If changes are not made in the near term to enhance and fully scale up the capabilities of both your organization and your people, you may reach a point where both your ship and your crew will be irrelevant—precluding the possibility of smooth sailing into 2020 and beyond. According to Tony Vernon, former CEO of Kraft Foods, “Families in the middle [are] in fear of moving lower. Nestlé Purina’s ability to offer customized dog food provides an example of a company embracing both customization and customer interaction. The COVID-19 pandemic has accelerated the move that many mining companies are making in the direction of intelligent mining, but this doesn’t mean they have lost their focus on people. The remaining 120 executives worked in other consumer-focused industries, including commercial banking, travel, hospitality, automotive, and consumer electronics. Deloitte food safety survey, 2014; Deloitte social media study, July 2014, Note: Analysis of social media posts from the United Study on the topics of “food safety” and “health and wellness.”, Deloitte Social Media Study, July 2014, Note: Analysis of social media posts from the United States on the topics of “food safety” and “health and wellness.”. The interviews covered four topics: trends in consumer demographics, behaviors, and attitudes; retailer and channel dynamics in consumer products; the impact of technology on consumer engagement, the shopping process, and business models; and commodity supply management. First, driving greater brand loyalty is very important to each of the three groups of executives—revealing the ongoing tension between both consumer product brands and retailers. For example, it offered tiered pricing in the cheese aisle, offering Velveeta Singles and Kraft Singles for the low- to mid-income consumer while selling Kraft Deli Select cheese slices at a higher price point. Barb works directly with consumer and industrial product clients focusing on their regulatory environment, supply chain, technology and processes, and other issues and opportunities. The consumers surveyed in January 2014 and January 2015 were screened to target consumers who did at least half of their household’s shopping and food preparation. The impact of the current economic situation on the consumer (38 percent), the impact of social influence on loyalty (37 percent), and the impact of technology on shopping and the changing digital landscape (37 percent) round out the top areas.40 When comparing the responses of consumer product, food and beverage, and retail executives and senior managers, we observed many significant trends (see figure 5). Looking ahead to 2021, we developed seven marketing trends that can help marketers to build connection and drive engagement with their customers. Note: The remaining 120 executives worked in other consumer-focused industries including commercial banking, travel, hospitality, automotive, and consumer electronics. A substantial majority of consumers were very concerned about what they are buying and eating, as well as where their food is coming from. Eighty-five of the 205 executives and senior managers surveyed from August–September 2013 worked in retail, consumer product manufacturing, or food and beverage. Read Australian Mining’s analysis of this year’s trends. International Monetary Fund (IMF) food and beverage commodity indices. Deloitte’s 12th edition of the Tracking the Trends report explores trends for mining companies in their ongoing pursuit of productivity, financial discipline, operational excellence and sustainable growth. Forward-looking companies are thinking about not only the economic bottom line as they make commodity sourcing and procurement (for example, vertical integration) decisions, but also about their double (social) and triple (environmental) bottom lines as well. “We used to be able to be successful serving just core consumers in grocers and mass merchandisers, but now we need to be present and deliberate in fragmented consumer segments and more channels.”—Packaged goods sales executive Our first uncertainty for 2020 relates to the economic environment in the United States—specifically, whether the continuing recovery uniformly helps consumers at all income levels. Emily Bryson York, “Economy may benefit Kraft CEO: Brand offers value to consumers,”. (CAGNY) Conference, New York, February 19, 2013, http://ir.kraftfoodsgroup.com/events.cfm. These potential undercurrents are not mutually exclusive. We expect the importance of digital commerce to be amplified by the rapid pace of technological change. In addition to the surveys and interviews described above, this report draws on data from a May 2014 survey of 2,004 consumers surveyed as part of the Deloitte Food Safety Survey. Consumer spending will likely shift toward customized products and experiences across a broad range of consumer products. You need additional differentiation: good for you, good for the environment, and supporting a shared social cause.”—Packaged goods sales executive “Health and wellness can clearly differentiate our brands and drive brand loyalty.”—Packaged goods marketing executive The second uncertainty envisions a decline in emotional ties to national brands, growing discontent with the perceived values of large companies, and a shift in consumer focus toward personal health, environmental sustainability, and social impact. In the quarter ended June 30, 2020, we observed that an increased number of companies provided non-GAAP metrics2 that included COVID-19-related adjustments. A confluence of marketplace changes (figure 2) means that, for consumer product companies, the traditional levers for building loyalty are likely becoming less and less effective. Respondents were screened to target consumers who did at least half of their household’s shopping and food preparation. to receive more business insights, analysis, and perspectives from Deloitte Insights, Telecommunications, Media & Entertainment. 0. And finally, economic impact was the most important to consumer product manufacturers of the three groups. CPG companies can prepare themselves for a range of possible futures by harnessing technology, reinventing brands, and exploring new business models. PetfoodIndustry.com, “Purina offers ‘Just Right’ personalized dog food,” November 3, 2014, http://www.petfoodindustry.com/Purina_offers__just_right__personalized_dog_food.html. has been removed, An Article Titled Consumer product trends For instance, a focus on resource preservation can mean partnering with local farmers to deploy improved farming techniques, or it can mean supporting conservation projects such as water-related initiatives. Increased supply disruptions and natural resource shortages, such as water shortages, may put the business economics of consumer product companies under stress. For some companies, this may entail reshaping their brand portfolio through innovation, acquisition of new brands, and/or divestiture of traditionally strong brands. Reading Time: 1min read 0. Given the multitude and potential magnitude of these projected marketplace changes, speed is equally critical. These seven trends can help build connection to drive engagement and growth for brands in 2020. Most of the consumer respondents (58 percent) were female. Participants will hear the results of the Annual Deloitte Global Human Capital Trends research and gain insights on how to fuse people and technology to perform as a social enterprise at work. Deloitte recently released their Tech Trends report for 2020, which gives insight into the newly identified key players and driving forces behind the world’s developing business and digital landscape. We need to move beyond experimenting with direct-to-consumer storefronts, and develop a working online business model to drive growth.”—Packaged goods marketing executive Our third uncertainty posits an environment in which consumers completely immerse themselves within a digital world, and the traditional brick-and-mortar business model becomes less viable—or perhaps even irrelevant. Also, 50 percent of consumers were willing to pay more for a brand if it communicates its commitment and efforts to improve food safety. The authors would like to thank Glenn Goldman (Deloitte Consulting LLP), Jacob Bruun-Jensen (Deloitte Consulting LLP) and Bernardo Silva (Deloitte Consulting LLP) for their significant contributions to the research and writing. Prior to this role, Kim served as Consulting’s US Consumer Industry Leader. Yet preparing for an uncertain future in 2020 is particularly difficult. She has also served in key leadership roles with Deloitte’s Women’s Initiatives and Junior Achievement. He is the research lead and co-author of multiple articles and reports on consumer attitudes and behaviors toward brand loyalty, marketing strategies, and store brands. As you look at the many other categories that consumers are in, there are more and more customized features that are being offered every day.”30 The company is currently working to enhance the product’s personalization possibilities (for example, package sizes, flavors) and ordering features (for example, automatic replenishment); it is also testing a similar solution for cat food.31. . Consumer product companies should consider understanding and targeting lower-income and middle-class consumers’ preferences in what they consider affordable in terms of price point and what they consider desirable in terms of channel. VIEWS. Kim is the US Consulting Delivery Transformation Leader, where she is responsible for architecting Consulting’s reimagination of its work, workforce, and workplace to create consistent, efficient, and innovative ways of working that improve client outcomes, enhance the talent experience, and improve earnings. Kim also serves on the Board of Directors for HashedIn and Chairs Deloitte’s USI (DCIPL) Board. As Deloitte points out in its Tech Trends report, the future will be vastly different from the state of the world in January 2020. Elisabeth Hagen, senior advisor, Food Safety, Deloitte & Touche LLP, “Food and product 2020,” presented at 2014 GMA Leadership Forum, Colorado Springs, Colorado, August 23, 2014. Rich earned his undergraduate degree in engineering from Kettering University and his MBA from Columbia Business School. Rich has significant experience in guiding clients through strategy-led transformation to achieve profitable growth. Deloitte, Deloitte executive survey for insight into the consumer, conducted August 29, 2014 to September 11, 2014, n=205. If the 2020 economy is sluggish, with greater income bifurcation between the most and least affluent consumers, the middle class may struggle to regain its pre-recession footing, consumer confidence may decline, and income growth may be muted among lower-income and middle-class consumers.4 Fewer consumers self-identify as middle class (44 percent in 2014 versus 53 percent in 2008), and more identify as lower class (40 percent in 2014 versus 25 percent in 2008).5 These dynamics likely shaped the recessionary mind-set we observed in the 2015 American Pantry Study.6 Fifty-eight percent of surveyed consumers believed that the US economy was currently in a recession in January 2015, and 94 percent said that even if the economy improved, they would remain cautious and keep spending at current levels. http://www.deloitte.com/us/consumerproducts. Deloitte recently released “Tech Trends 2020,” the company’s 11th annual evaluation of emerging technology trends. Agreeing on strategic actions while not being able to agree on what the consumer product landscape will likely look like in five years is challenging in itself; concurrently moving rapidly with thoroughgoing actions is even more difficult. “The ad-hoc and relatively uncoordinated commodity strategies of the past have left us underprepared for the higher uncertainty we face.”—Packaged goods finance executive The fifth uncertainty posits commodity cost increases and higher cost volatility for key food and beverage inputs. ... Rio Tinto breaks records at 2020 Argyle diamonds tender - Australian Mining. When it comes to food safety and food companies, a majority of consumers were concerned about aspects such as safe packaging (75 percent) and accurate labeling (66 percent).42 Not surprisingly, a substantial consumer segment also associated characteristics such as natural (33 percent) and organic (31 percent) with food safety. The outlook for three trends identified by Deloitte at the beginning of 2020 seems to have markedly changed. has been saved, Consumer product trends 5 Introduction. Deloitte’s 2020 Global Human Capital Trends survey of over 9,000 business and HR executives in 119 countries revealed that leaders are moving boldly to activate the social enterprise—an enterprise whose mission combines revenue growth and profitmaking with the need to respect and support its environment and stakeholder network. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Just as sailors can’t infallibly predict the weather, no one knows for certain what the future holds. The research described in this article is based on 14 case studies conducted between June and December 2014, an executive survey conducted in August–September 2013, consumer surveys conducted in January 2014 and January 2015, and seven executive interviews conducted between July and November 2014.3 The executive survey polled 205 US executives and senior managers; the consumer surveys, over 4,000 adult US consumers. The report also uses information collected by the Deloitte Social Media Study. Deloitte Publishes Inaugural 2020 Global Marketing Trends Report: Identifies Seven Key Trends to Help C-suite Leaders Place Humans at the Center of Their Work Customer Experience Management By PRNewswire On Oct 16, 2019 To help consumer product executives prepare for change and uncertainty, this article presents five potential “undercurrents” that may impact the consumer product industry in 2020—marketplace undercurrents whose exact direction and pace, while still unknown, can be broadly identified today—that companies should keep in mind as they try to chart a clear path to 2020 and beyond. Speed of execution and completeness of action are just as important, if not more important, to consider. Rich resides in Chicago during in his personal time Rich enjoys wine, cooking, reading, travel, and is an enthusiastic fan of Chicago's professional sports teams (Go Cubs Go).Georgia. Anupam, Deloitte Services LP, is the Research team leader for Deloitte’s Consumer & Industrial Products industry practice. USA Today, “Purina offering personalized dog food,” November 1, 2014, http://www.usatoday.com/story/money/business/2014/11/01/purina-offering-personalized-dog-food/18317543/. To help executives plan and act amid these undercurrents, we have developed five sets of specific steps that may help address each of the five potential uncertainties described on page 5 (figure 2). Deloitte highlight device usage Smartphone ownership in Ireland saw a slight decrease for the second year in a row at 90% (compared to 91% in 2019 and 94% in 2018). Rio Tinto has achieved record breaking results during its 2020 Argyle pink diamonds tender collection of 62 rare pink, red, blue and violet diamonds from its now-shuttered Argyle mine in Western Australia. © 2020. One way to address commodity price volatility, higher commodity costs, and resource shortage is the application of food technology. The drive towards social value is no longer limited to environmental activists. Additionally, recent social media listening research indicated that when consumers talk about food safety in the United States, only 14 percent of the discussion is about basic food safety, while the rest is about a broader set of topics, such as health and wellness.43 Within the health and wellness and food safety discussions, a significant number of posts were about transparency (8 million posts) and sustainability (2 million posts). Trend 1: The social investor. See Terms of Use for more information. We would also like to acknowledge the contributions of Eva Dreger (Deloitte Consulting LLP), Julie Finn (Deloitte Services LP), Susan K. Hogan (Deloitte Services LP), Aijaz Hussain (Deloitte Support Services India Pvt. already exists in Saved items. However, even these companies should realize that a good compass—that is, setting a clear direction—is necessary but not sufficient. He sits on the Grocery Manufacturers Association Sales Committee and frequently speaks at industry and professional conferences. Josh Sosland, “Kraft faces barbell burden,”, Kraft Foods Group, Inc., “The New Kraft Foods Group Investor Day,” presented at SeaPort Boston World Trade Center, Boston, Massachusetts, September 7, 2012, http://ir.kraftfoodsgroup.com/events.cfm; Kate MacArthur, “Why Kraft changed its innovation strategy and what happened next,”. 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