Download - Lecture 1 industry studies student
Industry Studies 1: The Consumer Goods Industry
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Design of the module
Weeks 1: Overview of the industry
Weeks 2: Meeting the needs of people on a global scale Weeks 3: Product design theories and approaches
Weeks 4: Distribution channels and supply chainsWeeks 5: Operations, logistics and the role of technology
Weeks 6: Sustainable consumption and growth modelsWeeks 7: Regulatory and ethical contexts and managing a global reputation
Weeks 8: The role of innovation and changeWeeks 9: Developing and implementing strategies globally Weeks 10: Planning for the future
Assessment: This module will be 100% assessed by coursework of a maximum of 1800 words or equivalent
Structure of each topic
• Lecture presentation10 x 1 hour (face to face)
• Seminar10 x 1 hour (face to face)
• Workshop10 x 1 hour (face to face)
• Topic Review10 review questions per topic
• Assessment100% coursework
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Industry Studies: Consumer Goods Industry
Overview of the industry
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OverviewThe consumer goods industry touches virtually every person on the planet at some stage and encompasses a wide range of industries from consumer electronics all the way to small items that you see in your kitchens. Due to the sheer scale and eclectic nature of the industry defining it can be a complex task. In this introductory lecture we will uncover the main dynamics of the industry, including its size and scope, and thereafter take an in-depth look at the different sub-sectors that make up this global industry. We will also take a look at the key players in the industry and evaluate their impact commercially and on sustainability of the environment. Finally, we will look at some of the key trends and challenges that the industry faces now and in the future.
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Learning Outcomes
• Determine and describe the dynamics of the consumer goods industry
• Understand and articulate the various sub-industries and key players that make up the CGI
• Critically evaluate the evolution of the CGI as well as its commercial and environmental impact
• Describe the key trends and challenges the industry is currently facing
The Changing Role of the CGI
Globalisation has changed us into a company that
searches the world, note just to sell or to source, but to find intellectual capital – the world’s best talents and
greatest ideas
Jack Welsh, CEO GE
Lets stop and consider your relationship with the CGI
Ok so what’s your favourite consumer goods brand?
You have 10 minutes to consider…
Where are all the materials
and resourced sourced from?
How are they transported
to the markets in which they are sold?
How are they sold in these
markets?
What is the CGI?
The consumer products industry is very hard to define because of its rather eclectic nature and its close relationship to many
other industries. For our purposes it can be described as enveloping practically every item an individual can
purchase, especially in the areas of toiletries and cosmetics, appliances, electronics, beverages and food, and other generic
household items.
Key Facts:
Total sales of the Top 250 exceeded $3
trillion in 2011
Average Top 250 generated sales of $12.5
billion
Two-thirds of the volume of trade in the
world economy
Sub-dividing the market: DurablesIn economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be considered perfectly durable goods,
because they should theoretically never wear out. Highly durable goods such as refrigerators, cars, or mobile phones
usually continue to be useful for three or more years of use, so durable goods are typically characterized by long periods
between successive purchases. Wikipedia, 2014
Durables: Trending over time
Consider the impact of the recession on the durable goods industry
Sub-dividing the market: Non-DurablesNondurable goods or soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan
of less than 3 years.Examples of nondurable goods include fast moving consumer
goods such as cosmetics and cleaning products, food, fuel, beer, cigarettes, medication, office supplies, packaging and containers, paper and paper products, personal products,
rubber, plastics, textiles, clothing, and footwear. Wikipedia, 2014
Non-Durables: A Defensive Stock
Consider why non-durable stocks are a good option during a recession?Source:
BSE, 2014
Performance by Product Type
Source: Deloitte, 2013
CGI By Sector and Sales
Source: Deloitte, 2013
The Largest Players in the CGI
Source: Deloitte, 2013
A Truly Global Industry
Source: Deloitte, 2013
Region Breakdown of CGI Firms
Source: Deloitte, 2013
Where is the CGI investing?
Source: KPMG, 2013
Challenges in the industry
Source: KPMG, 2013
Data and Analytics
Source: KPMG, 2013
Big Data – Greater Predictability
Source: Target, 2013
Omni Channel: Consider the Mobile Consumer
Source: Deloitte, 2013
Big Data – Real Time Marketing (CRM)
View Video: http://www.youtube.com/watch?v=SwLjTXRv-a0
Improving Efficiency and Conditions in the Supply Chain
Growth of RFID Employee Conditions
Source: Telegraph, 2013
Sustainability
Source: Guardian, 2013
Appendix – Sources for illustrations
Slide 8:www.wikipedia.org
Slide 8:Ben & Jerrys, Apple, 212, L’Oreal, IKEA and Unilever Websites
Slide 13:www.rediff.com
Slide 15:www.bettertrades.org
End of presentation
© Pearson College 2013