Using market research to support decision making

Introduction to JD Sports

Founded in 1981 in Manchester Grown from one store to over 900 in UK

and Europe Leading UK retailer of sports/leisure wear Recognised for exclusive and desirable

brands

Growth of JD

Organic growth JD increased

performance for 20+years through

• Meeting consumer demands

• Providing the most desirable products

Inorganic growth Expanded more

rapidly through acquisitions

• New brands e.g. Chilli Pepper, Sonneti

• High street fascias e.g. Bank, Scotts, Blacks

Purpose of market research

Provides information of current and future consumer needs

Enables development of relevant products and services

Supports decision making

Informs the marketing mix (product, price, place, promotion)

Reduces risk Needs to be

ongoing

Ansoff’s matrix

Research feeds into marketing strategies Market penetration –

winning greater market share in existing markets

Market development – entering new countries/sectors

Product development – acquiring or developing new products/brands

Diversification – taking the business in a completely new direction

Ansoff’s matrix identifies options Different levels of risk

Primary market research

Also known as ‘field research’ Involves acquiring

new data for a specific purpose

Set up costs time/effort/money

May be: Quantitative –

numerically based; data can be analysed

• Obtained through e.g. questionnaires, sampling

Qualitative – focuses on feelings, opinions

• Obtained through e.g. focus groups, interviews

Secondary market research

Also known as ‘desk research’ Uses existing

sources of published data/information

E.g. government reports, market research reports

Easily available, though incurs costs

May not be specific enough

Market research at JD Exit surveys

Face-to-face with consumers to gather views on leaving store Primary purpose to understand reasons for visit, frequency of

visit/purchase, reasons for and against purchase ‘Shopping bag’ survey

Identifies what other stores customers visit from carrier bags carried

Provides insight into competitors/retailers attracting similar customer profiles

On-site fieldwork - researches new locations Assesses competition and the area Helps to build a detailed SWOT analysis of each new site

Check-out survey

Cost-effective collection of data from purchasers at tills

350,000 customers every year

Large sample size means robust results

Data shows how far customers travel to stores Enables JD to identify

new store opportunities Consumer profiles by

gender, age, brand and lifestyle Influences selection of

product ranges to meet customer needs

Provides invaluable insights into consumer buying behaviour Helps to identify effective

marketing strategies

Evaluating market research

Using a variety of methods gives robustness/accuracy

Data needs to be validated E.g. large scale

check-out surveys validate smaller scale Exit surveys

Internet ordering provides ‘live’ data Reflects customer

demand Indicates potential

for new store locations