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IBM Retail | The future of the Consumer Products Industry

IBM Retail | The future of the Consumer Products Industry

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Published by IBM_Retail
The market dynamics for the Consumer Products industry are changing rapidly and drastically. Explosive population growth, increased urbanization, an evolving customer base, and global climate and natural resource issues are creating both significant opportunities and daunting challenges. Learn the 6 capabilities of a winning CP company in the 21st century.
The market dynamics for the Consumer Products industry are changing rapidly and drastically. Explosive population growth, increased urbanization, an evolving customer base, and global climate and natural resource issues are creating both significant opportunities and daunting challenges. Learn the 6 capabilities of a winning CP company in the 21st century.

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Published by: IBM_Retail on Jun 29, 2010
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03/30/2015

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Consumer Products
IBM Institute for Business Value 
IBM Global Business Services
The utureo theConsumerProducts
 industry
The end of theworld…or a worldof opportunity?
 
IBM Institute or Business Value
IBM Global Business Services, through the IBM Institute for Business Value,develops fact-based strategic insights for senior executives around critical publicand private sector issues. This executive brief is based on an in-depth study bythe Institute’s research team. It is part of an ongoing commitment by IBM GlobalBusiness Services to provide analysis and viewpoints that help companies realizebusiness value. You may contact the authors or send an e-mail to iibv@us.ibm.comfor more information.
 
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In the midst of explosive population growth, increased urbanization, an evolving, demanding customer base and global climate and natural resource issues, the Consumer Products (CP) industry faces shifting market dynamics,channel challenges and renewed pressures for business model innovation.An emerging class of empowered consumer, steadily increasing consumption and aggressive competition from private labels will require CP companies to execute flawlessly in connecting with consumers, managing supply chain efficiencies and collaborating with channel partners.
The future of the Consumer Products industry 
The end o the world…or a world o opportunity?
by Guy Blissett, Trevor Davis, Bill Gilmour, Patrick Medley and Mark Yeomans 
The future of the Consumer Products industry
Dramatic population growth and income gainsin regions such as Asia, Latin America andAfrica, coupled with rapid urbanization andglobal macroeconomic shifts, are challengingnotions about how and where to grow. For CPcompanies, these shifts are creating historicopportunities that will require new thinking,decisive action and flawless execution.Consider, for example, that the global popula-tion, 6.75 billion at the end of 2008, will reach 8billion by 2025 and 9 billion by 2050.
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In 2008,for the first time, more than half of the devel-oping world’s population was middle class orabove, and more than half of the world’s totalpopulation lived in urban areas.
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Urbanizationis expected to continue unabated for theforeseeable future. Indeed, by 2020, 16 cities
The world is changing...rapidly.
Consumer products companies have tradition-ally focused their efforts and resources onserving a relatively narrow, affluent segmentof the world’s population. These covetedconsumers are likely to live in a developedmarket, make regular trips to the supermarketand chemist, with less frequent trips to ahypermarket or supercenter. To grow their busi-ness with these consumers, CP companiesleverage heavy doses of trade and consumerpromotion, while seeking to improve collabo-ration with retail customers to help deliveroperating efficiencies.While this marketing and operating modelremains prevalent today, it is not an enginegeared to drive long-term, sustained growth.

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