DULUTH PACKSpring 2013
22Spring 2013 Duluth PackPrepared by:Jon HammerstromCory HoefsVictoria JacobsenKannetha KoyPrepared for:Rajiv Vaidyanathan...
33Spring 2013 Duluth PackContent:Background ………4Target Market………5Method………6Store Manager Interview………7Basic Observations……...
44Spring 2013 Duluth PackDuluth Pack is a small privately owned business based in Duluth, Minnesota that makes packs forou...
55Spring 2013 Duluth PackCUSTOMER PROFILETarget Market:Duluth Pack’s primarycustomers are businessprofessionals betweenthe...
66Spring 2013 Duluth PackMethodWe have decided to observe eight different shopping habits of Duluth Pack’s customers. Weob...
77Spring 2013 Duluth PackStore Manager InterviewAlicia is the store manager we had the chance to interview about Duluth Pa...
88Spring 2013 Duluth PackPrimary customers for Duluth Pack are business professionals that love outdoor adventures. They a...
99Spring 2013 Duluth PackThe observed shoppers matched the target market, asmany were outdoor enthusiasts. Customers who w...
1010Spring 2013 Duluth PackCurrent LayoutUPPER LEVELLOWER LEVELThis is the current layoutof the Duluth Pack store.After yo...
1111Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 1: Free Gift with a PurchaseCurrent SituationCurrently Duluth Pac...
1212Spring 2013 Duluth PackAccording to Dr. Cialdini the rule of reciprocation says that we should try to repay, in kind, ...
1313Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 2: Utilize Social ProofCurrent SituationCurrently Duluth Pack doe...
1414Spring 2013 Duluth PackInfluencing people to buy Duluth Pack gear can be as simple as displaying mannequins wearing su...
1515Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 3: Have a Seating Area Tailored to AllAgesCurrent Situation:Dulut...
1616Spring 2013 Duluth PackThe seating area in generalshould be more visible forcustomers due to the many racksof clothing...
1717Spring 2013 Duluth PackBy offering the Duluth News Tribune, customers can spend time in the seating area learning more...
1818Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 4: Place Mirrors Throughout Pack AreaCurrent Situation:Duluth Pac...
1919Spring 2013 Duluth PackThe customer will be able to see what the pack or clothing item will looklike on themselves, gi...
2020Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 5: Rearrange Store LayoutCurrent Situation:None of the customers ...
2121Spring 2013 Duluth PackThis is a unique way to guide customers through the store and keep them interested. A grocery s...
2222Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 6: ScarcityCurrent SituationCurrently, Duluth Packdoes not mentio...
2323Spring 2013 Duluth Pack“Probably the most straightforward use of the scarcity principle occurs in the “limited-number”...
2424Spring 2013 Duluth PackProposed RemodelUPPER LEVELLOWER LEVEL
2525Spring 2013 Duluth PackAPPENDIX
2626Spring 2013 Duluth PackAPPENDIX 1Jon’s Observations (added up for number of times observed)Which direction didcustomer...
2727Spring 2013 Duluth PackPick up Packs or look Pick up/touch40+18+6=64Look12 totalGroup,single, familyGroup55+23+20= 98S...
2828Spring 2013 Duluth PackVictoria’s Observations (added up for number of times observed)Which direction did customers go...
2929Spring 2013 Duluth PackPick up Packs or look Pick up/touch42+12+9=63Look8+11=19Group,single, familyGroup24+30+12= 66Si...
Cory’s Observations (added up for number of times observed)Which direction didcustomers go whenentering store?Left11+9+10=...
31Spring 2013 Duluth PackDo customers seek help? Yes2+3+5=10No26Pick up Packs or look Pick up/touch18+20+25= 63Look8+11=19...
32Spring 2013 Duluth PackKannetha’s Observations (added up for number of times observed)Which direction didcustomers go wh...
33Spring 2013 Duluth PackDo customers seek help? Yes19No1340Pick up Packs or look Pick up/touch24Look8Group,single, family...
34Spring 2013 Duluth PackAPPENDIX 2Manager Interview NotesWho is buying the product?Business professionals and college stu...
35Spring 2013 Duluth PackAre Duluth Packs advertised?They have been in Men’s Journal and Good Housekeeping. They are endor...
36Spring 2013 Duluth PackCitations1. Underhill, P. Why we buy: The science of shopping. New York, NY: Simon and Schuster, ...
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Duluth Pack Consulting Project

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The purpose of the Duluth Pack Business Consulting Project was to integrate the influence principles learned from Robert Cialdini's classic book of persuasion entitled "Influence: Science and Practice." We closely analyzed the Duluth Pack store in Duluth, Minnesota in terms of their environment and consumer interactions to see how they can make changes to better serve their customers and increase sales. This project determines six current situations, thereby following suggested recommendations for each.

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Duluth Pack Consulting Project

  1. 1. DULUTH PACKSpring 2013
  2. 2. 22Spring 2013 Duluth PackPrepared by:Jon HammerstromCory HoefsVictoria JacobsenKannetha KoyPrepared for:Rajiv VaidyanathanMKTG 4731—Consumer BehaviorSec 002, TThu 8:00 a.m.Kyle RadichDuluth Pack365 Canal Park DriveDuluth, MN 55802(218) 722-1707Spring 2013
  3. 3. 33Spring 2013 Duluth PackContent:Background ………4Target Market………5Method………6Store Manager Interview………7Basic Observations………9Current Layout………10RecommendationsRecommendation #1………11Recommendation #2………13Recommendation #3………15Recommendation #4………18Recommendation #5………20Recommendation #6………22Purposed Remodel………24Appendix………25ObservationsStore Manager InterviewCitations………36
  4. 4. 44Spring 2013 Duluth PackDuluth Pack is a small privately owned business based in Duluth, Minnesota that makes packs foroutdoor use, recreational use, and everyday use such as school and travel bags. Duluth Packs were firstcreated when a French-Canadian named Camille Poirier filed for a patent for his new packsack design in1882. 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 umbrellaholder. 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 moremillionaires per capita than in any other town in America and the company made countless awnings forDuluth’s businesses. While America was changing, the company also made canvas tents that attached to acar to create the first “mobile home”. Due to its durability, Duluth Pack is a great pack for working peoplewith plenty of leisure time.Finally in June 1991, the retail store in Canal Park of Duluth, Minnesota was opened and quicklyexpanded 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 theoriginal pack, Duluth Pack also makes large camping packs, luggage, and various sizes of backpacks.Background
  5. 5. 55Spring 2013 Duluth PackCUSTOMER PROFILETarget Market:Duluth Pack’s primarycustomers are businessprofessionals betweenthe ages of 35 and 65that come into thestore with their familyor in groups. Collegestudents are a secondary target market. Customers perceivethemselves as outdoorsy, busy people and want high qualityproducts that will last them a lifetime. They are not onlypurchasing outdoor gear but also products to use for their realjobs, such as portfolios and backpacks. Customers have a four-year degree, or are currently working towards one, as well as ahigh-paying job. During the week, business is slow and customersare mainly local business professionals. During weekends thestore is extremely busy and full of tourists. Duluth Pack productsgive off an image of high-class. They are a status symbol thatshows a person is successful and enjoys high quality products.Duluth Pack packs also have a lifetime warranty. If the bag fallsapart in any way Duluth Pack will fix the bag free of charge.Customers who purchase packs find these attributes veryappealing, making the high prices worthwhile.
  6. 6. 66Spring 2013 Duluth PackMethodWe have decided to observe eight different shopping habits of Duluth Pack’s customers. Weobserved the direction the customers went once they entered the store, if they made a purchase, the averagetime spent in the store, if they went upstairs, if they looked at multiple types of items (clothing, packs, oroutdoor gear), if they sought help or were approached by salespeople, if they pick up the packs or just lookedat them, and if they came in as a group, family, or a single person. We decided to observe these items basedon our interview with Alicia, the store manager. Alicia wants to improve the overall flow of the store so thatis the reason we decided to observe which way customers went upon entering, what items they were lookingat, and if they went upstairs. The upstairs portion of the Duluth Pack store seems to be underutilized. Wealso 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 twoto observe for 2-4 hour shifts mostly on the weekends. We wanted to stay close to the entrance to observe thedirection the customers went; however, we also walked around the store regularly to make sure we hadaccurate observations about what the customers were doing.
  7. 7. 77Spring 2013 Duluth PackStore Manager InterviewAlicia is the store manager we had the chance to interview about Duluth Pack. The biggest problemmentioned to us was the layout of the store. Alicia mentioned that the store layout is not directed atchanneling customers toward the main attraction of the store that is Duluth Pack gear. The flow of theproduct is irrelevant, in other words there is a lot of variety, and layout of the products in the store isinconsistent. In one corner of the store there are camping supplies and across the store, in a differentcorner, there are more miscellaneous camping supplies. The upper level of the store does not see the trafficthat 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 notjust quality. The store is 8,500 square feet but Alicia does not feel that they are utilizing show floor spaceeffectively. 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 busybusiness professionals. Duluth Pack products offer a high-class image with a value-expressive functionabout the type of attitude people want to give off about them. These customers also value new up- to-dateproducts and Duluth Pack comes out with new designs and color patterns to bring back business time aftertime. Consumers see Duluth Pack goods as a luxury good that is only available in the one store location. Itis a destination spot for many people visiting Duluth, and the store has a homey feel to it. It allowscustomers to be in a relaxed state of mind, which aids them in purchasing high-end objects.
  8. 8. 88Spring 2013 Duluth PackPrimary customers for Duluth Pack are business professionals that love outdoor adventures. They areseeking portfolios as modern day businesses require laptop use, and the portfolio packs fulfill this need. Thisallows the customer to feel high-class since Duluth Pack gear is expensive while at the same time showingthey 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 qualityattribute 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. BarneysNew York is a high-class store located in New York City and Duluth Pack supplies them with packs that arefashionable. The only difference is the logo on the packs. Duluth Pack also supplies their packs to stores inEurope and to over 200 locations in Korea. Duluth Pack’s packs have also been in the Men’s Journal andGood Housekeeping magazines. Duluth Pack’s great success started seven years ago when different ownerspurchased the company. They took a store that was struggling and built it up to the point it is today. Aliciasaid, “The owner genuinely believes in it, so people buy into it!” Having owners that are “die hard” about theproduct has fueled Duluth Pack into what it is today.
  9. 9. 99Spring 2013 Duluth PackThe observed shoppers matched the target market, asmany were outdoor enthusiasts. Customers who were 18-24years old were attracted to the school-oriented packs. On theother hand, customers who were 35+ looked at outdoor gear,clothing, accessories, and luggage. Generally, customers whowere 35+, as well as families, spent between 10 and 20 minutesin the store. The younger customers spent about 10 minutesmaximum. We estimated the conversion rate to be around 31%.This means that nearly one third of customers who come intoDuluth Pack’s store make a purchase. Duluth Pack’sinterception rate is around 35%. This means there are two thirdsof customers that don’t come into contact with an employee.Customers typically did not wait long, the longest we saw acustomer wait was around five minutes. Duluth Pack hasmultiple checkout locations to cut down on customer wait times.In the store manager interview with Alicia, we found out theprimary market consists of middle-aged business people, whilethe secondary market consists of college students. The businesspeople perceive themselves as outdoorsy, but professional at thesame time. They look for quality products such as Duluth PackPortfolios. According to the store manager, once they purchasetheir first pack they usually want another one.Basic Observations
  10. 10. 1010Spring 2013 Duluth PackCurrent LayoutUPPER LEVELLOWER LEVELThis is the current layoutof the Duluth Pack store.After you read ourrecommendations, youwill find our proposedlayout.
  11. 11. 1111Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 1: Free Gift with a PurchaseCurrent SituationCurrently Duluth Pack does not implement the reciprocityprinciple to encourage customers to purchase from the store.Customers are buying packs that range from $150-$400each. There is currently no extra incentive for a customers tospend that much money on a pack when they could buy somethingthat would also work from Target or some other store for $60.RecommendationThe reciprocation rule can be used to encourage customersto buy the expensive packs. Motivating customers by giving backto them will make them feel appreciated and they will also start todevelop a liking to the store. This will improve the moral aroundthe store and customers will give a positive feedback about theirDuluth Pack experience to all their peers and family.JustificationWhen a customer comes into the store and wants to buy apack, they will be more persuaded to buy if they are given a freeleather/canvas cleaning kit, or something to help them maintainthe pack. Giving the customer something back makes them feellike they are appreciated and the store is thankful for theirbusiness.
  12. 12. 1212Spring 2013 Duluth PackAccording to Dr. Cialdini the rule of reciprocation says that we should try to repay, in kind, whatanother person has provided us. The consumer is giving the store money and in return they are gettingthe pack, but an additional item is the push the customer needs in deciding to purchase the pack. Thiswill 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 tohave a driving distance discount. For instance when a customer comes from two hours away, theywould receive a ten percent discount on their purchase. Customers who come from further away, suchas Iowa or the Dakotas, would receive a twenty percent discount. This would show their appreciationfor customers who have traveled long distances and shopped at Duluth Pack. This will also develop astrong liking toward the store, and these people who live far away from the Duluth area will potentiallythink of Duluth Pack and buy Duluth Pack gear from their website.
  13. 13. 1313Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 2: Utilize Social ProofCurrent SituationCurrently Duluth Pack does not use the social proof principle totheir advantage. Based on our observations there are no hints thatpeople can use to connect themselves to Duluth Pack. People are morepersuaded to buy products they feel match their own personality.RecommendationDuluth Pack could use the social proof principle to theiradvantage. Social proof informs us that people are more willing to behave in a certain way by watchingothers similar to them. This influence will mostly be effective when customers are able to see otherusers purchase the product; they will instantly be persuaded to purchase Duluth pack as well. Also, thecurrent users will have the ability to inform new and prospective users on what products are morepopular and versatile.JustificationPlacing popular packs in the front of the store and labeling them “Most Popular” so thatcustomers 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” becausethey dont have to convince us directly that the product is good: they need only to say that many othersthink so, which seems proof enough” (Influence, 110 ). This will decrease the amount of selling thefloor employees will have to do since the customer will be convinced after seeing that it is the mostpopular item to have. People want to feel that they are apart of a certain group and observing whatothers in the group are using will influence them to purchase the pack(s).
  14. 14. 1414Spring 2013 Duluth PackInfluencing people to buy Duluth Pack gear can be as simple as displaying mannequins wearing suits andholding portfolios or other business packs. This will give off the impression that business professionals usethe product for everyday uses. According to the social proof principle people will link themselves with themannequins and want to buy Duluth Pack products as well. According to Dr. Cialdini, 95% of peopleimitate what they see others doing, while 5% of people are the initiators that people try to copy. Thisshows that people are more likely to follow people they view as being similar to them. Besidesmannequins, Duluth Pack should promote their products around the store by posting pictures of DuluthPack customers using their pack ‘in action;’ Duluth Pack receives many pictures from fans and customersin general. Television commercials with people using Duluth Pack gear in the business world, as well asusing it in an outdoor setting would influence people that see themselves in that way to purchase.
  15. 15. 1515Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 3: Have a Seating Area Tailored to AllAgesCurrent Situation:Duluth Pack does not have many seatingoptions around their store. Based on ourobservations, a typical consumer who enters thestore is either with children or with a significantother. Although Duluth Pack has merchandise forall ages, it may still be difficult for the child orsignificant other to be patient due to the time spent in the store. There is currently a sitting area near thelower level fireplace and the books. This is a convenient place to have a seating area. However, not manyconsumers are attracted to the seats due to the merchandise offered near the area.RecommendationDuluth Pack should continue to offer the cozy seating area near the fireplace but instead of havingoverflowing shelves of books, make the seating area more family friendly by offering merchandise andactivities that will suit shoppers of all ages.Justification:According to Paco Underhill’s book entitled Why We Buy “In the majority of stores throughout theworld, sales would instantly be increased by the addition of one chair...a chair says: we care. Given thechance, 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 theycare.
  16. 16. 1616Spring 2013 Duluth PackThe seating area in generalshould be more visible forcustomers due to the many racksof clothing surrounding the area.To increase visibility of theseating area, the walkway to the area should be more easily accessed and a rack or two surrounding itshould be eliminated or moved to a different location of the store. Other than just having an area forcustomers to just sit around, there should be merchandise and activities to keep the wandering eye withinthat area. For instance, the Paul Bunyan crayons could be placed on the coffee table in the seating areaalong with paper so children and adults of all ages can experiment with them. Once they have found theirlove for the crayons, they will want to purchase them. In order to tailor the crayons towards a younger agegroup, 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 retailenvironment and the products that are sold in it” (91). Having customers sample or try a productbeforehand 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 kidsare enjoying coloring with the Paul Bunyan crayons and will want to leave the store with at least onecrayon. The parents will want to continue to see this behavior of their kids; therefore they will agree topurchase 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 sevencustomers who entered Duluth Pack actually spent time looking at books. The customers who had actuallyviewed the books were tourists looking for an information book either about Duluth, the North Shore, theBoundary Waters, etc. Instead of having multiple bookshelves filled with books that are not relevant tothe customer’s needs, there should be room for local newspapers such as the Duluth News Tribune.
  17. 17. 1717Spring 2013 Duluth PackBy offering the Duluth News Tribune, customers can spend time in the seating area learning more aboutthe local environment they are currently in. Underhill also states, “Adjacencies are of huge importance toevery 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 thatare currently around the store.
  18. 18. 1818Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 4: Place Mirrors Throughout Pack AreaCurrent Situation:Duluth Pack only has mirrors in theirfitting rooms. There are no mirrors forcustomers to use in order to see what clotheswill look like on them or what a pack mightlook like while they wear it.Recommendation:Duluth Pack should place mirrorsthroughout the pack area, lower clothing area, and upstairs clothing area. The mirrors should be betweenfour and five feet high, sixteen inches wide, and at least two feet off the ground in order for the customerto be able to see their entire body.Justification:Currently, the Duluth Pack store only has mirrors in their fitting rooms. Putting mirrors throughoutthe lower clothing area, pack area, and upper clothing area will slow customers down and allow them tosee what certain products will look like on. This will also eliminate the hassle of going to the fitting roomand actually trying on a simple t-shirt. According to Paco Underhill’s book Why We Buy “Self interest isa basic part of our species.”(Underhill 168). Customers want to know how a sweatshirt will look on theirbody or how a pack will sit on their shoulder. Mirrors will give customers an advantage by allowing themto try on the packs and see how it looks and feels on them. Mirrors will be an effective attentionenhancer. The book CB2by Babin and Harris on page 68 states that involvement creates a personalrelevance toward the product.
  19. 19. 1919Spring 2013 Duluth PackThe customer will be able to see what the pack or clothing item will looklike on themselves, giving them a sense of what the product will do forthem. The more involving a product, the greater the chance the object willbe attended to (Babin and Harris 87). When placing the mirrors they need tobe right next to the clothes, packs, hats, or shoes. According to the bookWhy We Buy, customers will decide the purchase is not worth the trouble ifthey 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 storeinto a funhouse and turn off customers. There should be four mirrors in thepack area, four mirrors in the lower clothing area, two mirrors in the upstairsshow area, and three mirrors in the upper clothing area. According to ourobservations, most of the customers go upstairs, while at least 44% ofcustomers go to the right when entering the store. When customers enter thestore they typically need a few seconds to adjust to everything going onaround them. The mirrors will help slow the customers down and get themto look at the packs, which are good moneymakers. This will keep them inthe store longer and get them thinking about making a purchase. Most ofthe customers that come into the store are families on vacation. Since they are on vacation, they areprobably experiential shopping in Duluth and trying to experience all that Duluth has to offer. Customersthat are experiential shopping, see their shopping experience as unique and are willing to buy somethingless familiar and intriguing (Babin and Harris 197). Duluth Pack is a unique aspect of Duluth’s cultureand by putting mirrors up customers will slow down, pick up, touch, and put on a Duluth Pack and buysomething that represents Duluth and their experience in the city. Putting up mirrors will increase theamount of thought customers put into a purchase from Duluth Pack and make them more involved with theproducts in the store.
  20. 20. 2020Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 5: Rearrange Store LayoutCurrent Situation:None of the customers who entered the store went directlyto the back wall to browse sale products. This is due to sale itemsbeing scattered around the store. For example, there are mittensfor sale near the checkout counter, children’s clothing for sale thatis mixed in with the women’s clothing, and t-shirts for sale near aglass case filled with small leather items. Therefore there is noreason for customers to go to the back wall, when sale items arescattered around the store. Another issue is the location of menand women’s clothing. The clothing is placed side by side, withno distinct line of division.Recommendation:In order to get shoppers to the back wall of the store Duluth Pack should place their sale items inone location. According to Why We Buy “The Gap, Aeropostale, and Anthropologie—all apparel storechains—put their discount sale products in the back left-hand corner of the store” (86). Also, Duluth Packshould 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 theyreach the back of the store Duluth Pack needs to make sure the pathway back to the front is wellmerchandised and that at least some of the signage is facing the customer. Therefore, Duluth Pack shouldpaint moose prints on the floor to create a pathway back to the front of the store.
  21. 21. 2121Spring 2013 Duluth PackThis is a unique way to guide customers through the store and keep them interested. A grocery storeeffectively used a similar tactic to keep shoppers interested. The grocer wanted to keep shoppers in thecereal aisle for longer so it applied a floor graphic of a hopscotch game. In one store study, the averagetime kids played on the hopscotch graphic was almost 14 seconds. This is a long time to be standing infront of cereal without buying some. We believe the moose prints will have a similar effect on children andconsequently keep them occupied. Duluth Pack should also segment their clothing by gender. Dividing theclothing by gender will decrease customer confusion and they will know for sure that the clothes they arebuying are for the appropriate gender. Men will not make a purchase if they cannot find something withinone or two tries. Therefore, men’s clothing should be placed near the fitting rooms because men who try onclothing make a purchase 65% of the time. Women’s clothing should be spaced out so female customers donot feel squished between racks. This makes them feel uncomfortable and they will not make a purchase(Underhill, 1999).
  22. 22. 2222Spring 2013 Duluth PackRECOMMENDATIONSRecommendation 6: ScarcityCurrent SituationCurrently, Duluth Packdoes not mention their packs arehand-made, and how hard thepacks are to make along with thetime it take to construct them.Styles and color patterns areonly there while supplies last,and Duluth Pack could use thescarcity principle to theiradvantage. These are implication that Duluth Pack should use to their advantage to sell more packs.RecommendationThe scarcity principle states that people are more likely to buy when they know that item is limitedor has a time restriction. Duluth Pack can use this principle to let consumers know that certain packs andother items are in limited or short supply. The canvas for the packs cannot be bought in United States due toArmy restrictions, so Duluth Pack needs to order it from India.JustificationWhen customers know that a certain product is in limited supply, they are more inclined to make apurchase. 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. 2323Spring 2013 Duluth Pack“Probably the most straightforward use of the scarcity principle occurs in the “limited-number” tactic inwhich a consumer is informed that a certain product is in short supply and cannot be guaranteed to lastlong” (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 thestore for long periods oftime. Duluth Pack couldinform customers that theycannot get the canvas herein the United States, buthave to order it from out ofthe country instead. Thiscan cause shortages in thenumber of packs availablefor sale.
  24. 24. 2424Spring 2013 Duluth PackProposed RemodelUPPER LEVELLOWER LEVEL
  25. 25. 2525Spring 2013 Duluth PackAPPENDIX
  26. 26. 2626Spring 2013 Duluth PackAPPENDIX 1Jon’s Observations (added up for number of times observed)Which direction didcustomers go whenentering store?Left18+6+15=39Right24+12+15=51Straight18+11+13=42 132totalentriesPurchase? Yes15+20+15=50No 410total entriesAvg. time Spent 0-104+3+5= 1211-197+7+2=1620+5+1=6Upstairs Yes24+20+28=72NoPack, Clothes, OutdoorGear, AllPack Clothes15+4=19OutdoorGear1Multiple17+49+21=87Approached bySalespeopleYes8+4+8=20No61number of timesencountered salespersonDo customers seek help? Yes25+10+6=41No
  27. 27. 2727Spring 2013 Duluth PackPick up Packs or look Pick up/touch40+18+6=64Look12 totalGroup,single, familyGroup55+23+20= 98Single5+9+20=34Family41+21+26=90
  28. 28. 2828Spring 2013 Duluth PackVictoria’s Observations (added up for number of times observed)Which direction did customers gowhen entering store?Left15+5+12=32Right27+15+15=57Straight12+11+10=3357122Purchase? Yes9+16+10=35NoAvg. time Spent 0-1010+5+4= 1911-1911+9+8=2820+3+2+4=9Upstairs Yes27+18+20=65NoPack, Clothes, Outdoor Gear, All Pack1Clothes9+6=15OutdoorGear2Multiple14+32+19=65Approached by Salespeople Yes4+6+5=15No19Do customers seek help? Yes20+13=33No4
  29. 29. 2929Spring 2013 Duluth PackPick up Packs or look Pick up/touch42+12+9=63Look8+11=19Group,single, familyGroup24+30+12= 66Single2+4+12=18Family22+36+14=72
  30. 30. Cory’s Observations (added up for number of times observed)Which direction didcustomers go whenentering store?Left11+9+10=30Right11+10+12=32Straight5+7+9=2132Purchase? Yes8+7+9= 24NoAvg. time Spent 0-1010+10+13=3311-159+8+10=2720+5+3+7+ 15Upstairs Yes13+ 12+15=40NoPack, Clothes,Outdoor Gear, AllPack13+ 12+10=35Clothes12+ 9+ 1031Outdoor Gear5+ 8+ 7= 20Multiple13+12+14=39Sale items16+18+20=54Approached bySalespeopleYes5+6+5= 16No NOTE**Sales staff did notgreet customers asthey entered the store30
  31. 31. 31Spring 2013 Duluth PackDo customers seek help? Yes2+3+5=10No26Pick up Packs or look Pick up/touch18+20+25= 63Look8+11=195+ 6+8= 19Group,single, familyGroup15+14+12= 40Single10+ 5+ 6= 21Family9+ 8+ 12= 2931
  32. 32. 32Spring 2013 Duluth PackKannetha’s Observations (added up for number of times observed)Which direction didcustomers go whenentering store?Left11Right41Straight21*NOTE: Many customers are walking intodifferent directions due to layout of thestore—so many different walkways 41Purchase? Yes19NoIAvg. time Spent 0-101211-191020+2Upstairs YesALLNoPack, Clothes, OutdoorGear, AllPack9Clothes6OutdoorGear6Multiple6Approached bySalespeopleYes21No532
  33. 33. 33Spring 2013 Duluth PackDo customers seek help? Yes19No1340Pick up Packs or look Pick up/touch24Look8Group,single, familyGroup3Single2Family22Couple1733
  34. 34. 34Spring 2013 Duluth PackAPPENDIX 2Manager Interview NotesWho is buying the product?Business professionals and college studentsWhat is the average age of customers?Middle-aged men and women, 40-60 years oldCollege students, 20-24 years oldHow do customers perceive themselves?Outdoor enthusiast, professional, busyWhy do people decide to visit Duluth Pack?Cabin-like, homey, and it is the only store in the worldWhy do customers purchase Duluth Packs?They are an investment and seen as a status symbolWhat is the typical customer profile?Four-year degree, nice job, hard worker. Different for different stores for example: Urban outfitters attractshipsters. 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 storeWhen 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 notattractive.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. 35. 35Spring 2013 Duluth PackAre Duluth Packs advertised?They have been in Men’s Journal and Good Housekeeping. They are endorsed and used by several bandsincluding My Chemical Romance.What do you want to improve in the store?Re-merchandisingHas management changed recently?Yes, seven years ago Duluth Pack was purchased and the brand was re-built35
  36. 36. 36Spring 2013 Duluth PackCitations1. 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 beingthere to answer questions and for allowing us to use your store for our consumer behaviorproject. We really appreciate it!36

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