where commerce & culture collide hispanic insights popai university - on the web january 22,...
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
TotalHispanic 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 MarketsStates 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 BornIncludes both foreign and U.S.
bornU.S. Born (2nd & 3rd
generations)
Typically married, less education, rent vs. own
Skews slightly femaleMore 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 family
Marianismo - 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 Education
Greatest 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 ShareShare Index
vs. Total PanelPoint 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
CategoriesLeast
AcculturatedMost
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-
storeHispanic
Non-Hispanics
Unacculturated
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?
