Summary
"UK Foodservice Industry Outlook to 2010: Supplier Marketing & Sales Strategies and the Impact of Recession and Recovery" is a new report published by in association with ICD Research that analyzes how foodservice food, drink, catering equipment suppliers and service providers media spend, marketing and sales strategies & practices and business are being affected by the recession. In an uncertain economic climate this report gives you access to the media channel spending outlooks, media budgets, marketing agency selection criteria, business challenges and sales tactics of foodservice suppliers. The report also identifies suppliers and foodservice operators and caterers future growth, M&A and investment expectations. The research is based on an extensive survey of senior and C-level industry executives from our market leading panels.
Scope
-The opinions and forward looking statements of over 300 industry executives have been captured in our in-depth survey, of which over 90% represent Owner or C-level, Directorial & Managerial respondents
-This report covers data and analysis on media channel spend, marketing and sales practices and industry developments by suppliers to the UK foodservice industry
-The report examines current practices and provides future expectations over the next 12-24 months
-The research is based on primary survey research conducted by in association with ICD Research accessing its B2B panels comprised of senior purchase decision makers and leading supplier organizations
-Key topics covered include media spend activity, marketing and sales behaviors & strategies by suppliers to the foodservice industry and how these have been affected by the recession, as well as threats & opportunities, investment outlook and business confidence among both buyers and suppliers.
-In the report buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats
-The report provides qualitative analysis of key industry opportunities and threats and contains full survey results
-The geographical scope of the research is UK-wide-drawing on the activity and expectations of leading industry players across the UK
Highlights
-37% of industry players are looking to increase their marketing expenditure over the next 12 months, with only 29% looking to decrease it
-37% of industry players are adapting product portfolios or positioning to meet clients cost pressures
-50% of companies believe that the demonstration of confidence to their customers from increased marketing activity in the current business climate can give their company an edge
Reasons to buy
-Benchmark your sales and marketing plans with industry competitors to effectively determine strategy
-Identify the specific marketing approaches your competitors are using to win business during the recessionary climate
-Better promote your business by aligning your capabilities and business practices with your customer’s changing needs during these times of market uncertainty
-Secure stronger customer relationships by understanding the leading business concerns and changing strategies of buyers in the foodservice industry
-Effectively plan your business strategies
-Predict how the industry will grow, consolidate and where it will stagnate
-Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers in the industry
Table Of Contents
1.1 List Of Tables 4
1.2 List Of Figures 6
2 Introduction 8
2.1 What is This Report About? 8
2.2 Methodology 8
2.3 Profile of Survey Respondents 9
3 Executive Summary 13
3.1 The UK Foodservice Operator Industry Is Generally Optimistic About the Recovery of the UK Economy 13
3.2 Buyers in the Industry Are More Optimistic About Revenue Growth than Suppliers 13
3.3 The UK Foodservice Supplier Companies Will Be Decreasing Marketing Spend Over the Next 12 Months 14
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 14
3.5 Suppliers And Buyers Are Adapting Their Marketing And Sales Strategies During Recession And Recovery To Face Immediate Business Concerns 15
4 Economic Outlook and Confidence 16
4.1 The UK Economy Recovery Expectations 16
4.2 Revenue Growth Expectations 20
5 The UK Foodservice Industry Investment Outlook 26
5.1 Fastest and Slowest Growing Foodservice Products & Services 26
5.2 M&A Activity Predictions 31
5.3 Supplier’s Industry Outlook 35
6 Recession and Recovery: Threats & Opportunities for the UK Foodservice Industry 40
6.1 Leading Business Concerns Due to Recession 40
6.2 Key Actions to Overcome Business Threats 47
6.3 Key Actions to Maintain and Win Buyer Business 52
6.4 Leading Recession Related Business Opportunities 60
7 Marketing Spend Activity 65
7.1 Annual Marketing Budgets: Suppliers To The Industry 65
7.2 Expected Change In Marketing Expenditure Levels: Suppliers To The Industry 67
7.3 Change In Expenditure By Media Channel: Suppliers To The Industry 70
7.4 Future Investment In Marketing & Sales Technology: Suppliers To The Industry 75
8 Marketing & Sales Behaviors & Strategies & The Impact Of Recession & Recovery 79
8.1 Key Marketing Aims: Suppliers To The Industry 79
8.2 Marketing & Sales Practices During Recession & Recovery: Suppliers To The Industry 84
8.3 Expected Adaptations To Marketing Activities During Recession & Recovery: Suppliers To The Industry 87
8.4 Critical Success Factors For Choosing A Marketing Agency: Suppliers To The Industry 91
8.5 Marketing Attitudes & Approaches: Suppliers To The Industry 95
9 Appendix 97
9.1 Full Survey Results-Closed Questions 97
9.2 Methodology 102
9.3 Contact Us 103
9.4 About 103
9.5 Disclaimer 103
1.1 List Of Tables
Table 1: Count Of UK Foodservice Industry Survey Respondents By Company Type (Number Of Respondents), 2009 Industry Survey 9
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), UK Foodservice Industry, 2009 10
Table 3: Buyer Respondents By Organisation’s Global Turnover (% Buyer Respondents), UK Foodservice Industry, 2009 10
Table 4: Buyer Respondents By Organisation’s Total Employee Size (% Buyer Respondents), UK Foodservice Industry, 2009 11
Table 5: Supplier Respondents By Job Role (% Supplier Respondents), UK Foodservice Industry, 2009 11
Table 6: Supplier Respondents By Organisation’s Global Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 12
Table 7: Supplier Respondents By Organisation's Total Employee Size (% Supplier Respondents), UK Foodservice Industry), 2009 12
Table 8: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Foodservice Procurement Budget (% Buyer Respondents), 2009 18
Table 9: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Company Type: Profit Sector Foodservice Operators, Cost Sector Foodservice Operators, Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% All Respondents), 2009 20
Table 10: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators, Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% Respondents), 2009 22
Table 11: Wholesaler-Food & Drink Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Wholesaler-Food & Drink Supplier Respondents), 2009 28
Table 12: Equipment & Other Products & Services Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Equipment & Other Products & Services Supplier Respondents), 2009 30
Table 13: Key Growth Areas In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 36
Table 14: Key Growth Areas In The UK Foodservice Industry (Analysis Of CEO/MD/Board Level Supplier Respondents), 2009 37
Table 15: Key Declining Areas In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 38
Table 16: Key Declining Areas In The UK Foodservice Industry (Analysis Of CEO/MD/Board Level Supplier Respondents), 2009 39
Table 17: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Vs. Wholesaler-Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 43
Table 18: Profit Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 45
Table 19: Cost Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 47
Table 20: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of All Respondents), 2009 48
Table 21: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry-Senior Level Responses Only (Analysis Of CEO/MD/Board Level Respondents), 2009 49
Table 22: Most Important Actions Being Implemented By Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers Respondents), 2009 50
Table 23: Most Important Actions Being Implemented By Profit Sector Foodservice Operators, Cost Sector Foodservice Operators To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of Profit Sector Foodservice Operators, Cost Sector Foodservice Operators Respondents), 2009 51
Table 24: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 55
Table 25: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% Buyer Respondents), 2009 57
Table 26: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Procurement Budget (% Buyer Respondents), 2009 58
Table 27: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 60
Table 28: Leading Business Opportunities During The Recession In The UK Foodservice Industry (Analysis Of All Respondents), 2009 61
Table 29: Leading Business Opportunities During The Recession In The UK Foodservice Industry-Senior Level Responses Only (Analysis Of CEO/MD/Board Level Respondents),2009 62
Table 30: Leading Business Opportunities For Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers During The Recession In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 63
Table 31: Leading Business Opportunities For Profit Sector Foodservice Operators, Cost Sector Foodservice Operators During The Recession In The UK Foodservice Industry (Analysis Of Buyer Respondents), 2009 64
Table 32: Annual Marketing Budget In GBP By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 67
Table 33: Expected % Change In Marketing Expenditure Levels Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 69
Table 34: Expected Increase Or Decrease In Expenditure By Media Channel Over The Next 12 Months: Wholesaler or Food & Drink Supplier (% Wholesaler or Food & Drink Supplier Respondents), UK Foodservice Industry, 2009 72
Table 35: Expected Increase Or Decrease In Expenditure By Media Channel Over The Next 12 Months: Equipment & Other Products & Services Supplier (% Equipment & Other Products & Services Supplier Respondents), UK Foodservice Industry, 2009 74
Table 36: Expected Marketing & Sales Technologies To Invest In Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 78
Table 37: Key Marketing Aims Over The Next Year: Wholesaler or Food & Drink Supplier (% Wholesaler or Food & Drink Supplier Respondents), UK Foodservice Industry, 2009 80
Table 38: Key Marketing Aims Over The Next Year: Equipment & Other Products & Services Supplier (% Equipment & Other Products & Services Supplier Respondents), UK Foodservice Industry, 2009 81
Table 39: Most Rated New Media Channels For New Business Generation By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 85
Table 40: Expected Adaptations To Marketing Activities During Recession & Recovery By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 89
Table 41: Critical Success Factors For Choosing A Marketing Agency By Expected Change In Future Marketing Expenditure (% Supplier Respondents), UK Foodservice Industry, 2009 94
Table 42: Critical Success Factors For Choosing A Marketing Agency By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 95
Table 43: Marketing Attitudes & Approaches -Level Of Agreement With The Following Statements: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 96
Table 44: Full Survey Results-Closed Questions 97
1.2 List Of Figures
Figure : Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 15
Figure 1: UK Foodservice Industry Expectations Of UK Economy Recovery Timings (% All Respondents), 2009 17
Figure 2: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Foodservice Procurement Budget (% Buyer Respondents), 2009 18
Figure 3: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Company Type: Profit Sector Foodservice Operators, Cost Sector Foodservice Operators, Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% All Respondents), 2009 19
Figure 4: Company Revenue Growth Optimism In The UK Foodservice Industry (% All Respondents), 2009 21
Figure 5: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators, Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% Respondents), 2009 22
Figure 6: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators -By Foodservice Procurement Budget (% Profit Sector Foodservice Respondents), 2009 23
Figure 7: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Cost Sector Foodservice Operators -By Foodservice Procurement Budget (% Cost Sector Foodservice Respondents), 2009 24
Figure 8: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Suppliers (Wholesaler-Food & Drink Suppliers, Equipment & Other Products & Services Suppliers) -By Company Turnover (% Supplier Respondents), 2009 25
Figure 9: Wholesaler-Food & Drink Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Wholesaler-Food & Drink Supplier Respondents), 2009 27
Figure 10: Equipment & Other Foodservice Products & Services Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Equipment & Other Foodservice Products & Services Supplier Respondents), 2009 29
Figure 11: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Profit Sector Foodservice Operator Industry (% Profit Sector Foodservice Operator Industry Respondents), 2009 32
Figure 12: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Wholesaler-Food & Drink Supplier Industry (% Wholesaler-Food & Drink Supplier Industry Respondents), 2009 33
Figure 13: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Equipment & Other Foodservice Products & Services Suppliers Industry (% Equipment & Other Foodservice Products & Services Suppliers Industry Respondents), 2009 34
Figure 14: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 41
Figure 15: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Vs. Wholesaler-Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 42
Figure 16: Profit Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 44
Figure 17: Cost Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 46
Figure 18: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 54
Figure 19: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% Buyer Respondents), 2009 56
Figure 20: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Region (% Buyer Respondents), 2009 59
Figure 21: Annual Marketing Budget In GBP: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 66
Figure 22: Expected % Change In Marketing Expenditure Levels Over The Next 12 Months: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 68
Figure 23: Expected % Change In Marketing Expenditure Levels Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 69
Figure 24: Expected Increase Or Decrease In Expenditure By Media Channel Over The Next 12 Months: Wholesaler or Food & Drink Supplier (% Wholesaler or Food & Drink Supplier Respondents), UK Foodservice Industry, 2009 71
Figure 25: Expected Increase Or Decrease In Expenditure By Media Channel Over The Next 12 Months: Equipment & Other Products & Services Supplier (% Equipment & Other Products & Services Supplier Respondents), UK Foodservice Industry, 2009 73
Figure 26: Expected Increase In Expenditure By Media Channel Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 75
Figure 27: Expected Marketing & Sales Technologies To Invest In Over The Next 12 Months: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 76
Figure 28: Expected Marketing & Sales Technologies To Invest In Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 78
Figure 29: Key Marketing Aims Over The Next Year: Wholesaler or Food & Drink Supplier (% Wholesaler or Food & Drink Supplier Respondents), UK Foodservice Industry, 2009 80
Figure 30: Key Marketing Aims Over The Next Year: Equipment & Other Products & Services Supplier (% Equipment & Other Products & Services Supplier Respondents), UK Foodservice Industry, 2009 81
Figure 31: Most Important Key Marketing Aims Over The Next Year By Expected Change In Future Marketing Expenditure (% Supplier Respondents), UK Foodservice Industry, 2009 82
Figure 32: Most Important Key Marketing Aims Over The Next Year By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 83
Figure 33: Most Rated New Media Channels For New Business Generation: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 84
Figure 34: Most Rated New Media Channels For New Business Generation By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 85
Figure 35: Importance Of ROI Metric Types For Measuring Media Campaigns: Wholesaler or Food & Drink Supplier (% Wholesaler or Food & Drink Supplier Respondents), UK Foodservice Industry, 2009 86
Figure 36: Importance Of ROI Metric Types For Measuring Media Campaigns: Equipment & Other Products & Services Supplier (% Equipment & Other Products & Services Supplier Respondents), UK Foodservice Industry, 2009 87
Figure 37: Expected Adaptations To Marketing Activities During Recession & Recovery: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 88
Figure 38: Expected Adaptations To Marketing Activities During Recession & Recovery By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 89
Figure 39: Expected Change In Face-To-Face Meetings Over The Next 12 Months: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 90
Figure 40: Expected Change In Face-To-Face Meetings Over The Next 12 Months By Company Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 91
Figure 41: Critical Success Factors For Choosing A Marketing Agency: Wholesaler or Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier (% Supplier Respondents), UK Foodservice Industry, 2009 92
Figure 42: Critical Success Factors For Choosing A Marketing Agency By Expected Change In Future Marketing Expenditure (% Supplier Respondents), UK Foodservice Industry, 2009 93