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Times & Trends: 2009 CPG Year in Review - A Market Redefined by Personalized Shopping Strategies

February 2010

This issue of Times & Trends explores economic, channel, department and category performance over the past year.  The report is intended to help CPG marketers understand market opportunities and risks by benchmarking performance versus the industry, and act on this knowledge with confidence and agility.   

 
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 Times and Trends
Change is underway at the world’s largest retailer, and, as history has shown, when Wal-Mart changes, the industry changes.

The insights provided in this report are intended to help CPG manufacturers and retailers see potential new category, brand and store growth opportunities and risks that will arise from changes underway at Wal-Mart; act on these opportunities with speed and confidence and win at the shelf.

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Dollar stores have been around for over 50 years, but the channel has only recently reached the status of major retail outlet. The recent success of dollar stores is the culmination of a number of factors that have been at work for several years.

Read about how this report can provide CPG Manufacturers and Retailers with insights required to see potential new category, brand and store growth opportunities and risks; act on these opportunities with speed and confidence and win at the shelf.

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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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