Market reports, business information and market research from Midnight Croquet. MAPS ABC1 Consumer

About market research company Midnight Croquet and our market report services

Read about how Key Note create their market reports

MP93464

MAPS : ABC1 Consumer: May 2004

Our price £799 plus VAT

CLICK

TO BUY

This report covers: ABC1 Consumer,

companies and brand names covered include: Burberry Ltd, John Lewis Partnership Plc, Marks And Spencer Plc, J Sainsbury Plc, Tesco Plc

BRIEF DESCRIPTION

Following the analysis of the breakdown of the UK population and of household expenditure by socio-economic group, this report focuses on four key consumer goods/services sectors - food, the home, clothing, and leisure and travel - and analyses each in terms of the market background, consumer trends, and marketing and supplier activity. It presents both an international perspective on the sector, and an analysis of political, economic, social and technological factors impacting it (PEST analysis). It considers consumer dynamics affecting the market, presenting the results of original research into ABC1 consumers' purchasing patterns and attitudes towards finances and spending. It profiles selected retailers of importance to this consumer group and considers prospects for future expenditure by ABC1 consumers in these sectors.

EXECUTIVE SUMMARY

Over the past 5 years, there has been a steady increase in the proportion of adults who fall into the ABC1 socio-economic group. In 2003, 53.3% of adults were classified as such, compared with 48.5% in 1999.

Since 1999, ABC1 consumers have had a strong influence on many of the trends within the food market and their greater affluence means that they are more able than most to afford premium food products. These consumers might be more willing to pay higher prices for food for a number of reasons, including: an interest in new and unusual foods; a demand for convenience products, which is generated by busy lifestyles; and a greater awareness of health issues and ethical concerns relating to food. In addition, online shopping has become increasingly popular and this is another area in which ABC1 consumers have been the driving force; at least partly because they are more likely than other socio-economic groups to have Internet access at home.

Key Note's research shows that ABC1s are more likely to buy food products from retailers' premium own-label ranges than from the economy ranges. However, a substantial number of consumers — many of whom are just as likely to be in the AB as in the C1 social group — purchase cheaper items.

At the top end of the clothing market, there are signs of a backlash against conspicuous affluence and a move towards the middle market is evident; a number of designer labels have now introduced budget ranges. This trend is echoed by a converging trend at the budget end of the market, with high-street stores and supermarkets introducing more upmarket ranges.

Almost nine out of ten ABs and nearly eight in ten C1s are homeowners and, as such, are particularly important to the market for home-related products, which includes furniture, furnishings and homeware.

Consumers in the ABC1 group are at the forefront of the move towards independent travel and Key Note's original research shows that they are nearly twice as likely as C2DEs to book both accommodation and travel themselves.

In addition, findings from Key Note's research indicate that, over the past 2 years (to March 2004), ABC1 consumers have not suffered particularly from financial problems. In fact, they are nearly twice as likely to claim that their financial situation is better now compared with 2 years ago, than to say it is worse. ABC1 consumers are also highly unlikely to express fears relating to the prospect of a fall in house prices.

TABLE OF CONTENTS

Executive Summary

1. Introduction

overview

Definitions

The Social Grade System

National Statistics, Socio-Economic Classification

2. Strategic Overview

SOCIO-ECONOMIC BACKGROUND

Table 1: The UK Adult Population by Socio-Economic Group (% of adults), 1999-2003

Figure 1: The UK Adult Population by Socio-Economic Group (% of adults), 1999-2003

Table 2: Profile of ABC1 Adults by Socio-Economic Group (% of respondents), 2004

Household Tenure

Table 3: Household Tenure (% of respondents), 2004

Figure 2: Household Tenure (% of respondents), 2004

Car Ownership

Table 4: Car Ownership (% of respondents), 2003

Figure 3: Car Ownership (% of respondents), 2003

Internet Access and Home Shopping

Table 5: Households with PC and Internet Access at Home (%), 2002 and 2003

Table 6: Consumer Penetration of Home-Shopping Activities (% of respondents), 2003

Figure 4: Consumer Penetration of Home-Shopping Activities (% of respondents), 2003

HOUSEHOLD EXPENDITURE

Table 7: Average Weekly Household Expenditure by Socio-Economic Classification of Household Reference Person† (£), 2002/2003

Table 8: Average Weekly Household Expenditure by Socio-Economic Classification of Household Reference Person† (%), 2002/2003

3. Food

BACKGROUND

CONSUMER TRENDS

Influences on Eating Habits

Table 9: Factors Influencing Eating Habits by Socio-Economic Group (% of respondents), 2003

Figure 5: Factors Influencing Eating Habits by Socio-Economic Group (% of respondents), 2003

Organic Foods

Table 10: Attitudes and Purchasing Habits in Organic Foods by Socio-Economic Group (% of respondents), 2003

Own-Label Foods

Table 11: Attitudes Towards Own-Label Products by Socio-Economic Group (% of respondents), 2003

MARKETING AND SUPPLIER ACTIVITY

Company Activity

Marks & Spencer

Safeway

Somerfield

Sainsbury's

Tesco

Waitrose

Advertising Expenditure

Table 12: Main Media Advertising Expenditure on Selected Supermarket and Grocery Chains (£000), Years Ending December 2002 and 2003

Table 13: Main Media Advertising Expenditure on Selected Own-Label Ranges by Supermarket and Grocery Chains (£000), Year Ending December 2003

4. Home

BACKGROUND

CONSUMER TRENDS

Table 14: Penetration of Selected DIY Activities by Socio-Economic Group (% of respondents), 2004

Table 15: Penetration of Selected DIY Activities by Socio-Economic Group (% of ABC1 adults), 2001 and 2004

MARKETING AND SUPPLIER ACTIVITY

Company Activity

Marks & Spencer

Maytag

Other Activity

5. Clothes

BACKGROUND

CONSUMER TRENDS

Table 16: Penetration of Selected Clothing and Footwear Brands by Socio-Economic Group (% of respondents), 2003

Figure 6: Penetration of Selected Clothing and Footwear Brands by Socio-Economic Group (% of respondents), 2003

Table 17: Penetration of Selected Clothing and Footwear Brands by Socio-Economic Group (% of ABC1 adults), 2001 and 2003

MARKETING AND SUPPLIER ACTIVITY

Company Activity

Marks & Spencer

Tesco

ASDA

Clarks

Other Activity

Advertising Expenditure

Table 18: Main Media Advertising Expenditure on Selected Unisex, Women's and Men's Fashion (£000), Year Ending December 2003

6. Leisure and Travel

BACKGROUND

CONSUMER TRENDS

Leisure Activities

Table 19: Penetration of Leisure Activities by Socio-Economic Group (% of respondents), 2003

Table 20: The Most Popular Evening and Weekend Leisure Activities by Socio-Economic Group (% of respondents), 2003

Holidays

Table 21: Factors Influencing Holiday Choices by Socio-Economic Group (% of respondents), 2003

Figure 7: Factors Influencing Holiday Choices by Socio-Economic Group (% of respondents), 2003

MARKETING AND SUPPLIER ACTIVITY

Media

Travel

Airlines

Cruises

Coaches

Other Activities

7. An International Perspective

luxury goods

Gucci and LMVH

8. PEST Analysis

POLITICAL FACTORS

Council Tax

Legal Aid

Education

Childcare

ECONOMIC FACTORS

SOCIAL FACTORS

TECHNOLOGICAL FACTORS

9. Consumer Dynamics

research summary

Table 22: Summary of Attitudes Towards Finance and Expenditure by Socio-Economic Group (% of respondents), 2004

FINANCIAL SITUATION

Table 23: Comparison of Financial Situation (% of respondents), 2004

FOOD

Table 24: Purchasing of Supermarkets' Own-Brand Luxury and Economy Ranges (% of respondents), 2004

HOME

Table 25: Habits and Attitudes in Home Decorating (% of respondents), 2004

Table 26: Concerns Relating to Falling House Prices (% of respondents), 2004

CLOTHES

Table 27: Attitudes Towards Buying Clothes from Discount Shops (% of respondents), 2004

Table 28: Attitudes Towards Designer Shops and Labels (% of respondents), 2004

leisure and Travel

Table 29: Attitudes Towards Holiday Destinations (% of respondents), 2004

Table 30: Attitudes Towards Booking Holiday Travel and Accommodation (% of respondents), 2004

10. Company Profiles

overview

BURBERRY ltd

Corporate Strategy

Profitability

Table 31: Financial Results for Burberry Ltd (£000 and %), Years Ending 31st March 2001, 2002 and 2003