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SymphonyIRI Group Executive Insights

 

Today, many industries are undergoing seismic shifts as the American shopper continues to cut costs in ways we haven’t seen in decades. As the economy begins its shift toward recovery, boardrooms must also be nimble and be prepared to shift from their short-term survival strategies and back to long-term growth strategies. Doing this will require fact-based evidence that is accepted as truth across the organization and available in time to support critical business decisions.
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IRI’s most recent investigation into the minds and habits of American beauty care shoppers reveals a highly complex market impacted by multiple trends simultaneously. While there are select uplifts in the market, with small pockets of recovery, there are still large groups of individuals experiencing economic turmoil, unemployment and a severe decrease in savings. Because these are the most personal of CPG products, there is an overlay of emotion that shapes the definition of value.
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Marketing mix modeling (MMM) has existed for decades and its promise has tantalized the senior management teams of first consumer packaged goods (CPG) companies and, in the last 10 years, financial services, telecommunications, retailers, entertainment, pharmaceutical companies and several other industries as well. They are understandably tantalized because some companies have harnessed its potential with enormous success, while others have failed to gain the significant benefits it offers.
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Retailers and manufacturers must now consider whether shoppers are trading up or down—are they trading down and buying less to save money or trading up and increasing consumption at home in lieu of cutbacks to onpremise consumption? They must anticipate if purchases will be reduced or eliminated and whether or not consumers consider alcohol an “affordable indulgence” on which they are willing to splurge.
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Another major change underway is a transformation in how Americans research, purchase and use healthcare. Healthcare is costly, and people are rethinking how they take care of themselves in order to conserve funds. Instead of sticking with their tried-and-true healthcare options, consumers are aggressively seeking affordable solutions for health and wellness, both in terms of how they obtain care and in the healthcare products they choose.
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