Price and Value Study
September 2009
Context and Background

With the current economic climate, Price is becoming an increasingly significant factor
in all sectors including food and drink.

Bord Bia’s “Feeling the Pinch” study in January 2009 found almost 9 in 10 consumers
agreed that they pay more attention to grocery prices in that last 6 months than
previously note (increase of 9%).

In this study almost 9 in 10 claim to be shopping around for value more than before

In light of these findings, Bord Bia commissioned this study in order to understand
consumer and shopper attitudes to price and promotions to assist clients and help
them compete more effectively.
Methodology

We surveyed a total of n=1,810 main household grocery shoppers, online, in the Republic of
Ireland

The sample was representative in terms of sex, age, social class and region.

The Interview length was between 15 and 20 minutes

The fieldwork was conducted between 3rd and 12th August 2009
MARKET UNDERSTANDING
Attitude To Shopping – Value
(Base: All Main Grocery Shoppers, n= 1,810)
(Q2)
Value Orientated Statements
Strongly Somewhat Somewhat
Disagree Disagree Agree
I regularly purchase brands on
promotion as part of my
grocery shop
Strongly
Agree
I tend to shop around for
value more than I used to
for groceries
I generally shop around
for best deals when it comes
to grocery shopping
I often choose which store to do my
grocery shop in on the basis of value
for money
Value is the main reason I tend to
Shop where I shop
Value-oriented statements attract significant levels of endorsement in the
current climate.
Clear
behavioural
shift
Attitudes To Shopping – Quality
(Base: All Main Grocery Shoppers, n= 1,810)
(Q2)
Quality Orientated Statements
Strongly Somewhat Somewhat
Disagree Disagree
Agree
Having a wide range or selection
of items is the main reason
I choose store for grocery shopping
Strongly
Agree
The quality of the items I buy is
more important to me than
the price I pay for them
I tend to choose products that
are healthy for me and my
family regardless of cost
I prefer to purchase brand
I know rather than
looking for best price
I tend to choose the store
that is closer to me
for my grocery shop
In relative terms quality orientated statements attract lower levels of
endorsement than value statements.
Few can
categorically
dismiss price
as a factor in
decision
making
Attitudes To Shopping - Budget
(Base: All Main Grocery Shoppers, n= 1,810)
Budgeting Statements
Strongly Somewhat Somewhat
Disagree Disagree
Agree
Strongly
Agree
I often spend more than I had
planned to when grocery shopping
I have a set budget for my grocery
shop and stick to it
… strict adherence to a budget is not the norm as yet, but would be intriguing to see
how this behaviour develops over time …
SHOPPER SEGMENTATION
Attitudinal Segmentation Process
Factor Analysis
Segmentation
Factor 1=Value Based
1. Indulgers
-Shop around for best deals
- Regularly purchase brands on promotion
-Shop for value more than I used to
- Value is main reason where I shop
- Often choose store to shop on basis of
value for money
-I have a set budget for my grocery shop
and stick to it
Factor 2=Brand Based
-Prefer to purchase brands I know
- Tend to choose the store that is closest
to me
-Quality of items I purchase is more
important than the price I pay
-I tend to choose products that are
healthy for me and my family regardless
of price
-Often spend more than I had planned to
when grocery shopping
Factor analysis performed to establish core
themes emerging within respondents answering
patterns to attitudinal statements. Two distinct
themes emerge (value and brand).
Cluster
Analysis
Attitudinal
Statements
2. Compromisers
3. Strugglers
4. Value Hunters
The defined factors (value & brand) then were
fed into a cluster analysis process where 4
distinct attitudinal segments emerged.
Penetration Of Attitudinal Segments
(Base: All Main Grocery Shoppers, n= 1,810)
Compromisers
28%
Strugglers
27%
(582,836)
(604,432)
Indulgers
20%
Value hunters
(431,730)
(539,663)
25%
Quality
Oriented
Value
Oriented
( ) Population Number from CSO Estimates 2009
Consumers defined by their relative emphasis on quality vs value …..
Most/Least Likely To Say By Segment
Indulgers
• Most likely to say:
– I prefer to purchase brands I know rather
than looking for best value.
– The quality of items I purchase in more
important than the price I pay.
– I tend to choose product that are healthy
for me regardless of cost.
• Least likely to say
– Value is the main reason I choose to shop
where I shop.
– I often choose which store to conduct my
grocery shop on the basis of value for
money.
– I generally shop around for the best deals
when it comes to grocery shopping.
– I have a set budget for my grocery shop and
stick to it
Compromisers
28%
• Most likely to say:
– I prefer to purchase brands I know rather
than looking for best price.
– I tend to shop around for value more than I
used to for groceries.
– The quality of items I purchase in more
important than the price I pay.
– I regularly purchase brands on promotion as
part of my grocery shop.
• Least likely to say
– Value is the main reason I choose to shop
where I shop.
– I have a set budget for my grocery shop and
stick to it
While both groups have a degree of quality orientation, Compromisers are changing their
behaviour to find value more than they did previously and are influenced more by promotions
Most/Least Likely To Say By Segment
Strugglers
25%
Value Hunters
• Most likely to say:
– I tend to shop around for value more than I
used to for groceries.
– I generally shop around for best deals when it
comes to grocery shopping.
– I regularly purchase brands on promotion as
part of my grocery shop.
• Most likely to say:
– Value is the main reason I choose to shop
where I shop.
– I generally shop around for the best deals
when it comes to my grocery shopping.
– I often choose which store to conduct my
grocery shop on the basis of value for
money.
• Least likely to say
– I tend to purchase brands I know rather than
looking for best price.
– I tend to choose the store that is closest to
me for my grocery shop.
– I often spend more than I had planned to
when grocery shopping
• Least likely to say
– The quality of items I purchase is more
important to me than the price I pay for
them.
– I tend to choose the store that is closest to
me for my grocery shop.
– I prefer to purchase brands I know rather
than looking for the best price.
Strugglers are certainly value-conscious, and they actively seek VFM but stop
short of claiming it is the main reason they choose where to shop.
Quality Orientated Statements By Segment
(Base: All Main Grocery Shoppers, n= 1,810)
Index vs. Total (Total = 100)
Quality Orientated Statements
Based On
Strongly Agree
Value
Indulgers Compromisers Strugglers Hunters
Having a wide range or selection of items is the
main reason I choose store for grocery shopping
139
118
100
53
The quality of the items I have is more
important to me than the price I pay for them
217
125
58
21
I tend to choose products that are healthy
for me and my family regardless of cost
216
137
63
16
I prefer to purchase brand I know rather than
looking for best price
250
128
50
17
I tend to choose the store that is closer to me
for my grocery shop
233
133
50
11
I often spend more than I had
planned to when grocery shopping
134
107
83
79
I have a set budget for my grocery
shop and stick to it
71
88
106
129
Budget Orientated Statements
Indulgers are evidently less price-conscious with a significantly greater
emphasis on quality over value…
Value Orientated Statements By Segment
(Base: All Main Grocery Shoppers, n= 1,810)
Index vs. Total (Total = 100)
Value Orientated Statements
Based On
Strongly Agree
Value
Indulgers Compromisers Strugglers Hunters
I regularly purchase brand on
promotion as part of my
grocery shop
60
91
110
113
I tend to shop around for
value more than I used to
for groceries
32
85
119
146
I generally shop around
for best deals when it comes
to grocery shopping
34
74
125
157
I often choose which store to do my
grocery shop in on the basis of value
for money
22
66
120
172
Value is the main reason I tend to
Shop where I shop
26
72
113
178
As the name suggests, Value Hunters place singular emphasis on the
quest for value – a stark contrast with Indulgers
Segmentation Profile - I
(Base: All Main Grocery Shoppers, n= 1,810)
Index vs. Total (Total = 100)
Total Sample
Gender
Indulgers Compromisers Strugglers Value Hunters
Male
Female
109
107
91
98
93
94
107
102
18-24
25-34
35-44
45+
89
100
89
122
100
100
103
100
90
93
103
107
118
107
96
86
72
95
110
115
118
103
93
90
115
94
119
147
79
70
115
88
113
100
89
100
85
106
94
87
105
115
85
100
94
87
116
115
Age
Dep Kids
Yes
No
Lifestage
Young & Single
Early Settlers
Mid Age, no kids
Empty Nesters
Young families
Mature families
Value seeking and family commitments go hand in hand!
Main Grocery Shop Outlet by Segments
(Base: All Main Grocery Shoppers, n= 1,810)
Index vs. Total (Total = 100)
Total Sample
Indulgers Compromisers
Strugglers
Value Hunters
Tesco
88
107
95
100
Dunnes Stores
110
110
105
76
Lidl
50
67
125
142
SuperValu
136
109
91
64
Aldi
29
43
114
200
SuperQuinn
200
125
50
25
Convenience
300
200
100
0
Average number of stores
shopped in regularly for groceries
2.8
3.1
3.3
3.6
Value chasers over index on discounters, but also shop across a
broader repertoire of stores.
Pen Portrait - Indulger
•
John is 55 years old and lives in Clontarf. He is married to Elaine and they have
two children, Brian and Emma. Brian is 26 and has just started working for a Bank
in the city centre. Emma is 24 and is currently doing her masters in UCD. Both
Brian and Emma have their own places in town, but loving coming home every
couple of weekends for a home cooked meal and a “catch-up”.
•
John is a senior manager in an Insurance company in the city centre and drives his
Saab 93 to work every morning. He enjoys playing golf with his friends on
Saturdays, and usually eats out with his wife and friends on a Saturday night. He
plans to retire in 5 years, and has invested his money wisely despite the recent
economic problems.
•
Elaine generally does the main grocery shopping in Superquinn on a Sunday
afternoon, and John often gets requests from Elaine to pick up certain things from
Marks & Spencer’s in the city during the week. John also finds himself regularly
having to nip out to the local Spar in the evening time to pick up extras, and his
local off license for a bottle of wine.
•
John always purchases the brands he knows and likes. He does not have time for
looking for the best deal, especially as he is generally just shopping for himself and
Elaine. He has however become more aware of the healthier options available to
him, but would only ever look for these alternatives within brands that he knows
and trusts.
Pen Portrait - Compromiser
•
Sean is 30 years old and is a primary school teacher in Galway. He recently bought
a new apartment, where he lives and rents the spare bedroom to a friend of his.
He is currently single, but has been seeing Jane on and off for a while.
•
Sean likes socialising with his friends at the weekend, and plays football on a
Wednesday night with the lads to keep fit and enjoy the craic. He does however
notice the few Euro less in his account every month since the introduction of the
pension levy. He still has enough money to pay his mortgage and go out at least
one night every weekend, but he is having to face up to the reality and
consequent fears of the downturn.
•
He is not in the eye of the economic storm, but the carefree consumerism that he
enjoyed in recent years is being replaced by a certain degree of conservatism and
financial prudence. He now feels obliged to cut back for fear of what might
happen in the future. He realises for the first time that nothing is certain.
•
Sean generally shops in Dunnes Stores, but he has noticed that the new Tesco in
town does some great offers on meat and beer. He also tends to make about one
trip a month to Aldi, where he tends to purchase some specialiity cheeses, foreign
beer, washing powder in bulk, detergents and have a look at the special items
they have on sale.
•
Sean is swayed by promotions on brands that he likes. He generally does not use
all the food he buys on promotion and has to throw it out when it passed the best
before date.
Pen Portrait - Struggler
•
Marie is 35 years old and is a housewife from Monaghan. She is married to Barry,
who works in a local factory. Barry recently had to take a 20% cut in salary, but
avoided being made redundant; a number of his colleagues were let go.
•
Marie and Barry have 3 young children, aged 6, 3 and 2. Marie has contemplated
looking for some part time work to help out, but there is very little out there at
the moment and the cost of child care means there is little point in pursuing this
at the moment. She has certainly noticed how much more difficult it is to make
ends meet, and had to cancel their summer holiday earlier this year.
•
Marie shops mainly in Tesco nowadays, given the money she can save with the
new ‘change for good’ campaign. She saves almost €50 on her weekly shop now
compared to what she used to pay in Superquinn. She visits Lidl on a regular basis
as she finds it great to stock up on a number of items for the kids, as well as
washing powder and some toiletries. She finds it hard now to justify shopping in
Superquinn except for special occasions.
•
Marie is fearful for the future of her family, and doesn’t know what would happen
if Barry lost his job. She sticks very closely to her shopping list and would rarely go
over budget unless there was a promotion on something like meat, tea or
nappies, something that will be used up in the future.
Pen Portrait – Value Hunter
•
Siobhán is 42 years old and is from Limerick. She is married to Jim who is a self
employed joiner but is struggling to get consistent work at the moment; it’s
mainly cash in hand. They have 4 children, aged 16, 11, 8 and 4.
•
Siobhán always seems to struggle paying the bills, even in the “good times”, but
this is especially the case at the moment as Jim tries to look for something more
consistent. She is fearful for the future given the amount of negative media out
there about the future of the construction industry. She found it hard to fork out
for new school books for her children recently. Life is a financial struggle and
money influences decision making in every aspect of life.
•
She has started going back to Tesco since she heard from friends about the
savings they made, but she shops in other places also. She tends to do 1 grocery
shop per week, generally on a Saturday morning when Jim looks after the kids.
She goes to Tesco, then Lidl to stock up on the household goods she needs. She
also goes to Dunnes Stores when they advertise special offers that are relevant to
her. Shopping around for the best deals is a constant theme.
•
Siobhán is long since converted to purchasing mainly private label groceries and
has always felt the Tesco and Dunnes Stores own label goods are the same as any
others. She is very good at sticking to her shopping budget and always knows
exactly where she will get the best value for the groceries she needs.
Purchase Frequency For Main Food Categories
(Base: All Main Grocery Shoppers, n= 1,810)
Frozen
Cheddar Frozen Tea Boxes of
Beef
Bread Water Cheese Chicken Bags Chocolates Burgers
More than once a week
61%
17%
10%
8%
3%
2%
2%
Once a week
29%
24%
47%
22%
18%
3%
13%
Once every 2 weeks
5%
13%
24%
16%
24%
4%
12%
Once a month
2%
11%
9%
14%
28%
11%
16%
Every 2-3 months
1%
8%
4%
12%
16%
22%
13%
Every 6 months
0%
6%
2%
6%
5%
23%
9%
Once a year
0%
2%
0%
4%
2%
21%
5%
Less than once a year
0%
3%
0%
4%
1%
9%
6%
Never
1%
16%
3%
14%
3%
5%
24%
AVERAGE PER MONTH
6.2
2.7
3.3
2.1
1.8
0.6
1.2
Of the categories researched, not surprisingly Bread has the highest
purchase frequency per month, with Boxed Chocolates the lowest
Average Times Per Month Main Categories Purchased In Multiples
(Base: All Main Grocery Shoppers, n= 1,810)
Index vs. Total (Total = 100)
Total Sample
Average Times Purchased
Per Month
Indulgers Compromisers
Strugglers
Value Hunters
Bread
94
98
103
104
Cheddar Cheese
88
101
104
104
Water
100
106
96
98
Frozen Chicken
94
96
96
114
Tea Bags
97
105
100
97
Frozen Beef Burgers
86
100
98
113
Box Of Chocolates
127
121
88
68
Interestingly there are no significant differences in monthly purchase frequency across the
segments for the categories of interest, with the exception being Boxed Chocolates for
Indulgers and Compromisers, and Frozen Chicken and Burgers for Value Hunters
Category Purchase Tendency Towards Private Label
and Branded Items
(Base: All Main Grocery Shoppers, n= 1,810)
On a 10 point scale, where do you belong in terms of your purchasing of <category> for your household?
Tend to buy
Private Label
(1-3)
Tend to buy
Branded
(4-7)
(8-10)
Tea (n=530)
Boxed Chocolates (n=561)
Bread (n=605)
Cheese (n=603)
Frozen Meat (n=602)
Water (n=573)
Tea, Chocolate and Bread show strong tendencies towards branded
purchases, while water is the most prevalent private label purchase
Branded Purchase For Categories By Segment
(Base: All Scoring 8-10 (branded) in terms of Private Label vs. Branded purchasing)
Branded Incidence Total
Index vs. Total (Total = 100)
(Base on Score 8-10 from Q1a)
Indulgers Compromisers
Strugglers
Value Hunters
Bread
133
120
88
69
Cheese
148
114
76
67
Chocolate
117
103
98
97
Frozen Meat
121
126
82
84
Tea
114
106
79
86
Water
142
130
85
55
There is a strong over index for Indulgers and to an extent Compromisers
among general ‘Branded’ grocery shoppers
Private Label Purchase For Categories By Segment
(Base: All Scoring 1-3 (Private Label) in terms of Private Label vs. Branded purchasing)
Private Label
Incidence Total
(Base on Score 1-3 from Q1a)
Index vs. Total (Total = 100)
Indulgers Compromisers
Strugglers
Value Hunters
Bread
70
70
85
175
Cheese
39
65
113
157
Chocolate
111
78
111
122
Frozen Meat
94
63
106
138
Tea
56
78
89
167
Water
66
71
111
149
Unsurprisingly, strong over index across all categories for Value Hunters
among general ‘Private Label’ purchasers
Category Purchase Routine Vs Experimentation
(Base: All Main Grocery Shoppers, n= 1,810)
On a 10 point scale, where do you belong in terms of your purchasing of <category> for your household?
Tend to buy same…
(1-3)
Experimenter…
(4-7)
(8-10)
Tea (n=530)
Water (n=573)
Bread (n=605)
Frozen Meat (n=602)
Cheese (n=603)
Boxed Chocolates (n=561)
Both tea and water show a stronger degree of loyalty towards the same brand relative
to the other categories.