Consumer Outlook 2010 Introduction Confidence Behaviour Strategies & Tactics Introduction Confidence Behaviour Strategies & Tactics 2008 JULY 2009 FEBRUARY 2009 DECEMBER 500 2000 Introduction Confidence Behaviour Strategies & Tactics Do you know anyone who has been made redundant in the past 12 months? Yes No Ireland 13 24 47 75 86 52 1 1 1 Aug 08 Feb 09 Dec 09 Yes No Ireland GB 13 24 46 47 40 72 75 86 52 52 57 27 1 1 1 1 2 2 Aug 08 Feb 09 Dec 09 Jul 08 Feb 09 Dec 09 Less deep pockets for 2010 “How worried are you about the following issues?” Ireland % 70 60 50 60 40 30 41 48 45 41 32 20 10 0 The cost of petrol Aug 08 The cost of food Feb 09 Dec 09 “How do you expect to fare in the next 12 months?” Worse off About the same Ireland 41 50 67 43 40 24 14 3 Aug 08 8 5 Feb 09 Dec 09 1 4 Better off Don't know Worse off About the same Better off Ireland 41 Don't know GB 50 67 56 43 40 31 46 42 40 49 24 14 3 Aug 08 8 5 9 9 9 4 4 3 3 Feb 09 Dec 09 Jul 08 Feb 09 Dec 09 1 “In the next 12 months, how do you think your spending will compare with the last 12 months?” Consumers anticipate spending less 35 75% Decrease a lot 40 Decrease a little Stay about the same Increase a little 19 4 IRELAND Increase a lot Consumers anticipate spending less 35 15 28 75% 43% Decrease a lot 40 41 Decrease a little Stay about the same Increase a little Increase a lot 19 13 4 IRELAND GB Implications • Restricted budgets will remain • Caution in the marketplace: Pursuit of value / good deals likely to continue Consumers likely to spend within their means New debt will be avoided • 2009 survival strategies likely to remain in place in 2010 Introduction Confidence Behaviour Strategies & Tactics Shop for fun and pleasure 63% 66% 51% Aug 08 Feb 09 Dec 09 Less likely to do in the next 12 months Purchase indulgences 61% 60% Feb 09 Dec 09 51% Aug 08 Less likely to do in the next 12 months Give money to charities 40% Aug 08 46% 46% Feb 09 Dec 09 Less likely to do in the next 12 months Choose special offers & deals 85% 85% Feb 09 Dec 09 77% Aug 08 More likely to … Pay attention to grocery prices 86% 76% Aug 08 Feb 09 More likely to … 84% Dec 09 Put off buying until the sales 74% 82% 66% Aug 08 Feb 09 More likely to … Dec 09 SHOPPING AROUND I shop at several shops to get the best prices, rather than doing one big shop … Ireland GB 55% 36% 34% 22% Feb 09 Dec 09 Feb 09 Dec 09 I shop at discount retailers more than I used to Ireland GB 52% 37% 22% Feb 09 Dec 09 Feb 09 29% Dec 09 Discount retailers sell good quality products Ireland 63% GB 68% 46% Feb 09 Dec 09 Feb 09 50% Dec 09 The changing use of leisure time Look for cheaper eat-out options Ireland 81% 64% Aug 08 71% Feb 09 More likely to … Dec 09 New ways to spend leisure time Ireland 62% Aug 08 70% Feb 09 More likely to … 73% Dec 09 Introduction Confidence Behaviour Strategies & Tactics Cope Getting the best value from the marketplace Cope Getting the best value from the marketplace Retreat The comfort of the home and the known and familiar Cope Getting the best value from the marketplace Retreat The comfort of the home and the known and familiar Fun Finding new ways to bring fun & indulgence back into life Cope Reduce the barriers to purchase Cope Reduce the barriers to purchase Cope Reduce the barriers to purchase Cope Reduce the barriers to purchase Cope Reach out to your customers Cope Reach out to your customers Cope Offer better value that enhances your brand Cope Offer better value that enhances your brand Cope Help consumers be resourceful Cope Reward loyalty Cope Make your money go further through smart choices Cope Make the repurchase process fun Cope Getting the best value from the marketplace Retreat The comfort of the home and the known and familiar Fun Finding new ways to bring fun & indulgence back into life Retreat Help energise the home for social activities Retreat Make fine dining at home accessible Retreat Highlight the rewards of family life Retreat The comfort of the known and familiar Retreat The comfort of the known and familiar Retreat The comfort of the known and familiar Retreat The comfort of the known and familiar Cope Getting the best value from the marketplace Retreat The comfort of the home and the known and familiar Fun Finding new ways to bring fun & indulgence back into life Fun Finding new ways to bring fun & indulgence back Fun Finding new ways to bring fun & indulgence back Fun Finding new ways to bring fun & indulgence back Fun Encourage a moment of joy Fun Finding new ways to bring fun & indulgence back Fun Finding new ways to bring fun & indulgence back The game combines wine tasting & tryvertising Fun Finding new ways to bring fun & indulgence back The game combines wine tasting & tryvertising Fun Provide an unexpected reward Introduction Confidence Behaviour Strategies & Tactics Introduction Confidence Behaviour Strategies & Tactics BIOLOGICAL IMPERATIVE If I see the world through John Smith’s eyes, I can sell John Smith what John Smith buys … If you wish to persuade me, you must think my thoughts, feel my feelings, and speak my words. Marcus Tullius Cicero BIOLOGICAL IMPERATIVE Cope Getting the best value from the marketplace Retreat The comfort of the home and the known and familiar Fun Finding new ways to bring fun & indulgence back into life Consumer Outlook 2010