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Brand vs Own Label Retailing - Ireland - April 2012

ISSUES IN THE MARKET
Key themes within the report
Definitions
Consumer research
Abbreviations
INSIGHTS AND OPPORTUNITIES
Value for money isn’t just about price
Own-label needs to gain credence within the healthy eating market
Retain customers after the recession with high-end offerings
MARKET IN BRIEF
Value for money is consumers’ main concern
All-Ireland own-label market to reach €9.5 billion by 2016
More own-label products on the shelf but Irish consumers are not engaging across all categories
Standard and value ranges most popular
FAST FORWARD TRENDS
 TREND 1: BRAND REVIEW
What is it about?
What we’ve seen
What next?
 TREND 2: PROVE IT
What is it about?
What we’ve seen
What next?
INTERNAL MARKET ENVIRONMENT
Key points
Growth of own-label brands
Figure 1: Own-label percentage share of the total grocery market within food multiples, RoI, 2011-12
Figure 2: Branded versus own-label prices of stable goods, RoI, 2011
Brand loyalty still exists
Irish branding matters
Relaunch of own-label ranges
Growth in value own-label ranges
Figure 3: Type of own-label ranges purchased in the last 12 months, NI and RoI, 2010-12
Own-label clothing
High usage of the Tesco Clubcard throughout Ireland
NI
Figure 4: Top five loyalty cards or reward card schemes used, by consumers, NI, February 2012
RoI
Figure 5: Top five loyalty cards or reward card schemes used, by consumers, RoI, February 2012
Loyalty cards don’t always drive sales
Use of technology and online sales
Over 50% of NI consumers shop online
Figure 6: Frequency of shopping online, NI and RoI, February 2012
BROADER MARKET ENVIRONMENT
Key points
Increase in the cost of living in Ireland in March 2012
Figure 7: CPI levels within NI and RoI, March 2010-12
Impact of the 2012 Budget on NI
Rising food prices in NI
Figure 8: UK retail price changes, by food group, 2007-11
Figure 9: Median* gross weekly earning, by full-/part-time and gender, UK, April 2011
Food prices within RoI show less fluctuation
Figure 10: CPI for food and non-alcoholic beverages, RoI, 2007-11
Unemployment in RoI still rising
NI household sizes decrease
Figure 11: Projected households, by size, NI, 2006-31
Figure 12: Projected households, by type, NI, 2006-31
RoI sees single parent households increasing too
Figure 13: Projected households, by size, RoI, 1981-2006
Ageing population
Figure 14: Population, by age, NI, 2008-24
Figure 15: Population, by age, RoI, 2006-26
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
MARKET SIZE AND FORECAST
Key points
Own-label sales to reach €7.1 billion by 2016
Figure 16: Own-label retail sales, all of Ireland, RoI and NI, 2007-16
All-Ireland growth within the grocery market set for 2012 onwards
Figure 17: All grocery sales, all of Ireland, RoI and NI, 2007-16
COMPETITIVE CONTEXT
Key points
The recession has driven an increase in own-label sales
Figure 18: Agreement with statements relating to consumers’ perceptions of own-label goods, NI and RoI, February 2012
Consumers’ obsession with value poses a threat to brands
Figure 19: Agreement with statements relating to consumers’ perceptions of own-label goods, NI and RoI, February 2012
Men in RoI are looking for value for money
Figure 20: Agreement, with the statement ‘branding does not matter to me as long as I get good value for money’, by gender, NI and RoI, February 2012
Older consumers have yet to fully engage with all own-label products
Figure 21: Agreement with the statement ‘I only buy certain types of own-label products’, by gender and age, NI and RoI, February 2012
Figure 22: Own-label product categories that have the lowest appeal among older consumers, NI and RoI, February 2012
ABC1s see own-label as a useful substitute to branded goods
Figure 23: Agreement with the statement ‘Own-label products are useful substitutes when my preferred brand is not available’, by social class and age group, NI and RoI, February 2012
WHO’S INNOVATING?
Key points
Bakery category leading the way for branded products
Figure 24: Top 10 categories for branded products, 2007-12*
All top 10 own-label categories increasing their product offerings
Figure 25: Top 10 categories for own-label products, 2007-12*
Branded products are targeting ‘natural’ consumers
Figure 26: Claim types for branded products, 2007-12*
‘Suitable for Vegetarians’ is the No.1 claim
Figure 27: Claim types for own-label products, 2007-12*
Premium and economy claims important for own-brand
Value lines are engaging in the health trend
Premium own-label products entice consumers through their branding
Own-label organic opportunities lie within staple grocery items
Own-label extends to venture brands
COMPANIES AND PRODUCTS
Asda (NI only)
Tesco
Marks & Spencer
Dunnes
Iceland
The Co-operative (NI Only)
Sainsbury’s (NI only)
Aldi (RoI only)
Lidl
Costcutter
Centra
SuperValu
Superquinn (RoI only)
Londis (RoI only)
Mace NI
Mace RoI
Spar (RoI)
Spar NI
THE CONSUMER – WHERE IRISH CONSUMERS SHOP
Key points
Tesco remains the retailer of choice
Figure 28: Food retailers shopped in the most often in the last month, NI and RoI, February 2012
Figure 29: Consumers who have shopped at Tesco within the last month, NI and RoI, 2010 and 2012
RoI consumers show support for local food retailers
ABC1s are engaging with discounters
Figure 30: Food retailers shopped in most often, by socio-economic group, NI and RoI, February 2012
ABC1s seek value for money offerings
Dunnes is popular with RoI ABC1s
THE CONSUMER – OWN-LABEL PRODUCTS PURCHASED
Key points
Fresh fruit and vegetables are top type of own-label product purchased
Figure 31: Top 10 types of own-label products bought in the last 12 months, NI and RoI, February 2012
Low uptake of own-label meat/fish and poultry
Own-label fruit and vegetables have broad appeal
Figure 32: Demographics of consumers who have purchased own-label fruit and vegetables in the last 12 months, February 2012
Own-label has yet to penetrate the alcoholic drink market
Figure 33: Bottom five own-label product categories, bought in the last 12 months, NI and RoI, February 2012
Irish own-label category sales show mixed results
NI
Figure 34: Top 10 types of own-label product purchased in 2010 and 2012, NI
Figure 35: CPI detailed food price indices, February 2011-12
RoI
Figure 36: Top 10 types of own-label product purchased in 2010 and 2012, RoI
THE CONSUMER – TYPE OF OWN-LABEL RANGES PURCHASED
Key points
Value ranges increase in popularity with consumers
Figure 37: Types of own-label food bought in the last 12 months, NI and RoI, May 2010 and February 2012
NI consumers increasingly look for indulgence in own-label products
RoI consumers receptive to own-label fair trade ranges
Standard own-label ranges appeal to ABC1
Figure 38: Types of own-label food bought in the last 12 months, by socio-economic group, NI, February 2012
Figure 39: Types of own-label food bought in the last 12 months, by socio-economic group, RoI, February 2012
Men and women both opt for lower priced own-label product ranges
NI
Figure 40: Types of own-label food bought in the last 12 months, by gender, NI, February 2012
RoI
Figure 41: Types of own-label food bought in the last 12 months, by gender, RoI February 2012
Non-food own-label products popular within Ireland
Figure 42: Type of non-food own-label products purchased, NI and RoI, February 2012
CONSUMER TYPOLOGIES
 NI TARGET GROUPS
Figure 43: NI target groups according to attitudes towards own-label food, February 2012
Low Users (34%)
Characteristics of Low Users
Who are Low Users?
Understanding Low Users
Economy Affected (29%)
Characteristics of Economy Affected
Who are Economy Affected?
Understanding Economy Affected
Legacy Buyers (23%)
Characteristics of Legacy Buyers
Who are Legacy Buyers?
Understanding Legacy Buyers
Certain Typers (14%)
Characteristics of Certain Typers
Who are Certain Typers?
Understanding Certain Typers
 ROI TARGET GROUPS
Figure 44: RoI target groups according to attitudes towards own-label food, February 2012
Continuous Users (36%)
Characteristics of Continuous Users
Who are Continuous Users?
Understanding Continuous Users
Unengaged (34%)
Characteristics of Unengaged
Who are Unengaged?
Understanding Unengaged
Brand Doubters (17%)
Characteristics of Brand Doubters
Who are Brand Doubters?
Understanding Brand Doubters
Recession Buyers (13%)
Characteristics of Recession Buyers
Who are Recession Buyers?
Understanding Recession Buyers
APPENDIX
NI Toluna demographic tables
Figure 45: Food retailers shopped in the most often in the last month, by demographics, NI, February 2012
Figure 46: Food retailers shopped in the most often in the last month, by demographics, NI, February 2012 (continued)
Figure 47: Food retailers shopped in the most often in the last month, by demographics, NI, February 2012 (continued)
Figure 48: Types of own-label food bought in the last 12 months, by demographics, NI, February 2012
Figure 49: Types of own-label food bought in the last 12 months, by demographics, NI, February 2012 (continued)
Figure 50: Own-label products bought in the last 12 months, by demographics, NI, February 2012
Figure 51: Own-label products bought in the last 12 months, by demographics, NI, February 2012 (continued)
Figure 52: Own-label products bought in the last 12 months, by demographics, NI, February 2012 (continued)
Figure 53: Agreement with statements relating to own-label goods, by demographics, NI, February 2012
Figure 54: Agreement with statements relating to own-label goods, by demographics, NI, February 2012 (continued)
RoI Toluna demographic tables
Figure 55: Food retailers shopped in the most often in the last month, by demographics, RoI, February 2012
Figure 56: Food retailers shopped in the most often in the last month, by demographics, RoI, February 2012 (continued)
Figure 57: Food retailers shopped in the most often in the last month, by demographics, RoI, February 2012 (continued)
Figure 58: Types of own-label food bought in the last 12 months, by demographics, RoI, February 2012
Figure 59: Types of own-label food bought in the last 12 months, by demographics, RoI, February 2012 (continued)
Figure 60: Own-label products bought in the last 12 months, by demographics, RoI, February 2012
Figure 61: Own-label products bought in the last 12 months, by demographics, RoI, February 2012 (continued)
Figure 62: Own-label products bought in the last 12 months, by demographics, RoI, February 2012 (continued)
Figure 63: Agreement with statements relating to own-label goods, by demographics, RoI, February 2012
Figure 64: Agreement with statements relating to own-label goods, by demographics, RoI, February 2012 (continued)
NI consumer typologies tables
Figure 65: Consumer types, by demographics, NI, February 2012
Figure 66: Food retailers shopped in the most often in the last month, by consumer type, NI, February 2012
Figure 67: Types of own-label food bought in the last 12 months, by consumer type, NI, February 2012
Figure 68: Own-label products bought in the last 12 months, by consumer type, NI, February 2012
Figure 69: Agreement with statements relating to own-label goods, by consumer type, NI, February 2012
RoI consumer typologies tables
Figure 70: Consumer types, by demographics, RoI, February 2012
Figure 71: Food retailers shopped in the most often in the last month, by consumer type, RoI, February 2012
Figure 72: Types of own-label food bought in the last 12 months, by consumer type, RoI, February 2012
Figure 73: Own-label products bought in the last 12 months, by consumer type, RoI, February 2012
Figure 74: Agreement with statements relating to own-label goods, by consumer type, RoI, February 2012

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