Top 20 Most Competitive CG Companies
The consumer goods industry remains one of the most competitive throughout the past decade. Through wRatings patented system, consumers can rate how well companies are meeting their expectations and their willingness to pay more, if any, to have their expectations met. Consumer ratings and pricing power were combined with financial analysis to determine the following list of the top 20 most competitive consumer goods companies by business segment. The report's findings signal that today's consumer takes many other factors into consideration when making a purchase aside from price.
1. Colgate Toothpaste, Colgate-Palmolive
2. Mountain Dew / Diet MD, PepsiCo Inc.
3. Budweiser / Bud Light, Anheuser-Busch Inbev NV
4. Vaseline, Unilever NV
5. Kellogg cereals, Kellogg
6. Sam Adams / SA Light, Boston Beer
7. Weight Watchers
8. Kleenex Tissue, Kimberly-Clark
9. Clorox products, Clorox Co.
10. Gildan Activewear
11. Nike products, Nike Inc.
12. Marvel-branded products, Marvel Entertainment
13. Coke/Diet Coke, Coca-Cola
14. Crocs, Crocs Inc.
15. Pepsi / Diet Pepsi, PepsiCo Inc.
16. Hormel Foods
17. Heelys, Heelys Inc.
18. HNI Office Furtniture, HNI Corp.
19. L'Oreal, L'Oreal Co.
20. Newport Cigarettes, Lorillard Inc.
No Fear = More Sales
As the economy shifted dramatically in late 2008, consumer emotions shifted as well. Two needs in particular, trust and stability, increased 50 percent or more over the last six to nine months. The days of consumers evaluating products based on rewards would no longer be enough in order to entice them. What consumers require from retailers and consumer goods companies is to help them manage their risk.
Managing risk is often misconstrued to mean lowering your price. But if a low price was the only requirement, consumers would always buy from the lowest price on the price comparison sites. And we all know that simply doesn't happen. The goal of managing risk is to reduce the consumer's fear of buying. Remember the success of the "No Fear" t-shirts in the 1980's recession? Some of the youths that adopted the slogan back then are running companies and brands today.
We've seen a few examples of winners that really know how to reduce fear. The Hyundai guarantee to reverse a new car sale if buyers lost their job helped move consumers to the signing table. Similarly, the Risk Free Suit program at Jos. A. Bank rebates the price of a suit in the event of a job loss.
Companies can offer more than just guarantees to reduce fear. To help consumers stretch every dollar, successful companies are focusing on multi-use products and product durability. The Apple iPod, much touted for its success as a music player, also serves as a fitness trainer when combined with a Nike + iPod Sport Kit. In a relatively short time, consumers generate a positive ROI when buying not one, not two, but three premium products (iPod, kit and Nikes).
Trading Smart, Not Down
In the recession in the early 2000s, consumers still traded up for small indulgences like Starbucks coffee. The trading down concept appears to have gained popularity lately, but that view is far too simplistic.
Whether it's the threat of job cuts or actual ones, the 2009 consumer strives to make better decisions than in the past. But rather than simply trading down for their purchase, consumers want to make sure they are "trading smart." This is a huge, untapped opportunity that few companies have recognized.
As consumers gain control over their finances, they also want to improve their health and image as well. The 2009 consumer is more savvy than in the past. Companies like Avon products did well in 2008 because they were the "smart buy." In the first quarter, companies that sell Sports & Leisure products are one of only three categories where consumer demand is rising.
Companies can gain pricing power by tapping into consumer needs like "no fear" and "trading smart." Premium pricing never left us -- consumer emotional needs just shifted along with the economy.
About the Study
Starting consumer surveys in 1999, the wRatings database now covers more than 1,200 companies from all 10 U.S. economic sectors. The full 2009 annual report can be downloaded free for a limited time at www.wRatings.com.
As the economy shifted dramatically in late 2008, consumer emotions shifted as well. Two needs in particular, trust and stability, increased 50 percent or more over the last six to nine months. The days of consumers evaluating products based on rewards would no longer be enough in order to entice them. What consumers require from retailers and consumer goods companies is to help them manage their risk.
Managing risk is often misconstrued to mean lowering your price. But if a low price was the only requirement, consumers would always buy from the lowest price on the price comparison sites. And we all know that simply doesn't happen. The goal of managing risk is to reduce the consumer's fear of buying. Remember the success of the "No Fear" t-shirts in the 1980's recession? Some of the youths that adopted the slogan back then are running companies and brands today.
We've seen a few examples of winners that really know how to reduce fear. The Hyundai guarantee to reverse a new car sale if buyers lost their job helped move consumers to the signing table. Similarly, the Risk Free Suit program at Jos. A. Bank rebates the price of a suit in the event of a job loss.
Companies can offer more than just guarantees to reduce fear. To help consumers stretch every dollar, successful companies are focusing on multi-use products and product durability. The Apple iPod, much touted for its success as a music player, also serves as a fitness trainer when combined with a Nike + iPod Sport Kit. In a relatively short time, consumers generate a positive ROI when buying not one, not two, but three premium products (iPod, kit and Nikes).
Trading Smart, Not Down
In the recession in the early 2000s, consumers still traded up for small indulgences like Starbucks coffee. The trading down concept appears to have gained popularity lately, but that view is far too simplistic.
Whether it's the threat of job cuts or actual ones, the 2009 consumer strives to make better decisions than in the past. But rather than simply trading down for their purchase, consumers want to make sure they are "trading smart." This is a huge, untapped opportunity that few companies have recognized.
As consumers gain control over their finances, they also want to improve their health and image as well. The 2009 consumer is more savvy than in the past. Companies like Avon products did well in 2008 because they were the "smart buy." In the first quarter, companies that sell Sports & Leisure products are one of only three categories where consumer demand is rising.
Companies can gain pricing power by tapping into consumer needs like "no fear" and "trading smart." Premium pricing never left us -- consumer emotional needs just shifted along with the economy.
About the Study
Starting consumer surveys in 1999, the wRatings database now covers more than 1,200 companies from all 10 U.S. economic sectors. The full 2009 annual report can be downloaded free for a limited time at www.wRatings.com.