Insights on Hispanic Shopping Behavior - Amazon S3s3.amazonaws.com/zanran_storage/ ·...

Copyright © Information Resources, Inc., 2007. Confidential and proprietary 1

Insights on Hispanic Shopping Behavior

March 13, 2008

Staci CovkinSenior Vice President, IRI

Copyright © Information Resources, Inc., 2007. Confidential and proprietary 2Hispanic Insights - AttitudeLink Analysis Oct’07

Insights on Hispanic Shopping Behavior

AgendaHispanics…Why They are a Great Opportunity

A Look into the Hispanic Shopping Basket

Hispanic Survey Insights

→ Recommended Actions for Retailers and Dairy Manufacturers


Hispanics – Fastest Growing Consumer Segment

15% of population todayIn 2010 – 1 in 6 will be Hispanic; 2020 – 1 in 5

Spending $800 BILLION today…expected to reach $1.2 TRILLION by 2010


US Hispanics by Country/Region of Descent

67%

9% 9%5% 4% 3% 3%

0%10%20%30%40%50%60%70%80%

Mexico CentralAmerica

Puerto Rico SouthAmerica

Cuba DominicanRepublic

Others

2/3 Of US Hispanics come from Mexico

Source: U.S. Census Estimates

Hispanics - Country of Origin


Why Hispanics are Such a Great Opportunity

Hispanics Love to Shop • Passion for shopping…spend more time

shopping• Spend more of their disposable income

Concerned with Health & Wellness• Heart Disease, Children’s Health/Diet &

Diabetes top their concerns• Use foods that are of “high quality”, “more

nutritious”, “100% fresh” and “healthy”


Hispanics are Family-Oriented and have Larger Families

Brand name is Very Important: Trust, High Quality, Customer Service

• Hispanics are more loyal for many categories

Why Hispanics are Such a Great Opportunity


How Do You Best Target Hispanics?

Spanish Branding, Coupons or In-Store Spanish Signage?

Heavily Influenced by Media…Feel Loyalty to Manufacturers &

Retailers that Advertise in Spanish

Targeted Ads?


How Do You Best Target Hispanics?

See Celebrities as Key Influencers: 3X more likely to Buy vs. General Population


A Peek Into the Hispanic Shopping Basket….


Hispanic Shopping Basket: ParametersThis study was conducted using IRI’s National Household Panel:

Year ending August 2007

Purchase data from the following outlets are reported:• Food - Drug• Mass - Super Center• Club - Dollar• Convenience

Conducted among:• Total Hispanics• Non-Hispanics• Unacculturated Hispanics: Spanish speaking (all/most of time)• Acculturated Hispanics: English speaking (all/most of time)


Total CPG SpendingHispanic spending Is 13% higher than Non-Hispanics

$176$299$336

$6,920

$980 $1,096 $1,071

$2,352

All Outlets Food Drug Mass SC Convenience Dollar Club

Hispanic

Hispanic vs. Non-Hispanic HHs

Dif = +21%

Dif = +13%

Dif = +1%

Dif = -2%Dif = +37% Dif = -7%

Dif = +10%Dif = +2%

Note: % indicate difference between Hispanic Basket and Non Hispanic BasketSource: IRI Multi-Outlet Panel Data for 52 WE August 05, 2007


Total CPG Spending Acculturated Hispanic spending is higher than Unacculturated Hispanics

in all outlets except Convenience (2X) and Dollar

$191

$7,338

$2,561

$362

$1,056 $1,173

$241 $164$479

$287

$6,267

$898 $1,086 $1,106

$1,983

$1,103

All Outlets Food Drug Mass Supercenter Convenience Dollar Club

Unacculturated Hispanic

Acculturated Hispanic

Total $ per HH

Source: IRI Multi-Outlet Panel Data for 52 WE August 05, 2007

Index

12411789100148106110120Acc vs. Non

125136176931268486102Unacc vs. Non


$95.99

$19.66$17.51

$46.47 $41.91 $47.52$54.92

$24.18


Hispanic

Average Market Basket $ Size Hispanic vs. Non Hispanic

+ $2.50+ $5.08

+ $1.00

+ $8.54

NOTE: Boxes indicate difference between Hispanic Basket and Non Hispanic Basket Source: IRI Multi-Outlet Panel Data for 52 WE August 05, 2007

+ $6.27+ $0.92

+ $1.34 + $4.80

Hispanics have a larger basket ring across all channels

Dollars Per Trip by Channel


Shopping Trip FrequencyHispanics make 3 more shopping trips at Mass and 3 less at Grocery

20.010.1

11.215.220.6

56.1

148.9

13.9


Hispanic

Average Number of Trips Per YearHispanic vs Non-Hispanic

Dif. = +0.8


Dif. = -2.7

Dif. = --0.8 Dif. = +3.3 Dif. = -1.7 Dif. = +0.3Dif. = -0.9

Dif. = +1


9.4

9.9

11.211.411.612.012.413.114.915.7

20.821.5

28.130.6

100.0

11.010.3

8.8

9.8

9.3 BOTTLED WATER

MEXICAN FOODS

RFG SALAD/COLESLAW

LUNCHEON MEATS

VEGETABLES

CRACKERS

COOKIES

BOTTLED JUICES - SS

FZ DINNERS/ENTREES

YOGURT

SOUP

RFG JUICES/DRINKS

RFG FRESH EGGS

COLD CEREAL

NATURAL CHEESE

SALTY SNACKS

CARBONATED BEVERAGES

FRESH BREAD & ROLLS

MILK

Total CPG

Ranked on % Trips Including Category Hispanic to Non-Index

132

259

96

113

101

90

106

117

95

102

98

125

102

110

102

108

109

101

100

100

($xx) = spending gap between Hispanic population and the Non Hispanic Source: IRI Multi-Outlet Panel Data for 52 WE August 05, 2007

Top 20 Categories in GROCERY Hispanic Basket


8.5

8.9

9.69.810.110.210.512.512.613.1

19.720.420.721.5

100.0

9.39.0

8.3

8.7

8.4 SOAP

BOTTLED WATER

BOTTLED JUICES - SS

LUNCHEON MEATS

TOILET TISSUE

CRACKERS

YOGURT

FZ DINNERS/ENTREES

TOTAL NON-CHOCOLATE CANDY

SOUP

RFG FRESH EGGS

COOKIES

TOTAL CHOCOLATE CANDY

NATURAL CHEESE

COLD CEREAL

SALTY SNACKS

FRESH BREAD & ROLLS

MILK


Total CPG

Ranked on % Trips Including Category Hispanic to Non-Index

125

101

96

99

107

79

98

89

103

98

100

94

87

101

95

104

98

90

110

100


($0.01)

($0.12)

$0.27

$0.11

$0. 35

($0.25)

($0.03)

($0.18)

($0.08)

($0.06)

$0.08

$0.00

$0.37

($0.01)

($0.19)

$0.24

($0.17)

$0.26

($0.50)

($0.83)

Top 20 Categories in SUPERCENTER Hispanic Basket


6.5

6.8

7.88.08.18.78.99.19.711.3

13.916.117.117.9

100.0

7.66.8

6.4

6.7

6.5 COOKIES

FZ DINNERS/ENTREES

SNACK BARS/GRANOLA BARS

COFFEE

RFG JUICES/DRINKS


VITAMINS

SNACK NUTS/SEEDS/CORN NUTS

LAUNDRY DETERGENT

CRACKERS

TOILET TISSUE

RFG FRESH EGGS

COLD CEREAL

BOTTLED JUICES - SS

NATURAL CHEESE

SALTY SNACKS

FRESH BREAD & ROLLS

MILK

BOTTLED WATER

Total CPG

Ranked on % Trips Including Category:Hispanic to Non-Index

114

115

113

106

126

120

76

104

123

96

138

109

110

130

122

98

124

87

155

100


($0.21)

$0.04

$1.25

$0.07

$0. 21

$0.24

$1.04

($0.16)

($0.84)

($0.01)

($0.90)

$0.09

$0.12

($0.17)

($0.17)

($0.30)

$0.22

$0.99

($1.07)

$2.34

Top 20 Categories in CLUB Hispanic Basket Cheese is #5 and is purchased 22%> than Non-Hispanics


1.7

2.3

2.62.6

4.04.24.54.5

6.69.1

11.012.0

25.334.0

1.7

2.1

1.6

2.52.5

TOBACCO PRODUCTS

GUM

SPORTS DRINKS

COOKIES

FZ NOVELTIES

TOILET TISSUE


BAKERY SNACKS

FRESH BREAD & ROLLS

BOTTLED WATER

TEA/COFFEE READY-TO-DRINK

PASTRY/DOUGHNUTS

CAT FOOD


BEER/ALE

MILK

SALTY SNACKS


CIGARETTES

Ranked on % Trips Including Category: Hispanic to Non-Index

43

131

163

97

188

1058

85

123

79

150

242

165

1,122

132

136

68

137

142

80


Top 20 Categories in CONVENIENCE Hispanic Basket


8.3

8.6

9.39.39.69.79.8

10.711.1

12.813.7

18.318.718.9

19.7

8.98.8

7.9

8.5

8.1 FZ DINNERS/ENTREES

HOUSEHOLD CLEANER

DOG FOOD

YOGURT

BOTTLED JUICES - SS

BOTTLED WATER

CRACKERS

TOILET TISSUE

SOAP

SOUP


RFG FRESH EGGS

NATURAL CHEESE

COOKIES


COLD CEREAL

FRESH BREAD & ROLLS


SALTY SNACKS

MILK

Ranked on % Trips Including Category: Hispanic to Non-Index


122

89

105

99

106

80

111

138

102

99

108

102

99

90

106

95

101

105

95

Top 20 Categories in WAL*MART Hispanic Basket


Hispanics – Milk Product Affinity

100 10086 89

109122

99

143151

106

87100 99

112

86

101 10195 94

197

121108

100

123 128

0

10

20

30

40

50

60

70

80

90

100

TOTA

L M

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WH

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MIL

K

WH

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WH

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LO

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25

50

75

100

125

150

175

200

Inde

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Non

His

pani

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% HH Buying Index to Non Hispanics

Hispanics have a greater affinity for Whole White, Strawberry, Vanilla, Branded Flavors, Lactose Red/Free Milk and Single Serve products

Whole WhiteStrawberry

Vanilla BrandedFlavors

Lactose

Single Serve


How does a Dairy Manufacturer Take These Insights and Collaborate with Retailers to Increase Hispanic Spend…..?

31% Milk

16% NaturalCheese

28% Fresh

Bread & Rolls

Salty

Sna

cks

Gro

cery

Item

s

Dia

pers

& P

aper

Pro

duct

s

Hou

sew

are/

Har

dwar

e

Mag

azin

es

Gro

cery

Item

s

Gro

cery

Item

s

Gro

cery

Item

s

22% Carbonated Beverages

21% Salty

Snacks

But It’s Not That Simple…


A Peek at Hispanic Attitudes, Opinions & Motivations…


Hispanic Survey: Parameters

Fielded: September 2007 via MailConducted among:

• Unacculturated Hispanics: Spanish speaking (all/most of time and prefer it), live in Hispanic communities, spend significantly more time reading Spanish magazines/newspapers and watching Spanish TV

• Acculturated Hispanics: English speaking (all/most of time and prefer it)• Non-Hispanics


Thinking about the store where you shop most often, what are

the reasons you prefer this store?

Store Preference“Close to home” was most important to all Hispanics; “has good sales”

matter most to Unacculturated Hispanics

80%

85%

67%

86%

76%

72%

It has good sales

It is close to my homeAcculturated HispanicsUnacculturated HispanicsNon-Hispanic

*

**


Thinking about the store where you shop most often, what are

the reasons you prefer this store?

Store Preference“Good quality produce” and “Carries products from my home country”

were major differentiators for the Unacculturated group

55%

63%

16%

55%

56%

7%

It carries products from myhome country

It has a good quality producedepartment

Acculturated Hispanics

Unacculturated Hispanics

Non-Hispanic

*

*


Thinking about the store where you shop most

often, what are the reasons you prefer this

store?

Store PreferenceIn addition, having employees that speak Spanish and bilingual signs

were also key differentiators

23%

48%

7%

12%

2%

3%

It has bilingual signs

The employees speakSpanish

Acculturated HispanicsUnacculturated HispanicsNon-Hispanic

* Indicates statistical significance

*

*


12%

70%

21%

60%

29%

52%

Completely/SomewhatDISAGREE

Completely/SomewhatAGREE



Non-Hispanic

Please indicate how strongly you agree or

disagree with:I have a budget I

usually stick to when I shop


Unacculturated Hispanics are more likely to stick to a budget

Budgeting


14%

68%

26%

58%

41%

43%

Completely/SomewhatDISAGREE

Completely/SomewhatAGREE



Please indicate how strongly you agree or

disagree with:I usually take my kids

shopping with me.

Shopping With KidsUnacculturated Hispanics are more likely to take their kids shopping

with them



Regarding your shopping habits for Dairy, would you say you

choose between 1 or 2 products, buy whichever on sale/least

expensive, or always buy the store brand?

Brand Loyalty - Dairy (Milk, Cheese, Yogurt)

44%

9%

30%

60%

11%

42%

46%

13%

42%

Always buy the storebrand

Buy whichever brand ison sale/least expensive

Choose between 1 or 2of my favorite name

brands in that category



Non-Hispanic

*

*

*

Loyalty skews towards the more Unacculturated Hispanics


Buying Influences - Beverages

7%

12%

13%

14%

14%

16%

26%

29%

61%

10%

2%

27%

16%

11%

59%

20%

23%

36%

9%

41%

6%

4%

12%

11%

11%

28%

19%

19%

29%

24%

55%

3%

4%

Celebrity endorsements

Internet advertising

Radio advertising

Newspapers and magazines

Recommendation from a friend/family member/doctor

TV advertising

Child requesting item

Free samples

Special display in the store

Coupons

Past experience with the brand


What are the top things that influence you to purchase a brand

in the Beverage category?


**

**

*

*

*

*

Unacculturated Hispanics are Much More Influenced by Displays, TV Ads and Radio Ads When Purchasing Beverages


68%

22%

35%

31%

29%

35%

Completely agree

Somewhat agree


*

Regarding the cooking and eating habits in your family,

please indicate how strongly you agree or disagree with: I cook for their family to show

that they love them.

*

*

Cooking for Family


Unacculturated Hispanics cook for their families to show that they love them


62%

28%

15%

41%

16%

24%

Completely agree

Somewhat agree



Please indicate how strongly you agree or disagree with:

I usually eat traditional dishes from my home country

*

*

Traditional DishesUnacculturated Hispanics usually eat traditional dishes from their

home country


Flavor PreferenceNot surprising, Unacculturated Hispanics prefer Spicy Snacks;

interestingly, snacking preferences were much more similar amongAcculturated Hispanics and Non-Hispanics

38%

40%

57%

20%

30%

58%

26%

38%

26%

39%

45%

35%

60%

18%

34%

Sour (chutney, Tabascosauce, hot pepper &

vinegar sauce)

Savory (chili-cheese,BBQ, salsa)

Spicy (barbecue chips,salsa, buffalo chicken)

Fried foods (chickennuggets, French fries,

onion rings)

Cheesy (cheese nips,cheese sticks, cheese

flavored chips)


Thinking about your snacking preferences, please indicate which of

the following flavors you usually prefer as a snack.

*

*

*

*


*


8%

27%

55%

1%

1%

1%

26%

72%

2%

4%

7%

31%

57%

2%

8%

Once a month or lessoften

2 to 3 times a month

About once a week

2 to 3 times a week

Almost everyday



Non-Hispanic


How often do you or someone in your family do the following?

*

*

*

*

*

Fresh Fruits and Vegetable Consumption3/4 of Unacculturated Hispanics eat fresh fruits and vegetables daily


37%

21%

7%

9%

31%

51%

13%

17%

35%

34%

14%

26%

Rarely/Never

Half of the time

Most of the time

All of the time



Non-Hispanic


Please indicate how often you do each of the following when

you select food products for yourself/your family.

*

*

*

*

*

Packaging PreferenceHispanics look for phrases Like '100% Juice', ‘Fresh', and ‘Real' on

food packages


Spanish-Language Media Consumption

38%

16%

13%

3%

5%

11%

20%

61%

11%

21%

More than 6 hours per week

4 to 6 hours per week

1 to 3 hours per week

Less than 1 hour per week

Do not read Spanish-language

magazines/newspapers

Acculturated HispanicsUnacculturated Hispanics

On average, how many hours each week does your family as a whole spend reading Spanish-language

magazines/newspapers?

*

*

*

*


Unacculturated Hispanics spend significantly more time reading Spanish-Language magazines/ newspapers


43%

16%

2%

1%

5%

14%

33%

47%

6%

34%

8 or more hours per day

4 to 7 hours per day

1 to 3 hours per day

Less than 7 hours per week

Do not watch Spanish-language television

Acculturated HispanicsUnacculturated Hispanics

Please indicate the number of hours you and your family members spend

watching Spanish-language television.

*

*

*

*

*


Unacculturated Hispanics spend significantly more time watching Spanish-Language Television

Spanish-Language Media Consumption


What are the Recommended Actions for Dairy Marketers?


Recommendations for Today’s Marketers

Hispanics are the fastest growing consumer segment and, on average, they spend more than Non-Hispanics on CPG

• Driven by increased spending in Mass Mdse, Club, Dollar and Convenience channels

Acculturation has a major impact on purchasing and consumption

• Understanding how important their heritage is and how to present a compelling targeted marketing message is critical to success

• Capturing their purchasing early on in the acculturation process could mean long-term loyal consumers


Recommended Actions to Increase Hispanic Spending - Retailers

• Retailers– Should carry products from their home country– Have greater facings of items used to cook from

scratch in highly Hispanic neighborhoods– Have bilingual employees– Signage in Spanish– Make sure fruits, vegetables and meats are of high

quality

• Marketplace execution should be multi-faceted and focus on channel and local assortment


Recommended Actions to Increase Hispanic Spending –Dairy ManufacturersManufacturers should:

Allocate more marketing dollars to Spanish Media Vehicles –

• Spanish -language TV• Magazines• Newspapers • with lower investment on Coupons

Focus on Health & Wellness benefits• Working to capitalize on your existing H&W

benefits• Healthy cooking promotions/ads


Recommended Actions to Increase Hispanic Spending -ManufacturersManufacturers should:

Leverage the opportunity for kid-targeted products

Consider how to best fit Dairy products into Hispanic lifestyles

Consider co-promotions with Cheese, Milk, Ice Cream and Yogurt which all build on the equity of the Dairy products.

Determine if there are opportunities for new products and line extensions that may play upon existing benefits


Entrance/ExitC

old

Bee

r

R

efrig

erat

ed S

oda,

Jui

ce,

& D

iary

Pro

duct

s

Checkout

Cigarettes

Lottery Tickets

Display

Display

Deli/Soup

Prepared Sandwiches, Salads,

Hand-held Meats Beverages

Houseware/Hardware Items

Diapers & Paper Products

Magazines

Salty Snacks

Grocery Items

Grocery Items

Display

Display

Display Coffee

32% Cigarettes26% Carbonated Beverages

12% Salty

Snacks

12% Milk

8% Beer/Alcohol

Display

Manufacturers and Retailers Need to Collaborate Example – Look for opportunities to prominently display and (co) - promote the

brands that will further increase Hispanic spending


Create a “Shopping Experience” Hispanics Identify with…

Most Appealing

Brands

Manufacturers and Retailers Need to Collaborate

…and matches the Hispanic lifestyle


Muchas Gracias!

!

For more information on IRI services referenced in this presentation please visit:

http://us.infores.com/page/manufacturers/consumer_understandingor contact [email protected] or your IRI representative

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