Jansport target market

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