Pizza - UK - June 2009

ISSUES IN THE MARKET
Key themes
Definition
FUTURE OPPORTUNITIES
DIY pizza
Trend from Inspire: Customization
Insight
Pizza everyday!
Trend from Inspire: That’s (home) entertainment!
Insight
MARKET IN BRIEF
Tug of war between chilled and frozen
Families love pizza
Frozen is a branded market, while chilled is mostly own-label
The future for the pizza market
INTERNAL MARKET ENVIRONMENT
Key points
Will healthier diets threaten pizzas?
Figure 1: Trends in healthy eating habits, 2004-08
Figure 2: Trends in having treats, 2004-08
Are consumers interested in making pizza from scratch?
Figure 3: Trends in cooking and preparing food, 2004-08
Less additives, more frozen foods
Figure 4: Attitudes towards additive-free and frozen foods, 2004-08
BROADER MARKET ENVIRONMENT
Key points
The obesity crisis
Figure 5: Projection of overweight and obesity prevalence among adults in England, 2003-50
Smaller households growing
Figure 6: Structure of the UK population, by household size, 2004, 2009 and 2014
Making pizza from scratch for ABC1s
Figure 7: UK adult population trends, by socio-economic group, 2004, 2009 and 2014
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
COMPETITIVE CONTEXT
Key points
Pizza or pasta tonight?
Figure 8: Consumption of pizza, ready meals and pasta/noodles, 2004-08
Figure 9: Consumption of pizza, ready meals and pasta/noodles, based on selected demographics, 2008
Ready meals dwarf pizza
Figure 10: UK retail sales for ready meals, pizza and pasta/pasta-based meals, 2004-08
Competition from restaurants and takeaways
Figure 11: Trends in eating pizza takeaways and going to pizza restaurants, 2004-08
Figure 12: UK value of retail pizza compared to takeaway/delivered pizza and eat in pizza/pasta restaurants (and % growth 2006-08), 2004-08
WHO’S INNOVATING?
Key points
Pizza kits still unexplored opportunity
NPD moving towards natural sourcing
Figure 13: NPD in pizza, by top ten positionings, 2006-09
Healthier pizzas
Figure 14: NPD in pizza, percentage with low transfat, sodium or fat positionings, 2006-09
Brands are fighting back
Figure 15: NPD activity in pizza, percentage own-label vs branded, 2006-09
Figure 16: NPD activity in chilled and frozen pizza, by percentage of total new launches, 2006-09
Women and children first
International developments
MARKET SIZE AND FORECAST
Key points
Just keeping up with inflation
Figure 17: UK retail value sales of pizza, 2004-14
Frozen pizza marginally on top in value sales
Figure 18: UK retail value sales of pizza, percentage by sector, 2006-09
What’s next?
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
 FROZEN PIZZA
Figure 19: UK retail value sales of frozen pizza, 2004-14
Figure 20: UK retail value sales of frozen pizza, by size, 2006-08
Figure 21: UK retail value sales of frozen pizza, by base type, 2006-08
 CHILLED PIZZA
Figure 22: UK retail value sales of chilled pizza, 2004-14
 PIZZA BASES AND SAUCES
Figure 23: UK retail value sales of pizza bases and sauces, 2004-14
MARKET SHARE
Key points
Frozen pizza
Figure 24: Brands’ value shares in UK retail value sales of frozen pizza, 2006-08
Chilled pizza
Figure 25: Brands’ value sales in UK retail value sales of chilled pizza, 2006-08
COMPANIES AND PRODUCTS
Manufacturers and brands
Figure 26: Leading companies in the pizza market and their brands, 2009*
Dr Oetker
Heinz
McCain Foods
Napolina
Northern Foods
PizzaExpress
Stateside Foods
BRAND COMMUNICATION AND PROMOTION
Key points
Advertising spend diminishing
Figure 27: Main monitored advertising expenditure on frozen and chilled pizza, 2004-09
Figure 28: Main monitored advertisting expenditure on fresh and frozen pizza, by media type, 2006-09
Goodfella’s and Chicago Town make a stand
Figure 29: Main monitored media advertising spend on fresh and frozen pizza, by brand, 2006-09
Strong advertising spend for pizza restaurants and takeaways
Figure 30: Main monitored media advertising expenditure on leading pizza restaurants and takeaways, 2006-09
CHANNELS TO MARKET
Key points
Pizza is mainly bought in supermarkets
Figure 31: UK retail value sales of frozen pizza, by outlet type, 2006-08
Figure 32: Consumption of different types of pizza, based on grocery stores visited, March 2009
THE CONSUMER – USAGE
Key points
How to increase frequency of eating pizza
Figure 33: Trends in frequency of eating pizza (excluding takeaway), 2004-08
A family meal
Figure 34: Most valuable consumers for volume sales of pizza (excluding takeaway), based on volume importance index*, by selected demographics, 2008
Fresh or frozen?
Figure 35: Usage of pizza (excluding takeaway), by type, 2004-08
Figure 36: Consumption of frozen pizza, by selected demographics, 2008
Figure 37: Consumption of fresh/chilled pizza, by selected demographics, 2008
THE CONSUMER – ATTITUDES AND MOTIVATIONS
Key points
Ready-made pizzas are the most popular
Figure 38: Types of pizza eaten over the past 12 months, March 2009
Figure 39: Usage of frozen, chilled and takeaway pizzas, by selected demographics, March 2009
ABs enjoy making pizzas from scratch
Figure 40: Difference between average response and selected demographics, based on type of pizza eaten, March 2009
Takeaway pizza: Under threat?
Figure 41: Changes in amount of pizza eaten, by type of pizza eaten, March 2009
Pizza made from scratch doing better than others
Reasons to buy pizza
Figure 42: Reasons to buy pizza, March 2009
Figure 43: Consumers who buy pizza because it is quick to cook, by selected demographics, March 2009
Figure 44: Consumers who buy pizza because it is not too expensive, by selected demographics, March 2009
Takeaway pizza is a treat...
Figure 45: Reasons to buy pizza, by types of pizza eaten over the past 12 months, March 2009
Figure 46: Agreement with selected statements relating to pizza, based on pizza types eaten, March 2009
…. while pizza made from scratch is healthier and cheaper
Figure 47: Agreement with selected statements relating to pizza, based on pizza types eaten, March 2009
THE CONSUMER – TARGETING OPPORTUNITIES
Key points
 TARGET GROUPS
Figure 48: Target groups for pizza, March 2009
Figure 49: Reasons to buy pizza, by target groups, March 2009
Pizza is Only a Treat (14%)
Who are they?
Marketing message
Pizza Lovers (15%)
Who are they?
Marketing message
Frozen Pizza Hoarders (16%)
Who are they?
Marketing message
Doing It for the Kids (20%)
Who are they?
Marketing message
Pizza Leaves Me Cold (35%)
Who are they?
Marketing message
APPENDIX
Abbreviations
Advertising data
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 50: Trends in healthy lifestyles and eating habits, by detailed demographics, 2008
Figure 51: Trends in cooking and preparing food, 2004-08
APPENDIX – COMPETITIVE CONTEXT
Figure 52: Consumption of pizza, ready meals and pasta/noodles, by detailed demographics, 2008
Figure 53: Eating takeaways and going to pizza restaurants, by detailed demographics, 2008
APPENDIX – SEGMENT PERFORMANCE
Figure 54: Average spend per user for frozen and chilled pizza, 2009
APPENDIX – THE CONSUMER - USAGE
Figure 55: Frequency and usage of pizza, by detailed demographics, 2008
Figure 56: Usage of pizza, by type, by detailed demographics, 2008
APPENDIX – THE CONSUMER – ATTITUDES AND MOTIVATIONS
Figure 57: Types of pizza eaten over the past 12 months, by detailed demographics, March 2009
Figure 58: Reasons to buy pizza, by detailed demographics, March 2009
Figure 59: Reasons to buy pizza, by detailed demographics, March 2009 (continued)
Figure 60: Types of pizza eaten over the past 12 months, by reasons to buy pizza, March 2009
Figure 61: Types of pizza eaten over the past 12 months, by reasons to buy pizza, March 2009 (continued)
APPENDIX – THE CONSUMER – TARGETING OPPORTUNITIES
Figure 62: Target groups, by demographics, March 2009
Figure 63: Types of pizza eaten over the past 12 months, by target groups, March 2009
Figure 64: Frozen ready-made pizza, by target groups, March 2009
Figure 65: Chilled ready-made pizza, by target groups, March 2009
Figure 66: Pizza from takeaway/home delivery, by target groups, March 2009
Figure 67: Pizza made to order at deli counter, by target groups, March 2009
Figure 68: Pizza made entirely from scratch, by target groups, March 2009
Figure 69: Pizza made base from and my own toppings, by target groups, March 2009
Figure 70: Other pizza type, by target groups, March 2009
Figure 71: Change in grocery shopping habits over the past 12 months, by target groups, March 2009
Figure 72: Health and healthy lifestyles, by target groups, March 2009
Figure 73: Eating habits, by target groups, March 2009