LOOKING FOR WHITE SPACE - fdin.org.uk · This is a chart slide. ... • Chilled bakery 26% Ambient grocery 17% • Confectionery 23% Alcohol 13% • Cider 21% INNOVATION

© Kantar Worldpanel

LOOKING FOR WHITE SPACE Kantar Worldpanel Usage

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WHAT PROPORTION OF NEW PRODUCTS SURVIVE TWO YEARS?

>50% survive 2 years

Average product’s lifespan is

4-5 years

SURVIVAL AND LIFESPAN OF PRODUCTS

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2013 2012 2011 2010 2009

Core

Discontinued

Renovation

Innovation Branded

Grocery

Sales £bn

0

10

20

30

40

50

60

WHY IS INNOVATION IMPORTANT?

£7bn

INNOVATION DRIVES INCREMENTAL GROWTH


Too much choice, too

little choice?


CATEGORY ENHANCING INNOVATIONS SEEK INSPIRATION FROM

WITHOUT NOT WITHIN THE CATEGORY

6


Rational or irrational from 5 to 7,000 lines?

THE RATIONALE FOR ADDITIONAL SKU’S

Frozen 23%

• Frozen ready meals 28%

Fresh/chill 21%

• Chilled processed poultry 38%

• Fresh pasta 28%

• Yoghurt 26%

• Chilled bakery 26%

Ambient grocery 17%

• Confectionery 23%

Alcohol 13%

• Cider 21%

INNOVATION % OF CATEGORY THAT ARE NEW SKU’S OVER PAST YEAR

BEFORE YOU ARE ONE YOU WILL HAVE WORKED YOUR WAY

THROUGH EVERY TOOTHPASTE SKU (EVEN IF YOU DON’T HAVE

TEETH!)

8

9

FIVE YEARS FOR HAIRCARE

7 YEARS TO MUNCH YOUR WAY THROUGH EVERY BREAKFAST

CEREAL SKU

10

12 YEARS FOR CRISPS

11

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

E

n

j

o

y

m

e

n

t

%

Snack % Latest Year Date

NEED

OCCASION

12

30 YEARS FOR BISCUITS

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

E

n

j

o

y

m

e

n

t

%


NEED

OCCASION


MUCH ‘INNOVATION’ THINKS IN STRAIGHT LINES; IS CONFINED BY

WHAT ALREADY EXISTS

CONFECTIONERY

14

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

E

n

j

o

y

m

e

n

t

%


NEED

OCCASION


MUCH INNOVATION…….ISN’T

IT’S MORE OF THE SAME



little choice?

Re framing value


CHANGE CONSUMERS PERSPECTIVE

Supermarkets are

all the same

2012

2011

2010

2009

% of consumers

2012 data

No opportunity for true self expression

Supermarkets migrate to the middle ground - UK politics repeating itself?

THE RETAILER NEED TO CHANGE TO CREATE A POINT OF DIFFERENCE

28 29 30 31 32 33 34 35

http://www.sainsburys-live-well-for-less.co.uk/brand-match

http://www.waitrose.com/shop/BrowseCmd?langId=-11&categoryName=Groceries&level0Aisle=Groceries&fhQuery=fh_location=//waitroseproduct/en_GB/categories<waitroseproduct_10051&categoryId=waitroseproduct_10051_10059_10096.html

https://www.morrisons.co.uk/Offers/


RE FRAMING VALUE

OBM (MEAL DEALS) – BIG & GETTING BIGGER

£360 million +40% year on year

19

Ranked

73/289

categories by

size

OBM fastest

growing

significant

retailer category

Tea/Evening Meal

£1.76


20


RE-FRAMING VALUE


RE-FRAMING VALUE

22




little choice?

Inspiration from the

kitchen

Re framing value





29


MARKETING TO THE INDIVIDUAL –

CATERING FOR ME

1 person 44%

2 people 35%

3 people 11%

4+ people 10%


WorldpanelUsage 30

Price

matters

especially

when it

comes to

kids – kids

over index

for Value

PL by a

quarter

+24%


WorldpanelUsage 31

56%

More than

half of kids

branded

foods are not

eaten by kids


WorldpanelUsage 32

+20%

Men are 20%

more valuable

than women

(on average 20%

bigger portion sizes)


A LONG TERM MOVE AWAY FROM HANDS ON TO HAND OFF –

FROM MADE TO CHOSEN

High Involvement

Low involvement

33


WorldpanelUsage

HELP CREATE THE MEAL FOR CONSUMERS


A LONG TERM MOVE AWAY FROM PROTEIN CENTRED TO DISH

CENTRED EATING

Meat and two vegetables

Dish based cuisine

35


MOVE FROM SELLING INGREDIENTS TO SELLING DISHES – OR

MEAL SOLUTIONS

36

Dish maker

=

high value

Ingredient

=

lower value


LESS AND LESS TIME IN THE KITCHEN

TIME TAKEN TO PREPARE & COOK THE MAIN MEAL

1980 60 minutes

1990 45 minutes

2013 32 minutes

37


A global brand MY way



little choice?


kitchen


population

Re framing value


13%

Born abroad

25%

Obese

25%

Obese

13%

Born abroad

7%

Aged 20-25

4%

Vegetarian

6%

Diabetic

43% regularly eat

their evening

meal in front of

the TV

More over

65’s than

under 16’s

for the first

time EVER

25%

Aged 20-

34 (3m)

live with

parents

5m single

person

household

s with

child(ren)

11m with

false teeth

8% kids

have a

serious food

allergy (2%

all adults)

4m work

from home

+24% in a

decade

50% of our awake

time on computers/

mobiles/watching

TV

Average

age of

having first

child now

30


INSPIRATION FOR INNOVATION



little choice?


kitchen

Meeting needs


population

Re framing value


CONSUMER BASED NEEDS

44


15 year trend

CONSUMERS INTEREST IN HEALTH SOARS….

Source: Kantar Worldpanel Usage, 12 m/e May 2010, Total Consumption


OCCASION BASED NEEDS


WorldpanelUsage

114

1,461

208

1,859

6,289

197

1,891

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

RomanticMeal in

Treat Couple eveml - HH with

kids

Family nightin

TogetherTime

Special Social

occs

Kantar Worldpanel Usage

In Home & Carried Out Consumption

52 w/e Oct 2013

‘EVERYDAY EVENTS’ – TREATS, SOCIAL EVENTS AND BIG NIGHTS IN

OFFER YEAR ROUND OPPORTUNITIES



little choice?


kitchen

Meeting needs


population

Re framing value

Driving whole store

value


49

Categories are expandable

but ……………


WorldpanelUsage

DRIVING INCREMENTALITY OF CONSUMPTION

50


WorldpanelUsage

DRIVING BASKET VALUE

23% sweet pies feature custard or cream

5% tea with biscuits (but 33% of biscuits with tea)

1% wine with olives

38% chilled burgers with table sauce/relish

26% frozen pizza with frozen potato products

3% curry with poppadums' 16% with naan

51


SAINSBURYS MISSED OPPORTUNITY WITH SOFT FRUIT – ONLY

72% OF SAINSBURYS SOURCED SOFT FRUIT FEATURES

SAINSBURYS SOURCED CREAM

77

89

72

53

0

10

20

30

40

50

60

70

80

90

100

Tesco Soft Fruit Asda Soft Fruit Sainsburys SoftFruit

Morrisons SoftFruit

52

% OF SOFT FRUIT CONSUMED WITH SAME RETAILER SOURCED CREAM



WorldpanelUsage



little choice?


kitchen

Meeting needs


population

Re framing value

Driving whole store

value


WorldpanelUsage © Kantar Worldpanel

Giles Quick

Telephone: +44 (0) 1372 825764

[email protected]

For further information please contact:

Thank you

Documents

LOOKING FOR WHITE SPACE - fdin.org.uk · This is a chart slide. ... • Chilled bakery 26% Ambient grocery 17% • Confectionery 23% Alcohol 13% • Cider 21% INNOVATION