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DULUTH PACK
Spring 2013
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Spring 2013 Duluth Pack
Prepared by:
Jon Hammerstrom
Cory Hoefs
Victoria Jacobsen
Kannetha Koy
Prepared for:
Rajiv Vaidyanathan
MKTG 4731—Consumer Behavior
Sec 002, TThu 8:00 a.m.
Kyle Radich
Duluth Pack
365 Canal Park Drive
Duluth, MN 55802
(218) 722-1707
Spring 2013
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Spring 2013 Duluth Pack
Content:
Background ………4
Target Market………5
Method………6
Store Manager Interview………7
Basic Observations………9
Current Layout………10
Recommendations
Recommendation #1………11
Recommendation #2………13
Recommendation #3………15
Recommendation #4………18
Recommendation #5………20
Recommendation #6………22
Purposed Remodel………24
Appendix………25
Observations
Store Manager Interview
Citations………36
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Spring 2013 Duluth Pack
Duluth Pack is a small privately owned business based in Duluth, Minnesota that makes packs for
outdoor use, recreational use, and everyday use such as school and travel bags. Duluth Packs were first
created when a French-Canadian named Camille Poirier filed for a patent for his new packsack design in
1882. Formerly known as the Poirier pack, it was a canvas sack that closed with a buckled flap, had new-
fangled shoulder straps in addition to the traditional tumpline, a revolutionary sternum strap and an umbrella
holder. This design is now referred to as the original Duluth Pack.
Poirier sold his design to Duluth Tent and Awning Company in 1911. At the time, Duluth had more
millionaires per capita than in any other town in America and the company made countless awnings for
Duluth’s businesses. While America was changing, the company also made canvas tents that attached to a
car to create the first “mobile home”. Due to its durability, Duluth Pack is a great pack for working people
with plenty of leisure time.
Finally in June 1991, the retail store in Canal Park of Duluth, Minnesota was opened and quickly
expanded to the now 5000 square-foot flagship store in 1998. While the retail store is located in Canal Park,
Duluth Pack’s headquarters remains on West Superior Street in Duluth, Minnesota. Other than making the
original pack, Duluth Pack also makes large camping packs, luggage, and various sizes of backpacks.
Background
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Spring 2013 Duluth Pack
CUSTOMER PROFILE
Target Market:
Duluth Pack’s primary
customers are business
professionals between
the ages of 35 and 65
that come into the
store with their family
or in groups. College
students are a secondary target market. Customers perceive
themselves as outdoorsy, busy people and want high quality
products that will last them a lifetime. They are not only
purchasing outdoor gear but also products to use for their real
jobs, such as portfolios and backpacks. Customers have a four-
year degree, or are currently working towards one, as well as a
high-paying job. During the week, business is slow and customers
are mainly local business professionals. During weekends the
store is extremely busy and full of tourists. Duluth Pack products
give off an image of high-class. They are a status symbol that
shows a person is successful and enjoys high quality products.
Duluth Pack packs also have a lifetime warranty. If the bag falls
apart in any way Duluth Pack will fix the bag free of charge.
Customers who purchase packs find these attributes very
appealing, making the high prices worthwhile.
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Spring 2013 Duluth Pack
Method
We have decided to observe eight different shopping habits of Duluth Pack’s customers. We
observed the direction the customers went once they entered the store, if they made a purchase, the average
time spent in the store, if they went upstairs, if they looked at multiple types of items (clothing, packs, or
outdoor gear), if they sought help or were approached by salespeople, if they pick up the packs or just looked
at them, and if they came in as a group, family, or a single person. We decided to observe these items based
on our interview with Alicia, the store manager. Alicia wants to improve the overall flow of the store so that
is the reason we decided to observe which way customers went upon entering, what items they were looking
at, and if they went upstairs. The upstairs portion of the Duluth Pack store seems to be underutilized. We
also talked with Alicia about Duluth Pack’s target market, which is why we decided to look at the groups,
family, or single variable. Our plan to observe Duluth Pack’s customers was to go to the store in pairs of two
to observe for 2-4 hour shifts mostly on the weekends. We wanted to stay close to the entrance to observe the
direction the customers went; however, we also walked around the store regularly to make sure we had
accurate observations about what the customers were doing.
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Spring 2013 Duluth Pack
Store Manager Interview
Alicia is the store manager we had the chance to interview about Duluth Pack. The biggest problem
mentioned to us was the layout of the store. Alicia mentioned that the store layout is not directed at
channeling customers toward the main attraction of the store that is Duluth Pack gear. The flow of the
product is irrelevant, in other words there is a lot of variety, and layout of the products in the store is
inconsistent. In one corner of the store there are camping supplies and across the store, in a different
corner, there are more miscellaneous camping supplies. The upper level of the store does not see the traffic
that Alicia would like it to see on a regular basis. Sixty percent of yearly sales come from clothing lines,
but clothing takes up seventy percent of the store. Now they have people focusing on marketing and not
just quality. The store is 8,500 square feet but Alicia does not feel that they are utilizing show floor space
effectively. She mentioned that this is something the store plans on fixing over the next few months.
Consumers who shop at Duluth Pack perceive themselves as outdoorsy, adventurous, and busy
business professionals. Duluth Pack products offer a high-class image with a value-expressive function
about the type of attitude people want to give off about them. These customers also value new up- to-date
products and Duluth Pack comes out with new designs and color patterns to bring back business time after
time. Consumers see Duluth Pack goods as a luxury good that is only available in the one store location. It
is a destination spot for many people visiting Duluth, and the store has a homey feel to it. It allows
customers to be in a relaxed state of mind, which aids them in purchasing high-end objects.
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Spring 2013 Duluth Pack
Primary customers for Duluth Pack are business professionals that love outdoor adventures. They are
seeking portfolios as modern day businesses require laptop use, and the portfolio packs fulfill this need. This
allows the customer to feel high-class since Duluth Pack gear is expensive while at the same time showing
they have an outdoors adventure side. College students are yet another major customer for Duluth Pack.
Students purchase backpacks for school use since they have a lifetime warranty, which is a high quality
attribute since the pack will need to last four to five years.
Although Duluth Pack is a locally operated store, it supplies backpacks all over the world. Barneys
New York is a high-class store located in New York City and Duluth Pack supplies them with packs that are
fashionable. The only difference is the logo on the packs. Duluth Pack also supplies their packs to stores in
Europe and to over 200 locations in Korea. Duluth Pack’s packs have also been in the Men’s Journal and
Good Housekeeping magazines. Duluth Pack’s great success started seven years ago when different owners
purchased the company. They took a store that was struggling and built it up to the point it is today. Alicia
said, “The owner genuinely believes in it, so people buy into it!” Having owners that are “die hard” about the
product has fueled Duluth Pack into what it is today.
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Spring 2013 Duluth Pack
The observed shoppers matched the target market, as
many were outdoor enthusiasts. Customers who were 18-24
years old were attracted to the school-oriented packs. On the
other hand, customers who were 35+ looked at outdoor gear,
clothing, accessories, and luggage. Generally, customers who
were 35+, as well as families, spent between 10 and 20 minutes
in the store. The younger customers spent about 10 minutes
maximum. We estimated the conversion rate to be around 31%.
This means that nearly one third of customers who come into
Duluth Pack’s store make a purchase. Duluth Pack’s
interception rate is around 35%. This means there are two thirds
of customers that don’t come into contact with an employee.
Customers typically did not wait long, the longest we saw a
customer wait was around five minutes. Duluth Pack has
multiple checkout locations to cut down on customer wait times.
In the store manager interview with Alicia, we found out the
primary market consists of middle-aged business people, while
the secondary market consists of college students. The business
people perceive themselves as outdoorsy, but professional at the
same time. They look for quality products such as Duluth Pack
Portfolios. According to the store manager, once they purchase
their first pack they usually want another one.
Basic Observations
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Spring 2013 Duluth Pack
Current Layout
UPPER LEVEL
LOWER LEVEL
This is the current layout
of the Duluth Pack store.
After you read our
recommendations, you
will find our proposed
layout.
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 1: Free Gift with a Purchase
Current Situation
Currently Duluth Pack does not implement the reciprocity
principle to encourage customers to purchase from the store.
Customers are buying packs that range from $150-$400
each. There is currently no extra incentive for a customers to
spend that much money on a pack when they could buy something
that would also work from Target or some other store for $60.
Recommendation
The reciprocation rule can be used to encourage customers
to buy the expensive packs. Motivating customers by giving back
to them will make them feel appreciated and they will also start to
develop a liking to the store. This will improve the moral around
the store and customers will give a positive feedback about their
Duluth Pack experience to all their peers and family.
Justification
When a customer comes into the store and wants to buy a
pack, they will be more persuaded to buy if they are given a free
leather/canvas cleaning kit, or something to help them maintain
the pack. Giving the customer something back makes them feel
like they are appreciated and the store is thankful for their
business.
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Spring 2013 Duluth Pack
According to Dr. Cialdini the rule of reciprocation says that we should try to repay, in kind, what
another person has provided us. The consumer is giving the store money and in return they are getting
the pack, but an additional item is the push the customer needs in deciding to purchase the pack. This
will not cost Duluth Pack money since the customer is already spending an average of $200 for a pack.
Another feature that would be helpful to increase customer purchases with packs would be to
have a driving distance discount. For instance when a customer comes from two hours away, they
would receive a ten percent discount on their purchase. Customers who come from further away, such
as Iowa or the Dakotas, would receive a twenty percent discount. This would show their appreciation
for customers who have traveled long distances and shopped at Duluth Pack. This will also develop a
strong liking toward the store, and these people who live far away from the Duluth area will potentially
think of Duluth Pack and buy Duluth Pack gear from their website.
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 2: Utilize Social Proof
Current Situation
Currently Duluth Pack does not use the social proof principle to
their advantage. Based on our observations there are no hints that
people can use to connect themselves to Duluth Pack. People are more
persuaded to buy products they feel match their own personality.
Recommendation
Duluth Pack could use the social proof principle to their
advantage. Social proof informs us that people are more willing to behave in a certain way by watching
others similar to them. This influence will mostly be effective when customers are able to see other
users purchase the product; they will instantly be persuaded to purchase Duluth pack as well. Also, the
current users will have the ability to inform new and prospective users on what products are more
popular and versatile.
Justification
Placing popular packs in the front of the store and labeling them “Most Popular” so that
customers will see them right away will help convince customers that others like that pack or packs.
“Advertisers love to inform us when a product is the “fastest-growing” or “largest-selling” because
they don't have to convince us directly that the product is good: they need only to say that many others
think so, which seems proof enough” (Influence, 110 ). This will decrease the amount of selling the
floor employees will have to do since the customer will be convinced after seeing that it is the most
popular item to have. People want to feel that they are apart of a certain group and observing what
others in the group are using will influence them to purchase the pack(s).
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Spring 2013 Duluth Pack
Influencing people to buy Duluth Pack gear can be as simple as displaying mannequins wearing suits and
holding portfolios or other business packs. This will give off the impression that business professionals use
the product for everyday uses. According to the social proof principle people will link themselves with the
mannequins and want to buy Duluth Pack products as well. According to Dr. Cialdini, 95% of people
imitate what they see others doing, while 5% of people are the initiators that people try to copy. This
shows that people are more likely to follow people they view as being similar to them. Besides
mannequins, Duluth Pack should promote their products around the store by posting pictures of Duluth
Pack customers using their pack ‘in action;’ Duluth Pack receives many pictures from fans and customers
in general. Television commercials with people using Duluth Pack gear in the business world, as well as
using it in an outdoor setting would influence people that see themselves in that way to purchase.
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 3: Have a Seating Area Tailored to All
Ages
Current Situation:
Duluth Pack does not have many seating
options around their store. Based on our
observations, a typical consumer who enters the
store is either with children or with a significant
other. Although Duluth Pack has merchandise for
all ages, it may still be difficult for the child or
significant other to be patient due to the time spent in the store. There is currently a sitting area near the
lower level fireplace and the books. This is a convenient place to have a seating area. However, not many
consumers are attracted to the seats due to the merchandise offered near the area.
Recommendation
Duluth Pack should continue to offer the cozy seating area near the fireplace but instead of having
overflowing shelves of books, make the seating area more family friendly by offering merchandise and
activities that will suit shoppers of all ages.
Justification:
According to Paco Underhill’s book entitled Why We Buy “In the majority of stores throughout the
world, sales would instantly be increased by the addition of one chair...a chair says: we care. Given the
chance, people will buy from people who care” (91). A seating area gives an option for customers to rest.
While this benefits the customer, this will also benefit the company by showing the customers that they
care.
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Spring 2013 Duluth Pack
The seating area in general
should be more visible for
customers due to the many racks
of clothing surrounding the area.
To increase visibility of the
seating area, the walkway to the area should be more easily accessed and a rack or two surrounding it
should be eliminated or moved to a different location of the store. Other than just having an area for
customers to just sit around, there should be merchandise and activities to keep the wandering eye within
that area. For instance, the Paul Bunyan crayons could be placed on the coffee table in the seating area
along with paper so children and adults of all ages can experiment with them. Once they have found their
love for the crayons, they will want to purchase them. In order to tailor the crayons towards a younger age
group, there should also be outdoorsy coloring books to correlate with the Duluth Pack theme.
Underhill suggests, “Shoppers make the ultimate determination of how they use the retail
environment and the products that are sold in it” (91). Having customers sample or try a product
beforehand will help influence them to make a purchase. Although the crayons are geared toward children,
parents of children always want to make sure their kids are happy. While the parents are shopping, the kids
are enjoying coloring with the Paul Bunyan crayons and will want to leave the store with at least one
crayon. The parents will want to continue to see this behavior of their kids; therefore they will agree to
purchase the crayons. Books are always entertaining for customers to look at while sitting down. However,
when there are too many books in one place, it may be too intimidating for the eye to be attracted to.
Based on our observations, very few customers spent time looking at the books—about one in seven
customers who entered Duluth Pack actually spent time looking at books. The customers who had actually
viewed the books were tourists looking for an information book either about Duluth, the North Shore, the
Boundary Waters, etc. Instead of having multiple bookshelves filled with books that are not relevant to
the customer’s needs, there should be room for local newspapers such as the Duluth News Tribune.
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Spring 2013 Duluth Pack
By offering the Duluth News Tribune, customers can spend time in the seating area learning more about
the local environment they are currently in. Underhill also states, “Adjacencies are of huge importance to
every product” (93). Other than books, newspapers, and Paul Bunyan crayons surrounding the seating area,
other hands on activities may be beneficial as well; this may include stuffed animals and beanie babies that
are currently around the store.
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 4: Place Mirrors Throughout Pack Area
Current Situation:
Duluth Pack only has mirrors in their
fitting rooms. There are no mirrors for
customers to use in order to see what clothes
will look like on them or what a pack might
look like while they wear it.
Recommendation:
Duluth Pack should place mirrors
throughout the pack area, lower clothing area, and upstairs clothing area. The mirrors should be between
four and five feet high, sixteen inches wide, and at least two feet off the ground in order for the customer
to be able to see their entire body.
Justification:
Currently, the Duluth Pack store only has mirrors in their fitting rooms. Putting mirrors throughout
the lower clothing area, pack area, and upper clothing area will slow customers down and allow them to
see what certain products will look like on. This will also eliminate the hassle of going to the fitting room
and actually trying on a simple t-shirt. According to Paco Underhill’s book Why We Buy “Self interest is
a basic part of our species.”(Underhill 168). Customers want to know how a sweatshirt will look on their
body or how a pack will sit on their shoulder. Mirrors will give customers an advantage by allowing them
to try on the packs and see how it looks and feels on them. Mirrors will be an effective attention
enhancer. The book CB2
by Babin and Harris on page 68 states that involvement creates a personal
relevance toward the product.
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Spring 2013 Duluth Pack
The customer will be able to see what the pack or clothing item will look
like on themselves, giving them a sense of what the product will do for
them. The more involving a product, the greater the chance the object will
be attended to (Babin and Harris 87). When placing the mirrors they need to
be right next to the clothes, packs, hats, or shoes. According to the book
Why We Buy, customers will decide the purchase is not worth the trouble if
they have to go out of their way to find a mirror (Underhill 183). However,
mirrors should not be in every single possible spot, as this will turn the store
into a funhouse and turn off customers. There should be four mirrors in the
pack area, four mirrors in the lower clothing area, two mirrors in the upstairs
show area, and three mirrors in the upper clothing area. According to our
observations, most of the customers go upstairs, while at least 44% of
customers go to the right when entering the store. When customers enter the
store they typically need a few seconds to adjust to everything going on
around them. The mirrors will help slow the customers down and get them
to look at the packs, which are good moneymakers. This will keep them in
the store longer and get them thinking about making a purchase. Most of
the customers that come into the store are families on vacation. Since they are on vacation, they are
probably experiential shopping in Duluth and trying to experience all that Duluth has to offer. Customers
that are experiential shopping, see their shopping experience as unique and are willing to buy something
less familiar and intriguing (Babin and Harris 197). Duluth Pack is a unique aspect of Duluth’s culture
and by putting mirrors up customers will slow down, pick up, touch, and put on a Duluth Pack and buy
something that represents Duluth and their experience in the city. Putting up mirrors will increase the
amount of thought customers put into a purchase from Duluth Pack and make them more involved with the
products in the store.
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 5: Rearrange Store Layout
Current Situation:
None of the customers who entered the store went directly
to the back wall to browse sale products. This is due to sale items
being scattered around the store. For example, there are mittens
for sale near the checkout counter, children’s clothing for sale that
is mixed in with the women’s clothing, and t-shirts for sale near a
glass case filled with small leather items. Therefore there is no
reason for customers to go to the back wall, when sale items are
scattered around the store. Another issue is the location of men
and women’s clothing. The clothing is placed side by side, with
no distinct line of division.
Recommendation:
In order to get shoppers to the back wall of the store Duluth Pack should place their sale items in
one location. According to Why We Buy “The Gap, Aeropostale, and Anthropologie—all apparel store
chains—put their discount sale products in the back left-hand corner of the store” (86). Also, Duluth Pack
should organize the clothing by gender so customers are not confused.
Justification:
As a result regular shoppers will be conditioned to go the remotest corner of the store. Once they
reach the back of the store Duluth Pack needs to make sure the pathway back to the front is well
merchandised and that at least some of the signage is facing the customer. Therefore, Duluth Pack should
paint moose prints on the floor to create a pathway back to the front of the store.
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Spring 2013 Duluth Pack
This is a unique way to guide customers through the store and keep them interested. A grocery store
effectively used a similar tactic to keep shoppers interested. The grocer wanted to keep shoppers in the
cereal aisle for longer so it applied a floor graphic of a hopscotch game. In one store study, the average
time kids played on the hopscotch graphic was almost 14 seconds. This is a long time to be standing in
front of cereal without buying some. We believe the moose prints will have a similar effect on children and
consequently keep them occupied. Duluth Pack should also segment their clothing by gender. Dividing the
clothing by gender will decrease customer confusion and they will know for sure that the clothes they are
buying are for the appropriate gender. Men will not make a purchase if they cannot find something within
one or two tries. Therefore, men’s clothing should be placed near the fitting rooms because men who try on
clothing make a purchase 65% of the time. Women’s clothing should be spaced out so female customers do
not feel squished between racks. This makes them feel uncomfortable and they will not make a purchase
(Underhill, 1999).
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Spring 2013 Duluth Pack
RECOMMENDATIONS
Recommendation 6: Scarcity
Current Situation
Currently, Duluth Pack
does not mention their packs are
hand-made, and how hard the
packs are to make along with the
time it take to construct them.
Styles and color patterns are
only there while supplies last,
and Duluth Pack could use the
scarcity principle to their
advantage. These are implication that Duluth Pack should use to their advantage to sell more packs.
Recommendation
The scarcity principle states that people are more likely to buy when they know that item is limited
or has a time restriction. Duluth Pack can use this principle to let consumers know that certain packs and
other items are in limited or short supply. The canvas for the packs cannot be bought in United States due to
Army restrictions, so Duluth Pack needs to order it from India.
Justification
When customers know that a certain product is in limited supply, they are more inclined to make a
purchase. When a customer sees an item they are interested in, the shortcut of scarcity comes into play.
Consumers are more prompt to buy an item if they notice only a few left.
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Spring 2013 Duluth Pack
“Probably the most straightforward use of the scarcity principle occurs in the “limited-number” tactic in
which a consumer is informed that a certain product is in short supply and cannot be guaranteed to last
long” (Influence. 200). When items are listed as being in limited supply, the value of the product increases,
making it more wanted by the consumer. Certain styles and color options of the pack will not be around the
store for long periods of
time. Duluth Pack could
inform customers that they
cannot get the canvas here
in the United States, but
have to order it from out of
the country instead. This
can cause shortages in the
number of packs available
for sale.
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Spring 2013 Duluth Pack
Proposed Remodel
UPPER LEVEL
LOWER LEVEL
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Spring 2013 Duluth Pack
APPENDIX
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Spring 2013 Duluth Pack
APPENDIX 1
Jon’s Observations (added up for number of times observed)
Which direction did
customers go when
entering store?
Left
18+6+15=
39
Right
24+12+15=
51
Straight
18+11+13=
42 132
total
entries
Purchase? Yes
15+20+15=50
No 410
total entries
Avg. time Spent 0-10
4+3+5= 12
11-19
7+7+2=16
20+
5+1=6
Upstairs Yes
24+20+28=
72
No
Pack, Clothes, Outdoor
Gear, All
Pack Clothes
15+4=19
Outdoor
Gear
1
Multiple
17+49+21=87
Approached by
Salespeople
Yes
8+4+8=20
No
61
number of times
encountered sales
person
Do customers seek help? Yes
25+10+6=41
No
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Spring 2013 Duluth Pack
Pick up Packs or look Pick up/touch
40+18+6=64
Look
12 total
Group,
single, family
Group
55+23+20= 98
Single
5+9+20=34
Family
41+21+26=
90
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Spring 2013 Duluth Pack
Victoria’s Observations (added up for number of times observed)
Which direction did customers go
when entering store?
Left
15+5+12=
32
Right
27+15+15=
57
Straight
12+11+10=
33
57
122
Purchase? Yes
9+16+10=35
No
Avg. time Spent 0-10
10+5+4= 19
11-19
11+9+8=28
20+
3+2+4=9
Upstairs Yes
27+18+20=
65
No
Pack, Clothes, Outdoor Gear, All Pack
1
Clothes
9+6=15
Outdoor
Gear
2
Multiple
14+32+19=65
Approached by Salespeople Yes
4+6+5=15
No
19
Do customers seek help? Yes
20+13=33
No
4
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Spring 2013 Duluth Pack
Pick up Packs or look Pick up/touch
42+12+9=63
Look
8+11=19
Group,
single, family
Group
24+30+12= 66
Single
2+4+12=18
Family
22+36+14=
72
Cory’s Observations (added up for number of times observed)
Which direction did
customers go when
entering store?
Left
11+9+10=
30
Right
11+10+12=
32
Straight
5+7+9=21
32
Purchase? Yes
8+7+9= 24
No
Avg. time Spent 0-10
10+10+13=
33
11-15
9+8+10=
27
20+
5+3+7+ 15
Upstairs Yes
13+ 12+
15=
40
No
Pack, Clothes,
Outdoor Gear, All
Pack
13+ 12+
10=
35
Clothes
12+ 9+ 10
31
Outdoor Gear
5+ 8+ 7= 20
Multiple
13+12+14=
39
Sale items
16+18+20=
54
Approached by
Salespeople
Yes
5+6+5
= 16
No NOTE**
Sales staff did not
greet customers as
they entered the store
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31Spring 2013 Duluth Pack
Do customers seek help? Yes
2+3+5=
10
No
26
Pick up Packs or look Pick up/touch
18+20+25= 63
Look
8+11=19
5+ 6+8= 19
Group,
single, family
Group
15+14+12= 40
Single
10+ 5+ 6= 21
Family
9+ 8+ 12= 29
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32Spring 2013 Duluth Pack
Kannetha’s Observations (added up for number of times observed)
Which direction did
customers go when
entering store?
Left
11
Right
41
Straight
21
*NOTE: Many customers are walking into
different directions due to layout of the
store—so many different walkways 41
Purchase? Yes
19
No
I
Avg. time Spent 0-10
12
11-19
10
20+
2
Upstairs Yes
ALL
No
Pack, Clothes, Outdoor
Gear, All
Pack
9
Clothes
6
Outdoor
Gear
6
Multiple
6
Approached by
Salespeople
Yes
21
No
5
32
33Spring 2013 Duluth Pack
Do customers seek help? Yes
19
No
13
40
Pick up Packs or look Pick up/touch
24
Look
8
Group,
single, family
Group
3
Single
2
Family
22
Couple
17
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34Spring 2013 Duluth Pack
APPENDIX 2
Manager Interview Notes
Who is buying the product?
Business professionals and college students
What is the average age of customers?
Middle-aged men and women, 40-60 years old
College students, 20-24 years old
How do customers perceive themselves?
Outdoor enthusiast, professional, busy
Why do people decide to visit Duluth Pack?
Cabin-like, homey, and it is the only store in the world
Why do customers purchase Duluth Packs?
They are an investment and seen as a status symbol
What is the typical customer profile?
Four-year degree, nice job, hard worker. Different for different stores for example: Urban outfitters attracts
hipsters. Not typically people who are on their way to camp.
How much of sales come from clothing?
The majority, clothing takes up 70% of the store
When can we call Kyle?
Anytime!
Are Duluth Packs sold in any stores besides the one in Canal Park?
Yes they are sold in Korea, Barneys in New York, Urban outfitters, and China.
Is every pack handmade?
Yes, they are all made in America except for canvas, which is made in India due to a military restriction.
Do customers typically purchase more than one Duluth Pack?
Yes, once they have one they want another. We create different styles to keep customers coming back.
Can packs be custom made?
Packs can be custom made and you can even put your own corporate logo on the packs!
How would you describe the layout?
Not very good. Channeling customers is not a focus of the store. Horrible flow and chopped. Upstairs not
attractive.
Which packs are more fashion oriented?
The shell bags are more of a fashion line, we are coming out with neon ones soon.
34
35Spring 2013 Duluth Pack
Are Duluth Packs advertised?
They have been in Men’s Journal and Good Housekeeping. They are endorsed and used by several bands
including My Chemical Romance.
What do you want to improve in the store?
Re-merchandising
Has management changed recently?
Yes, seven years ago Duluth Pack was purchased and the brand was re-built
35
36Spring 2013 Duluth Pack
Citations
1. Underhill, P. Why we buy: The science of shopping. New York, NY: Simon and Schuster, Inc., 1999.
Print.
2. Babin, B. J., and E. Harris. CB2 . 2nd ed. Mason, OH: South-Western Pub, 2010. Print.
3.Cialdini, R. (2001). Influence science and practice. (fifth ed.). Boston: Pearson Education Inc.
A special thanks to Alicia, Kyle, and all of the Duluth Pack employees. Thank you for being
there to answer questions and for allowing us to use your store for our consumer behavior
project. We really appreciate it!
36

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Duluth Pack Consulting Project

  • 2. 2 2 Spring 2013 Duluth Pack Prepared by: Jon Hammerstrom Cory Hoefs Victoria Jacobsen Kannetha Koy Prepared for: Rajiv Vaidyanathan MKTG 4731—Consumer Behavior Sec 002, TThu 8:00 a.m. Kyle Radich Duluth Pack 365 Canal Park Drive Duluth, MN 55802 (218) 722-1707 Spring 2013
  • 3. 3 3 Spring 2013 Duluth Pack Content: Background ………4 Target Market………5 Method………6 Store Manager Interview………7 Basic Observations………9 Current Layout………10 Recommendations Recommendation #1………11 Recommendation #2………13 Recommendation #3………15 Recommendation #4………18 Recommendation #5………20 Recommendation #6………22 Purposed Remodel………24 Appendix………25 Observations Store Manager Interview Citations………36
  • 4. 4 4 Spring 2013 Duluth Pack Duluth Pack is a small privately owned business based in Duluth, Minnesota that makes packs for outdoor use, recreational use, and everyday use such as school and travel bags. Duluth Packs were first created when a French-Canadian named Camille Poirier filed for a patent for his new packsack design in 1882. Formerly known as the Poirier pack, it was a canvas sack that closed with a buckled flap, had new- fangled shoulder straps in addition to the traditional tumpline, a revolutionary sternum strap and an umbrella holder. This design is now referred to as the original Duluth Pack. Poirier sold his design to Duluth Tent and Awning Company in 1911. At the time, Duluth had more millionaires per capita than in any other town in America and the company made countless awnings for Duluth’s businesses. While America was changing, the company also made canvas tents that attached to a car to create the first “mobile home”. Due to its durability, Duluth Pack is a great pack for working people with plenty of leisure time. Finally in June 1991, the retail store in Canal Park of Duluth, Minnesota was opened and quickly expanded to the now 5000 square-foot flagship store in 1998. While the retail store is located in Canal Park, Duluth Pack’s headquarters remains on West Superior Street in Duluth, Minnesota. Other than making the original pack, Duluth Pack also makes large camping packs, luggage, and various sizes of backpacks. Background
  • 5. 5 5 Spring 2013 Duluth Pack CUSTOMER PROFILE Target Market: Duluth Pack’s primary customers are business professionals between the ages of 35 and 65 that come into the store with their family or in groups. College students are a secondary target market. Customers perceive themselves as outdoorsy, busy people and want high quality products that will last them a lifetime. They are not only purchasing outdoor gear but also products to use for their real jobs, such as portfolios and backpacks. Customers have a four- year degree, or are currently working towards one, as well as a high-paying job. During the week, business is slow and customers are mainly local business professionals. During weekends the store is extremely busy and full of tourists. Duluth Pack products give off an image of high-class. They are a status symbol that shows a person is successful and enjoys high quality products. Duluth Pack packs also have a lifetime warranty. If the bag falls apart in any way Duluth Pack will fix the bag free of charge. Customers who purchase packs find these attributes very appealing, making the high prices worthwhile.
  • 6. 6 6 Spring 2013 Duluth Pack Method We have decided to observe eight different shopping habits of Duluth Pack’s customers. We observed the direction the customers went once they entered the store, if they made a purchase, the average time spent in the store, if they went upstairs, if they looked at multiple types of items (clothing, packs, or outdoor gear), if they sought help or were approached by salespeople, if they pick up the packs or just looked at them, and if they came in as a group, family, or a single person. We decided to observe these items based on our interview with Alicia, the store manager. Alicia wants to improve the overall flow of the store so that is the reason we decided to observe which way customers went upon entering, what items they were looking at, and if they went upstairs. The upstairs portion of the Duluth Pack store seems to be underutilized. We also talked with Alicia about Duluth Pack’s target market, which is why we decided to look at the groups, family, or single variable. Our plan to observe Duluth Pack’s customers was to go to the store in pairs of two to observe for 2-4 hour shifts mostly on the weekends. We wanted to stay close to the entrance to observe the direction the customers went; however, we also walked around the store regularly to make sure we had accurate observations about what the customers were doing.
  • 7. 7 7 Spring 2013 Duluth Pack Store Manager Interview Alicia is the store manager we had the chance to interview about Duluth Pack. The biggest problem mentioned to us was the layout of the store. Alicia mentioned that the store layout is not directed at channeling customers toward the main attraction of the store that is Duluth Pack gear. The flow of the product is irrelevant, in other words there is a lot of variety, and layout of the products in the store is inconsistent. In one corner of the store there are camping supplies and across the store, in a different corner, there are more miscellaneous camping supplies. The upper level of the store does not see the traffic that Alicia would like it to see on a regular basis. Sixty percent of yearly sales come from clothing lines, but clothing takes up seventy percent of the store. Now they have people focusing on marketing and not just quality. The store is 8,500 square feet but Alicia does not feel that they are utilizing show floor space effectively. She mentioned that this is something the store plans on fixing over the next few months. Consumers who shop at Duluth Pack perceive themselves as outdoorsy, adventurous, and busy business professionals. Duluth Pack products offer a high-class image with a value-expressive function about the type of attitude people want to give off about them. These customers also value new up- to-date products and Duluth Pack comes out with new designs and color patterns to bring back business time after time. Consumers see Duluth Pack goods as a luxury good that is only available in the one store location. It is a destination spot for many people visiting Duluth, and the store has a homey feel to it. It allows customers to be in a relaxed state of mind, which aids them in purchasing high-end objects.
  • 8. 8 8 Spring 2013 Duluth Pack Primary customers for Duluth Pack are business professionals that love outdoor adventures. They are seeking portfolios as modern day businesses require laptop use, and the portfolio packs fulfill this need. This allows the customer to feel high-class since Duluth Pack gear is expensive while at the same time showing they have an outdoors adventure side. College students are yet another major customer for Duluth Pack. Students purchase backpacks for school use since they have a lifetime warranty, which is a high quality attribute since the pack will need to last four to five years. Although Duluth Pack is a locally operated store, it supplies backpacks all over the world. Barneys New York is a high-class store located in New York City and Duluth Pack supplies them with packs that are fashionable. The only difference is the logo on the packs. Duluth Pack also supplies their packs to stores in Europe and to over 200 locations in Korea. Duluth Pack’s packs have also been in the Men’s Journal and Good Housekeeping magazines. Duluth Pack’s great success started seven years ago when different owners purchased the company. They took a store that was struggling and built it up to the point it is today. Alicia said, “The owner genuinely believes in it, so people buy into it!” Having owners that are “die hard” about the product has fueled Duluth Pack into what it is today.
  • 9. 9 9 Spring 2013 Duluth Pack The observed shoppers matched the target market, as many were outdoor enthusiasts. Customers who were 18-24 years old were attracted to the school-oriented packs. On the other hand, customers who were 35+ looked at outdoor gear, clothing, accessories, and luggage. Generally, customers who were 35+, as well as families, spent between 10 and 20 minutes in the store. The younger customers spent about 10 minutes maximum. We estimated the conversion rate to be around 31%. This means that nearly one third of customers who come into Duluth Pack’s store make a purchase. Duluth Pack’s interception rate is around 35%. This means there are two thirds of customers that don’t come into contact with an employee. Customers typically did not wait long, the longest we saw a customer wait was around five minutes. Duluth Pack has multiple checkout locations to cut down on customer wait times. In the store manager interview with Alicia, we found out the primary market consists of middle-aged business people, while the secondary market consists of college students. The business people perceive themselves as outdoorsy, but professional at the same time. They look for quality products such as Duluth Pack Portfolios. According to the store manager, once they purchase their first pack they usually want another one. Basic Observations
  • 10. 10 10 Spring 2013 Duluth Pack Current Layout UPPER LEVEL LOWER LEVEL This is the current layout of the Duluth Pack store. After you read our recommendations, you will find our proposed layout.
  • 11. 11 11 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 1: Free Gift with a Purchase Current Situation Currently Duluth Pack does not implement the reciprocity principle to encourage customers to purchase from the store. Customers are buying packs that range from $150-$400 each. There is currently no extra incentive for a customers to spend that much money on a pack when they could buy something that would also work from Target or some other store for $60. Recommendation The reciprocation rule can be used to encourage customers to buy the expensive packs. Motivating customers by giving back to them will make them feel appreciated and they will also start to develop a liking to the store. This will improve the moral around the store and customers will give a positive feedback about their Duluth Pack experience to all their peers and family. Justification When a customer comes into the store and wants to buy a pack, they will be more persuaded to buy if they are given a free leather/canvas cleaning kit, or something to help them maintain the pack. Giving the customer something back makes them feel like they are appreciated and the store is thankful for their business.
  • 12. 12 12 Spring 2013 Duluth Pack According to Dr. Cialdini the rule of reciprocation says that we should try to repay, in kind, what another person has provided us. The consumer is giving the store money and in return they are getting the pack, but an additional item is the push the customer needs in deciding to purchase the pack. This will not cost Duluth Pack money since the customer is already spending an average of $200 for a pack. Another feature that would be helpful to increase customer purchases with packs would be to have a driving distance discount. For instance when a customer comes from two hours away, they would receive a ten percent discount on their purchase. Customers who come from further away, such as Iowa or the Dakotas, would receive a twenty percent discount. This would show their appreciation for customers who have traveled long distances and shopped at Duluth Pack. This will also develop a strong liking toward the store, and these people who live far away from the Duluth area will potentially think of Duluth Pack and buy Duluth Pack gear from their website.
  • 13. 13 13 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 2: Utilize Social Proof Current Situation Currently Duluth Pack does not use the social proof principle to their advantage. Based on our observations there are no hints that people can use to connect themselves to Duluth Pack. People are more persuaded to buy products they feel match their own personality. Recommendation Duluth Pack could use the social proof principle to their advantage. Social proof informs us that people are more willing to behave in a certain way by watching others similar to them. This influence will mostly be effective when customers are able to see other users purchase the product; they will instantly be persuaded to purchase Duluth pack as well. Also, the current users will have the ability to inform new and prospective users on what products are more popular and versatile. Justification Placing popular packs in the front of the store and labeling them “Most Popular” so that customers will see them right away will help convince customers that others like that pack or packs. “Advertisers love to inform us when a product is the “fastest-growing” or “largest-selling” because they don't have to convince us directly that the product is good: they need only to say that many others think so, which seems proof enough” (Influence, 110 ). This will decrease the amount of selling the floor employees will have to do since the customer will be convinced after seeing that it is the most popular item to have. People want to feel that they are apart of a certain group and observing what others in the group are using will influence them to purchase the pack(s).
  • 14. 14 14 Spring 2013 Duluth Pack Influencing people to buy Duluth Pack gear can be as simple as displaying mannequins wearing suits and holding portfolios or other business packs. This will give off the impression that business professionals use the product for everyday uses. According to the social proof principle people will link themselves with the mannequins and want to buy Duluth Pack products as well. According to Dr. Cialdini, 95% of people imitate what they see others doing, while 5% of people are the initiators that people try to copy. This shows that people are more likely to follow people they view as being similar to them. Besides mannequins, Duluth Pack should promote their products around the store by posting pictures of Duluth Pack customers using their pack ‘in action;’ Duluth Pack receives many pictures from fans and customers in general. Television commercials with people using Duluth Pack gear in the business world, as well as using it in an outdoor setting would influence people that see themselves in that way to purchase.
  • 15. 15 15 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 3: Have a Seating Area Tailored to All Ages Current Situation: Duluth Pack does not have many seating options around their store. Based on our observations, a typical consumer who enters the store is either with children or with a significant other. Although Duluth Pack has merchandise for all ages, it may still be difficult for the child or significant other to be patient due to the time spent in the store. There is currently a sitting area near the lower level fireplace and the books. This is a convenient place to have a seating area. However, not many consumers are attracted to the seats due to the merchandise offered near the area. Recommendation Duluth Pack should continue to offer the cozy seating area near the fireplace but instead of having overflowing shelves of books, make the seating area more family friendly by offering merchandise and activities that will suit shoppers of all ages. Justification: According to Paco Underhill’s book entitled Why We Buy “In the majority of stores throughout the world, sales would instantly be increased by the addition of one chair...a chair says: we care. Given the chance, people will buy from people who care” (91). A seating area gives an option for customers to rest. While this benefits the customer, this will also benefit the company by showing the customers that they care.
  • 16. 16 16 Spring 2013 Duluth Pack The seating area in general should be more visible for customers due to the many racks of clothing surrounding the area. To increase visibility of the seating area, the walkway to the area should be more easily accessed and a rack or two surrounding it should be eliminated or moved to a different location of the store. Other than just having an area for customers to just sit around, there should be merchandise and activities to keep the wandering eye within that area. For instance, the Paul Bunyan crayons could be placed on the coffee table in the seating area along with paper so children and adults of all ages can experiment with them. Once they have found their love for the crayons, they will want to purchase them. In order to tailor the crayons towards a younger age group, there should also be outdoorsy coloring books to correlate with the Duluth Pack theme. Underhill suggests, “Shoppers make the ultimate determination of how they use the retail environment and the products that are sold in it” (91). Having customers sample or try a product beforehand will help influence them to make a purchase. Although the crayons are geared toward children, parents of children always want to make sure their kids are happy. While the parents are shopping, the kids are enjoying coloring with the Paul Bunyan crayons and will want to leave the store with at least one crayon. The parents will want to continue to see this behavior of their kids; therefore they will agree to purchase the crayons. Books are always entertaining for customers to look at while sitting down. However, when there are too many books in one place, it may be too intimidating for the eye to be attracted to. Based on our observations, very few customers spent time looking at the books—about one in seven customers who entered Duluth Pack actually spent time looking at books. The customers who had actually viewed the books were tourists looking for an information book either about Duluth, the North Shore, the Boundary Waters, etc. Instead of having multiple bookshelves filled with books that are not relevant to the customer’s needs, there should be room for local newspapers such as the Duluth News Tribune.
  • 17. 17 17 Spring 2013 Duluth Pack By offering the Duluth News Tribune, customers can spend time in the seating area learning more about the local environment they are currently in. Underhill also states, “Adjacencies are of huge importance to every product” (93). Other than books, newspapers, and Paul Bunyan crayons surrounding the seating area, other hands on activities may be beneficial as well; this may include stuffed animals and beanie babies that are currently around the store.
  • 18. 18 18 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 4: Place Mirrors Throughout Pack Area Current Situation: Duluth Pack only has mirrors in their fitting rooms. There are no mirrors for customers to use in order to see what clothes will look like on them or what a pack might look like while they wear it. Recommendation: Duluth Pack should place mirrors throughout the pack area, lower clothing area, and upstairs clothing area. The mirrors should be between four and five feet high, sixteen inches wide, and at least two feet off the ground in order for the customer to be able to see their entire body. Justification: Currently, the Duluth Pack store only has mirrors in their fitting rooms. Putting mirrors throughout the lower clothing area, pack area, and upper clothing area will slow customers down and allow them to see what certain products will look like on. This will also eliminate the hassle of going to the fitting room and actually trying on a simple t-shirt. According to Paco Underhill’s book Why We Buy “Self interest is a basic part of our species.”(Underhill 168). Customers want to know how a sweatshirt will look on their body or how a pack will sit on their shoulder. Mirrors will give customers an advantage by allowing them to try on the packs and see how it looks and feels on them. Mirrors will be an effective attention enhancer. The book CB2 by Babin and Harris on page 68 states that involvement creates a personal relevance toward the product.
  • 19. 19 19 Spring 2013 Duluth Pack The customer will be able to see what the pack or clothing item will look like on themselves, giving them a sense of what the product will do for them. The more involving a product, the greater the chance the object will be attended to (Babin and Harris 87). When placing the mirrors they need to be right next to the clothes, packs, hats, or shoes. According to the book Why We Buy, customers will decide the purchase is not worth the trouble if they have to go out of their way to find a mirror (Underhill 183). However, mirrors should not be in every single possible spot, as this will turn the store into a funhouse and turn off customers. There should be four mirrors in the pack area, four mirrors in the lower clothing area, two mirrors in the upstairs show area, and three mirrors in the upper clothing area. According to our observations, most of the customers go upstairs, while at least 44% of customers go to the right when entering the store. When customers enter the store they typically need a few seconds to adjust to everything going on around them. The mirrors will help slow the customers down and get them to look at the packs, which are good moneymakers. This will keep them in the store longer and get them thinking about making a purchase. Most of the customers that come into the store are families on vacation. Since they are on vacation, they are probably experiential shopping in Duluth and trying to experience all that Duluth has to offer. Customers that are experiential shopping, see their shopping experience as unique and are willing to buy something less familiar and intriguing (Babin and Harris 197). Duluth Pack is a unique aspect of Duluth’s culture and by putting mirrors up customers will slow down, pick up, touch, and put on a Duluth Pack and buy something that represents Duluth and their experience in the city. Putting up mirrors will increase the amount of thought customers put into a purchase from Duluth Pack and make them more involved with the products in the store.
  • 20. 20 20 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 5: Rearrange Store Layout Current Situation: None of the customers who entered the store went directly to the back wall to browse sale products. This is due to sale items being scattered around the store. For example, there are mittens for sale near the checkout counter, children’s clothing for sale that is mixed in with the women’s clothing, and t-shirts for sale near a glass case filled with small leather items. Therefore there is no reason for customers to go to the back wall, when sale items are scattered around the store. Another issue is the location of men and women’s clothing. The clothing is placed side by side, with no distinct line of division. Recommendation: In order to get shoppers to the back wall of the store Duluth Pack should place their sale items in one location. According to Why We Buy “The Gap, Aeropostale, and Anthropologie—all apparel store chains—put their discount sale products in the back left-hand corner of the store” (86). Also, Duluth Pack should organize the clothing by gender so customers are not confused. Justification: As a result regular shoppers will be conditioned to go the remotest corner of the store. Once they reach the back of the store Duluth Pack needs to make sure the pathway back to the front is well merchandised and that at least some of the signage is facing the customer. Therefore, Duluth Pack should paint moose prints on the floor to create a pathway back to the front of the store.
  • 21. 21 21 Spring 2013 Duluth Pack This is a unique way to guide customers through the store and keep them interested. A grocery store effectively used a similar tactic to keep shoppers interested. The grocer wanted to keep shoppers in the cereal aisle for longer so it applied a floor graphic of a hopscotch game. In one store study, the average time kids played on the hopscotch graphic was almost 14 seconds. This is a long time to be standing in front of cereal without buying some. We believe the moose prints will have a similar effect on children and consequently keep them occupied. Duluth Pack should also segment their clothing by gender. Dividing the clothing by gender will decrease customer confusion and they will know for sure that the clothes they are buying are for the appropriate gender. Men will not make a purchase if they cannot find something within one or two tries. Therefore, men’s clothing should be placed near the fitting rooms because men who try on clothing make a purchase 65% of the time. Women’s clothing should be spaced out so female customers do not feel squished between racks. This makes them feel uncomfortable and they will not make a purchase (Underhill, 1999).
  • 22. 22 22 Spring 2013 Duluth Pack RECOMMENDATIONS Recommendation 6: Scarcity Current Situation Currently, Duluth Pack does not mention their packs are hand-made, and how hard the packs are to make along with the time it take to construct them. Styles and color patterns are only there while supplies last, and Duluth Pack could use the scarcity principle to their advantage. These are implication that Duluth Pack should use to their advantage to sell more packs. Recommendation The scarcity principle states that people are more likely to buy when they know that item is limited or has a time restriction. Duluth Pack can use this principle to let consumers know that certain packs and other items are in limited or short supply. The canvas for the packs cannot be bought in United States due to Army restrictions, so Duluth Pack needs to order it from India. Justification When customers know that a certain product is in limited supply, they are more inclined to make a purchase. When a customer sees an item they are interested in, the shortcut of scarcity comes into play. Consumers are more prompt to buy an item if they notice only a few left.
  • 23. 23 23 Spring 2013 Duluth Pack “Probably the most straightforward use of the scarcity principle occurs in the “limited-number” tactic in which a consumer is informed that a certain product is in short supply and cannot be guaranteed to last long” (Influence. 200). When items are listed as being in limited supply, the value of the product increases, making it more wanted by the consumer. Certain styles and color options of the pack will not be around the store for long periods of time. Duluth Pack could inform customers that they cannot get the canvas here in the United States, but have to order it from out of the country instead. This can cause shortages in the number of packs available for sale.
  • 24. 24 24 Spring 2013 Duluth Pack Proposed Remodel UPPER LEVEL LOWER LEVEL
  • 25. 25 25 Spring 2013 Duluth Pack APPENDIX
  • 26. 26 26 Spring 2013 Duluth Pack APPENDIX 1 Jon’s Observations (added up for number of times observed) Which direction did customers go when entering store? Left 18+6+15= 39 Right 24+12+15= 51 Straight 18+11+13= 42 132 total entries Purchase? Yes 15+20+15=50 No 410 total entries Avg. time Spent 0-10 4+3+5= 12 11-19 7+7+2=16 20+ 5+1=6 Upstairs Yes 24+20+28= 72 No Pack, Clothes, Outdoor Gear, All Pack Clothes 15+4=19 Outdoor Gear 1 Multiple 17+49+21=87 Approached by Salespeople Yes 8+4+8=20 No 61 number of times encountered sales person Do customers seek help? Yes 25+10+6=41 No
  • 27. 27 27 Spring 2013 Duluth Pack Pick up Packs or look Pick up/touch 40+18+6=64 Look 12 total Group, single, family Group 55+23+20= 98 Single 5+9+20=34 Family 41+21+26= 90
  • 28. 28 28 Spring 2013 Duluth Pack Victoria’s Observations (added up for number of times observed) Which direction did customers go when entering store? Left 15+5+12= 32 Right 27+15+15= 57 Straight 12+11+10= 33 57 122 Purchase? Yes 9+16+10=35 No Avg. time Spent 0-10 10+5+4= 19 11-19 11+9+8=28 20+ 3+2+4=9 Upstairs Yes 27+18+20= 65 No Pack, Clothes, Outdoor Gear, All Pack 1 Clothes 9+6=15 Outdoor Gear 2 Multiple 14+32+19=65 Approached by Salespeople Yes 4+6+5=15 No 19 Do customers seek help? Yes 20+13=33 No 4
  • 29. 29 29 Spring 2013 Duluth Pack Pick up Packs or look Pick up/touch 42+12+9=63 Look 8+11=19 Group, single, family Group 24+30+12= 66 Single 2+4+12=18 Family 22+36+14= 72
  • 30. Cory’s Observations (added up for number of times observed) Which direction did customers go when entering store? Left 11+9+10= 30 Right 11+10+12= 32 Straight 5+7+9=21 32 Purchase? Yes 8+7+9= 24 No Avg. time Spent 0-10 10+10+13= 33 11-15 9+8+10= 27 20+ 5+3+7+ 15 Upstairs Yes 13+ 12+ 15= 40 No Pack, Clothes, Outdoor Gear, All Pack 13+ 12+ 10= 35 Clothes 12+ 9+ 10 31 Outdoor Gear 5+ 8+ 7= 20 Multiple 13+12+14= 39 Sale items 16+18+20= 54 Approached by Salespeople Yes 5+6+5 = 16 No NOTE** Sales staff did not greet customers as they entered the store 30
  • 31. 31Spring 2013 Duluth Pack Do customers seek help? Yes 2+3+5= 10 No 26 Pick up Packs or look Pick up/touch 18+20+25= 63 Look 8+11=19 5+ 6+8= 19 Group, single, family Group 15+14+12= 40 Single 10+ 5+ 6= 21 Family 9+ 8+ 12= 29 31
  • 32. 32Spring 2013 Duluth Pack Kannetha’s Observations (added up for number of times observed) Which direction did customers go when entering store? Left 11 Right 41 Straight 21 *NOTE: Many customers are walking into different directions due to layout of the store—so many different walkways 41 Purchase? Yes 19 No I Avg. time Spent 0-10 12 11-19 10 20+ 2 Upstairs Yes ALL No Pack, Clothes, Outdoor Gear, All Pack 9 Clothes 6 Outdoor Gear 6 Multiple 6 Approached by Salespeople Yes 21 No 5 32
  • 33. 33Spring 2013 Duluth Pack Do customers seek help? Yes 19 No 13 40 Pick up Packs or look Pick up/touch 24 Look 8 Group, single, family Group 3 Single 2 Family 22 Couple 17 33
  • 34. 34Spring 2013 Duluth Pack APPENDIX 2 Manager Interview Notes Who is buying the product? Business professionals and college students What is the average age of customers? Middle-aged men and women, 40-60 years old College students, 20-24 years old How do customers perceive themselves? Outdoor enthusiast, professional, busy Why do people decide to visit Duluth Pack? Cabin-like, homey, and it is the only store in the world Why do customers purchase Duluth Packs? They are an investment and seen as a status symbol What is the typical customer profile? Four-year degree, nice job, hard worker. Different for different stores for example: Urban outfitters attracts hipsters. Not typically people who are on their way to camp. How much of sales come from clothing? The majority, clothing takes up 70% of the store When can we call Kyle? Anytime! Are Duluth Packs sold in any stores besides the one in Canal Park? Yes they are sold in Korea, Barneys in New York, Urban outfitters, and China. Is every pack handmade? Yes, they are all made in America except for canvas, which is made in India due to a military restriction. Do customers typically purchase more than one Duluth Pack? Yes, once they have one they want another. We create different styles to keep customers coming back. Can packs be custom made? Packs can be custom made and you can even put your own corporate logo on the packs! How would you describe the layout? Not very good. Channeling customers is not a focus of the store. Horrible flow and chopped. Upstairs not attractive. Which packs are more fashion oriented? The shell bags are more of a fashion line, we are coming out with neon ones soon. 34
  • 35. 35Spring 2013 Duluth Pack Are Duluth Packs advertised? They have been in Men’s Journal and Good Housekeeping. They are endorsed and used by several bands including My Chemical Romance. What do you want to improve in the store? Re-merchandising Has management changed recently? Yes, seven years ago Duluth Pack was purchased and the brand was re-built 35
  • 36. 36Spring 2013 Duluth Pack Citations 1. Underhill, P. Why we buy: The science of shopping. New York, NY: Simon and Schuster, Inc., 1999. Print. 2. Babin, B. J., and E. Harris. CB2 . 2nd ed. Mason, OH: South-Western Pub, 2010. Print. 3.Cialdini, R. (2001). Influence science and practice. (fifth ed.). Boston: Pearson Education Inc. A special thanks to Alicia, Kyle, and all of the Duluth Pack employees. Thank you for being there to answer questions and for allowing us to use your store for our consumer behavior project. We really appreciate it! 36