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Times & Trends

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
Marketers are recognizing the need to take consumer understanding one step further -- not only looking at consumer segments and micro-markets but further dividing their shopping behavior into “trip missions.”

Extensive research into trip missions has revealed that trip missions have a dramatic impact on where consumers shop and what they buy. Insights from this research empower CPG manufacturers and retailers to create the assortment, placement and promotion plans that drive growth through increased share of specific trip missions and/or basket growth within a trip type.

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With an estimated $535 extra spent on gasoline this past year, coupled with rising CPG product prices due in large part to rising fuel costs, U.S. households have felt their budgets strain.

This assessment provides CPG manufacturers and retailers with insights required to see and act upon new opportunities and risks related to gas price cycles.

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As consumer decisions have become more complex due to both product proliferation (there are now nearly 1 million CPG products available) and merchandising proliferation, merchandising strategies and tactics have not kept pace to address evolving consumer needs.
That may be changing. Early indicators suggest that CPG practices may be on the verge of a major transformation.

This report summarizes findings from an in-depth assessment of trends in merchandising activity and effectiveness and highlights best practices as CPG marketers begin to move towards a consumer-centric approach to merchandising.

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“One-stop-shopping” has clearly become an outdated term: three-quarters of today’s consumers shopped in five or more channels this past year to meet their CPG needs. Multi-channel shopping is now the norm.

This report covers how channel migration is showing signs of slowing. Supercenters appear to be pulling share predominantly from traditional mass merchandiser stores, while grocers have successfully maintained share.

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Two major events are driving changes in purchase and shopping behavior among consumers aged 55+: 1) over the next decade, roughly 31 million pre-seniors (now age 55-64) will turn 65 and 2) seniors (age 65+) gained access to prescription insurance through Medicare Part D on January 1, 2006, and over 33 million have enrolled.


This report summarizes results from an extensive analysis of purchase behavior among 55+ consumers to assess current and likely future impact of these events.

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