Presentation on theme: "Shopper Insight Report- Beer Category"— Presentation transcript:
1 Shopper Insight Report- Beer Category HGCA and VCR² Kent Business School Report
2 Contents Providing Shopper Insights Objectives Data Sharing RestrictionsExecutive SummaryAnalysisAppendix
3 Health Warning!The dunnhumby data offers unparalleled breadth and depth but it does not tell us why shoppers behave the way they doFurther research is warranted in order to understand the purchasing drivers (e.g. attitudes, perceptions, motivations) before changes are made to the marketing mix (product, price, place, promotion) or resources are deployed for the development of new products
5 Providing Shopper Insights Collaboration between HGCA and the Centre for Value Chain Research at Kent Business School since 2005Sponsorship of PhD studentsAccess to panel of 1.4 million supermarket shoppersProvide generic and tailor made insight reports for the industry free of charge
8 ObjectivesProvide an overview of shopper behaviour and shopper segmentation for Beer productsIdentify opportunities for market/product developmentHighlight potential areas for further researchDemonstrate the breadth and depth of shopper insight that is available to farmers and small food producers
10 Data Sharing Restrictions This information is supplied by Kent Business School on the strict understanding that recipients use it exclusively as part of their own marketing and product development activities. Under no circumstances should the information provided be shared with third parties, without our prior consent. Failure to comply with these requirements will result in the organisations involved being denied further (subsidized) access to the dunnhumby data and may jeopardise this service provision for farmers and small food producers in the future.
12 Executive SummaryThe category appeals largely to Young Families, with differences observed when looked at the different types of beer. Regional differences are mainly observed when local products are considered but this would deserved further analysis before concluding on the performance of such products.Cross shop analysis reveals that premium products are only a occasional purchase for beer consumers who have bought it along with other beer products. Barrier to repeat purchase other than price should be considered as this may generate increase in sales.
13 Composition of Beer Category AnalysisComposition of Beer Category
14 Composition of Beer Category Ales and StoutsLagerPremium Beer BottlesPremium Beer CansRegional Beers
16 Shopper SegmentationShopper profiles are presented in index form, with 100 representing the average for all supermarket shoppersOver-indexing segments purchase a disproportionately high share – they find them appealingUnder-indexing segments purchase a disproportionately low share – they find them less appealing.In looking for potential target segments (those which are under or over performing) attention is drawn to those which over-index or under-index by at least 10%Further segmentation, by geo-demographics and detailed lifestyle can be provided upon request
17 Lifestage segmentation: Beer – total (12 wks to 27 Jul 08) Looked in general the Beer category appeals the most to Young Families and does not attract as much Pensioners
18 Finer foods shoppers seem to be the most attracted by beers Lifestyle segmentation: Beer – total(12 wks to 27 Jul 08)Finer foods shoppers seem to be the most attracted by beers
19 Regional segmentation: Beer – total (12 wks to 27 Jul 08) Regional differences are not so pronounced, East England slightly over perform the other regions whilst London and Northern Ireland are the worst performing regions
20 Young families over index over the different subgroups Lifestage segmentation: Beer – Ales, Stout and Lager (12 wks to 27 Jul 08)Young families over index over the different subgroupsPensioners prefer Ales and Stout in comparison to Lager and Regional Beer
21 Finer Foods and Healthy shoppers interested in Regional beers Lifestyle segmentation: Ales, Stout and Lager (12 wks to 27 Jul 08)Lager seem to have an equal appeal to all lifestyles whilst less appealing to Traditional shoppersFiner Foods and Healthy shoppers interested in Regional beers
22 Regional segmentation: Ale, Stout and Lager (12 wks to 27 Jul 08) Regional beers have bee grouped all together so many regions tend to over index die to their local products, however Northern Ireland is the worst performer there which means they may be opportunity to launch a product with regional attribute
23 Lifestage segmentation: Premium Beer(12 wks to 27 Jul 08) Cans appeal more to Older Adults than Bottles whilst the opposite is observed for Young Families.
24 Lifestyle segmentation: Premium Beer (12 wks to 27 Jul 08) Finer food and Healthy are orienting their purchases towards Premium beer products.
25 Regional segmentation: Premium Beer(12 wks to 27 Jul 08) The performance of regions varies greatly depending on the format of the product, however it is important to note that products may not match in both groups
27 Cross Shop Analysis Over performing segments: Young families ConveniencePremium beer consumers are buying different types of beerOver performing segments:PensionersTraditionalNorthern ScotlandOver performing segments:Young familiesFiner foodsEast England1.23% of total customers
29 ConclusionsThere are always opportunities for suppliers and retailers who are a) willing to look and b) able to make changes in order to exploit consumer demand that is not met by the existing offerAnalysis reveals that different subgroup appeals to specific customers.Increase in the number of customers resulting form a larger distribution of products has produced an incline in volume salesLager still leads the whole category, generating the highest volume of sales.Consistently over-indexing shopper segments (young families, and finer foods shoppers) are good targets for increasing purchase frequency.Consistently under-indexing shopper segments (young adults, and price sensitive shoppers) represent potential customers that may be appealed in the category by special offers and marketing activities.29
31 the dunnhumby data 2yrs of weekly supermarket purchases 1.4 million shoppersRepresentative of 40% of UK householdsOver 30,000 food productsSegmented by;Lifestage (young adults, young families, older families, older adults, pensioners)Lifestyle (Up-market, Mid-Market and Less Affluent shoppers)Region (13 TV advertising regions)
32 The dunnhumby data: Lifestage Segmentation %shoppersLifestage segmentAge & familyAdults aged 20-39with no childrenYoung Adults16%Adults aged 40-59with no childrenOlder Adults14%Adults with allchildren under 10Young families15%Adults with one ormore child over 10Older families16%Adults over 60with no childrenPensioners9%MultigenerationalhouseholdsMixed28%
33 The dunnhumby data: Lifestyle Segmentation %shoppersLifestyle segmentKey Characteristicstime conscious, enjoy luxury products and are willing to experimentFiner Foods17%interested in organic, environmental benefits, low fat/sugar and calorie consciousHealthy9%regard food as fuel, are busy and rely heavily on the microwaveConvenience22%look primarily for value and rely on staple foodsPrice Sensitive16%have broad tastes, favour established brands and are influenced by the needs of childrenMainstream26%enjoy the art of cooking but rely on a fixed shopping list so less likely to buy on impulseTraditional10%
34 The dunnhumby data: Regional Segmentation ISBA (TV advertising) regionsNorth Scotland – STV North (Aberdeen, Dundee)Central Scotland – STV Central (Glasgow, Edinburgh)Borders – Border TelevisionNorth East – Tyne Tees TelevisionNorth West/ Lancashire – Granada TelevisionNorthern Ireland - UTVYorkshire – Yorkshire TelevisionMidlands – Carlton CentralEast England – Anglia TelevisionLondon – LWTWales and the West – HTV Wales & HTV WestSouth and South East – Meridian BroadcastingSouth West – Carlton West Country
35 The dunnhumby data: Regional Segmentation %shoppers%shoppersRegionRegionLondon20%Scotland9%Midlands15%Yorkshire8%Southern England11%South West4%Lancashire (NW)10%North East3%East of England9%Northern Ireland3%Wales & the West9%
36 Contact Details: HGCA Rachael Arding For further Information about how your business can obtain more information like this please contact:Rachael ArdingHGCA Market Development Project ExecutiveTelephone:
37 Contact Details: VCR² and Kent Business School For further information about the Centre for Value Chain Research at Kent Business School, please contact:Melanie FelgateCentre for Value Chain Research, Kent Business School, University of Kent, Canterbury, CT27PETel:Website:
38 Contact Details: VCR² and Kent Business School For further information about the Centre for Value Chain Research at Kent Business School, please contact:Professor Andrew FearneCentre for Food Chain Research, Kent Business School, University of Kent, Canterbury, CT27PETel:Website: