Sandy Miller

CPG Manufacturers Called to Innovate

July 15, 2010

FROM RETAILWIRE:
It's time for consumer packaged goods companies to move out of hunkering-down mode and get serious about product innovation. That's the gist of new research from the Grocery Manufacturers Association (GMA) and PricewaterhouseCoopers LLP. How do you define innovation in CPG terms and where do you see it taking place today?      [more...]

Innovation ultimately means developing and implementing "Reason-to-Buy" messages in stores, which increase sales. And retailers should take the lead rather than giving up their space in stores--when and where shoppers make buying decisions--to CPGs and other suppliers. And this is not enough.

The store shelves and perimeter must be viewed as the most powerful media platform for many reasons, led off with the reality that it is the only media that actually causes immediate sales lift.

The reality is, CPGs make about eight to ten times more profit per dollar of revenue that retailers make. And it's getting worse from the perspective of retailers. We are currently doing tests that demonstrate how retailers can close this ridiculous gap and dramatically increase sales.