Chocolate Confectionery - UK - November 2004

INTRODUCTION AND ABBREVIATIONS
Definition
Consumer research
Lifestage and Special Groups
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Men need to be targeted
Targeting the health conscious
Consumers need to be encouraged to plan their chocolate purchase
EXECUTIVE SUMMARY
External Influences threaten
Volume down, value holding its own (just about)
Mixed fortunes across the sectors
Top 3 dominate
Support levels are strong
An impulse driven market
Consumer dynamics
The future is planned
MARKET DRIVERS
We love chocolate!
More affluence drives premium growth
Figure 1: PDI and consumer expenditure, at constant 1999 prices, 1999-2008
Focus on value
Figure 2: Trends and projections in the UK population, by socio-economic group, 1999-2008
Trading up on change
Shifting demographics
Figure 3: Trends and projections in UK population, by age group, 1999-2008
Fewer children
More retired adults
Children’s market
Figure 4: Spending power of those aged 7-16, 2004
Top priority for youngsters
Figure 5: How children aged 7-10 spend their pocket money, by gender, 2004
Looking good starts to compete
Figure 6: How children aged 11-16 spend their pocket money, by gender, 2004
Health impact
Public enemy no. 1
Increasing regulation
What ever happened to self-control?
Weathering the storm
Merchandising trends
Mood States
Figure 7: Mood states map for the chocolate confectionery market
Hunger under threat?
Sheer pleasure
MARKET SIZE AND TRENDS
Putting the market in context
Chocolate dominates confectionery market
Figure 8: UK trade dispatch data for sugar and total chocolate confectionery, 1999-2004
Sugar confectionery drives volume growth
Chocolate volume stagnant
Figure 9: UK trade dispatch data for all UK chocolate confectionery, 1999-2004
Value sales lift market
Volumes slide
 RETAIL SALES
Figure 10: UK retail sales of all chocolate, 1999-2004
Chocolate confectionery
Figure 11: UK retail sales of chocolate by sector, 2001-04
Boxed – second largest sector
Seasonal – specific characteristics
Chocolate confectionery
Figure 12: UK retail sales of chocolate confectionery, 1999-2004
Prices creep up
Figure 13: Average price of chocolate confectionery based on retail prices, 1999-2004
Less is more
The price of obesity
MARKET SEGMENTATION
Segmenting by format
Figure 14: UK retail sales of chocolate confectionery, by sector, 2001-04
Countlines struggle
Bags of self-control
Bars – find opportunities in premium
Figure 15: UK retail sales of moulded bar chocolate by size and positioning, 2001-04
Luxury Blocks – the fastest growth
THE SUPPLY STRUCTURE
Trends among the big players
Manufacturer shares
Figure 16: Manufacturers' value shares in the UK chocolate market (retail sales), 2001-03
Cadbury retains dominance
Masterfoods hot on the heals
Nestlé suffers
Ferrero Leap ahead
Figure 17: Leading brands purchased in impulse for immediate consumption, in the UK chocolate confectionery market, 2001-03
Cadbury takes the lead
Masterfoods dominates
Figure 18: Leading brands purchased for planned consumption, in the UK chocolate confectionery market, 2001-03
A similar picture
A battle for KitKat?
Brand audit
Figure 19: An audit of selected manufacturers and their leading brands, November 2004
Cadbury Trebor Bassett (CTB)
Cost-cutting
The might of Dairy Milk
The purple patch
Introducing a yellow zone
Brand responsibility
Luxury offering
NPD keeps category alive
Ferrero UK Limited
Kraft Foods
Masterfoods (formerly Mars Confectionery & Pedigree Masterfoods)
The Mars brand
Something for the ladies…
The Galaxy masterbrand
A range of popular brands
The health angle
Nestlé
Have a break…
Another classic revamp
New kid on the block
Thorntons
Retail background
e-tailing
Big Bear Limited (Fox’s Confectionery)
Kinnerton Confectionery
NEW PRODUCT DEVELOPMENT
Flavour developments
Diets and Health
Retailers make inroads
Boxed Brands encroach
Ethical and multicultural
NEW PRODUCT BRIEFS
November 2004
October 2004
ADVERTISING AND PROMOTION
Avoiding criticism!
Spend reflects market size
Figure 20: Advertising support by percentage of sales and advertising index, 1999-2004
Deep pockets dominate
Figure 21: Main monitored media advertising expenditure on chocolate confectionery, by leading advertisers, 2001-04
Masterfoods Lead
Nestlé diminishes
Cadbury reaps rewards
Figure 22: Main monitored media advertising expenditure on chocolate, by high spending brands, 2001-03
Cadbury – The Power of Dairy Milk
Happiness is a laughing hyena…?
Promotions under fire
Direct marketing
Ferrero – focused and strong
Masterfoods back Galaxy star
Maltesers boom
Twix – highlighted
Points mean prizes
Nestlé KitKat focus
Smarties revival
Cross-brand cost-effective
Below the line activity
Figure 23: Selected below the line promotions from leading brands within the chocolate confectionery market, price-based activity, September 2004
Multibuy dominates – but for how long?
Hold distribution – at whatever the cost?
Too many cause confusion
Figure 24: Selected below the line promotions from leading brands within the chocolate confectionery market, on pack activity, 2004
A mixed bag
DISTRIBUTION
Figure 25: Distribution of chocolate confectionery by retail channel, based on retail sales estimates, 2002 and 2003
Multiples – biggest but skewed
Category management
Impulse under fire
Impulse drives the category
Stunted growth
Merchandising matters
Other channels
THE CONSUMER
Saturation point
Figure 26: Penetration of chocolate confectionery, by type, 1999-2001
Figure 27: Penetration of chocolate confectionery, by type, 2002-04
Chocolate equality
Focus on frequency
Figure 28: Usage of chocolate confectionery, by type, 2004
Light users dominate
Significant heavy usage
Frequency breakdown
Men boost volume sales
Young chocoholics
Youth and children drive market
Figure 29: Purchasing of chocolate confectionery, by type, 2000, 2002, and 2004
A grim picture
Sharing is shaping the market
Men the dominant countline consumers
Profile of the flagging categories
Women promoting industry change
Women, families and the sharing categories
Mini’s – a balancing act
Selflines – a planned purchase?
King size – and the male domain
Diverting snackers
Punishing the wrong people
Figure 30: Repertoire purchasing of chocolate confectionery, September 2004
Multibuy in impulse?
4 or more – multiple fixtures are used
 DETAILED DEMOGRAPHICS
Figure 31: Usage of chocolate confectionery, by type and by gender, age and socio-economic group, 2004
Figure 32: Usage of chocolate confectionery, by type and by lifestage, presence of children and Mintel’s Special Groups, 2004
Figure 33: Usage of chocolate confectionery, by type and by region, marital status, working status and household size, 2004
Figure 34: Usage of bars of chocolate, by demographic sub-group, 2004
Figure 35: Usage of other chocolate items, by demographic sub-group, 2004
Figure 36: Purchasing of chocolate confectionery, by gender, age, socio-economic group, region and ACORN category, September 2004
Figure 37: Purchasing of chocolate confectionery, by lifestage, presence of children, Mintel’s Special Groups, marital status, working status, household size and tenure, September 2004
Figure 38: Purchasing of chocolate confectionery, by media usage, television viewing habits and supermarket usage, September 2004
Figure 39: Purchasing of chocolate confectionery, by gender, age, socio-economic group, region and ACORN category, September 2004
Figure 40: Purchasing of chocolate confectionery, by lifestage, presence of children, Mintel’s Special Groups, marital status, working status, household size and tenure, September 2004
Figure 41: Purchasing of chocolate confectionery, by media usage, television viewing habits and supermarket usage, September 2004
THE CONSUMER: ATTITUDES AND TYPOLOGIES
Figure 42: Consumer attitudes toward buying chocolate, September 2004
Habitual impulse
Limiting consumption
A host of out-of-home usage
Planning the impulse
Broadly impulsive
Television stimulates usage
Cutting back
Out of home occasions
Cheer up with chocolate
Figure 43: Cross-tabulation of usage of chocolate, with product purchased, September 2004
Familiar and easy
Fulfilment on the go
Figure 44: Cross-tabulation of usage with product purchased, September 2004
Family planning
 CONSUMER TYPOLOGIES
Typology profile
Figure 45: Chocolate confectionery consumer typology groups, September 2004
Chocoholics (10% of sample)
Reaching the Chocoholics
Chocolate planners (18% of sample)
No cocoa (31% of sample)
Reaching No cocoa
Impulse eaters (41% of sample)
Reaching the Impulse eaters
Figure 46: Consumer typologies and number of items of chocolate purchased, 2004
Chocoholics want it all
Chocolate planners divided
High income groups shun variety
Figure 47: Consumer attitudes toward buying chocolate, by gender, age, socio-economics group, region and ACORN category, September 2004
Figure 48: Consumer attitudes toward buying chocolate, by lifestage, presence of children, Mintel’s Special Groups, marital status, working status, household size and tenure, September 2004
Figure 49: Consumer attitudes toward buying chocolate, by media usage, television viewing habits and supermarket usage, September 2004
Figure 50: Consumer attitudes toward buying chocolate, by gender, age, socio-economic group, region and ACORN category, September 2004
Figure 51: Consumer attitudes toward buying chocolate, by lifestage, presence of children, Mintel’s Special Groups, marital status, working status, household size and tenure, September 2004
Figure 52: Consumer attitudes toward buying chocolate, by media usage, television viewing habits and supermarket usage, September 2004
Figure 53: Consumer typology groups for chocolate confectionery, by gender, age, socio-economic group, region and ACORN category, September 2004
Figure 54: Consumer typology groups for chocolate confectionery, by lifestage, presence of children and Mintel’s Special Groups, September 2004
Figure 55: Consumer typology groups for chocolate confectionery, by media use, television viewing habits and supermarket use, September 2004
THE FUTURE
Changing volume into value
Upholding freedom of choice
Limited space
Increased competition
Limited editions and NPD
Changing base
Growing role of the take-home market
FORECAST
Figure 56: Forecast of sales of chocolate confectionery, by value, 2004-09
Countlines suffer from declining impulse
Movement from moulded bars
Volume to struggle
Figure 57: Forecast of sales of chocolate confectionery, by volume, 2004-09
Over-promotion and obesity
Factors used