Th Hi i C The Hispanic Consumer Landscape - BPAAcdn.bpaa.com/Training/Seminars/Gus-Rios-Hispanic-Consumers.pdf · LA 6 Hispanic Markets ... Frozen meals Tea Fats and oils Potato chips

Th Hi i C The Hispanic Consumer Landscape Landscape January 23, 2012y ,

Table of Contents

Pages• Hispanic Demographics and Economic Trends ………………….. 3 – 18

• Hispanic Insights and Behavior……………………………………… 19 – 31

• Implication for Bowling Centers……………………………………… 32 – 39

Hispanic Demographics and Economic Trends

Hispanics represents over half of U.S. Population Growth This Decade…

2000 - 2010Hispanic

102.6

The segment will continue to grow exponentially

N % f t t l59.7

73

87.7

African-AmericanAsian/ Pacific Islander

New People

% of total population growth

14.5 million 52%

47.8

New People % of total population

New People % of total population

2010 2020 2030 2040 2050

Projected US Hispanic Population (in millions)

PepsiCo Confidential

p pgrowth

3.8 million 14%

p pgrowth

3.9 million 14%

j p p ( )

Source: US Census Bureau

5

…..with tremendous growth projections!

276%

Hispanics are the fastest%growing population segment…

And will become the largestsegment of the new majority

238%

143%

207%

181%

8% 9%

65% 60% 56% 51% 46%

14%

77%

37%

88%

41% 60%44%

29%

128%

80%

4%5% 6% 5%3%

16% 19% 23% 27% 30%14% 14% 14% 15% 15%5% 6% 7%

8%

3%2010 2020 2030 2040 2050

Hispanic Black Asian White Non-Hispanic

2010 2020 2030 2040 2050

Hispanic Black Asian White Non-Hispanic

P j t d G th f P l ti S t P j t d R l ti Si f S t


Source: Nielsen

Projected Growth of Population Segments Projected Relative Size of Segments

6

Hispanic population are mainly located in CA, TX, FL, AZ, NY,NJ and IL Markets

WANY

PA

WI12

MNOR

WY

ID

CT

ND

MI4

MT

SD

MA

RICAIL

NY

1

PA15

UT7

IA5

KS

VA3

IA1

OH

KY

WVNE

MO

AZIL

NJ

NM 35 GA

22

AR 2

AL2

SC

MS1

NC12

OK12

TN7TX

FL21LA 6

Hispanic Markets

Primary Pop. in Market


p

7

Source: Geoscape Population statistics

Top Cities projectionsProjected US Hispanic Population

Growth 2000 ‐2015

Los Angeles 32.4%New York 28.2%Houston 78 5%

1990 Projected US Hispanic Population

Houston 78.5%Dallas-Ft. Worth 104.1%Chicago 48.9%Miami-Ft. Lauderdale 36.4%San Francisco-Oakland-San Jose 39.1%Phoenix (Prescott) 93.9%San Antonio 44.0%

48%51%

55%49%

55%

200020102015

32% 33%

48%

40%

28%

40%

45%

35%

28%

47%

30%30%

36%

32%

47%

15%

20%

12%10%

15% 16%19% 20%

16%19%

23%21%

23%21%

22% 24%22%

Los

Ange

les

New

Yor

k

Hou

ston

Dal

las-

Ft.

Wor

th

Chi

cago

Mia

mi-F

t.La

uder

dale

n Fr

anci

sco-

akla

nd-S

anJo

se Phoe

nix

(Pre

scot

t)

San

Ant

onio

L

San

Oa

Source: Geoscape Population statistics

8

Hispanics are noticeably younger than other ethnic groups

20% of Population by Age Group

12

14

16

18

6

8

10

12

0

2

4

0 - 5 5 - 14 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+

Age Group

TOTAL White Asian Black HispanicMEDIAN 36 5 40 8 35 0 31 5 27 0



9

AGE 36.5 40.8 35.0 31.5 27.0

Hispanics Have the Largest Households…

Average household size

3 83.8

2.83.4

2.3

Hispanic Black Asian White



10

Hispanic HH’s were better poised to weather the economic storm, and are Hispanic HH’s were better poised to weather the economic storm, and are best poised to grow when the recession endsbest poised to grow when the recession ends

– Hispanics are less effected by the recession, partly because: • Only 45% of Hispanics have credit cards vs 71 percent of NHOnly 45% of Hispanics have credit cards vs. 71 percent of NH• Few have loans, 34% versus 53 percent for non-Hispanics, and they are less

burdened with potential debt

Source: Experian Simmons for Univision 2009

• Only 49%of Hispanics own homes in 2008 vs. 75% of non-Hispanic whites

Source: Pew Hispanic, Through Boom and Bust: Minorities, Immigrants and homeownership

• 44% of Hispanics expect their finances to improve in the next 6 months vs. 44% of Hispanics expect their finances to improve in the next 6 months vs. 20% of NH

Source: Forrester Research 2009

– Because Hispanics aren’t experiencing the major lifestyle shifts of non-i i i i i i f fHispanics, they remain optimistic of the future• Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and

has remained constant since 2005Source: Experian Simmons for Univision 2009

..and Spend a Lot of Money on Grocery Items

Average annual spendper consumer unit

Share oftotal spendingp

(total dollars)p g

8.18.6

$3,432

$3,947$3,719

6.66.9

$ ,

$2,796

Hispanic Black Asian WhiteHispanic Black Asian WhiteA


Source: Selling Center for Economic Growth *Spending on “Food at Home”

$44,000 $36,000 $69,000 $57,000Avg.HHI

12

Total Hispanic Purchasing Power is Rising Quickly

Total buying power($ billion)

$1,386

$1,240

($ billion)

$951 $913

$752

$490$600

$269

$509

$269

2000

2008

2013

2000

2008

2013

2000

2008

2013


Hispanic Black AsianSource: Selling Center for Economic Growth

13

Hispanics have Important Demographic Growth in Food & Beverage..

$5.9B of new market value was created by Hispanics in growing categories

30.10%

27.10%

18.20%

11.60% 10.60%9.10%

5.60% 5.60%

2.30%3.70%

1.20%0.70%

Frozen meals Tea Fats and oils Potato chips and Fresh and canned pasta, Oatmeal

Real demand created by Hispanics $ illi 2005 2008

other snacks vegetable juices and other cereal

Real growth Hispanic market Real growth non-Hispanic market

$5 858


Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2005-2008; Latinum Network analysis

$millions 2005-2008 $5,858

14

… and Hispanics are Also Important to Household & Personal Goods

$4B of new market value was created by Hispanics in growing categories

31 4%

18.0% 17.5%

31.4%

20.0%

9.8%6.9% 7.0% 7.3% 7.1%

4.0%3.0%

6.5%3.3%

1 2%1 2%2.3%3.8%3.4%

1.2%1.2%

Miscellaneoushouseholdequipment

Cosmetics,perfume, bath

prep

Lawn andgarden supplies

Laundry andcleaningsupplies

Deodorant,femininehygiene,

miscellaneousproducts

Grills andoutdoor

equipment

Shaving needs Householdtextiles

Smallappliances,

miscellaneoushousewares

products

Real growth Hispanic market Real growth non-Hispanic market

$4,850Real demand created by Hispanics $millions 2005 2008


$ ,$millions 2005-2008

Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2005-2008; Latinum Network analysis

15

Cellular Phones and Phone Cards Bring Hispanic Consumers CloserConsumers Closer

Hispanics are closing the digital divide which makes cell phones an important outlet

IMPLICATIONS:86%

75% • Text Messaging to Reach Consumer

• Phone and Promotions

• Phone Card Sales

HispanicNonHispanic

Source: Prepaid Phone Card Testing for The Hispanic Institute, 2010

CELL PHONE USUAGE

Source: “The Latino Digital Divide” Pew Hispanic Center, 2010

Internet Video

Internet is an important part of most Hispanic Moms’ lives

40% f Hi i M bil t• 40% of Hispanic Moms use mobile to access the internet at least some of the time

21% are “ Addicts,51% are Avid users, 24% visit once or twice week

Facebook dominates usage followedFacebook dominates usage, followed by Univision

The most common reason for Hispanic moms using social media are:

Catching up with friends Following friend activities

Source: Latinum moms study 2010

18

Hispanic Consumer and Shopper Trends Impacting our Business

1. Effects of the economyObvious importance of price and ways to save money

2. Greater availability of authentic productsKey: right products in right locations based on demographics

C

3. Exploding younger populationsBig growth in Hispanic children, teens, Millennials

4. Connections to community increasing in importanceMust be seen as a true partner of the Hispanic community

5. Significant use of mobile devices and the internet

6. Migration of Mexicans to the East and MidwestM i d t b i l t i l

5. Significant use of mobile devices and the internetDedicate time to research products and services before buying

Mexican products becoming more relevant in more places

Sources: PepsiCo Hispanic Study, New American Dimensions Latina Shopper Study, TNS Hispanic Shopper 360 Study, US Census Bureau

19

HispanicHispanic Insights and BehaviorsBehaviors

Definition of Acculturation

ac cul tu ra tionac cul tu ra tionac-cul-tu-ra-tion‘…is the process by which immigrants and

ac-cul-tu-ra-tion‘…is the process by which immigrants and…is the process by which immigrants and their offsprings adopt some values, beliefs and behaviors more characteristic of the

…is the process by which immigrants and their offsprings adopt some values, beliefs and behaviors more characteristic of theand behaviors more characteristic of the

US culture than the culture of the countries from which they or their

and behaviors more characteristic of the US culture than the culture of the countries from which they or theircountries from which they or their

ancestors originate.’countries from which they or their

ancestors originate.’- Pew Hispanic Center, ‘2005: Latinos: A People in Motion’

Stages of Acculturation

The majority of Latinos are acculturatingThe majority of Latinos are acculturatingor have acculturatedor have acculturated

Total LatinoTotal Latino

or have acculturatedor have acculturated

UnacculturatedUnacculturatedLatino TeensLatino Teens

26%26%

AcculturationWindow

AcculturationWindow

UnacculturatedUnacculturated

6%AcculturatedAcculturated

AcculturatedAcculturated

50%50%

24%44%44%50%50%

24%

UnacculturatedUnacculturatedAcculturation

WindowAcculturation

Window

Source: New America Dimensions, PepsiCo Acculturation Study.

Stages of Acculturation

A window of acculturation “opens” after A window of acculturation “opens” after Hispanics have spent more than Hispanics have spent more than

h lf th i li i th USh lf th i li i th UShalf their lives in the UShalf their lives in the US

AcculturationAcculturationAcculturation Window

Acculturation Window

1st Generation

Acculturation Stages

Acculturation is a process that happens graduallyAcculturation is a process that happens gradually20

Join clubs and organizations

US lt

Hispanic values and shopping

habits change15

on S

core Majority

plan to stay in US Physical labor is

less common

US pop cultureis more important

Spanish Dependent American

identity takes over as they

habits change

10

cult

urat

ion

English media usage

surpasses Spanish

English is preferred

Football ispreferred to soccer

Identifies with Latin American Culture d

over as they move into non-

Hispanic neighborhoods

5Acculturation Acculturation

WindowWindow

Acc Majority

speak English

well

and soccer is

preferred sport

0<25% 25-49% 50-74% >75% 2nd gen 3rd gen

A deep dive study of Hispanic shoppers revealed three acculturation Segments

Level Of Hispanic Acculturation Hispanic ‐ Segment Profiles

ModeratelyAcculturated More AcculturatedModeratelyLess Acculturated

Less Acculturated

32% MoreAcculturated

34%

34%Generation

Language More Spanish Spanish & English More English

80% 1st

Generation63% 1st Generation 20% 1st Generation

34%Income $29K $57K$41K

Comfort Comfortable in U.S.

More Comfortable in U.S.

Extremely Comfortable in U.S.

Strong Latino Strong Latino Latino Values StillLessValues

Shop Where

Strong Latino Values

Strong Latino Values

Latino Values Still Present

Convenient and Preferred Store Preferred Stores Preferred Stores

Moderate

More

Source: PepsiCo Hispanic Acculturation Study

25

S l R l

Today's challenge ...

Solidifying Relevance with acculturating/bicultural consumers g

la Biculturalidad

All Latinos are influenced by American & Hispanic by American & Hispanic traditional lifestyles - They are pulled by the dominant American ey a e pu ed by e do a e caculture to be individualistic and independent while their traditional Latino family values pull at them to stay close to the collectivism of the family.

IndependentFamily

IndividualisticTraditional

Source: Mintel

IndividualisticTraditional

Biculturalization and Identity…a new look today.

Americans defining their ownBicultural Latinos self define as 100% Latino & 100% A erican

gidentity in fractions that add up toa mathematically correct 100%

100% Latino & 100% American. Showing strong and unique cultural identity.

ally

dit

ion

Tra

d

ource: Yankelovich Multicultural Study

What are the top Interests of bicultural Hispanics?

Findings...Figure 49: Top interests of young Hispanics, September 2008g p y g p , pBase: 300 Hispanics aged 18-34 with internet access

“Out of the following, which would you say are your top three interests?”

Source: Mintel Exclusive Research Survey

The New Latino, aged 18-24, and the Latino Young Adults, aged 25-34, seem to have rather similar interests in life. However, the Latino Young Adult has a higher preference for spending time with family and friends.

How do they feel about family?

Findings...Figure 50: Young Hispanics’ closeness to family, by age, September 2008Base: 300 Hispanics aged 18-34 with internet access

“Describe your relationship with your immediate family.”

g

Describe your relationship with your immediate family.

Source: Mintel Exclusive Research Survey

Given that those aged 18-24 are almost 12% of the Latino population and are experiencing a 29% growth from 2003-13, their strong sense of family will have a greater reach.

Implications for Bowling Centers

Winning with Hispanic consumers

In-center ExperiencePlanning Post CenterExperience Post Center

Be authenticBe relevant Be connected• Bilingual signage & family imagery • Bilingual employees• Music: Shakira/ Enrique• Traditional food & beverages

balanced with staple menu items

• Bilingual circulars & coupon books

• News paper and radio

• Association with community drives loyalty• Hispanic Chamber of Commerce• Churches and church leagues

• Offer value during during food and music f i lbalanced with staple menu items

• Manzanita Sol, Jarritos, Tecate, Negra Modelo

festivals

Source: PepsiCo Hispanic Acculturation Study34

34

The majority of all Hispanics prefer to see bilingual signage

67% of consumers look for Bilingual signs

Bilingual is authentic

• Hispanics are satisfied with smaller Spanish translations with English

67 h h i f b d k

English

• They neither want nor expect all‐Spanish signage

• Non‐Hispanics are not offended by the addition of Spanish

67

1416

When shopping for beverages and snack foods, which of the following types of signs would be most appealing to

you?

142 1

16

Signs in bothEnglish and

Spanish

Signs inSpanish

Signs inEnglish

Neither One Don’tknow/Refused

p

Source: PepsiCo Hispanic Acculturation Study

35

Serving authentic Hispanic products are an important attribute in attracting Hispanic shoppers

91% of Hispanic consumers prefer locations where they can find Hispanic products

St F t % Indicating Very/Somewhat Store Feature % g y/Important to Store Selection

Sells Hispanic Products 91%

Bilingual Employees 88%Bilingual Employees 88%

Bilingual Store Signs 84%

Store Active in Local Community 84%


Source: Food Marketing Institute, El Mercado Study

Bilingual Packaging 82%

36

Examples of Hispanic Programming

Posadas /NavidadDia de las MadresApril - May

Heritage MonthSeptember

Posadas /NavidadNovember -December

The Hispanic calendar: programming and Community activities

Association with community drives loyalty

Three Kings Day Mother’s Day Back to School Day of the Dead

MARMAR DECDECFEBFEBJANJAN APRAPR MAYMAY JUNJUN JULJUL AUGAUG SEPSEP OCTOCT NOVNOV

g yLos Reyes Magos

yDia de las Madres

yDia de los Muertos

Lent / Easter Cinco de Mayo Hispanic Holiday SeasonSemana Santa Heritage Navidad

Cultural/Holiday Local Events Local Soccer Music

Community


How to win with Hispanic consumer

1. Planning: Hispanics put rigorous thought on their spendEnsure strong presence in mail circulars coupons and

2. In- Center: Authentic ExperienceMake POS Bilingual whenever possible Hispanics want

Ensure strong presence in mail circulars, coupons, and value through radio absolutely drive center choice

Make POS Bilingual whenever possible, Hispanics want relevant products, bilingual signage and employees, plus traditional food (tacos, tamales, aguas frescas) balanced with the staple center offerings

3. Focus on key Holidays promotions:Key Holidays: Mother’s Day, Lent/Easter, Hispanic Heritage Month

4. Communicate Latino Values:Hispanics are focused on family, tradition, & food

39

Source: PepsiCo

6 things to remember about the Hispanic consumer

1. Don’t forget the English:Hispanics appreciate Spanish, but are inspirational and want to learn English

2. Keep it simple, yet noticeable:Need Hispanic people in ads and in-store, Bilingual coupons and circulars (English can still be the larger font)

3 Focus on making the Hispanic elements3. Focus on making the Hispanic elements cool, not differentPresent Hispanic signs as for everyone, not just Hispanics

4 Hispanics have a tendency toward trying out4. Hispanics have a tendency toward trying out different venuesDoes your center provide a welcoming environment for them to visit with their family?

5. Trust is paramount for Hispanics.

Do you serve the food and beverage brands they trust? Do store personnel understand the culture?

6. Hispanics associate health and nutrition with homemade.

Source: PepsiCo

40

6. Hispanics associate health and nutrition with homemade.Highlight authentic ingredients and recipes and fresh food.

Recap Video

G Ri• Gus Rios– [email protected]

Th Hi i C The Hispanic Consumer Landscape Landscape January 23, 2012y ,

Documents

Th Hi i C The Hispanic Consumer Landscape - BPAAcdn.bpaa.com/Training/Seminars/Gus-Rios-Hispanic-Consumers.pdf · LA 6 Hispanic Markets ... Frozen meals Tea Fats and oils Potato chips