Report: Batteries - UK - July 2008 TOC

Issues in the Market
Main issues
Definition
Abbreviations
Market in Brief
Sizeable market
Product development moves the market in new directions
Digital technology offers useful opportunities
Supermarkets dominate retail distribution
Advertising is dominated by mass-market channels
Consumers have specific demands but also appear confused
Internal Market Environment
Key points
Tighter regulations on battery use and disposal soon to arrive
Obsession with battery-powered devices continues
- Figure 1: Trends in the penetration of selected battery-powered devices, 2001-07
Growth in internal rechargeable batteries presents a threat
Are battery manufacturers now reliant on Tweens?
- Figure 2: Penetration of handheld games, personal CD players and cameras amongst 11-14-year-olds, 2003-07
Seasonality plays a major part in directing purchases
- Figure 3: Battery sales, by season, 2007
Need for consumer education
Broader Market Environment
Key points
High levels of PDI support growth of battery supported devices
- Figure 4: PDI and consumer expenditure, at constant prices, 2003-13
Change in population structure
- Figure 5: Size of UK population, by age group, 2003-13
Growth in one-person households will offer opportunities
- Figure 6: Total number of UK households and one-person households, 1991-2013
Rising costs
Competitive Context
Key points
Competition from internal rechargeable batteries is growing
Battery brands fight back
Benefits still to be found from the demand for portable technology
- Figure 7: Consumer expenditure on selected leisure goods and activities, 2002-07
Spending priorities also suggest boost for batteries
- Figure 8: Expenditure priorities, 2007 and 2008
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Competition within the market hits value
- Figure 9: UK consumer retail sales of dry-cell batteries, by volume and value, 2003-13
Discounting hits average prices
- Figure 10: UK average retail price per unit of dry-cell batteries based on rrp, 2003-08
Decline continues but average price fall begins to weaken
Further insight into the future of batteries
Stimulating demand for next-generation cells
Novel takes on batteries to receive greater attention
Everything' s going miniature
Falling sales?
Product specific promotions
Focus on price continues
Factors used in the forecast
Segment Performance
Key points
Volume market is dominated by long-life batteries
- Figure 11: UK retail sales of batteries, by cell formulation and volume, 2003-07
Retail sales figures benefiting from more expensive products
- Figure 12: UK retail sales of batteries, by cell formulation and value, 2003-07
New-generation cells are seeing especially strong growth
Rechargeables proving popular
Market shifts towards smaller cells
- Figure 13: UK retail sales of batteries, by cell size and volume, 2003-07
- Figure 14: Side-by-side comparison of AA and AAA Energizer batteries, to scale (cm), 2008
- Figure 15: Side-by-side comparison of C and d type Energizer batteries, to scale (cm), 2008
Distribution
Key points
Grocery multiples dominate, albeit challenged by new channels
- Figure 16: UK retail sales of batteries, by outlet type, 2003-07
Grocery multiples dominate market
DIY and electrical also make inroads
High street stores important but losing ground
Is online a potential distribution channel?
Brand Communication and Promotion
Key points
Fall in promotional expenditure hints at tougher conditions on the market
Figure 17: Main monitored media advertising expenditure on digital photographic equipment, 2003-07
Manufacturers dominate advertising although degree of interest varies
- Figure 18: Advertiser spend on batteries, 2005-07
Television increasingly dominates promotional channels
- Figure 19: Advertising spend on batteries by media type, 2005-07
Below the line is also important
Promotional expenditure is focused around Christmas
Market Share
Key points
Companies and Products
Duracell UK
Energizer Ltd
Panasonic
Rayovac
Uniross
Others
Consumer Purchasing Habits
Key points
Current purchasing habits suggests a stable market
- Figure 20: Purchasing of batteries (including rechargeables) in the last 12 months, 2003-07
Standard batteries the preferred format
- Figure 21: Types of batteries bought in the last 12 months (inc. rechargeable), 2007
Although spend in all formats is relatively low
- Figure 22: Spending on batteries in the last three months, 2003-07
Where Consumer Use Their Batteries
Key points
Batteries find use in everyday items
- Figure 23: Battery-enabled devices that consumers own, April 2008
Average person has seven devices requiring batteries
- Figure 24: Ownership of battery-powered devices, April 2008
Who is likely to own more battery-enabled devices?
- Figure 25: number of battery-powered devices owned, by gender, age and socio-economic group, April 2008
Consumer Battery Buying Motivations
Key points
Distress purchasing is most important reason for buying batteries
- Figure 26: How consumers buy batteries, April 2008
A small percentage do regularly shop for batteries
Who are the ' last minute' purchasers?
- Figure 27: How consumers buy batteries, by gender, age and socio-economic group, April 2008
Distress purchasing is important for all types of appliance
- Figure 28: Attitudes towards purchasing batteries, by battery-enabled devices owned, April 2008
What Consumers Look for in a Battery
Key points
Variety of factors point to a complex market
- Figure 29: What battery buyers look for in a battery, April 2008
Point-of-sale and promotional packaging could do better
Price a feature most sought out by young adults
- Figure 30: What battery buyers look for in a battery, by gender, age and socio-demographic group, April 2008
Qualities sought increase with device ownership
- Figure 31: Importance of qualities, by number of devices owned, April 2008
- Appendix -- Where Consumers Use their Batteries
- Figure 40: Most popular battery-enabled devices that consumers own, by demographics, April 2008
- Figure 41: Popular battery-enabled devices that consumers own, by demographics, April 2008
Number of battery-operated devices owned
- Figure 42: Number of battery-enabled devices owned, by demographics, April 2008
Appendix -- Consumers' Battery Buying Motivations
- Figure 43: How consumers buy batteries, by demographics, April 2008
Appendix -- What Consumers Look for in a Battery
- Figure 44: Features battery buyers look for in a battery, by demographics, April 2008

Batteries - UK - July 2008

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