Recessionary Consumers & Product Choice

Uncertainty currently clouds the economic prospects of both the US and world economies. This is because the US economy for the past decade has represented around 30% percent of the world total. The deepening international economic downturn is encouraging consumers to adjust their attitudes towards consumption but a gap exists however between shifting attitudes and actual behaviors

Report Highlights
Maintaining brand support through difficult times helps take advantage of competitors who often reduce marketing efforts. As consumers spend more time considering options before they spend money, this increases the likelihood of getting their attention with effective communications

Consumers may feel increasingly pessimistic and pressured by the negative economic environment, but this does not necessarily lead to a change in their behavior. An attitude-behavior gap exists making it essential for the CPG industry to be clear on the difference between what consumers are saying and when/if they actually start acting on it

Premium CPG products have in-built advantages in a recessionary environment. Dedicated premium consumers either tend to have income advantages supporting their consumption behavior or will make sacrifices in other areas to maintain their premium spending
[Studien Infos ausblenden]

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
INDUSTRY UPDATE 2
Cost of groceries up 6% since January 2
FLAVORS & FRAGRANCES 4
Soup: top flavors in new products 4
Wine & Wine Coolers: top flavors in new products 5
Skin Care: top fragrances in new launches 6
Dish Soaps & Detergents: top fragrances in new launches 7
NEW FOOD REVIEW 8
Developing a more cultured approach to food 8
New food launches by category, February - April 2008: candies continue to decline 11
Product claims: new Food launches, February - April 2008 12
NEW DRINKS REVIEW 13
Coffee reaches innovation high 13
New drinks launches by category, February - April 2008: a boost in isotonic & energy launches 16
Product claims: new drinks launches, February - April 2008 17
NEW PERSONAL CARE REVIEW 18
Helping consumers gain a restful night's sleep 18
New personal care launches by category, February - April 2008: facial cosmetics still sitting pretty 21
Product claims: new personal care launches, February - April 2008 22
NEW HOUSEHOLD GOODS REVIEW 23
Practical solutions mingle with novelty products 23
New household goods launches by category, February - April 2008: bubble bursts for dish soaps & detergents 26
Product claims: new Household Goods launches, February - April 2008 27
APPENDIX 28
About Productscan 28
Editors 28
Ask the analyst 29
Datamonitor consulting 29
Disclaimer 29
[Inhaltsverzeichnis ausblenden]

Figure 1: Good value for money has become the most important influence over grocery store choice globally 16
Figure 2: Different age groups' recessionary CPG behaviors will vary based on their range of needs and exposure to financial pressures 22
Figure 3: Key CPG categories face varying levels of risk from changing consumer attitudes and behaviors 23
Figure 4: Larger distribution formats with price competitiveness and bulk-buying opportunities have enhanced appeal to recessionary consumers 25
Figure 5: A number of consumer and economic drivers and inhibitors will shape premiumization in an uncertain economic environment 27
Figure 6: A contraction of the premium market is expected - its extent will be driven by the duration of the economic uncertainty 29
Figure 7: Case Study: Anheuser-Busch has shown beer to be a resilient market through performance of its low-end brands 38
Figure 8: Firms in the middle need to move either up or down-market or face ""death in the middle"" 40
Figure 9: Manufacturers must excel - more than competitors - in the provision of factors associated with the Premium Price Index (PPI) in order to justify price increases during times of recession 41
Figure 10: Case study: Diageo has expanded its high-end spirits offerings into ""discernment territory"" 43
Figure 11: Consumers will become more savvy to shrinking pack sizes which makes the ethical stance all the more important 45
Figure 12: Case Study: Starbucks boosted customer loyalty and provided additional savings through free Wi-Fi and reward schemes in 2008 52
Figure 13: Case Study: US automakers appeal to consumers' concerns over fuel prices with free and subsidized gasoline deals with new vehicle purchases 53
[Tabellenverzeichnis ausblenden]