Turns out those CPG and QSR brands that advertise pizza drenched with cheese and crisply frosted doughnuts know exactly what they're doing. According to a new study conducted at Nestle's research center in Switzerland, images of high-calorie foods make whatever follows into our mouths taste better — even if it's metal.

That's right. A team led by Dr. Julie Hudry identified previously unknown brain mechanisms of "visual-gustatory sensory interactions" involved with food enjoyment. They found that visual food cues are important as a determinant for "food rewards."Continue reading...

Consumer Goods companies need to think and act more their retail partners as their participation in social media and online storefronts increase.

An Economist Intelligence Unit report, New Directions: Consumer goods companies hone a cross-channel approach to consumer marketing, sponsored by Oracle, reveals that 41% of respondents surveyed plan to sell products directly to consumers in 2012, a 24% increase over those currently offering direct sales.Continue reading...

There's good news for CPG companies who've been shifting their promotional dollars from print ads, FSIs, direct mail, and other traditional media to online media. A new study suggests they should keep doing it.

A trio of lower-case branded research consultancies — accenture, comScore, and dunnhumbyUSA — have teamed up on a research study to answer the question, "Are your CPG brands maximizing the return on your digital investment?"

What they discovered was compelling: a direct correlation between CPG brand website usage and in-store purchase behavior. The study was based on an integrated panel of one million U.S. Internet users who gave comScore explicit permission to have their online activities continuously measured and matched to their in-store brand buying behavior provided by dunnhumbyUSA.

The research was designed to accomplish three specific objectives:Continue reading...

Given the strong emphasis on branded products, it is logical to conclude that the performance of a product is all that matters to the consumer. But a new global study suggests that the reputation of the company behind the branded product plays a surprisingly important role in the consumer purchasing decision.

Seventy percent of consumers surveyed avoid buying products if they do not like the parent company, according to a study conducted by KRC Research, a market research firm, for the Weber Shandwick PR agency. The study was conducted among 1,375 consumers and 575 senior corporate executives in Brazil, China, the U.S. and U.K. Weber Shandwick's Chief Reputation Strategist Leslie Gaines-Ross says, "Consumers are using their dollars as a vote of confidence in companies they trust... The company standing behind the brand assures consumers that they can trust the quality, ethics and safety of the brands they are buying."Continue reading...

What could make regular Oreos appealing but turn shoppers off to the same basic product with pastel fillings (even after consumer research has indicated that “spring” themed Oreos would be just hunky-dory with American shoppers)? Kraft is trying to figure that out with a new research emphasis into “emotional design” of products, packaging, positioning and brands.

Such an effort might fit Kraft’s needs precisely, as the company pursues CEO Irene Rosenfeld’s recently announced plans to spin off a collection of slower-growing brands and older products into a separate company, while Kraft’s snack brands and other entities comprise a faster-growing enterprise.

In any event, according to a story in CPGmatters.com, the Chicago-based packaged-foods giant is trying to home in on what makes the difference between a consumer “liking” a product and “preferring” it over a similar product under the same brand -- or the competition. Such insights could be particularly helpful as Kraft tries to figure out which line extensions will work and which will confront resistance by shoppers.Continue reading...