited knowledge of the firm’s competitors and their products in this project. As the main aim of

the research was to uncover consumer preferences, there was limited focus on the variety of competitors within the

backpack market. It is believed that in order to be successful in the market, a firm must to consider both internal

performance and external factors. Knowing about competitors provides a better direction and knowledge in

strategies planning process, as well as better pricing and advertising. This research may further extend to identify the

various methods of communication between consumers and backpack brands. Therefore, it is recommended that

while JanSport have accomplished an insight in regards to consumer preferences, there should be additional

research within the overall backpack market.

While the research conducted yielded sufficient results and insights into consumer preferences, improvements in

samples size, exploratory research and analysis of competitors could further help JanSport acquire a deeper and

wider understanding of the market as well as supporting for future plan.

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10. Bibliography Adamsen, J.M., Rundle-Thiele, S., and Whitty, J.A., 2013 ‘Best Worst Scaling – Reflections on Presentation, Analysis, and Lesson Learnt from Case 3 BWS Experiments’, Market and Social Research, vol 21, no. 1, viewed 1st

November 2014, <http://www98.griffith.edu.au/dspace/bitstream/handle/10072/58108/90813_1.pdf?sequence=1>

Advameg Inc., 2014, Jansport Inc., Encyclopedia of Business, 2nd ed. Viewed on 15th October 2014, from <http://www.referenceforbusiness.com/history/He-Ja/JanSport-Inc.html>

Jansport, 2014, Our Story, viewed on 15th October 2014, <http://www.jansport.com/shop/en/jansport-us/content/heritageMicrosite>

Kalpana, C., 2011, How Many People Do I Need to Take My Survey?, Survey Monkey, viewed 1st November 2014,

<https://www.surveymonkey.com/blog/en/blog/2011/09/15/how-many-people-do-i-need-to-take-my-

survey/>

Kowalczyk, D. n.d., Purposes of Research: Exploratory, Descriptive & Explanatory, Education Portal, viewed 1st

November 2014, <http://education-portal.com/academy/lesson/purposes-of-research-exploratory-

descriptive-explanatory.html#qz>

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11. Appendix

Appendix 1: Survey Questionnaire 1. How many times on average would you by a backpack?

o Once a year o Every few years o Once every six months o Very rarely

2. Where do you usually purchase a backpack?

o Coop Store o Online store o Department store o Direct from distributor/retailor o Other, please specify:____________________________________________________

3. What is your favourite colour when buying a backpack?

o Black o Blue o Red o Pattern/print o Other, please specify:__________________________________________________

4. What is your main use for your backpack?

o Gym Bag o Uni Bag o Fashion accessory o Travel Bag o Other, please specify:__________________________________________________

5. Where do you often purchase a backpack?

o Big W/Kmart/Target o Department store such as Myer or David Jones o Supermarket

Other, please specify:__________________________________________________

6. What is the most influential factor when deciding where to purchase your backpack? o Social o Service o Convenience/location o Variety of options available in store o Other, please specify:__________________________________________________

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7. For each of the following sets please indicate which product bundle is most preferred and which product bundle is least preferred. (See Appendix D: Best-Worst (Max Diff) for frequency statistics)

Example:

Bundle Price Size Zippers Colour Material Most Preferred Least Preferred 1 $40 Extra-Large 4 Black Canvas 2 $50 Medium 5 Red Waterproof X 3 $60 Large 3 Black Cotton 4 $50 Small 3 Pattern/print Canvas X

Set 1 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

2 $40 Extra-Large 4 Black Canvas 5 $30 Small 2 Black Faux Leather 8 $30 Large 5 Blue Canvas

14 $50 Medium 5 Black Waterproof

Set 2 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

5 $30 Small 2 Black Faux Leather 9 $60 Large 3 Black Cotton

12 $40 Small 5 Red Cotton 16 $60 Medium 2 Red Canvas

Set 3 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

1 $40 Medium 3 Blue Faux Leather 2 $40 Extra-Large 4 Black Canvas 3 $30 Medium 4 Pattern/print Cotton 4 $50 Large 4 Red Faux Leather

Set 4 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

6 $30 Extra-Large 3 Red Waterproof 8 $30 Large 5 Blue Canvas

13 $60 Small 4 Blue Waterproof 15 $60 Extra-Large 5 Pattern/print Faux Leather

Set 5 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

3 $30 Medium 4 Pattern/print Cotton 8 $30 Large 5 Blue Canvas

11 $50 Extra-Large 2 Blue Cotton 16 $60 Medium 2 Red Canvas

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Set 6 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

7 $50 Small 3 Pattern/print Canvas 10 $40 Large 2 Pattern/print Waterproof 11 $50 Extra-Large 2 Blue Cotton 14 $50 Medium 5 Black Waterproof

Set 7 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

4 $50 Large 4 Red Faux Leather 9 $60 Large 3 Black Cotton

13 $60 Small 4 Blue Waterproof 14 $50 Medium 5 Black Waterproof

Set 8 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

1 $40 Medium 3 Blue Faux Leather 11 $50 Extra-Large 2 Blue Cotton 12 $40 Small 5 Red Cotton 13 $60 Small 4 Blue Waterproof

Set 9 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

5 $50 Large 4 Red Faux Leather 6 $30 Extra-Large 3 Red Waterproof

10 $40 Large 2 Pattern/print Waterproof 16 $60 Medium 2 Red Canvas

Set 10 Bundle Price Size Zippers Colour Material Most Preferred Least Preferred

3 $30 Medium 4 Pattern/print Cotton 7 $50 Small 3 Pattern/print Canvas

19 $60 Large 3 Black Cotton 15 $60 Extra-Large 5 Pattern/print Faux Leather

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8. Which of the following attributes is most important when deciding to purchase a bag? [tick all applicable] o Price o Colour of the bag o Type of material o Number of zipper compartments o Size of the bag o Type of base of the bag o Origin of the bag (where the bag was made) o Type of strap o Weight of the bag o Laptop component in the bag o Frontal clip feature of the bag

9. What is your preferred backpack brand?

o Billabong o Jansport o Nike o Hershel o Quicksilver o Other, please specify:__________________________________________________

10. In the past, where have you noticed backpack advertisements?

o Television o Newspaper o Magazines o Billboards o In Stores o Radio o Other, please specify:__________________________________________________

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Please indicate your level of agreement for the following:

11. I often buy things spontaneously.