IBM recently released a new Institute for Business Value whitepaper titled, "The Future of the Consumer Products Industry" which identifies the powerful macroeconomic, demographic and social trends that are driving deep changes across the CP industry.
For most of the 20th century, the CP industry grew largely by improving its ability to develop and sell products to a relatively affluent, homogenous market of shoppers, who responded in familiar and predictable ways to the traditional 4 Ps of price, product, place(ment) and promotion.
The CP industry of the future will be led by those companies willing to take bold, innovative steps to define the markets they serve, re-imagine the channels they use, and transform current business models, while executing flawlessly against six capabilities:
- Globalization – Balancing market demands for localization with global/standard operating efficiencies
- Differentiation – Deploying assets and processes to create sustainable differentiation
- Integrated information – Integrating information to drive the business through insight
- Innovation – Create and deliver offerings that go beyond consumer expectations
- Consumer-centricity – Finding new ways to connect with consumers
- Corporate responsibility – Integrating corporate responsibility into the organization's DNA.
In conjunction with the release of “The Future of the Consumer Products Industry”, IBM recently released the results of a research study that found Americans at all income levels are refusing to sacrifice quality, value and nutrition to save money on food, despite difficult financial conditions.
The study also revealed that the current economy has led U.S. shoppers to reassess the brands they purchase, the stores they patronize and their preferred packaging – all with an eye toward finding ways to save money. Respondents said that this in-store spending strategy would last beyond the recession.
The study was based on interviews with 4,000 U.S. residents across all income levels. Among the findings:
- 72 percent of respondents are more concerned with quality than price while food shopping.
- 90 percent of respondents said that value and nutrition will be of equal or greater importance when the recession ends.
- 68 percent say nutrition is the most important consideration when food shopping.
- 49 percent are shopping at multiple stores to get the best deals.
- 35 percent of respondents said that they have changed grocery stores to save money.
- 52 percent of consumers are reducing the volume of food they purchase from the grocery store.
For more informatoin
- The white paper The future of the Consumer Products Industry
- IBM’s Consumer Products website http://www.ibm.com/consumerproducts has a bunch of links to information about the industry
- On the survey mentioned above, see the press release: http://www-03.ibm.com/press/us/en/pressrelease/28481.wss