Next Generation Convenience Food And Drinks Volume Two: Occasion, Location and 'On-The-Go'

Executive Summary
Introduction
Market Analysis
Convenience Locations
Convenience Occasions
Convenience ‘on-the-move’
NPD in Convenience
Industry Case Studies
Industry Survey
Conclusions and Future Outlook

Chapter 1 Introduction
Summary
Introduction
The market for convenience food and drinks products

Chapter 2 Market Analysis
Summary
Introduction
The convenience market by product segment - an overview
The market for prepared meals is growing
Speed-scratch meal components
Convenience is key to the success of quick snack meals
Two key trends in the market for hand-held savoury snacks
‘On-the-move’ food and drinks markets
Journey numbers are increasing
UK leads the way in ‘on-the-move’ consumption
Hot drinks are profitable ‘on-the-move’
US consumers accept the ‘grab and go’ culture

Chapter 3 Convenience Locations: Expanding Distribution Channels
Summary
Introduction
Location and distribution strategies
‘On-the-move’ distribution channels
Convenience location: bringing products closer to the consumer
Vending machines offer many new advantages
Vending machines are moving towards cash-less operations
Vending machines are cost effective for employers
Product variety still poses a problem for vending machines
Vending machines per thousand people
The development of mobile kiosks
Taking share from foodservice
Building brand awareness with mobile kiosks
Location strategies for mobile kiosks
Office-based kiosks
Mobile kiosks and convenience packaging
Retail and foodservice units in convenience
Growth in petrol station convenience stores
Convenience formats are ideal channels for snack products

Chapter 4 Convenience Occasions: Targeting Social Gatherings
Summary
Introduction
Innovation in convenience occasions
Innovation in breakfast markets was not an option
Cereals have been transformed into snack products
The demand for both convenience and quality is driving growth at lunch and dinner
Lunch culture is changing
Desk dining on the increase as consumers learn to multi-task during lunch
Innovation in lunchtime and ‘grazing’ occasions
The focus of meal components remains the ‘main meal’ occasion
Identifying ‘new’ consumption occasions
But ‘on-the-go’ remains the priority

Chapter 5 Convenience ‘On-The-Move’
Summary
Introduction
Convenience in context: ‘on-the-go’ push and pull drivers
Convenience ‘on-the-move’
Catalysts for ‘on-the-move’ consumption
Profiling the ‘on-the-move’ consumer
There is a willingness to use journey time for multi-tasking
Transport profile of ‘on-the-move’ consumption
Cultural heritage plays an important role
Distribution strategies will have a critical effect on the success of ‘on-the-move’ initiatives.

Chapter 6 New Product Development in Convenience
Summary
Introduction
NPD in convenience - an overview
Convenience implications of NPD
Health implications of NPD
Pleasure implications of NPD
NPD in convenience, by product category
Chilled and frozen ready meals: growth through innovation
NPD in convenience ‘on-the-move’
Developing consumer awareness
Taking convenience upmarket
NPD success with drinks ‘on-the-move’

Chapter 7 Case Studies in Convenience
Summary
Introduction
Case studies in mobile kiosks
Café Nescafé
Café Nescafé’s concept
Café Nescafé’s strategy
Retailers move into travel locations
Case studies in fast food
Developments in fast foods
McDonald’s
McDonald’s concept
McDonald’s strategy
Burger King
Burger King’s concept
Burger King’s strategy
KFC
KFC’s concept
KFC’s strategy

Chapter 8 Convenience Industry Opinion Survey
Summary
Introduction
The convenience market in 2002
97% forecast growth in 2002
Location and distribution channels
Petrol stations and city-centre convenience stores carry the hopes for growth
Online sales are ‘inconvenient’
Opportunities in convenience occasions
‘On-the-go’ and snacking occasions offer the most attractive growth potential
Lunchtime opportunities grab the attention in the ‘traditional’ occasions
The future of the convenience market
Targeting new occasions is second in importance for the industry only to NPD
‘Out of store’ strategies are most important to convenience markets in the UK and US
UK the target for new convenience occasions
An experienced panel of respondents

Chapter 9 Conclusions and Future Outlook
Summary
Introduction
Future growth in convenience
NPD plots the way ahead
Future on-the-move consumption by country
Forecast trends in convenience
Distribution strategies have a key role to play
Can manufacturers develop new convenience occasions?
Forecasting developments ‘on-the-move’
The greatest potential is in hand-held snacks
Opportunities in ‘functional convenience’

Appendix
Primary research methodology
Terms and abbreviations used in this report
Food and drinks segmentation table
Index

List of Figures
Figure 1.1: The meal solutions universe
Figure 4.2: Rumblers on-the-move cereal innovation
Figure 5.3: Push and pull drivers of ‘on-the-go’ consumption
Figure 5.4: Summary of ‘on-the-go’ drinks, by occasion, by country
Figure 5.5: Catalysts for ‘on-the-move’ consumption
Figure 5.6: Strengths and weaknesses of modes of transport for ‘on-the-move’ consumption
Figure 6.7: The mega-trends shaping NPD
Figure 7.8: Mobile kiosks SWOT analysis
Figure 7.9: Café Nescafé
Figure 8.10: How will the convenience food and drinks market perform?
Figure 8.11: How important are the following factors when influencing convenience food and drinks market growth in 2002?
Figure 8.12: How important will the following distribution channels be in the market for convenience products (part 1)?
Figure 8.13: How important will the following distribution channels be in the market for convenience products (part 2)?
Figure 8.14: How important will the following distribution channels be in the market for convenience products (part 3)?
Figure 8.15: How do you rate growth opportunities in each of the following 'occasional' sectors (part 1)?
Figure 8.16: How do you rate growth opportunities in each of the following 'occasional' sectors (part 2)?
Figure 8.17: How do you rate growth opportunities in each of the following 'occasional' sectors (part 3)?
Figure 8.18: Which factors will drive growth in the convenience market over the next two to three years?
Figure 8.19: By country, how important are ‘out of store’ distribution strategies to manufacturers and retailers in the next five years?
Figure 8.20: Which countries will provide the highest growth potential for additional convenience ‘occasions’ in the next five years?
Figure 8.21: Industry respondent’s time spent in industries

List of Tables
Table 2.1: Food ‘on-the-move’ market value by country and market segment, 2001
Table 2.2: Drinks ‘on-the-move’ market value by country and market segment, 2001
Table 2.3: US ‘on-the-go’ sales by category, 1996—2000
Table 3.4: Penetration of vending machines, 1999—2001
Table 3.5: Penetration of petrol station convenience stores, 1999—2001
Table 6.6: Innovatory convenience product launches by country, 2001
Table 6.7: Innovatory convenience product launches by category, 2001
Table 7.8: McDonald’s restaurants, 1996—2001
Table 7.9: Burger King restaurants, 2001
Table 7.10: KFC restaurants, 1997—2001
Table 9.11: Food on-the-move: predicted market value, 2006
Table 9.12: Drinks on-the-move: predicted market value, 2006
Table 9.13: US ‘on-the-go’ sales by category, 2000—2005
Table 9.14: Terms and abbreviations used in this report
Table 9.15: Terms and abbreviations used in this report
Table 9.16: Definitions of food and drinks segments used in this report
Table 9.17: Definitions of food and drinks segments used in this report
Table 9.18: Definitions of food and drinks segments used in this report