This 10-week module provides an overview of the consumer goods industry. The module will include weekly topics such as meeting customer needs globally, product design, distribution channels, operations and technology, sustainability, and developing strategies. Students will complete a 1,800 word assessment to be graded on a weekly basis. Each topic will include a 1-hour lecture, seminar, and workshop, as well as weekly review questions. The consumer goods industry encompasses a wide range of products from consumer electronics to household items. It is a global industry with the top 250 companies generating over $3 trillion in annual sales. The industry faces challenges in data analytics, omni-channel distribution, and sustainability.

1. Industry Studies 1: The Consumer
Goods Industry

2. 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 chains
Weeks 5: Operations, logistics and the role of technology
Weeks 6: Sustainable consumption and growth models
Weeks 7: Regulatory and ethical contexts and managing a global
reputation
Weeks 8: The role of innovation and change
Weeks 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
2

3. Structure of each topic
• Lecture presentation
10 x 1 hour (face to face)
• Seminar
10 x 1 hour (face to face)
• Workshop
10 x 1 hour (face to face)
• Topic Review
10 review questions per topic
• Assessment
100% coursework
3

4. Industry Studies: Consumer Goods Industry
Overview of the industry

5. Overview
The 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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6. Learning Outcomes
• Determine and describe the dynamics of the
6
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

7. The Changing Role of the CGI
Globalisation has changed
us into a company that
searches the world, not just
to sell or to source, but to
find intellectual capital – the
world’s best talents and
greatest ideas
Jack Welsh,
CEO GE

8. Let’s stop and consider your relationship
with the CGI

9. Ok so what’s your favourite consumer goods
brand?

10. You have 10 minutes to consider…
Where are all
the materials
and
resources
sourced
from?
How are they
transported
to the
markets in
which they
are sold?
How are they
sold in these
markets?

11. 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

12. Sub-dividing the market: Durables
In 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

13. Durables: Trending over time
Consider the impact of the recession on the
durable goods industry

14. Sub-dividing the market: Non-Durables
Nondurable 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

15. Non-Durables: A Defensive Stock
Consider why non-durable stocks are a
Source: good option during a recession?
BSE, 2014

16. Performance by Product Type
Source: Deloitte, 2013

17. CGI By Sector and Sales
Source: Deloitte, 2013

18. The Largest Players in the CGI
Source: Deloitte, 2013

19. A Truly Global Industry
Source: Deloitte, 2013

20. Region Breakdown of CGI Firms
Source: Deloitte, 2013

21. Where is the CGI investing?
Source: KPMG, 2013

22. Challenges in the industry
Source: KPMG, 2013

23. Data and Analytics
Source: KPMG, 2013

24. Big Data – Greater Predictability
Source: Target, 2013

25. Omni Channel: Consider the Mobile
Consumer
Source: Deloitte, 2013

26. Big Data – Real Time Marketing (CRM)
View Video: http://www.youtube.com/watch?v=SwLjTXRv-a0

27. Improving Efficiency and Conditions in the
Supply Chain
Growth of RFID Employee Conditions
Source: Telegraph, 2013

28. Sustainability
Source: Guardian, 2013

29. 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

30. End of presentation
© Pearson College 2013