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Times & Trends

Times & Trends:  Zero-Moment of Truth: Redefining the Consumer Decision-Making Process

October 2009

No doubt, consumer packaged goods is a whole new ballgame today.  It’s a game centered on the consumer.  It begins and ends with the consumer mindset.  CPG marketers with an intimate understanding of how the consumer is wired and a deft ability to market to the new consumer will win the game in the long run.

This issue of Times & Trends provides insight into the mind of the new CPG shopper.

 
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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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The Hurricane Katrina tragedy has prompted many CPG manufacturers and retailers to reexamine their disaster plans to ensure that consumer needs can be effectively and efficiently met in times of crisis.

This fourth and final report summarizes learning in each of these areas, provides an update on market changes during the third and fourth week following Hurricane Katrina and highlights recommendations for industry disaster planning efforts.

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As Gulf Coast consumers make plans to rebuild their lives following Hurricane Katrina’s devastation, consumer packaged goods (CPG) manufacturers and retailers are examining and enhancing disaster plans in an effort to ensure that they are prepared to meet consumer needs during catastrophic events.

This third report examines sales trends two weeks after Hurricane Katrina hit the Gulf Coast on August 29, 2005.

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