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Reading consumer minds

Michael Freedman, Senior Consumer Analyst, 13 May 2010. Reading consumer minds. Who we are. Over 700 members from across the international supply chain, including farming At the heart of the industry for 100 years Total supply chain perspective In-house team of 100

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Reading consumer minds

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  1. Michael Freedman, Senior Consumer Analyst, 13 May 2010 Reading consumer minds

  2. Who we are • Over 700 members from across the international supply chain, including farming • At the heart of the industry for 100 years • Total supply chain perspective • In-house team of 100 • Over 30 analysts with relevant industry experience • Well connected • Board and operational level links throughout the chain • Reliable source for government departments and MPC • Strong engagement with leading think tanks • Funding • 20% Subscriptions , 80% Trading company

  3. Supporting farmers and small businesses IGD is proud to support UK farmers and small food businesses We provide a series of free shopper trend reports on key commodities • Lamb • Potatoes • Beef We have trained hundreds of farmers on shopper trends and consumer marketing Fully funded ‘Centenary Scholarships’ to our postgraduate course for many small food businesses in 2009/10

  4. An introduction to Shopper Insight from IGD • Proprietary research programme to provide a landscape perspective of shopper behaviour • Plus client-specific, customised projects for a ‘deep dive’ • Primary GB shopper research methodology • Mixture of both qualitative and quantitative research • Feedback from 1,000+ GB shoppers, including accompanied shopper trips, depth interviews, focus groups and national surveys • All research undertaken by IGD in-house team • Our consumer analysts also conduct the primary research, to provide the highest quality insight

  5. Deep economic contraction - a sudden downturn 5 consecutive quarters of economic contraction. Recession is severe Source: ONS, December 2009 - Shows measure IHYQ

  6. Impact of the recession on shopping behaviour As normal and don’t expect to change +8% Expect to cut back if it gets worse -5% Changed for now - expect to go back to normal 77% of those who have made changes expect to stick with them Changed for good - made changes and will stick with them Source: IGD Consumer Unit

  7. 2012 expectations – careful without compromise Price of food Approach to shopping Quality of food Source: IGD Consumer Unit

  8. Shoppers are even more focussed on price Store choice Product choice Improvements +11% • Price • Layout • Accessible • Parking • Price • Ingredients • Fat content • Brand • Price • Local foods • Promotions • Farm shops/mrkts Source: IGD Consumer Unit

  9. Increased promotional activity

  10. Split opinion on fresh food multi-buys Yes 54% BUY ONE GET ONE FREE No 40% Source: IGD Consumer Unit

  11. Source: IGD Consumer Unit A focus on reducing food waste I have always been conscious of waste. Multi-buys on fresh produce are not ideal unless you are a big family. Sheffield, Post family, C2D I used to go shopping once a week and buy fruit and veg on offers and throw half of it away. We now shop more frequently and buy less on each trip.. Sheffield, With young children, C2D

  12. Shoppers are looking for value and values Promotions Sustainability Ethics Price Value Values Pack size Heritage Performance Provenance

  13. Waitrose – focus on sustainability Source: www.waitrose.com

  14. ‘Ethical’ products bought in the last month % Source: IGD Consumer Unit

  15. What are shoppers prepared to pay a bit extra for? Source: IGD Consumer Unit

  16. These trends are expected to accelerate by 2012 Source: IGD Consumer Unit

  17. Shoppers would like more local food Improvements shoppers want to see: Source: IGD Consumer Unit

  18. Source: IGD Consumer Unit Important to identify local food shoppers Don’t know 3% Non local Activists Uncommitted Choosers

  19. Opportunities for local fruit and vegetable growth Source: IGD Consumer Unit

  20. Meeting different shopper needs for more local food Source: IGD Consumer Unit

  21. Promote the key benefits of local food Support local producers Support local retailers Keeps jobs in this area Source: IGD Consumer Unit

  22. Personalising the impact

  23. Provenance: reinforce local sourcing credentials

  24. Source: IGD Consumer Unit Overlap between working conditions and local sourcing 69% It is more important for companies to provide good pay and conditions to workers in poorer nations 63% It is more important to use British suppliers 53% 10% 16%

  25. Local food is about juggling priorities Price Seasonality Organic Year round availability Animal welfare Freshness Quality Source: IGD Consumer Unit

  26. A fine balance on whether to buy in season Source: IGD Consumer Unit

  27. A fine balance on whether to buy in season Source: IGD Consumer Unit

  28. What does the future hold?

  29. Implications • Appetite for more locally produced food remains strong • Understand your shoppers • Reinforce importance of supporting local economy • Focus on ‘value’ and ‘values’ • Make choices easier

  30. Thank you Michael Freedman Senior Consumer Analyst, IGD michael.freedman@igd.com +44 (0)1923 851 913 www.igd.com

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