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%.

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 reassign funds to product innovation.

“What's the point of spending

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