- Consumer Goods Companies Seek to Improve Profitability in U.S. for 2008
- Go-to-Market Strategies Redefined With Demand Driven Data
- Market Innovators Look to Consumer Insights
- Targeting Shoppers Provides Unprecedented Opportunities for Revenue Growth
- Out-of-Stock Measurement Affects Resource Optimization
- Business Investment Critical to Economic Growth
As Consumer Goods companies seek new growth for 2008, they are focusing on improving profitability in the more mature U.S. market - where there are constraints on revenue growth - while looking to emerging markets to achieve overall sales objectives.
Revenue growth for the world and U.S. economies over the next year may be impacted greatly by concerns about oil prices, regulatory demands and a decrease in the numbers of qualified workers. Senior executives are projecting slower revenue growth for the U.S. economy, while remaining optimistic about stronger performance in the global economy.
Availability of granular information from retailers makes it possible for Consumer Goods companies to drive specific prioritized activities to their field execution teams. Leading CPG companies have made significant advances in in-store productivity by integrating retailer POS and syndicated census data to drive dynamic execution, thereby focusing their field sales investment toward the most value added opportunities.
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In light of new consumer insights and their implications, some manufacturers have started putting more emphasis on consumer shopping occasions and need states. A focus on the consumer in the outlet requires improved channel-specific retail merchandising and execution. CPG companies and retailers must anticipate how shopper behavior impacts future buying decisions and develop new strategies to meet such a fundamental shift in approach to the retail landscape.
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The emergence of shopper marketing is rapidly making an impact on consumer products manufacturers and retailers. As 70% of all purchasing decisions are made in-store, and 68% of in-store purchases are impulse decisions, it is critical that CG companies understand that the “shopper” is not necessarily the “consumer” and must market to them as such.
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Reducing out-of-stocks helps retailers lessen merchandising costs, while contributing to enhanced shopper satisfaction. An effective and sustainable measurement system is essential to a company’s strategy, as is an understanding of the causes and types of OOS in the retail marketplace.
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The USA has been on an unprecedented run of economic growth and stable prices over the last 25 years, but a couple of basic macroeconomic factors are conspiring to make 2008 a rocky year for retail. Lead by a declining US dollar and a dramatic reduction in investment liquidity, retail can expect price inflation in the marketplace, commodity pricing pressure, and increased energy costs to reduce demand.
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