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92: Percent of CP marketing executives who believe that their CEO values innovation.
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80: Percent of new consumer products that fail within the first three years.
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54: Percent of CP marketing executives who said that lack of coordination with other departments hampers innovation.
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Want more on innovation nuggets? See the new Forrester VideoView on consumer-focused innovation.
Like these stats? Forrester's CMO Group provides member-driven primary marketing and industry research, proprietary consumer data, the expertise of more than 100 industry analysts, and peer-networking opportunities with fellow C-level marketing executives.
If you are a manufacturer or retailer, you can help us provide a comprehensive benchmark of manufacturer and retailer collaboration by answering a few questions. In return, you will be entered into a raffle for an iPod, and also receive a complimentary registration to either the Consumer Goods Fall 2005 Conference or the Fall 2005 Retail Executive Summit.
Interested in how leading firms turn product, experience, and marketing innovations into profits? Then come to Forrester's Consumer Forum 2005 in New York, September 27-28. Speakers include Jeff Fettig, CEO of Whirlpool; Gerald Storch, Vice Chairman of Target; Phil Wiser, CTO of Sony Corporation of America; and your favorite Forrester analysts.
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Ah, it's finally summer. Like many of you, I have a bit more time to enjoy indulgences like a good book. I'm halfway through Bob Dylan's memoir Chronicles. In one of the best passages so far, Dylan talks about changing his name. Did you know he chose Bob Dylan over alternatives like Robert Dillon and Bob Allyn? Smart move. Somehow, I couldn't see Bob Allyn becoming the voice of a generation. Here at Forrester, we've also undergone a name change. You'll start to see references to Forrester's Consumer Products Research rather than Consumer Packaged Goods (check out the masthead above). We're doing this for a few reasons:
Many types of manufacturers face the same challenges. We've been writing about topics like global data synchronization and RFID for years in consumer packaged goods (CPG). But with retailers like Best Buy, Staples, and Home Depot embracing these technologies, a broader mix of brand manufacturers must tackle these initiatives. So, now we're analyzing the impact of these technologies not only for CPG firms but also for manufacturers in other categories like consumer electronics, apparel, and consumer durables.
We've recently scrutinized RFID's impact on the order-to-cash process, using a snack food manufacturer to illustrate where RFID works -- and where it doesn't. Another new piece makes the call on the joint venture between RFID vendor Savi Technologies and Hutchinson Port Holdings -- a move that we think will bring much-needed in-transit visibility to CP firms with global supply chains like Sony and VF Corp.
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Collaboration is key. In our recent satisfaction survey, you said that you want additional research on collaboration. So we're making more connections between our manufacturer and retail research to cover collaborative activities across categories. Right now, everyone is talking about sharing demand data. But more than half of European retailers in a recent survey share neither POS nor loyalty card data with suppliers. Smart manufacturers will successfully negotiate for this data when they demonstrate that it results in higher promotional effectiveness and store traffic.
We're also seeing more marketing collaboration between manufacturers and retailers in the form of in-store advertising. CP firms like PepsiCo are shifting advertising dollars to new in-store TV networks like Wal-Mart TV, which is the fifth largest network behind ABC, CBS, NBC, and Fox. Brands should tailor ad formats and content based on retailer data on traffic patterns, shopper demographics, and SKU movement by time of day.
We have more analysts! We have three new analysts, Nikki Baird, Fiona McDonnell, and Tamara Mendelsohn, covering topics relevant to CP manufacturers. With these resources, we're able to cover more CP categories without diluting our packaged goods coverage -- and we can drill down in specific geographies. See how Unilever's Dove campaign increased purchase intent by 8% in the Netherlands through a combination of TV, print, and online advertising, and how Amway Japan made the mobile Web pay by arming its distributors with a powerful site for use on their mobile phones.
Over the summer, watch for new CP research on Internet couponing, trade promotion management, and the state of manufacturer/retailer collaboration, in which we're teaming with Consumers Goods Technology and RIS News magazines. But, as always, if you have other Consumer Products research suggestions, please drop me an email at christineoverby@forrester.com.
Have a relaxing summer,

Christine Overby
Principal Analyst
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