MARKET ANALYSIS OF LICENSED HOUSES

1. MARKET ANALYSIS OF LICENSED HOUSES Hannah Roberts Natasha Scribbins Stefaan Maene

2. CONTENTS • 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

3. THE CURRENT POSITION OF THE 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

4. DEEPLIST

5. DEMOGRAPHIC • 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

6. All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites

7. ECONOMICAL • 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

8. ECOLOGICAL • Global changes, i.e causes of varied weather • Conservation of land All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites

9. POLITICAL • 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

10. LEGAL • 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

11. INFORMATIONAL • 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

12. SOCIAL/ SOCIOLOGICAL/ SOCIOCULTURAL • 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

13. TECHNOLOGICAL • 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

14. PORTERS 5 FORCES MODEL New(ish) Entrants: Successful independents E.g. Breez & Klute Power of the large Brewers High Taxation on Alcohol People want value for money. Customers have be- come more difficult to satisfy. • The Licensed Houses • Pubs • Bars • Nightclubs Substitute Products Bootlegging and drinking at home

15. GENERIC STRATEGIES COMPETITIVE ADVANTAGE COMPETITIVE SCOPE LOW COST HIGH COST BROAD WETERSPOONS PUNCH GROUP ltd. NARROW THE SHIP, (LOCAL PUB) SHERATON HOTELBARS

16. TRENDS WITHIN THE SECTOR • 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

17. All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites

18. 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 SECTOR All information was gathered from: Mintel Reports, and BRLA, AOL and publican websites

19. Recommendations for The Future 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

20. CONCLUSIONS • 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

21. “The British pub is renowned the world over as a unique social centre, the focus of community life, and influence on popular culture, a source of history and a tourist attraction. Yet we owe it all to an invading army- which preferred wine to beer- almost 2,000 years ago.” www.BRLA.co.uk the news letter : “all thanks to the Romans”

22. THE ENDTHANKYOU FOR YOUR TIME! All information was gathered from: Mintel Reports(1998-2001), and BRLA, AOL and publican websites