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Analysis Of CPG Industry

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1. Executive Summary
The consumer packaged goods (CPG) industry is undergoing a major transition as U.S. shoppers continually shift their shopping behaviors and retailers become more powerful. Shoppers are changing the way they shop by using e-commerce, omnichannel shopping, and mobile platforms. The average grocery shopper is completely different than a shopper from just a decade ago. Consumption patterns are changing and shoppers are finding increasingly sophisticated ways to try to stretch their dollar. Thanks to technology, shoppers have the ability to easily compare pricing using mobile apps, gather information based on peer reviews and even get product recommendations via social networks and groups. Retailers are now increasingly launching their own brands, providing innovative new line of products and then marketing them as value-based, alternatives to national brands.
Based on these increasing demands, CPG companies have found that they must create new products, get products to the markets faster, and at lower costs in order to remain competitive. CPG companies like Beech-Nut Baby Food need to identify those consumer issues critical to them and make improvements if they are to reposition themselves for success.
Historically, the CPG industry, including medium-sized companies like Beech-Nut, have been slow to invest in new technology. It is true that CPG marketing departments have taken steps towards using technology. They have developed websites and mobile apps, but they often utilize third party companies. There are a small handful of CPG companies that have invested early to improve their analytical abilities. They are seeking to capitalize on the volume of data emanating from point of sale, in-store engagem...

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...g several store brands (private label) that they feel are just as good as national brands – and few shoppers plan to switch back. Only 27% plan to do so when the economy recovers.
3.6. Environmental Factors
Impact to the environment has become a growing concern in many first-world countries. The CPG industry has been affected and are responding to people’s concerns. For example, Coca-Cola industries has set forth a goal to reduce its carbon footprint. “Packaging accounts for nearly half of the carbon emissions in our value chain.” (http://www.cokecce.com/corporate-responsibility-sustainability/sustainable-packaging-and-recycling) By the year 2020, they hope to recycle more packaging than is used by them. They are setting up regional incentives to help encourage recycling- “in Great Britain and France, where less than fifty-five percent of PET bottles are recycled.”
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