After surging in 2008, prices on many consumer packaged goods (CPG) fell in 2009. And when prices didn’t fall enough on brand-name products, consumers turned to private label alternatives. As the outlook for economy recovery remains somewhat murky, especially with the continued high rate of unemployment, newly published studies suggest that the temporary price reductions (TPRs) manufacturers put in place last year will continue and along with promotional marketing.
Marketers who were lucky enough to emerge from the recession with their business models intact may find new challenges facing them in 2010. While consumers are spending again, they have learned some tough lessons during the downturn. Many analysts expect consumers to carry new shopping habits into this year.