Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Abbreviations
Premier Insight
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- Threat from supermarkets
- Adding value
- Ethnic home delivery companies need to evolve
- Loyalty is governed by experience
Summary of Key Report Findings
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- Home delivery market tops £1.2 billion in 2004
- The convenience factor is key
- A multicultural society means more choice for hungry consumers
- It’s easier than ever to order out
- Chinese and Indian popular, but their sales do not reflect this
- Home delivery industry is highly fragmented…
- …although three pizza companies stand out
- Advertising is key to the success of home delivery services
- Online ordering is still to make an impact
- Over 60% of consumers polled have recently ordered out
- Consumers with young families opt in to ordering out…
- …and most people order out for no particular reason
- Is there still room for growth?
Market Factors
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- It’s all spend, spend, spend but this is bound to change if higher interest rates kick in
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- Figure 1: Personal disposable income (PDI), consumer expenditure (CONEXP) and the total expenditure on eating out, at current and constant 1999 prices, 1999-2009
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- Figure 2: Consumer confidence, July 2002-May 2004
- The ageing population represents new opportunities
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- Figure 3: Structure of the UK adult population, by age group and lifestage, 1999-2009
- There is now less time to cook from scratch
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- Figure 4: Adults in employment and unemployment, by gender and working status, 1999-2009
- Home-delivered meals offer respite for the busy worker
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- Figure 5: Average working hours per week for full-time employees, 2003
- Eating out is now part of the British way of life
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- Figure 6: The eating out market, by sector*, 1999-2004
- Eat or be eaten
- Technology forges on, but are consumers marching in step?
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- Figure 7: Internet usage, by gender, socio-economic group, age, region and working status, January 2001-February 2004
- Wealthy, but healthy?
Market Size, Trends and Segmentation
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- The home delivery market
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- Figure 8: The UK home delivery market, at current and at 1999 prices, 1999-2004
- Market segmentation
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- Figure 9: The market for home-delivered meals, by sector, 2001 and 2004
- Pizza – top of the toppings
- Chinese – too many fortune cookies?
- Indian – most punters curry favour by eating out
- Other ethnic food – food for thought?
- Fish and chips – the chips are not down
- The premium sector – can gourmet meals ever catch on?
The Supply Structure
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- Pizza
- Domino’s Pizza UK and IRL plc
- Papa John’s/Perfect Pizza
- Pizza Hut (UK) Limited
- Other operators
- Basilico
- easyPizza
- Pizza GoGo
- Ethnic restaurants
- The Clapham House Group
- Harlequin Restaurant Group
- Home delivery companies and intermediaries
- Deliverance Ltd
- Room Service Group plc
Advertising and Promotion
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- Independents rely on word of mouth and a mailbox blitz
- Larger providers have a more aggressive approach
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- Figure 10: Advertising expenditure of top four pizza restaurants, by channel used, 2003*
The Consumer
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- Figure 11: Type of home delivery outlets used, June 2004
- Who orders ethnic cuisine and pizza?
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- Figure 12: Consumers who order pizza and ethnic home deliveries, by gender, age, socio-economic group and working status, June 2004
- Too spicy for the kids?
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- Figure 13: Consumers who order pizza and ethnic home deliveries, by detailed lifestage, June 2004
- Is there further room for growth in London?
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- Figure 14: Consumers who order pizza and ethnic home deliveries, by region and ACORN categories, June 2004
- Wide media usage may indicate advertising prospects
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- Figure 15: Consumers who order pizza and ethnic home deliveries, by media usage, supermarket usage and commercial TV viewing, June 2004
- How often do people order home deliveries?
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- Figure 16: Frequency with which home deliveries are ordered, June 2004
- Forget about the OAPs, they just don’t want to know
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- Figure 17: Frequency with which home deliveries are ordered, by gender, age, socio-economic group and working status, June 2004
- Parents, particularly working mothers, are key targets
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- Figure 18: Frequency with which home deliveries are ordered, by detailed lifestage, June 2004
- Consumers with rising expectations are worth hooking
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- Figure 19: Frequency with which home deliveries are ordered, by region and ACORN categories, June 2004
- Can the tabloid press be exploited more effectively?
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- Figure 20: Frequency with which home deliveries are ordered, by media usage, supermarket usage and commercial TV viewing, June 2004
- Ethnic food and pizzas popular with the regulars
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- Figure 21: Frequency with which home deliveries are ordered, by food type, June 2004
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Consumer Attitudes and Targeting Opportunities
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- Reasons for opting for home deliveries – are consumers just too tired to cook?
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- Figure 22: Reasons for ordering home delivery, June 2004
- Is staying in the new going out for young people?
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- Figure 23: Reasons for ordering home delivery, by gender, age, socio-economic group and working status, June 2004
- Working mums keenest to avoid time in the kitchen
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- Figure 24: Reasons for ordering home delivery, by detailed lifestage, June 2004
- Bored in the capital, so why not order out?
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- Figure 25: Reasons for ordering home delivery, by region and ACORN categories, June 2004
- Television dinners are now the norm for some
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- Figure 26: Reasons for ordering home delivery, by media usage, supermarket usage and commercial TV viewing, June 2004
- The casual approach to entertaining at home
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- Figure 27: Reasons for ordering home delivery, by food type ordered, June 2004
- Attitudes towards home delivery
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- Figure 28: Attitudes towards home delivery, June 2004
- Ethnic meals and pizzas benefit from customer loyalty
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- Figure 29: Top four attitudes towards home delivery, by food type ordered, June 2004
- Frequent users return to the same source
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- Figure 30: Top four attitudes towards home delivery, by frequency, June 2004
- Home delivery target groups
- Habitual Buyers (17% of the sample or 8.3 million adults)
- Convenience Seekers (13% of the sample or 6.3 million adults)
- Night Nesters (13% of the sample or 6.3 million adults)
- Undeliverables (56% of sample or 27 million adults)
- Busy working lives = habitual buying
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- Figure 31: Home delivery consumer target groups, by gender, age, socio-economic group and working status, June 2004
- Convenience Seekers want to relax on their nights in
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- Figure 32: Home delivery consumer target groups, by detailed lifestage, June 2004
- Quality not quantity is the mantra of Convenience Seekers
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- Figure 33: Home delivery consumer target groups, by region and ACORN categories, June 2004
- Television is the key to reaching all segments
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- Figure 34: Home delivery consumer target groups, by media usage, supermarket usage and commercial TV viewing, June 2004
- Chinese is the clear winner in the home delivery stakes
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- Figure 35: Home delivery consumer target groups, by food types ordered and brands, June 2004
- Heavy usage is restricted mainly to Habitual Buyers
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- Figure 36: Home delivery consumer target groups, by frequency, June 2004
- Night Nesters are couch potatoes
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- Figure 37: Home delivery consumer target groups, by frequency, June 2004
- Home delivery is not the number one choice for Convenience Seekers
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- Figure 38: Home delivery consumer target groups, by the number of outlet types used, June 2004
- Night Nesters – is it Indian or Chinese tonight?
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- Figure 39: Home delivery consumer target groups, by the number of outlet types used, June 2004
- Chinese just keeps em’ coming back
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- Figure 40: Home delivery outlets used by customers loyal to one brand/type, June 2004
Consumer Attitudes and Targeting Opportunities – Detailed Demographics
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- Attitudes towards home delivery
- Young people order from outlets repeatedly
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- Figure 41: Attitudes towards ordering home delivery, by gender, age, socio-economic group and working status, June 2004
- Many families use the same provider
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- Figure 42: Attitudes towards ordering home delivery, by detailed lifestage, June 2004
- Where’s all the good food?
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- Figure 43: Attitudes towards ordering home delivery, by region and ACORN categories, June 2004
- What media channels are worth using? The Internet and popular tabloids
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- Figure 44: Attitudes towards ordering home delivery, by media usage, supermarket usage and commercial TV viewing, June 2004
- The number of types of outlets/brands used for home delivery
- Consumers aged 15-34 are the most apt to use/visit three or more brands/outlets
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- Figure 45: Number of types of outlets/brands used for home delivery, by gender, age, socio-economic group and working status, June 2004
- Working mothers tend to stick to one or two outlets or brands they can trust
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- Figure 46: Number of types of outlets/brands used for home delivery, by detailed lifestage, June 2004
- Hard Pressed residents are the most fickle-minded customers
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- Figure 47: Number of types of outlets/brands used for home delivery, by region and ACORN categories, June 2004
- The Internet and popular tabloids are the key channels for effective marketing campaigns
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- Figure 48: Number of types of outlets/brands used for home delivery, by media usage, supermarket usage and commercial TV viewing, June 2004
The Future
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- Younger customers will keep the market buoyant
- Technology will be one of the main growth drivers
- An element of consolidation leads to a bigger menu
- Gourmet moves in
- A healthy future?
Forecast
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- Figure 49: Forecast of the UK home delivery market, 2004-09
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