Abstract:
The next stage is the opportunity for more products that address the specific lifestyle needs of different demographic groups. The mass-market, high-margin product can be achieved by searching for 'lifestyle synergies' between the apparently distinct demographic groups. Targeting the Individual: Understanding consumer needs, drivers and marketing opportunities to 2010, a management report by Business Insights, will allow you as a food and drink manufacturer and retailer to identify new distinct demographic groups and ensure that your product offering fits the needs of your consumer base. The report will allow you to assemble different demographic groups with similar requirements and find new mass-market and high-margin opportunities, whilst revealing how the marketing mix should evolve for targeting specific groups
Table of contents:
Executive Summary
Introduction
Consumer drivers
Industry dynamics
Market evaluation
Marketing mix
Case studies
Industry survey
Chapter 1 Introduction
Summary
Introduction
What is meant by ‘the individual’?
Changes in society
New opportunities for the food and drink industry
Multiple-niche specialisation
Structure of this report
Consumer drivers
Industry dynamics
Market evaluation
Marketing mix
Case studies
Industry opinion survey
Chapter 2 Consumer Drivers
Summary
Introduction
Drivers of individualisation
Specific dietary needs
As consumers change, so should food and drinks
Life stages
Household structures are changing but what impact does this actually have on the food and drinks industry?
Targeting the workers
The importance of ethnic diversity as driver of individualised products
Regional opportunities and the importance of consumer awareness
Religion
The growing ethical market opportunity
Environment
The loyal and the occasional organic customers
Anti-GM
Fast growth in the fairtrade industry
Chapter 3 Industry Dynamics
Summary
Introduction
The flexibility of mass-market products
Differentiation using the consumer megatrends
Targeting the needs of the individual consumer
Chapter 4 Market Evaluation
Summary
Introduction
Implied market values
Potential market sizes
Food and drink expenditure by consumer group
Male
Female
Children
Teenagers
Young adults
Adults
Senior citizens
Food and drink expenditure by market sector
Household food and drink expenditure
Chapter 5 Marketing Mix
Summary
Introduction
Moving away from standard promotion channels
Word of mouth promotion
Who influences the influencer?
Taking advantage of technology
Dell-style mass customisation of the product
Does Dell have any lessons for the food and drink industry?
I’m very happy for Dell, but what has this got to do with food?
Multiple pricing opportunities
How should a price point be chosen?
Multi-pricing strategies
Packaging to communicate value-added benefits
Chapter 6 Case Studies
Summary
Introduction
Go-co bars from Experentis, UK
About Experentis
Go-co bars - Red Bull in chocolate?
Promotion
‘Nurture our world’ by Compass Group, UK
About Compass Group
NOW - Nurture Our World
Theatre-style cooking
Mecca-Cola, France
About Mecca-Cola
Is Mecca Cola a ‘Muslim’ cola?
The market opportunity
Innovative product launches targeting key demographic groups
Bakery
Cereals
Confectionery
Dairy
Desserts
Snacks
Drinks - soft
Drinks - alcoholic
Drinks - hot
Chapter 7 Industry Opinion Survey
Summary
Introduction
Most effective marketing channels
Packaging to differentiate products
Impact on pricing strategies
Revision of the traditional marketing mix
Criteria for segmenting consumers
Consumer groups as a direct market and as influencers
Neglected consumer groups
Channels that cater to individual consumer needs
Nutritional factors that make consumers avoid a product
Ethical factors for avoiding a product
Chapter 8 Appendix
Glossary
Index
List of Figures
Figure 2.1: Number of different leisure activities people engage in during a 12-month period, by age and gender
Figure 2.2: It is important to “fit in” rather than be different from other people, by age
Figure 2.3: Dietary changes made by respondents during the last six months, 1996
Figure 2.4: The elements that survey respondents believe determine food safety, 1998
Figure 2.5: Provamel’s (from AlproSoya) chocolate dessert aimed at women with lactose intolerance
Figure 2.6: Breakfast meals skipped by age group, 1996 and 1999
Figure 2.7: You’re a mugger. Who do you target?
Figure 2.8: Old age ratio: people aged over 65 over working age population (16—64), 1975—2030e
Figure 2.9: Divorce rate, 1970—1998
Figure 2.10: Mean age of women at first childbirth, 1970—1995
Figure 2.11: Average household food and drinks expenditure broken down by income quintile group, 2002 (US$)
Figure 2.12: Foreign and foreign-born population, 1998
Figure 2.13: Population breakdown by ethnic background, 2002
Figure 2.14: Visits abroad (millions), by country 1995—2005e
Figure 2.15: Breakdown of population by religion, 2002
Figure 2.16: Proportion of survey respondents in favour of environmental taxes on products in the EU, 1997 (%)
Figure 2.17: Recycling of container glass, 1990—1999
Figure 3.18: Mass-market products as a compromise of consumer requirements
Figure 3.19: Escalating consumer demands
Figure 4.20: Market data methodology
Figure 4.21: Potential and implied market value of food and drink products targeting male consumers, US$m, 2002
Figure 4.22: Potential and implied market value of food and drink products targeting female consumers, US$m, 2002
Figure 4.23: Potential and implied market value of food and drink products targeting children, US$m, 2002
Figure 4.24: Potential and implied market value of food and drink products targeting teenage consumers, US$m, 2002
Figure 4.25: Potential and implied market value of food and drink products targeting young adult consumers, US$m, 2002
Figure 4.26: Potential and implied market value of food and drink products targeting adult consumers, US$m, 2002
Figure 4.27: Potential and implied market value of food and drink products targeting senior citizens,US$m, 2002
Figure 4.28: Potential and implied alcoholic drinks value for products targeting key consumer groups, US$m, 2002
Figure 4.29:Average retail price per serving for alcoholic drinks products targeting key consumer groups, US$, 1998—2001
Figure 4.30: Potential and implied bakery value for products targeting key consumer groups, US$m, 2002
Figure 4.31: Average retail price per serving for bakery products targeting key consumer groups, US$, 1998—2001
Figure 4.32: Potential and implied cereal value for products targeting key consumer groups, US$m, 2002
Figure 4.33: Average retail price per serving for cereal products targeting key consumer groups, US$, 1998—2001
Figure 4.34: Potential and implied confectionery value for products targeting key consumer groups, US$m, 2002
Figure 4.35: Average retail price per serving for confectionery products targeting key consumer groups, US$, 1998—200
Figure 4.36: Potential and implied dairy value for products targeting key consumer groups, US$m, 2002
Figure 4.37: Average retail price per serving for dairy products targeting key consumer groups, US$, 1998—2001
Figure 4.38: Potential and implied hot drinks value for products targeting key consumer groups, US$m, 2002
Figure 4.39: Average retail price per serving for hot drinks products targeting key consumer groups, US$, 1998—2001
Figure 4.40: Potential and implied cooking sauce value for products targeting key consumer groups, US$m, 2002
Figure 4.41: Average retail price per serving for cooking sauce products targeting key consumer groups, US$, 1998—2001
Figure 4.42: Potential and implied ready meals & pizza value for products targeting key consumer groups, US$m, 2002
Figure 4.43: Average retail price per serving for ready meals & pizza products targeting key consumer groups, US$, 1998—2001
Figure 4.44: Potential and implied snacks value for products targeting key consumer groups, US$m, 2002
Figure 4.45: Average retail price per serving for snacks products targeting key consumer groups, US$, 1998—2001
Figure 4.46: Potential and implied soft drinks value for products targeting key consumer groups, US$m, 2002
Figure 4.47: Average retail price per serving for soft drinks products targeting key consumer groups, US$, 1998—2001
Figure 4.48: Average household expenditure on food and drink (US$) by household size, 2002
Figure 4.49: Average household expenditure on food and drink (US$) by number of ‘economically active’ household members, 2002
Figure 4.50: Average household expenditure on food and drink (US$) by age of the head of the household, 2002
Figure 4.51: Average household expenditure on food and drink (US$) by occupational group of the head of the household, 2002
Figure 5.52: ‘Word of mouth’ promotion using influencer groups
Figure 5.53: Dell’s website enables mass-customisation
Figure 5.54: Example demand curve
Figure 5.55: Demand curve with multi-pricing strategy
Figure 6.56: Go-co bars
Figure 6.57: Go-co advertising in Ibiza
Figure 6.58: Live theatre cooking in colleges
Figure 6.59: Mecca Cola - “Don’t drink stupid, drink with commitment”
Figure 6.60: Innovative bakery product launches
Figure 6.61: Innovative cereals product launches
Figure 6.62: Innovative confectionery product launches
Figure 6.63: Innovative dairy product launches
Figure 6.64: Innovative dessert product launches
Figure 6.65: Innovative snacks product launches
Figure 6.66: Innovative soft drinks product launches
Figure 6.67: Innovative alcoholic drinks product launches
Figure 6.68: Innovative hot drinks product launches
Figure 7.69: What are the most effective marketing channels for targeting the individual consumer?
Figure 7.70: How can packaging be used to differentiate products to the needs of different consumers?
Figure 7.71: What impact does the need to target consumers as individuals have on pricing strategies?
Figure 7.72: In targeting the individual what elements of the traditional marketing mix need to be revised?
Figure 7.73: What are the most important criteria for segmenting consumers?
Figure 7.74: Please estimate the direct importance of the following consumer groups to the food and drinks industry as a whole, as well as the importance of each in influencing other types of consumer?
Figure 7.75: Which consumer groups are neglected by the food and drink industry and which receive too much industry attention?
Figure 7.76: Please estimate the ability of the following channels to cater to individual consumer needs?
Figure 7.77: What do you think are the most common nutritional factors that make some consumers avoid a product?
Figure 7.78: What are the most common ethical factors that make some consumers avoid a product?
List of Tables
Table 2.1: Dietary changes made by respondents during the last six months, 1996
Table 2.2: The elements that survey respondents believe determine food safety, 1998
Table 2.3: Prevalence of obesity (millions), 1990—2010
Table 2.4: Average household size, 1998—2002
Table 2.5: Women’s share of the labour force, 2000—2004e
Table 2.6: Average length of the working week, 1999
Table 2.7: Average household food and drinks expenditure broken down by income quintile group, 2002 (US$)
Table 2.8: Foreign and foreign-born population, 1998
Table 2.9: Breakdown of population by religion, 2002
Table 4.10: Average household expenditure on food and drink (US$) by household size, 2002
Table 4.11: Average household expenditure on food and drink (US$) by household composition, 2002
Table 4.12: Average household expenditure on food and drink (US$) by age of the head of the household, 2002
Table 4.13: Average household expenditure on food and drink (US$) by occupational group of thead of the household, 2002
Table 4.13: Average household expenditure on food and drink (US$) by occupational group of the head of the household, 2002
Table 4.14: Average household expenditure on food and drink (US$) by number of economically active persons, 2002