Consumer Packaged Goods Manufacturers are Over-Delivering On Brand Web Sites, According to New IRI Study Data.

Business Editors

CHICAGO--(BUSINESS WIRE)--April 23, 2001

New study data from Information Resources, Inc. (Nasdaq: IRIC) shows that while consumer packaged goods (CPG) manufacturers generally meet consumers' needs with their brand Web sites, they are often over-delivering - and likely over-spending - on features that consumers care little about. For example, while 38% of manufacturers' Web sites offer games and activities and 41% feature lifestyle information, the survey showed that only 12% and 27% of online consumers, respectively, want such "community" offerings. At the same time, the findings show that companies are not meeting consumers' desire for promotional offers from their Web sites. For example, approximately half of all consumers surveyed want free samples (55%) and coupons/special offers (48%) from the brand sites they visit, while only 22% and 19% of manufacturers, respectively, offer these features. The newly released findings are part of a broader study, "CPG Online: What's Not Clicking for Manufacturers, Retailers, and Consumers," developed by IRI's e.Ventures group.

The study indicated, however, that most consumers visit manufacturer Web sites to find company-contact and/or basic product information, and that CPG companies are generally satisfying these needs. Specifically, two of the top features consumers want in a brand Web site are an 800-number (63%) and an e-mail address (61%) with which to communicate with the company. 69% and 81% of companies, respectively, offer this information. Furthermore, 56% of consumers look for basic product information on a brand Web site and 91% of manufacturers offer this.

"Our findings show that while manufacturers are doing a lot right when it comes to their brand Web sites, they could still be much more efficient with their spending," said Brian Murphy, IRI's e.Ventures partner. "There has been a lot of hype about the need for companies to build a `community' on their Web sites. However, our research shows that consumers don't rely on brand Web sites for community. There are more trusted and complete sources for this on the Web. Manufacturers should focus on the basics: provide product information, facilitate consumer contact, and collect feedback on product satisfaction and consumer needs."

According to the study, CPG manufacturers are missing opportunities on their Web sites to obtain helpful information from their customers. For example, 74% of consumers surveyed are willing to provide product satisfaction feedback at a Web site, and 50% are agreeable to answering questions about their product needs and preferences, while only 38% and 31% of manufacturers, respectively, are asking for such information.

The study also showed that while almost three quarters (72%) of manufacturers sponsor brand Web sites, less than a third (28%) of these companies are attempting to calculate the return on their investments.

"To date, manufacturers have been doing a lot of experimentation with brand Web sites. As brand sites increasingly become part of their marketing mix, manufacturers need to better ensure that they maximize the return on their online investment," added Murphy.

The IRI study consisted of an online survey of over 7,900 primary shoppers, conducted by Harris Interactive of Rochester, NY, and interviews with more than 75 CPG manufacturer and retail executives, conducted by PERT Survey Research of Bloomfield, CT. McCusker & Associates of Suffield, CT, participated in study design and analysis. The surveys were conducted from November 2000 through February 2001. For the study, consumer packaged goods were defined as products in the following categories: healthcare, vitamin, beauty care, food and beverages, perishables, frozen foods, household supplies, baby care and pet food.

IRI's overall study, "CPG Online: What's Not Clicking for Manufacturers, Retailers, and Consumers," also includes extensive findings on the effectiveness of two other primary Internet activities of the CPG industry: advertising/promotions/e-mail and e-retailing.

About IRI:

Information Resources, Inc. (Nasdaq: IRIC) is the leading provider of UPC scanner-based solutions to the consumer packaged goods industry, offering services in the US, Europe, and other international markets. IRI supplies manufacturers, retailers, and brokers with information and analysis critical to their sales, marketing, and supply chain operations, providing services designed to deliver value through an enhanced understanding of the consumer to a majority of the Fortune 500 companies in the CPG industry.

About e.Ventures:

e.Ventures, a division of Information Resources, Inc, is a leading provider of Internet marketing research to the CPG industry. IRI e.Ventures links offline purchase behavior with online attitudes & usage to enable CPG marketers to integrate the Internet into their brands' marketing mix to drive sales. IRI e.Ventures services, through partnerships with Internet leaders DoubleClick and Forrester Research, combine CPG marketing research best practices with Internet thought leadership.

For More Information About IRI's Study, "CPG Online: What's Not Clicking For Manufacturers, Retailers, And Consumers," Call Brian Murphy of IRI's E.Ventures Group at (513/357-8248) or Sheila McCusker of McCusker & Associates at (860/614-2088).