multi-channel hispanic shopper insights

Meyers Research Center

Hispanic Shopper Close-Up A Syndicated Study

Final General Report January, 2013

Sample Highlights Deck

Hispanic Shopper Close-Up Study 2012

TABLE OF CONTENTS Page

Background

Research Objectives

Research Approach

Research Highlights

Executive Summary

Detailed Findings:

Shopping Overview

Shopper Profile

The Shopping Experience - Cross Channel Perspective

Detailed Findings for Your Category

Appendix – More Channel Details

Supermarkets

Hispanic Supermarkets

Mass Merchandisers

Warehouse Clubs

Drug Stores

Dollar Stores

Convenience Stores

Bodegas

2



BACKGROUND

According to the 2010 U.S. Census, just over 16 percent of the total population of the United States were of Hispanic or Latino origin, up 43 percent from 2000. Hispanics are the fastest growing segment (four times the growth of the total population from 2000 to 2010) and represent the nation’s largest minority group.1 By 2050, it is estimated that Hispanics will account for 29% of the population of the United States.2

Retailers and marketers have been reacting to the opportunities presented by this growing target audience (implementing Hispanic shopper-marketing programs, expanding the availability of Hispanic brands/brands from shopper’s home country, establishing retail outlets to cater to the needs of this segment). However, there remains a scarcity of information to help retailers and marketers understand the Hispanic shopper.

To this end, Meyers Research Center (MRC) launched the first wave of the Hispanic Shopper Close-Up Study in 2012. This research will provide valuable shopper insights into Hispanic consumers’ shopping behaviors, attitudes and decision-making patterns across eight key retail outlets including Supermarkets, Hispanic Supermarkets, Mass Merchandisers, Warehouse Clubs, Drug Stores, Dollar Stores, Convenience Stores and Bodegas.

This research will offer a powerful tool for shopper insights/category managers, channel and sales strategists, advertising/merchandising planners and retailers to effectively target this valuable and rapidly growing shopper segment.

3 1 – 2010 United States Census; 2-Pew Research Center



RESEARCH OBJECTIVES

The primary focus of this program is to develop a better understanding of Hispanic shopping behaviors and how these may differ by level of acculturation and from shopping behaviors of non-Hispanics.

Specifically, the research provides insights about various elements including:

What is the profile of the shopper by store format

What formats are being shopped for various categories

What are the key factors driving store selection

What are the underlying dynamics of the store visit by channel:

– What preparations are made prior to the visit

– What are destination categories, which categories are impulse buys

– What are the key in-store influencers

– Total amount spent/market basket

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RESEARCH APPROACH

Online interviews were conducted with Hispanics and non-Hispanics, age 18 and older, residing in the mainland U.S. Each shopper was asked questions about their most recent shopping experience (within the past 3 to 4 days) in up to two different trade channels.

The Hispanic sample included acculturated, bicultural, and unacculturated. Level of acculturation was determined by country of origin, years living in the U.S., language spoken both in and outside the home and cultural identification.

* Hispanics only. Note - data was weighted to reflect region and ethnic representation in the U.S. population as per the 2010 Census. Hispanic data was also

weighted to reflect heritage/country of origin. 5

•Hispanic (2,194)

•Acculturated (729)

•Bicultural (868)

•Unacculturated (597)

•Non-Hispanic (1,110)

Interviews by Class-of-Trade:

•Supermarket (559)

•Hispanic Supermarket (334)*

•Mass Merchandiser (395)

•Warehouse Club (524)

•Drug Store (451)

•Dollar Store (485)

•Convenience Store (670)

•Bodega (279)* Sample Highlights Deck


SELECTED RESEARCH HIGHLIGHTS

6

Hispanics Non-Hispanics

Where They Regularly Shop

Shopping Frequency

Key Store Selection Criteria

Planning the Store Visit

Acculturation Level

• Mass merchandiser, supermarket, drug, dollar

•Mass merchandiser, supermarket, drug

• Hispanic shoppers choose a store primarily based on convenient location.

• Planning is a key characteristic, with highest levels for warehouse clubs and supermarkets.

• Typically includes making a shopping list and clipping coupons.

• More use of shopping lists and/or store circulars among lesser acculturated and least use of coupons.

• Unacculturated shop the fewest channels.

• Acculturated least likely to shop ethnic stores.

• Shop all channels except drug and warehouse club 1x/week or more often.

• Acculturated visit most stores less often than bicultural or unacculturated.

•Shop dollar stores and warehouse club less often versus Hispanics.

• EDLP is more critical in store choice for acculturated vs. other Hispanic segments

• EDLP is less critical to non-Hispanics than Hispanics.

• Greater planning occurs for non-Hispanics than Hispanics for supermarkets, mass merchandisers, drug and convenience.

General Shopping Behaviors

Pre-Store Behaviors


Lowering Prices at Checkout

In-Store Behaviors

• Highly engaged in loyalty programs in drug and supermarkets.

•Are more involved than Hispanics in loyalty programs.

• Unacculturated display lowest participation in loyalty programs and are least likely to use coupons.

Impulse Purchasing

• High impulse purchasing across all channels. Price/promotion is a common trigger.

•Less impulse purchasing than Hispanics in selected channels.

• Impulse purchasing is most common among unacculturated.

DETAILED FINDINGS - SHOPPING OVERVIEW


Hispanic Shopper Close-Up Study 2012 8

Trade Channels Regularly Shopped* (Based on Total Respondents)

* Every 2 to 3 weeks or more often (except Warehouse Club-once a month or more). A, B,- Statistically significant @ .90 vs. Hispanic, Non-Hispanic A, B, C – Statistically significant @ .90 vs. Acculturated, Bicultural, Unacculturated Base: Total Respondents : Hispanics (n=2194), Non-Hispanics (n=1110) Q2. How often do you visit each of these stores?

• Hispanics are most likely to be regular shoppers of mass merchandisers, followed by drug,

supermarkets and dollar stores. More Hispanics than non-Hispanics are regular shoppers of dollar

stores, but fewer regularly shop at mass, drug and supermarkets.

• Unacculturated shoppers are much less likely than more acculturated (acculturated and/or bicultural)

to be regular shoppers of mass merchandisers, drug stores, supermarkets, clubs and c-stores.

69%

53%

53%

45%

44%

40%

26%

48%

46%

46%

52% B

79% A

59% A

74% AMass

Merchandiser

Drug Store

Supermarket

Dollar Store

Hispanic

Supermarket

Warehouse Club

Convenience

Store

BodegaHispanic [A]

Non-Hispanic [B]

Level of Acculturation

Base: Hispanic

Shoppers

[A] Acculturated

(729) %

[B] Bicultural

(868) %

[C] Unacculturated

(597) %

Mass Merchandiser 72 C 70 67

Drug Store 55 C 56 C 49

Supermarket 70 B,C 55 C 36

Dollar Store 51 53 51

Hispanic

Supermarket

32 51 A 48 A

Warehouse Club 40 48 A,C 41

Convenience Store 50 B,C 43 C 28

Bodega 21 30 A,C 25 A


Meyers Research Center

Hispanic Shopper Close-Up

A Syndicated Study

multi-channel hispanic shopper insights

Documents