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Times & Trends

Merchandising Trends: Driving Consumption through Shopper Marketing

January 2012

This issue of Times & Trends explores current and emerging merchandising trends that CPG marketers have embraced during the past few years in an effort to satisfy consumers’ rapidly changing definition of value.               

 
Find Times & Trends Back Issues 

 Times and Trends

Merchandising Trends: Driving Consumption through Shopper Marketing

January 2012

This issue of Times & Trends explores current and emerging merchandising trends that CPG marketers have embraced during the past few years in an effort to satisfy consumers’ rapidly changing definition of value.               

 
Find Times & Trends Back Issues 

 Times and Trends
2004-2005 was one of the most active years for new CPG product activity in recent history. A record number of both food & beverage and non-food brands was introduced this past year.The success rate, however, remained roughly the same as we have seen over the past decade.
 
A review of how they won in the marketplace by delivering against specific, emerging consumer needs provides critical insights that can be leveraged to improve the industry success rate going forward.

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2005 was a remarkable year for the CPG industry.

A devastating hurricane season displaced consumers, closed retailers’ doors, drove huge demand swings across categories and resulted in sizable price increases across key ingredients, such as sugar. The hurricanes further increased high fuel costs, which strained budgets among low income consumers and pushed packaging and distribution costs sky high.

This report is intended to help CPG manufacturers and retailers see market opportunities and risks by benchmarking performance versus the industry, act on these insights with speed and confidence and win at the shelf.

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The past few years have been marked by an extraordinary level of innovation across CPG food and beverage categories in an effort to deliver against consumer health and wellness needs. The reformulation of products to remove trans fat, creation of new ingredients to provide whole grain benefits without sacrificing taste and introduction of innovative packaging to help consumers manage caloric intake have enabled the industry to take a huge leap forward in providing healthier alternatives to consumers.

This report translates better for you” initiatives into profitable sales growth. It requires an understanding of the complexities of consumer eating behavior and ongoing identification and monitoring of untapped opportunities.

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In the quest to understand and predict consumer spending patterns, many CPG marketers may be missing a powerful influencing factor – the economy. Consumer purchase decisions are clearly impacted by a broad range of factors – many within marketers’ control, but the economy provides an underlying current that wields strong directional influence.

This report summarizes results from an extensive analysis of the link between U.S. economic health and CPG/healthcare industry sales and highlights implications for CPG marketers.

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As value channel growth begins to plateau, supercenters, mass merchandisers and club stores are increasingly staking a claim on private label shoppers. While grocery channel private label share is essentially flat, share across value channels is growing.

As detailed throughout this report, private label development, performance and potential vary dramatically by category. And, beyond food and beverage staples such as eggs and milk, the propensity to purchase private label varies substantially across consumer segments.

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