In this task I will be describing the marketing research that JD Sports perform. I will investigate the primary research techniques and also look at the qualitative and quantitative research techniques which they apply towards their business. I will then describe how the market researching techniques help JD Sports develop its SWOT analysis and the limitations to market research.
P3 Market research is the way in which JD finds out about the performance of its customers and its rivals. It uses this evidence to make sure that its advertising and sales activities are planned to influence the people it is aiming to reach e.g. sports people.
Quantitative research is numerically-based and obtains the solid statistics from which decisions can be prepared with assurance. Examples of quantitative market research at JD include:
Exit surveys – carried out face-to-face with consumers as they depart the store. This is a simple examination covering a cross-section of stores to collect the views of consumers in diverse locations. At JD the purpose of the survey is mainly to understand the reasons/frequency of visit, and reasons for and against purchase.
The ‘shopping bag’ survey – the JD research team monitors what carrier bags customers entering JD stores are carrying. This helps categorize what other stores JD customers use and are spending money in. It provides competitor insight and an idea of which retailers draw a similar customer profile to JD, a variable that can influence the location of new JD store openings.
On-site fieldwork – JD’s dedicated Site Research team invests important time researching new locations. This involves defining the amount of a location’s catchment area, reviewing the presence and quality of the competition and assessing the field and visibility (i.e. how busy the area is) of a unit. This helps build a detailed SWOT analysis of each new site.
Qualitative information is a primary form of market research which focuses on consumer belief and opinions on a product or service. This type of research illuminates the facts and figures collected through quantitative research. Examples of qualitative research at JD include:
Focus groups – by speaking to an extent with small groups of 8-10 people, more insightful questions can be asked concerning brands and new product developments. At JD these are typically run in schools and colleges, where it can get direct feedback from its core consumers.
Primary research consists of the gathering of original primary data. It can be accomplished through various methods, including questionnaires phone calls or experiments. Examples of primary research at JD include exit surveys and focus groups. The information gathered is first-hand information. They can then use the information to obtain more customers, raise sales and awareness of the company as a whole.
Secondary research JD uses is commercial market research report which is organised by research experts. They collect estimates of the size of the sales in each product or market categories. At JD this kind of information is very beneficial when evaluating new product markets or international opportunities e.g. Europe. Secondary research is often quicker, easier and cheaper to conduct.
Quantitative research The strength of quantitative research is that when an employer conducts a survey face to face with a customer, he or she can get a clear understanding of the customer’s comments which will help improve the business. The weakness of this kind of