UK CONSUMERS

1. UK CONSUMERS

2. Life styles & Attitudes to eating • Eating & Drinking Habits • Less structured eating times. Long working hours and more pressured working life styles . Household size in decline, Increase in single person households . Increasingly less family members eating together. Growing Obesity and Health concerns • Breakfast – Cereal, or pick up food on the way to work or eat at office • Manufacturers have responded to the trend with new product development • E.g. Kellogg's Nutrigain Quaker , Oats simple • Lunch - Shorter lunch breaks sandwiches M&S • Snacking and Fast food and convenience food more common place

3. Evening meal – Less family structured evening meals .Evening shift towards ready meals consumed in the home . Fragmented timing and structure of evening meal. More experimental in kitchen due to endorsements of celebrity chefs • Demand for ready to eat , but increasing interest in quality and an awareness of where the food has been sourced • Eating out – Trend in International Cuisine . Driven by large immigrant population e.g. Asian, Mediterranean, Latin American . More experimental in choices • .

4. Drinking • 2007 Volume sales of alcoholic drinks declined since 2000. Beer making the biggest decrease and increase in food offered in pubs . Consumers preferring to drink wine and sprits ( Health concerns and fashion) • Spend £1,272 per person a year market analysts Datamonitor • Shift toward global beers rather than local • Consumption patterns shifting to drinking at home . Trend driven by different ways to spend leisure time other than going to the pub. E.g. outdoor activities. • Supermarkets and Hypermarkets selling beer below cost and .Ban on smoking in pubic places has also driven the trend. • .

5. Traditional pub declining for more gastro pub styles in urban areas catering for young Professionals e.g. All Bar One , Piano and Pitcher and families at weekends Growth in ‘ladette’ women drinking & smoking more . Increase in pubs close to clubbing venues

6. Health concerns affecting eating habits The British Nutrition Health Foundation Supported by Government Initiatives in promoting healthy lifestyles 5 portions of vegetable aid fruit a day. Since 2004 , Obesity continues to rise. Paying more attention to Health warnings Growth in organic foods – Remains an expensive option Functional foods Blur between traditional food and medicine Largest growing sector in food market with new product and brand launches in the sector Benecol – Yogurt lowers cholesterol Probiotics – Yakult Actimel . Contains active bacteria used to increase immune system and digestive system

7. Food Standards Authority Waitrose Asda Sainsburys Tesco

8. Attitudes Avid followers' of fashion . Clothing shopping popular past time Growth out of town shopping malls Increasing the leisure experience within malls cinemas, cafes and restaurants and longer trading laws UK Clothing market polarised by budget brands and premium brands . Budget brands - New Look , Premark , supermarket brands TK maxx & Matalan. Appeal to value shopper branded products at bargain prices Premium Brands eg Versace, Burberry, Channel , Gucci Sports clothing high fashion appeal eg Nike , rebook

9. Primark's success story Primark targets young, fashion-conscious under 35's, offering them high quality, fashion basics at value for money prices. Almost half of sales are in Womenswear. A quarter of sales is dedicated to Menswear and Childrenswear , A strong consumer proposition has been developed for the Primark brand and embodied in the line “Look Good, Pay Less” which communicates Primark's value-based offering in a precise manner, Market Share . Source TNS World Panel Research March 2008 Marks & Spencer 11.4% Primark 10.1% Tesco 9.3% George of Asda 9.3% Matalan 5.1%

10. Primark is successful because it offers: •  Super-competitive prices (the result of technology, efficient distribution, supply and volume buying) •  Mainstream market product quality • High Street locations • Superior store fit • Clear focus on the target market.

11. Grocery Shopping Less time to shop . Higher proportion woman in the workplace Seek convenience . Growth in out of town shopping . One stop shop . Hypermarkets and parking facilities Shopping less frequently . Shop once a week or once a month rather than daily shopping Bulk buying Buying patterns Price not the main concern , quality and convenience of shopping experience more important

12. Grocery Shopping Top 4 Grocers Tesco Sainsbury Morrison Asda. Netto, Aldi Lidel small UK market share Changing supermarket formats in urban areas Smaller range – Sainsbury Central. Sainsbury Local , Tesco metro , Tesco express All main chains have Online shopping services Online food shopping used for stable groceries Growth in High quality private label brands

13. Growth in High quality private label brands The segmentation of consumers according to their food taste, eating habits and lifestyles, and the development of a differentiated offering to meet those various needs, has been one of the success stories in this market. Most grocery retailers offer a basic hierarchy of own-label ranges, based on price and quality from budget own brand, which are often the cheapest on display, through to premium offerings aimed at the indulgent market. Beyond this tiered system, there are also own-label brands targeted at different age groups, those with special dietary needs, and, of course, the health conscious. Lifestyle segmentation is also becoming more common.

15. Environmental Issues – Increasing awareness of global warming Recycling more , Domestic energy consumption up. Energy for cooking falling. Indicating changes in cooking habits e.g. convenience microwave and eating out. Leisure Watching TV the most popular leisure activity . Growth in home entertainment products , electronic games, surfing the net, music 21 % took part on sporting activity. Spending time with family and friends Cinema popular leisure activity declining due to home entertainment systems Gambling The Gambling act 2005 Has doubled the availability of gambling Sport -56% participate in sport e.g. Keep fit , Yoga , walking, cycling martial arts swimming Rugby. Sport – Football the most popular sport Eating out 71% Eat out once a month .Visiting cultural attractions remains popular

16. Internet usage

17. The UK has one of the largest mobile markets in Europe, served by five major providers which have all launched 3G services, The market in 2007 was characterised by new developments in advanced data services such as mobile TV, the bundling of mobile as a quad-play service, and regulatory controls on charges and fees. Mobile penetration reached 117% by mid-2007, yet subscriber growth remains strong as consumers adopt additional SIMs and business-oriented devices such as the BlackBerry. Fierce competition has forced operators to concentrate on packaging service bundles and line service promotions, and experiment with providing mobile searching and advertising facilities.

18. 10-14 Year olds Represent 5% of poluation and set to decline by 2015 . Avergae £8 a week peocket money Biggest users of mobile phones, mobile data for downlaoding games , music 15 – 16 year olds drink more than European counterparts Tweenagers 13-19 year olds Represent 7.9 % of UK population Fall in Birth rate Less in this age group in 2015 only 4.9 million of Uk population Rely on special offer spend on clothes , music and clothing Do not respond well to direct advertising Internet savvy an use interactive web pages ‘ word of mouth’ used in promoting products. Use prepay technology in purchasing products and services on the internet

19. End-Of-Year UK Top 10 Downloads 2007 1 When You Believe Leon Jackson 2 Bleeding Love Leona Lewis 3 Apologize Timbaland Ft One Republic 4 Crank That Soulja Boy 5 Rule The World Take That 6 Call The Shots Girls Aloud 7 Valerie Mark Ronson Ft Amy Winehouse 8 Fairytale Of New York Pogues Ft Kirsty Maccoll 9 Goodbye Mr A Hoosiers 10 Heartbroken T2 Ft Jodie Aysha