Travel Retail – Quantitative Study Growing the success of Irish food & horticulture Table of Contents The Study……………………………………….…………………………….3-8 Research Findings……………………………………………………….…9-14 Motivations for Purchase………………………………..…………….15-19 Whiskey Specific………………………………….………………………20-21 Chocolate Specific…………………………………………….………….22-24 Fine Foods Specific…………………………………………………......25-27 Attitudinal Data…………………………………………………………..28-29 Key Thoughts………………………………………………………………30-31 2. The Study Research Details 4. Sample Size 780 Irish Whisky 310 Irish Boxed Chocolates 309 Irish Fine Food 161 Methodology Face to Face HAPI Survey Timing June 2015 Location Dublin Airport (airside (point of purchase) Demographic Base: All Respondents Gender % Male Female Age % 18-34 27 35-54 44 AB 34 C1 50 C2DEF 16 44 Region % Living in Ireland 27 Returning Home From a visit here 70 Other 2 56 55+ 5. Social Class % 29 Demographic x Category Shopped Base: All Respondents Gender % Fine Whiskey Chocolate Foods 37 Male 35 Fine Whiskey Chocolate Foods 18-34 25 Whiskey 63 Fine Foods Whiskey Living in Ireland 21 AB 36 32 33 C1 48 51 53 16 17 Chocolate Fine Foods 32 34 67 65 1 1 19 39 47 49 Returning Home From a visit here 77 Other 4 65 43 55+ 28 28 30 C2DEF 6. Chocolate 57 35-54 Female 33 Region % Social Class % Age % 14 Traveller Type Base: All Respondents No of Flights Taken in Past Year* % 1 or 2 3 or 4 5 or 6 7. 19 Traveller Type % Mostly business 17 22 18 7 - 10 17 11+ 25 Don’t know 0 * Return flights counted as 2 Mostly leisure Mix of both No. of Flights Taken on Business in the Past Year % 1 or 2 No of Flights Taken for Leisure in the Past Year % 16 3 or 4 18 5 or 6 15 7 - 10 16 64 1 or 2 23 3 or 4 23 5 or 6 16 11+ 34 7 - 10 11 Don’t know 0 11+ Don’t know 7 0 19 Type of Journey Taken Today Base: All Respondents Type of Journey Taken today % Business trip Leisure trip A mix of both Other 8. 18 Today’s Final Destination % UK 17 US/Canada 41 79 3 * USA 29% Rest of Europe 20 France 5% Germany 6% Italy 3% Spain 3% Other 23 Mainly european destinations Research Findings Purchase Pattern - Summary Base: All Respondents Total Whiskey Chocolate Fine Foods 44% 41% 50% 42% 56% 59% 50% 58% Yes 58% 52% 64% 57% No 42% 48% 36% 43% For self 23% For a friend or family member 70% IMPULSE CATEGORY Yes No IMPULSE BRAND BOUGHT FOR For a work colleague/client For somebody else who asked you to buy it for them Other Q.13 10. Q.14 Q.15 1% 5% 1% 4% 39% 30% 85% 68% 56% 1% 3% 1% 0% 9% 1% And did you decide to buy this product before you arrived at the duty free or did you just decide to buy it when you got there? And did you plan to buy this particular brand or did you decide when you saw it on the shelf? Did you buy the product…. 0% 1% 1% Category Purchase Drivers Base: All Respondents IMPULSE CATEGORY Total Whiskey Chocolate Fine Foods Yes 44% 41% 50% 42% No 56% 59% 50% 58% Impulse category purchases are more likely to be made by Males (46%) Impulse category purchases are more likely to be made by Less Frequent travellers (55%) Impulse category purchases are more likely to be made by Males (50%), 18-34s (53%) and Less Frequent travellers (53%) Q.13 11. And did you decide to buy this product before you arrived at the duty free or did you just decide to buy it when you got there? Brand Purchase Drivers Base: All Respondents IMPULSE BRAND Total Whiskey Chocolate Fine Foods Yes 58% 52% 64% 57% No 42% 48% 36% 43% Impulse brand purchases are more likely to be made by Over 55s (57%), and those who were impulse category purchasers (90%). Impulse brand purchases are more likely to be made by Over 55s (75%), ABC1s (69%) and those who were impulse category purchasers (94%). Impulse brand purchases are more likely to be made by Males (71%), 18-34s (68%) and those who were impulse category purchasers (100%). Q.14 12. And did you plan to buy this particular brand or did you decide when you saw it on the shelf? Who Purchased For Drivers Base: All Respondents Total BOUGHT FOR For self 23% For a friend or family member For a work colleague/client For somebody else who asked you to buy it for them Other 70% 1% 5% 1% Whiskey Chocolate 4% 39% 68% 56% 1% 3% 1% 0% 9% 1% Chocolate almost universally bought as a gift for friend/family with 90% of Females buying this way. Travellers to UK (94%) also more likely to buy for friends/family as are lower social grades (92%). Self-gifting also evident in fine foods. More likely among Males (38%), travellers to USA/Canada (48%) and Business travellers (45%). 13. Did you buy the product…. 30% 85% Whiskey more likely to be bought for self than someone else. Males (53%), Frequent Flyers (49%) and non-residents (44%) more likely to self-gift. Q.15 Fine Foods 0% 1% 1% Spend on Each Category Base: All Respondents Whiskey Up to 5 Up to 20 13% 21-30 22% 6-10 11-15 31-40 41-50 51-60 14. Chocolate 1% 16-20 12% 61-70 71-80 81-90 91-100 101+ 4% 3% 2% 3% 5% Average €43.87 21-25 26-30 31+ Average Q.12a/b/c How much did it cost? Up to 5 7% 6-10 27% 11-15 11% 16-20 14% 21-25 14% 17% 38% 24% 12% Fine Foods 21% 8% 5% 9% €16.53 26-30 13% 31-35 36-40 41-45 46-50 51+ 3% 3% 2% 4% 2% Average €19.71 Whiskey spend is highest, and most spent by C2DEs (€48) and Business travellers (€47). Chocolate category commands the lowest spend, and is highest among Business and Frequent travellers (€19). Travellers to the US/Canada spend more on Fine Food (€22) as do ABs (€22) and Frequent travellers (€22). In each category, impulse purchasers spend less than those who planned to purchase in advance. Motivations for Purchase Reason for Purchase Base: All Respondents Total Whiskey It was something from Ireland 53% I needed to buy a gift for someone 16% I liked the look of the packaging I felt like giving myself a treat 12% 9% 56% 27% 30% It was on special offer / A bargain Fine Foods 50% 37% It was good value for money Chocolate 45% 32% 38% 37% 8% 27% 7% 10% 55% 20% 16% 8% 6% 5% 13% 6% 13% 5% 11% Out of habit (I always buy this when travelling) 6% I felt like indulging in a bit of luxury 6% It was a limited edition / or unique to travel retail (Duty Free) 4% 9% For a Special occasion 4% 7% 3% 1% 4% 7% 3% 1% I received a sample or tested the product in the shop I enjoyed the distraction / entertainment of shopping before my flight 3% Other reason None of these 16. Q.16 2% 5% 2% 11% 1% 0% 3% 13% 2% Which of the following were reasons for you to buy the product you did today? 1% 4% 7% 1% 12% 0% Reason for Purchase – Most Important Reason Base: All Respondents Total Whiskey It was something from Ireland 34% I needed to buy a gift for someone 18% 11% Fine Foods 36% 38% 26% 14% 12% It was on special offer / A bargain 6% 4% I liked the look of the packaging 4% 2% Out of habit (I always buy this when travelling) 4% 2% I felt like giving myself a treat 4% 5% 1% 9% 6% 22% 5% 5% 4% 2% 11% 6% I received a sample or tested the product in the shop It was a limited edition / or unique to travel retail (Duty Free) 3% 4% 2% 1% 2% 5% 0% 1% For a Special occasion 2% 3% 2% 0% I felt like indulging in a bit of luxury 1% 2% 1% 1% I enjoyed the distraction / entertainment of shopping before my flight 0% 0% 0% 1% Other reason 17. 31% 22% It was good value for money Chocolate Q.17 6% And which one of these was the most important reason? 8% 4% 6% Motivations for Purchase Being “From Ireland” is the primary motivator for purchasing in any of the 3 categories, key given that 7 in 10 of those purchasing in Travel Retail are returning from a trip here. This is especially true of Younger, Females, ABs and those travelling on Business. Needing to buy a gift is the second most important motivation, mentioned by 1 in 5 who clearly leave some of their gift purchasing until they arrive at the airport. Value for money is also unsurprisingly important, it’s the main reason for 11%, and when combined with “bargain / special offer” at 6% makes up about 1 in 6 purchases overall driven by this motivation. Whiskey over indexes on a treat for self, and also as a result of a sampling exercise. Limited edition packs are also motivators for this category. Chocolate motivations, aside from “Irish” are mainly driven by gifting, value and attractive packaging. Fine Foods have the strongest “Irish” motivations of the 3 categories. Value is much lower down the list. Giving themselves a treat and habitual purchasing over index. Q.15 18. Did you buy the product…. Overlap of Purchases – Other Items Bought or Plan to Buy Base: All Respondents Whiskey Yes Irish Chocolates 15% Yes Irish Fine Foods Both Chocolates and Fine Foods 2% 0% No 82% Chocolate Yes Irish Whiskey 22% Yes Irish Fine Foods Both Whiskey and Fine Foods 2% 1% No 75% Fine Foods Yes Irish Chocolates 15% Yes Irish Whiskey 12% 1% Both Chocolates and Whiskey No 72% While there is some overlap evident, cross category purchases are the exception rather than the norm. Whiskey category purchasers most likely to be solus. 19. Q.18a Q.18b Q.18c And did you buy anything (or do you plan to buy something) in the Irish Chocolates or Irish Fine Food sections today? And did you buy anything (or do you plan to buy something) in the Irish Whiskey or Irish Fine Food sections today? And did you buy anything (or do you plan to buy something) in the Irish Chocolates or Irish Whiskey sections today? Whiskey Specific Brands of Whiskey Purchased Base: All Bought Whiskey (n=310) Total 38% Jameson Bushmills 11% Tullamore 11% Paddy 7% Powers 6% Kilbeggan 5% The Irishman 12Year Old Malt 5% Greenspot 4% Redbreast 4% Writers Tears 4% Connemara 3% Midleton 3% Teelings 3% Other *Please note brands less than 3% excluded 21. Q.11a What brand(s) exactly was purchased in the Irish Whiskey section? Jameson is predominantly a planned brand purchase (43% planned vs 33% impulse) Tullamore, The Irishman and Bushmills are more likely to benefit from impulse purchasers. Tullamore also more likely to be bought by those travelling to the US/Canada. 12% Chocolate Specific Brands of Chocolates Purchased Base: All Bought Chocolates (n=309) Total 64% Butlers 17% Lily O' Briens Lir 7% Baileys 6% Toblerone 5% Guinness 5% Lindt 3% Cadburys 3% Avoca 1% Celebrations 1% Mars 1% Shamrock 1% Godiva 0% Other 23. Q.11b 7% What brand(s) exactly was purchased in the Irish Chocolates section? Butlers is the main brand bought in Travel Retail, and over indexes among travellers to US/Canada and Planned purchases. Lily O Briens is a winner with Frequent Travellers and those flying to the UK. Impulse purchasers were more likely to pick up Baileys or Guinness chocolates. Purchase Behaviour - Chocolate Base: All Irish Box Chocolate Bought (n=309) Price Willing To Pay For a Box Of Chocolate 94% €10 Reason For Purchase Importance Of Offers Very important (5) 22% They are beautifully wrapped 64% €20 19% Quite important 7% Have an interesting selection €50 4% Bring me something different €100 1% Not very important 13% 18% Mean 11% 24. 18% 17% 15% Are exclusive to duty free/airports and not available in supermarkets 4% Are bespoke and special to me 1% Other 2% None of these 0% 3.40 Limited demand for boxed chocolates above the €20 mark. Offers/promotions have some degree of importance, but for many it’s not the case. “Made in Ireland” is key, packaging and handmade are secondary concerns. Q.20 Q.21 Q.22 24% Won't get damaged during travel 29% Not at all important (1) 28% Are easy to carry on and travel with 36% €40 Neither 36% They are handmade 58% €30 81% Are made in Ireland How much would you be willing to pay for a box of chocolates, if say, you were buying as a special gift? When buying chocolates, how important is it for you that they are on special offer, for example, 3 for the price of 2? Which of the following are important to you when purchasing chocolates at the airport? Fine Foods Specific Brands of Fine Foods Purchased Base: All Bought Irish Fine Food (n=161) Total Wrights of Howth Smoked Salmon 50% Cahills Irish Cheese 11% Crossogue Irish Whiskey Marmalade Preserve 5% Sheridan's Chutney for Cheese 5% Mileeven Traditional Fruit Cake 4% Sheridan's Crackers for Cheese 4% Mileeven Cranberry & Port Sauce 3% Wicklow Fine Foods Chocolate Florentines 3% Crossogue Strawberry & Champagne Preserve 2% Dalkey Mustard 2% Mileeven Luxury Brandy Butter 2% Seymours of Cork Cranberry & Almond Shortbread Biscuit 2% Wicklow Fine Foods Fruit Jelly's 2% Crossogue Blackcurrant & Irish Stout Preserve 1% Wicklow Fine Foods Luxury Cinnamon Sticks 1% Don Carlos Capers 0% Other (Specify) 26. Q.11c What brand(s) exactly was purchased in the fine foods section? Wrights Smoked Salmon is the defining product purchased in the fine foods section. This, driven by Males (63%), Over 55s (60%), ABs (62%). A multitude of other brands and products are bought within the category. 43% Factors Considered When Buying Fine Food Base: All Bought Irish Fine Food (n=161) Total 70% It represents a taste of Ireland 55% That it will stay fresh for my journey It makes a great gift for family / friends 39% That it is legal for me to bring it into my destination That the presentation is beautiful Other None of these 27. Q.23 19% Irishness again, represents a key specific motivator for purchase in the category. Freshness is also an important, albeit a secondary factor to consider. The legality of bringing a food product abroad is not an issue for most. 7% 3% 1% Which of the following are important to you when purchasing fine food at the airport? Attitudinal Data Attitude Toward Airport shopping Task (53%) Pleasure (87%) Base: All Respondents Strongly Agree % I often look for a beautiful and unique gift for friends/family and can usually find something special here 22 You never know what you might find here - I like to take a look around and happen upon something I want to buy I'm usually asked to buy a list of things once word gets out that I'll be here I actively look for deals and great prices I can avail of before I even get here I often do my homework before I get to duty free as I like to get specific products I'm after at the best price 14 8 Ease (94)% 29. Q.24 16 15 13 11 17 9 14 31 21 34 36 16 3.68 7 5 76 13 3.90 28 62 2.27 36 53 2.59 20 69 2.03 67 25 3.59 28 64 2.25 65 26 3.55 57 22 3.47 38 8 8 17 50 9 21 11 Mean 68 56 32 NET NET Agree Disagree % % 7 48 12 10 10 12 14 34 I like to pick up small tokens/souvenirs for friends and family, it's a nice way of commemorating the trip and showing I care I like to get through the duty free doing as little damage and spending as possible -just picking up the essentials 10 21 12 Slightly Strongly Disagree Disagree % % 43 18 I often leave a few purchases for my trip until the last minute as I know I'll be able to pick them up in the duty free I create a list of things I plan to buy in the duty free - these are often repeat purchases that I pick up regularly 46 32 9 Neither Agree nor Disagree % Slightly Agree % 15 13 Finally, I’m going to read out a list of statements that people have made about shopping in duty free at the airport, and for each one, I would like you to tell me if you agree or disagree with it? 9 Key Thoughts Key Thoughts Buying a product from Ireland is the primary motivator for purchase in all 3 categories. Packaging cues, brand names and stories / traditions will be key in ensuring that products have the best chance of being purchased. While the majority of Travel Retail shoppers did plan to buy in the category in advance, there is still a significant minority who only chose to purchase the category on the day. Ensuring the category, fixtures, flow of shoppers etc appeals may encourage more trade. Decision on Brand is made by the majority at the fixture, on the day, and this is especially true for the Chocolate Category. Brand stand out on shelf is essential to play in this space. Value for money, as a key secondary motivator can aid in this stand out. Limited editions and Product tastings (in the Whiskey category) have a role to play in driving increased sales. Especially given the high proportion of products bought for self (also true for Fine Foods). The Whiskey category is mostly shopped by Males, while Females dominate the other two Categories. These nuances may help target appropriately within category. Cross category purchases are relatively rare at present, consider a partnership between brands across different categories to encourage growth in this area. 31. For further information please contact info@bordbia.ie or Tel: +353 (0)1 668 5155 DID YOU KNOW? You can also access our marketing information inquiry service at any time. Typical inquiries include information on – categories, new products, brands / companies, retailers, foodservice, retail and consumer trends .... Simply e-mail info@bordbia.ie with your information query. We will endeavour to get back to you within 48 hours with relevant information resources adhering to copyright agreements.