Table of Contents
Introduction and Abbreviations
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- Definition
- Consumer research
- ACORN
- Advertising data
- Abbreviations
Premier Insight
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- Is there such a thing as healthy indulgence?
- Taking chilled foods to the next stage
- Setting the scene
- Reinforcing the notion of own-label; the innovator, not imitator
Executive Summary
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- Own-label market enjoys moderate growth
- Demand for convenience has put own-label in the driving seat
- Increased segmentation creates new market opportunities
- Chilled foods has provided major impetus for growth
- Renewed emphasis on BOB brands, despite buoyant economy
- Innovation stems from demand for health, convenience and indulgence
- Retailers invest in promoting sub-brand identities
- Tesco’s sub-brands feature in consumers’ top four favourite brands
- Expect increased demands from consumers
- Own-label reaches its optimum level of penetration
Market Drivers
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- Own-label comes of age
- Price is still the biggest weapon in the armoury
- Increased household demand for convenience creates opportunities
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- Figure 1: Workforce in employment in the UK, by gender and employment status, 1998-2009
- Affluent economy boosts demand for premium own-label
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- Figure 2: Trends and projections in PDI and consumer expenditure, at current and constant 1999 prices, 1999-2009
- ABs love own-label
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- Figure 3: UK adult population, by socio-economic group, 1998-2009
- Figure 4: Changing structure of UK households, 1998-2008
- Traffic lights for healthy eating
- BOB goes bananas
- CoD offerings expanding
- Premium must mean premium
Market Size and Trends
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- Own-label grows from strength to strength
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- Figure 5: Estimated UK retail sales of own-label food*, by value, 1999-2004
- Provenance, convenience and variety key for fresh produce
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- Figure 6: Estimated retail sales of own-label packaged foods*, by value, 1999-2004
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- Figure 7: Estimated UK retail sales of own-label foods, by value, by sector, 1999-2004
- Figure 8: Pattern of UK retail sales of own-label foods, by value, by sector, 2001-04 (est)
- Differentiation is key to growth
- Dieting fads provide plenty of scope for own-label
- The savvy consumer
Market Segmentation
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- EDLP chokes ambient value sales growth
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- Figure 9: Estimated retail sales of own-label ambient foods, 1999-2004
- Figure 10: Estimated own-label penetration, by selected ambient packaged grocery markets, by value, 2001-04
- Brands are adding value, not own-label
- Premium own-label crisps and snacks profit from imitation
- Pioneering in chilled foods rather than like-for-like
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- Figure 11: Estimated retail sales of own-label chilled foods, by value, 1999-2004
- Figure 12: Estimated own-label penetration, by selected chilled packaged foods markets, by value, 2001-04
- Retailers reluctant to relinquish control of chilled
- Processed cheese brands restrain own-label
- Yogurt brands add keen pricing to their portfolio
- The humble sausage has become chic
- Well known brands rule frozen pizza, but not sausages
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- Figure 13: Estimated retail sales of own-label frozen foods, by value, 1999-2004
- Figure 14: Estimated own-label penetration, by selected frozen foods markets, by value, 2001-04
- Own-label plays traditional role in frozen ready meals
- Own-label ice-cream encourages consumers to trade up
- Tea drinkers remain brand loyal
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- Figure 15: Estimated own-label penetration of selected hot beverages markets, by value, 2001-04
- Instant coffee
- Juice drinks more branded than own-label
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- Figure 16: Estimated own-label penetration of selected non-alcoholic drinks categories, by value, 2003-04
- Own-label share of carbonates declines
- Own-label wine proves successful
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- Figure 17: Estimated own-label penetration of selected alcoholic drinks categories, by volume, 2001-04
Advertising and Promotion
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- Figure 18: Main monitored media advertising expenditure on grocers’ own-label brands, 1999-2004
- Increased above-the-line spend on sub-brands
- Sainsbury’s lead investment in adspend
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- Figure 19: main monitored media advertising expenditure, by major supermarkets, 1999-2004
- Figure 20: Above the line advertising by top four retailers, by medium, 2004
- Retailers review their brand identity in 2004
- Below-the-line promotions focus on convenience
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- Figure 21: Below-the-line promotions per category, June-December 2004
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- Figure 22: Examples of below-the-line promotions per category, June-December 2004
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New Product Trends
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- Own-label brands tap into mainstream food trends
- Dieting fads provide plenty of scope for own-label
Supply and Distribution
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- Tesco remains favourite among primary shoppers
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- Figure 23: Source of UK main grocery shopping, 1996-2004
- Retailers
- Tesco
- Asda
- Sainsbury’s
- Morrisons
- Somerfield and Kwik Save
- Other retailers
- Own-label penetration by retailer
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- Figure 24: Estimated penetration of own-label into packaged grocery sales, by leading grocery retailers, by value, 2000-04
- Manufacturers
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- Figure 25: UK own-label manufacturers, 2005
The Consumer
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- Figure 26: Own-label branded products purchased in the last 6 months, December 2004
- Secret of success: Tesco’s breadth of consumer appeal
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- Figure 27: Tesco, Sainsbury and Asda’s Top own-label brands purchased in the last 6 months, December 2004
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- Figure 28: Top Ten own-label brands purchased in the last 6 months, December 2004
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- Figure 29: Health oriented own-label brands purchased in the last 6 months, December 2004
- Young families appreciate Tesco Value
- 35-54-year-old age group sums up Sainsbury’s
- Asda harnesses the accessible treat concept
- Morrisons’ loyal northern followers
- M&S: still the Third Ager’s domain
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The Consumer: Detailed Demographics
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- Figure 30: Tesco own-label brands purchased in the last 6 months, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, marital status, working status, December 2004
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- Figure 31: Tesco own-label brands purchased in the last 6 months, by presence of children, household size, ACORN category, media, Internet and TV usage, and by supermarket usage, December 2004
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- Figure 32: Sainsbury own-label brands purchased in the last 6 months, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, marital status, working status, presence of children, December 2004
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- Figure 33: sainsbury own-label brands purchased in the last 6 months, by presence of children, household size, by ACORN category, by Internet and TV usage, by supermarket usage, December 2004
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- Figure 34: Asda own-label brands purchased in the last 6 months, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, marital status, working status, presence of children, December 2004
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- Figure 35: Asda own-label brands purchased in the last 6 months, by ACORN category, Internet and TV usage, by supermarket usage, December 2004
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- Figure 36: Morrison and Marks and Spencer own-label brands purchased in the last 6 months, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, marital status, working status, December 2004
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- Figure 37: Morrison and Marks and Spencer own-label brands purchased in the last 6 months, by presence of children, household size, by ACORN category, by Internet and TV usage, by supermarket usage, December 2004
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The Consumer – Attitudes and Typologies
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- Figure 38: Attitudes towards supermarket own-brands food & drink, December 2004
- Encouraging feedback for own-label
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- Figure 39: Attitudes towards own-label brands, 2001-04
- Influence of attitude on choice of own-label
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- Figure 40: Cross-tabulation between attitudes to own-label brands and choice of brand, December 2004
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- Figure 41: Cross-tabulation between attitudes to own-label brands and choice of brand, December 2004
- Assessing key targets – consumer typologies
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- Figure 42: Typologies of consumers with regard to own-label food and drink, December 2004
- Fence Sitters (50% of sample)
- Lollys – Loyal own-label lovers (21% of sample)
- Penny Pinchers (18% of sample)
- Image Conscious (11% of sample)
- Targeting key consumer groups
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- Figure 43: Summary table of consumer demographics, with regard to own-label typologies, December 2004
- Assessing enthusiasm – repertoire analysis
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- Figure 44: Number of different own-label sub-brands purchased in the last six months, December 2004
- Tesco shoppers enjoy widest repertoires of own-label
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- Figure 45: Tesco own-label sub-brands purchased in the last six months, December 2004
- Sainsbury’s needs to educate its own shoppers
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- Figure 46: Sainsbury’s own-label sub-brands purchased in the last six months, December 2004
- Asda shoppers stick to one or two main sub-brands
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- Figure 47: Asda own-label sub-brands purchased in the last six months, December 2004
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Attitudes and Typologies – Detailed Demographics
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- Figure 48: Attitudes towards supermarket own-brands food & drink, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, presence of children, marital status, working status, December 2004
- Figure 49: Attitudes towards supermarket own-brands food & drink, by ACORN category, media usage, commercial TV viewing, Internet usage and supermarket usage, December 2004
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- Figure 50: Attitudes towards supermarket own-brands food & drink, by age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, presence of children, marital status, working status, December 2004
- Figure 51: Attitudes towards supermarket own-brands food & drink, by ACORN category, media usage, commercial TV viewing, Internet usage and supermarket usage, December 2004
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- Figure 52: Cross-tabulation between attitudes to own-label brands and choice of brand, December 2004
- Figure 53: Cross-tabulation between attitudes to own-label brands and choice of brand, December 2004
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- Figure 54: Detailed demographics for consumer typologies, by age, socio-economic group, lifestage, Mintel’s Special Groups, region, household size, presence of children, marital status, working status, December 2004
- Figure 55: Taken from the last own-label report, March 2003
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The Future
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- Value for money demands will increase
- Back to basics
- Retailers respond to threat of discounters
- Is there a limit to own-label growth?
Forecast
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- The supply side
- Own-label at the optimum level
- Leading multiples slightly keener on own-label
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- Figure 56: Retail sales of own-label packaged foods within the food sector, at current prices*, 1999-2004
- The demand side
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- Figure 57: Impact of changing demographics on own-label, 1999-2004
- Slightly better than neutral
- Bringing both together
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- Figure 58: Forecast of retail sales of own-label packaged foods, at current prices, 2004-09
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