The consumer products industry is very hard to define because of its rather eclectic nature and its close relationship to many other industries. For our purposes, it can be described as enveloping practically every item an individual can purchase, especially in the areas of toiletries and cosmetics, appliances, electronics, beverages and food, and other generic household items.streetfightmag.com Analysts often divide it into two categories, durable and nondurable. The former includes items with staying power, like home furnishings. The latter includes more ephemeral merchandise, with a life expectancy of fewer than three years, like personal care items.youtube.com The consumer products industry is a powerful industry, as it accounts for two-thirds of the volume of trade in the world economy. Due to its close relationship to other industries, the consumer products industry plays an important role in the global economy.
It is the source of a significant portion of the gross domestic product (GDP) of many countries, and also acts as a driver for other industries, especially advertising and retail. These last two industries are very important to the consumer products industry as they typically invest in consumer products companies. The industry is now well-established in the marketplace, having benefited from substantial growth as a result of the industrial revolution of the mid-19th century in Western Europe and the United States. The revolution made it possible to manufacture many goods in an efficient, cheaper, and consistent manner. This enabled more people to buy more products, ultimately resulting in the creation of an urban middle class that had the means to demand more goods and the time to spend obtaining them.
Since then, the consumer products industry has been a major component of every nation’s economy. Since there are many virtually identical products made by any number of companies, success truly depends on savvy marketing to create a brand name consumers will know and trust. Product differentiation and brand name are the biggest barriers to entry for new firms and the most valuable assets existing companies in this industry have. It is a sink-or-swim industry where each new product launch is a risk and the competition is fierce. As a well-established and mature industry, most of the major companies operating within consumer products tend to be well-diversified conglomerates, whose many subsidiaries represent multitudes of brand names.
The most recognized names are part of a larger multi-category corporation. These include Sara Lee Corporation, Unilever, Proctor & Gamble, Nestle, and S.C. Johnson. Together, they represent thousands of brands on the market. There are also generic brands that produce cheaper "knock-offs" of the conglomerates above produce. Those companies are numerous and tend to locally owned and operated. Recently in the industry, there has been an increasing reliance on technologies. The interactive qualities of the internet and the cost-effective benefits of other technology are increasingly being utilized to help create a closer relationship between consumers and more efficient enterprises. Customer relationship management (CRM) applications, programs which collect information about customer behavior, have also seen a rise in importance as companies strive to better understand their target market to increase sales and market presence.
Radio-frequency identification (RFID), which is used to tag product shipment and gather information used to boost supply chain efficiency. The increased use of this technology is being pushed by the retailers who sell the consumer products. Many companies now have interactive websites where consumers can play product based games and purchase goods. Aside from technology, the consumer products industry has also seen a rising inclination for companies to engage in mergers, acquisitions, or alliances. This is for many reasons including reducing risk when creating new products or expanding into new markets, reaching new demographics, increasing operating efficiencies, reducing capital outlays, or cutting costs. Recently, with American and European markets becoming increasingly competitive, manufacturers of consumer products are turning towards emerging markets in boom nations like India, China, Russia, Brazil, and Turkey.
While there are obvious benefits to this, there are also several risks involved with producing internationally. Emerging economies often play by different rules than developed ones, and the governments can be prone to corruption, impeding the profitability of businesses. The future of this industry looks bright as demand is likely to increase due to the increasing appetites for commodities in emerging retailing markets, such as those in China, Russia, and India. There are also the well-established markets of Japan, Western Europe, and the United States which maintain a steady demand. Consumers have become accustomed to having these products in their life and may not be able to stop purchasing them for this reason. The inexpensive, ready-to-assemble home furniture section is a growing segment of the industry, reaching a broader, more mainstream market with the successes of manufacturers like IKEA International. Toiletries and cosmetics are also expected to maintain a constant, if not increasing, demand as an aging world population seeks to look younger. Prices for commodities that are used to produce these goods have also fallen recently; further increasing profit margins to companies.
Advertising is a costly affair, and companies have to spend millions of dollars on it. It should always be within the limits of funds provided. Naturally, decisions in selecting an advertising package should be properly adjusted to the allocated AD budget. 2. Consumer products like toothpastes or chocolates are highly competitive with many substitutes readily available in the market. Naturally, extensive advertising on TV, newspapers, radio, etc. is required. These media are costly. So, the manufacturing or marketing company will have to provide huge money for advertising purpose. 1. The message gets delivered through the text of an advertisement. It is passed through written words, pictures, slogans, and signs. It is for the information, guidance and motivation of prospective buyers. Attractive and meaningful messages give positive results, and the advertising becomes result-oriented.
For this, the services of creative writers, artists, etc., are used to give an appealing message to the consumers. 2. Here, the advertiser has to decide: 1. How to deliver the message? 2. Which media to use for communicating the message? 3. What would be the extent of creativity? 4. Which specific customer group be targeted with the message, so on. 1. The advertiser has to take a crucial decision about selecting a proper media for an advertising purpose. Media differ as regards to cost, coverage, effectiveness or impact, etc. The selection of media depends on the budget provided, products getting advertised, and features of prospective buyers, so on. A wrong decision on media may make entire advertising ineffective and money spent on it will be wasted.
Therefore, a media should be properly selected, and decision in this regard is essential and critical. 2. For advertising popular and extensively used consumer items like chocolate, the media should be selected properly. Cartoon TV channels, comic books, newspapers supplement meant for kids, etc., should be preferred. 1. Measure relates to the effectiveness of advertising. An advertiser will like to evaluate advertisement in order to judge its effectiveness. If an advertisement is not effective, it will be modified or withdrawn. It is necessary for avoiding expenditure on the advertisement that is not purposeful or is not likely to give any positive results. An advertiser has to measure the effectiveness of his ad program or campaign and take suitable decisions.
This decision-making as regards effectiveness of advertisements is equally important and essential. Such testing facilitates an introduction of appropriate remedial measures if required. 2. For measuring effectiveness of chocolate advertising, the post advertising sale is one major consideration. Demand creation in new market segments or new age groups is another factor in the measurement of an ad effectiveness. Even the success of a sales promotion program is useful for measuring the effectiveness of an advertisement. In brief, like other areas of marketing management, decision-making is necessary for advertising. It relates to Five M's - Mission, Money, Message, Media and Measurement. Functions of advertising agency.shareablee.com Client agency relationship in advertising. Organizational structure of advertising agency.
These green clothing products are generally made with unbleached cotton, hemp or some form of recycled material. These products are designed to be as durable as their counterparts and to be more eco-friendly. The green clothing consumer-products category can also be seen in the development of clothing consumer-products or how these clothing consumer-products are made. For example, many clothing companies have decided to opt for a more green production rather than a green clothing base. For example, several different companies have opted for new lower pollution methods of creating their clothing consumer-products rather than changing the clothing base itself. These are still considered to be green clothing consumer-products and still have great benefits for the green living environments lifestyle.
Green baby consumer-products are one of the most popular green products on the market. This popularity grows daily with different companies offering green options for parents who are concerned about their children being subjected to chemicals and pollution in their environment. One of the most popular ways that green baby consumer-products are finding a niche in the green living community is to offer a reusable option to the more common disposable options. This offers a benefit of reducing waste and can reduce costs for the consumer. A popular example of this is the use of cloth baby wipes and cloth diapering.
A family who chooses to use a green cloth diapering consumer product option can expect to pay as much as 3/4 less than someone using a disposable option. The cloth diaper also reduces the waste caused by disposable diapers which leads to a global green benefit. There are several other areas of consumer-products. In fact if you are seeking a green option for a consumer product you currently have nine times out of 10 you will be able to find a green option. This was not the case several years ago when green consumer-products first began appearing on the market. However, now you will be able to find a green option for nearly every consumer product on the market and have a green option that will benefit you both financially and ecologically.
ATLANTA: Georgia-Pacific today announced that Kathleen A. Kathy Walters will retire as executive vice president - consumer products group, effective June 1, 2019, following a distinguished career in the consumer products and paper industry. David Duncan, who currently serves as executive vice president - building products group, has been named to lead the consumer products group.youtube.com Pat Boushka, currently president of GP Cellulose, will succeed Duncan as leader of the building products group. I want to thank Kathy for her leadership of the largest retail and commercial tissue and tabletop businesses in North America over the past 15 years, said Christian Fischer, president and CEO, Georgia-Pacific. The consumer products group has certainly benefited from her industry expertise and ability to drive growth through innovation, effective business strategies and operational improvements.
Walters joined the company in 2004, taking on leadership of its commercial tissue business throughout North America including sales, marketing, customer service, business development and strategy. Walters came to Georgia-Pacific after serving as president and chief executive officer of Sappi Fine Paper North America. Prior to that, she held a number of key leadership positions in Europe and the United States for Kimberly-Clark Corporation and Scott Paper Company. Walters is chairman-elect of the board of trustees for Syracuse University and is a member of the board's executive committee. She also is a member of the board of directors and executive committee for the Grocery Manufacturers Association, and serves on the boards of INVISTA, the Georgia Aquarium and the World Affairs Council of Atlanta.
Duncan joined Georgia-Pacific in January 2018 as executive vice president of Georgia-Pacific's building products group after serving seven years as president of INVISTA Performance Solutions - also a Koch Industries company. Duncan joined Koch in 1997 and held positions with Koch Capital Services and Koch Ventures, Inc., where he became managing director in 2001, and subsequently worked in Koch's business development group. In 2004, he was director of transition for the company's INVISTA acquisition. Later that year, Duncan joined Koch Minerals as CFO before returning to INVISTA in 2007 as executive vice president of its Downstream business. His responsibilities across several Koch companies bring key experience in transactions and business development, trading, manufacturing, marketing, sales, supply chain and R&D. Boushka, assuming the role of executive vice president of Georgia-Pacific's building products group, has served as president of GP Cellulose since 2006 and is responsible for the company's global pulp business. Munir Abdallah, currently vice president of sales and marketing for GP Cellulose, will succeed Boushka as president of GP Cellulose. Since 2009, Abdallah has been overseeing the business' commercial activities, including sales to more than 80 countries and pulp production planning for customers globally. He joined GP Cellulose in 1998 as a fluff pulp sales manager for Latin America, Middle East and Africa, and was instrumental in building the sales and service capability for the business.
I know it's often easier and more comfortable to stay loyal to the brands and products we buy. Even the word loyal has so many positive connotations that we can sometimes fool ourselves into feeling good about our loyalty to certain products. But here's the problem: the companies that manufacture the products that you loyally buy don't really care about you or your loyalty. They are interested in your loyalty only to the extent that it causes you to make habit-based decisions to buy their products. And it's these habituated purchasing decisions that leave us open to exploitation by the consumer products industry. Nobody, and I mean nobody, exploits my readers.
So today I'm introducing a new phrase that describes a state of mind you can use to protect yourself when shopping. That phrase is brand disloyalty. Today's post is about changing your mindset when you shop for food and other consumer products. Forget brand loyalty forever, dear readers. From now on, brand disloyalty will help you find better products, better prices and better values in all your purchases. I'll start by sharing an example from my life where I could have used some extra brand disloyalty. I spent the first ten years of my adulthood as a mindless loyalist to Tide Detergent. My Mom bought Tide all her life, therefore I bought Tide too. I didn't even think about it. Consumer products companies love mindlessly loyal consumers like this.
And I remained mindlessly loyal to Tide until one day when I looked up and down the detergent aisle and discovered that Tide cost nearly twice as much as the other brands in the store. Look, Tide is a good brand. And I'll bet that at one point it was priced at just a small premium to other detergents--otherwise, my mother, who grew up in the teeth of the Great Depression, never would have bought it in the first place. But I paid a price for a product that was well in excess of market value, thanks to years of habitual and passive buying decisions. Habitual and passive. That kind of consumer is the holy grail to consumer products companies, because they know that once we settle on a brand, we are highly likely to keep buying it, no matter what. Back to my Tide example.
At some point during my Tide-buying days, some mid-level marketing executive at P&G put in a price hike that pushed the price premium for Tide past the point of reasonable and into the territory of not worth it. But thanks to my mindless brand loyalty, I never noticed. I'll concede that some brands are truly superior and worth a premium price. And I'm not saying you can't buy brands. I'm saying don't let yourself become a passive consumer who makes habitual purchases. Stay disloyal, and be ready to dump any brand the moment it becomes not worth it. There's one common objection I get when I encourage consumers to question their habitual buying decisions. There's no need to agonize. And I don't want you to evaluate every product you buy each week--unless you enjoy all-day trips to the grocery store.
Just look carefully at one or two of the products you typically buy. See what other brands are nearby and compare prices. Have a quick look at the generic or store-brand versions. You might find a superior product for less money, or you might find an equivalent product for a lot less money. Brand disloyalty can also you help you outside the grocery store. Try using it when shopping for clothes, electronics and other household items. And applying brand disloyalty to big-ticket purchases--things like cars, furniture and appliances--can drive massive savings back into your pocket. You'll find a brand disloyalty mindset quickly become instinctive, leading you to make timely brand switching decisions that will help you make the most of the money you spend.
Ironically, if enough consumers adopt brand disloyalty and punish companies when they raise prices beyond the value of their products, the makers of branded products will have no choice but to respond by lowering their prices. This means you should be able to go right back to your old brands--with extra money in the bank to show for it! Brand disloyalty is all about seeing what's really happening with the products you buy--recognizing avoidable cost stacks, recognizing stealth price hikes when they happen and recognizing opportunities to get better value from competing products. It takes only a few moments of thought and an occasional questioning of your buying habits to permanently protect you from exploitation. Let's put mindless brand loyalty to death once and for all and adopt a mindset of brand disloyalty. Companies will respond to consumers once we stop being mindlessly loyal to their brands. I'd like to thank Kris at Cheap Healthy Good for initially prompting me to think about the issues surrounding brand loyalty. How can I support Casual Kitchen? If you enjoy reading Casual Kitchen, tell a friend and spread the word! Thank you for your support!
As the name suggests, durable goods are consumer goods that last over a period of time, often defined as three or more years. Why Create Classes of Goods? A much better way of understanding non-durables is that they usually don't last long at all. In the purest sense of the word, they're consumed, which means they have to be repurchased frequently, like groceries, wines and spirits, and gasoline. If you're an Amazon shopper, they're probably the kinds of goods you put on an automatic buy-cycle, such as paper towels and dish soap.theglobeandmail.com Durables, on the other hand, can last almost indefinitely. Automobile manufacturers spend a lot of money trying to convince you otherwise, but you can keep your car for years.
The same applies to your washer and dryer and the furniture in your house. When times are tough, consumers, industries and businesses of every size have to continue buying non-durables, but they often put off spending on durables until times are better. In the financial meltdown that began in 2007 and lasted through most of 2009, the national GDP (gross domestic product) fell by more than 5 percent, and unemployment peaked at over 10 percent. The GDP and the unemployment rate are closely related. 450 a week is still going to buy groceries, paper towels, gasoline and all the other things that keep a household functional. However, they're likely not in the market for a new car.
To generalize this difference: People continue to buy non-durables during tough financial times, although perhaps fewer of them and at lower price points, but they put off buying durables until they're back on track with a good job. Unemployment is one of the important reasons for the drop in the GDP. Similarly, if you're a plant owner, you put off buying a new automated fabrication machine until the market recovers. When consumers and businesses cut back on purchases of durable goods, they set in motion a classic instance of a vicious cycle. In a recession, when many people can't afford to buy a new car, car salespeople and line workers in auto plants lose their jobs. As a result, they buy less, which lowers the GDP and raises unemployment further.
Throughout the recessionary cycle, non-durable goods are purchased, perhaps at lower price points and in reduced quantities, but there's only so much cutting back a family can do. At some point, they still need groceries. Therefore, reductions in discretionary spending during a recession affect the durable goods markets dramatically and affect non-durable goods markets far less. If you own a business that sells non-durable goods, your company will be less affected by a recession than a business that sells durable goods. Investors take advantage of this difference by emphasizing stock purchases of durables in an expanding economy and changing course toward investments in non-durables as the economic cycle contracts.
Here's a good example of smart consumer behavior that takes the difference between the price performance of durables and non-durables into account. You've weathered the recession and after a while the economy, although not fully recovered, is looking up.youtube.com This is a good time to enter the housing market. Houses are big-ticket durable items, and although their prices don't rise and fall in lockstep with the stock market, in good times the pent-up demand for houses that weren't purchased during the recession inevitably drives prices up. From a more than 15 percent fall in U.S. 2019 housing prices will have recovered fully from the recessionary loss and added another 15 percent gain. A 30 percent difference in the cost of a house is a huge deal, and that gain is predictable.
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Four drivers of disruption—the economy, enabling technologies, platforms, and consumer mindset—present challenges and opportunities for consumer product companies. Most companies plan and manage for "business as usual," which often prevents them from being prepared for unexpected, disrupting forces that can dramatically change the marketplace. Examples include Uber disrupting the taxicab market, Amazon transforming the U.S. Airbnb reinventing the hotel industry. It’s critical for businesses to try to identify potential disrupting forces of today that might affect the business of tomorrow. Deloitte LLP’s 2017 Consumer Products Outlook discusses four catalysts driving disruption in the industry: the economy, enabling technologies, platforms, and consumer mindset. These catalysts present significant challenges and opportunities for consumer products (CP) companies, potentially disrupting traditional operating models, creating new ways of engaging with consumers, and changing the ways companies hire and manage talent.
The economic fundamentals for consumer spending appear solid going into 2017. The labor market continues to strengthen, disposable personal income is edging up, and average hourly earnings have started to accelerate. As the labor market tightens further, income growth is likely to increase in the short- to medium-term. Housing prices have surpassed their pre-2008 peaks and key equity indices hit all-time highs in November.forbes.com This has boosted household wealth, thereby bolstering consumer spending. Enabling technologies can drive radical change in the capabilities, structure, or economics of a business, user, or culture, often opening the door to entirely new business models and practices.brightpearl.com Develop strategies to influence the digital consumer purchase journey. According to a Deloitte report, "The New Digital Divide: The Future of Digital Influence in Retail," 56 cents of every dollar spent in a store is influenced by a consumer’s digital interaction with the product over multiple connected devices.
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