As consumers continue to tighten their wallets, product manufacturers are feeling the pinch. Add higher costs for health care, energy and raw materials to the equation and many manufacturers are forced to cut costs to maintain sales and profitability.  But if there is one overarching message for manufacturers, it’s this: do not pull back on innovation or marketing support.  Nielsen research reveals that brands that continued to invest in these areas during a downturn performed significantly better than their peers once recovery takes hold.
Nielsen looked at more than 100 client engagements …

Todd Hale, Senior Vice President, Shopper and Consumer Insights
The recession gripping the U.S. has prompted many families to eat in and to entertain at home, and in many ways, return to basics in an effort to save money.  Many analysts are predicting that the changes being witnessed in consumer behavior will be permanent.  While these changes have had a negative impact on some sectors, others have benefited by adapting to the changing times and leveraging fundamental brand strengths.  Two such sectors — canning and freezing supplies, and gardening supplies – …

Al McClain, Founder & CEO, Retail Wire
A primary theme of the high-energy general session on Day Two of the Nielsen Consumer360 conference was encouraging attendees to use the current recession as a learning opportunity, in order to build better relationships with consumers and/or reinvent business models.
From Nielsen’s James Russo, there was talk of the fact that great companies such as GE, Disney, Microsoft, and HP were started during economic downturns. And, he felt that consumers may soon be spending more, albeit with some restraint. Signs of the recession …

When the economy is buzzing, most companies can afford to overlook inefficiencies or take a broader view of what their customers want. But when times are tough, as they are now, companies have little choice but to re-evaluate how they do business if they hope to continue to grow and prosper. Managers are faced with essentially two choices: cut costs or understand precisely where the most profitable market demand is and align more effectively with it. Both options are difficult, but only one can achieve both short- and long-term objectives.

Tom Pirovano, Director, Industry Insights
Sales of store brands, or private label products, began to spike in 2007 just as we were seeing the first signs of an economic downturn. At first, these private label sales were driven by higher commodity prices, but volume growth began to catch up with dollar growth in mid-2008. As the economy continues to struggle, more and more consumers are replacing their branded products with private label equivalents. Store brands are up 10% to $84.4 billion in annual sales across categories …

Each new day seems to bring more bad news about the economy.  With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money.  For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom.  If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously …

A jar of mayonnaise or a package of tea is a straightforward product.  But if manufacturers market those products in the U.K. the same way they do in the U.S., they are probably making a mistake.  Nielsen has compiled the following “shopper truths” from around the world to help consumer packaged goods manufacturers and retailers successfully navigate consumer shopping behavior:

Same category, different market: often requires a different shopper strategy — While some universal truths exist within categories across borders, success of activation strategies …

As economic uncertainty continues to loom over most of the country, Americans are watching their money and shopping less. But while that fact might spell doom for the nation’s retailers, there are a number of opportunities available to those companies who are able to look at how consumers are changing their behavior and innovate in how they do business to leverage these changes.
“Big Players Think Small in Format Fights,” an article in Consumer Insight by Todd Hale, senior vice president, Consumer & Shopper Insights with Nielsen, outlines how the economy …

Mitch Barns, President, Greater China, The Nielsen Company
China is one of our fastest growing markets globally. We use our broad range of market research and analytical capabilities to bring our clients the clarity and insight they need to make good business decisions.  One of our priorities is to continuously invest in innovation to improve our capabilities in China.  One example of this is our new R&D center in Beijing.
Innovation is the engine of growth so it is important to continuously invest.  But during challenging economic times, we face a difficult …

Consumer habits are slow to change and their purchase interest in everyday goods is relatively stable over time regardless of macroeconomic conditions. The same principles that guide new product innovation decisions during normal economic times are relevant during recessionary times too. However, there are important clues on how to think differently about innovation when times are tight.