LEVERAGE RECESSION LESSONS FOR CPG SUCCESS
The U.S. economy is coping with high inflation, an ongoing pandemic, supply disruptions, elevated fuel prices, labor shortages and other negatives. Consumer sentiment is also the lowest it has been since the weak economy of 2011.
As a result, despite robust 7% growth in 2021 and low employment of 3.6% in March 2022, the current economy feels in some respects like a recession. IRI’s new report, a summary of our Recession-Proof Your Business report series, looks back at consumer behaviors of the past recession. It also reviews the assortment, pricing, innovation and private brand strategies that were employed during it that are instructive in today’s economic environment. Lessons and growth strategies CPG manufacturers and retailers can leverage to succeed include:
- Articulating value propositions that highlight short-term value and long-term value by channel and shopper segment.
- Offering the right pack sizes and price points by retailer and channel to attract and retain both high-value and value-seeking consumers.
- Highlighting product benefits and functionality, expanding occasions, premiumization, increasing marketing spending and tailoring revenue management.
- Expanding the buyer base by communicating new benefits and investing in increased distribution.