Archive for December 2nd, 2010

Ken’s UEI (Ultimate Economic Indicator) … the real gauge of the economy.

December 2, 2010

There are a lot of indicators bandied about to ‘prove’ how well or poorly the economy is doing.

There’s GDP, unemployment, CPI, and many, many other metrics.

Sometimes they provide a consistent view of the economy … sometimes they contradict.

Well, I’ve stumbled on the Ultimate Economic Indicator. An indisputable measure of economic activity.

Ken’s UEI: the number of days that it takes a “ships free” order from Amazon to arrive at my door.

Here’s the logic: When placing an order, Amazon projects that  a “ship free” item will be delivered in 7 to 10 days.

Hmmm.

Since I’m a cheapskate, I’ll always take the free shipping option and trade-off fast delivery for free shipping.

Then I started to notice that when the economy  is doing well, the shipments do take a week or so.

But, when business is slow, the shipments arrive 2 days after the order is placed.

Makes sense, since the ship free packages are – in essence – flying standby.

When the economy is steaming, planes and trucks are full and standby packages may hang on the shipping dock for a couple of days.

When business is slow, there’s plenty of space on the planes and trucks, so the standbys catch the first flight.

These days, the press is reporting gangbuster retail sales

But, I’m getting my ships free stuff the day after tomorrow.

Tells me that business is still slow.

Try it out …

Transparency Tops CPG Trends According to Mintel

December 2, 2010

TakeAway: Grappling with product content and marketing approaches in the face of growing consumer concerns about obesity and other chronic health problems will continue to be one of the biggest issues affecting global food and beverage makers’ product development and marketing strategies in 2011, according to a new, category-spanning CPG trends analysis by Mintel.  

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Excerpted from Marketing Daily, “Transparency Issues Among Top ’11 CPG Trends” By Karlene Lukovitz, November 5, 2010

Major CPG trends continuing or growing in importance into 2011:

    * Redefining “natural”, related to ongoing trend of transparency.  In addition to the success of products featuring “no high fructose corn syrup” on their labels (such as Yoplait’s Simply … Go-Gurt), one factor driving the success of certain “retro” products (another key CPG trend), like Pepsi Retro, is use of sugar instead of HFCS.

    * Shift from covert to overt marketing of formulation changes, but will depend on ingredients and geographic region.

    * Professional products for amateurs (e.g. carpet cleaners to hair-care products). Products enabling consumers to DIY instead of paying professionals continue to grow in number.

    * Less is more, redux. On the food/beverage front, lifestyle simplification tied to convenience and economical solutions (with environmentalism playing a secondary role) both ties into and counterbalances the more-professional-at-home-cooking trend. Examples include Starbucks’ Via or beverages positioned as full meals in a can or bottle.

    * Econo-chic. Luxury is making a comeback, but in limited, selective ways. CPG products positioned as “small treats” stand to gain.

    * Instant results, particularly in the personal care category.

    * Simplicity for older consumers. On the other hand, Baby Boomers and pre-Boomers increasingly want products that deliver simple but realistic results, rather than ones promising instant miracles.

    * More cradle-to-grave marketing. Example: the Nestle Nesquik line spans products targeted to children under six up to a Gourmand variety for adults.

    * Blurring categories. Many CPGs can no longer be slotted readily into a single category — shifting the focus from labels and branding to benefits, and creating opportunities, along with some confusion. Examples include Sunkist Solar Fusion (a fruit-flavored, carbonated drink with caffeine) and L’Oreal’s Perfect Clean Foaming Gel (featuring an integrated “scrublet”).

    * Personal hygiene comes out of the closet. More open marketing of what were once considered highly personal items.

    * Sustainability still focused on basics. Consumers continue to reduce, recycle and reuse, and continue to be interested in buying “green” products — as long as they don’t cost more.

Edit by AMW

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Full Article:
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=138944

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