It's time for consumer packaged goods companies to move out of hunkering-down mode and get serious about product innovation. That's the gist of new research from the the Grocery Manufacturers Association (GMA) and PricewaterhouseCoopers LLP.
"It will be tough to succeed using the same tactics employed during the recession," said Lisa Feigen Dugal, North American consumer packaged goods & retail advisory leader, PricewaterhouseCoopers, in a press release. "Novel approaches will be crucial -- and that includes creating new trade promotions programs for retailers, rethinking how they spend their media dollars, targeting coveted demographic groups like Generation Y with smart social networking campaigns, reaching customers in more places, and tailoring their products for local customer tastes in emerging markets."
According to the study, Forging Ahead in the New Economy, many CPG companies are looking to better understand consumer priorities to develop products and package sizes that meet the needs of shoppers. Tailoring products to local tastes, especially in emerging markets, is also seen as key to attaining wider distribution of products.
Discussion Question: How do you define innovation in CPG terms and where do you see it taking place today? On which aspects of product and package design would you suggest manufacturers concentrate?
- CPG Industry Must Capitalize on Innovation and New Growth Opportunities, According to New Grocery Manufacturers Association-PricewaterhouseCoopers Report - Grocery Manufacturers Association
- 2010 Financial Performance Report: Forging Ahead in the New Economy (.pdf download) - Grocery Manufacturers Association