Friday, June 22, 2012
Tuesday, June 19, 2012
From purchase off the shelf through consumption, packaging for food and beverages evolves to intersect with consumer needs and desires. Food and beverage categories and brands benefit significantly when manufacturers and retailers manage to fuse packaging innovation with emerging consumer trends.
To take advantage of the dynamic environment, as argued in our recent report on Food and Beverage Packaging Trends in the U.S., manufacturers and retailers must understand what matters most to consumers, and which packaging innovations deliver benefits that actually impact behavior.
This understanding is critical because new product success is exceedingly tricky to achieve, even among the most veteran, category-dominant, and deep-pocketed manufacturers and marketers. According to SymphonyIRI, just 3% of new products achieve blockbuster status, sales of more than $50 million in the first year. The vast majority of new products don’t even reach $7.5 million first year out. Yet innovation is essential. Experian Simmons data show that even during difficult economic times—and corresponding during a boom time for comfort food—half of U.S. consumers like to try out new food products, with 32% agreeing “a little” that they like to do so, and 18% agreeing “a lot.”
More specifically, survey respondents have some common complaints across major food and beverage categories. Most cluster around consumer frustrations with easy opening and closing, resealing, maintaining freshness, and food safety issues.
Friday, June 8, 2012
But most importantly, consumers have not only grown accustomed to using debit, but they also see value and utility in using the cards. In banks’ continued quest to translate paper and check payments to electronic payments, the debit card remains their strongest ally: According to proprietary survey results contained in our report, almost two in three engaged debit card users (those who use their cards at least once a month) use their debit card so that they can avoid carrying cash, half use their debit cards so they can avoid paying with cash, and almost 6 in 10 use a debit card because it is more convenient than cash.
The downside? We expect credit cards to siphon away a small share of transactions made by affluent, credit-worthy debit card users, and we expect emerging prepaid card programs to siphon off a significant portion of major banks’ least profitable checking account holders. But given longer term electronic payment trends, this will only serve to moderate debit card payment volume and transaction growth—not kill it.