Identifying the Convenience Consumer: Targeting strategies for cash-rich, time poor consumers

SUMMARY

Despite the invention of a range of labour-saving devices, we work more hours than ever and often these hours are not the standard 9-5; asconsumers we also expect things fast - a by-product of the channel surfing, fast food culture that has emerged in the UK in the past 20 years.

The Convenience Consumer: Targeting strategies for cash-rich, time poor consumers report ties in an analysis of the following areas: snack foods,service sector trends, development of the retail sector and drivers of consumer. By identifying the critical triggers for purchase occasions thisreport enables you to optimise your marketing spend and overall strategy towards consumers that are short of time, lead fluid or unstructuredlifestyles or who are on the move.

This report examines the following: The triggers for a convenience lifestyle; The relationship between convenience stores and their consumers; Therelationship between consumers and a changing pattern of meal times; The way consumers are eating out of the home.

TABLE OF CONTENTS

Executive Summary

• Introduction
• The convenience junky society
• The c-store consumer
• Changing consumer mealtimes and snacking
• Consumers on-the-go
• Conclusions

Chapter 1 Introduction

Chapter 2 The Convenience Junky Society

• Summary
• Introduction
• The pace and intensity of work heightens
  • Which is the most hard-working country in Europe?
• Changing household structures
  • The impact of dual income homes
• Frequency of adult-only households
• Do not underestimate the value of affluence
  • Redefining consumer value; traditional versus modern perspective
• Profile of the convenience junky
  • So who is a service junky?
  • Convenience service usage among service junkies
  • The notion of .lifestyle stickiness.
• Buy-in to delivery food across Europe
  • Putting a value on the meal delivery market
• Locating the opportunities for retailers and fmcg manufacturers
  • Seeing things from the manufacturer and the retailer point of view
  • Inhibitors to market growth
  • Implications of service junky traits

Chapter 3 The C-Store Consumer

• Summary
• Introduction
• C-stores across Europe
  • The c-store market in context of size and value
  • C-store penetration . Varying shopping habits and purposes of visits
• Monitoring the supply chain . Evaluating evolving distribution channels
  • Petrol forecourt retailing
  • Progression of petrol forecourt retailing by decade
  • Sweden has the highest forecourt penetration in Europe
  • Vending machines
  • The Italian infatuation with vending machines.
  • Implementing convenience retailer know-how
  • Cullens . A traditional proposition
  • M&S Simply Food . A .top-up solution. Approach
• Profile of the c-store consumer
  • Getting to grips with socio-economic grades
  • Shopping frequency
• Finding and implementing superior opportunities in food and drink

Chapter 4 Changing Consumer Mealtimes and Snacking

• Summary
• Introduction
• Sizing meal opportunities across Europe
  • Breakfast
  • Lunch
  • Dinner
• Maximising snacks opportunities across Europe
• Overcoming consumer attitudes towards missed meals and snacking
  • Meals
  • Snacking
• How to increase your market share by encouraging consumers to eat
• breakfast.

Chapter 5 Consumers On-The-Go

• Summary
• Introduction
• Catalysts for on-the-go consumption
  • European commuter times
• Exploring the dynamics of how consumers travel
  • Number of journeys made in Europe
  • The car remains the dominant mode of travel
  • Longer journerys = increased boredom = increased snacking
  • Overview of all journeys
  • Short journeys
  • Long journeys
• Frequency of on-the-go consumption
• Identify major and neglected spend sectors in on-the-go food and drinks
• category
  • Overall market sizes
  • Food on-the-go market size by country
  • Per capita spend on on-the-go consumption
  • Food on-the-go value share per market segment
  • Food on-the-go value share by country
  • Drinks on-the-go market size by country
  • Per capita spend on on-the-go drinks consumption
  • Drinks on-the-go value share per market segment
  • Drinks on-the-go value share per country
• On-the-go opportunities in food and drinks
  • Influence and react to consumer attitudes
  • Development in retail outlets

Chapter 6 Conclusions 1

• Potential of the convenience sector across Europe

Index

List of Figures

Figure 1.1: Consumer value is being redefined

Figure 1.2: Survey question: Why do you snack? (all respondents)

Figure 1.3: Catalysts for on-the-go consumption, ranked by importance

Figure 1.4: Health and potential of the convenience sector across Europe

Figure 1.5: The three megatrends

Figure 2.6: Pace and intensity of work, survey of European workers 1990,1995 and 2000

Figure 2.7: Proportion of full-time employees working long hours, Europe 1999

Figure 2.8: Households with two adults (% of total), Europe 2000

Figure 2.9: Households with three adults or more and no children (% of total), Europe 2000

Figure 2.10: Consumer value is being redefined

Figure 3.11: Market context 2001

Figure 3.12: Progression of petrol forecourt retailing by decade

Figure 3.13: Sainsbury.s Robo-shop in the Hazel Grove store in Manchester, UK

Figure 3.14: Rapaille.s model of behavioural response and example interpretations for FMCG

Figure 4.15: Overall breakfast spend by country (?bn), 2001

Figure 4.16: Channel and sector share of breakfast (% value), 2001

Figure 4.17: Overall lunch spend by country (? Bn), 2001

Figure 4.18: Channel and sector share of lunch (% value), 2001

Figure 4.19: Overall dinner spend by country (? Bn), 2001

Figure 4.20: Channel and sector share of dinner (% value), 2001

Figure 4.21: Snack occasions per person per day, average 2001

Figure 4.22: Survey question: Why do you snack? (all respondents)

Figure 5.23: Catalysts for on-the-go consumption, ranked by importance

Figure 5.24: Number of journeys per mode of transport, 1990.2001

Figure 5.25: Percentage of total journeys per mode of transport, 1990.2001

Figure 5.26: Number of journeys by mode and length, 1990.2001

Figure 5.27: Strengths and weaknesses of modes of transport for on-the-go consumption

Figure 6.28: Health and potential of the convenience sector across Europe 1

List of Tables

Table 1.1: C-store sales information, 2001

Table 2.2: Proportion of full-time employees working long hours, Europe 1999

Table 2.3: Households with two adults (m), Europe 2000

Table 2.4: Households with three adults or more and no children (million), Europe 2000

Table 2.5: Meal delivery service users, Europe 2001

Table 2.6: Meal delivery market size, Europe 2001

Table 3.7: Ranking of shopping frequency and c-store penetration for selected countries, 2001

Table 3.8: C-store sales information, 2001

Table 3.9: C-store penetration, 2001

Table 3.10: Development of petrol forecourts 1999.2001

Table 3.11: Forecourt penetration of the c-store base 2001, selected countries

Table 3.12: Development of vending machines, 1999.2003

Table 3.13: C-store sales by socio-economic grade, 2001

Table 3.14: Consumer shopping behaviour and c-store visits per annum, 2001

Table 4.15: Breakfast occasions per person per year, 2001

Table 4.16: Breakfast market by channel and sector (?m), 2001

Table 4.17: Daily spend per breakfast, 2001

Table 4.18: Lunch occasions per person per year, 2001

Table 4.19: Lunch market by channel and sector (?m), 2001

Table 4.20: Daily spend per lunch, 2001

Table 4.21: Dinner occasions per person per year, 2001

Table 4.22: Dinner market by channel and sector (?m), 2001

Table 4.23: Daily spend per dinner, 2001

Table 4.24: Snack occasions per person per day average, 2001

Table 4.25: Daily food spend per snack day-part (?/head/occasion), 2001

Table 4.26: Daily drinks spend per snack day-part (?/head/occasion), 2001

Table 4.27: Snacks market by channel and sector (?m), 2001

Table 4.28: Snacks market by channel and sector (?m), 2001 (continued)

Table 4.29: Comparison of food expenditure on snacks versus breakfast (?m), 2001

Table 4.30: Frequency of missed meals in Europe, all respondents

Table 4.31: Survey question: If you miss breakfast at home on a workday what do you do instea

(all respondents)

Table 4.32: Survey question: On a weekday where do you eat the following meals? (all

respondents)

Table 4.33: Survey question: Do you typically eat the following meals on your own? (all

respondents)

Table 4.34: Frequency of snacking by day-part in Europe, all respondents

Table 4.35: Preference for sweet or savoury snacks by day-part, all respondents

Table 4.36: Survey question: How often do you engage in the following snacking occasions? (a

respondents)

Table 5.37: European commuter times 1996 and 2001

Table 5.38: Pace of life and walking speeds in Europe (ranked out of 31 countries overall, 1 =

fastest)

Table 5.39: Number of journeys in Europe, 1990.2001

Table 5.40: Number of journeys per person per day, 1990.2001

Table 5.41: Time spent travelling 1990.2001

Table 5.42: Number of journeys per mode of transport, 1990.2001

Table 5.43: Percentage of total journeys per mode of transport, 1990.2001

Table 5.44: Number of journeys by mode and length, 1990.2001

Table 5.45: Share of passengers for short journeys by mode of transport (2001)

Table 5.46: Share of passengers for long journeys by mode of transport (2001)

Table 5.47: Frequency of on-the-go food consumption by country and market segment, 2001

Table 5.48: Frequency of on-the-go drinks consumption by country and market segment, 2001

Table 5.49: Value of on-the-go food consumption (?m), 2001

Table 5.50: Value of on-the-go drink consumption (?m), 2001

Table 5.51: Food on-the-go market value by country and market segment (?m), 2001

Table 5.52: Per capita spend on on-the-go food consumption, (?), 2001

Table 5.53: Food on-the-go value share per market segment, (%), 2001

Table 5.54: Food on-the-go value share by country, (%), 2001

Table 5.55: Drinks on-the-go market value by country and market segment, (?m), 2001

Table 5.56: Per capita spend on on-the-go drinks consumption, (?), 2001

Table 5.57: Drinks on-the-go value share per market segment, (%), 2001

Table 5.58: Drinks on-the-go value share per country, (%), 2001