Optimizing Product Development for Backpacks: 'Health'

The survey found that most respondents do not prefer expensive brands, and instead choose lower-priced products. They agree that shopping is an enjoyable activity and tend to be impulsive when buying. The analysis also revealed significant correlations between variables such as the importance of quality, price, and brand loyalty. The findings suggest that when people buy the best products, they usually look for new styles and discounts. Additionally, females are more likely to purchase at sale prices. The study also found that sticking to a particular brand is influenced by gender, with females being more loyal than males. Furthermore, education, income, and age were found to be significant factors in determining price preferences.

Conducting the marketing research
Survey
In this report, a survey has been conducted with 25 respondents using the using the Consumer Decision-
Making Styles Inventory instrument. The questions of the instruments have been attached in the
appendix. Along with the questions of the instruments, some other categories have been added like the
age, gender, income, price, ethnicity and education. A 5-point scale for each category except gender has
been used in the survey.
Determination of frequencies using SPSS
For each of the response, the frequencies have been determined in the SPSS and the tables and the data
has been added in the appendix below. The frequency for the responses helps in determining that how
many times a response occurred for a particular question or variable. The frequencies are important to
calculate because it helps in correlating the variables and arriving at the results.
Report on the marketing research
The Research Problem
The company Super Bag has launched new product ‘Health’ which is a backpack having has orthopedic
system at the back ,so it can be worn for a long time without damaging your back ,and air pillow, which
provides proper circulation of air and prevents your back from sweating. Since this product is very new
to the market and to the consumers, therefore, the company is worried about its launch in the market.
The company is unaware about the needs and preferences of the consumers about this kind of product
so it is afraid that whether this concept will work in the market or not. In order to profitably satisfy
customer needs, the company must understand internal and external situation including the market
environment, the customers and their own capabilities. For this, the company planned to undertake a
survey of the market to determine the customers wants needs and demands. Therefore, this market
research aims to:
1. Identify the customers’ wants, needs and demands.
2. Determine the preferences of the customers for this new product.
3. Collect data using the Consumer Decision-Making Styles Inventory instrument and regarding the
age, gender, income, price, ethnicity and education of consumers.
4. Figure out the segmentation, targeting, positioning and 4Ps strategies for this new product,
based on the above collected data and its analysis.

Data Sources
The data is collected from the primary source because a questionnaire was formulated to be filled by
the respondents. Primary source is used because the number of respondents to be included in the study
was small and the data was to be used for immediate analysis. Also, latest information about the
consumers and the market was required because it was collected for the launch of a new product.
Though, a bit of secondary source has also been used but that has been used for identifying the types of
strategies.
Data Collection Method
The data has been collected with the help of questionnaires. The questionnaire was standardized and it
was the ‘Consumer decision making style inventory’ that was distributed to the respondents. Along with
the 16 questions mentioned in the inventory, there were six more variables or categories that were
added which included: age, gender, income, price, ethnicity and education. The questionnaires were
distributed personally because data as to be collected only from 25 people. This helped in getting
immediate response from that as they were able to fill the questionnaire then and there. Every question
in the instrument and the categories (except for gender) had answers based on the 5-point scale which
is also called as the Likert Scale. This scale is used because it helps in interpreting the data, calculate the
frequencies and correlate the variables.
Results of the data analysis
For the Consumer decision making style inventory
 For most of the people, getting good quality of products is very important because they strongly
agree with the quality of the products.
 The respondents are neutral with the choice of well-known national brands.
 Generally, most of the people have one or more outfits of the very newest style.
 Most of the respondents strongly agree that shopping is a pleasant activity them.
 Most of the people agree that they buy as much as possible at the ‘sale’ prices.
 Generally, the people do not plan their shopping but they agree that they should plan their
shopping more carefully than they presently do.
 Most of the respondents are neutral about the fact that numbers of brands are ore and they feel
confused about choosing from them.
 People agree that they have their own favorite brand that they buy over and over.
 People generally do not make much efforts in getting the very best when they go and purchase
the products and they are neutral towards getting the very best.
 The respondents do not agree that the most expensive brands are their choices.
 Most people agree that they keep their wardrobe up to date with changing fashions.
 For most of the respondents, going shopping is one of the enjoyable activities of their life.
 Most of the people agree that they usually chose the lower price products.
 Generally, people are impulsive when they go to shop and they agree with that.
 People agree to the fact that it is hard to choose which stores to shop from.

 Finally, people agree with the fact that when they start liking a product or brand, they stick with
it.
For other categories to the survey instrument
 Most people in this survey belonged to the age group of 25-31 which means that mostly the
young and employed generation has participated in the survey.
 Mostly, females have responded to the questions.
 Among the respondents, most of the people carry an associate degree.
 Most of the respondents belong to the ethnic group of whites.
 Majority of the respondents are earning $21000-$31000.
 Most of the respondents buy products ranging $16-$37.
Analysis of correlations
Correlation is significant when p value is less than 0.05 which means that there is less than 1 in 20
probabilities that an outcome occurred by chance and hence the result is statistically significant.
 The correlation between the price for the product and the buying at the sale process was
calculated. But, the correlation was insignificant because the p value was more than 0.05.
 Then, correlation was found between the variables: wardrobe up-to-date, low-price products,
hard to choose store, sticking to brand and impulsive when shopping. All relations were
insignificant because in all cases, the p value was more than 0.05.
 Correlations were found between the variables: your price for product, importance of quality,
buy at sale prices, wardrobe up-to-date, expensive brand my choice and the low-price products.
Again, all relations were insignificant because in all cases, the p value was more than 0.05.
 Correlations were found between the following variables: purchase best product, newest style
outfit, your gender, your education, buy at sale prices and well-known brand. Here, all relations
were insignificant except for the correlation between: purchase best product and newest style
outfit; purchase best product and buy at sale prices and gender and buy at sale prices in all
these cases, the value of p is less than 0.05 which shows significant correlation relations
between the variables. Also, the correlations are positive which means that the people try to
get more of the very best products, they try to get more of the newest style outfit. So, it can be
said that, when people buy the best products, they generally buy the newest outfits and the
new things are considered as best by the people. Also, people but more of the best products at
the sale prices. So, when sale increases, they try to get more and more of the best products.
Then, among the male and the female gender, more females buy more at the sale prices.
These variables together can be interpreted as: the females try to get the very best newest
outfits when the sale increases and the price of products fall.
 Correlation was calculated between sticking to brand, hard to choose store, impulsive when
shopping, low-price products, shopping as an enjoyable activity, wardrobe up-to-date, expensive
brand as choice, purchase the best products, favorite brands, many brands to choose, buy at
sale prices, plan your shopping, newest style outfit, pleasant activity, well-known brands, age,
gender, education, ethnicity, price for the product and importance of quality. Out of all these
the significant correlations are: sticking to brand and favorite brands; sticking to brand and

gender; shopping an enjoyable activity and price for the product; purchase best product and
sticking to brand, expensive brand my choice, favorite brand, buy at sale price and new style
outfit and between pleasant activity and shopping as an enjoyable experience. All the
correlations between them are positive which shows that one variable increase, other also
increases. So, it can be interpreted as: when people stick more and more to one particular
brand, that brand becomes their favorite brand. Generally, more number of females is likely
to stick more to a particular brand. When the price of the products is less or it is $16-$37 as
preferred by the respondents, then they enjoy shopping more. The products of the brand to
which the respondents stick is the best product for them and that also becomes their favorite
brand. The product becomes more good or preferable when it is available at the sale price and
offers the product of the newest style. Finally, when the shopping is pleasant to them they
enjoy it more.
 Correlation was found between the price of the product and the education, age, income and
well-known brand; education and income, well-known brand; age and price, education, income.
These relations were significant, others were not significant. From these correlations, it can be
interpreted that the people carrying associate degree, falling in the age group of 25-31 years,
earning $21000-$31000 preferred the products of prices $16-$37 and did not prefer any well-
known brand, they were neutral for that.
Relevance of the results to the launch of new backpack product ‘Health’
4 P’s of ‘Health’
Product Price Place Promotion
The product is a
backpack which has
orthopedic system at
the back, so it can be
worn for a long time
without damaging the
back, and air pillow,
which provides proper
circulation of air and
prevents the back from
sweating. Injection-
molded shoulder straps
create flexible points to
alleviate clavicle and
pressure point strain
and neck pain. Finally, a
build-in lanyard cord
with standard
The price should be
kept from $16-$37 as it
is the preferred price of
the consumers and they
will be ready to buy this
product easily if it is in
the range of $16-$37.
Mostly, the people shop
from the departmental
stores or the malls. So,
the best place to sell
this product will be this
only. Also, this product
has a lot of technical
features so it can also
be displayed at the
electronics items stores
so that more and more
people come to know
about it and buy it. An
online sale will also be
beneficial for this
product.
The best way of
promoting this product
is personal selling and
advertisement in the
TV because this product
has unique features
that are needed to be
communicated to large
number of people at
one time and they also
need to feel the
benefits of those
features. So, for that,
these two are the best
promotional strategies
for this company.
For example, the
product has injection-

headphone jack. molded shoulder straps
that create flexible
points to alleviate
clavicle and pressure
point strain and neck
pain. And it has a build-
in lanyard cord with
standard headphone
jack. The people who
travel a lot will truly
enjoy this important
feature. So, they need
to know about this
which can either be
done if the sales people
give them a demo or
they put an
advertisement on the
TV.
Segmentation of ‘Health’
In this strategy, the market is to be divided into various subsets according to the common interests,
needs and priorities of the people. This is an important strategy because it helps the company to focus
on the most profitable group of people or the place instated of focusing on everything and ignoring the
most profitable segment in the market.
Here, the company should segment the consumers on the basis of their age, gender, education,
ethnicity, and income and price preference. The market should be segmented on the basis of age of the
age group and people of age 25-31 which means that mostly the young and employed generation has
participated in the survey. There is no need to segment the market on the basis of gender because this
bag can be used by anyone who has a problem in the back or who travels frequently. The market should
also be segmented on the basis of the earnings of the people because the earing should be enough so
that people can buy the new product in the market. Lastly, the market for this product should be
segmented on the basis of preference for the price of the product.
Targeting of ‘Health’
Positioning of ‘Health’