2. CONTEN
TS
1. Summary
1. IPA Questions
2. Competitor Summary
3. Recent & Relevant Industry News
4. Great work & Tech News
3. SUMMARY
Warburtons is the leading player in baked
goods in the UK and accounted for close to
11% value share in 2015. This brand is
thus a strong leader in packaged bread
where it accounted for 23% value share in
2015, while also ranking third in packaged
pastries with 14% share.
4. WHAT DO WE SELL?
The product range:
Bread | Bagels | Wraps |
Thins pittas |Rolls |
Breakfast | Teacakes
Fruit loaves
5. WHAT ARE THE
CURRENT MARKET
TRENDS?
Looking at the current trends in the baked goods market,
using market research sites such as Mintel and Passport
Euromonitor, the following trends highlights the following:
• What products are doing well in the baked goods
market?
• What products are not doing well in the baked goods
market?
• What is dominating the market?
6. WHAT ARE THE
CURRENT MARKET
TRENDS?
1
• Bread dominates overall value sales in baked goods,
accounting for a share of 52% in 2015. However, this
product area was hit hard by consumer trends at the
end of the review period. Vegetables were notably used
to replace carbohydrates by some consumers, while
fruit and vegetable smoothies were a key breakfast
trend.
7. WHAT ARE THE
CURRENT MARKET
TRENDS?
2
• bread saw 4% retail volume decline in 2015. Some
areas of bread however remain successful. While
packaged bread saw a sharp 6% retail volume decline
in 2015, unpackaged bread achieved a slight growth of
1%. This was thanks to unpackaged bread offering a
fresher and more natural image, which increasingly
appeals to consumers. Wholemeal bread also saw a
strong performance within packaged bread, gaining
almost three percentage points in value share in 2015
8. WHAT ARE THE
CURRENT MARKET
TRENDS?
3
• Bread substitutes saw a strong performance in 2015
over the previous year, growing volume and current
value sales by 3% and 5% respectively. Growth is
being driven by the health and wellness trend, with
these products often viewed as healthier in comparison
to bread. Growth is notably being supported by strong
new product development from Jordans & Ryvita's
Ryvita brand.
9. WHAT ARE THE
CURRENT MARKET
TRENDS?
4
• baked goods saw 1% current value decline in 2015
over the previous year. The overall review period saw
less than 1% decline. A worsening performance at the
end of the review period was partly due to health and
wellness trends and partly due to a shift towards
consumer foodservice alternatives as economic
confidence rose.
10. WHAT ARE THE
CURRENT MARKET
TRENDS?
5
• baked goods saw a good 2% current value growth in
unit price in 2015 over the previous year, benefiting
from premiumisation in many areas and notably in
unpackaged bread. This area saw 3% growth as
consumers traded up to healthier and speciality
options. However, leading product area packaged
bread was hit hard by price competition at the end of
the review period, seeing 3% current value unit price
decline in 2014 followed by a further half a percentage
11. WHAT ARE THE
CURRENT MARKET
TRENDS?
6
• Packaged products dominate sales of baked goods,
accounting for 76% value share in bread, 77% share in
pastries and 59% share in cakes in 2015. However,
unpackaged products are gaining share, particularly in
bread but also in cakes. Packaged cakes saw 1%
current value sales decline in the year, while
unpackaged cakes saw 3% growth. The exception to
this trend was pastries, where packaged products saw
a marginally stronger current value growth in
12. WHAT IS OUR BRAND
SHARE?
UK prepacked bread retail market
• Warburtons – 34%
Leading brands in the UK sweet baked
goods retail market
• Warburtons -14%
Leading brands in the UK speciality bread
and rolls retail market
• Warburtons -17%
13. WHAT IS OUR BRAND
SHARE?
The following tables show leading brands
in the UK prepacked bread retail market,
by value and volume, 2013/14 and
2014/15 (Mintel 2015)
14. WHAT IS OUR BRAND
SHARE?
Table 1 - Leading brands in the UK prepacked bread retail
market by value 2013/14 and 2014/15
15. WHAT IS OUR BRAND
SHARE?
Table 2 - Leading brands in the UK prepacked bread retail
market by volume 2013/14 and 2014/15
16. WHAT IS OUR BRAND
SHARE?
Summary of table 1 AND 2
• Warburtons continues to dominate the prepacked bread retail
market IN BOTH VALUE AND VOLUME. THE BUSINESS
has ALSO seen a rise in volume sales BUT Due to declining
market value, Warburtons saw a fall in value sales.
17. WHAT IS OUR BRAND
SHARE?
Table 3 - Leading brands in the UK sweet baked goods retail
market, by value, 2013/14 and 2014/15
18. WHAT IS OUR BRAND
SHARE?
SUMMARY OF TABLE 3
• While still dominating the sweet baked goods market, with a 14% market
share, Warburtons suffered a decline in sales, the only brand to do so.
Its advertising support of its new pancake range in 2014 is likely to have
driven sales during that year, although the lack of continued support in
2015 appears to have been detrimental.
19. WHAT KEY THINGS
AFFECT OUR
SUCCESS?
Strengths, weaknesses, opportunities and threats.
A SWOT analysis will determine, what is currently working well,
what is not working well and any external factors that is beyond
the control of Warburtons.
20. WHAT KEY THINGS
AFFECT OUR
SUCCESS?
Strengths
• The UK market for bread and bakery products is extremely
varied and incorporates a range of price points, thereby
potentially appealing to an extremely large proportion of the UK
consumer base.
• Consumption of bread at mealtimes or as a snack is well-
established, with many Britons perceiving it to be an integral
part of a healthy everyday diet.
• There is widespread brand awareness in this market.
• UK consumers like to treat themselves, fuelling sales of more
indulgent bakery products, such as teacakes and crumpets.
21. WHAT KEY THINGS
AFFECT OUR
SUCCESS?
WEAKNESSESS
• Bread consumption is in long-term decline in the UK,
particularly with regard to traditional sliced loaves.
• White bread is widely perceived to be lacking in nutritional
value, limiting sales in a major market sector.
• Diets which recommend avoiding carbohydrates are
fashionable in the UK, reducing volume sales.
• Bread is widely perceived to have a high salt content.
• Products in the market have a short shelf life, with bread being
one of the most wasted foods in the UK
22. WHAT KEY THINGS
AFFECT OUR
SUCCESS?
OPPORTUNITIES
• Gluten-free products are continuing to rise in popularity, as the
UK consumer base becomes increasingly health conscious and
ingredients-focused.
• Packed lunches, for both children and adults, are an
increasingly popular lunchtime solution, improving the demand
for rolls and sandwich alternatives, such as wraps, pitta bread
and bagels.
• Consumption of speciality breads with an increasingly wide
range of culturally-influenced meals is becoming common in
the UK.
• Improving financial circumstances are gradually improving the
23. WHAT KEY THINGS
AFFECT OUR
SUCCESS?
THREATS
• Products in this market are dependent on grain, the prices of
which can be volatile, depending on global demand and the
success of harvests.
• NPDs in other markets are restricting sales of bread. A prime
example of this is the increasing popularity of breakfast
biscuits, which offer consumers a more convenient breakfast-
solution than bread.
• As the economic recovery develops, consumers will spend
more on eating out, restricting the demand for speciality
breads, such as naan, which allow consumers to ‘dine out’ at
home.
24. WHAT IS OUR
RELATIVE PRICING
Using MySuperMarket.co.uk, the price range for
Warburtons in 2 key categories (White Bread and
Wholemeal/brown brad) were pitted against competing
brands and store brands.brand White bread
Price range
Wholemeal/ brown
bread
Price range
warburtons 79p-£1.25 79p-£1
Hovis 50-78p 50p-£1.25
kingsmill 70p 70p-£1
Store brand* 55p-£1 49p-£1.34
Store brand
value*
30-55p 30p – 55p
25. WHAT IS OUR
RELATIVE PRICING
SUMMARY
• The figures on the table suggests Warburtons is a
premium brand as their prices remains consistently
higher than competitors. This is a result of having a
strong brand name and rich brand history which adds
value to their products.
28. HOW DO WE DEFINE
SUCCESS?
Warburtons measures success in volume, which is a
traditional way to measure success. Looking back at Table
2, Warburtons saw a 3.8% change between 2013/2014 –
2014/2015.
30. HOVIS
Hovis recently
launched and
advertisement
as part of their
£5million
integrated
marketing
campaign
implemented by
Mother – who
had won the
Hovis account
from JWT. The
advertisement
shows three
kids attempting
to break free of
the indoors as
their house
expands
alarmingly
around them.
31. HOVIS
The message
behind the
advertisement
is based around
the quality and
brand values of
Hovis, tapping
into the
emotional
needs. Using
data from TGI
(Target Group
Index) the
Hovis consumer
are more likely
to have children
in the
household than
no children.
32. HOVIS
The marketing
manager at
Hovis
commented in a
statement: "We
were keen to
harness this
brand love and
pay homage to
that rich Hovis
heritage but in
and new and
provider of
everyday
goodness, we
think that kids
will love this
advert as much
as their parents
love the original
boy on a bike,
demonstrating
how the brand
remains
33. KINGSMILL
Kingsmill last
series of
advertisements
was mainly
focused around
a family of 3 in
a kitchen, since
then they have
not released
any new
advertisements.
Unlike Hovis
primarily
focuses on
children,
Kingsmill’s
advertisement
focuses on lone
parent families.
Their last series
of
advertisement
only ever
showed a dad
34. KINGSMILL
This could be
based on TGI
data as
Kingsmill
consumers are
more likely to
be either
divorced,
separated or
widowed.
However Tesco
delisted the
“volume-driven
strategy”
Overall each
brand targets
their own
specific
segment, using
TGI will enable
to pinpoint
which
consumers to
target in the
37. RTONS
GIANT
CRUMP
ETS
ARE
TWICE
THE
SIZE OF
THE
ORIGIN
AL
YOU have heard of the thinking
person's crumpet — now meet
the greedy person's crumpet.
Bolton bread kings Warburtons
have come up with a giant
alternative to the breakfast
favourite which measures up at
nearly twice the size of regular
crumpets.
Bolton news
38. RTONS
GIANT
CRUMP
ETS
ARE
TWICE
THE
SIZE OF
THE
ORIGIN
AL
• And this is news ???? Get a
grip BN absolutely pathetic!!
• How strange Tory things
usually get smaller :)
• it's not news, it's advertising.
But, if they didn't advertise,
there wouldn't be a free
Internet paper to make
comments on. Well,
comments on articles they
will allow us to comment on
Bolton news
39. FOCU
SES
ON
MEAL
TIMES
WITH
GIANT
CRUM
PETS
LAUN
CH
• Warburtons has announced the
addition of another bakery
innovation, Giant Crumpets –
almost twice the size of its
standard crumpet.
• Featuring the same texture, taste
and fluffiness as Warburtons
standard crumpets, the tasty
new products are designed to fit
perfectly in the toaster and are
the perfect convenient snack and
meal time solution for busy
families and people on-the-go.
Talking retail
40. WARB
URTO
NS TV
AD -
THE
DELIV
ERER
S
• Bread delivery on an epic scale!!!
• This is brilliant. Stallone in
Bolton, my home town!!
• Wow!! Pretty good advert and
puts Bolton on the map Lmao!!
Like the part Stallone gets in the
passenger side of the truck and
realised his mistake. Well done.
youtube
41. WARBURTONS
IN THE NEWS
SUMMARY
The news articles are
mainly focused on the
new launch of
Warburtons giant
crumpets, mainly
focusing on the product
rather than the brand.
On the other hand the
audience response are
very mixed with some
commenting on the
product and other on
Warburtons business
activities (funding the
conservatives)
43. THE
FUTU
RE IS
VERTI
CAL
WPP, Snapchat and Daily Mail are set to
launch Truffle Pig – a content marketing
company. “In a digital world overflowing
with content, consumers crave quality. A
next-generation company, Truffle Pig
combines the best in media, content and
user experience to satisfy people’s appetite
for great storytelling – and inspire brand
engagement, loyalty and sales.”
44. 3V
ADVERT
ISING
When you encounter a video ad in
Snapchat or any other mobile app, it’s
“totally stupid” to have to rotate your device
in order to see it in full screen, said
Steinberg. A lot of viewers will just navigate
away when they encounter a horizontal
video ad on mobile. “But if a video is
vertical and a little bit compelling, you’re
going to keep watching. - Evan
46. CONTE
NT!
Content marketing is a great way to
engage with customers and to provide
them with expert knowledge to help them
during their buying process of any
product or service. In 2015, content
marketing is expected to be the most
commercially important digital marketing
trend according to Smart Insights graph
48. It's the world's fastest-growing digital language and
brands are beginning to build it into their marketing
campaigns in their attempts to target millennials,
says Mark Middlemas, director of communications
at RadiumOne and Aidan Lonergan, a 'millennial'
marketing intern.
49. Ahead of the arrival of its Cruze model, Chevrolet
put out a press release made up entirely of emojis
because "emoji is international in its adoption and
we wanted to have fun and be irreverent with our
audience," said the car marque's head of social
media.
50. The WWF employed a #EndangeredEmoji Twitter
campaign to help save animals from extinction.
The charity created 17 emojis for endangered
animals and are encouraging people to donate 10p
every time they retweet one.