Table of Contents
Introduction and Abbreviations
-
- Definition
- Consumer research
- ACORN
- Abbreviations
Executive Summary
-
- Britain’s roads get busier
- Market growth continues
- Ad hoc sector representing less of the market
- Very competitive market
- The AA is still the biggest spender
- More members of breakdown organisations
- Prospects for the future
Market Drivers
-
- Number of cars on the road
-
- Figure 1: Size of the GB car parc and distance travelled, 1998-2003
- Age of cars on the road
-
- Figure 2: Age of cars in private ownership in the UK, 1995-2003
- Multiple ownership
-
- Figure 3: Number of cars per household, 1995-2003
- New car registrations
-
- Figure 4: Number of new car registrations, 1998-2003
- Figure 5: Index values for size of the GB car parc, distance travelled and new car registrations, 1998-2003
- Reliability issues
-
- Figure 6: Leading causes of breakdown, 2002 and 2003
- Figure 7: Graphic representation of leading causes of breakdown, 2003
- Driving licence holders in the UK
-
- Figure 8: Full car driving licence-holders in GB, by gender and age, 1999-2003
- Government wants to tackle road congestion
Market Size and Trends
-
- Steady market growth
-
- Figure 9: The UK vehicle recovery market, by value, 1998-2003
- Indirect sales hit revenues
- Ad hoc sector losing share
-
- Figure 10: The UK vehicle recovery market, by type, by value, 1999-2003
Market Segmentation
-
- Motoring organisation membership – up by a fifth since 1998
-
- Figure 11: UK market value for motoring organisation membership, by value, 1998-2003
- Ad hoc breakdown recovery – bleak outlook for sector
-
- Figure 12: UK market value for adhoc breakdown services, by value, 1998-2003
- Organisations seek accreditation
-
- Figure 13: Indexed UK vehicle recovery market, by type, by value at current prices, 1998-2003
- Figure 14: Indexed UK vehicle recovery market, by type, by value at constant 1998 prices, 1998-2003
The Supply Structure
-
- Recovery market composed of numerous companies with varied roles
- Level of competitiveness
-
- Figure 15: Company shares in the vehicle recovery market, by membership, 1999-2003
-
- Figure 16: Graphic representation of company shares in the vehicle recovery market, by membership, 1999-2003
- Companies and brands – providers
- AA
- RAC
- Green Flag
- Other companies
- Mondial
- Europ Assistance
- Britannia Rescue
- Autonational
- GEM
- ETA
- LibraRescue
- Companies and brands – intermediaries
- Companies and brands – breakdown and recovery operators
- Range of services
- Innovations in technology
- The Internet and selling methods
Advertising and Promotion
-
- Advertising spend is volatile
-
- Figure 17: Main monitored media advertising expenditure on vehicle breakdown and recovery services, 1998-2003
- AA consistently big spender
-
- Figure 18: Main monitored media advertising expenditure on vehicle breakdown and recovery services, by organisation, 2001-03
- Direct Line shows notable increase in adspend
- AA concentrates spend on general campaigns
- RAC – integrated campaign creates uniform message
- Green Flag – focus on PR and sponsorship
- Activities of other companies
-
- Figure 19: Graphic representation of total main monitored media advertising expenditure on vehicle breakdown and recovery services, by organisation,
The Consumer
-
- Membership of motoring organisations
-
- Figure 20: Membership of motoring organisations, 2001 and 2003
- Membership levels among the leading organisations
-
- Figure 21: Type of vehicle breakdown organisation belonged to, 1998-2003
-
- Figure 22: Type of vehicle breakdown organisation belonged to, 1998-2003
- Third of car owners in the AA
- Green Flag favoured by older car drivers
-
- Figure 23: Type of vehicle breakdown organisation belonged to, by gender, age and socio-economic status, November 2003
- Majority of retirees are members
-
- Figure 24: Type of vehicle breakdown organisation belonged to, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Married consumers most likely to be members
-
- Figure 25: Type of vehicle breakdown organisation belonged to, by marital status, working status, household size and tenure, November 2003
- Membership base needs to be expanded in Scotland
-
- Figure 26: Type of vehicle breakdown organisation belonged to, by region and ACORN categories, November 2003
- Readers of popular tabloids least likely to be members
-
- Figure 27: Type of vehicle breakdown organisation belonged to, by media usage, commercial TV viewing and main supermarket visited, November 2003
The Consumer – Important Benefits of Membership
-
- Critical consumer findings
- Need for flexibility
- Further options needed
- Insurance intermediaries can expand membership levels
- Loyalty needs to be fostered
- Joint membership options lead to sale of more comprehensive policies
- Other revenue opportunities
- Assessing consumer demand
- 24-hour service most important benefit
-
- Figure 28: Important benefits of membership to a breakdown organisation, November 2003
-
- Figure 29: Important benefits of membership to a breakdown organisation, November 2003
- Transport to destination important to older consumers
-
- Figure 30: Important benefits of membership to a breakdown organisation, by gender, age and socio-economic status, November 2003
- Pre-/no family consumers view 24-hour service as important
-
- Figure 31: Important benefits of membership to a breakdown organisation, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Marital status influences views on benefits to membership
-
- Figure 32: Important benefits of membership to a breakdown organisation, by marital status, working status, household size and tenure, November 2003
- Expanding category regards fast response as important
-
- Figure 33: Important benefits of membership to a breakdown organisation, by region and ACORN category, November 2003
- Internet users show positive response to membership
-
- Figure 34: Important benefits of membership to a breakdown organisation, by media usage, commercial TV viewing and main supermarket visited, November 2003
- Young adults value repairs fixed on-site
-
- Figure 35: Further important benefits of membership to a breakdown organisation, by gender, age and socio-economic status, November 2003
- Home assistance and on-site repairs important to family groups
-
- Figure 36: Further important benefits of membership to a breakdown organisation, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Joint membership options could provide greater income
-
- Figure 37: Further important benefits of membership to a breakdown organisation, by marital status, working status, household size and tenure, November 2003
- Home call-out important to those in the North West
-
- Figure 38: Further important benefits of membership to a breakdown organisation, by region and ACORN category, November 2003
- Marks & Spencer shoppers keen on benefits of membership
-
- Figure 39: Further important benefits of membership to a breakdown organisation, by media usage, main supermarket visited and commercial TV viewing, November 2003
- Men show preference for individual cover…
-
- Figure 40: Other important benefits of membership to a breakdown organisation, by gender, by age and socio-economic status, November 2003
- …as do ABC1 families and third agers
-
- Figure 41: Other important benefits of membership to a breakdown organisation, lifestage, presence of children and Mintel’s Special Groups, November 2003
- Unlimited call-outs appeal to large households
-
- Figure 42: Other important benefits of membership to a breakdown organisation, by marital status, working status, household size and tenure, November 2003
- Rising neighbourhoods comprise a receptive market
-
- Figure 43: Other important benefits of membership to a breakdown organisation, by region and ACORN category, November 2003
- A natural target
-
- Figure 44: Other important benefits of membership to a breakdown organisation, by media usage, commercial TV viewing and main supermarket visited, November 2003
- Tailoring benefits among recovery organisations
-
- Figure 45: Membership benefits considered important among members of main providers, November 2003
-
- Figure 46: Membership benefits considered important among members of main providers, November 2003
- Identifying the best targets
- Group 1 – Hot targets (54% of sample)
- Group 2 – Potential targets (19% of sample)
- Group 3 – Cold targets (26% of sample)
- Competition for custom could be tough
-
- Figure 47: Target groups, by gender, age and socio-economic status, November 2003
- Getting children to school on time
-
- Figure 48: Target groups, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Joint membership likely among hot targets
-
- Figure 49: Target groups, by marital status, working status, household size and tenure, November 2003
- A tailored service for Scotland
-
- Figure 50: Target groups, by region and ACORN category, November 2003
- Newspaper ads may work better than TV
-
- Figure 51: Target groups, by media usage, commercial TV viewing and supermarket usage, November 2003
- Assessing the needs of target groups
-
- Figure 52: Benefits of breakdown recovery considered important by target groups, November 2003
The Future
-
- Slowdown in membership
- More importance to be placed on renewals
- Further competition will drive down income
- Insurance companies increase their influence in the market
- Marketing strategies
- Consolidation among independent recovery operators
Forecast
-
-
- Figure 53: Forecast of the vehicle recovery market, by sector, 2003-07
- Vehicle recovery market continues to show growth
- Motoring organisations outpace the ad hoc sector
- Factors incorporated in the forecast
-
Back to top