Table of Contents
Issues in the Market
Key Themes of the Report
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- Definition
Insights and Opportunities
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- Making it personal
- Personalised coffins
- Moving away from tradition
- Make it easy to prepare
Fast Forward Trends
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- Trend One: Memories Are Made of This
- Definition
- What it is – general observations
- Market implications
- Trend two: Mans little helper
- Definition
- What it is – general observations
- Market implications
Market in Brief
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- Market volume in decline but value growing
- Planning
- Funeral type
- Future
Internal Market Environment
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- Key points
- The final taboo?
- Concern about the future is increasing
- Babies and marriage
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- Figure 1: Agreement with the statement ‘I like to enjoy life and don’t worry about the future, by lifestage, 2002-06
- Third agers and retired prepare for tomorrow
- Retired live for today and prepare for tomorrow
- Not facing the grim reaper
- Wills
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- Figure 2: Proportion of consumers who have made a will, by gender, age, socio-economic group and lifestage, July 2006
- A light regulatory regime
- Pre-paying regulation
- State aid for funerals
- Shortage of burial sites
Broader Market Environment
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- Key points
- Death rates continue to decline
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- Figure 3: Death rates and population, UK, 2000-05
- Healthier nation
- Life expectancy continues to rise
- Cold times
- Significant events
- Changing age profile of the population
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- Figure 4: Total UK population, by age group, 2001-11
- More people will start thinking about funerals?
- Potential growth
- Factors boost pre-planning opportunities
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- Figure 5: Population by socio-economic status, 2001-06
- Rising incomes may increase spend
- More than 60% of old persons are owner-occupiers
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- Figure 6: Tenure by age of household, 2003/04, GB
- Live alone, die alone?
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- Figure 7: Total number of one-person housedholds and as percentage of all households, 1961-2005
- Religious affiliation
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- Figure 8: Religious affiliation, GB, 2001
- Different religions
- Muslims
- Hindus
Competitive Context
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- Key points
- Funeral pre-plan policies outperform whole of life policies
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- Figure 9: Number of whole of life policies and funeral plans sold, 2001-06
- UK lags Europe in pre-payment plans
- Changing attitudes of the over-50s
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Personalisation
- Gay funerals
- Lifegems
- Natural funeral products
- Global innovations
- Swedish freeze-dry burials
- US ashes to artificial reefs
- Coffins from the supermarket
Market Value and Forecast
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- Key points
- Market value exceeds £1.3 billion
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- Figure 10: Components of funeral cost
- Figure 11: The UK funeral business, by number of funerals and value, 2000-06
- Declining in numbers but not cost
- Rising funeral costs
- Forecast
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- Figure 12: Forecast of the UK funeral business, by number of funerals and Value, 2000-06 (Est)
- Factors used in the forecast
Segment Performance
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- Key points
- Cremations increase share slowly
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- Figure 13: Number of funerals in the UK, by type, 2000-06
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- Figure 14: Market value of funerals in the UK, by type, 2000-06
- Pre-payment plans steady
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- Figure 15: Number of pre-payment plans sold by FPA members, 2003-06
- Benefits of pre-payment plans
- The key benefits of pre-payment plans (to buyers):
- Prices and payments
- Non-traditional funerals grow
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- Figure 16: Numbers of non-traditional funerals and natural burial sites, 2000-06
- Natural funerals
- Non-religious funerals
- Burials at sea
Companies and Products
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- Key points
- Market shares
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- Figure 17: Market shares of the UK funeral business, 2005
- The Co-operative Group (CGL)
- Strategy
- Recent developments
- Regional Co-operatives
- Dignity plc
- Strategy
- New initiatives
- Regional companies
- Laurel Management Services
- Lodge Brothers
- Traditional Family Funerals Company
- Pre-payment plans
- Dignity Pre-Arrangement Ltd
- The Co-operative Group
- Golden Charter
- Perfect Choice
- Other providers
Brand Communication and Promotion
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- Key points
- Promotional spend is increasing
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- Figure 18: Main monitored media advertising expenditure by funeral directors, 2001-06*
- Few heavy spenders
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- Figure 19: Main monitored media advertising expenditure by funeral directors, by advertiser, 2002-06
Channels to Market
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- Key points
- Only direct distribution is viable
- Slow rationalisation of outlets
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- Figure 20: Number of funeral outlets, 2002 and 2006
The Consumer – Funeral Wishes
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- Key points
- Have given it some thought
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- Figure 21: Consumer funeral wishes, October 2006
- Preference for burial unfulfilled?
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- Figure 22: Consumer funeral wishes, by age, October 2006
- Environmental funerals are popular
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- Figure 23: Attitudes towards environmental funerals, October 2006
- Differing views
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- Figure 24: Attitudes towards environmental funerals, by funeral type, October 2006
- When the time comes opinions may change
- Care about cost of the environment?
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- Figure 25: Consumer agreement with environmental funeral options, by age, social group and religion, October 2006
- Encouraging changes in attitudes
- Funeral planning’s a good idea
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- Figure 26: Consumer agreement with funeral planning options, October 2006
- How to…
- And many make someone aware
- But few actually make a plan
- Pre-payment is also the right idea
- Planning another’s funeral key trigger to planning one’s own
- How much?
- ABs and men more likely to have arranged a funeral
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- Figure 27: Likelihood of having arranged a funeral by gender, age and social group, October 2006
The Consumer – Funeral Directors
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- Key points
- Funeral directors to retain the central role
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- Figure 28: Consumer attitudes towards funeral directors, October 2006
- A guiding hand
- Counsellors not ministers
- More DIY funerals?
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- Figure 29: Consumer groups most likely not to use a funeral director, October 2006
- Factors influencing choice of funeral director
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- Figure 30: Factors influencing choice of funeral director, October 2006
- Features funeral directors must have
- Reputation and awareness
- Cost
- Funeral directors can differentiate their offer
The Consumer – Further Analysis
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- Key points
- Market segments defined
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- Figure 31: Consumer typologies, October 2006
- Most Prepared (39%)
- Who are the ‘Most Prepared’?
- Least Prepared (31%)
- Who are the ‘Least Prepared’?
- Ecologically-averse (30%)
- Who are the ‘Ecologically-averse?
- How do pre-planners select their funeral director
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- Figure 32: Factors most likely to influence funeral director selection, pre-planners, 2006-12
Appendix
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- Introduction
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Internal market environment
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- Figure 33: Agreement with the statement ‘I like to enjoy life and don’t worry about the future, by gender, age and lifestage, 2002-06
- Figure 34: Agreement with the statements concerning planning for the future, by gender, age, social grade, lifestage, marital status and tenure, July 2006
- Broader market environment
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- Figure 35: Death rates and population, UK, 2000-06
- Figure 36: Age distribution of registered deaths in England & Wales, by gender, 2005
- Figure 37: Total number of GB households and one-person housedholds, 1961-2005
- Figure 38: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
- Attitudes to funerals – Detailed consumer demographics
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- Figure 39: Consumer funeral wishes, by gender, age, region, social grade, newspaper readership, household income, age of own children, regular grocery shop and region, October 2006
- Figure 40: Consumer agreement with funeral options, by gender, age, region, social grade, newspaper readership, household income, age of own children, regular grocery shop, working status and religion, October 2006
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- Figure 41: Consumer agreement with funeral options, by gender, age, region, social grade, newspaper readership, household income, age of own children, regular grocery shop, working status and religion, October 2006
- Figure 42: Planning experience and funeral preparations, by gender, age, region, social grade, newspaper readership, income, age of own children, Internet usage, regular grocery shop, working status, commercial TV viewing and religion, October 2006
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- Figure 43: Planning experience and funeral preparations, October 2006
- Figure 44: Funeral preference by attitudes towards funerals, October 2006
- Detailed consumer demographics 2 – Attitudes towards funeral directors
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- Figure 45: Consumer attitudes towards funeral directors, by gender, age, region, social grade, newspaper readership, income, age of own children, Internet usage, regular grocery shop, working status, commercial TV viewing and religion, October 2006
- Figure 46: Most important four factors influencing choice of funeral director, October 2006
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- Figure 47: top two ranking factors influencing choice of funeral director, by planning behaviour, October 2006
- Figure 48: Factors important when choosing a funeral director by gender, age, region, social grade, working status, newspaper readership, age of own children, regular grocery shop, commercial TV viewing, and religion, October 2006
- Detailed consumer demographics 3 – Further analysis
- Consumer typology methodology
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- Figure 49: Consumer typologies by gender, age, region, social grade, working status, newspaper readership, age of own children, regular grocery shop and lifestage, October 2006
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- Figure 50: Consumer typologies by consumer funeral preparations, October 2006
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