| Diving Manufacturer and Travel Industry Retailer Study
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"THE INTERNET's FIRST SCUBA DIVING RESEARCH SITE" RESEARCH CREATED OCTOBER 1993 | ||||||||||||||||||||||||||||||||||||
| TABLE OF CONTENTS I. Report Introduction II. Executive Summary III. Statistical Tolerance of Survey Data IV. Methodology V. Sampling Issues Geographical Groupings for this Study VI. Retailer Study Results Section A. Diving Equipment Manufacturer Relationships Q1: Number of Major Manufacturers Retailer Stock Q2: Which Manufacturers Retailer's Sell the Most Q3. Percentage of Brand Pre-Selection Among Diving Consumers Q4. How Diving Manufacturers Can Help Retailers Sell More Equipment Section B. Dive Travel Destination & Resort Relationships Q9a: Number of Dive Trips Retailers Book Outside the U.S. Q9b: Number of Dive Trips Retailers Book Inside the U.S. Q10a: Average Trip Sizes Outside The U.S. Q10b: Average Trip Sizes Inside The U.S. Q11a: Average Trip Costs Outside The U.S. Q11b: Average Trip Costs Inside The U.S. Q12: How Retailers Book Their Travel Derived Retailer Analysis: Trips Bookings Frequency Compared to Booking Source Q13: Influential Factors in Selecting a Destination for Group Travel Q14: How Resorts Can Help Retailers Sell More Travel Section C. Dive Retailer Analysis Q5: How Often Dive Retailers Attend the DEMA Show Q6. How Retailer's Primarily Advertise to Their Customers Q8. Retailer's Yearly Advertising Budgets Q15. Retailer's Yearly Gross Revenues VII. Derived Dive Industry Analysis Section A. Total Consumer Expenditures in U.S. Dive Retailers Section B. Retailer Generated International Dive Travel Market Synopsis and Analysis Section C. Retailer Generated National Dive Travel Market Synopsis and Analysis Section D. Combined Dive Travel Market Synopsis and Analysis Section E. Total Dive Travel Industry Expenditures Section F. Total Number of Industry Travelers Section G. Total Diving Industry Expenditure Estimation VIII. Appendix: Retailer Questionnaire IX. Appendix: Cline Group Corporate Profile & Client List X. Cline Group Additional Project List | ||||||||||||||||||||||||||||||||||||
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One hundred dive retailers were surveyed for this study, with the following objectives: 1. Study the relationship between dive retailers and diving manufacturers to determine: 2. Study how dive travel has impacted the average dive retailer and how big the market is by: 3. Create a profile of the typical dive retailer's gross income, their advertising expenditures, DEMA show participation and how they primarily advertise for customers. This analysis not only incorporates the tabulated data from this study, but also data collected from other previous diving consumer studies. The second study referenced in this report was conducted for John Englander of the Underwater Explorer's Society (UNEXSO), of Freeport, Grand Bahama. The UNEXSO study took place in October of 1992, where 10,000 surveys were mailed to diving consumers. As a result, the data collected from that study is, in this organization's opinion, the most valid diving consumer data ever collected, due to the large sample size and the highly unbiased nature of the sample. Only a small portion of the data has been authorized for reprint and analysis in this report, and will be referenced in the appropriate section of this report. What makes this study unique to the diving industry is that this data is not only based upon surveying diving retailers, but also the largest diving consumer sampling in the history of the diving industry as well. | ||||||||||||||||||||||||||||||||||||
| Number of Diving Manufacturer Brands Stocked 1. (Q1) The average retailer stocks slightly over 7 different brands of diving equipment. Stores in the western states stocking the most (8.04) and stores in the central states stocking the least (5.4). 2. (Q2) U.S. DIVERS was reported as the most often sold equipment manufacturer (22.1%) and SCUBAPRO making a close second (21.1%). Dacor and Sherwood tied for the third most often sold brand (12.6%). However, SCUBAPRO overtook U.S. DIVERS as the most often sold brand in stores among the western states. Percentage of Consumers with Brand Pre-Selection 3. (Q3) Overall, retailers reported that 33.7% of all their customers come into their stores with a pre-conceived brand or manufacturer in mind before purchasing a piece of equipment. How Diving Manufacturers Can Help Retailers Sell More Equipment 4. (Q4) When dive retailers were asked how diving manufacturers could help them sell more diving equipment, the number one response was for manufacturers to conduct more non-diving advertising (43.8%). The second largest response was for manufacturers to be more concerned about the retailer's profitability, and improve the working relationship between the manufacturer and the store (23.6%). This response encompassed a variety of issues, but primarily dealt with retailers' feeling that manufacturers were not as concerned about their profitability as they should be. The third and fourth responses tied with retailers believing manufacturers need to supply them with more technical information about their products and equally provide them with promotional and marketing assistance (20.2%). National & International Dive Travel Profiles 5. (Q9a) 75% of all retailers responded that their stores sponsor at least one international trip each year. This number peaked with stores in the central states at 87%. The average retailer that conducts international dive travel, sponsors an average of 5.11 trips outside the U.S. each year. 6. (Q9b) 72% of all retailers responded that their stores sponsor at least one national trip each year. Again, this number peaked with stores in the central states at 87%. The average retailer that conducts national dive travel sponsors an average of 21 trips inside the U.S. each year. The number of trips peaked in the western states at nearly 30 trips and dropped the most in the central states to almost 9 trips. 7. (Q10a) Retailers reported that the average group size for trips outside the U.S. was 14 divers. The average reported group size for trips inside the U.S. was 19 divers (Q10b). 8. (Q11a) Retailers reported that the average price for trips outside the U.S. was $1,351.97. The average price for trips inside the U.S. was $269.57. (Q11b). Factors in Selecting a Dive Destination 9. (Q12) Retailers, on average, book almost 61% of all their travel directly with dive resorts. Stores in the eastern states even peaked higher with almost 74% booking directly with dive resorts. The second largest source for bookings was with travel wholesalers (32%) and travel agents reported as the third (26%). 10. (Q13) Retailers responded that the two most influential factors in choosing a destination for group travel was a destination's overall price (39.7%) and the quality of the diving (38.5%). Facilities were reported as the third most important factor in selecting a destination (23.1%). How Dive Resorts Can Help Retailers Sell More Dive Travel 11. (Q14) When retailers were asked how dive resorts can help retailers sell more travel, they responded that they needed more brochures or information about a given resort (16.7%). The number two response was for resorts to provide better customer service to the retailers and their customers (13.3%). Retailer DEMA Attendance 12. (Q5) When asked how often retailers attend the DEMA show, 77% responded that they attend each year, 12% indicated they attend every other year and 11% responded that they rarely or never attend. Retailer Advertising Methods & Yearly Budget 13. (Q6) Retailers responded that their most common form of retail advertising utilized was the Yellow Pages (36%). Referrals and word of mouth advertising placed second (27%), with the stores mailing or newsletters programs placing third overall (26%). 14. (Q8) Retailers responded that their average yearly advertising budget was slightly over $15,000. Advertising budgets in the western states peaked at almost $20,000 per year, with stores in the central states reporting the smallest budgets at almost $13,000. Retailer Yearly Gross Revenues 15. (Q15) Retailers responded that their average yearly gross sales were almost $458,000. Again, stores in the western states peaked at almost $529,000 per year, and stores in the central states reporting the smallest revenues at almost $343,000. Total Estimated Retailer Revenues 16. (Section A) The total dive retailer generated expenditures are estimated to be slightly over $1 billion. Of this figure, approximately $347 million is from dive travel sales. Total Retailer-Generated Dive Travel Revenues 17. (Section B) The estimated $347 million in retailer generated yearly travel expenditures breaks down as follows; $170 million from international dive trip sales; and slightly over $177 million from national dive trip sales. 18. (Section C) From the data collected through this report, and in conjunction with a previous consumer study, all dive industry travel expenditures by U.S. consumers, from retailers and other booking sources, is estimated at roughly $1.7 billion annually. Total Estimated Number of Dive Travelers 19. (Section D) There are a total estimated 3.8 million dive travelers each year vacationing to both national and international destinations. Total Estimated U.S. Consumer Dive Industry Expenditures 20. (Section E) As a result of this study, and in conjunction with a previous consumer study, all U.S. consumer diving industry dollar expenditures - for equipment, instruction and travel - are estimated to total roughly $2.4 billion annually. | ||||||||||||||||||||||||||||||||||||
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The following table may be used to determine the allowances that should be made for the sampling error of a percentage. The computed tolerances have taken into account the effect of the sample design upon sampling error. They may be interpreted as indicating the range (plus or minus the figure shown) within which the results of repeated samplings in the same period could be expected to vary, 90% of the time, assuming the same sampling procedure, the same survey execution, and the same questionnaire were used. Recommended Allowances for Sampling Error of a Percentage In Percentage Points (at 90 in 100 confidence level for a sample size of 100) 1 Percentages near 10...5.0 1 The chances are 90 in 100 that the sampling error is not larger than the figures shown. The table should be used as follows: If a reported percentage is 22, look at the row labeled "percentages near 20". The number at this point is 6.6, which means that the 22 percent obtained in the sample is subject to a sampling error of plus or minus 6.6 points. Another way of saying it is that very probably (90 times out of 100) the average of repeated samplings would be somewhere between 15.4 and 28.6, with the most likely figure of 22 obtained. All sampling error rates listed in this study are well within acceptable tolerances for a survey of this nature. | ||||||||||||||||||||||||||||||||||||
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Phone interviews were conducted over a 4 day period (August 16 to August 19, 1993). A total of 309 calls were attempted, with 209 calls being terminated at some point before or during the survey. 100 surveys were completed and tabulated under the supervision of Cline Group's research department. All participating respondents were required to finish and complete the entire survey, no partial surveys were tabulated or counted in the sample. Data Analysis and Report Generation As outlined in the report introduction, this study incorporates data collected from this survey as well as data from a previous large-scale consumer survey conducted for UNEXSO. The second study's data is necessary to create the industry-wide projections contained in Section VII, 'Derived Dive Industry Analysis'. Analysis is limited to the data contained in this report. All previous studies (with the exception of the UNEXSO study) within the industry were not utilized for any of the analysis in this report. Therefore, this study will be repeated each year at approximately the same time (August or September) to create an trend analysis of this data over the next several years, thereby creating an accurate picture of growth or decline within the diving industry. | ||||||||||||||||||||||||||||||||||||
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Geographical Groupings for this Study As this study involves a limited number of retailers, three geographical breakdowns were selected for comparison purposes. However, as some of the segmentation data involves very limited numbers, caution should be exercised when viewing the geographical segmentation data contained in some of these responses. The geographical segmentation portions of the responses will, however, give a good indication of the general attitudes and responses for the specified areas.
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1. The responses to each question are grouped according to similar classifications and are listed in numerical order of response. The total number of subjects responding to each question are also indicated. 2. All answers are listed in percentages or mean (average) figures for a given response. Questions 4, 6, 12, 13 and 14 responses total more that 100% due to survey subjects responding with multiple answers. The actual number of responses are listed after each percentage breakdown and labeled 'Base'. 3. After each question's response, a chart or series of charts are displayed to graphically represent significant portions of the data. 4. Where there is a significant finding, a subjective analysis of the data is given for application of the reported findings. 5. All data analyzed within this report is taken directly from the survey collected for this study, however, within later sections, a previous consumer study will be clearly identified and referenced for projecting total industry expenditures and other projections. 6. Although the 'Overall' classification contains the outlined error rates, caution should be exercised in interpreting any geographical segmentation with a base of less than 50 retailers. The geographical breakdowns are provided for a point of reference only, the main trends and analysis will be focused on the 'Overall' heading, or the total response for a given question. The results from this retailer study are as follows: Section A. Diving Equipment Manufacturer Relationships When the segmentation chart is viewed, nearly 60% of the central states answered this as their number one response as well. The second area desired is improved or better retailer service, more concern about retailer's profitability and an overall improved working relationship with the manufacturers (23.6%). Many retailers resented the feeling that they are being 'sold' items or quantities that are detrimental to them as retailers, therefore blaming the manufacturers for not doing a better job of educating them in proper stocking and ordering techniques. Stores in the western states felt this 'customer service issue' was more important (38%) than even more non-diving advertising (24%). The third area identified that would help them sell more equipment was for manufacturers to provide them with more technical information about various products (20.2%). This desire for more technical information includes needing equipment articles or specification sheet reprints for in-store distribution or mailing with newsletters. Overall, retailers felt that manufacturers could do a better job of supplying them with more technical information intended to make the store personnel more versed in the various technologies and product specifications, thereby making them more knowledgeable about the products, and better salespersons. Again, the western states peaked at almost 50% for this response. Also tied for third is the retailers need for more marketing or promotional support (20.2%). This response deals with retailer's desire for more product-specific marketing expertise and education from the manufacturer. This support includes seminars, flyers, on-site visits and joint manufacturer/retailer in-store promotionals. The fourth response was the retailers desire for better pricing structures or terms, better (lower) quantity discounts and more incentives for the retailer to stock and sell a particular brand or product (14.5%). Better product quality control and more a timely distribution systems were tied as the fifth highest responses (11.2%). Retailers believe there are several problems with the pricing structures, especially related to quantity discounts and timely distribution of new products for the summer selling season. One retailer summed it up by saying that they were frustrated by the fact that the orders are placed at DEMA for new products, and delivery is not until September or October, after the Summer. Stores in the eastern states identified that the quality control issues was more important (19.6%), while retailers in the western states identified that the distribution problems were more of concern (14.3%). | ||||||||||||||||||||||||||||||||||||
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Section A. Total Estimated Consumer Expenditures in U.S. Dive Retailers This estimate is derived by multiplying the average gross income stated by retailers by the number of U.S. dive retailers. Total Estimated U.S. Retail Revenues:
Notes: The number of dive retailers is derived from a count of all dive retailers listed in the Business Pages and consumer Yellow Pages of every city's phone book throughout the continental United States plus Alaska and Hawaii. Approximately 7% of all stores were removed, accounting for boat docks, general sporting good stores and other non-bonafide retailers. This list is known to be the most comprehensive dive retailer list available, as it relies on telephone book listings, rather than certification agency listings. The above number, one billion dollars, is very close to what PADI, DEMA and others in the past have estimated for the diving industry. However, this figure does not take into account any non-retailers sales, such as mail-order, travel agent, dive travel wholesaler or resort-based retail sales. As will be shown, this one billion dollar figure represents only diving-related expenditures generated through all U.S. dive retailers, and not the entire industry's revenues. This study collected the average number of trips, travelers and average trip prices booked each year by dive retailers. When this data is applied to the entire market, the total number of international dive travelers and their associated dollar volume expenditures can be derived. These calculations are as follows, with each question referenced for source data: International Yearly Market Analysis (some numbers are rounded for display purposes)
Notes: The above $168 million represents the total dollar expenditures of all international dive travel. However, most of this number is paid out by the retailer (either directly or collected on behalf) for airfares, hotels and resort diving fees. This number does represent an estimate for the total international dive travel expenditures within all U.S. retailers by diving consumers. As pointed out, this $168 million figure does not represent any bookings by consumers with travel agents, wholesalers or direct with the resorts. | ||||||||||||||||||||||||||||||||||||
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Just as the international figures can be determined, in the same way the total retailer-generated national dive travel market can also be determined. Again, when the average number of national dive trip bookings, trip sizes and trip prices are analyzed for national travel, the total retailer-booked national dive travel market can be estimated. These calculations are as follows, with each question referenced for source data:
Notes: National travel would be any trip where the retailer charges for diving, whether it be a one day trip (i.e. boat charters) or a multiple day dive trip (i.e. Florida Keys trips). The above $177 million represents the total dollar expenditures of all national dive travel. Again, as stated, most of this figure is paid out by the retailer (either directly or collected on behalf) for airfares, hotels and resort or boat diving fees. As pointed out, this figure does not represent any bookings by consumers with travel agents, wholesalers or direct with the resorts or boat operations. Once both the total retailer-generated international and national markets are known, a total combined expenditure figure can be derived. These calculations are as follows, with each question referenced for source data:
Notes: As illustrated, the total estimated dollar amount for dive travel expenditures in all U.S. retailers is nearly $345 million. Again, this figure does not account for any non-retailer bookings in any form, just the total amount spent through dive retailers each year by diving consumers. | ||||||||||||||||||||||||||||||||||||
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Fortunately, the Cline Group conducted a study for the Underwater Explorers Society (UNEXSO) in the Fall of 1992, and one of the questions asked this precise question. Thanks to special permission from John Englander, President of UNEXSO, this data has been authorized for reprint in this report. The UNEXSO consumer dive travel study is the most comprehensive dive travel study ever conducted in the recent years within the diving industry. The actual study involved mailing 10,000 surveys to consumers that were subscribers of diving magazines. One thousand completed surveys were tabulated. This study is unique in that it utilized multiple publications' subscriber bases, therefore allowing an accuracy unparalleled to date. The exact question we will use for this analysis dealt specifically with how consumers booked their dive travel. The question and the associated responses are as follows:
Notes: As indicated, 20.4% of all diving consumers book their travel through the dive retailer. Therefore, it can be said that the dive trip information calculated from this retailer study only represent 20.4% of the entire dive travel market. Based upon this number (20.4%), the actual size of the entire dive travel market can be calculated by dividing the percentage that book their travel through the retailer by the actual dollar volume that book dive travel through the retailer: | ||||||||||||||||||||||||||||||||||||
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| Note: This table assumes that the same average dollar expenditures are spent on travel booked through other sources as are booked through dive retailers. Actual Market Distribution By Type of Travel Once the actual total dive travel dollar volumes are calculated, both the national and international markets can be estimated based upon the data collected in this study: Type of Travel Dollar Volume Generated Through Retailers Possible Projected Percentages of Whole Market
Notes: According to the above estimations, the total $1.7 billion dive travel market could potentially breakdown almost evenly between national and international travel. This assumes that the retail purchasing environment reflects the entire market as a whole. If that is the case, then the above percentages could be assumed to accurately reflect the actual dollar volume breakdown for all dive travel. | ||||||||||||||||||||||||||||||||||||
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Again, once the actual percentage of people that book travel through the dive retail is known (20.4%), aside from dollar volumes, the total number of travelers can also be calculated by using the data collected from the retailers as follows: Total Number of Travelers Estimation Booking Source Percent of Market Equivalent Traveler Volume
Type of Travel Total Number of Travelers That Book Through Retailers Section
Notes: According to the above estimations, the 3.8 million dive travelers could potentially breakdown with 16% of all travelers taking international trips and the remaining 84% composing national trips. This assumes that the retail booking environment reflects the entire market as a whole. If that is the case, then the above percentages could be assumed to accurately reflect the actual dive travel market breakdowns. The national trips above would include daily boat charters, weekend inland trips or any other national trips paid for through the retailer. | ||||||||||||||||||||||||||||||||||||
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Once the total dollar volume for dive travel can be calculated, and the exact percentage and dollar volume of travel booked through retailers is known, then the total U.S. diving industry can be estimated as follows:
ALL DATA AND TEXT COPYRIGHTED 2003, ALL RIGHTS RESERVED, CLINE GROUP REPRODUCTION, IN ANY FORM, STRICTLY PROHIBITED WITHOUT WRITTEN CONSENT OF THE PUBLISHER. COPIES OF THIS REPORT ARE AVAILABLE FROM CLINE GROUP, 1740 AIR PARK LANE, PLANO TX 75093, 972-267-6700. | ||||||||||||||||||||||||||||||||||||
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1. As a diving retailer, approximately how many different major diving manufacturers does your store stock on a regular basis? _____________________ 2. Which major manufacturer do you sell the most of?________________________ 3. What percentage of your customers come into your store with a certain manufacturer in mind before they purchase? _____________% 4. As a dive retailer, how could diving manufacturers help you increase your store's sales? (a)___________________________________________________________ (b)___________________________________________________________ (c)___________________________________________________________ 5. How often does a store representative attend the DEMA show? ( ) Yearly ( ) Every other year (2) or 6. What is your primary form of retail advertising now? ( ) Yellow pages (1) ( ) Newspapers (2) ( ) Mail/Newsletter (3) 8. What is your store's yearly advertising budget? $________________ The last few questions relate to dive travel. 9. (a.) How many dive trips outside the US does your store sponsor annually? _____ (b.) How many within the US?__________ 10a. What is the average size of your dive trips outside the US _________ (B) Within the US _______________ 11. What's the average price of your dive trips ..Outside the US? $______________ (B) Inside the US? $_________________. 12. Who do you book your trips through? ( ) Travel Agents (1) ( ) Dive Wholesalers (2) ( ) Book direct with resorts (3) 13 What is the most influential factor in choosing a destination for group dive trips? ( ) Commissions (1) ( ) Overall price (2) 14. Based on your experience what could dive resorts do to help you sell more Travel? _______________________________________________________________ 15. What is your store's average yearly gross sales? $________________________. | ||||||||||||||||||||||||||||||||||||
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Diving industry related market research clients the CLINE GROUP has or is currently servicing includes most of the major watersports-related destinations in the Caribbean and major corporate entities within the diving industry. Listed is a recent client and project summary, related specifically to consumer and industry positioning and product research: MASTERCARD CREDIT CARD SERVICES FOR THE DAN DIVERS CREDIT CARD | ||||||||||||||||||||||||||||||||||||
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Rodale Press' SCUBA DIVING Magazine - CLINE GROUP was hired to handle all launch aspects for a new consumer magazine. Responsibilities included complete research, strategic launch planning, graphic design and trade show representation. Rodale also publishes BICYCLING, RUNNER'S WORLD, MEN'S HEALTH, BACKPACKER, PREVENTION and other national titles. Bonaire Hotel and Tourist Association (BONHATA) - CLINE GROUP provided various FAM-related direct-mail services including design, list selection and mailings. Bonaire Marketing Association of North America (BONMANA) - CLINE GROUP provided various FAM-related direct-mail services including design, list selection and mailings. Bonaire Government, Tourism Corporation of Bonaire (TCB) - CLINE GROUP was hired to produce a multiple page guide, designed to increase group bookings among diving retailers and travel agents. Language translations are English, Spanish, German, and Dutch. Distribution will be international. Dive Provo/Ramada Turquoise, Turks & Caicos - consumer research, marketing, brochure and advertising services. Sand Dollar Resort/Sand Dollar Dive & Photo - Bonaire - consumer advertising, research, marketing and strategic mailing projects. Divers Alert Network/DAN - CLINE GROUP provides consumer research, marketing plan development and advertising services. Pro Dive/Ft. Lauderdale, Florida - CLINE GROUP provided international consulting and professional contracting services for developing countries in South America. Projects include expanding instructor training programs into Brazil, Colombia, and Venezuela. Cayman Islands Hotel, Watersports and Restaurant Associations - CLINE GROUP provided an international, multi-destination competitive price comparison study. Stuart Cove's Dive South Ocean/Nassau, Bahamas - consumer research and strategic marketing planning. Times Mirror Publishing, Mosby Year Book Division - an international publishing company with newspaper, magazine and book printing divisions. CLINE GROUP provided market-specific consulting services. Projects included major publishing projects within the diving industry. | ||||||||||||||||||||||||||||||||||||
| CLINE GROUP 2003 DIVING INDUSTRY RESEARCH REPORT U.S. DIVING RETAILER STUDY © 1997, ALL RIGHTS RESERVED, REPRODUCTION STRICTLY PROHIBITED WITHOUT WRITTEN CONSENT OF CLINE GROUP. | ||||||||||||||||||||||||||||||||||||