Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
- Forecast – sector factors
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- Figure 1: Convenience stores sales, 2005-15
- Market factors
- The consumer
- Who uses convenience stores?
- Why use convenience stores?
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- Figure 2: Convenience stores, target groups, 2011
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- Figure 3: Most popular attitude statements, February 2011
- Retail strategy
- The Newcomers
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- Figure 4: Convenience store market, retail share 2010
- The response
- The C-store of the future
- Brands
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- Figure 5: Attitudes towards and usage of convenience store brands, February 2011
- What we think
Issues in the Market
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- Does the advent of the grocery multiple C-store format like Tesco Express mark the end of the C-store as we knew it?
- What is the real impact of the newcomers on the market?
- How must the smaller convenience stores respond?
- Does this mean that there should be a radical change to the product mix of a C-store?
- And what about the recession and prospects for 2011?
Future Opportunities
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- Trend: Life Hacking
- Trend: Locavore
Internal Market Environment
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- Key points
- Planning issues
- Competition Commission
- Industry concentration
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- Figure 6: Primary vs secondary shopping destinations, 2010
- Shopping habits
- Impact of the recession
- Organic, ethical and “health”
- Convenience foods
- Legislative changes
Broader Market Environment
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- Key points
- The economy
- Austerity and the recovery
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- Figure 7: GDP, 2005-15
- Inflation
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- Figure 8: CPI, 2000-10
- Incomes and spending
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- Figure 9: PDI and consumer expenditure, at current prices, 2005-15
- Employment
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- Figure 10: Unemployment rate, 1990-2010
- Population trends
- Ageing population
- The decline of a key target market
- Typical top-up shoppers
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- Figure 11: Population, by age, 2005-15
- Lifestyle trends
- Do It Yourself
- Staying healthy
- Ethical and environmental products
- E-commerce
Competitive Context
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- Key points
- Retail sales remain robust
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- Figure 12: All UK retail sales, at current and constant 2005 prices, 2005-10
- Large food companies driving sector growth
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- Figure 13: UK retail sales through food stores, by type of store, at current prices, 2005-10
- How convenience shopping compares with primary grocery shopping
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- Figure 14: Convenience store sales as a percentage of all food store sales, 2005-10
- Structural changes
- Consumer consumption of foods
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- Figure 15: Consumer expenditure on food for in-home consumption (inc VAT), 2005-10
- Recession and smoking ban drive consumers home
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- Figure 16: Consumer expenditure on alcoholic drinks, by main type, (inc VAT) 2005-10
- Other C-store products
Strengths and Weaknesses
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- Strengths
- There is a demand for convenience stores
- Immediate meal solutions
- Fresh foods
- Weaknesses
- Impact of the public spending cuts
- Seen as expensive
- Not so popular with the old
- Superstore threat
Who’s Innovating?
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- New concepts - blending the C-store with food service…
- Click n Collect
- New format – Little Waitrose
- Green and local
Market Size and Forecast
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- Key points
- Retail sales through convenience stores
- Small grocers
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- Figure 17: Sales by small grocers as % all food retailers sales, 1994-2010
- What is a C-store?
- The data
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- Figure 18: Morrisons: Fuel as % total sales, 2004/05-2010/11
- C-store market size estimate
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- Figure 19: Convenience store market size, 2010
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- Figure 20: Sales by convenience stores, 2005-15
- Prospects
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- Figure 21: Convenience stores sales, 2005-15
- Forecast methodology
Retailer Competitive Analysis
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- Key findings
- Leading convenience retailers
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- Figure 22: Leading C-stores sales and outlets, 2009/10
- Market shares
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- Figure 23: Leading C-stores: Estimated market shares, 2009/10
Company Profiles
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- Co-operative Group
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- Figure 24: Co-operative Group: Sales as share of All food retailers in UK, 2005-09
- Strategic evaluation
- More positive attitude to change
- Brand strength…
- …but uninspiring stores
- Somerfield acquisition a catalyst for change
- New initiatives inspired by Somerfield
- Full benefits yet to come
- Recent history
- Financial performance
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- Figure 25: Co-operative Group: Group financial performance, 2005-09
- Store portfolio
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- Figure 26: Co-operative Group: Outlet data, 2005-09
- Consumer profile
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- Figure 27: Co-operative Group consumer profile – Demographics, February 2011
- Figure 28: Co-operative Group consumer profile – Regional Representation, February 2011
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- Figure 29: Co-operative Group consumer profile – ACORN Grouping, February 2011
- Retail offering
- e-commerce and home shopping
- Costcutter Supermarkets Group Ltd
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- Figure 30: Costcutter Supermarkets Group Ltd: Sales as share of All food retailers in UK, 2005-09
- Strategic evaluation
- Doing the right things
- Not a wholesaler owned symbol group…
- …but it would like to be
- Forecourt relationship under threat
- Recruitment drive underway
- Recent history
- Financial performance
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- Figure 31: Costcutter Supermarkets Group Ltd: Group financial performance, 2005-09
- Store portfolio
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- Figure 32: Costcutter Supermarkets Group Ltd: Outlet data, 2005-09
- Retail offering
- Consumer profile
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- Figure 33: Costcutter consumer profile – Demographics, February 2011
- Figure 34: Costcutter consumer profile – Regional Representation, February 2011
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- Figure 35: Costcutter consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Sainsbury's
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- Figure 36: Sainsbury's Local: Sales as share of all C-store sales, 2006-10
- Strategic evaluation
- Space race on but quality counts
- More competition for sites
- Improved regional penetration through Local
- Absence from forecourts a gap
- 100 new stores a year development target
- Recent history
- Financial performance
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- Figure 37: J Sainsbury's Supermarkets: Group financial performance, 2005/06-2009/10
- Store portfolio
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- Figure 38: J Sainsbury's Supermarkets: Outlet data, 2005/06-2009/10
- Retail offering
- Consumer profile
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- Figure 39: Sainsbury’s Local consumer profile – Demographics, February 2011
- Figure 40: Sainsbury’s Local consumer profile – Regional Representation, February 2011
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- Figure 41: Sainsbury’s Local consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Marks & Spencer (food)
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- Figure 42: Marks & Spencer (food): Sales as share of All food retailers in UK, 2005-09
- Strategic evaluation
- Increasing distinctiveness in a crowded market
- Recent history
- Financial performance
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- Figure 43: Marks & Spencer (food): Group financial performance, 2005/06-2009/10
- Store portfolio
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- Figure 44: Marks & Spencer (food): Outlet data, 2006-10
- Retail offering
- Consumer profile
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- Figure 45: M&S Food consumer profile – Demographics, February 2011
- Figure 46: M&S Food consumer profile – Regional representation, February 2011
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- Figure 47: M&S Food consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Musgrave
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- Figure 48: Musgrave UK: Sales as share of All C-stores in UK, 2005-09
- Strategic evaluation
- Close control over retail customers
- Londis reversing downward trend in membership numbers
- Budgens’ success difficult to gauge
- Recent history
- Financial performance
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- Figure 49: Musgrave: Group financial performance, 2005-09
- Store portfolio
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- Figure 50: Musgrave: Outlet data, 2005-09
- Retail offering
- Consumer profile
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- Figure 51: Londis consumer profile – Demographics, February 2011
- Figure 52: Londis consumer profile – Regional Representation, February 2011
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- Figure 53: Londis consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Premier
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- Figure 54: Premier: Sales as share of All food retailers in UK, 2005-09
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 55: Premier: Estimated Group financial performance, 2005-09
- Store portfolio
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- Figure 56: Premier: Outlet data, 2005-09
- Retail offering
- e-commerce and home shopping
- Spar (UK) Ltd
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- Figure 57: Spar UK Ltd: Sales as share of all convenience retailers in UK, 2006-10
- Strategic evaluation
- Problems of maturity
- Strategy looks right
- Central direction delivers benefits
- Recent history
- Financial performance
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- Figure 58: Spar UK Ltd: Group financial performance, 2005/06-2009/10
- Store portfolio
- Stable membership
- Larger format stores
- Emphasis on recruitment
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- Figure 59: Spar UK Ltd: Outlet data, 2005-10
- Retail offering
- Identifying occasions
- Opportunities to advertise
- Price and promotion essential for C-stores
- Buying alcohol is an important reason to shop
- Being there is a key element of the Spar offer
- Consumer profile
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- Figure 60: Spar consumer profile – Demographics, February 2011
- Figure 61: Spar consumer profile – Regional Representation, February 2011
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- Figure 62: Spar consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Tesco (UK)
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- Figure 63: Tesco UK convenience stores: Sales as share of All convenience retailers in UK, 2006-10
- Strategic evaluation
- The roll-out phase
- Instant maturity?
- One Stop Stores a major business in its own right
- Recent history
- Financial performance
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- Figure 64: Tesco (UK): Group financial performance, 2005/06-2009/10
- Store portfolio
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- Figure 65: Tesco (UK): Outlet data, 2005/06-2009/10
- Retail offering
- Consumer profile
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- Figure 66: Tesco consumer profile – Demographics, February 2011
- Figure 67: Tesco consumer profile – Regional Representation, February 2011
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- Figure 68: Tesco consumer profile – ACORN Grouping, February 2011
- e-commerce and home shopping
- Other symbol groups
- Best-One/Best-In – Bestway Group
- Lifestyle Express – Landmark Wholesale buying group
- Nisa Local/Day Today/Today’s - Nisa-Today’s wholesale buying group
- Mace/Supershop – Palmer & Harvey
- Thoroughgoods/Select Convenience – Bargain Booze
- Keystore/Keyshop – JW Filshill
- Forecourts
- Sites attached to major stores
- Stand alone forecourts with shops
- Oil company multiples
- Dealer multiples – 50 or more sites
Brand Research
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- Brand map
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- Figure 69: Attitudes towards and usage of convenience store brands, February 2011
- Brand attitudes
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- Figure 70: Attitudes by convenience store brand, February 2011
- Brand personality
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- Figure 71: Convenience store brand personality – macro image, February 2011
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- Figure 72: Convenience store brand personality – micro image, February 2011
- Correspondence analysis
- Brand experience
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- Figure 73: Convenience store brand usage, February 2011
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- Figure 74: Satisfaction with various convenience store brands, February 2011
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- Figure 75: Consideration of convenience store brands, February 2011
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- Figure 76: Consumer perceptions of current convenience store brand performance, February 2011
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- Figure 77: Convenience store brand recommendation – Net Promoter Score, February 2011
- Brand index
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- Figure 78: Convenience store brand index, February 2011
- Figure 79: Convenience store brand index vs. recommendation, February 2011
- Target group analysis
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- Figure 80: Target groups, February 2011
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- Figure 81: convenience store brand usage, by target groups, February 2011
- Group One – The Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – The Individualists
Retail Advertising and Promotion
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- Key points
- Growth in C-store advertising
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- Figure 82: Leading grocery & convenience store retailers’ advertising spending, 2006-10
- Spending relative to turnover
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- Figure 83: Selected convenience store retailers’ advertising spending as % of sales, 2006-09
- Spending by media
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- Figure 84: Leading grocery & convenience store retailers’ spending on advertising by media, 2010
- Content and creative
Who Shops Where?
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- Key findings
- Tesco Express in the lead
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- Figure 85: Convenience store purchased at in the last 12 months, February 2011
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- Figure 86: Convenience store purchased at in the last 12 months, June 2007 and February 2011
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- Figure 87: Profile of C-store shoppers, February 2011
Usage of Convenience Stores
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- Key findings
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- Figure 88: Frequency of purchasing from a convenience store, August 2007 and February 2011
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- Figure 89: Profile of C-store users, February 2011
- Usage of the leading C-stores
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- Figure 90: Frequency of purchasing from a convenience store, by most popular convenience store purchased at in the last 12 months, February 2011
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- Figure 91: Frequency of purchasing from a convenience store, by next most popular convenience store purchased at in the last 12 months, February 2011
Consumer Attitudes towards Convenience Stores
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- Key findings
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- Figure 92: Consumer attitudes towards convenience stores, February 2011
- Convenience vs expense
- What should C-stores be doing?
- Attitudes to C-stores and C-stores used
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- Figure 93: Consumer attitudes towards convenience stores, by most popular convenience store purchased at in the last 12 months, February 2011
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- Figure 94: Consumer attitudes towards convenience stores, by next most popular convenience store purchased at in the last 12 months, February 2011
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- Figure 95: Consumer attitudes towards convenience stores, by other convenience store purchased at in the last 12 months, February 2011
Target Groups
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- Figure 96: Convenience stores, target groups, 2011
- Supermarket lovers (38%)
- Driven by convenience (41%)
- C-store lovers (21%)
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- Figure 97: Consumer attitudes towards convenience stores by target groups, February 2011
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- Figure 98: Profile of C-store target groups, February 2011
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- Figure 99: Convenience store purchased at in the last 12 months, by target groups, February 2011
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Appendix: Who Shops Where
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- Figure 100: Most popular convenience store purchased at in the last 12 months, by demographics, February 2011
- Figure 101: Next most popular convenience store purchased at in the last 12 months, by demographics, February 2011
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Appendix – Usage of Convenience Stores
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- Figure 102: Frequency of purchasing from a convenience store, by demographics, February 2011
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Appendix – Consumer Attitudes towards Convenience Stores
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- Figure 103: Most popular consumer attitudes towards convenience stores, February 2011
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- Figure 104: Next most popular consumer attitudes towards convenience stores, February 2011
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Appendix – Target Groups
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- Figure 105: Target groups, by demographics, February 2011
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