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Creative Alliance presents "A Report from the Latino Marketing Frontlines." Brown-Forman Lunch & Learn. June 21, 2012.TRANSCRIPT
A Report from the Latino Marketing Frontlines
Brown-FormanLunch & LearnJune 21, 2012
I. Agency Snapshot
II. Today’s Millennial Latino Consumer
III. Latinos and Spirits
IV. Millennial Consumers – Our Experience with KFC
Agenda
Agency Mission Statement
To energize a client’s business and build lasting relationships through innovative ideas
that inspire, motivate, unite, brand and sell…
…And that goes for Hispanic, too!
Agency Snapshot
• Louisville-based agency with professionals from across the country
• Category strengths include multi-unit retail, healthcare, entertainment
and education
• Capitalized billings have increased over the past 25 years to $180,000,000+
• One of the top 100 agencies in the U.S.
• The agency's key strength is its people:
– Long tenures
– National-caliber expertise in all agency disciplines
63
Multi-Unit Marketing Experts
25-year History of Driving Multi-Unit Business Impact:– At the local level– Cross-functionally: Building brands and selling brands/services– Year-over-year same store sales increases– Traffic-driving strategies– Bottom-line efficiencies– Compelling consumer touch points– Top down strategy meets bottom up reality; problem solving and
creativity– Partnerships and relationships matter
By the Numbers!
Client Corp Units
Franchisee Units
Total Units
DMA Markets
A&W 0 769 769 143
CHS 131 0 131 68
Hancock Fabrics 275 0 275 118
KFC 1,189 4,209 5,398 202
LJS 0 1,510 1,510 169
Longhorn Steakhouse 312 0 312 72
Einstein Brothers Bagels 443 81 524 31
Mr. Clean Car Wash 2 14 16 3
NPC International (Pizza Hut) 0 1,200 1,200 75
Total 2,352 7,783 10,135 ALL
Our Clients
Over 150 Years of Collective Experience in the Category
TUACA APPLETON ESTATE JAMAICA RUM
JEFFERSON’S BOURBON
A Vibrant Segment!
GenYLA
Smithsonian magazine, August 2010Lalo Alcaraz, Chicano cartoonist, comic strip and illustrator of the book Latino USA.
Gen
YOUNG = Members of the global youth community
LATINO = Specific to country of origin
AMERICAN = Part of the U.S. culture
YLA
GenYLA
Theyre interchangeable
Today(2012)
Source: US Census Projections 2010-2020
Teens are Hispanic
1in5of the total Hispanic
population is under 25
Half62%of all U.S.
Hispanics are U.S. born
Fueled by 18-
24-year- olds.
of all 18-34-year-olds will be Hispanic
1/466%of Teens will be
Hispanic
Tomorrow
(2020)
GenYLA
GenYLA
I want a frappuccino with whipped cream
un café con leche
Language Fluidity
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER 2010 PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER, 2009
70%use “Spanglish”
HOME WORK SCHOOL
w/ FRIENDS w/ HISPANIC RELATIVES
39% Spanish
80% English
55% Spanish
74% English
55% English
GenYLA
Spanish is here to stay, even among YLAs.
Language
SOURCE: NIELSEN MEDIA RESEARCH 2010-11 UEs; HISP P-18-34 LANGUAGE MARKET BREAKS.
74% of YLAs
speak some
degree of
both Spanish
and English.
The majority of Young Latinos are fluent in English and Spanish.
Mostly English
Only English
Only SpanishSpanish & English
Mostly Spanish
GenYLA
It’s not a third world. Gen YLAs slide
back and forth between two
cultures.
GenYLA
Retro Acculturation
Driven to rediscover their heritage
A Latino reawakening
Main triggers are life’s stages
Self-benefiting
Genuine cultural curiosity
From George... to Jorge
Source: Beyond Demographics Latino American Identity Segmentation 2010
GenYLA
Country of Origin 52%American 24%Hispanic / Latino20%
Term Gen YLAs First Use to Describe
Themselves:
culture
is the traditional unifier
and easiest to connect
to the varied origins.
SOURCE: PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER, 2009GenYLA
Highly Embracing Their Heritage
Over one-third of Gen YLAs identify with both their Latino and American cultures.
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER, 2010
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER, 2010GenYLA
The World of the Social YLAWhich of the following best describes your close friends whom you
regularly spend time with?
Mexicanos en Miami
GenYLA
SOURCE: MUN2 DIGITAL STUDY DECEMBER 2010
The Always-Connected Generation
For Gen YLAs technology is the new passport.
87%stream video content on the internet
73%stream/ listen to music on the internet 63%
want theirfriends to beable to reach them 24/7
61%own a
gaming system
94%internetat home
87%own a mobile phone
53%own aniPod or
MP3 player
73% own a laptop
What they have.What they do.
GenYLA
What They Listen To Reflects Them
Gen YLAs Listen To A Wide Variety Of Music
SOURCE: PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER 2009
31%
29%
40%
GenYLA
61%
TEXTING
37%DO SCHOOL WORK
80%EAT
Activities Performed While Watching TV
SOURCE: MUN2 LANGUAGE STUDY DECEMBER 2009
33%INSTANT MESSAGING60%
TALK ON THE
PHONE
50%SURF THE WEB
32%BROWSE SOCIAL
NETWORKS
44%PERSONAL EMAIL
28%WORK /SCHOOL-
RELATED EMAIL
YLAs do it all at the
same time.
23%
ONLINE
GAMES
TV Still Reigns Supreme Among The Younger Set
Gen YLAs Consume Both Spanish And English TV Equally
SOURCE: Nielsen Media Research NTIH Live+ Same Day 9/20/10 – 1/30/10 M-S 7PM-11PM
GenYLA
What They Watch Reflects Them
GenYLA
Speaking In Either Language…Advertisers Are Taking Notice
Taco Bell Commercial
Pitbull “Dale…Let’s Get the Party Started”
Bud Light commercial
Diet Pepsi adBurger King ad
A stampede of liquor brands are going to TV as marketers seek broad awareness for product launches or to build new buzz on older brands.
TV Advertising: Currently 34% of all media spend by category versus 23% in 2005.
Cable still gets the bulk of the spend.
41
Explosion In Hispanic TV Makes For Right Time To Invest
41
# of National Hispanic Markets
Prior to 1996 6
1998 10
2000 25
2002 33
2004 56
TODAYTODAY 75+75+
# of National Hispanic Markets
Prior to 1996 6
1998 10
2000 25
2002 33
2004 56
TODAYTODAY 75+75+
Deportes (24hr)
Noticias (24hr)
(Fall ’12)
TOMORROW
# of National Hispanic Networks
+
Sources: US Census PJ; Global Insight, Inc. Hispanic Market Monitor 2010
Why it matters$827B in annual buying power.
$1 Trillion by 2015.
YLAs = 1/3 of all U.S. Hispanics.
YLAs are re-defining America’s politics, consumption, media and pop culture.
More & more iconic brands are targeting them.
GenYLA
LET’S TALK ABOUT THESE LATINOS AND THEIR ATTITUDES AND USAGE
AROUND SPIRITS
Looking at Vodka, Tequila and Whiskey
Vodka: The Biggest Selling Spirit And Commands the Most Market Share
But not as popular yet withthe Hispanic Segment.
Mintel/Experian Simmons 2011 NHCS44
U.S Born Hispanics Most Likely To Be Vodka Drinkers
Mintel/Experian Simmons 2011 NHCS
The YLA’s Seen as a Good Source For New Vodka Drinkers
Mintel/Experian Simmons 2011 NHCS46
Those Who Are Bilingual Consume the Most Tequila
Mintel/Experian Simmons 2011 NHCS
Whiskey: Little Penetration With Hispanos
Mintel/Experian Simmons 2011 NHCS
The Latina Spirits Drinker
49Base: 401 Hispanic adults aged 21+ who drink spirits and have internet access*Small sample size, used for illustrational purposes only. Source: Mintel
Mixed with juice
Mixed with soda/soft drink
Used in a specialty cocktail (i.e. Margarita, Martini, etc.)
On the rocks/with ice
As a shot
Neat/straight up
Mixed with tonic
Mixed with energy drinks
With water
In coffee
Mixed with milk/eggnog
Other
0 10 20 30 40 50 60 70 80
Ways in which consumers drink hard alcohol/distilled spirits, by gender and age, November 2011
Women, 35-54 Women, 21-34 Men, 55+* Men, 35-54 Men, 21-34
%
An example of our process and innovation designed to maximize efficiency and generate
return on investment targeting the Young Adult Hispanic Consumer
CaribLA is the Second Largest YRI FBU
• 47 Countries (We supported 34)• 5 Languages• 290MM Urban Population
• 63% of Population under 30 Years of Age
• Second Largest YRI FBU $ 1Billion in Sales• KFC is + 70% of CaribLA Total Net Sales
St.. Lucia
Aruba
Cuba
JamaicaHaiti
Dom. Rep.
Puerto Rico
Martinique
Curacao
Guadeloupe
CARIBBEANBahamas Islands
US VI Anguilla
Barbados
Grenada
Trinidad / Tobago
NetherlandsAntilles
St.. MartinAntiguaBarbuda
Anguilla
St. Kitts / NevisDominica
St. Vincent / the Grenadines
French
GuianaVenezuela
Colombia
Peru
Bolivia
Paraguay
Uruguay
Argentina
Ch
ile
Guyana
Surinam
e
Brazil
SOUTH AMERICAPanama
Nicaragua
HondurasGuatemala
Belize
CENTRAL AMERICA
Ecuador
Costa Rica
It Started With International
How We Did It!
Recommended targeted communications to reach the young adult (21-34) consumer:
- Included advertising associated with new product launches
- Engaged new properties and tie-ins with movie studios
- Worked with the NBA
Enlisted To Generate Marketing Momentum & Sales
The Bottom Line..? The Bottom Line!
We Translated Success from International to Domestic, Too!
Leveraging insights gained from our international experience, we engaged our client to target YLAs with campaigns to support new products.
2010 Q 1 2010 Q 2 2010 Q 3 2010 Q 4 2011 Q 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
46% 44%42% 40% 42%
KFC Church's Popeyes Boston Market Chick-fil-A
2010 Q 1 2010 Q 2 2010 Q 3 2010 Q 4 2011 Q 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
52%56%
34%
47%
83%
KFC Church's Popeyes Boston Market Chick-fil-A
KFC Enjoys Highest Share Increase in its History
Hispanic Dollars Working Very Hard for the Brand!
General Market Share of Chicken Chain Occasions
National Hispanic Market Share of Chicken Chain Occasions
Don’t come to me with any of your ideas, I have no time, can’t you see I’m in the middle of a battle?
And We’re Right Down the Street, Too! Creative Alliance
Brown Forman
Thank you! İSalud!
For questions or additional information, please feel free to contact Debbie Scoppechio at
502.214.2969 or [email protected].
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