Feeling the Pinch:

2 © 2013 Bord Bia, The Futures Company
© 2010 The Futures Company

Introduction
Whilst greater calm returned to the financial markets in 2012 and confidence rose that Europe is managing its debt crisis, the prospects for the shorter and longer term still appear challenging.
The US has enjoyed more than three years of uninterrupted economic growth and falling unemployment rate since the recession ended. The bad news is that this has been the weakest rebound since
World War II. Unemployment is still way above where it should be at this point in the recovery and budget problems remain the chief impediment to faster growth. The fiscal cliff deal did little to reduce the annual deficit; and the impending spending cuts and tax hikes to keep it in control will be a drag on the economy.
According to Chinese government officials, the annual rate of growth in the last quarter of 2012 was 7.4%, down from 7.6% in the previous three months. This is down from 8.1 per cent in the first quarter and its lowest level since the beginning of 2009. China has been the single biggest contributor to global growth in recent years. Therefore, the slowing rate of growth in China generally dampens hopes that China will
4 © 2013 Bord Bia, The Futures Company prop up the global economic outlook.
With the two big engines of the world economy facing a challenging year ahead, the knock on effects for the rest of the world are evident.
In the Republic of Ireland (ROI), there are stirrings of recovery and signs of increased competitiveness. In Great
Britain (GB), there is a feeling that austerity measures are yet to have their full effect the medicine is yet to run its course. Comparative outlooks suggest that British consumers are less optimistic for the year ahead than their
Irish counterparts.
In both economies, price pressures remain despite falling inflation, and the underlying stagnation of wages means that real wages are falling at a slower rate. With many essential household expenditures, such as energy costs and food categories, coming under the greatest price pressure, no one is expecting an easy year ahead; and certainly not one where prospects improve significantly.
As the recession has endured, so has the resilience of consumers. Consumers are starting to look forward again and focus on enjoying what they have, instead of mourning what they have lost. There is a shifting sense of priority emerging and different views in relation to how life and success should be measured. A new era of realism is emerging, one where happiness now has more currency than affluence and economic growth.
This emerging landscape offers many opportunities for brands and companies.
As consumers’ orientation has shifted from retrenchment and self-preservation towards re-connection, brands have greater permission to act as facilitators in reaching this goal. They can take actions to lift consumers’ spirits and sense of happiness, which also drive stronger and deeper relationships. This report explores the new emerging landscape and offers ideas and inspiration for companies seeking to thrive and build for longer-term success.
For more information on this report or help in applying the findings to your business please contact:
Information Services
Tel: +353 1 668 5155
Email: info@bordbia.ie

Executive Summary
Prospects in the eurozone region remain challenging: Despite growing confidence that Europe is managing its debt crisis and is poised to embark on a recovery, the region continues to struggle to stimulate growth while cutting spending to pare deficits. The likelihood of the eurozone economy contracting for the second consecutive year and that France and Spain will miss fiscal targets are very real.
The Republic of Ireland (ROI) is showing some signs of a return to competitiveness: There are stirrings of life in the battered Irish economy.
According to the IMF, ROI’s GDP grew by 0.4% in 2012, which is faring better than the deep recessions in Italy and
Spain, although it’s less than the 1.4% rise in 2011. There is also strong evidence that ROI could be the first bailed-out country to finance itself again, and is scheduled to make a full return to the bond markets at the end of 2013.
Times ahead remain tough for Great
Britain (GB): In GB, growth has been much weaker than most commentators expected. According to the official figures, there has been barely any
6 © 2013 Bord Bia, The Futures Company growth at all over the past two and a half years.
In ROI there is sense that the outlook will remain similar to today:
46% of Irish consumers feel that the economy will stay about the same in the next 12 months; the overriding feeling is that 2013 will be another challenging year.
In GB, consumers are more pessimistic in their outlook: 43% of
GB consumers feel that the economy will get somewhat or much worse in the next 12 months. The more negative perspective for British consumers perhaps reflects that many austerity measures implemented by the government are yet to run their full course.
Consumers remain worried about the impact of inflation on their spending: Irish CPI inflation for
January (released by the CSO) shows
CPI inflation fell to 1.2% year on year, at face value indicating dissipating price pressures. However, the headline rate has been pushed down by mortgage interest payments and a smaller contribution from energy. The energy contribution is likely to rise again with oil prices currently at $118 per barrel.
These pressures are also evident in GB, where inflation rates have tracked ahead of the Bank of England’s target rates and are expected continue as such for a least another two years.
Consumers’ experience of the current situation varies: The most notable shift in the last year has been the increasing size of the ‘All hands on deck’ group in ROI, now representing
52% of all Irish consumers. This change highlights the greater degree of hardship that has been created by the financial crisis and the extent to which these pressures have continued over the last 12 months; impacts appear to be re-shaping attitudes and values amongst Irish consumers at a faster rate.

Executive Summary
The rising feeling that there is more to life than money and material possession: Whilst reflected in the attitudes of British consumers, the potentially strong mindset shift of Irish consumers is evident among those harder hit in the financial crisis.
Attitudes toward spending seem no longer defined by a lack of funds but a more responsible outlook on life.
Consumers are looking forward and focussing on enjoying what they have, instead of mourning what they lost: A return to pre-recession wealth may not be feasible, but it should not preclude the sense of happiness and fulfilment that life can offer. Indeed, for Irish consumers, 53% now feel that happiness should be higher on the government agenda than economic growth, a figure that has risen by 15% since 2011.
The emergence of a new era of realism: A more resilient and resourceful consumer is emerging out of the pressures of the financial crisis.
Anxiety has faded and been replaced by vigilance and an approach to spending which is responsible but not wholly curtailed; many consumers have sought to reduce debt and avoid the burdens of taking on more. Purchasing is
7 © 2013 Bord Bia, The Futures Company considered but not constrained, consumers prioritise rather than forgo some of life’s pleasures.
Reconnection is the key to a rising sense of wellbeing and happiness:
Belonging to a group or community gives us a sense of identity, it helps us understand who we are and feel part of something larger. The relationships we build create a psychological space in which we feel safe and supported, so that there is less need to for us to narrowly focus on survival tasks.
Reaching out and finding new points of connection is becoming a key factor in shaping the consumer outlook and sense of happiness in life.
Brands now have a great opportunity to help consumers reconnect with the world around them and build their sense of optimism:
Consumers are more future orientated and mindful that they still have a lot to be positive about in their lives. The recession consumer is being left behind.
What life should be and what should be valued have been reconsidered; happiness now has more currency than affluence and growth.
RESPONSIBILITY:
Help consumers be more responsible with their money and get the most from their spending
VIGILANCE:
Play to consumers’ desire to manage risk and uncertainty
RESOURCEFUL:
Help consumers to plan and be more resourceful
PRIORITISATION:
Give consumers new meaning and a sense of focus in their lives
CONNECTION:
Build a sense of connection and provide the platforms to connect

The market outlook
Prospects in the eurozone region remain bleak
Despite growing confidence that Europe is managing its debt crisis and is poised to embark on a recovery, the region continues to struggle to stimulate growth while cutting spending to pare deficits.
The prospect that the euro area economy would shrink for the second consecutive year and that countries like
France and Spain would miss fiscal targets are very real. Olli Rehn, the
European Commissioner for economic and monetary affairs, forecast growth across the 27-nation European Union of just 0.1% for 2013 and a contraction of
0.3% among the 17 countries in the eurozone.
Separately, the European Central Bank has announced that the region’s banks plan to repay less than half the expected amount of low interest loans they took out a year ago. And Moody’s
Investors Service have downgraded
Britain’s government bonds from its top
AAA rating based on the poor growth forecasts. Prospects in the region remain challenging.
9 © 2013 Bord Bia, The Futures Company
The ROI is showing some signs of a return to competitiveness
There are stirrings of life in the battered
Irish economy. The IMF observes that the Irish GDP has grown by only 0.4% in 2012, which compares well against the deep recessions in Italy and Spain, but followed a 1.4% rise in 2011. The current account has been in surplus since 2010. Underlying competitiveness appears to have improved and highlighted a potential fall in unit labour costs of around 15% since the start of the crisis.
There is also strong evidence that ROI could be the first bailed out country to finance itself again and is scheduled to make a full return to the bond markets at the end of 2013. Yields on Irish government bonds maturing in 2020 fell from 8.5% at the start of 2012 to 4.5% by the end of the year.
Renewed appetite for Irish debt allowed the government to regain partial access to bond markets in 2012. Ireland’s debt management agency plans to raise €10 billion by issuing bonds in 2013. That will provide the government with €19 billion of cash reserves, sufficient to cover the government’s needs for 2014.
Times ahead remain tough for GB
In GB, growth has been much weaker than most commentators expected.
According to the official figures, there has been barely any growth at all over the past two and a half years.
Unemployment, at almost eight percent, is markedly higher than the pre crisis level of around 5.5%. And inflation, despite its fall over the past 15 months from over five percent to around 2.5%, remains above the Bank of England’s two percent target.
Consequently, living standards have been squeezed for longer than at any time in living memory. Living standards combined with the reluctance of banks to expand lending to finance the recovery, are key factors affecting the pace of recovery.

The market outlook
In ROI there is sense that the outlook will remain similar to today
Forty six percent of Irish consumers feel that the economy will stay about the same over the next 12 months, and with similar proportions saying it will get better or worse, there is a sense among consumers that the depths of the crisis has finally been reached (See Chart 1).
Whilst this is an improvement on the previous year, it shows that the majority of consumers have the overriding feeling that 2013 will be another challenging year.
In GB, consumers are more pessimistic in their outlook
Forty three percent of GB consumers feel that the economy will get somewhat or much worse in the next 12 months; few believe in the prospects of improvement. This outlook reflects broader public domain and even that of the government. The more negative perspective of British consumers, versus their Irish counterparts, perhaps reflects that many austerity measures implemented by the government are yet to run their full course and the readjustment of the financial system in
GB remains underway.
10 © 2013 Bord Bia, The Futures Company
100%
80%
60%
40%
CHART 1
Which of the following best describes what you feel will happen to the economy in the next 12 months?
8
Get much better Get somewhat better
Get somewhat worse
Stay about the same
Get much worse
Republic of Ireland Great Britain
100%
4
8
12
6 7 7 8
21
80%
28
28 28
33
36
33
35
60%
46
34
37
39
38
34
40%
42 41
20%
0%
20%
27
25
19
24 27
20
14
2
Sep-10
2
Mar-11
2
Jan-12
2
Jan-13
0%
2
Sep-10.
2
Mar-11.
1
Jan-12.
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
14
2
Jan-13.

The market outlook
Consumers remain worried about the impact of inflation on their spending
In January CSO showed Irish CPI inflation fell to 1.2% year on year at face value, indicating dissipating price pressures. However, the headline rate has been pushed down by mortgage interest payments and a smaller contribution from energy. The energy contribution is likely to rise again with oil prices now at $118 per barrel; a factor that is reflected in the high proportions of consumers that worry about paying for everyday necessities (see Chart 2).
These pressures are also evident in GB, where inflation rates have tracked ahead of the Bank of England’s target rates and are expected to do so for a least another two years. Consumers in GB are more worried about rising cost of food than their Irish counterparts. Price rises have generally increased faster due to the weakening pound and the reliance on imports. This may be a problem that gets worse as farmers planting for 2013 season has been delayed due to extreme wet weather and flooding. Some analysts predict that food inflation rates could reach as much as six percent in the coming year.
11 © 2013 Bord Bia, The Futures Company
70
60 58
64
50
57
54
52
47
52
49
44
40
35
30
42
50
20
ROI GB
35
25
28
19
30
26
10
CHART 2
How worried are you about each of the following issues?
Summary of very / fairly worried
0
The cost of electricity and gas in the home
The cost of petrol
Having enough money to retire on
Keeping up with the cost of living
Rising interest rates
The cost of food
The level of debt I have
Losing your job
Having enough money to put food on the table
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)

The market outlook
Consumer experiences of the present day can broadly be defined in three different ways:
All Hands on Deck: This group is least equipped to withstand financial shocks. As a result many have had to significantly adjust their lifestyles and spending behaviours.
Choppy Waters: These consumers have had to become more careful with their money and manage it on a weekly and even daily basis.
Plain Sailing: This group is less directly affected by the financial crisis, being less financially exposed by having lower levels of debt and with good financial planning in place.
In 2013, these consumer groups continue to illustrate the different degrees to which consumers have continued to be affected by the financial crisis.
The most notable shift in the last year has been the increasing size of the ‘All hands on deck’ group in the ROI, now representing
52% of all Irish consumers. A change which highlights the greater degree of hardship that has been created by the financial crisis, and the extent to which these pressures have continued in the last 12 months. These impacts appear to be re-shaping attitudes and values amongst Irish consumers at a faster rate.
Note: the segment sizes have changed since the last report due to a change in the way the segments are calculated.
100%
80%
60%
40%
20%
0%
40
33
27
38
39
23
41
36
22
CHART 3
52
31
17
Sep-10 Mar-11 Jan-12 Jan-13
100%
80%
60%
40%
20%
0%
22
38
41
26
38
36
26
38
35
25
41
34
Sep-10. Mar-11. Jan-12. Jan-13.
Source: The Futures Company Feeling The Pinch 2013 (see appendix for base sample sizes)
12 © 2013 Bord Bia, The Futures Company

The market outlook
13 © 2013 Bord Bia, The Futures Company

The dawn of a new era
The rising feeling that there is more to life than money and material possession
Whilst reflected in the attitudes of British consumers, the potentially strong mindset shift of Irish consumers is evident among those harder hit in the financial crisis.
Attitudes toward spending seem no longer defined by a lack of funds but a more responsible outlook on life; 87% of ‘All hands on deck’ consumers say they’ll never spend money again as freely as they did before the recession.
Even when presented with the prospect of a €10,000 windfall, many Irish consumers choose the sensible option of investing for the future or paying off debts as their top priorities. Only one in four Irish consumers would consider indulging themselves with a holiday or new clothes, and one in eight would upgrade consumer electronics.
Attitudes and (arguably) values have permanently shifted as times have remained challenging; many Irish consumers now agree that they have learned how many things they can do without and still be happy. There is the very real prospect, that even when growth returns, the pre-recession values are unlikely to resurface.
I'll never spend my money again as freely as I did before the recession
Since the recession I have learned how many things I can do without and still be happy
The economic downturn has helped me prioritise what's most important in my life
CHART 4
87% of Irish consumers agree
78% of Irish consumers agree
75% of Irish consumers agree
73% of Irish consumers agree
80% of Irish consumers agree
73% of Irish consumers agree
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
30% of Irish consumers agree
51% of Irish consumers agree
43% of Irish consumers agree
15 © 2013 Bord Bia, The Futures Company

The dawn of a new era
CHART 5
Consumers are looking forward and focussing on enjoying what they have, instead of mourning what they lost
With the boom times becoming a distant memory and return to prosperity unlikely, consumers are starting to accept their lives and situations for what they are.
Whilst managing the everyday challenges of today, consumers are starting to look ahead to the future and accept it for what it may be rather than dwelling on the past.
Equally, more consumers are seeking to enjoy what they have in their lives.
Whilst they may be less well off today, they still have many good things in life to value.
These attitudes highlight the shifting sense of priority consumers have in their lives, and different views emerging in relation to how life and success should be measured. A return to pre-recession wealth may not be feasible but it should not preclude the sense of happiness and fulfilment that life can offer. Indeed, for
Irish consumers, 53% now feel that happiness should be higher on the government agenda than economic growth, a figure that has risen by some
15% since 2011.
16 © 2013 Bord Bia, The Futures Company
We should focus more on the future rather than concerning ourselves with what has happened in the past
I am now more focused on enjoying what I already have instead of trying to become better off
People's happiness should be higher on the government agenda than economic growth
77% of Irish consumers agree
65% of British consumers agree
66% of Irish consumers agree
69% of British consumers agree
53% of Irish consumers agree
44% of British consumers agree
% change between Jan 2011 results and Feb 2013
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
+15%
+1%

The dawn of a new era
The era of indulgence
The pre-recession era was an era of strong growth and opportunity; unemployment was low and the property market boomed in both the Irish and
British economies. The consumer ambition was to trade up; often taking on debt in the pursuit of accumulating both possessions and experiences. The consumer’s orientation was selfexpression and showing their rising wealth through what they owned and the lifestyles they lived.
The recession consumer
The recession brought a sharp shock to many consumers’ lives. Whether affected directly or indirectly by the loss of jobs and contracting economy, many consumers became anxious about what the imminent future held. Economising became the everyday necessity that pervaded spending. Self-expression fast gave way to self-preservation consumers retrenched into the relationships closest to them for support and comfort.
The emergence of a new era of realism
A more resilient and Resourceful
Consumer is emerging from the pressures of the financial crisis.
17 © 2013 Bord Bia, The Futures Company
Ambition
Sensibility
Mindset
Passion
Orientation
Era of Indulgence
(Pre 2008)
Trading Up
Exuberance
Bullish
Accumulation
Self-expression
CHART 6
Recession Consumer
(2008-12)
Economising
Anxiety
Sober
Frugality
Self-preservation
A New Realism
(2013-?)
Responsibility
Vigilance
Resourceful
Prioritisation
Connection

The dawn of a new era
Anxiety has faded and been replaced by vigilance and an approach to spending which is responsible but not wholly curtailed. Many consumers have sought to reduce debt and avoid the burdens of taking on more. Purchasing is considered but not constrained, consumers prioritise rather than forgo some of life’s pleasures.
But the biggest shift emerging is the change in orientation from retrenchment to seeking new connections and meaning through those connections. In the ROI, 56% of consumers agree that they have made new friendships and social connections in recent years; the numbers are at similarly high in GB with
47% agreeing.
In the ROI the higher desire for reconnection is evident, 27% agree they are now more involved in their local community than before the recession, up seven per cent since 2012. Likewise,
23% say they now talk more to their neighbours than before the recession.
Reaching out and finding new points of connection is becoming a key factor in shaping the consumer outlook and sense of happiness in life.
In recent years I have made new friendships and social connections
I am more involved in my local community than I was before the recession
I talk to my neighbours more now than I did before the recession
CHART 7
56% of Irish consumers agree
47% of British consumers agree
27%
13% of Irish consumers agree of British consumers agree
23% of Irish consumers agree
13% of British consumers agree
+2%
+3%
% change between Jan 2012 results and Feb 2013
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
+7%
+2%
18 © 2013 Bord Bia, The Futures Company

The dawn of a new era
Reconnection is the key to a rising sense of wellbeing and happiness
Belonging to a group or community gives us a sense of identity, it helps us understand who we are and feel part of something larger. The relationships we build create a psychological space in which we feel safe and supported, there is less need to for us to narrow on survival tasks.
The power of connection and belonging on the emotional state of consumers is clear. On average, 47% of Irish consumers agree they are starting to feel more optimistic about their lives and the future.
However, those that agree with this statement vary dramatically according to the level of new connections they have made in recent times. Of those that don’t agree with any of the three connection statements, 20% agree they are starting to feel more optimistic about their lives and the future. This percentage dramatically increases the greater the number of connection statements a consumer agrees with; this rises to 73% agreeing they are starting to feel more optimistic about their lives and the future when they agree with all three statements.
19 © 2013 Bord Bia, The Futures Company
CHART 7
I am starting to feel more optimistic about my life and the future - % agree
REPUBLIC OF IRELAND
47%
Irish consumers
20%
Agree with no connection statements
44%
Agree with one connection statement
56%
Agree with two connection statements
CONNECTION STATEMENTS
 In recent years I have made new friendships and social connections
 I am more involved in my local community than I was before the recession
 I talk to my neighbours more now than I did before the recession
73%
Agree with three connection statements

The consumer perspective
 A more resilient and resourceful consumer is emerging from the pressures of the financial crisis.
Consumers have begun to accept their current situation for what it is; the expectation that life will return to pre-recession days of indulgence has passed. Consumers are starting to look forward and approach life with a new mindset.
 Brands will have to connect with a new set of attitudes and values.
These new values of Responsibility, Vigilance, Resourcefulness,
Prioritisation and Connection are becoming the defining factors the consumer landscape.
Whilst brands will still have to work hard to demonstrate value to the consumer, different dimensions can be used to reassure existing consumers or attract new consumers, other than price alone.
 The opportunity for brands is to help foster and create relationships.
Brands have always been facilitators of connection and symbols of belonging for many consumers. Brands have a growing opportunity to extend that role to a new level, providing the platforms for like-minded consumers to connect.
Those that achieve this goal are likely to have happier consumers and benefit from being the facilitators and creators of a more positive outlook on life.
20 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Despite rising pressures on the cost of living and the continuation of a challenging consumer landscape, brands now have a great opportunity to help consumers re-connect with the world around them and build their sense of optimism.
Consumers are more future orientated and mindful that they still have a lot to be positive about in their lives. The recession consumer is being left behind as consumers accept the ‘era of indulgence’ is now a distant memory, and just trying to manage to get by until its return is a pointless exercise.
What life should be and what should be valued have been reconsidered, happiness now has more currency than affluence and growth.
Consumers have moved from an orientation of retrenchment and selfpreservation to one of connection and reaching out; and in doing so have found that happiness and a more optimistic view of life is still within their reach.
Brands have a new set of consumer values and attitudes in which they must find a place. Brands’ greatest opportunity continues to be one of fostering connection and providing the platforms, whether real or virtual, by which this connection can occur.
22 © 2013 Bord Bia, The Futures Company
RESPONSIBILITY:
VIGILANCE:
RESOURCEFUL
PRIORITISATION:
CONNECTION:

Key challenges and opportunities
Consumers still need help to manage their spending and ensure that they maximise the value of what they buy.
Consumers have become much more adept at managing their money and staying in control of their spending.
Whilst being careful with money is an over-riding need, consumers have become more open to offers that represent good value, spending when it represents limited risk.
Consumers continue to look for opportunities, but expect the real deal to be harder to find, steering clear of the potential hidden pitfalls of those deals that seem too good to be true based on surface values.
Some consumers are even taking this sense of responsibility to new levels, where they show concern for others and the impacts their spending may have on their feelings.
Consumers now approach their lives and spending in a manner defined by responsibility, staying within their means and making sure they get the most from what they buy.
Since the recession, I feel I have become better at managing my finances
There are still plenty of opportunities in life, you just need to work a little harder to find them
I've recently put off buying something I could afford because I didn't want to seem insensitive to my friends or neighbours with financial troubles
73% of Irish consumers agree
48% of British consumers agree
68%
61% of Irish consumers agree of British consumers agree
25% of Irish consumers agree
17% of British consumers agree
% change between Jan 2012 results and Feb 2013
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
+10%
+4%
+1%
23 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Create value out of what can be returned
M&S have partnered up with Oxfam to offer customers the opportunity to do some shwopping. If they bring in the
M&S clothes, shoes and bags they no longer need into Oxfam shops, they will receive a £5 off voucher when you spend £35 or more on clothing, home and beauty at M&S.
Extend the life of food in the home
In February 2012, Sainsbury’s removed advice to freeze food "on day of purchase" from its labels and informing customers it can be done up until the use-by date.
The GB's third-largest supermarket chain believes 800,000 tonnes of food a year could be saved from the bin.
Be forward in recommending uses
In a recent ad campaign for Hellmann’s mayonnaise in Brazil, when a shopper checks out with a jar of Hellmann’s in their basket, the cash register recognises it and generates a custom recipe based on Hellmann’s and the other ingredients that are purchased; this recipe is then printed automatically on the shopper’s receipt.
How can you create a value for what is not used? Could this be the packaging or the product?
How can you give advice on how best to keep your products? What are the best ways to store or freeze it?
How can you encourage consumers to do more with your products? What clever ways can you use to get those recommendations across?
24 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
The desire to manage and reduce risks and uncertainty in all aspects of life.
Consumers now approach every decision with caution; assessing every purchase for risk and the problems it may cause if a bad decision is made.
Those paying online or imparting information may need more reassurance about the way in which their information may be used or, greater information about when their purchases will arrive on their door step.
Equally, consumers have become more proactive and even monitor the promotional behaviours of brands and retailers. Even post-purchase consumers will look to see if a deal will appear and will even demand the deal price days, and even weeks, after they purchased.
Brands and companies need to make sure that they are proactive toward this vigilant mindset, offering money back when the price changes or when a better deal can be found elsewhere; actions that can help build affinity for the brand or company by showing that you are on their side.
I find myself thinking twice before making even the smallest day-to-day purchases
If I buy something which goes on sale or promotion soon after I should be able to get a refund on the difference from the company
73% of Irish consumers agree
61% of British consumers agree
42%
48% of Irish consumers agree of British consumers agree
Daylight robbery... I bought gift cards in good faith now they are worthless... They should not have been allowed to sell them, they obviously knew they were going. THIEVES.”
Writes one enraged customers following the announcement that HMV gift cards are now worthless.
% change between Jan 2012 results and Feb 2013
Source: The Futures Company Feeling ,The Pinch 2013 (see appendix for base sample sizes)
+7%
-2%
25 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Giving more protection over possessions and personal data
The Find My iPhone service enables users to locate their lost or stolen phones on a map, display a message on its screen, remotely set a passcode lock, or initiate a remote wipe to delete personal data. As smart phones store increased amounts of personal and sensitive data people will be more and more motivated to apply safeguards to protect these.
Make sure there are no hidden costs and direct comparison is easy
Skroutz is the revamped leading price comparison website in Greece, which includes hidden costs like delivery to ensure comparisons are fair, and also features both reviews and replies from the stores reviewed, so value and service, not just price, are included.
Price match Tesco or give money back
Ocado has promised to match prices at
Tesco by giving customers a voucher worth the difference in price plus 1p, in it's latest drive to attract customers.
Shoppers will be able to compare the cost of their items at the online grocery service with Tesco and claim any vouchers due as long as they spend over
£40.
How can you make it feel safe to do business with you? How can you reassure them that the information they give you will be used appropriately?
26 © 2013 Bord Bia, The Futures Company
Show the real value of your products? How might they save costs in their storage or use?
How can you make sure your consumers always get the best price?

Key challenges and opportunities
Consumers have become more resilient, able to adapt and to make the most of what they buy through being more resourceful.
Consumers through the recession have learnt to resourceful, to make the most of the food they buy and even finding ways to produce some so that they can ease the pressure on their household budgets.
Consumers now value the knowledge and skill that brands and companies can impart to them; appreciating it when things are made easier and the outcomes they can create can get somewhere near the standards of the master craftsman.
Food has been a core area where consumers have focussed, managing waste not just by the way food is managed in the home the home freezer has re-emerged in the fight against food waste but also in the way food is bought and decisions are made in the store.
Brands can build affinity and loyalty by being trusted partners by sharing knowledge and helping empower the consumer in their goal to be more resilient and self-sufficient.
Since the recession I feel a greater need to be as selfsufficient as possible
I throw away less food than I did a few years ago
I make better use of leftover food than I did a few years ago
83%
61% of Irish consumers agree of British consumers agree
77% of Irish consumers agree
62% of British consumers agree
76% of Irish consumers agree
59% of British consumers agree
+10%
+4%
% change between Jan 2012 results and Feb 2013
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
+7%
+3%
+9%
+5%
27 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Share with the neighbours Facilitate the exchange of knowledge
The Amazings is about bridging older and younger generations, valuing the wisdom of the older generations and learning from it. Their vision is for a marketplace for wisdom where over 50s are empowered to stay active and make money from their hobbies. Where hardearned knowledge is passed on to the next generation.
UK-based Casserole is a community network that matches those with extra meals to spare with neighbours who might not be able to cook themselves.
Created by social innovation startup
FutureGov, the site is based on the premise that those with families or housemates who cook together might sometimes find they have cooked too much.
Getting the knowledge, knowhow and ingredients
Chefday is tapping celebrity cuisine talent to offer recipes to everyday chefs, as well as the option to have all of the required ingredients delivered to the user’s house.
Based in New York, Chefday hosts stepby-step videos of top chefs from the city which are free to watch. If the viewer decides they would like to cook the meal themselves, they can order all of the necessary ingredients to be delivered in one bundle.
How can you help consumers connect and share knowledge?
28 © 2013 Bord Bia, The Futures Company
How can encourage consumers to share what they have produced?
How can you bundle both knowledge and services with ingredients?

Key challenges and opportunities
Consumers are looking to reset their priorities in life and to find more meaning; it is no longer about having less but refining what really matters and what ‘more’ means.
The financial crisis has forced consumers to re-evaluate all aspects of their lives and make choices, often forgoing the purchases and activities that felt like indulgences. But, these choices often added the colour and sense of purpose in life.
Consumers are looking for new activities and interests to bring meaning back into everyday life and make life feel more fulfilling again.
Equally, consumers recognise that life is dull without any sense of reward and the need for small treats and moments of fun remains a strong motivation.
However, this is often curtailed by the need to balance choices with other needs in their lives.
Brands can help consumers find a new sense of purpose and, without breaking the bank, fulfil the desire to treat and reward themselves.
Sometimes I just need to treat myself to something nice/fun even if I have to tighten up my budget in other places
The economic downturn has helped me prioritise what's most important in my life
The financial crisis has made me focus on finding new activities and interests to make my life more fulfilling
71%
64% of Irish consumers agree of British consumers agree
69% of Irish consumers agree
51% of British consumers agree
52% of Irish consumers agree
35% of British consumers agree
% change between Jan 2012 results and Feb 2013
Source: The Futures Company, Feeling The Pinch 2013 (see appendix for base sample sizes)
+7%
+7%
29 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Fulfill the desire for treats
Denmark’s Chocolatier Anthon Berg opened a pop-up store in 2012 where people paid not with money but with good deeds, aimed to spread generosity in society. Staff with iPads took people’s
Facebook details and put a branded pledge to perform this deed on their
Wall/Timeline as payment for the chocolate.
Help the consumer to do some good
The Do Some Good app, launched by mobile network Orange in the UK, lets people fill any spare minutes they have by carrying out small actions to help charities. Actions range from taking a survey for a mental health charity to taking cameraphone pictures which can then be sold on for charity.
Allow consumers to excel on their own terms
Nike’s 2012 global campaign celebrates the everyday athlete who strives to excel on their own terms, to set and realise personal goals and achieve their own defining moment of greatness. People are also encourage to share their achievements through social media.
What ways can you help consumers gain rewards?
How can you encourage consumers to help others (and help themselves)?
How can you help consumers redefine what they see as success?
30 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Consumers are rediscovering the value of re-connection both to the people around them but also to their heritage and sense of local identity.
One of the biggest shifts to emerge is the change in orientation from retrenchment to seeking new connections and meaning through those connections.
This desire for connection is evident on a more human level with friends and family, the local community and neighbours. Brands can play a vital role in further fostering these connections and providing new platforms through which these connections can occur.
Brands can also foster a sense of connection on a wider and deeper level.
Brands can help rebuild a sense of pride and belonging by reinforcing the value of having roots and belonging to a larger tribe.
The creating connections is a powerful driver of the emotional state of consumers; a happier and more optimistic consumer is likely to emerge and brands that help drive this new outlook on life likely to be rewarded.
It is important to buy local products to support the economy, even if they sometimes cost more
68% of Irish consumers agree
49% of British consumers agree
Karen Hand Co-Author, Happy Nation?
Prospects for Psychological Prosperity in
Ireland
+4%
-2%
% change between Jan 2012 results and Feb 2013
Source: The Futures Company Feeling, The Pinch 2013 (see appendix for base sample sizes)
31 © 2013 Bord Bia, The Futures Company

Key challenges and opportunities
Re-discover pride in one’s roots and heritage
Hovis is a UK brand of flour and bread with Irish roots. Their recent ad campaign is all about pride of this heritage and taps in to peoples positive perception around things that are rooted in a place and are part of a specific culture or tribe.
Create spaces to connect Help people share their passions
The Ferocious Mingle Market is one of many new markets that have opened up in the city of Dublin in recent years.
People are invited to set up small stalls and sell products they have made themselves. The people who run the market are very focused on providing a place where customers and vendors alike are encouraged to make connections and enjoy the more important things in life –
Like music and dance, movies and food.
Baratto (barter) wine day began in Italy as an idea on Twitter, and now lets people come together to barter and swap wines with each other, creating a fun opportunity for shoppers to get together and rotate the contents of their wine cellars, along with promoting new wines.
How can you help consumers reconnect with their heritage?
32 © 2013 Bord Bia, The Futures Company
How can you create spaces for consumers to connect?
How can you give conumers new passions to talk about? Or, help them find others with the same passion?

Technical Appendix
ECONOMIC ANALYSIS
In order to build up an understanding of the macro context in which we were conducting our research, we carried out analysis of the Irish and British economy through desk research, using a variety of internal and external resources.
CONSUMER RESEARCH
Our consumer research consisted of an update of the Feeling The Pinch (FTP) quantitative survey together with an online forum element.
FTP QUANT SURVEY
The survey was carried out online with a nationally representative sample of 500
Irish adults (age 18+). The fieldwork was carried out during January and
February 2013. Previous waves of the
FTP survey have been carried in July
2008, June 2009, November 2009,
September 2010, March 2011 and
January 2012.
A similar survey has also been carried out in the UK with a sample of 1,000 adults.
QUALITY STATEMENT
All projects are completed in compliance with ISO 20252 .
All researchers / interviewers working on this project are fully trained in quantitative research methods and have been fully briefed on the requirements for this project.
All research sessions were conducted in accordance with the agreed questionnaire.
The analyst has kept accurate and descriptive records of the analysis process, to ensure that any analyses undertaken can be replicated at a later date.
This document has been checked for accuracy of reported data and material.
34 © 2013 Bord Bia, The Futures Company

Technical Appendix
Detail
Questionnaire content
Questionnaire length
Name of the research provider
Name of the research consultancy
Sampling method
Unweighted sample size (n=)
Notes
The questionnaire content varies slightly in each wave. The Feeling the Pinch study includes a number of core questions which are tracked wave on wave, and some additional questions which are added for one or more waves only to track current topics of interest.
Approx. 20-25 minutes
Kantar Operations
The Futures Company
Quota sampling – Quotas set on age and gender (interlocking, 6x2 levels), Income (UK, 2 levels) and Social
Grade (ROI, 2 levels), Region (4 levels)
UK 2008
UK 2009 (Jan)
UK 2009 (Nov)
UK 2010
UK 2011
UK 2012
UK 2013
2,268
2,110
1,002
1,010
1,014
1,007
998
IRE 2008
IRE 2009 (Jan)
IRE 2009 (Nov)
IRE 2010
IRE 2011
IRE 2012
IRE 2013
500
545
501
506
501
503
500
35 © 2013 Bord Bia, The Futures Company

Technical Appendix
Detail
Research methodology
Fieldwork dates
Notes
Self completion questionnaire shown online
(CAWI)
UK 2008
UK 2009 (Jan)
UK 2009 (Nov)
UK 2010
UK 2011
UK 2012
UK 2013
IRE 2008
IRE 2009 (Jan)
IRE 2009 (Nov)
IRE 2010
IRE 2011
IRE 2012
IRE 2013
August 2008
January 2009
November 2009
September 2010
March 2011
January 2012
January/ February 2013
August 2008
January 2009
November 2009
September 2010
March 2011
January 2012
January/February 2013
Detail
Weighting details
Weighting efficiency
Notes
Post-stratification. Data weighted back to sampling quotas.
UK 2008
UK 2009 (Jan)
UK 2009 (Nov)
UK 2010
UK 2011
UK 2012
UK 2013
IRE 2008
IRE 2009 (Jan)
IRE 2009 (Nov)
IRE 2010
IRE 2011
IRE 2012
IRE 2013
92%
95%
97%
98%
100%
100%
100%
62%
76%
55%
98%
89%
88%
90%
36 © 2013 Bord Bia, The Futures Company

Technical Appendix
Subgroup sample size
Country Year Segment
UK 2010
2011
2012
2013
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Unweighted sample size (n=)
410
374
226
367
387
260
360
386
261
335
411
252
Subgroup sample size
Country Year Segment
IRE 2010
2011
2012
2013
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Plain Sailing
Choppy Waters
All Hand on deck
Unweighted sample size (n=)
132
166
208
106
187
208
98
184
221
74
156
270
* A revision to the segment definition in 2012 improved the solution.
The improved solution was applied for all segments from 2010 to 2012.
37 © 2013 Bord Bia, The Futures Company