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Most firms offer products that fit primarily into only one of these groups, although a firm may have a smattering of brands that cross the lines. Virtually all companies are similar in organizational structure, emphasis on brand management, and approach to business. Consumer products are the foundation of the modern, consumer economy. The industry itself not only generates an enormous portion of the gross domestic product, it also pumps huge amounts of money into other industries, notably advertising and retail. Individual consumers make up the majority of this industry's customers; sales are concentrated in the United States, Japan, and Western Europe, though other parts of the world are working hard for the privileges of wearing clothing emblazoned with company logos, eating processed food, and chopping vegetables with an electric motor instead of a traditional utensil. Success in consumer products is all about marketing an individual product, often by promoting a brand name. The competition is ferocious for shelf space, so package design, marketing, and customer satisfaction are key elements. The majority of companies that sell consumer packaged goods are conglomerates consisting of many diverse subsidiaries selling brands that consumers recognize. Sara Lee Corporation produces products from Ball Park franks to Hanes underwear and Endust furniture polish. Unilever, an industry giant based in England, sells teas and soups, pasta and pizza sauces, ice cream, bath soaps, shampoo, salad dressing, margarine, laundry detergent, toothpaste, cosmetics, frozen foods, and perfumes. Other big players in the industry include Nestle, Clorox, Kraft, Procter & Gamble, SC Johnson, and ConAgra. Trends Size Matters A spate of mergers and acquisitions in recent years has resulted in a smaller group of larger giants-this is not an industry with a lot of boutique enterprises and garage entrepreneurs. (Recent industry acquisitions include PepsiCo's purchase of Quaker Oats, Kraft's purchase of Nabisco, and General Mills's purchase of Pillsbury.) There's no doubt about it: The conglomerates hold the power positions in this industry. Size gives them economies of scale, and a diversity of products gives them protection against down cycles. Which is not to say that cute little mail-order pickle-and-jam companies don't crop up every now and then and make a serious go of it. They do. These places aren't where the majority of the jobs are, however-at least not until Unilever or Nestle takes them over. Chasing the Niches The demographics of the United States are changing. For example, the number of under-18s of Hispanic descent is now greater than the number of White under-18s-and many of them speak Spanish as a first language. Consumer products companies are desperate to reach the Hispanic and other niche markets, and that means altering traditional product-development and marketing techniques to create products that will be in demand in those markets, and sell to them as effectively as possible. Sophisticated market research allows brand managers to better understand niche markets and how to market to them. And computers and the Internet make it easier for companies to market their products to different niches in different ways. Globalization Like many other industries, the consumer products industry is rapidly globalizing. Companies based in the United States have operations around the world that are involved in producing products for both domestic and foreign markets. For example, a company may collect the raw materials that go into its products in one country, refine those raw materials in another country, and assemble the refined materials into finished products in a third company-in effect, doing only product design and marketing in the United States. This has been going on for a number of years now. Companies like it because it lowers their costs. Employees? Well, they don't like it when their jobs are eliminated in the United States and replaced by cheaper workers overseas. Meanwhile, the anti-globalization crowd is growing like crazy, meaning that we've probably only just begun to see protests and boycotts of companies that seemingly exploit third-world people and places, as well as American workers, in their quest for lower costs. How It Breaks Down Beverages Intensely competitive and hugely reliant on advertising, this is a mature industry. Different segments of the beverage world include beer (Adolph Coors, Anheuser-Busch, Miller, Stroh's), soft drinks (Coca-Cola, PepsiCo), and juices (Tropicana is owned by PepsiCo, Minute Maid by Coca-Cola). Foods There may be a little less consolidation in the food industry than in beverages, but this is also a mature and competitive industry with single-digit growth. Most of the packaged goods that fill our pantries, cupboards, and refrigerators come from a handful of big-league corporate players. Some are household names; Campbell Soup, General Mills, H.J. Heinz, and Kellogg have spent enormous sums of money to tattoo their names onto your brain. Other big players, such as ConAgra (Hunt's, Healthy Choice, and Wesson) are better known for brands they own. Toiletries, Cosmetics, and Cleaning Products Baby Boomers aren't getting any younger, and vanity will outlast us all. So will household dirt. So this is a solid category for the foreseeable future. At three-and-one-half times the size of its nearest competitor, Procter & Gamble is the Godzilla of this group-and indeed the consumer products world in general. Other players include Clorox, Colgate-Palmolive, Revlon, Gillette, Kimberly-Clark (Huggies, Kotex, and Kleenex), Unilever, and SC Johnson (Pledge, Glade, Windex, Raid, OFF!, Edge, Ziploc, Shout, and Drano). Small Appliances This is an amalgam of companies in various industries. More people are building and buying homes, and forecasters don't expect the trend to slow. So tools, kitchen gadgets, air-conditioners, chain saws, and anything else Saturday shoppers enjoy pausing over in the hardware store are selling well, and the future looks rosy for this segment of the industry. Nevertheless, this is also a relatively mature industry, and the brand system is not as strong as it is in the other categories mentioned above. Players here include Black & Decker, Sears, and Snap-On. Job Prospects Professional job opportunities in this industry are largely in brand management, sales, customer service, and market research and development. And constantly emerging new products and increasing competition promise to provide positions for brand managers and marketers from now until the end of time. The mammoth consumer products companies often recruit on campus and boast strong training programs for recent college grads, but they're also known to pull experienced people from other firms in the consumer products industry. If you choose to remain in the industry for a long time-and many people do-you can spend time overseas, try out new products and categories, and ultimately move into general management. Although you'll probably lead a less glamorous life than any of your pals in banking or consulting, this is an industry in which you can have real profit-and-loss responsibility, earn a very comfortable salary, and get home from the office while there's still daylight, at least during summer. On the downside, there are areas in the industry with less-certain futures. Technology is sure to eliminate large chunks of workers, as functions like production, packaging, and customer service become increasingly automated, and functions migrate overseas to cheaper labor pools. Major Players, by 2003 Revenue Rank Company Revenue ($M) 1-Year Change (%) Employees 1 General Electric 134,187 3 315,000 2 Altria Group 81,832 2 166,000 3 Nestle 70,823 10 254,199* 4 Unilever 50,698* 10 247,000 5 Proctor & Gamble 43,377 8 98,000 6 Kraft Foods 31,010 4 109,000 7 PepsiCo 26,971 7 142,000* 8 Tyson Chicken 24,549 5 120,000 9 Coca-Cola 21,044 8 56,000* 10 ConAgra 19,839 -28 63,000 Source: Hoovers.com « Return to Previous Page Career Content ©2003 The Employment Channel		What do you like the best about St. Louis? • KHIT's 96 • The Pot Holes • Gus's Pretzels MO Power Ball:  16, 18, 26, 39, 48, Powerball: 22, Power Play: 5 IL Mega Millions:  9, 10, 17, 41, 52, Mega: 19 results posted by 9am following day Saint Louis, MO Sunny 80°F MORE→
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