Our consultants, who average 15 years business and consulting experience, are sought-after thought leaders.
The challenges and opportunities facing the life sciences industry have changed very little in the last five years: drug pipelines and R&D spend continue to shrink, growth has shifted overseas, generics continue to increase competitive pressure, and the regulatory environment continues to evolve. However, it is those companies who are able to define who they are and align their business around their core strengths that will emerge as leaders.
The ability of Consumer Products companies to adapt to the rapid pace of change within our industry today is more critical than ever. To do so, CP executives need to consider the various partners and stakeholders that impact their business: Suppliers, Retailers, Consumers, and Stockholders.
Clarkston Consulting developed the Analytics & Insights Indicator to provide a comprehensive view of Analytics for the entire organization. Gathering survey data from approximately 100 Consumer Products professionals, Clarkston assessed companies’ analytical capabilities around Strategy, Process, Organization and Technology (SPOT), providing recommendations across all of these areas. The following research brief summarizes these findings.
Retailers with private label products now have greater flexibility in their pricing strategy, according to research conducted by Clarkston Consulting. As part of this Retail Experience study, Clarkston Consulting expected to see increasing numbers of private label brands being carried on retail shelves. However, there were pricing trends among major brands compared to their private label counterparts that were surprising. Interested in better understanding this trend, Clarkston surveyed over 200 consumers across 28 states on their motivations for purchasing store brand products versus traditional national brands.
According to industry estimates, instances of out-of-stock cost retailers a 4 percent
loss in category sales and, more importantly for Consumer Products companies,
lead to a shopper completely switching brands over 25 percent of the time.
While CP companies have become increasingly sophisticated in forecasting demand and promotional plans based upon ‘like’ products, there still is a great deal of unpredict-
ability with new products and, because of this, a greater likelihood of out-of-stocks.
2012 promises to be a year of new and different innovations from the Life Sciences industry as companies are forced to respond to unique and difficult challenges that have not previously been characteristic of this market yet have been looming in the background for the last decade.
2012 will be a year of guarded growth for the Consumer Products (CP) industry. The economy, while continuing to show signs of a slow recovery, remains fragile and increasingly exposed to the risks associated with a global market. Consumers remain cautious in their spending, with purchase decisions dictated less by brand loyalty and more by cost and convenience. Technology continues to change how people shop, mandating that CP companies connect with shoppers through new media to drive advocacy.
Life Sciences : 2011 Industry Outlook
2011 promises to bring no rest for the weary. With general opinion of the industry down on both Wall Street and Main Street, Life Science companies face a tough road. Wall Street is worried about the patent cliff and lack of replacement revenue leading to increased pressure on profits. Ironically, the public commonly views Life Science companies as too focused on profits instead of the safety and integrity of their products.
Consumer Products: 2011 Industry Outlook
2010 was a year of renewed optimism for the Consumer Products industry. Companies were able to take advantage of increased consumer spending to drive sales growth. Organizational efficiencies realized through the economic turbulence of the past few years drove increased profit margins. CP organizations embraced a new way of working, responded more quickly to changing market conditions, and leveraged new mediums to engage with their consumers in innovative new ways.
Crude Planning: Strategic Planning for Oil & Energy Uncertainty
Before the economic downturn, crude oil was on a predictable rise as demand grew across the globe. Emerging countries like Brazil, Russia, India, and China were booming while the U.S. and Europe remained consistent consumers of oil. Planning for energy costs wasn’t complicated, but that was before the price of oil reached $147 a barrel. With oil prices fluctuating wildly, energy planning is riskier, and previously successful coping strategies – like hedging – are now more uncertain. Companies, especially consumer goods firms, need to understand the impacts of oil price fluctuations in order to plan for the effects they might have on their income statement.