Table of Contents
Issues in the Market
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- Definition
- Abbreviations
Insights and Opportunities
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- Shifting demographics open up avenues of development
- Partnership and affiliation deals widen the consumer base
- It’s tough at the top
- Removing the wool from their eyes
Market in Brief
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- 2004-06: busier roads but stagnation in vehicle recovery market
- Consolidation constrains product development and marketing focus
- 2007 and beyond: what does the future hold for vehicle breakdown providers?
Fast Forward Trends
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- Trend 1: ‘Male Autism’
- Definition
- What it is?
- Market touchpoints
- Trend 2: “Invasion of the Data-Snatchers”
- Definition
- What it is?
- Market touchpoints
- Trend 3: ‘Help the Aged?’
- Definition
- What it is?
- Market touchpoints
Internal Market Environment
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- Multiple car ownership trend advances
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- Figure 1: Trends in UK population and car parc, 2001-11
- Licence holders – more women and older drivers
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- Figure 2: Full driving licence holders, by age and gender, 1992/94-2004
- More used cars on the roads
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- Figure 3: Total expenditure on cars, by type, 1995-2005
- Car dealers turn to ancillary services and products for income
Broader Market Environment
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- Age structure of population shifts
- Birth-rate declines
- Fewer younger drivers
- Older age groups – opportunities for growth
- Strong growth in PDI and consumer expenditure
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- Figure 4: UK adult population, by socio-economic group, changes 2006-11 and 2001-06
- Growth in affluent consumers a likely positive factor
Competitive Context
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- Increasing reliance on roadside assistance
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- Figure 5: UK retail sales of safety/emergency accessories, 2000-05, and satellite navigation/safety camera units, 2002-05
- Declining sales of safety/emergency accessories
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- Figure 6: Consumer expenditure on car purchasing, servicing & repair and motoring expenses, at current prices, 2001-06
- Servicing & repair spend escalates
Strengths and Weaknesses in the Market
Who’s Innovating?
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- Collaboration – widening the consumer base and cutting costs
- Financial incentives to purchase cover
- Online discounts
- No-claims bonus
- Interest-free
- Cashback
- Technology – providing reassurance and gauging service
- Comforting text messages
- Customer feedback service
- Shifts in demographics, lifestyle and consumer behaviour
Market Value and Forecast
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- Figure 7: The UK vehicle recovery market, by value, 2001-06
- Growth slows – ad hoc struggles
- 2006 – are you a member?
- Future and forecast
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- Figure 8: Forecast of the vehicle recovery services market, at current prices, 2001-11
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- Figure 9: Forecast of the vehicle recovery services market, at 2006 prices, 2001-11
- Factors incorporated in the forecast
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Segment Performance
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- Membership values show steady increase
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- Figure 10: UK market value for motoring organisation membership, by value, 2001-06
- Ad hoc premiums stagnated
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- Figure 11: UK market value for ad hoc breakdown services, by value, 2001-06
- Go slow in ad hoc sector
- Room for manoeuvre?
Market Share
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- Market structure
- Direct sales
- Indirect sales
- Consolidation in the market
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- Figure 12: Company shares in the vehicle recovery market, by UK membership, 2002-06
- Leaders jack up initiatives for growth
Companies and Products
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- AA tightens its grip on operational efficiency
- Membership and product portfolio
- Corporate structure
- Initiatives for growth
- Consumer and advertising campaigns
- RAC seeks to maximise service element
- Membership and product portfolio
- Corporate structure
- Initiatives for growth
- Consumer and advertising campaigns
- Green Flag – strategy of differentiation
- Membership and product portfolio
- UKI Partnerships manages the Green Flag brand strategy
- Initiatives for growth
- Consumer and advertising campaigns
- Other key players losing momentum
- Independent sector – time for reflection
Brand Communication and Promotion
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- Advertising expenditure increases
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- Figure 13: UK main monitored media advertising expenditure on vehicle breakdown and recovery services*, 2001-06
- TV and direct mail advertising predominate
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- Figure 14: Main monitored media expenditure on vehicle breakdown and recovery services, by media type, 2001-05
- Wide variation in spending on advertising
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- Figure 15: Main monitored media advertising expenditure on vehicle breakdown and recovery services, by organisation, 2003-05
- AA spends the most on advertising
- RAC intensifies advertising in 2005
- Green Flag – greatest increase in adspend since 2003
- Other companies reduce spending on advertising
The Consumer – Mileage and Membership
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- Key findings:
- How membership fees are paid
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- Figure 16: Average number of miles personally driven per year, 2002-06
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- Figure 17: Membership of motoring breakdown organisations, 2005 and 2006
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- Figure 18: How membership fee is paid, 2005 and 2006
- Membership levels higher in households with no children
- Membership linked to mileage
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- Figure 19: Average number of miles personally driven per year, by membership of a breakdown service, 2006
- Demographic pattern of UK drivers
The Consumer – Attitudes and Motivations
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- Most important benefits of membership
- Being there when it counts
- Callout discounts
- Cover all areas
- Full-time workers pass the buck
- Single and vulnerable
- Attitudes towards breakdown recovery services
- Useless when it comes to cars
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- Figure 20: Positive attitudes towards breakdown recovery services, by membership of breakdown recovery services, July 2006
- Beware amateur mechanics
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- Figure 21: Negative attitudes towards breakdown recovery services, by membership of breakdown recovery services, July 2006
- Know-how limitations
- Friend of the family
- Regionality
- Prohibitive cost
The Consumer – Identifying Target Groups
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- 24-hour service is a membership prerequisite
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- Figure 22: Repertoire of number of most important benefits of membership of a breakdown recovery organisation, by type of benefit, July 2006
- Closer targeting
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- Figure 23: CHAID analysis identifying main target groups within overall penetration, July 2006
- Consumer typologies
- Safety First
- Laissez-faire
- DIYers
- Demographic pattern
Appendix
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- Introduction
- Consumer research
- ACORN
- Advertising data
- Internal market environment
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- Figure 24: Trends in UK population and car parc, 2001-11
- Broader market environment
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- Figure 25: Trends in the age structure of the UK population, by gender, 2001-11
- Figure 26: Trends in personal disposable income and consumer expenditure, at current and constant prices, 2001-11
- Figure 27: UK adult population, by socio-economic group, 2001-11
- Consumer 1 – Detailed demographics
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- Figure 28: Average number of miles personally driven per year, by gender, 2006
- Figure 29: Average number of miles personally driven per year, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2006
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- Figure 30: How membership fee is paid, 2005 and 2006
- Figure 31: Average number of miles personally driven per year, by membership of motoring breakdown organisations, 2006
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- Figure 32: Membership of motoring breakdown organisations, by gender, age, social grade, age of own children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2006
- Consumer 2 – Detailed Demographics
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- Figure 33: Most important benefits of membership of a breakdown recovery organisation, by average yearly mileage, July 2006
- Figure 34: Attitudes towards breakdown recovery services, by average yearly mileage, July 2006
- Figure 35: Most important benefits of membership of a breakdown recovery organisation, by gender, age, social grade, marital status, lifestage, age of own children, Mintel's Special Groups, working status, household tenure, ITV region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket used, household size and lifestage, July 2006
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- Figure 36: Less important benefits of membership of a breakdown recovery organisation, by gender, age, social grade, marital status, lifestage, age of own children, Mintel's Special Groups, working status, household tenure, ITV region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket used, household size and lifestage, July 2006
- Figure 37: Negative attitudes towards breakdown recovery services, by membership of breakdown recovery services, July 2006
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- Figure 38: Positive attitudes towards breakdown recovery services, by membership of breakdown recovery services, July 2006
- Figure 39: Attitudes towards breakdown recovery services, by gender, age, social grade, marital status, lifestage, age of own children, Mintel's Special Groups, working status, household tenure, ITV region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket used, household size and lifestage, July 2006
- Consumer 3 – Detailed Demographics
- Repertoire analysis
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- Figure 40: Repertoire of number of most important benefits of membership of a breakdown recovery organisation, July 2006
- Figure 41: Repertoire of number of most important benefits of membership of a breakdown recovery organisation, by type of benefit, July 2006
- CHAID analysis
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- Figure 42: CHAID analysis, by membership of breakdown recovery services, July 2006
- Consumer typologies
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- Figure 43: Consumer typologies, by gender, age, social grade, lifestage, Mintel's Special Groups, ITV region, working status, household tenure, marital status, ACORN group, commercial TV viewing, age of own children, media and supermarket usage, July 2006
- Cross-analyses
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- Figure 44: Consumer typologies, by repertoire of number of most important benefits of membership of a breakdown recovery organisation, July 2006
- Figure 45: Consumer typologies, by most important benefits of membership of a breakdown recovery organisation, July 2006
- Figure 46: Consumer typologies, by average yearly mileage, July 2006
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