Grey Market - Ireland - July 2004

SUMMARY

The report analyses a 45+ grey market of increasing importance, which has emerged from the sheer weight of numbers of mature consumers in Ireland, in combination with their increasing spending power.

At this age, earnings tend to peak, mortgages come to an end and children tend to move out, providing this age group with more disposable income and making them the wealthiest segment of the population.

Exclusive Mintel analysis in this report highlights how the grey market is expanding and becoming more affluent. Charting how financial circumstances and priorities have evolved, this report examines the immediate implications for marketers in industries such as finance, leisure and travel.

TABLE OF CONTENTS

Introduction

• Lifestage definitions
• Geographical, national and regional definitions
• Conversion factors
• Population
• Exchange rates
• BMRB target group index sample sizes
• Abbreviations

Executive Summary

• The Grey Market: large, affluent and growing
• Financial circumstances are changing
• 45+ consumers more likely to use most financial products and services
• The Grey Consumer
• Grey consumers are taking more holidays
• Internet use increasing
• Grey consumers resistant to the idea of being in debt
• Television more important than time with family
• 'Homes and holidays' are the main spending priorities

Factors Influencing Lifestyle

• NI population growth due to growing grey market
• Figure 1: NI population, by age category, 2000-16
• Figure 2: NI population, by age category, 2000-16
• RoI Grey market growth drives population
• Figure 3: RoI population, by age category, 2000-16
• Figure 4: RoI population, by age category, %, 2000-16
• Parental responsibility more prevalent as families are starting later
• Figure 5: Average age of women at marriage and birth of first child, NI and RoI, 1993-2002
• Longer life-expectancy will place a strain on pension funds
• Figure 6: Life expectancy at birth, by gender, NI and RoI, 1981-2002
• Greys have higher average earnings
• Figure 7: Average weekly earnings, by age group, NI, 1992-2002
• Figure 8: Average weekly earnings, by age group, NI, 2002
• Over-45s will make up greater percentage of the workforce
• Figure 9: Economic activity breakdown, by age, RoI and NI, 2003
• Grey consumers lose out to lower interest rates
• Rising house prices make over-45s feel more affluent
• Figure 10: Home ownership, by age group, NI and RoI, 2003
• Figure 11: Average house prices in June, NI and RoI, 1998-2003

Market Size

Northern Ireland

• Figure 12: Population aged 45+, by age group, in thousands, NI, 2000-08
• Republic of Ireland
• Figure 13: Population aged 45+, by age group, in thousands, RoI, 2000-08
• Grey Consumer Finance Clusters

Financial Cluster Analysis - Republic of Ireland

• Figure 14: Market size of cluster groups, as percentage of 45+ population, RoI, 2003
• Figure 15: Cluster groups - Statements related to financial behaviour (percentage point difference
• from average), RoI, 2003
• RoI clusters demographic analysis
• Figure 16: RoI Financial Clusters, by demographic sub-group, 2003
• Gender differences are not significant
• Financially Frivolous have the most responsibilities
• Thoughtful Financers are the most affluent
• Senior Spenders are 'unconstrained'

Financial Cluster Analysis - Northern Ireland

• Figure 17: Market size of cluster groups, as percentage of 45+ population, NI, 2003
• Figure 18: Cluster Groups - Statements related to financial behaviour (percentage point difference from average), NI, 2003
• NI clusters demographic analysis
• Figure 19: NI Financial Clusters, by demographic sub-group, 2003
• Flippant Financers are the least likely to be retired
• Senior Savers tend to be more affluent
• Half of Prudent Purchasers are retired

Lifestyle

Lifestyle attitudes

• Figure 20: Agreement with selected lifestyle statements, NI and RoI, 2003
• Substance rather than style
• Grey consumers understand the importance of lifelong learning
• Grey consumers favour the smoking ban
• RoI Cluster responses to lifestyle statements
• Figure 21: Agreement to selected lifestyle statements, by cluster groups (percentage point
• difference from average), RoI, 2003
• Financially Frivolous show negative responses
• Thoughtful and 'Content' Financers
• Senior Spenders have a positive outlook on life
• NI cluster responses to lifestyle statements
• Figure 22: Agreement to selected lifestyle statements, by cluster groups (percentage point
• difference from average), NI, 2003
• Flippant Financers show reserved lifestyle
• Senior Savers are happy with who they are
• Prudent Purchasers are still striving

Holidays

• Figure 23: Holidays in the last 12 months and number of holidays, RoI, 2003
• The grey holiday market is growing...
• Figure 24: Holidays in the last 12 months and number of holidays, NI, 2003
• ...with many taking more than one holiday a year
• Figure 25: Have been on holiday in the last 12 months, by socio-demographic groups, RoI and NI, 2003
• Holidaying decreases during retirement
• More affluent consumers are the most able to holiday
• Figure 26: Have been on holiday in the last 12 months, by cluster groups, RoI and NI, 2003

Using the Internet

• Figure 27: Average number of hours on the Internet per year, by age and cluster groups, RoI and
• NI, 2003
• Internet use still higher among under 45s...
• ...yet Internet use among 45+ adults is growing
• Figure 28: Used the Internet in the last 12 months, RoI and NI, 2003

Leisure activities

• Figure 29: Top ten leisure activities, RoI and NI, 2003
• RoI Leisure Activities
• Figure 30: Leisure activities, by gender, RoI, 2003
• Figure 31: Leisure activities, by age group, RoI, 2003
• 45-54 enjoy going out
• Figure 32: Go to pubs and bars for a meal or a drink, RoI and NI, 2003
• Figure 33: Leisure activities, by socio-economic group, RoI, 2003
• DEs easier to target through television
• NI leisure activities
• Figure 34: Leisure activities, by gender, NI, 2003
• Women prefer more social activities
• Figure 35: Leisure activities, by age group, NI, 2003
• Figure 36: Leisure activities, by socio-economic group, NI, 2003
• Affluent greys are more active outside the home

Attitudes Towards Finance

• Figure 37: Agreement with selected finance statements, RoI and NI, 2003
• RoI finance attitudes
• Figure 38: Agreement with selected finance statements, by all adults and gender, RoI, 2003
• Men and women tend to share similar attitudes to finance
• Figure 39: Agreement with selected finance statements, by age, RoI, 2003
• 45-54 need more help with finances than 55+ consumers
• Figure 40: Agreement with selected finance statements, by socio-economic groups, RoI, 2003
• Most affluent consumers show tightest finances
• Figure 41: Agreement with selected finance statements, by income groups, RoI, 2003
• Tighter wallet encourages tighter controls
• Affluent consumers want tailored banking
• Supermarket finance faces resistance from affluent consumers
• Figure 42: Agreement with selected finance statements, by lifestage, RoI, 2003
• Independence brings cautious behaviour
• Unconstrained couples are the most proactive in finance
• NI finance attitudes
• Figure 43: Agreement with selected finance statements, by all adults and gender, NI, 2003
• Women manage the money
• Figure 44: Agreement with selected finance statements, by age, NI, 2003
• Parental and work responsibilities get in the way of finance for 45-54s
• Figure 45: Agreement with selected finance statements, by socio-economic group, NI, 2003
• Affluence allows for exuberant finances
• Figure 46: Agreement with selected finance statements, by income band, NI, 2003
• Less affluent consumers 'watch the pennies'
• Figure 47: Agreement with selected finance statements, by lifestage group, NI, 2003
• Lifestage and available income influence finances

Financial Products and Services

• Figure 48: Penetration of selected financial products, by 45+ consumers, NI and RoI, 2001-03
• Figure 49: Penetration of selected financial products, by age, NI and RoI, 2001-03
• Experienced grey consumers appreciate the need for insurance

Mortgages

• Figure 50: Penetration of Mortgages, by demographic and socio-economic groups, NI and RoI,2003
• Figure 51: Penetration of mortgages, by cluster group, NI and RoI, 2003

Insurance

• Figure 52: Penetration of selected insurance types, by demographic and socio-economic groups,RoI, 2003
• Figure 53: Penetration of selected insurance types, by cluster groups, RoI, 2003
• Figure 54: Penetration of selected insurance types, by demographic and socio-economic groups,NI, 2003
• Figure 55: Penetration of selected insurance types, by cluster groups, NI, 2003

Daily banking

• Figure 56: Penetration of current and savings accounts, by demographic and socio-economicgroups, NI, 2003
• Figure 57: Penetration of selected insurance types, by cluster groups, RoI and NI, 2003

Credit cards

• Figure 58: Penetration of credit cards, by demographic and socio-economic groups, RoI and NI2003
• Credit card use decreases with age
• Income levels continue to influence penetration...
• ...while parental demands also influence usage
• Cluster analysis shows varied credit card usage patterns
• Figure 59: Penetration of credit cards, by cluster groups, RoI and NI, 2003
• Figure 60: Response to selected finance statements (Percentage point difference from average)
• and credit card usage, NI and RoI, 2003
• RoI clusters credit card usage
• NI clusters credit card usage

Pensions

• Figure 61: Comparison of state pension level, UK (NI) and RoI, 2003
• RoI Pensions
• Figure 62: Source of pensions, RoI, 2001-03
• Private and company pensions schemes showing increases...
• ...yet state pensions are still the largest pension scheme
• 45-54-year-old consumers most likely to have personal/company pension
• Figure 63: Source of pensions, RoI, 2003
• Responsibility for own pension increases with affluence
• Figure 64: Source of pensions, RoI, 2003
• Figure 65: Source of pensions, RoI, 2003
• School age parents are the least likely to rely on the state
• Figure 66: Source of pensions, RoI, 2003
• RoI Cluster group pension arrangements
• Figure 67: Source of pensions, RoI, 2003
• Financially Frivolous want pensions 'taken care of'
• Thoughtful Financers want informed choices
• Senior Spenders need to choose between present spending and future security
• NI Pensions
• Figure 68: Source of pensions, NI, 2001-03
• Contributory company pension schemes on the increase...
• ...with state pensions also increasing
• Younger grey consumers most likely to rely on personal/company pensions
• Figure 69: Source of pensions, by age, NI, 2003
• Use of company and self-employed pensions higher among affluent grey consumers
• Figure 70: Source of pensions, by socio-economic group, NI, 2003
• Figure 71: Source of pensions, by income group, NI, 2003
• Marketers should consider the present responsibilities of grey consumers
• Figure 72: Source of pensions, by lifestage group, NI, 2003
• NI cluster group pension arrangements
• Figure 73: Source of pensions, by cluster groups, NI, 2003
• Flippant Financers need to plan now rather than later
• Senior Savers want informed choices
• Prudent Purchasers want added personalisation

Speaking to Grey Consumers

Media statements

• Figure 74: Agreement to selected media statements, RoI and NI, 2003

Media attitudes in RoI

• Figure 75: Agreement to selected media statements, by gender, RoI, 2003
• Women report more advertising awareness than men
• Figure 76: Agreement to selected media statements, by age, RoI, 2003
• Local radio news is best for targeting retired consumers
• 45-54 consumers show better response to 'active' communications
• Figure 77: Agreement to selected media statements, by socio-economic group, RoI, 2003
• Local news for local people
• Figure 78: Agreement to selected media statements, by lifestage, RoI, 2003
• Lifestage demands affect media awareness

Cluster group responses to media statements

• Figure 79: Agreement with statements related to media and advertising, by cluster group
• (percentage point difference from average), RoI, 2003
• Senior Spenders are the most 'aware of advertising'
• Thoughtful Financers are keen radio listeners
• Communicating to Financially Frivolous may be problematic

Media attitudes in NI

• Figure 80: Agreement to selected media statements, by gender, NI, 2003
• Women more likely to notice local advertising
• Figure 81: Agreement to selected media statements, by age, NI, 2003
• Radio news advertising most effective for targeting retired consumers
• Figure 82: Agreement with selected media statements, by socio-economic group, NI, 2003
• Radio effective for communicating to affluent consumers
• Figure 83: Agreement with selected media statements, by lifestage, NI, 2003

Cluster group responses to media statements

• Figure 84: Agreement with statements related to media and advertising, by cluster group
• (percentage point difference from average), NI, 2003
• Flippant Financers show lower levels of media awareness
• Prudent Purchasers are demanding of advertising

• Financial Priorities - The Year Ahead

• Figure 85: Financial priorities, RoI and NI, 2003

RoI financial priorities

• Figure 86: Top five financial priorities, by age group, RoI, 2003
• 'Holidays and homes' are the major concerns
• Figure 87: Top five financial priorities, by age group, RoI, 2003
• Financial priorities shift with age
• Figure 88: Top five financial priorities, by socio-economic class, RoI, 2003
• Affluent greys prefer holidays and health clubs

NI financial priorities

• Figure 89: Top five financial priorities, by age group, NI, 2003
• 'Home and holidays' are the top priorities
• Figure 90: Top five financial priorities, by age group, NI, 2003
• Half of 45-54-year-olds want to redecorate the home
• Figure 91: Top five financial priorities, by socio-economic class, NI, 2003
• Going on holiday less important to less affluent greys

Appendix

• Grey population tables
• Figure 92: Population of all adults aged 45 and over in RoI, by age group, in thousands, 2000-08
• Figure 93: Population of all adults aged 45 and over in NI, by age group, in thousands, 2000-08
• RoI lifestyle statements
• Figure 94: Agreement to selected lifestyle statements, by gender, RoI, 2003
• Figure 95: Agreement to selected lifestyle statements, by age group, RoI, 2003
• Figure 96: Agreement to selected lifestyle statements, by socio-economic group, RoI, 2003
• Figure 97: Agreement to selected lifestyle statements, by lifestage group, RoI, 2003
• NI Lifestyle statements
• Figure 98: Agreement to selected lifestyle statements, by gender, NI, 2003
• Figure 99: Agreement to selected lifestyle statements, by age group, NI, 2003
• Figure 100: Agreement to selected lifestyle statements, by socio-economic status, NI, 2003
• Figure 101: Agreement to selected lifestyle statements, by lifestage group, NI, 2003
• Leisure priorities
• Figure 102: Leisure activities (complete list), by socio-demographic variables, RoI, 2003
• Figure 103: Leisure activities (complete list), by socio-demographic variables, NI, 2003
• Financial priorities
• Figure 104: Financial priorities (complete list), by socio-demographic variables, RoI, 2003
• Figure 105: Financial priorities (complete list), by socio-demographic variables, NI, 2003