B&Q Consumer Perceptions and Values: Statistical Analysis - Dissertation Example

0 History and Introduction There is the continual need to repair and maintain homes increases demand for home improvement, increases consumer wealth, and enables people to have more fashionable and stylish homes. DIY (‘do-it-yourself’), defined by the Office for National Statistics (ONS) is: “Decorators’ and DIY supplies, including both self-assembly and ready-made kitchen units, sanitary equipment, sheet glass, paint and lighting, but excluding electrical fittings and accessories.” (Fenn, 2000) 1.

1 Introduction to DIY The effects of the last economic recession held back spending on DIY up to 1995 because the housing market was slow to recover. A period of vigorous market growth from1996-1999 was mainly due to upturn in house sales. In volume terms, the market grew by a total of 56.8% from 1995 to 1999. In 1998 and 1999, paint, wood care, power tools and hand tools sectors witnessed a rapid growth. The manufacturers of the DIY paint sector brought in new colours and encouraged consumers to try more adventurous colour schemes.

The value of the market was aided by moving away from white to other colours and by strong advertising by the leading brands. Similarly, the wood care sector was also growing strongly and is estimated to have reached a value of £186m in 1999. Despite the fact that the industry has invested heavily in the advertising and promotion to win back market share, demand for wall coverings suffered a steep down turn due to a reaction against the highly decorative coordinated wall coverings. Glazed ceramic tiles are thought to have considerably more potential in the UK.

The launch of innovative new ranges by UK manufacturers has helped to develop the market. However a downturn in the market value was seen to appear in 1999. The DIY sector showing the largest growth was that of power tools. The launch of multi-function tools by Black & Decker and Bosch played a major role in boosting the sales. Heat guns and other product also showed strong sales in 1998. The hand tools sector remained healthy with many products launched in the year 2000. Despite the growth in volume sales of decorating tools,