The Pulse -- May 2005
Healthy Choices Top Product Pacesetter Report
The annual New Product Pacesetters report from Information Resources Inc. is an analysis of the most successful new consumer packaged goods brands launched in 2003-2004, plus the factors driving their success and key consumer purchase trends to watch in 2005. The report found that 2004's most successful new food and beverage brands reflected American's desire to take small steps toward healthier eating with convenient packaging that fits on-the-go lifestyles. Carb Smart ice cream and frozen novelties ($137 million), and diet carbonated beverages from Pepsi ($125 million) and Coke ($119 million) topped the list. This year's top 10 non-food brands were dominated by health and beauty solutions. The success of some brands such as Prilosec OTC ($239 million) are a testament to consumer demand for new and better solutions to address health problems, while others such as Crest Whitestrips ($95 million) and L'Oreal Dermo Expertise facial care ($51 million) reflect a need for do-it-yourself personal care solutions as convenient alternatives to professional services.
Vivendi universal Games Conquers Cash Flow
The global developer, publisher and distributor of multi-platform interactive entertainment, Vivendi Universal Games (VU Games), cashes in on Emagia's Cash Inflow Manager Version 5.0 to streamline receivables and revenue management across its operations. Chargebacks and deductions stemming from short payments by retailers due to pricing, trade promotions and vendor compliance issues can amount to a significant drain in profitability and higher operational expenses for consumer products companies. Having global visibility into receivables along with specialized chargebacks management tools and processes is critical to improving financial performance for these companies. "Emagia's software offers VU Games the ability to proactively manage receivables and chargebacks and to recover revenues deducted from payments by the big box retailers," says John Ewing, director of Credit, VU Games.
Top CG Firms Join to Review Best Practices
To conduct an in-depth review of the supply chain best practices and metrics of the world's leading consumer products companies -- Campbell Soup Company, Coca-Cola, Coors, Hallmark, Whirlpool and Polo Ralph Lauren Corporation -- joined forces and formed the Consumer Products Supply Chain Best Practices Review. Focused on supply chain processes, this Advisory Board will define the specific processes and metrics to be surveyed and will oversee the collection and analysis of responses from participating companies through a web-based interview tool. The data analyzed will be presented to participants in a series of reports and review meetings that will provide insights into the current and best practices of consumer products companies within various industry sub-categories. Supporting the Advisory Board in the execution of the Supply Chain Best Practices Review will be Tompkins Associates and The Soleus Group, which will jointly market and deliver supply chain benchmarking services aimed at introducing clients to the best practices of the world's leading enterprises.
OAT Lays RFID Pathway to ROI
Based on work with industry pioneers, OATSystems Inc. develops Comply for ROI and ROI for CP, a two-phase pathway with solutions built on the company's flagship OAT Foundation Suite and designed to accelerate the path to ROI for all consumer products companies. Instead of focusing exclusively on the lowest possible cost of a compliance solution, OAT analyzes a company's specific products and business operations to design a phased adoption that accelerates payback from their RFID investment. Built on the OAT Foundation Suite 4.5, Comply for ROI is a bundled solution of OAT software, certified hardware and professional services that provides a direct path to ROI. As part of the solution, ADT's Sensormatic RFID hardware is the first to be certified under the Comply for ROI solution. For consumer products companies currently shipping tagged goods, ROI for CP delivers ROI solutions for business users by leveraging retailer RFID data to reduce deductions and improve shelf-level availability.
Quiksilver to Take Top Spot in Outdoor Sports
Quiksilver Inc. recently agreed to acquire the Rossignol Group SA, a world leader in winter sports that owns and operates a diversified portfolio of premier brands including Rossignol, Dynastar, Lange and Look in winter sports, as well as Cleveland Golf. The combination of Quiksilver and Rossignol will create a global leader in the outdoor sports lifestyle market as the Rossignol Group achieved total sales of approximately $625 million for the 12 months ended September 30, 2004. Meanwhile, Quiksilver reported revenues of $1.3 billion for its fiscal year ended October 31, 2004. "Joining forces with Rossignol allows us to create the number one outdoor sports lifestyle company in the world," says Robert B. McKnight Jr., chairman of the Board and chief executive officer of Quiksilver.