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 …

More than half of U.S. consumers (58%) are “very concerned” about rising food prices, according to a survey of more than 48,000 households conducted by Nielsen in October.
So are consumer packaged goods (CPG) manufacturers and retailers, who have struggled in recent months to balance consumer demand for low prices and high value with abnormally high raw materials and transportation costs.
Rather than raising prices, some food manufacturers have reduced the size of their products.  Such strategies may minimize sticker shock at the grocery store, but are unpopular with U.S. consumers.
Instead, according …