JML Consumer Insight 2006JML Consumer Insight 2006

Method

• TNS – Consumer Panel circa. 20,000 households

• Outlook – Exit Polls in Woolworths stores 400 interviewees

TNS Results – Brief Summary (1)

• 2.4 million households buy JML products (10% of UK households)

• The average JML consumer purchases 1.5 times per year

• Average spend on JML products per year is £11.39 per consumer

• JML have in the past 2 years– Increased JML buyers by 11.4%– Increased average price per unit by 3.6%– Increased average trip volume (packs) by 2.7%

TNS Results – Brief Summary (2)

Non Foods - Demographic Map - Buyer Profile %

JML 2005

JML 2004

JML 2006

Homebase

Pound Stretcher

B&Q

Focus/Do It All

Costco

WH SmithWilkinson

Woolw orth

Marks and Spencer

Boots

Independents and Symbols

Co-Op

Hard DiscountersWaitrose

Iceland

Kw ik Save Somerfield

Morrisons

Asda

Sainsbury

Tesco

Total Non Foods

20

25

30

35

40

45

50

20 25 30 35 40 45 50 55 60 65 70

% of Class ABC1

% o

f H

ou

se

wiv

es

Ag

ed

Un

de

r 4

5

52 we Aug 06

TNS Results – Brief Summary (3)

• Who is buying?– Overall the JML buyer has got younger and less

downmarket than in 2004.– Heavy buyers (top 20%): Older & more mass market,

account for 40% of spend. Majority in the midlands. Shop in Boots, Woolworths, Wilkinsons & £stretcher

– Medium buyers (30%): 40% are under 45 years old, mass market. More than 40% live in the North. Shop in Boots, Woolworths, Homebase & Morrisons.

– Light buyers (50%): Account for just 26% of spend. Younger & more upmarket. 48% live in the North. Shop in Asda, £stretcher, Homebase and Co-op.

TNS Results – Brief Summary (4)

• Asda is a great case study to show to target retailers

• Total Non-Foods is grew by 5% last year, worth £19.2bn - Morrisons has no share in this, Asda & Tesco could miss out by not stocking JML in all stores

JML Growth in Major Retailers

0.5 0

10.4

0.3 0 0.5

8.1

38.7

9

0.54 3.4

Tesco

Sainsb

uryAsd

a

Mor

rison

s

Co-Op

Indep

ende

nts a

nd S

ymbols

Boots

Wool

worth

Wilk

inso

n

Focus/D

o It A

ll

Pound S

tretc

her

Homeb

ase

% G

row

th

52 w/e 14 Aug 05 52 w/e 13 Aug 06

Outlook - Method

• Exit Poll Questionnaire in Woolworths stores – 15 questions, 7 minutes each, 400 people

• Focused on 10 key products, but also accounted for other product bought in the past

• Key Purposes:– To identify impact of JML advertising on incremental

footfall at Woolworths– To establish whether sales of additional (non JML)

products can be directly related to JML activity

Outlook Results (1)

JML Purchase JML PurchaseToday Ever Never Today Ever Never% % % % % %

Gender Male 17 17 19 SEG ABC1 58 56 55Female 83 83 81 C2 24 27 20

DE 18 16 25Age 18-24 9 12 14

25-44 44 41 45 Age of kids 0-9 23 20 2545-54 22 20 17 at home 10-17 21 26 1355plus 25 27 26 18plus 10 8 6

None 46 46 56Visits 1+Weekly 51 46 30

1or2 a month 35 38 38Less 14 15 33

Base 86 253 212 Base 86 253 212

Outlook Results (2)JML Purchase JML Purchase

Today Ever Never Today Ever Never% % % % % %

Store Boots 72 76 68 Store Wilkinsons 35 40 24M&S 70 68 52 House of Fraser 20 29 18Tesco 63 63 50 Homebase 20 26 19Argos 60 65 48 Somerfield 28 26 17Asda 56 57 51 Co-op 20 21 16Debenhams 49 52 33 £stretcher 15 21 16B&Q 41 42 40 Focus 14 11 2Sainsburys 36 41 39 Robert Dyas 2 6 4BHS 37 43 25 Kwik Save 5 6 4Morrisons 31 36 29

Base 86 253 212 Base 86 253 212

TNS reported that retailers are now gaining market share through ‘switching’. This is therefore a good chart to show store groups we are hoping to get into.

Outlook Results (3)

• High degree of repeat purchase - almost half of purchasers on day had also purchased ‘non featured’ products in the past

Ever bought any otherJML products in the

past

Yes - 23%

DK - 7%

Among purchasers of featured products

today 45% had bought in

the past

Base: all respondents (465

Outlook Results (4)High levels of awareness across the range amongst JML

purchasers. Significant minority of non purchasers also aware and reflects JML profile and the success of marketing activity

64

5662

69

55

33

4641

3439

2117 17

23

14

5

1410

7 8

0

10

20

30

40

50

60

70

80

Ever Purchased Any JMLProduct

Never Purchased

Base: all purchasers (253) non purchasers (212)

% Aware of JML Products (prompted)

52

39

45

50

44

20

3937

35

28

52

2529

24

48

17

23

18 17

25

0

10

20

30

40

50

60

Aware TV Ad

Aware In-Store

Base: all aware of each product

% Aware of Marketing Activity (amongst those aware of product)

Outlook Results (5)

Outlook Results (6)

53

38

7

4547

6

0

10

20

30

40

50

60

Great Extent Some Extent No Extent

TV AdIn-Store Video

Extent of Influence on Purchase Decision

Base: all purchased today and saw TV ad/in-store video (45/47)

Yes & MAIN REASON forVisiting Woolworths - 44%DK - 6%

No - 41%

Intention to PurchasePrior to Visit Today

Base: all purchased today (86)

Yes but NOT main reason forVisiting Woolworths - 9%

Total Planned53%

Outlook Results (7)

• For almost half of JML purchasers, the purchase is pre planned AND the main reason for the visit to Woolworths on the day

Outlook Results (8)

• 69% of purchasers on the day also purchased other products

• Among purchasers whose main reason For visiting store was the purchase of JML product - 66% bought something else as well

Type of Products Purchased

%Household/homeware 42Cards/gift wrap 22Sweets/confectionery22CDs/DVDs 10Toys/Games 8Stationery 8Children’s clothing 7Electrical 3

Outlook Results (9)

53 55 52 4749

36 36 36 42 46

38 5 8 60

20

40

60

80

100

Value formoney

Innovation Quality Solvingproblems

Availability

Don't know Very poor Poor Neither Good Very good

Rating of JML on Key Performance Criteria (%)

Outlook Results (10)

• The research confirms that JML activity - both TV and in-store video presentations - is positively influencing purchasing decisions

• In addition, there is strong evidence to suggest that incremental visits to Woolworths are being generated and that these frequently result in additional purchases beyond the target JML product– Half of JML purchasers had planned the purchase before arrival– For most of these, this purchase was the main reason for visiting

on that day– Two thirds of those whose main reason for visiting the store was

to buy a JML product ended up buying other products