market analysis of licensed houses hannah roberts natasha scribbins stefaan maene

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


DEEPLISTDEEPLIST

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.


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


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


ECOLOGICALECOLOGICAL

• Global changes, i.e causes of varied weather

• Conservation of land


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


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


INFORMATIONALINFORMATIONAL

• The influence of information displayed on the internet & Intranet

• Online banking• Publications


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.


TECHNOLOGICALTECHNOLOGICAL

• Computerised stock control• Increased use of the internet for

promotion and advertising


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.


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


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


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”

THE ENDTHE END

THANKYOU FOR YOUR THANKYOU FOR YOUR TIME!TIME!

All information was gathered from: Mintel Reports(1998-2001), and BRLA, AOL and publican websites

market analysis of licensed houses hannah roberts natasha scribbins stefaan maene

Documents

publican websites

mintel reports

deeplist slide

influence of information

forces model slide

sector reccomendations

sector employs

licensed pubs