Marketing Forecast from Ad-ology

Globally, the market for over-the-counter (OTC) medications has reached $95 billion. Despite the recession, consumers purchased 4.7% more of these products in 2009 when compared to sales results from 1 year earlier. A Nielsen report indicates much of the growth in demand for OTC products is occurring in BRIC quadrant (Brazil, Russia, India and China) but there are ways for manufacturers to boost sales in the U.S.

Some 95% of girls aged 15-17 and 88% of girls aged 12-14 wear makeup. Beauty brands attribute the increase in young consumers buying their products to the Internet. “They are really savvy, they do their own research and know exactly what brands and products they need,” says cosmetic brand Korres’ Annia Spahr. More than half of cosmetic purchases are made at drug stores and an additional third come from Walmart. Cool colors are expected to be popular this fall, says many manufacturers. Many companies are introducing “peacock” shades, such as teal, navy, and gold, in lipsticks, eye shadows, and eyeliner.

Four in 10 moms (40%) say it was their decision to purchase their child’s cell phone, yet it’s important technology-marketers target both parent and child, says Ipsos OTX Media CT’s Donna Sabino. Parents tend to have decisive viewpoints on the best ages to first purchase a technology device, according to electronics review website Retrevo. For instance, parents are more accepting that kids get their own computers before they get their own TVs. Although Ipsos research finds kids are increasingly receiving their first cellphone at age eight, six in 10 parents (61%) feel their child should first receive a cellphone as a teen. Three in 10 (28%) feel the tween years are the perfect time for their first cellphone.

During the recession, ultra-affluent consumers cut back on spending. These cutbacks weren’t made out of necessity. The super-rich reduced spending because many consumers frowned on conspicuous consumption. The latest data from American Express indicates that the sentiment of affluent consumers is changing.

Amid the dark cloud of high unemployment, home foreclosures and the global credit crisis, a transformation has taken shape: the modern consumer has undergone a makeover of sorts and adapted to the new economy. Cutbacks on travel and dining out have driven a growing number of consumers to reinvest in their homes to make it a more welcoming and inviting space. Sales of private-label personal care products have also surged. In addition, consumers have grown increasingly aware of and concerned about the environmental and sustainability practices of their favorite brands. As consumers evolve, product marketers must keep a finger on the pulse of what’s driving consumer behavior in order to rise above growing competition.

Consumer interest in healthy eating, artisan foods and “localism” countered recessionary pressures and helped fuel the fresh baked goods market to grow 4% in 2009 to reach $16 billion, according to “Fresh Baked Goods in the U.S.” by market research publisher Packaged Facts. “Although fresh baked goods are produced and sold in a wide variety of retail channels, certain overriding trends have affected how these products are marketed across most channels,” says Don Montuori, publisher of Packaged Facts. “For example, consumer demand for specific kinds of products – such as those that fill specific dietary needs or budgetary concerns – has led retailers to adapt in terms of both product offerings and marketing strategies.” Packaged Facts projects that the market for fresh bakes goods will exceed $20 billion by 2014.