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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.               

 
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 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
As the supercenter format matures, and competing retailer strategies take hold, supercenter share gains are shrinking, and a new cross-channel battleground is emerging -- one that is just as intense, but is far more complex.  The range of  strong competitors has grown, their strengths are varied, and the battles are more targeted – being played out to a much greater extent at the category and consumer-segment level. 

This report examines CPG manufacturer and retailer opportunities and risks in this new era of channel migration and explores what the future holds as express stores come onto the scene.

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To influence consumer behavior, marketers who focus on the total consumer will have an edge. An edge that is sorely needed in markets in which demand is not growing on its own, traditional methods of increasing demand are losing their efficacy and the competition for a piece of the pie is intensifying.

This report shares new global insights into consumer behavior across these three roles to form the foundation of marketing and merchandising strategies that drive increased store traffic, larger baskets and brand and category growth.

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After decades of seemingly unstoppable growth, the world’s largest retailer has hit an impasse: supercenter expansion is increasingly cannibalizing existing stores (same store sales growth dipped below 2% for the first time in Wal-Mart’s history last year), and an aggressive plan to capture a greater proportion of “upmarket” sales fell flat.

This issue of Times & Trends explores drivers of Wal-Mart performance and early results of key strategic initiatives.  The report also highlights new opportunities and risks for CPG manufacturers and retailers resulting from Wal-Mart’s new growth plan.

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Medicare Part D outreach. Discounted generic drugs. In-store health clinics. Retailers are increasingly investing in healthcare-based initiatives to drive store traffic, enhance customer loyalty and increase sales.

Yet, despite major strides in developing healthcare marketing strategies that work (and they are working to drive share pharmacy shifts, as detailed throughout this report), few retailers and manufacturers are fully leveraging these initiatives to drive growth across the store.

This issue of Times & Trends explores current retail marketing practices and opportunities to extend these initiatives to drive brand, category and total store growth.

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While down slightly from last year’s record number of new product introductions, this past year was still one of the most active in recent history.Yet, despite the high numbers, success rates remained consistent with rates over the past decade. Less than one-quarter of introductions met the New Product Pacesetters hurdle of $7.5 million or greater in year-one sales. In fact, only 3% of food and beverage introductions and 1% of non-foods exceeded $50 million in their first year.

This report provides a detailed assessment of this year’s winners to reveal the product benefits that resonated with consumers, the trends to watch for future new product opportunity and sales benchmarks to consider when evaluating new product introductions.

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