xzGreggs Assignment

1 what do customers look for in terms of FOTG?

1) Consideration in the context of COVID-19

In the context of COVID-19, the safety of in-store dining is relatively low. In order to ensure the safety of
dining and avoid gathering dining activities, food on the Go can satisfy consumers' guarantee of dining
and their own health.

2) It can meet the fast pace of urban residents' life

People living in big cities live at a fast pace. Many city dwellers are reluctant to spend more time on
meals because they have more work and other things to deal with. These people can greatly save their
mealtime by buying sandwiches, bread and other easily portable foods and goods to eat on the go.

3) Balance convenience and sustainability needs

Although people always cook and eat at home, now they eat more and more food. Moreover, as
people's demand for convenient mobile packaging increases dramatically, in-store sandwiches, which
are both portable and healthy, can well balance people's demand for convenient food. Mr. O 'Driscoll
believes that balancing the need for convenience with the need for sustainability is a real conundrum for
brand owners and predicts that sustainable packaging will become increasingly necessary as an
alternative to traditional packaging.

4) Substitutability of commodity price value and dining value

Another factor to consider is price, with 50 per cent of consumers saying it is important when deciding
where to buy food and drink. Value is essentially the satisfaction of customer experience relative to cost.
Value does not refer to price, but to the offsetting of perceived benefits against price. In addition, when
consumers do not experience a good dining environment, they will be more inclined to consider
whether the price of goods is reasonable. Therefore, when deciding to buy food that can be eaten on
the road, they will also consider whether the price of goods is reasonable.

To sum up, in order to meet customers' demands for food on the Go, it is important to consider the
above four factors and combine them together. However, there are other factors that affect a
customer's purchase of food and drink, such as freshness, health, ability to meet dietary requirements,
and so on.

2 What are the main consumer habits regarding FOTG?

1) Buy healthier foods

People's consumption concept has changed during the epidemic, from taste oriented to health oriented.
It used to be more about the mouth, but now it's more about health
While affordability will remain a priority for many, 32 per cent said it would be more important to get
food at low prices, but this should not come at the expense of health and good nutrition. On the
contrary, nearly half (49%) of consumers believe the coronavirus pandemic is more important to them,
making them more likely to opt for sandwiches, Beef Patty these results are consistent with increasing
homemade preparation and prioritization of fresh and local foods (49.68% of respondents indicated
giving full or partial priority to purchasing new products, with 68.27% and 67.95% of consumers
revealing little or no priority to purchasing frozen and processed products respectively) and other
relatively healthy foods to take out of the house.

2) They prefer to buy simple packaged food

Even in areas where the disease risk is relatively low, people face widespread communication about the
risks of COVID-19, which may be stressful for some. These people may cope with stress through stress-
related eating and drinking to make themselves feel better under stress. For example, people will
choose to buy chocolate, crisps and snacks to eat on the road.

3) Increased frequency of coffee purchases

Lumina Intelligence reports that coffee "dominates" food and beverage consumption, accounting for
50% of total beverage consumption between January and April 2021. Young consumers have changed
their behavior in this area in response to the pandemic, with nearly a quarter of consumers making a
habit of buying hot drinks while walking with friends since March 2020.

4) Choose low value-added foods

As people do not expect much premium for food on the Go, the purchase of high value-added food
products is the least significant among respondents. Seventy-five percent said they gave these products
little or no priority.

3 How is FOTG consumer behaviour changing?

As the world begins its slow pivot from managing the COVID-19 crisis to recovery and the reopening of
economies, it’s clear that the period of lockdown has had a profound impact on how people live. There
have also been significant changes in the behaviour of OTC consumers, which are reflected in the
following four main areas.

3.1 Reduce FOTG and choose to cook at home instead of the spread of COVID-19 and the lockdown have
caused people to go out less frequently, including traveling, eating out, going to work and school, etc. As
a result, there will be a reduction in the number of consumers buying food on shores and packing it to
take away. Moreover, a survey by Mintel called Attitudes towards Lunch at Home shows that in May
2021, 65% of people ate lunch at home five times a week or more, and 47% of people want to still eat
lunch at home five days a week in the next six months. Therefore, with the reduction of FOTG, more
people choose to eat at home.

3.2 Pay more attention to the nutrition of food and its impact on health According to Ziauddeen et al.
“energy intake was disproportionately higher at leisure places, food outlets and ‘on the go’ combined
across all age groups. Foods frequently consumed in these locations included nutrient-poor energy
dense choices such as spreads, cakes, savoury snacks and SSB (non-core foods), and other sources of
saturated fatty acids and sugar” (Ziauddeen et al., 2017). This means people usually consume a lot of
unhealthy foods that are high in sugar and fat when they eat out and eat ‘on the go’. However,
according to surveys on the Mintel, during the pandemic, 43% and 40% of people are concerned about
the impact of food and drink on their weight and mental health respectively, and 66% of people
consume vitamin C to support their immune system. This indicates a shift from consuming unhealthy
foods high in fat and sugar, especially when eating out and eating ‘on the go’ , to becoming more aware
of their health and the impact of food on their physical and mental well-being. People are tending
towards good lifestyles and healthy eating habits.

3.3 Limit and reduce unnecessary expenditure on food Sands et al. (2019) suggest OTG purchasing is
often impulsive. And such purchases involve little information processing and less thought given to price
(Bayley & Nancarrow, 1998). This suggests that consumer behaviour of “on the go” is generally price-
insensitive. However, the data on Mintel shows one year after the outbreak of COVID-19, 53% of
respondents believe they make more budget conscious about food and drink shopping. It indicates that
FOTG consumers are more price-sensitive when buying food and are more likely to seek good value for
money. Consumer behaviour is increasingly moving towards sustainable models, with more focus on
whether purchasing decisions can serve them (Orîndaru et al. , 2021).

4 What are the likely medium to a long-term future trends（10-20 years）for UK high streets and
where does FOTG sit within that?

High streets in UK are focal point of the city for shopping, socializing with your friends and families. They
are not just for leisure, but high streets provide livelihood to many. Most retail sector primary jobs are
based on the high streets.

4.1 Short and long-term plans BEFORE covid for high streets

“High streets and town centers in 2030” eleventh report of session 2017-19 was published on 13th Feb
2019 by the House of Commons. The report has identified the four major issues and how futuristic high
streets will all be inclusive of culture, activities, green spaces, sustainable and sociable in the year 2030.
This report also presents a road to achieve those goals with the help of govt and local communities. The
government wants these consumer markets to flourish with strategic planning and implementation for a
balanced future. River Group also presented a research report predicted the future of these retail hubs
for 2044. Larger cities with ever growing population may like to have multiple high streets along with
retail parks outside the cities equipped with micro-farms and distribution centres with drone fulfilling
deliveries within 15 mins or so. Also Digital generation will be more consumption conscious and focused
on sustainable living styles with sharing and caring (Mark, 2018). Retail-insider.com’s article focuses on
world’s high streets but stressing about UK high streets like of London may have some extraordinary
physical space as examples like for Casinos which may be fully replaced by online gambling websites.

4.2 Short and long-term plans AFTER covid for high streets

UK high streets were declining since the online retail culture has changed consumer retail
habits. Other reasons are also adamant like govt regulations, lack of desired upgradation to
fulfil the requirements of Gen Z. But surveys revealing that 62% still wants to shop on high
streets. Several studies have been done post pandemic to measure the current and long-term
impacts on UK high streets. Post lockdowns, homestays, home deliveries, local and essential
shopping’s consumerism has taken a shift from older days.
Infrastructure: Local authorities and private investors must provide funds and facilities required
to develop High Streets for and with local communities. Need of the hour is that these spaces
should be reimagined and restructured with green open spaces, local feel, accordance,
preservation and display of heritage opinion around 76% people voted in the favour (Godfrey,
2020).
Exclusiveness: Pop-up stores which will be temporary storefronts in central areas with exclusive
product range will attract more youngsters. Goods will be sold at high prices because of range
and exclusiveness. Unique experimental services or products will be preferred to spend quality
time with families and friends. Society and communities will take more power to themselves.
Share and care: People like the share and care fundamentals with borrowing and returning
products to support sustainability. Pandemic has made people less materialistic.
Go Local: During lockdowns, many supermarkets failed to fulfil the requirements of the
customers, but local shop owners came forward and standby their people. This led to many
supporting their local brands over big names. This phenomenon will be continued.
Sustainable: Gen Z is adamant towards sustainable future goals. And they want Govt and
various organizations should intervein and help retailors to de-carbonized their stores,
deliveries & store.
Food & Drinks: Standalone stores has emerged over chain stores in the recent past. Store
closures are giving opportunities to food and beverages to occupy those spaces. Gen Z is busier
generation than its predecessors. Emergence of FOTG specialists has begun way before
smartphones era. Present and future concerns about “healthy and quality” food must be served
with environment friendly packaging. Better awareness about regulations, policies and
initiatives will be part of FOTG market players specifically specialists (Hirth, Boons & Doherty,
2021). More bar, restaurants, clubs with “GRAB & GO” preferences will flourish.

5 How will digital channels and technology influence market dynamics in the years to come?

5.1 Digitization Data is the core in the future of retail industry, and the proficiency and use of data not
only help companies better understand consumer needs but it can also optimize the entire industrial
chain. With the advances of technology such as cloud computing, IoT (Internet of Things), and big data
have enabled all aspects of business to be and the entire industry is moving toward digitization. The
industry is moving in the direction of comprehensive data.

5.2 Integration and innovation integration and innovation. The impact of technological advances on the
industry is not only limited to the product and service of enterprises but is also restructuring the use of
resources and operating organizations. Technology advancement is an important factor in the continued
deep integration of online and offline. At the same time, technological advances also provide support for
the transformation of corporate organizational structure.

5.3 Facilitating cost reduction and efficiency Digital technologies such as cloud computing are centred on
rent-to-own, on-demand, volume-based billing, where computing power and computing devices are
used as public infrastructure so that market participants can use the technology to gain access to data
cheaply and quickly, thereby reducing costs in terms of money, time, and manpower, and increasing
efficiency.

5.4 Intelligence will become increasingly popular Intelligence will become more popular. With the
improvement of data systems and the development of algorithms, technology is being used more and
more extensively in the market, specifically in the digitalization of offline shops and online consumer
services. The same applies to a large number of applications in operations, such as intelligent logistics
and smart warehousing. Technology and algorithms will further promote the intelligence of the retail
industry in the future, enabling intelligent applications to permeate all aspects.

Consumers’ purchasing behaviour also changed due to the Covid 19 that they spending more money on
home delivery in the past year. (https://data.mintel.com/databook/covid-19s-impact-on-british-
consumers-4-11-october-2021-october-2021/#QCV35) There were more new online shoppers in 2020
than in the previous five years and 75% British consumers of the research will continue to buy takeaway
as much or more.(https://www.thegrocer.co.uk/consumer-trends/lockdown-anniversary-how-has-
covid-changed-uk-eating-and-shopping-habits/654335.article ) Furthermore, in one research of
'Attitudes towards Lunch Out-of-Home' in the UK, 65% customers think click-and-collect services are
safer to avoid contact with people.( Attitudes towards Lunch Out-of-Home - UK - June 2021: Attitudes
towards Lunch Out-Of-Home (mintel.com) Thus, consumers are paying more attention to convenience
and security.

Apart from the change in the way people shop, more UK residents are embracing healthy food,
especially vegetable and fruits (https://www.thegrocer.co.uk/consumer-trends/lockdown-anniversary-
how-has-covid-changed-uk-eating-and-shopping-habits/654335.article ). Also, in a survey of vitamins and
supplements, more than half had taken them to boost their immunity (Vitamins and Supplements - UK -
2021 - Topline Questions - Mintel).

For the above two aspects, Greggs can focus on Generation Z and millennials in the new environment,
which are to groups that have the highest proportion of food delivery service use ( Coronavirus: impact
on eating and drinking out in the UK | Statista (ncl.ac.uk). and occupy majority of vegetarian•( Share of
vegetarians by age group in the UK 2021 | Statista (ncl.ac.uk)

In a 2021 survey (Attitudes towards Lunch Out-of-Home - UK - June 2021 - Topline Questions - Mintel ),
Greggs ranked the highest in terms of both the use of the brand and its usage rate, exceeding 40%,
which may benefit from the fact that this brand offers good value and leaves consumers the impression
of "convenience". However, it’s brand differentiation is not the most obvious in the eyes of consumers.
Meanwhile, only 21% of consumers think that the brand cares about consumer health. Hence, we could
help Greggs to extract important attributes associated with healthy food and healthy life, improving
brand knowledge in new consuming demand.

What’s more, the performance of Greggs app was not good. The grade of it on Apple store is just 2.5.
Most of the 156 reviews reflect a question that the new version can't link to Apple
Wallet(https://apps.apple.com/gb/app/greggs/id1098233626) ,, which will decrease the loyalty of
Greggs because of the inconvenient payment. Secondly, the reward in this App is not attractive
(consumers need to spend 9 times more effort and money to get a similar product for free). There may
become a gap between the perceived benefits and sacrifices, which will affect customer value and
reduce corporate profits.

Similarly, about 150 users gave one and two stars in the last 11 months on Google Play, with the biggest
problem centered on users being unable to log in after entering a verification code. The deviation
between consumers' expectation and actual service perception has brought a series of negative
comments. More importantly, the answer to questions section on the official website of Greggs does
not show explanation to this problem, and the replies under some comments are mechanized. ( Greggs
– Apps on Google Play)

Overall, Consumers want Greggs to provide a more convenient shopping channel, a safer dining process
and a more nutritious vegetarian diet.
References:

Hirth, S., Boons, F. & Doherty, B. (2021) ‘Unpacking food to go: Packaging and food waste of on the go
provisioning practices in the UK’, Geoforum, Vol 126, Pages 115-125

Godfrey, H. (2020) ‘Britain 2030: Writing off the high street is unambitious; its future is bespoke, local
and community-driven !!’, Opinion. Available at: https://www.cityam.com/britain-2030-writing-off-the-
high-street-is-unambitious-its-future-is-bespoke-local-and-community-driven/