market analysis of licensed houses hannah roberts natasha scribbins stefaan maene
TRANSCRIPT
MARKET ANALYSIS OF MARKET ANALYSIS OF LICENSED HOUSESLICENSED HOUSES
Hannah RobertsNatasha Scribbins
Stefaan Maene
CONTENTSCONTENTS
• THE CURRENT POSITION OF THE SECTOR
• DEEPLIST• TRENDS• THE FUTURE POSITION OF THE SECTOR• RECCOMENDATIONS AND
CONCLUSIONS
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
THE CURRENT POSITION OF THE CURRENT POSITION OF THE SECTORTHE SECTOR
• The sector currently has 70,675 UK based licensed pubs and bars
• Also comprised of 4,500 nightclubs and discotheques
• The sector has an annual turnover of over 25 billion
• The sector employs in the region of 800,000 people
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
DEMOGRAPHICDEMOGRAPHIC
• 18-24 yrs more visits & 65+ yrs less visits• 31% men & 17% women• 30% North West & 15% South• 29% working, 17% not working & 14% retired• 48% Pre-family, 26% Empty nesters, 17%
family & 13% post-family• Increasing disposable income but less
spending in Licensed houses.
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
0
10
20
30
40
50
60
18-24 25-34 35-44 45-54 55-64 65+
AGE
PE
RC
EN
TA
GE
2-3 TIMES A WEEK
ONCE A MONTH OR MORE
LESS THAN ONCE A MONTH
NEVER
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
ECONOMICALECONOMICAL
• The effects of September 11th 2001• The effects of the Foot & Mouth crisis• The introduction of the Euro• Increased personal disposable income• Minimum wage• Seasonality• High Beer tax rates = 1\ 3
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
ECOLOGICALECOLOGICAL
• Global changes, i.e causes of varied weather
• Conservation of land
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
POLITICALPOLITICAL
• Future EU directives and red tape - employment law, food safetly,
hygiene, health & safety issues, disabled access & minimum wage.
• Taxation laws• The impact of the Euro
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
LEGALLEGAL
• The introduction of new licensing laws• The Disability Discrimination Act• Under-age drinkers• ‘Bootleggers’ – Illegal cross-Channel
imports.• Tough new powers for the police
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
INFORMATIONALINFORMATIONAL
• The influence of information displayed on the internet & Intranet
• Online banking• Publications
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
SOCIAL/ SOCIOLOGICAL/ SOCIAL/ SOCIOLOGICAL/ SOCIOCULTURALSOCIOCULTURAL
• Changes in lifestyle- increased consumption of alcohol in the home (cheaper)
• Cocooning- increased home entertainment• Increased employment of woman in the
industry• Growth in personal disposable income.• Accessibility- Drink driving laws.
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
TECHNOLOGICALTECHNOLOGICAL
• Computerised stock control• Increased use of the internet for
promotion and advertising
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
The Licensed Houses•Pubs•Bars•Nightclubs
New(ish) Entrants:Successful independents
E.g. Breez & Klute
Substitute ProductsBootlegging
and drinking at home
Power of the largeBrewers
High Taxation onAlcohol
People want valuefor money.
Customers have be-come more difficult to satisfy.
PORTERS 5 FORCES MODELPORTERS 5 FORCES MODEL
WETERSPOONS PUNCH GROUP ltd.
THE SHIP, (LOCAL PUB)
SHERATON HOTELBARS
LOW COST HIGH COSTBROAD
NARROW
GENERIC STRATEGIESGENERIC STRATEGIES
COMPETITIVE ADVANTAGECOMPETITIVE
SCOPE
TRENDS WITHIN THE TRENDS WITHIN THE SECTORSECTOR
• Consumers require value for money e.g 78% of the UK population believe that pubs & bars offer better value for money than other outlets.
• 27% prefer going to the pub to eat, instead of eating at home or other outlets.
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
Growth in the overall pub market
69500
70000
70500
71000
71500
72000
72500
1996 1997 1998 1999 2000 2001
Year
Num
ber
of o
utle
ts
19
20
21
22
23
24
£bn Total Pub Outlets
Total Pub Turnover
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
POSITIVE• Licensing laws- boost
trade?• Promotional activity
through internet• Increase of female
market share• Niche branding• Improved quality
standards • Growth in revenue from
accommodation and machines
NEGATIVE• Staff employment• Increased price
competition• The constant increase
of real estate prices• Increased taxation on
alcohol• Increased polarisation
FUTURE POSITION OF THE FUTURE POSITION OF THE SECTORSECTOR
All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites
Recommendations for The Future Recommendations for The Future Position of The Market Position of The Market
• Investment in large licensed retail chains• Unstable future of independent establishments• Greater demand for consistency, and standards of
quality in terms of service and product• Harness individuality and uniqueness• Utilisation of new technology for marketing, sales
and operation• Awareness & preparation of new laws and
legislations• Employment issues- discrimination acts, minimum
wage, working hours, benefits, pension schemes• Emphasis needed on the grey market
CONCLUSIONSCONCLUSIONS• Threat to sector due to the increase in in-home drinking
& cheap alcohol obtained from ‘booze cruises’• Possible negative effects of late licensing may mean
current trade is simply spread over a longer period of time. The costs involved may shadow the advantages.
• Expensive effects from the DDA• The overall sector is stable & investment within the
large retail chains is advantageous • Revenue is remaining constant in an increasingly
competitive & populated leisure environment• Increasing trade of food within licensed premises-
provides value for money
““The British pub is renowned the The British pub is renowned the world over as a unique social centre, world over as a unique social centre,
the focus of community life, and the focus of community life, and influence on popular culture, a influence on popular culture, a source of history and a tourist source of history and a tourist
attraction. Yet we owe it all to an attraction. Yet we owe it all to an invading army- which preferred wine invading army- which preferred wine
to beer- almost 2,000 years ago.”to beer- almost 2,000 years ago.”
www.BRLA.co.uk the news letter : “all thanks to the Romans”