Marketing Digest
Hot Headlines from the Frontlines of the Industry
Teresa Greenlees, '09
Issue date: 3/13/08 Section: GSB News
Rising prices, competitive threats and changing consumer preferences are the trends driving this week's news. Headlines span a variety of industries from consumer electronics to quick-serve restaurants. What's catching my attention from the news this week? CPGs sacrifice quality in the service of rising ingredient costs. Fried chicken is (surprise!) a hard habit to break. And innovative product packaging just might sell itself. As always, I welcome your comments, feedback, story ideas. Just email them to tgreenle@chicagogsb.edu.
Food Companies Cut Back on Flavor, Variety
The rising cost of commodities is forcing packaged food companies to either cut ingredients or swap them for lower quality substitutes. Sara Lee will be using a cheaper, lower protein wheat flour in some of its breads, while Campbell Soup plans to cut an undisclosed number of ingredients from its soups, ingredients like meat, vegetables, flavors and spices. General Mills has cut the number of Hamburger Helper varieties from 75 to 40. While you may not taste the difference in your favorite brands, you will probably notice a change in your weekly grocery bill. Despite these cut backs on costs, consumer food prices are still expected to increase an additional three percent to four percent this year, which analysts predict will lead to a continued slowing of sales in packaged foods. Source: Wall Street Journal
Sony Recycles Vintage Spots
A new campaign to promote Sony's electronics recycling program will feature footage from vintage commercials, reminding consumers to turn in their old and outdated equipment. Concepts previewed at a recent press meeting showcased such woefully outdated equipment video cameras that require suitcase-sized carrying cases and a cassette tape recorder the size of your head. Sony launched its recycling initiative last August and has thus far collected over 1,000 tons of recycled electronic waste at more than 100 drop-off points across the country. Source: Advertising Age
Food Companies Cut Back on Flavor, Variety
The rising cost of commodities is forcing packaged food companies to either cut ingredients or swap them for lower quality substitutes. Sara Lee will be using a cheaper, lower protein wheat flour in some of its breads, while Campbell Soup plans to cut an undisclosed number of ingredients from its soups, ingredients like meat, vegetables, flavors and spices. General Mills has cut the number of Hamburger Helper varieties from 75 to 40. While you may not taste the difference in your favorite brands, you will probably notice a change in your weekly grocery bill. Despite these cut backs on costs, consumer food prices are still expected to increase an additional three percent to four percent this year, which analysts predict will lead to a continued slowing of sales in packaged foods. Source: Wall Street Journal
Sony Recycles Vintage Spots
A new campaign to promote Sony's electronics recycling program will feature footage from vintage commercials, reminding consumers to turn in their old and outdated equipment. Concepts previewed at a recent press meeting showcased such woefully outdated equipment video cameras that require suitcase-sized carrying cases and a cassette tape recorder the size of your head. Sony launched its recycling initiative last August and has thus far collected over 1,000 tons of recycled electronic waste at more than 100 drop-off points across the country. Source: Advertising Age
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