Brands Should Spend Less on Promotions, More on Innovation

MIAMI — Manufacturers spent $34 billion promoting their brands last year, but it wasn't enough to halt the erosion of national-brand share to retailers' private labels, up one share point to 20%. What's more is that the investment yielded no measurable growth in household penetration, basket size or category volume, according to Romesh Wadhwani, chairman of SymphonyIRI Group, who suggests CPG companies

MIAMI — Manufacturers spent $34 billion promoting their brands last year, but it wasn't enough to halt the erosion of national-brand share to retailers' private labels, up one share point to 20%.

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