The Licensed Houses Sector Review Michael Common Lorelle Stroud Akiko Kobayashi Coris Leachman Nick...
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Transcript of The Licensed Houses Sector Review Michael Common Lorelle Stroud Akiko Kobayashi Coris Leachman Nick...
The Licensed Houses Sector Review
Michael CommonLorelle Stroud
Akiko KobayashiCoris Leachman
Nick BrookesDebbie Mitchell
Introduction Definition
Topics Covered
Conclusion
DefinitionAn establishment retailing alcoholic beverages either on or off premises
On Licence: Definition“…this allows the holder to sell intoxicating drink for the consumption on or offthe named premises. It may be restricted dependent upon the public need.”
Off Licence: Definition “…this allows the sale of intoxicating drinks for consumption off the named premises only.”
An alcoholic drink: DefinitionAlcohol free: Must contain NO MORE THAN 0.05% a.b.v.
Low alcohol: Must contain NO MORE THAN 1.2% a.b.v.
Topics Covered
• P.E.S.T.E analysis• Consumer trends• Key Markets• Competitive structure• Competitors• SWOT analysis• Scenario Analysis• Future?
P.E.S.T.E AnalysisPolitical• Legislative changes• Licensing laws
Economical• Economic state has an effect on people’s willingness to travel and spend• Cheaper imports – booze cruises
Social• Growing concerns about health issues and drink-driving• Larger disposable income amongst young people• Social trends are being catered for by the market. I.e. more women drinking now, more Alco-Pops
Technological• Internet, WAP,& Palm top act as promotional and recruitment tool• Computers have also increased efficiency in till, reception, office and security systems
Environmental• Weather conditions affect people decisions to go out or stay in.• The climate can cause damage to property in serious storms
Consumer Trends
Expenditure on Alcoholic drinks in & out of HomeBeer
£-
£2
£4
£6
£8
£10
£12
£14
1994 1995 1996 1997 1998 1999
Year
Bili
ions
Spe
nt (£
)
In home
Out of Home
Expenditure on Alcoholic drinks in & out of HomeSpirits
2.62.72.82.9
33.13.23.33.43.5
1994 1995 1996 1997 1998 1999
Year
Bili
ons
Spen
t (£)
In HomeOut of Home
Expenditure on Alcoholic drinks in & out of HomeWine/Cider
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1994 1995 1996 1997 1998 1999
Year
Bil
lio
ns
Sp
ent
(£)
In Home
Out of Home
Key Markets• Town / City Pubs (e.g. Hogshead, Yates, O Neills)
A, B, C1 + C2 (18-44 years)• Rural Public Houses (Predominately tenant run e.g. Queens legs, Cockwell
Inn)A, B, C1 + E
• Urban Public Houses C1, C2 + D (18-34 years)
• Family Focused Public Houses (e.g. Brewers Fayre, Harvester, etc.)A, B, C1 + C2 young families
• Wine BarsABC1 (working females)ABC1 25-24 year male
• Chameleon BarsOver 25s
• Night Clubs15-24, and over 25s
Jicnars social grading system
A- Upper Middle classB - Middle classC1 - Lower Middle classC2 - Skilled working classD - Working classE - Lowest income
Future Key Markets
Town/City Public Houses• Working women from the ABC1s• Older middle youth • Grey marketRural Public houses• ABC1 + EUrban Public Houses• C1, C2 + D (predominately male)Wine Bars• Working women from the ABC1s• 25-44 ABC1 male
Chameleon BarsOver 25sNightclubs15-24sFamily Focused pubsYoung families Grandparents with grandchildrenGrey market
Jicnars social grading system
A- Upper Middle classB - Middle classC1 - Lower Middle classC2 - Skilled working classD - Working classE - Lowest income
D
BA
C
Competitive Structure
Marketing Intensity
Geo
grap
hica
l C
over
age
A –Multiple pub operator mostly non-branded e.g. NomuraB –Multiple pub brand e.g. Whitbread, BassC – Smaller Entrepreneurial operators e.g. YatesD – Independent Pubs e.g. The Xchange
Growth in the pub market
Growth in pub turnover
Competitive Rivalry
Potential Entrants
BuyersSuppliers
Substitutes
Bargaining Power
Threat of Entrants
Bargaining Power
Threat of Substitutes
Porters Five Forces Analysis
Reference: M.E. Porter, Competitive Strategy, 1980
(With specific application to Licensed Houses)
S.W.O.T. Analysis
Strengths•Constant demand•Customer focused•Social Experience•Ability to cater to a specific market •Branding and merchandising
Weaknesses•Competition for independent licensed houses•Opportunity Costs, e.g. drugs, cinema•Booze cruises•Drink driving promotion•Negative public image – e.g. alcoholism and violence.
Opportunities•Relaxed licensing laws•Grey markets•Food sales•Cannabis toleration•Diversification/differentiation•Internet, WAP, Palm - (promotional, info and recruitment tool)•Market penetration
Threats•Cannabis toleration•Booze cruises•Home entertainment•Economies of scale from larger companies•Public Health conscience
Scenario Analysis
Optimistic
Realistic
Pessimistic
Future Analysis
Licensed Houses