The Sweet Spot in Green Household Care
• The landscape of the U.S. market for household cleaning products is undergoing
drastic changes as consumers continue to adopt greener lifestyles. Because of continued
consumer interest and understanding of greener and more sustainable lifestyles, the U.S.
market for household and laundry cleaning products is well on its way to a major shift in
marketing strategies, ingredient stories and product innovation.
According to a new Packaged Facts report, “the sweet spot for accelerated growth
and highly profitable sales” looks to be in eco-friendly products
that target multiple consumer desires rather than a
single stand alone functional benefit.
In 2009, retail sales of green cleaners
reached $557 million, which only accounts
for approximately 3% of the total household
and laundry cleaner retail market. However, between 2005 and 2009, it is estimated that retail sales of green cleaners
grew by 229%. This robust growth rate
more than tripled the green cleaners’
share of the market for household cleaners,
according to Packaged Facts.
“Emotional-, therapeutic- and sensory-influenced benefits such as family safety, health
and wellness, aromatherapy, style and design, and
environmental concerns have emerged as important driv-ers in the segment,”said Don Montuori, publisher of Packaged Facts.“As green marketers
better connect their products to these aspects of consumer preference the market will
continue to make a transition from niche to mainstream and ultimately approach $2 billion in sales by 2014 based on our expectations.”
More info: www.packagedfacts.com
Transforming Trade Promotion
• Trade promotion among consumer packaged goods companies is a $176 billion dol-
lar business. Spending has risen more than 60% since 1997, and the percentage of manufacturers’ marketing budgets devoted to trade has reached an all-time high of 56%, according
to a study just released from Kantar Retail, Wilton, CT. The study,“Transforming Trade Pro-motion/Shopper-Centric Approach,” illuminates the changing landscape of this important
business and shows why trade is a top priority for leading manufacturers and retailers.
According to Kantar Retail, trade promotion has long been considered a necessary evil
in the world of consumer packaged goods (CPG). Optimization has been the singular goal
of trade practice in the 21st century, as CPG manufacturers have worked to make their
spending as efficient as possible. Today, many industry leaders believe that optimized trade
promotion is synonymous with successful trade promotion.
“Intense focus on trade promotion efficiency causes many to lose sight of the fact that
trade programs are the single most important tool available to influence shopper behavior
in pursuit of overall marketing objectives,” noted Todd Bortel, principal at Kantar Retail.
“Leading manufacturers are those who truly understanding the role trade can play along
the shoppers’path to purchase and harness the power of trade promotion to influence shop-
per behavior to drive the business for the category and the brand.”
According to Kantar, trade partners that focus exclusively on optimization are destined
to fall behind. Efficiency is a sine qua non of modern trade, but the real frontier lies with the
shopper. Kantar contends that CPG companies must consider how they can reach shoppers
along the path to purchase. Industry leaders will be able to influence shoppers as they choose