t.

Passage3
Manulacturers ol Cosumer P'ackaged Goods (CPGs) face Iwo

challenges this year.

The first is continued slow
key The
negative growth in people's disposable
incomes.
second
is changing consumer attitludes 1owards products and
brands, as lhe greal fragmentation of consumer markets take

another turn. ln response, companies

must
dramatically shif
the route they take to reach consumers n terms of both
product distribution and communications. In many markets
now.
static for 5 years
consumer wages have been
Even where economies are starting to perform better, the
squeeze on after-tax wages, especially for the middle class
of younger people and families, is depressing consumer
spending Although growth in developing countries is still

better than in the United States and Europe,

a slowdown in
ded
countries such as China where many countries
emerging
had hoped for higher sales has
translated quickly into lower
the than expected consumer spending growth.
Tor Meanwhile, what we call the great fragmentation is
manifested in consumer behaviour and market response. In
both developed and emerging markets, there is a wider
consumers now than at any time in the recent
variety among
past. Growth is evident both at the top of the market (where
9 more consumers are spending for higher quality food and
other packaged goods) and at the lower end (where an
on
or
increasing number of consumers are concentrating
residues) But the traditional middle of the market is shrinking
Further, individual consumer behaviour is more pluralistic.
We are used to seeing, eg spirits buyers purchasing a

premium brand in a bar, a less costly label at home tor

personal consumption and yet another when entertaining
ral guests. But this type of variegated shopping has now spread
to the grocery basket as well. Fewer Consumers are making
ng one bIg stocking-up trip each week.
Instead, shoppers are visiting a premium store and a
discounter as well as a supermarket, in multiple weekiy
shops in addition to making frequent purchases online,
Hiring recession, more shoppers becarne inclined to spend
in time hunting for bargains and as some traditional retailes
either went out of business or shuttered down, retail space
was freed up and was often filled by convenience stores
specialty shops and discounters.
Age ago, VCPG companies had only a handfu of sales
channels to consider supermarkets, convenience stores 1s
advanced economies and traditional small and larg
retailers in ernerging countries.
 then
Stnce dis 1nters have made significant words, 22. In the context ot the passaye, whih ot the
an luding ho potts low vanety onutlets, 1H h as tollowin;
Europe's Ad branda evistecd otherwie but 1s now being manitested m
and whieh ell a imited tnnge nt private greH ery huying grocerien as well?
itens in
srmallet stoms and massivr warehomee uls sIh as Tom a m i m e r a purhantng the ame proatu t. teit ov er a perod
And Sam s cub, whh mitially
operated solely in the
are now anehR
US, bit
Intemationally (h) C onaumer wiling to
purehase grmds tor a longer perodit
time
tn addithon stons sei 1alised tetailers,
and online merchants
r etmers preferring, luvury Rmnda ver regular gownd
are havinR An mpnt nn the tPG
landsc apr Fe onomising
fdy C onsumers of their
vonsime nav TD pleasanily. suprised hy the savings are mmre aware
right
r) Conumers preter btuying gmfs freom A variety t stores
generated y
spreading their business among muliple
channels as well as by the variety and
product 9)() what ovstec) oherian nem teing rmanifented in t u
find The rvsult has lbeen greaier demand for quality they
rOcernies that con1 irnera preter tasgrg y e n m a aty
more products
and brands iwith ditteTent sizes. pac stores
kaging and sales methods
At most (N. companies, SKUs 23. Whih of the following 19 most nearly the opp0site in
being itie
are
proliferating despite there meaning to the weord depressing as used in the passage
increase
overall consumption A better
in

outoome can be seen at smaller food (a) Encouraging ) Sunny

and beverage suppliers, (c)Doubtful (di ight
which are
benetiting from consumer demand for variety
and (e)N
authenticity. A recent report around that
in the US, small
manutacturers (with revenues of less than US S ( a ) Opposite of depressing is encuracgng
the
billion) grew I
at twie
compoiund annual rate oflarge manufacturers 24. As mentioned in the passage. CPG companies may have
fw7th revenues of more than $3 to reassess their present strategies ot operating te
billion) between 2009 and
2012 * * * * * * * * * * ****

Consumer's media Usage has also retain their customers.

fragmented with the rise
of
digital content and ihe proliferation of online devices. B. keep pace with changing consumer preterences as
Each channel trom the Web, Mobile and social they have access to multiple media channels.
sites for
radio, TV and print has its own C. make more cost-effective decisions.
requirements, audience
appeal and economics, needing specialised attention. But, at Codes
the same time, media
campaigns need to be closely (a) Only A
(c) A and B
(b) Oniy B
Co-ordinated for efftective consumer (d) Only C
messaging (e) All of these
Collectively, these shifts challenge the way CPG companies
) As per the passage. CPG companies need to reassess the
manage their brand and business portfolios and call for a
present sirategjes. Ihe reason is mentioned in al the three
re-thinking of their go-to-market approach,
with
an 25. Which of the
emphasis on analytics. Our work with INSEAD shows that following is true in the context of
th
among leaders, applying analytics-especially for tracking passage?
(a) In the Us, during the 3
cOnsumer behaviour and product and promotional year period atter 2009, smal
manufacturers did not farewelU
pertornance considered one of the most effective ways to as
compared to their
large
Tnprove results and outpace the competition. counterparts
(b) Impact on disposable incomes ot people barely attects th=
But if's got about insight. It's also about using the insight CPG manutacturing ndustry
just
how 1o
wISely to determine more
Knowiedgeable about customner needs and preterences a
manage costs. The (c) Post-tax wages, especially for the middle class, are one
the critical tactors which have reduced
c-

ending behaviour o
onpany 5, the smarter and more focused it must be in consumers

Tianiagng its own etononics to Cost-ellectively deliver both (d) CPG have always been a tavourite among consumers
varnety and value to be squeezed consumer. (e) None of the above

21. The central theme of the given passage Is . O(c) is true that post-tax wages. especially tor the middle class, ar
******

one of the critical lactors, which have

ta) the shrinking market reduced spending behaviour d
consumers
(b) shift towards offering luxury goods to con6umers
26. Which of the tollowing
products to offer tonsumers with squeezed pockets correctly explains the meaning a

d) to highlight products conbumed by the middle class phrase, 'a handful ot as used in the passage?
(0) Boundless (b) Planned
fe gaining insight into changing cobuner belhaviour towards
(c) Satisfactory (d) Limited
CPGs (e) lmperleet
Cenlral herne ol the given pastage
fo)
chángirg GOnsurner behaviour towards CPGis
is to gain insigh into
(d) Ahandful of' is meant tor
"limited'.
 Since, then discounters have made significant words, 22. In lhe context of the passage, which of the following
existed otherwise but is now being manifested in
including no proiils, low variety outlets, such as Europe's Ald
and which sell a limited range of private grocery items in
brands
buying groceries as well?
(a) Consumers purchasing the same products for over a period
smaller stores and massive warehouse clubs such as Tom
lime
and Sam's ciub, which initially operated solely in the Us, bu ot
are now expanding inlernationally (b) Consumer willing to
purchase goods for a longer period
time
In addition stores, specialised retailers, and online merehants () Consumers preferring luxury goods over regular goods
are having an mpact on the CPG landscape. Economising (d) Consumers are more aware of their rights
consumers have been pleasanily, surprised by the savings (e) Consumers prefer buying, goods from a variety of stores
generated by spreading their business among multiple
O (0) Whal oxislocd olherwise but now beng manifested
in buying
channels, as well as by the variety and product quality they
s that consurners preler buying YOods from a variety of
grocerles
find. The result has been greaier demand for more productls
stores.
and brands, with ditterent sizes, packaging and sales methods
At most CPG companies, SKUs are proliferatingdespite there 23. Which of is
the following nearly most the opposite in
meaning to the word 'depressing as used in the passage?
beng little increase in overall consumption. A better b)Sunny
(a) Encouraging
outcome can be seen at smaller food and beverage suppliers, (C) Doubtful (d) Light
which are benetiting from consumer demand for variety and (e) Nil
authenticity. A recent report around that in the US, small ( a ) Opposite of 'depressing' is 'encouraging'.
manufacturers (with revenues of less than US $ l billion) grew
at twice the compound annual rate of large manufacturers 24. As mentioned in the passage, CPG companies may have
to reassess their present strategies of operating to
(with revenues of more than $3 billion) between 2009 and
2012.
* * * * * * * * *

A. retain their customers.

Consumer's media usage has also fragmented with the rise B. keep pace with changing consumer preferences as
of digital content and the proliferation of online devices.
Each channel from the Web, Mobile and social sites for they have access to multiple media channels.
radio, TV and print has its own requirements, audience C. make more cost-effective decisions.
Codes
appeal and economics, needing specialised attention. But, at
(a) Only A (b) Only B
the same time, media campaigns need to be closely (c) A and B (d Only C
co-ordinated for effective consumer messaging. (e) All of these
Collectively, these shifts challenge the way CPG companies ( e ) As per the passage, CPG companies need to reassess their
manage their brand and portfolios for a
business with
and call present strategies. Ihe reason is mentionedin al the three.

re-thinking of their go-to-market approach, a

25. Which of the following is true in the context of the
emphasis on analytics. Our work with INSEAD shows that
among leaders, applying analytics-especially for tracking passage?
(a) In the US, during the 3 year period after 2009, small
Consumer behaviour and product and promotional
manufacturers did not farewell as compared to their larger
performance considered one the most effective ways to
of counterparts
improve results and outpace the competition. (b) Impact on disposable incomes of people barely affects the
But it's got just about insight. I's also about using the insight CPG manufacturing industry
determine how to manage costs. The more (c) Post-tax wages, especially for the middle class, are one of
wIsely to
ustomer needs and preferences a the critical factors which have reduced ending behaviour of
knowledgeable about
focused must be in consumers
company is, the smarter and more
deliver both (d) CPG have always been a favourite among consumers
managing its own economics to cost-eftectively
consumer. (e) None of the above
variety and value to be squeezed
c ) t is true that post-tax wages, especially for the middle class, are
21.The central theme of the given passage is .
one of the critical factors, which have reduced spending behaviour of
(a) the shrinking market consumers.
to consumers
(b) shift towards offering luxury goods 26. Which of the following correctly explains the meaning of
(c) products to offer consumers with squeezed pockets
phrase, 'a handful of as used in the passage?
the middle class
(a) to highlight products consumed by (a) Boundless (b) Planned
consumer behaviour towards
(e) gaining insight into changing (c) Satisfactory (d) Limited
CPGs e) Imperfect
O(e) Central theme of the given passage is to gain insight inlo (d) 'A handful of is meant for "limited'.
changing consumer behaviour towards CPGS.
 one of the
most critical
27. As mentioned in the passage,
to the needs of
consumers

factors that aids in catering

1S...*** *. the
(a) persuading them to purchase goods produced by
organisation
plan to meet
(b) assess their requirements and appropriately
them
(c) offering them products that
an organisation regularly
manufactures
(d) concentrating only on being aware about changing
preferences of consumers

(e) None of the above

factors that aids in
(6) As per the passage, one of the most critical
assess their requirements
catering to the needs of consumers is to
and appropriately plan to meet them.

28.Which of the following is most nearly the same in meaning

to the word 'shrinking' as used in the passage?
(a) Developing (b) Annoying
(c) Narrowing (d) Wasting
(e) Rising
(c) 'Shrinking' and 'narrowing' are the words with similar meaning.

29.Which of the following is most nearly the same in meaning

to the word, 'variegated' as used in the passage?
(a) Diverse (b) Composite
(c) Strong (a) Narrow
(e) Valued
(a) Variegated' and 'diverse' are the words with similar meaning.

30. Which of the following is most nearly the opposite in

meaning to the word 'shuttered' as used in the passage?
(a) Closed (b) Retail
(c) Flourished (d) Gratified
(e) Nearest

)"Shuttered' is opposite to the word 'flourished' in the meaning.

Directions (Q. Nos. 31-40) Read the following passage

carefully and answer the questions given. Certain
words/phrases are given in bold to help you locate
them whileanswering some of the questions.
UBPS (PO) 2014]
Passage 4