Winning CPG companies outperform peers in four key areas, report finds
COLORADO SPRINGS, Colo. — Consumer packaged goods companies that are "winning" in their categories outperform competitors in bold investment in growth areas; advanced use of analytics to fine-tune pricing and promotion; prioritization of retailer relationships; and commitment to talent development and strategic planning efforts.
A collaboration between the Grocery Manufacturers Association, Nielsen and McKinsey and Co., the 2012 customer and management channel survey, "Winning Where it Matters: A Focused Approach to Capturing Growth," found that CPG companies winning in their categories are three times more likely to invest in growth channels and the Hispanic market, 50% more likely to use pricing optimization tools, five times more likely to view retailer collaboration as a strategic priority, and invest twice as much time in talent development.
But as these winning CPG companies exhibited these strategies, various challenges lie ahead. For instance, this year’s survey unveiled that many CPG companies had challenges striking the right balance in their assortment optimization efforts. Consumers tend to make more product and brand purchase decisions in store; therefore, shelf performance becomes an area where CPG companies can gain market share, GMA, Nielsen and McKinsey and Co. noted.
"Using advanced analytics to drive pricing, promotion and shelf management strategies is table stakes for CPG companies who expect to lead their categories," Nielsen EVP professional services Steve Matthesen said. "The report bears this out: companies using analytics as a strategic tool enjoy top-line growth and share-price improvement, while their peers grapple with a flat to declining market."
Additionally, the focus on the Hispanic market by CPG companies is becoming increasingly important. "Hispanic consumers are a key growth segment, with buying power increasing 50% through 2015," McKinsey and Co. consumer practice partner Kris Licht said. "CPG companies that win with Hispanics focused on tailored products and marketing, created better in-store experiences with retailers, and increased Hispanic-focused resources and capabilities."
Looking ahead, the survey highlights the increasing importance of sales technology, which encompasses traditional disciplines such as internal systems, the growing importance of data sharing with retail partners, and the high-growth area of shopper micro-targeting that includes smartphone applications, mobile couponing and other interactive marketing strategies. This discipline was new to the survey, the companies said, as not quite 25% of respondents reported activity in this area, but almost 80% reported plans to build this capability in the next two years.
Nearly 220 CPG executives from more than 50 companies participated in the 2012 survey. These companies represent many of the biggest brands in the food, beverage, personal/home care categories and almost $160 billion in U.S. sales.
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NACDS Foundation donors recognize leaders in community pharmacy
DENVER — Several National Association of Chain Drug Stores Foundation donors honored leaders in community pharmacy with contributions to the foundation at the 2012 NACDS Pharmacy and Technology Conference.
The awards recognize forward-thinking leaders who have shown a commitment to cultivating the future — and the present — of health care in community pharmacy.
The donations made in the name of honorees will help advance NACDS Foundation initiatives. The foundation also recognized pharmacy educators who have made significant contributions to patient care in the community pharmacy setting.
John Holcomb, VP healthcare operations at Target
IMS Health awarded the IMS Health Pharmacy Partnership Award to Target’s VP healthcare operations, John Holcomb. A contribution of $10,000 was made in Holcomb’s honor to the NACDS Foundation. The award recognizes a leader who values the importance of data in fact-based communication and will support foundation efforts to serve patient well-being.
Victor Curtis, Costco Wholesale doing business as Costco Pharmacies SVP pharmacy
Boehringer-Ingelheim Pharmaceuticals awarded the Boehringer-Ingelheim Pharmaceutical Alliance Award to Costco Wholesale doing business as Costco Pharmacies SVP pharmacy, Victor Curtis. The award commends leadership, commitment and service to patient care in community pharmacy. A $10,000 contribution was donated by Boehringer-Ingelheim Pharmaceuticals to the NACDS Foundation in Curtis’ name.
Matthew Machado, Massachusetts College of Pharmacy and Health Sciences associate professor of pharmacy practice
The NACDS Foundation Pharmacy Preceptor of the Year Award, supported by Apotex, recognized a pharmacy preceptor who has made significant contributions to patient care through the education of pharmacy students at Advanced Pharmacy Practice Experience rotations in a community pharmacy practice setting. The award recipient’s academic institution will receive a $5,000 stipend to fund future patient care projects or research.
Jeffery Goad, University of Southern California School of Pharmacy associate professor
The NACDS Foundation Community Pharmacy Faculty Award, supported by Abbott–Pharmaceutical Products Division, recognized a pharmacy school faculty member (full-time or shared faculty) who has made significant contributions to the practice of community pharmacy through innovations in patient care. The recipient’s academic institution will receive a $5,000 stipend to fund current or future research in the recipient’s area of community pharmacy practice.
“The NACDS Foundation, along with our generous donors, is proud to recognize those individuals who, day to day, are committed to improving pharmacy education, patient care and healthcare delivery in their communities,” stated Kathleen Jaeger, NACDS Foundation president. “We are honored to recognize these distinguished award recipients, and to support programs that will foster the next generation of patient care.”
Sun Pharma’s Caraco gets FDA OK to resume operations
MUMBAI, India — The Food and Drug Administration has determined that generic drug maker Caraco is in compliance with relevant paragraphs of the consent decree and may resume operations at its manufacturing facility and packaging sites in Detriot and Wixom, Mich., Caraco’s parent company Sun Pharmaceutical Industries said.
During their inspection, the FDA reviewed the certification reports for heart failure treatment Carvedilol USP, as well as antibiotic Paramomycin USP, and determined Caraco may resume production of only these two drugs.
"Manufacturing of other products from these sites, including those pending approval with [the FDA], will be subject to similar rigorous approval procedure," Sun Pharma said. "As a result, the increase in production at these sites and resultant revenue contribution is expected to be gradual."