Transcript TTAug2012Overview

Channel Migration: Charting a Course on the Voyage for Value
August 2012
Executive Overview
SymphonyIRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels,
providing powerful benchmarking data to help guide your strategic decisions. This edition of Times & Trends explores the changing
dynamics within the CPG marketplace, examines CPG manufacturer and retailer opportunities and risks, and explores what the future
holds as new formats and new media evolve and gain traction across a rapidly changing consumer marketplace.
Introduction
To say that the past several years have been challenging for consumer packaged goods (CPG) marketers would be an understatement.
Manufacturers and retailers alike have struggled against very high cost of goods sold equations, stemming from spikes in commodity,
packaging and other product inputs, and transportation costs. On the other side of the business, as consumers have been changing
their attitudes and behaviors in an effort to survive and thrive in a challenging and rapidly changing economic landscape, keeping up
with consumer trends has been difficult and, at times, downright overwhelming. And, in the midst of it all, competition within the
marketplace has been intense.
Fortunately for CPG marketers, rays of opportunity have peaked through the landscape. In particular, consumers’ conservative
approach to daily living brought a renewed focus on the home as the center of day-to-day life. Detailed in SymphonyIRI reports
published throughout the economic downturn, the CPG industry has done a phenomenal job embracing the challenges of the past few
years and providing solutions across a wide range of consumer needs and wants.
But, the dynamics within the industry continue to change. Consumers have more options to choose where to shop, and they have
become more savvy in their approach to shopping.
Select Findings
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Trends in number of channels shopped hint at a further honing of consumer shopping strategies, where consumers confine
their CPG spending to a handful of channels that they perceive as offering the greatest value
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Channel penetration and channel sales trends are evidence of the intensifying battle for share of grocery spending
© Copyright 2012 SymphonyIRI Group, Inc. All rights reserved.
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Channel Migration: Charting a Course on the Voyage for Value
August 2012
Executive Overview
Select Findings (cont’d)

Trip frequency is slowing, while per trip spending is on the rise, marking yet another change in trip mission strategies as
consumers continue to evolve their behaviors in response to ongoing market and personal financial considerations

Drug, dollar and club channels each captured share of CPG spending during the past year, posting important gains across
CPG departments
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The Internet is having a profound impact on CPG purchase behavior and quickly gaining share of CPG spending
© Copyright 2012 SymphonyIRI Group, Inc. All rights reserved.
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