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Marketing Pork to the Hispanic Market
Provided by:National Pork Board
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TopicsWhy the Hispanic Market?Meal Planning and ShoppingHispanic’s Perceptions of PorkNPB Hispanic CampaignRetail Case Study
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Why the Hispanic Market?
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Why the Hispanic Market?Roughly 14.7% of the entire U.S. population
– 43.5 MM consumersLucrative grocery store customers
– 87% more likely to shop 5+ times/week; shop 2-4 stores on average
– $49 billion spent on groceries; buy 23% more than non-Hispanics
$105/wk vs. $85/wk general market
Young market – 51% of Hispanics are between 18-49 (22 MM)– 25.4 median age vs. 35.8 for general market
Larger HH size– 3.5 vs. 2.7 in general market
Strong purchasing power– $575 billion annually
Purchase more pork than general market
Source: Synovate 2004; U.S. Bureau of the Census 2000; Yankelovich 2000; FMI 2002
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2004 2020
4.7% 6.0%
12.9% 12.0%
14.7% 21.0% (80 MM)
Total Hispanic Pop. 2004 = 43.5 MMTotal Hispanic HHs 2004 = 12.5 MM
ASIAN
NH-BLACK
HISPANIC
As % of Total U.S. Population
Expected to Reach 154 MM (30% of total pop.) by 2050!!
Growing 10X Faster Than General Market
Source: 2004 SRC U.S. Hispanic Market
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Highly Targetable: Top 12 Hispanic DMAs Account for 60% of Hisp. Market
Los Angeles17.9% Phoenix
2.8%
Fresno2.1%
San Antonio3.0%
Dallas3.5%Houston
4.2% Miami4.2%
New York9.9%
Chicago4.2%
San Francisco3.4%
San Diego2.1%
McAllen/Brownsville2.6%
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70% Are Born Outside the U.S., Creating a Common Trait That Most Hispanics Share … Spanish
Born in U.S.
Foreign Born
30%
70%
Speak Spanish
Speak English Only
91%
9%
Source: SRC U.S. Hispanic Market
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$15.9B – $17.0B = $1.1B
36%
4%
($1.5B - $2.1 B) ($14.4B - $14.9B)
Hispanic Contribution to Growth1994-1999
Growth in PorkExpenditures
1994-1999
Hispanic Non-Hispanic
Hispanic$549.5 M
50%
General Market
$543.3 M50%
Source: Bureau of Labor Statistics, CES 1994/1999
Hispanic Market Contribution to Pork Expenditures Growth is Huge
Growth in PorkExpenditures
1994-1999
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Meal Planning and Shopping
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Meal Planning / Shopping
Few moms work with lists; most decide the night before or at the store.
Culturally accommodating care-takers.
Cook home Monday-Friday; eating out mostly on weekends; mostly fast food!
Less apt to seek out recipes than mass market.
Source: National Pork Board Hispanic Focus Groups
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Meal PlanningDistribution of annual household food expenditures (at home vs. away from home):– 65% of Hispanics eat food at home vs. 57% in general
marketFoods made from scratch are viewed as being more nutritious than prepared food– 44% of Hispanics agree and 42% of Hispanics strongly
agree with that statement for a total of 86%.At-home meal consumption:– 67% prepared mainly from scratch ingredients– 11% fully prepared, ready-to-eat from grocery store– 9% take-out from restaurant, either fast food or full-
service– 6% prepared mainly using convenience ingredients– 6% other
Sources: FMI
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Variety of Stores Shopped Weekly
Price Club4%
Discount (Wal-Mart)
9%
Convenience (7-11)12%
Department Store
5%
Grocery Store/Supermarket
37%
Drug Store6%
Bodega/Hispanic Food
Store 27%
Sources: Yankelovich
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Shopping the Meatcase
While 1/3 of Hispanic shoppers prefer Hispanic stores/butchers due to:
Fresher, more variety and availability of special “Latino”cuts
Special trimming / packaging instructions
More personal attention; feels like home
Regular chain stores are the lead meat purchase outlet, being preferred by 2/3
Many consumers believe they have fresher meat and are cleaner / more hygienic.
Source: National Pork Board Hispanic Focus Groups, Phone Survey
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Hispanics’ Attitude Towards Pork
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Perceptions of Pork
Hispanic consumer is in a different place than general market
ALREADY PREDISPOSED to eating pork86% are pork consumers
Considered to be “the most delicious.”
Top 3 pork attributes:-Delicious -Easy to prepare -Good value
Used as main ingredient in traditional recipes; considered a mainstay of Hispanic culture
Source: National Pork Board Hispanic Focus Groups, Phone Survey
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Top 10 Pork Cuts Served Regularly
5%
5%
6%
6%
9%
13%
19%
23%
30%
53%
Feet
Chorizo
Skin
Spine/Back Bone
Ham
Shoulder
Carnitas/Cubes
Hocks
Ribs
Chops
Source: National Pork Board Hispanic Phone Survey
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Barriers to Consumption
Despite the love affair with pork, major misperceptions serve as barriers to increased consumption
Misperceptions differed greatly from general market’s concerns & attitudes
Underscores need for different approach in marketing
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Food Safety Concerns
Quality and care of livestock below U.S. standards in Latin America / homeland
Fear of trichinosis and other illnesses taken to the extreme
Consciously limit intake of pork to minimize risk
“Love affair” similar to the mass market’s attitude toward chocolate
Source: National Pork Board Hispanic Focus Groups
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Nutritional / Diet Concerns
Health concerns prevalent in Hispanic market
Genuinely surprised to learn of its parity with chicken
Have been instructed by their family doctors to avoid pork; eat more white meat
No unanimous understanding of red & white meat classifications
Reflects a growing awareness of the ties between diet and health, but still trailing mass market
Source: National Pork Board Hispanic Focus Groups
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“Quality” and emphasis on “U.S.” addresses safety issues head onLeverage both Familiarity/Emotion and Science with a strong message of safety and nutritionLabels with calorie & fat comparisons helpfulCoupons also liked, for items such as paper goods, tortillas, rice, beans, condiments, etc.Hispanic female nutritionist desirable as spokesperson -- not a celebrity!
Key Takeaways
Source: National Pork Board Hispanic Focus Groups
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NPB Hispanic Campaign
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Strategies
Build a consistent and relevant brand identity for pork at every point of contact with the Hispanic consumer
Establish an educational and informational platform for the Hispanic consumer
Develop and launch a push-pull integrated marketing communications program, which includes:
- Public Relations/Dietician Spokesperson- Advertising (Radio, Print, Outdoor)- Retail Driven Promotions/Events- Bilingual In-store Signage/Labeling/Recipes
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Critical to Elevate Pork’s Image
Tagline:“Pork is Good”
- Safe - Nutritious - Delicious
Brand Name:“U.S. Pork Quality”
– Seal of approval / trusted brand name
– Assurance associated with being U.S. made
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Timeline• In 2002, developed campaign to emphasize the
positives about pork and hit misperceptions head-on
• In 2002, ran radio spots, billboards, and print ads in three key markets – L.A., Houston, and Phoenix
• In 2003, added Miami and Chicago• For 2004, a total of 12 markets are targeted, using
television, billboards, and print ads, combined with PR and Retail Marketing components
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Target
Hispanic Females 18 – 54
Primary Household Shopper (Almost always the mother)
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Target PsychographicsValues family, a focus on children, and celebrating traditions (holidays, music and food).
Prefers advertising in their native Spanish language.
Feels it is important to celebrate holidays and cultural events related to their Hispanic heritage, in order to maintain traditions.
Utilizing the Spanish language is another important way of preserving ones culture.
Extremely brand loyal.
Extra care and attention to physical appearance.
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Phase 1 – Debunking the Myth
Developed “El cerdo es bueno” slogan and “Calidad U.S. Pork” brand.
Launched integrated educational Hispanic program.– Advertising– PR– Retail Marketing
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Where we are today!The National Pork Board’s Hispanic efforts are entering their fourth year.
Awareness of “El Cerdo es Bueno” is 41%*
Educational platform has been successful at achieving the desired goals.
Revitalization of creative is now necessary to further enhance and establish pork’s image.
*2004 National Pork Board Tracking Study.
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Phase 2 - Engagement
Engage consumer on a personal and emotional level, extending the
connection of previous efforts to where the Hispanic consumers is today.
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Goals & Objectives
Engender trust by building the "U.S. Pork Quality" brand.
Associate “Halo” with positive emotional reinforcement.
Create a positive perception and increase awareness of U.S. Pork as a healthy and wholesome food choice.
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Tone
Positive
Aspirational
Fun, Humorous
Memorable
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Print Creative Sofrito y Salsa Pork Tostada
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Out of Home Creative
“All the flavor. No regrets.”
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Retail Case Study
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The 3 Core Species Drive Category Growth
Hispanic stores drive a slightly higher performance than general market stores
% Pounds
% Sales % Profit
% Pounds
% Sales
% Profits
31%36%17%84%+1% +1% +2%
Chicken 33% 23% 28%36%42%
25%Pork 16% 15% 12% 16%
30%13%
Total 83% 82% 77% 79%83%
37%44%34%Beef
Non-Hispanic Stores Hispanic Stores
Source: Retailer Case Study
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Segments % $ Share of Meatcase
% $ Share of Meatcase
9.7%8.2%3.9%
Chops 6.3% 7.0%Ribs 3.4% 3.6%Roasts 2.7% 3.1%
Pork
Breasts 11.8%Other Parts 5.0%Whole 3.3%
Chicken
Within Hispanic Stores, Variety Translates to More Segment “Breadth” in Chicken and Pork…
Overall, Hispanic stores have higher performance in “non-breast” and whole chicken as well as pork chops, ribs and roasts
Non-Hispanic Hispanic
Source: Retailer Case Study
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… Which is Seen With Specific Items by Segment
Hispanic & Non-Hispanic store items were analyzed to identify “over achievers”Items that sold 50+lbs more than the other store type are shown belowMany “popular” Hispanic items are also lower priced items
SPECIES SEGMENT ITEMHispanic
AdvantageNon-Hispanic
AdvantageBEEF GROUND MEATLOAF BL REG 50 Ib+
85% BL REG 50 lb+90% BL REG 100 lb+80% BL FP 100 lb+85% BL FP 100 lb+
STEAKS CHUCK CC BI REG 100 lb+CHUCK FIRST CUT BI REG 100 lb+LOIN SEMI BL REG 100 lb+LOIN SEMI BL FP 100 lb+BRASCIOLE BL REG 50 Ib+SHOULDER BI REG 50 Ib+CUTLETS BL REG 50 Ib+SHELL BI REG 50 lb+LONDON BROIL BL REG 50 lb+LONDON BROIL BL FP 100 lb+SIRLOIN BL REG 100 lb+
ROASTS TOP ROUND BL REG 50 lb+ROUND EYE BL REG 50 lb+TENDERLOIN BL REG 100 lb+
VALUE ADDED SPEC CUTS STEW BL REG 50 Ib+OTHER OX TAILS BI REG 100 lb+
SHANK HIND BI REG 50 Ib+ALL OTHER HAM STEAKS STEAK BI REG 50 lb+
WHOLE WHOLE BI SPIRAL REG 100 lb+SAUSAGE SWEET BL REG 50 lb+
SWEET BL FP 100 lb+TURKEY BREASTS BI REG 100 lb+
TOM BI REG 100 lb+
SPECIES SEGMENT ITEMHispanic
AdvantageNon-Hispanic
AdvantagePORK CHOPS BI LOIN CC BI THIN REG 50 Ib+
ASSORTED BI REG 50 Ib+RIB CC BI REG 50 Ib+LOIN CC BI REG 50 lb+RIB END CC BI REG 100 lb+
CHOPS BL LOIN CC BL REG 50 lb+RIBS SPARE BI SLICED REG 100 lb+
BABY BACK BI REG 50 lb+ROASTS PICNIC BI REG 300 lb+
PICNIC BI SLICED REG 50 Ib+PICNIC SLICED BI REG 50 Ib+LOIN CC BI REG 50 lb+RIB END CC BI REG 100 lb+
GROUND REGULAR BL REG 50 Ib+OTHER BONES NECK BI REG 50 Ib+
FEET BI REG 50 Ib+CHICKEN BREASTS BREASTS BL FP 50 lb+
BREASTS SPLIT BI REG 100 lb+BREASTS BL REG 300 lb+
OTHER PARTS DRUMSTICKS BI FP 300 lb+LEG QUARTERS BI REG 300 lb+WINGS BI REG 100 lb+DRUMSTICKS BI REG 100 lb+THIGHS BI FP 100 lb+DRUMSTICKS BL SKNLS FP 50 Ib+
WINGS BI FP 50 Ib+LEGS WHOLE BI REG 50 Ib+ASSORTED BI REG 50 Ib+LEGS BI FP 50 Ib+
WHOLE FRYER BI REG 600 lb+ROASTER BI REG 100 lb+
Source: Retailer Case Study
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Family Packs and Thin Cuts Also Important
19%
11%
31%35%
19%14%
32%38%
19%
9%
35%40%
Total Fresh Meat Beef Steaks "Non" BreastChicken Parts
Pork Chops
Non-Hispanic Avg Hispanic High Hispanic
Family Pack; Share of Pounds Sold
3% 3%8%
14%
3% 4%9%
16%
3% 3%
9%
25%
Total Fresh Meat Beef Steaks Chicken Breasts Pork Chops
Thin Cut; Share of Pounds Sold
Family packs are somewhat less important in beef steaks (likely due to price), but very important in other core segments
Similar observation with thin cuts; for example, thin cut pork chops are very strong in Hispanic stores
Source: Retailer Case Study