1 Drawing on proprietary research reports published during the preceding year, this two-volume publication provides a sector-by-sector analysis of 37 key markets, including consumer goods and services, financial services, the utilities, selected segments of the retail trade and target demographic markets. Information is provided on market size, trends, shares and segmentation within each product/services market.

Activity Holidays 1

DEFINITION............................................................................................................................... 1

Activity Holidays ........................................................................................................................ 1

Supplying Sectors ...................................................................................................................... 2

MARKET TRENDS...................................................................................................................... 2

MARKET SIZE ............................................................................................................................ 3

By Volume................................................................................................................................. 3

Table 1: The UK Activity Holiday Market by Sector by Volume

(million trips and %), 1998-2002 .............................................................................................. 3

By Value .................................................................................................................................... 4

Table 2: The UK Activity Holiday Market by Sector by Value

(£bn and %), 1998-2002............................................................................................................ 4

DISTRIBUTION.......................................................................................................................... 5

Table 3: Booking Characteristics for Domestic Holidays (million trips), 2002........................ 6

Advertising Agencies 7

DEFINITION............................................................................................................................... 7

Agency Job Functions................................................................................................................ 8

MARKET TRENDS.................................................................................................................... 10

MARKET SIZE .......................................................................................................................... 10

Table 4: Advertising Costs for Press and Television by Constant 1995

and Current Prices (1995=100), 1997-2001 ............................................................................ 11

Sector Expenditure .................................................................................................................. 12

Table 5: Media Expenditure by Channel (£000), Years Ending December 1998-2002 ........ 12

Table 6: Above-the-Line Advertising Expenditure on Media (£m),

Years Ending December 1998-2002........................................................................................ 13

Table 7: Top Ten Agencies by Media Expenditure (£m), 2002-2003 .................................... 14

Table 8: Direct Mail Percentage Volume Growth (million items, % and £m),

Years Ending December 1998-2002........................................................................................ 16

Table 9: Internet Advertising Expenditure (£m),

Years Ending December 1998-2002........................................................................................ 17

Table 10: Share of Advertising Expenditure by Medium (%),

Year Ending December 2002 .................................................................................................. 17

DISTRIBUTION........................................................................................................................ 18

Table 11: Distribution of Advertising Agencies in the UK by Region,

Combined Gross Income and Number of Agencies (£m), 2001 ............................................ 18

Alternative Healthcare 19

DEFINITION............................................................................................................................. 19

MARKET TRENDS.................................................................................................................... 20

MARKET SIZE .......................................................................................................................... 20

Table 12: The UK Market for Herbal and Homeopathic Remedies

and Aromatherapy Products by Sector by Value (£m at rsp), 1998-2002 ............................ 21

DISTRIBUTION..............................................................................................................................21

Baby Products 23

DEFINITION............................................................................................................................. 23

Baby Transport and Furniture ................................................................................................ 23

Baby Monitors, Safety and Feeding Equipment.................................................................... 23

Disposable Nappies ................................................................................................................. 23

MARKET TRENDS.................................................................................................................... 24

Demographic and Social Factors ............................................................................................ 24

The Role of Fashion................................................................................................................. 25

MARKET SIZE .......................................................................................................................... 25

Table 13: The UK Baby Products Market by Sector by Value (£m), 1998-2002.................... 26

DISTRIBUTION........................................................................................................................ 26

Call Centres 27

DEFINITION............................................................................................................................. 27

MARKET TRENDS.................................................................................................................... 27

MARKET SIZE .......................................................................................................................... 28

Number of Call/Contact Centres............................................................................................. 28

Table 14: Number of Call/Contact Centres in the UK, 1998-2003......................................... 28

Number of Workstations ........................................................................................................ 29

Table 15: Number of Workstations in UK Call Centres (000), 1998-2003............................. 29

Charity Funding 31

DEFINITION............................................................................................................................. 31

MARKET TRENDS.................................................................................................................... 31

MARKET SIZE .......................................................................................................................... 32

Table 16: Number of Main UK Registered Charities by Income Bracket

(number, % and £m), 2002 ..................................................................................................... 33

MARKET SHARE...................................................................................................................... 33

DISTRIBUTION........................................................................................................................ 34

The National Lottery Distribution Fund................................................................................. 34

Grant-Making Trusts ............................................................................................................... 35

Business ................................................................................................................................... 35

Television Appeals................................................................................................................... 36

Charity Shops ........................................................................................................................... 36

Childcare 37

DEFINITION............................................................................................................................. 37

Types of Childcare ................................................................................................................... 37

MARKET TRENDS.................................................................................................................... 38

The Child Population............................................................................................................... 38

Table 17: The UK Population Aged 0-9 Years Old

(000 and %), 1998, 2000-2003 ................................................................................................ 38

Working Mothers .................................................................................................................... 38

Table 18: Economic Activity Status of Women by Age of Youngest

Dependent Child (%), Autumn 2002...................................................................................... 39

Government Initiatives: The National Childcare Strategy .................................................... 39

The Consumer......................................................................................................................... 41

Employers and Childcare......................................................................................................... 41

Childcare Standards................................................................................................................. 42

MARKET SIZE .......................................................................................................................... 42

Table 19: The UK Childcare Market by Sector by Value (£m), 1998-2002............................ 43

Figure 1: The UK Childcare Market by Sector by Value (£m), 1998-2002 ............................ 43

Condiments and Sauces 45

DEFINITION............................................................................................................................. 45

Table Sauces............................................................................................................................ 45

Salad Accompaniments ........................................................................................................... 45

Pickles, Chutneys and Relishes................................................................................................ 45

Dish-Specific Sauces................................................................................................................. 45

Salt and Pepper ....................................................................................................................... 45

Vinegar.................................................................................................................................... 46

Mustard................................................................................................................................... 46

Marinades ............................................................................................................................... 46

MARKET TRENDS — KEY ISSUES .......................................................................................... 46

Extending Usage Occasions .................................................................................................... 46

Diversity Fuelling Growth ....................................................................................................... 47

Meal-Eating Habits.................................................................................................................. 48

Seasonal Influences ................................................................................................................. 48

Barbecues................................................................................................................................ 49

Growth of Prepacked Salads................................................................................................... 49

Own-Label Activity .................................................................................................................. 50

MARKET SIZE AND SEGMENTATION.................................................................................... 50

Table 20: The Condiments and Sauces Market by Value by Product Type

(£m at rsp), 1998-2002............................................................................................................. 51

DISTRIBUTION........................................................................................................................ 52

Table Sauces............................................................................................................................ 52

Table 21: Table Sauces Market Share by Retailer by Value (%),

Year Ending 31st October 2002.............................................................................................. 52

Salad Accompaniments ........................................................................................................... 52

Table 22: Salad Accompaniment Market Share by Retailer (%), 1999-2001 ....................... 53

Pickles, Chutneys and Relishes................................................................................................ 54

Table 23: Sweet and Sour Pickles Market Share by Value by Retailer

(%), Year Ending September 2002 ......................................................................................... 54

Dish-Specific Sauces................................................................................................................. 54

Table 24: Dish-Specific Sauces Market Share by Value by Retailer

(%), 2001 and 2002 ................................................................................................................ 55

Salt and Pepper ....................................................................................................................... 55

Vinegar.................................................................................................................................... 56

Table 25: Vinegar Sales Market Share by Individual Retailer

by Value and Volume (%), 2001............................................................................................. 56

Cooking and Eating 57

DEFINITION............................................................................................................................. 57

MARKET TRENDS.................................................................................................................... 57

Availability of Produce............................................................................................................ 57

Link Between Junk Food and Obesity.................................................................................... 57

Low Pay of Food Industry Workers ........................................................................................ 58

MARKET SIZE .......................................................................................................................... 58

Table 26: Consumer Expenditure at Current Prices on Food by Sector

by Value (£m and %), Second and Third Quarters 2002....................................................... 59

MARKET SHARE...................................................................................................................... 59

DISTRIBUTION........................................................................................................................ 60

Customer Relationship Management 61

DEFINITION............................................................................................................................. 61

MARKET TRENDS.................................................................................................................... 61

MARKET SIZE .......................................................................................................................... 61

Table 27: Global Revenues of the Top Four CRM Vendors ($m), 2001 and 2002 ................ 62

MARKET SHARE...................................................................................................................... 62

DISTRIBUTION........................................................................................................................ 62

Customer Services in Financial Organisations 63

DEFINITION............................................................................................................................. 63

MARKET TRENDS.................................................................................................................... 63

MARKET SIZE .......................................................................................................................... 64

Table 28: Private-Sector Deposits in UK Banks by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 64

Table 29: Deposits in UK Building Societies by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 65

Table 30: UK Long-Term Insurance Premium Income by Net Written Premiums

by Value (£m and index 1998=100), 1998-2002..................................................................... 65

Table 31: UK General Insurance Net Written Premiums by UK Risks

Net Written Premiums by Value (£m and index 1998=100), 1998-2002 .............................. 66

DISTRIBUTION........................................................................................................................ 66

Bank Branches ......................................................................................................................... 66

Building Society Branches ....................................................................................................... 66

ATMs ....................................................................................................................................... 67

Call Centres .............................................................................................................................. 67

Internet Sites........................................................................................................................... 67

Direct Insurance 69

DEFINITION............................................................................................................................. 69

MARKET TRENDS.................................................................................................................... 69

TOTAL GENERAL INSURANCE ............................................................................................... 72

Market Size............................................................................................................................. 72

Table 32: Total General Insurance Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 73

Figure 2: Total General Insurance Business by Gross Written Premium (£m), 1998-2002... 74

Table 33: General Insurance (Personal Lines) Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 75

Figure 3: General Insurance (Personal Lines) Business by Gross Written Premium

(£m), 1998-2002....................................................................................................................... 76

Market Share ........................................................................................................................... 76

Distribution............................................................................................................................. 77

MOTOR INSURANCE .............................................................................................................. 80

Market Size............................................................................................................................. 80

Table 34: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002 .............. 80

Figure 4: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002............... 81

Distribution............................................................................................................................. 82

Table 35: Personal Motor Insurance by Source of Business (%), 1998-2002 ........................ 83

HOUSE INSURANCE................................................................................................................ 85

Market Size............................................................................................................................. 85

Table 36: House Insurance by Gross Written Premium (£m), 1997-2001 ............................. 85

Figure 5: House Insurance by Gross Written Premium (£m), 1997-2001 .............................. 85

Distribution............................................................................................................................. 86

Table 37: Personal Household Insurance by Source of Business (%), 1998-2002................. 87

TRAVEL INSURANCE............................................................................................................... 88

Market Size............................................................................................................................. 88

Distribution............................................................................................................................. 88

PRIVATE MEDICAL INSURANCE ............................................................................................ 90

Market Size............................................................................................................................. 90

Table 38: Number of Individuals in the UK Covered by Private Medical Insurance

(million and %), 1971, 1990 and 1999-2002 .......................................................................... 90

Distribution............................................................................................................................. 92

PET INSURANCE...................................................................................................................... 93

Market Size............................................................................................................................. 93

Table 39: Pet Insurance by Gross Written Premium (£m), 1998-2002 .................................. 94

Figure 6: Pet Insurance by Gross Written Premium (£m), 1998-2002 ................................... 94

Distribution............................................................................................................................. 94

Direct Mortgages 95

DEFINITION..........................................................................>Diversity Fuelling Growth ....................................................................................................... 47

Meal-Eating Habits.................................................................................................................. 48

Seasonal Influences ................................................................................................................. 48

Barbecues................................................................................................................................ 49

Growth of Prepacked Salads................................................................................................... 49

Own-Label Activity .................................................................................................................. 50

MARKET SIZE AND SEGMENTATION.................................................................................... 50

Table 20: The Condiments and Sauces Market by Value by Product Type

(£m at rsp), 1998-2002............................................................................................................. 51

DISTRIBUTION........................................................................................................................ 52

Table Sauces............................................................................................................................ 52

Table 21: Table Sauces Market Share by Retailer by Value (%),

Year Ending 31st October 2002.............................................................................................. 52

Salad Accompaniments ........................................................................................................... 52

Table 22: Salad Accompaniment Market Share by Retailer (%), 1999-2001 ....................... 53

Pickles, Chutneys and Relishes................................................................................................ 54

Table 23: Sweet and Sour Pickles Market Share by Value by Retailer

(%), Year Ending September 2002 ......................................................................................... 54

Dish-Specific Sauces................................................................................................................. 54

Table 24: Dish-Specific Sauces Market Share by Value by Retailer

(%), 2001 and 2002 ................................................................................................................ 55

Salt and Pepper ....................................................................................................................... 55

Vinegar.................................................................................................................................... 56

Table 25: Vinegar Sales Market Share by Individual Retailer

by Value and Volume (%), 2001............................................................................................. 56

Cooking and Eating 57

DEFINITION............................................................................................................................. 57

MARKET TRENDS.................................................................................................................... 57

Availability of Produce............................................................................................................ 57

Link Between Junk Food and Obesity.................................................................................... 57

Low Pay of Food Industry Workers ........................................................................................ 58

MARKET SIZE .......................................................................................................................... 58

Table 26: Consumer Expenditure at Current Prices on Food by Sector

by Value (£m and %), Second and Third Quarters 2002....................................................... 59

MARKET SHARE...................................................................................................................... 59

DISTRIBUTION........................................................................................................................ 60

Customer Relationship Management 61

DEFINITION............................................................................................................................. 61

MARKET TRENDS.................................................................................................................... 61

MARKET SIZE .......................................................................................................................... 61

Table 27: Global Revenues of the Top Four CRM Vendors ($m), 2001 and 2002 ................ 62

MARKET SHARE...................................................................................................................... 62

DISTRIBUTION........................................................................................................................ 62

Customer Services in Financial Organisations 63

DEFINITION............................................................................................................................. 63

MARKET TRENDS.................................................................................................................... 63

MARKET SIZE .......................................................................................................................... 64

Table 28: Private-Sector Deposits in UK Banks by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 64

Table 29: Deposits in UK Building Societies by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 65

Table 30: UK Long-Term Insurance Premium Income by Net Written Premiums

by Value (£m and index 1998=100), 1998-2002..................................................................... 65

Table 31: UK General Insurance Net Written Premiums by UK Risks

Net Written Premiums by Value (£m and index 1998=100), 1998-2002 .............................. 66

DISTRIBUTION........................................................................................................................ 66

Bank Branches ......................................................................................................................... 66

Building Society Branches ....................................................................................................... 66

ATMs ....................................................................................................................................... 67

Call Centres .............................................................................................................................. 67

Internet Sites........................................................................................................................... 67

Direct Insurance 69

DEFINITION............................................................................................................................. 69

MARKET TRENDS.................................................................................................................... 69

TOTAL GENERAL INSURANCE ............................................................................................... 72

Market Size............................................................................................................................. 72

Table 32: Total General Insurance Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 73

Figure 2: Total General Insurance Business by Gross Written Premium (£m), 1998-2002... 74

Table 33: General Insurance (Personal Lines) Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 75

Figure 3: General Insurance (Personal Lines) Business by Gross Written Premium

(£m), 1998-2002....................................................................................................................... 76

Market Share ........................................................................................................................... 76

Distribution............................................................................................................................. 77

MOTOR INSURANCE .............................................................................................................. 80

Market Size............................................................................................................................. 80

Table 34: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002 .............. 80

Figure 4: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002............... 81

Distribution............................................................................................................................. 82

Table 35: Personal Motor Insurance by Source of Business (%), 1998-2002 ........................ 83

HOUSE INSURANCE................................................................................................................ 85

Market Size............................................................................................................................. 85

Table 36: House Insurance by Gross Written Premium (£m), 1997-2001 ............................. 85

Figure 5: House Insurance by Gross Written Premium (£m), 1997-2001 .............................. 85

Distribution............................................................................................................................. 86

Table 37: Personal Household Insurance by Source of Business (%), 1998-2002................. 87

TRAVEL INSURANCE............................................................................................................... 88

Market Size............................................................................................................................. 88

Distribution............................................................................................................................. 88

PRIVATE MEDICAL INSURANCE ............................................................................................ 90

Market Size............................................................................................................................. 90

Table 38: Number of Individuals in the UK Covered by Private Medical Insurance

(million and %), 1971, 1990 and 1999-2002 .......................................................................... 90

Distribution............................................................................................................................. 92

PET INSURANCE...................................................................................................................... 93

Market Size............................................................................................................................. 93

Table 39: Pet Insurance by Gross Written Premium (£m), 1998-2002 .................................. 94

Figure 6: Pet Insurance by Gross Written Premium (£m), 1998-2002 ................................... 94

Distribution............................................................................................................................. 94

Direct Mortgages 95

DEFINITION............................................................................................................................. 95

MARKET TRENDS.................................................................................................................... 95

MARKET SIZE .......................................................................................................................... 97

Total Industry Value and Growth........................................................................................... 97

Table 40: The UK Mortgage Market by Gross Lending (£m),

Second Quarter 2000-First Quarter 2003 ............................................................................... 97

Table 41: The UK Mortgage Market by Balances Outstanding and Approvals

(£m), 1997-2002....................................................................................................................... 98

Market Segmentation............................................................................................................. 98

Table 42: Mortgage Lending by Repayment Method by Type of Advance

(% of loans), First Quarter 2003 ............................................................................................. 99

MARKET SHARE.................................................................................................................... 100

Branch Sales ........................................................................................................................... 100

Table 43: Percentage of Mortgages Arranged Through Branches, 1996-2002 ................. 100

Telephone Sales..................................................................................................................... 100

Table 44: Percentage of Loans Arranged Over the Telephone, 1997-2003....................... 101

Internet Sales ......................................................................................................................... 101

Table 45: Percentage of Loans Arranged Through the Internet, 1997-2003..................... 101

DISTRIBUTION...................................................................................................................... 102

Branch Sales ........................................................................................................................... 102

Table 46: UK Bank Branch Networks (number of branches), 1998-2001 ........................... 103

Telephone Sales..................................................................................................................... 104

Table 47: Number of Telephone-Accessible Accounts Held at UK Clearing Banks

(number and %), 1996-2002................................................................................................. 104

Internet Sales ......................................................................................................................... 104

European Long-Term Insurance 105

DEFINITION........................................................................................................................... 105

MARKET TRENDS.................................................................................................................. 105

MARKET SIZE ........................................................................................................................ 106

Table 48: Total Direct Life Premium Income of CEA Members

(€m and index 1998=100), 1998-2002.................................................................................. 106

MARKET SHARE.................................................................................................................... 107

Table 49: Market Share Taken by Life and Non-Life Premiums

Among All CEA Members (%), 1998-2002 ........................................................................... 107

DISTRIBUTION...................................................................................................................... 107

FSM to Start-Up Businesses and the Self-Employed 109

DEFINITION........................................................................................................................... 109

Financial Services ................................................................................................................... 109

The Self-Employed................................................................................................................. 109

Small Businesses..................................................................................................................... 109

Table 50: European Commission Definitions of Business Categories

by Number of Staff, Turnover and Balance Sheet Total (€m), 2003.................................. 110

MARKET TRENDS.................................................................................................................. 110

MARKET SIZE ..............................................................................................................................111

MARKET SHARE..........................................................................................................................111

Table 51: Average Self-Employment Income in the UK by Industry

(000, £m and £), 2000/2001................................................................................................... 112

DISTRIBUTION............................................................................................................................113

FSM to the Retired and Elderly 115

DEFINITION........................................................................................................................... 115

MARKET TRENDS.................................................................................................................. 115

Age Structure of The UK....................................................................................................... 115

Table 52: UK Population by Age Group (million), 1961-2026............................................. 116

Table 53: UK Life Expectancy at 65 Years of Age by Sex, 1983-2018................................. 117

Gender .................................................................................................................................. 118

Table 54: UK Population by Age and Gender (million), 2001............................................. 118

Houses ................................................................................................................................... 119

Table 55: Composition of Households in Great Britain by Number

of People and Number of Households (%, million households

and number of people), 1971-2002...................................................................................... 119

Table 56: Single-Person Households in England by Age of Householder

(%), 1971-2021....................................................................................................................... 120

Table 57: Households in the UK by Type of Tenure (%), 2000/2001 ................................. 121

Spending Power .................................................................................................................... 121

Table 58: Median Individual Net Income in Great Britain by Family Type

and Sex (£ per week), 2000/2001.......................................................................................... 122

Table 59: Median Net Income of Pensioner Units in the UK (£ per week),

1999/2000-2001/2002............................................................................................................. 123

Table 60: Household Savings by Household Type and Amount

in Great Britain (% and 000 households), 1999/2000.......................................................... 124

Table 61: Average and Total UK Weekly Household Expenditure

on Selected Goods and Services (£ and £m), 2001/2002 .................................................... 125

Table 62: Average Weekly Household Spending in the UK by Age (£), 2001/2002 .......... 126

The Internet and ‘Silver Surfers’ ........................................................................................... 126

Table 63: Percentage of UK Households with Access to the Internet, 2000-2003............. 127

Table 64: Adults in Great Britain Who Had Used the Internet in the 3 Months

Prior to Interview by Sex and Age (%), 2000-2003 ............................................................. 128

MARKET DYNAMICS AND SEGMENTATION ..................................................................... 129

UK Insurance Industry ........................................................................................................... 129

DISTRIBUTION...................................................................................................................... 130

Distribution Channels............................................................................................................ 130

Table 65: New Individual Business in the Insurance Industry by Channel

of Distribution (% based on APE and £m), 1998-2003........................................................ 130

Independent Financial Advisers............................................................................................ 131

Direct Sales Forces ................................................................................................................. 131

Direct Marketing ................................................................................................................... 131

Diversity and Focus................................................................................................................ 132

’Bancassurance’ and the ’one-stop shop’............................................................................. 132

New Media............................................................................................................................ 133

Competitive Structure........................................................................................................... 133

Table 66: Largest Ten General UK Insurance Groups Based on UK Premiums

(£m), 2002 .............................................................................................................................. 134

Table 67: Largest Ten Long-Term UK Insurance Groups Based on UK Premiums

(£m), 2002 .............................................................................................................................. 135

Forecourt Retailing 137

DEFINITION........................................................................................................................... 137

Fuel Retailing........................................................................................................................ 137

Non-Fuel Retailing................................................................................................................. 137

MARKET DYNAMICS AND SEGMENTATION.........................................................................137

Total Market Size by Value................................................................................................... 137

Table 68: The UK Forecourt Retailing Market by Type of Sale by Value

(£bn at rsp, index 1998=100 and %), 1998-2002 ................................................................. 138

DISTRIBUTION............................................................................................................................138

Key Note Research 139

The Key Note Range of Reports 141

Independent Financial Advisers 1

DEFINITION..................................................................................................................>Diversity Fuelling Growth ....................................................................................................... 47

Meal-Eating Habits.................................................................................................................. 48

Seasonal Influences ................................................................................................................. 48

Barbecues................................................................................................................................ 49

Growth of Prepacked Salads................................................................................................... 49

Own-Label Activity .................................................................................................................. 50

MARKET SIZE AND SEGMENTATION.................................................................................... 50

Table 20: The Condiments and Sauces Market by Value by Product Type

(£m at rsp), 1998-2002............................................................................................................. 51

DISTRIBUTION........................................................................................................................ 52

Table Sauces............................................................................................................................ 52

Table 21: Table Sauces Market Share by Retailer by Value (%),

Year Ending 31st October 2002.............................................................................................. 52

Salad Accompaniments ........................................................................................................... 52

Table 22: Salad Accompaniment Market Share by Retailer (%), 1999-2001 ....................... 53

Pickles, Chutneys and Relishes................................................................................................ 54

Table 23: Sweet and Sour Pickles Market Share by Value by Retailer

(%), Year Ending September 2002 ......................................................................................... 54

Dish-Specific Sauces................................................................................................................. 54

Table 24: Dish-Specific Sauces Market Share by Value by Retailer

(%), 2001 and 2002 ................................................................................................................ 55

Salt and Pepper ....................................................................................................................... 55

Vinegar.................................................................................................................................... 56

Table 25: Vinegar Sales Market Share by Individual Retailer

by Value and Volume (%), 2001............................................................................................. 56

Cooking and Eating 57

DEFINITION............................................................................................................................. 57

MARKET TRENDS.................................................................................................................... 57

Availability of Produce............................................................................................................ 57

Link Between Junk Food and Obesity.................................................................................... 57

Low Pay of Food Industry Workers ........................................................................................ 58

MARKET SIZE .......................................................................................................................... 58

Table 26: Consumer Expenditure at Current Prices on Food by Sector

by Value (£m and %), Second and Third Quarters 2002....................................................... 59

MARKET SHARE...................................................................................................................... 59

DISTRIBUTION........................................................................................................................ 60

Customer Relationship Management 61

DEFINITION............................................................................................................................. 61

MARKET TRENDS.................................................................................................................... 61

MARKET SIZE .......................................................................................................................... 61

Table 27: Global Revenues of the Top Four CRM Vendors ($m), 2001 and 2002 ................ 62

MARKET SHARE...................................................................................................................... 62

DISTRIBUTION........................................................................................................................ 62

Customer Services in Financial Organisations 63

DEFINITION............................................................................................................................. 63

MARKET TRENDS.................................................................................................................... 63

MARKET SIZE .......................................................................................................................... 64

Table 28: Private-Sector Deposits in UK Banks by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 64

Table 29: Deposits in UK Building Societies by Value

(£m and index 1998=100), 1998-2002 .................................................................................... 65

Table 30: UK Long-Term Insurance Premium Income by Net Written Premiums

by Value (£m and index 1998=100), 1998-2002..................................................................... 65

Table 31: UK General Insurance Net Written Premiums by UK Risks

Net Written Premiums by Value (£m and index 1998=100), 1998-2002 .............................. 66

DISTRIBUTION........................................................................................................................ 66

Bank Branches ......................................................................................................................... 66

Building Society Branches ....................................................................................................... 66

ATMs ....................................................................................................................................... 67

Call Centres .............................................................................................................................. 67

Internet Sites........................................................................................................................... 67

Direct Insurance 69

DEFINITION............................................................................................................................. 69

MARKET TRENDS.................................................................................................................... 69

TOTAL GENERAL INSURANCE ............................................................................................... 72

Market Size............................................................................................................................. 72

Table 32: Total General Insurance Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 73

Figure 2: Total General Insurance Business by Gross Written Premium (£m), 1998-2002... 74

Table 33: General Insurance (Personal Lines) Business by Gross Written Premium

and Source of Business (£m and %), 1998-2002 .................................................................... 75

Figure 3: General Insurance (Personal Lines) Business by Gross Written Premium

(£m), 1998-2002....................................................................................................................... 76

Market Share ........................................................................................................................... 76

Distribution............................................................................................................................. 77

MOTOR INSURANCE .............................................................................................................. 80

Market Size............................................................................................................................. 80

Table 34: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002 .............. 80

Figure 4: Personal Motor Insurance by Gross Written Premium (£m), 1998-2002............... 81

Distribution............................................................................................................................. 82

Table 35: Personal Motor Insurance by Source of Business (%), 1998-2002 ........................ 83

HOUSE INSURANCE................................................................................................................ 85

Market Size............................................................................................................................. 85

Table 36: House Insurance by Gross Written Premium (£m), 1997-2001 ............................. 85

Figure 5: House Insurance by Gross Written Premium (£m), 1997-2001 .............................. 85

Distribution............................................................................................................................. 86

Table 37: Personal Household Insurance by Source of Business (%), 1998-2002................. 87

TRAVEL INSURANCE............................................................................................................... 88

Market Size............................................................................................................................. 88

Distribution............................................................................................................................. 88

PRIVATE MEDICAL INSURANCE ............................................................................................ 90

Market Size............................................................................................................................. 90

Table 38: Number of Individuals in the UK Covered by Private Medical Insurance

(million and %), 1971, 1990 and 1999-2002 .......................................................................... 90

Distribution............................................................................................................................. 92

PET INSURANCE...................................................................................................................... 93

Market Size............................................................................................................................. 93

Table 39: Pet Insurance by Gross Written Premium (£m), 1998-2002 .................................. 94

Figure 6: Pet Insurance by Gross Written Premium (£m), 1998-2002 ................................... 94

Distribution............................................................................................................................. 94

Direct Mortgages 95

DEFINITION............................................................................................................................. 95

MARKET TRENDS.................................................................................................................... 95

MARKET SIZE .......................................................................................................................... 97

Total Industry Value and Growth........................................................................................... 97

Table 40: The UK Mortgage Market by Gross Lending (£m),

Second Quarter 2000-First Quarter 2003 ............................................................................... 97

Table 41: The UK Mortgage Market by Balances Outstanding and Approvals

(£m), 1997-2002....................................................................................................................... 98

Market Segmentation............................................................................................................. 98

Table 42: Mortgage Lending by Repayment Method by Type of Advance

(% of loans), First Quarter 2003 ............................................................................................. 99

MARKET SHARE.................................................................................................................... 100

Branch Sales ........................................................................................................................... 100

Table 43: Percentage of Mortgages Arranged Through Branches, 1996-2002 ................. 100

Telephone Sales..................................................................................................................... 100

Table 44: Percentage of Loans Arranged Over the Telephone, 1997-2003....................... 101

Internet Sales ......................................................................................................................... 101

Table 45: Percentage of Loans Arranged Through the Internet, 1997-2003..................... 101

DISTRIBUTION...................................................................................................................... 102

Branch Sales ........................................................................................................................... 102

Table 46: UK Bank Branch Networks (number of branches), 1998-2001 ........................... 103

Telephone Sales..................................................................................................................... 104

Table 47: Number of Telephone-Accessible Accounts Held at UK Clearing Banks

(number and %), 1996-2002................................................................................................. 104

Internet Sales ......................................................................................................................... 104

European Long-Term Insurance 105

DEFINITION........................................................................................................................... 105

MARKET TRENDS.................................................................................................................. 105

MARKET SIZE ........................................................................................................................ 106

Table 48: Total Direct Life Premium Income of CEA Members

(€m and index 1998=100), 1998-2002.................................................................................. 106

MARKET SHARE.................................................................................................................... 107

Table 49: Market Share Taken by Life and Non-Life Premiums

Among All CEA Members (%), 1998-2002 ........................................................................... 107

DISTRIBUTION...................................................................................................................... 107

FSM to Start-Up Businesses and the Self-Employed 109

DEFINITION........................................................................................................................... 109

Financial Services ................................................................................................................... 109

The Self-Employed................................................................................................................. 109

Small Businesses..................................................................................................................... 109

Table 50: European Commission Definitions of Business Categories

by Number of Staff, Turnover and Balance Sheet Total (€m), 2003.................................. 110

MARKET TRENDS.................................................................................................................. 110

MARKET SIZE ..............................................................................................................................111

MARKET SHARE..........................................................................................................................111

Table 51: Average Self-Employment Income in the UK by Industry

(000, £m and £), 2000/2001................................................................................................... 112

DISTRIBUTION............................................................................................................................113

FSM to the Retired and Elderly 115

DEFINITION........................................................................................................................... 115

MARKET TRENDS.................................................................................................................. 115

Age Structure of The UK....................................................................................................... 115

Table 52: UK Population by Age Group (million), 1961-2026............................................. 116

Table 53: UK Life Expectancy at 65 Years of Age by Sex, 1983-2018................................. 117

Gender .................................................................................................................................. 118

Table 54: UK Population by Age and Gender (million), 2001............................................. 118

Houses ................................................................................................................................... 119

Table 55: Composition of Households in Great Britain by Number

of People and Number of Households (%, million households

and number of people), 1971-2002...................................................................................... 119

Table 56: Single-Person Households in England by Age of Householder

(%), 1971-2021....................................................................................................................... 120

Table 57: Households in the UK by Type of Tenure (%), 2000/2001 ................................. 121

Spending Power .................................................................................................................... 121

Table 58: Median Individual Net Income in Great Britain by Family Type

and Sex (£ per week), 2000/2001.......................................................................................... 122

Table 59: Median Net Income of Pensioner Units in the UK (£ per week),

1999/2000-2001/2002............................................................................................................. 123

Table 60: Household Savings by Household Type and Amount

in Great Britain (% and 000 households), 1999/2000.......................................................... 124

Table 61: Average and Total UK Weekly Household Expenditure

on Selected Goods and Services (£ and £m), 2001/2002 .................................................... 125

Table 62: Average Weekly Household Spending in the UK by Age (£), 2001/2002 .......... 126

The Internet and ‘Silver Surfers’ ........................................................................................... 126

Table 63: Percentage of UK Households with Access to the Internet, 2000-2003............. 127

Table 64: Adults in Great Britain Who Had Used the Internet in the 3 Months

Prior to Interview by Sex and Age (%), 2000-2003 ............................................................. 128

MARKET DYNAMICS AND SEGMENTATION ..................................................................... 129

UK Insurance Industry ........................................................................................................... 129

DISTRIBUTION...................................................................................................................... 130

Distribution Channels............................................................................................................ 130

Table 65: New Individual Business in the Insurance Industry by Channel

of Distribution (% based on APE and £m), 1998-2003........................................................ 130

Independent Financial Advisers............................................................................................ 131

Direct Sales Forces ................................................................................................................. 131

Direct Marketing ................................................................................................................... 131

Diversity and Focus................................................................................................................ 132

’Bancassurance’ and the ’one-stop shop’............................................................................. 132

New Media............................................................................................................................ 133

Competitive Structure........................................................................................................... 133

Table 66: Largest Ten General UK Insurance Groups Based on UK Premiums

(£m), 2002 .............................................................................................................................. 134

Table 67: Largest Ten Long-Term UK Insurance Groups Based on UK Premiums

(£m), 2002 .............................................................................................................................. 135

Forecourt Retailing 137

DEFINITION........................................................................................................................... 137

Fuel Retailing........................................................................................................................ 137

Non-Fuel Retailing................................................................................................................. 137

MARKET DYNAMICS AND SEGMENTATION.........................................................................137

Total Market Size by Value................................................................................................... 137

Table 68: The UK Forecourt Retailing Market by Type of Sale by Value

(£bn at rsp, index 1998=100 and %), 1998-2002 ................................................................. 138

DISTRIBUTION............................................................................................................................138

Key Note Research 139

The Key Note Range of Reports 141

Independent Financial Advisers 1

DEFINITION............................................................................................................................... 1

MARKET SIZE ............................................................................................................................ 1

Number of IFAs.......................................................................................................................... 1

MARKET SHARE........................................................................................................................ 1

Table 69: Independent Financial Advisers’ Share of New Business Measured

by APE by Product Type (%), 1998-First Quarter of 2002 ....................................................... 2

DISTRIBUTION.......................................................................................................................... 3

Top Ten IFAs .............................................................................................................................. 3

Table 70: The Top Ten Independent Financial Advisers by Turnover

and Size of Salesforce (£m), 2002............................................................................................. 3

Women...................................................................................................................................... 3

Regional Variations ................................................................................................................... 3

Low-Fat & Low-Sugar Foods 5

DEFINITION............................................................................................................................... 5

MARKET TRENDS...................................................................................................................... 5

MARKET SIZE ............................................................................................................................ 6

Table 71: The Low-Fat and Low-Sugar Foods Market by Sector by Value

(£m), 1998-2002......................................................................................................................... 7

MARKET SHARE.............................................................................................................................8

DISTRIBUTION................................................................................................................................8

Marketing in the Digital Age 9

DEFINITION............................................................................................................................... 9

MARKET TRENDS...................................................................................................................... 9

MARKET SIZE .......................................................................................................................... 10

Table 72: Actual and Planned Marketing Budget Allocations by Category

(% of marketing expenditure), 2001-2003 ............................................................................ 11

Segmentation .......................................................................................................................... 12

Table 73: Share of Multichannel TV Market by Type of Platform

(% of households), Q1 2003 ................................................................................................... 13

Marketing to Children 4-11 15

DEFINITION............................................................................................................................. 15

TOYS AND GAMES ................................................................................................................. 15

Market Size............................................................................................................................. 15

Table 74: The UK Toys and Games Market by Sector by Value (£m at rsp), 1998-2002 ...... 15

Figure 7: The UK Toys and Games Market by Value (£m at rsp), 1998-2002 ....................... 16

Market Share ........................................................................................................................... 16

Table 75: The UK Traditional Toys and Games Market by Sector

by Market Share (%), 2002 ..................................................................................................... 17

Figure 8: The UK Traditional Toys and Games Market by Sector

by Market Share (%), 2002 ..................................................................................................... 18

SNACK FOODS ..............................................................................................................................18

Market Size and Share ............................................................................................................ 18

Table 76: The UK Snack Foods Market by Value (£m at rsp), 1998-2002 ............................. 19

Figure 9: The UK Snack Foods Market by Value (£m at rsp), 1998-2002.............................. 19

Table 77: The UK Snack Foods Market by Sector by Value

(£m at rsp and %), 1998 and 2002 ......................................................................................... 20

Figure 10: The UK Snack Foods Market by Sector by Market Share (%), 2002 ................... 21

CONFECTIONERY.........................................................................................................................21

Market Size and Share ............................................................................................................ 21

Table 78: The UK Confectionery Market by Sector by Value

(£bn at rsp), 1998-2002 ........................................................................................................... 22

Figure 11: The UK Confectionery Market by Sector by Market Share (%), 2002 ................ 22

Chocolate Confectionery............................................................................................................... 23

Table 79: The UK Chocolate Confectionery Market by Sector

by Market Share (%), 2002 ..................................................................................................... 23

Figure 12: The UK Chocolate Confectionery Market by Sector

by Market Share (%), 2002 ..................................................................................................... 24

Sugar Confectionery..................................................................................................................... 24

Table 80: The UK Sugar Confectionery Market by Sector

by Market Share (%), 2002 ..................................................................................................... 25

Men’s Toiletries & Fragrances 27

DEFINITION............................................................................................................................. 27

Toiletries ................................................................................................................................. 27

Fragrances............................................................................................................................... 27

MARKET TRENDS.................................................................................................................... 27

Demographics......................................................................................................................... 27

Table 81: The UK Male Population by Age (000), 1998-2003 .............................................. 28

Image-Conscious Men ............................................................................................................. 28

A Complicated Market ............................................................................................................ 28

MARKET SIZE .......................................................................................................................... 29

Table 82: The Total UK Men’s Toiletries and Fragrances Market by Value

at Current Prices (£m at rsp and index 1998=100), 1998-2002 ............................................. 29

DISTRIBUTION..............................................................................................................................29

Nutraceuticals 31

DEFINITION............................................................................................................................. 31

MARKET TRENDS.................................................................................................................... 31

MARKET SIZE .......................................................................................................................... 32

The Total Market..................................................................................................................... 32

Table 83: The UK Nutraceuticals Market by Sector by Value (£m), 1998-2002.................... 32

Functional Foods ..................................................................................................................... 32

Table 84: The UK Functional Foods Market by Sector by Value (£m), 1998-2002 ............... 33

Vitamins, Minerals and Supplements..................................................................................... 33

Table 85: The UK Vitamins, Minerals and Supplements Market by Sector

by Value (£m), 1998-2002 ....................................................................................................... 34

DISTRIBUTION........................................................................................................................ 34

Organic Food 35

DEFINITION............................................................................................................................. 35

Genetically-Modified Crops ..................................................................................................... 35

MARKET TRENDS.................................................................................................................... 36

General Issues Driving or Affecting The Market ................................................................... 36

MARKET SIZE .......................................................................................................................... 39

Total Market ............................................................................................................................ 39

By Sector ................................................................................................................................. 40

Table 86: The UK Organic Foods Market by Sector by Value and Market Share

(£m at rsp and %), Years Ending April 2000-2003 ................................................................ 41

DISTRIBUTION........................................................................................................................ 50

Retail Sales ............................................................................................................................... 50

Table 87: UK Organic Foods Retail Sales by Type of Outlet by Value

and Market Share (£m at rsp and %), Years Ending April 2001-2003 ................................. 51

Table 88: Market Share of Organic Foods Sales by Multiple

(% of value), Year Ending September 2003 ......................................................................... 52

Table 89: Number of Organic Products in Store by Multiple, 2003...................................... 53

Personal Banking 55

DEFINITION............................................................................................................................. 55

MARKET TRENDS.................................................................................................................... 55

MARKET SIZE ..................>Diversity Fuelling Growth ....................................................................................................... 47

Meal-Eating Habits.................................................................................................................. 48

Seasonal Influences ................................................................................................................. 48

Barbecues................................................................................................................................ 49

Growth of Prepacked Salads................................................................................................... 49

Own-Label Activity .................................................................................................................. 50

MARKET SIZE AND SEGMENTATION.................................................................................... 50

Table 20: The Condiments and Sauces Market by Value by Product Type

(£m at rsp), 1998-2002............................................................................................................. 51

DISTRIBUTION........................................................................................................................ 52

Table Sauces............................................................................................................................ 52

Table 21: Table Sauces Market Share by Retailer by Value (%),

Year Ending 31st October 2002.............................................................................................. 52

Salad Accompaniments ........................................................................................................... 52

Table 22: Salad Accompaniment Market Share by Retailer (%), 1999-2001 ....................... 53

Pickles, Chutneys and Relishes................................................................................................ 54

Table 23: Sweet and Sour Pickles Market Share by Value by Retailer

(%), Year Ending September 2002 ......................................................................................... 54

Dish-Specific Sauces................................................................................................................. 54

Table 24: Dish-Specific Sauces Market Share by Value by Retailer

(%), 2001 and 2002 ................................................................................................................ 55

Salt and Pepper ....................................................................................................................... 55

Vinegar.................................................................................................................................... 56

Table 25: Vinegar Sales Market Share by Individual Retailer

by Value and Volume (%), 2001............................................................................................. 56

Cooking and Eating 57

DEFINITION............................................................................................................................. 57

MARKET TRENDS.................................................................................................................... 57

Availability of Produce............................................................................................................ 57

Link Between Junk Food and Obesity.................................................................................... 57

Low Pay of Food Industry Workers ........................................................................................ 58

MARKET SIZE .......................................................................................................................... 58

Table 26: Consumer Expenditure at Current Prices on Food by Sector

by Value (£m and %), Second and Third Quarters 2002....................................................... 59

MARKET SHARE...................................................................................................................... 59

DISTRIBUTION........................................................................................................................ 60

Customer Relationship Management 61

DEFINITION............................................................................................................................. 61

MARKET TRENDS.................................................................................................................... 61

MARKET SIZE .......................................................................................................................... 61

Table 27: Global Revenues of the Top Four CRM Vendors ($m), 2001 and 2002 ................ 62

MARKET SHARE...................................................................................................................... 62

DISTRIBUTION........................................................................................................................ 62

Customer Services in Financial Organisations 63

DEFINITION............................