adios rusty, hola rufo!-final

“Adiós Rusty. Meet Rufo!” Growth in the Pet Industry Comes with an Upscale Latino Treat

2014 © Santiago Solutions Group, Inc. www.SantiagoSolutionsGroup.com

Source: SSG Analyses of GfK-MRI 2010 & 2013 double base Survey of the American Consumer Base: Total US 18+ Household Income $50,000-$99,999

Growth In The $50 Billion Pet Industry Is Increasingly Coming With

A Latino Upscale Treat

SSG analysis reveals that contrary to the myth that Hispanics are less likely to make pets full members of their families, Upscale Latinos are increasing pet ownership dramatically while other segments are nearly flat or declining.

The pet consumer shift has implications for pet food manufactures, specialty stores, mass discounters, toys, animal hospitals, grooming spas, and other high-end services, etc.

2


3

Latinos Drive the Pet Ownership Market

Growth Upscale segment drives the category.Upscale Latinos Generate as many new pet owners as WNH Upscale s

Source: SSG Analyses of GfK-MRI 2010 & 2013 double base Survey of the American Consumer; Pet Ownership – Number in Household: Any Pet- AnyBase: Total US 18+ Household Income $50,000-$99,999

37.9 M

38.7 M

5.4 M

4.6 M

+ 2%

+ 17%

13.4 M

2.9 M2.3 M

+ 0%

+ 26%

Upscale Mass Market

WNH 2013WNH 2010

HISP 2013HISP 2010


4

Source: SSG Analyses of GfK-MRI 2010 & 2013 double base Survey of the American Consumer Base: Total US 18+ Household Income $50,000-100,000

Upscale Latino Dog Ownership Growing 5x the yearly pace of Total Market

WNH Upscale

Upscale Latino 5x

1x 1x


Total Upscale Market


5

Series1

10

-12

8

2

Series1

9

-7

8

5

Upscale Dog Owners As Likely to be WNH or

Latino; > Total Market Upscales

WNH HISP WNH HISP

100 Index = US Upscale Incidence


Purchasers of Packaged Dry Dog Are As Likely to be

Upscale Latinos as Total Market Upscales

Dogs Are Scoring with Upscale Latino Homes

6

Series1

4

-1

2

11

Mass Discount Store Pet Pur-

chases

Series1

233

4

Specialty Store Pet Purchases

Latino Upscales Have Highest Incidence of Pet Products Purchases in Both

Specialty & Mass/Disct Stores

Source: Source: SSG Analysis of Scarborough USA+ 2007 R2/ 2013 R2; Pet Supplies: Stores shopped/ used services past 12 months; Base: Household Income $50,000-99,999

WNH HISP WNH HISP

100 Index US Upscale

Avg.


7

Upscale Latino Pet Owners Routine Vet Visits Have

Reached Parity with Upscale Total Market


Series1

11

-18

9

2

Annual Vet Visits

WNH HISP

100 Index US Total

Upscale Avg.


8

Families w/ Children Most Likely to Own Pets Across

All Segments

Series1

6

-12

24

2

Single

Married w/ Kids

WNH HISP

100 Index US Total

Upscale Avg.

Pet Ownership – Number in Household: Any


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Upscale Gen Xer Driving Pet Ownership Incidence


Upscale Latino GenXers are 20% more likely than Upscale Latino Millennial

to own a pet.

Upscale WNH GenXers are 5% more likely than Upscale WNH Millennial

to own a pet.

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*AHAA Upscale 2.0, Coauthored By Nielsen

Why Act Now?


Upscale Latinos make up 29% of all Latinos, and 37% of all Latino buying power

Change in Pet ownership incidence suggests that the bulk of these consumers are first-time pet owners that may be new entrants into the American “pet culture”

A more In-Culture approach may help bond with Latino buyers as the growth of pet ownership in Upscale Latino segment calls for a Latino-friendly approach

“across all luxury segments, about 60% of Latino Upscales have strong ties to the Latino Culture; 30-40% voice a strong cultural duality”*

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*US Pet Ownership Statistical Breakdown - KC DOG BLOG (Analysis of Mintel Report). (2012, November 12). 'KC DOG BLOG'. Retrieved July 24, 2014, from http://btoellner.typepad.com/kcdogblog/2012/11/us-pet-ownership-statistical-breakdown.html2014 © Santiago Solutions Group, Inc. www.SantiagoSolutionsGroup.com

There is an opportunity for specialty stores and supercenters to partner with grooming services or vet clinics on premises promoting loyalty

Pet food retailers can increase brand connectivity with Upscale Latino’s booming love of pets by offering training classes, New Pet Owner Workshops, etc.

Pet food manufacturers should seize the moment by becoming trusted advisors, educating this new wave of Upscale Latino pet owners on wellness for their pets

Dogs’ New Latino Life…


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Sources 1. SSG Analysis of GfK-MRI 2010/ 2013 Double Base

Survey of the American Consumer; Base: Household Income $50,000-$99,999.

2. SSG Analysis of Scarborough USA+ 2007 R2/ 2013 R2; Pet Supplies: Stores shopped/ used services past 12 months; Base: Household Income $50,000-$99,999.

3. "US Pet Ownership Statistical Breakdown - KC DOG BLOG." Mintel, 12 Nov. 2012. Web. 24 July 2014. <http://btoellner.typepad.com/kcdogblog/2012/11/us-pet-ownership-statistical-breakdown.html>.

4. “Upscale Latinos 2.0: A Renewed Outlook for High-End Marketers”. AHAA, co-authored by Nielson. May 2014.

<http://www.ahaa.org/default.asp?contentID=27>.


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adios rusty, hola rufo!-final

Marketing

upscale latinos

upscale latino treat

upscale latino millennial

upscale latino genxers

upscale latino segment

upscale latino homes

pet industry

total upscale market