hispanic shopper insights - popai university on the web jan. 2009
DESCRIPTION
This presentation provides a broad overview of the U.S. Hispanic market, trends, insights and observations as they pertain to Hispanic Shopper Marketing behaviors. This presentation was given as part of POPAI University on the Web seminar series. January 2009.TRANSCRIPT
Where Commerce & Culture Collide
Hispanic InsightsPOPAI University - On the Web
January 22, 2009
Agenda
• Speaker Introduction
• Changing Face of America
• Cultural Nuances - Hispanics
• Hispanic Shopper Insights
• In-Store Opportunities
• Insights into Action - 7UP Case Study
• Questions
Becky Arreaga
• Agency Partner & Founder
• Over 23 years industry experience specializing in client management, strategic planning and marketing integration
• Began career at nation’s largest Hispanic advertising agency, now Bromely Communications
• BA from Texas Tech University, MA from The University of Texas at Austin
• Appointed to the National Board of Directors of the College of Mass Communications at Texas Tech University
• Full-service Hispanic agency specialize in strategic below-the-line marketing driven by real-time consumer and marketplace insights
• Seasoned team of marketing junkies with 20+ years experience in segment marketing and sales activation
• Network of Market Ambassadors in the top 25 Hispanic markets
• Based in Austin, TX and are 100% minority and woman owned
Mercury Mambo
Mercury Mambo
Motivate Hispanic consumers to take action!
• Create brand experiences designed to make a positive and meaningful impact on consumers
• Work with some of the most recognized brands on the planet
• Do amazing things with amazing clients
• Named to Inc. Magazine’s 500/5000 Fast Growing Companies in 2007 and 2008
Mercury Mambo
The changing face of America
Increasing Cultural Diversity
Source: US Census Bureau (1980&1990) and Geoscape (2020)
The non-ethnic market is shrinking
9
10
11
12
Percent Hispanic of the Total Population in the United States1970 to 2050
*Projected Population as of July 1
Source: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050
Census Projections
7/1/08: Hispanic population surpassed 45 million,
representing 15.1% of total pop!
Market Opportunities
Current Population Population Growth
2000 - 2008 CAGR
State Hisp. Pop. (mil) Hisp. as % of Total Hispanic Total
Largest Markets
States with the largest Hispanic
Populations
California 13.5 36% 3% 1%
Texas 8.8 36% 4% 2%
Florida 3.8 20% 5% 2%
New York 3.1 16% 1% 0%
Illinois 2.0 15% 3% 1%
Concentrated Markets
States with the highest
concentration of Hispanics
New Mexico 0.9 44% 2% 1%
Arizona 2.0 30% 5% 3%
Nevada 0.7 25% 7% 4%
Colorado 1.0 20% 4% 2%
New Jersey 1.4 16% 2% 1%
Growing Markets
States with fastest Hispanic population
growth
Georgia 0.8 8% 8% 2%
Tennessee 0.2 3% 8% 1%
South Carolina 0.2 4% 7% 1%
North Carolina 0.7 7% 7% 2%
Maryland 0.3 6% 5% 1%
U.S. Total 47.2 15% 4% 1%Source: U.S. Census Bureau, Geoscape® American Marketscape DataStream™” 2008 Series; Latin Force Group LLC and Goldman Sachs Research
Acculturation
Skews Foreign Born Includes both foreign and U.S. born U.S. Born (2nd & 3rd generations)
Typically married, less education, rent vs. own
Skews slightly female More likely to be college-educated
Avg. HHI approx. $53k Average HHI $65k Average HHI $81k
Todo en español Fastest growing segment English only
Desire to belong, connect to home, familiar brands
Blend both languages, embrace heritage and innovation
Brands = reconnect, retro-acculturation
Source: Adapted from Yankelovich MONITOR Multi-Cultural Marketing Study 2005, Simmons NHCS/NCS Spring 2006 Full Year Study, Hispanic adults 18+
Understanding Hispanic Cultural Insights
Macro Trends
Sources: Adapted from Yankelovich MONITOR Multi-Cultural Marketing Study 2005, Simmons NHCS/NCS Spring 2006 Full Year Study, 2006 ACNielsen
Values Orientation
Economic Impact
Pop Culture
Understanding Hispanic Cultural Values
Latino American
Interactions
Family InterdependenceRelationship OrientedSympatía y Harmony We decide as a family
Individual AchievementTask Oriented
Healthy CompetitionI make my own decisions
Success Get ahead Get more joy out of life
Authority Respect Authority Challenge Authority
Source: adapted from Isabel Valdes Paramount Publishing, Inc., AHAA Identity Project, GFK Roper. Lionel Sosa. Felipe Korzenny.
Understanding Hispanic Cultural Values
Latino American
Gender Roles Machismo - provide & protect familyMarianismo - sacred duty, sacrifice
Gender equality is prized.
Initiative
Como Dios quiera. However God wants.
Tread carefully. Avoid verguenza/embarrassment.¡Dale ganas! Give it your all!
God helps those that help themselves.Blow your own horn.
Take the bull by the horns.
Higher EducationGreatest Emphasis on High School
DiplomaCollege = Fear
Greatest emphasis on College Degree
Source: adapted from Isabel Valdes Paramount Publishing, Inc., AHAA Identity Project, GFK Roper. Lionel Sosa. Felipe Korzenny.
Pop culture - influencing & creating
•Recognize, celebrate and affirm cultural affiliations
• Creating their own culture• Inspired by the past but facing
the future• Spanish & English, American &
Latino: you can have it both ways
•Examples Plentiful• Ugly Betty, American Idol,
George Lopez, Nickelodeon, YouTube, MySpace
• LatinoLit - Barnes & Noble Spanish books grew 3X since 2000.
• Latino Theatre: In the Heights, Celia Cruz, Macho Men & The Women Who Love Them
Economic Impact
• Buying power of over $800 BILLION today....expected to reach $1.2 TRILLION by 2010! Source: Selig Center of Economic Growth
• 1990s to mid-2000s were financially strong for Latinos
• Disposable income and home ownership grew disproportionately among Hispanics, education rates improvedSource: Global Insight, 2008
• Latinos more likely to be cash consumers than total market so high proportion are debt-freeSource: CFSI, 2008
• Hispanics are price sensitive but willing to spend on value. 40% of unacculturated Latinos say they always look for a brand name vs 33% of Non-HispanicsSource: Simmons 2007/2008
Hispanic Shopper Insights
Total CPG Spending
Source: IRI Multi-Outlet Panel Data for 52 week ending 8/5/07Note: % indicates difference between Hispanic Basket and Non Hispanic Basket
Hispanics spending is 13% higher than Non-Hispanics
Dif = +13%
Dif = +1%
Dif = -2%
Dif = +37% Dif = -7%
Dif = +10% Dif = +2%
Dif = +21%
CPG Dollar Share by Channel Among Hispanic Consumers
Channel 2008 Share Share Indexvs. Total Panel
Point Changevs. 2007
Grocery 53.4 96 0.0
Supercenter 11.9 81 1.9
Mass 10.2 122 -0.7
Club 11.0 139 0.2
Drug 5.1 91 -0.1
Dollar 1.3 93 -0.1
Other(Specialty, Convenience) 7.0 106 -1.1
Source: IRI Consumer Network™; 52 weeks ending 3/9/08 vs. prior year
Mass & Club stores earn an above average share of Hisp. spending, but Supercenters are gaining ground.
•Each month, Hispanic shoppers make 26 grocery trips, 3 times greater than the General Market who makes 8.8 trips per month.
• Cycle through food faster, stretches the budget, proximity of small stores in urban areas.
• Most fill-in trips for baby products, frozen desserts/refrigerated treats, dairy, bakery, deli meats or cheeses
• Most quick trips (speed related) for pharmacy, health/beauty/personal, pet or car care, non-food items (books, clothes, toys) or beverages.
Retail budgeting behaviors
Source: Unilever, Winning the Hispanic Shopping Trip
Shopping Trips
Hispanics are somewhat more likely to shop early in the week
Source: Diary Data: Q. What time did you start shopping
Shopping TripsAfternoon and especially evening trips are a good time to reach Hispanics In-Store
Source: Diary Data: Q. What time did you start shopping
Product preferences change with acculturation
Source: 2006 ACNielsen
Categories Least Acculturated Most Acculturated
Beer
RTE Cereal
Toothpaste
Bodywash Soap
Fabric Softener
In-store Opportunities
Importance of Advertising
Hispanics are much more likely than General Market to be aware of specials before going to the store
Source: Diary Data: Q. If yes, where did you notice these advertised specials
Things that people always refer to when shopping in-store
HispanicNon-
HispanicsUnacculturated
MESSAGE/OFFERS AT THE SHELF 7.4% 5.7% 8.7%
IN-STORE SAMPLES 5.7% 6.5% 6.5%
ANNOUNCEMENTS IN STORE 12% 3% 14%
Source: Unilever, Winning the Hispanic Shopping Trip
Hispanics are more likely than non-Hispanics to always refer to offers at the shelf, in-store samples, and announcements in-store.
Hispanics are more attuned to value messages
Merchandising Mandates
• Know your audience• Level of acculturation• How they use your product• Brand lifecycle
• Use appropriate language• Avoid slang, geek-speak• Walter Cronkite Spanish• Translate the message not the
words
• Understand retailer requirements• Language guidelines• Acceptable formats• Pricing requirements• Space availability/display
standards
Insights into Action - 7UP Case Study
7UP Celebrity Chef Mobile Tour & Recipe Contest
• Challenge
• Drive frequency of 7UP 100% Natural Flavors new product innovation and stay ahead of competitive pressure.
• Insight• Unacculturated Hispanic women are heavy Lemon-
Lime CSD users, but were not aware that 7UP had undergone a innovation of 100% Natural Flavors in 2007.
• The natural message is highly compelling to Unacculturated Hispanic moms who want to feel they have made a better choice for themselves and their families without sacrificing taste.
• The use of fresh, natural ingredients is inherent to their culture.
7UP Celebrity Chef Tour - 360º Focus Market Integration
7UP Celebrity Chef Mobile Tour & Recipe Contest
• Merchandising Kits
• Standee
• Pole Sign w/info tearpads
• Rack Cards
• Door Posters
• Neckringer recipe booklets
• Danglers
• Results
• 100% Natural Flavors awareness doubled between a pre and post wave study (DPSG Qualitative Study, Sept. 2008.)
• Campaign markets experienced a +8% sales lift.
Questions?