2011
Objective
Study Description
To assess the effectiveness of Hispanic experiential and promotional marketing
Why We did it
Lack of actionable information Set the foundation for better performing work
1 2?????????????????????
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Topics & Themes
3
StOre and Manufacturer PrOMOtiOnS
exPeriential Marketing and eventS
the ecOnOMy and ShOPPing
behaviOr
$
Sample & Method
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51 large retailerS
cOnSuMer PrOfile
retailer PrOfile
Hispanics intercepted at malls, shopping centers, special events, flea markets, and other high traffic areas
Retailers were interviewed face-to-face. Most were selected from the Mercury Mambo retailer database.
Managers who work in-store. Over 90% of the managers we spoke to were of Hispanic origin themselves. 89% of the stores were in areas over 50% Hispanic.
(38 large chain, 13 large independent)
48 SMall and MediuM retailerS
30% of the sample speaks only Spanish39% speaks Spanish > English 31% speak both Spanish and English equally (Excludes Hispanics who speak primarily English.) 46% are adults under 30 years of age,
and the rest are between ages 30 and 40.60% are female
< 30 YRS 30 - 40 YRS
(26 medium independent, 22 small or convenience store)
249 consumers 99 retailers &
la
tx
Mia
nychi
5
CONSUMERS
financial worries lessening
6
Significantly feWer PeOPle are aS WOrried abOut financeS tOday cOMPared tO 2009.
% WOrried abOut financeS tOday
80%
16%3%
highly worried
neutral
not worried
61%
32% 7%
2009 2011
remain optimistic about the future
7
MOSt latinOS are levelheaded abOut their faMily’S financial SituatiOn. there iS little PeSSiMiSM abOut the MOnth’S ahead.
39% OPtiMiStic
46% - I am/spouse is employed18% - I am in a stable position14% - I have a positive attitude12% - Good future prospects8% - Economy is improving
8% PeSSiMiStic
8% - Likelihood of job loss8% - No enough work or jobs8% - Low pay and high prices
53% neutral
cutting cost still a priority
8
neighbOrhOOd and c-StOreS are taking the hit. they are alSO trading dOWn frOM Well-knOWn brandS tO StOre brandS.
dOing leSS becauSe Of the ecOnOMy
51% 38% 23%
Use small neighborhood or c-stores (+10%)
Buy well know brands (-8%)
Use large drug stores or chains (n/a)
30%
dOing MOre becauSe Of the ecOnOMy
39%63%64%65%21%
Buy lowest priced brands like store brands Participate in discounts, coupons, free offers Use discount stores like WalmartUse club storesUse large grocery stores or chains Use large drug stores or chainsParticipate in concerts, festivals, store events 39%58%
(-8%) (-6%) (none) (-15%) (+1%) (n/a) (-13%)(+11%)
(+/- vs. 2009)
discounts and retailtainment rule
9
Contests and sweepstakes rate lower, but still have interest by a quarter to a third of Latinos.
latinOS are attracted tO variOuS PrOMOtiOnal activitieS, leading With diScOuntS. cell PhOne OfferS beginning tO Peak intereSt.
% highly intereSted
77discounts or
coupons
70free samples
63bogos
57co rewards programs
39cell phone
offers
35mail-in rebate
Almost 40% are interested in cell phone offers, an innovation for most. *
48Spanish concert
discountcommunity
festivals-events
43& store events
32internet promo
29sweepstakes
24cell phone
promo
23contests
Discounts & Giveaways
Entertainment & Events In line with past research, discounts and giveaways are the highest rated promotions. Events rank second.
*
General Promos
Internet & cell phone promos may be ranked low because they are less familiar.
cell phone offers?
10
MOSt PeOPle are intereSted in cell PhOne OfferS fOr cOnvenience and POrtability. thOSe nOt intereSted are SkePtical and unaccuStOMed tO uSing cell PhOneS thiS Way.
39% high intereSt
50% - Convenient, won’t forget it or lose, always with you12% - Saves money
31% lOW intereSt
14% - Don’t use my cell phone for that, don’t text12% - Don’t like the idea, might not work9% - Spam, junk mail7% - Too complicated or difficult“It’s an excellent idea.
I’m always glued to my cell phone.”
“I would have to see if the stores accept them. It could take more time and the cashiers don’t have much patience.”
“That would be more organized. I wouldn’t lose them or forget them at home.”
promotions & events drive purchase
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cOnverSiOn tO SaleS haS increaSed vS. 2 yearS agO aS cOnSuMerS get SMarter and MOre tuned-in tO their value.
70%32% 31%
Participated in price promotions or sampling
in past 6 months
Participated in events in past 6 months
Participated in both of these promotions,
resulting in purchase rates to the side…
(+/- vs. 2009)
=
90% purchased the product as a result of the promotion (+12%)
84% purchased product for the 1st time (+21%)
84% had not planned to purchase the product(s) (+32%)
78% purchased product > 1 time after promotion (+26%)
savings matter
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diScOuntS are an iMPOrtant driver Of StOre chOice.
% cOnSuMerS chOOSe One StOre Over anOther becauSe Of diScOuntS Or eventS
18% 71% more entertaining eventsmore discounts
size matters
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hiSPanicS Prefer cOnteStS With Many SMall PrizeS rather than With One large Prize.
vS.
65%
34%
prefer contest with many small prizes
prefer contest with one large prize
bilingual signage is key
14
hiSPanicS dOn’t neceSSarily Want SPaniSh Or engliSh Signage, they Want bOth.
10%only Spanish
17%Spanish>English
62%Spanish=English
11%English>Spanish 1%
only English
community involvement connects
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Over half Of hiSPanicS Say they are MOre likely tO buy a PrOduct if they SuPPOrt the cOMMunity.
52% Very likely39% Neutral8% Not very likely
family first
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faMily tOPS the liSt Of OrganizatiOnS that cOnSuMerS are intereSted in SuPPOrting. educatiOn, cancer, hiSPanic iSSueS and nutritiOn are alSO Of intereSt tO hiSPanicS.
38%
children/youth/family
17%
education
16%
cancer
10%
Hispanic issues/immigration
7%
nutrition/health
store circulars deliver
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after diScOuntS and cOuPOnS in StOre circularS , PeOPle are MOSt intereSted in getting infOrMatiOn abOut educatiOn and SchOlarShiPS. all tOPicS did Well With a third Or MOre hiSPanicS.
68% 46% 39% 37% 32%
discounts &coupons
education & scholarships
baby care &raising family
health &wellness
recipes &cooking tips
% highly likely
Hispanics embrace technology
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technOlOgy OWnerShiP haS iMPrOved quite a bit Since 2009.
% technOlOgy OWned
(+13%)have laptop
(+2%)have desktop
(n/a)have tablet
3%
(+8%) have internet access at home
(-10%)do not owncomputer
have dial up
(+/- vs. 2009)
88%
93%(+11%)
own computer
52%54%12%
80%have high speed internet
(+13%) 13%
(-5%)
online surfing crosses boarders
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MOSt PeOPle Surf the Web in SPaniSh and engliSh. brOWSing tendS tO require engliSh fOr acceSS tO SPaniSh cOntent SO bOth languageS tend tO be intertWined.
avg tiMe SPent uSing the internet by language - 2011
overall in Spanish
overall in English
84%
none
- 16
%
81%
none
- 19
%
37% 34% 13%in Spanish
for 1hr or less between 1 - 3hrs more than 3hrs
33% 23% 25%in English
cell phones connect & Engage
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conduct internet searches with their cell which could be used to facilitate purchasing decisions.
98% Of hiSPanicS in Our Study OWn a cell PhOne and abOut 44% SeeM tO SubScribe tO a data Plan.
89% 55% 44% 44% 31% 26%5%
text email internet search social media youtube other apps 4 square
44%
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RETAILERS
Spirits High Among Retailers
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MOSt retailerS feel gOOd abOut their future StOre SaleS becauSe Of diScOunting, Steady SaleS increaSeS, and a SenSe that the ecOnOMy iS iMPrOving.
Why?
20% better prices, more sales or promos19% store is busy, sales trending up15% changes with weather13% my judgment or opinion6% economy improving6% people have to eat5% we know how to draw customers in3% large variety3% customers shopping better, using coupons2% store improvement, displays, remodels
62% OPtiMiStic
(0%) PeSSiMiStic
38% neutral
Retailtainment Interest Retailers
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% highly effective aMOng retailerS vS. % highly intereSted aMOng cOnSuMerS
(77%)discounts or coupons
(70%)free samples
Retailers have a greater interest in events.
Retailers give sweepstakes and contests much higher ratings than consumers.
(63%)bogos
(57%)co rewards programs
(39%)cell phone
offers
(35%)mail-in rebate
(48%)Spanish concertdiscount
(43%)community
festivals-events
(43%)store
events
(n/a)radio
remotes
(n/a)promos that
support community
(29%)sweepstakes
(24%)cell phone
promo
(23%)contests
(32%)internet promo
Discounts & Giveaways
Entertainment & Events
General Promos
(vs. % consumers)
Cell phone offers and rebates are rated higher among consumers than among retailers. Lack of interest among small retailers minimizes appeal.*
Similar to consumers, retailers give highest ratings to price promotions.
78 77 74 54 11 9
*
69 5562 5856
46 37 26 13
Make some Noise!
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retailerS Want brand PrOMOtiOnS that Make nOiSe and attract PeOPle tO their StOreS. they Want tO Offer SOMething fOr free, encOurage PurchaSe thrOugh SaMPlingS Or diScOuntS, and bring attentiOn tO theMSelveS.
16% radio remotes15% offers with savings or coupons14% free product samples13% giveaways, prizes, raffles12% product demonstrations8% live music6% Kid or family events6% bring live celebrities4% parking lot events3% health and wellness events2% Hispanic holidays or celebrations2% bogos1% live girls or models
“Activities that commemorate relevant dates in Latin countries.”
“More sampling or outside events to remind people we’re here.”
“Events with music, raffles for everyone to participate such as a tombola, prizes or roulette.”
Retailers cautious on Cell Phone Offers
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retailerS, eSPecially SMall OneS, have 2 cOncernS: Whether PeOPle Will uSe cell OfferS, and Whether the StOre cOuld OPeratiOnally handle accePting theM.
11% high effectiveneSS
6% - More convenient5% - Most people use cell phones3% - I want to try it2% - Saves money
59% lOW effectiveneSS
26% - Not use cell for that/not text22% - Privacy concerns18% - Skepticism about how it works18% - Store too small, no coupons accepted
“I don’t think so, they could be counterfeited or duplicated.”
“People will not want to pay for that service.”
“If they send cell offer messages, it would be more effective. I constantly check my cellphone, I’m more aware of them and it’s faster.”
Online Store Promotions New Territory
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SOMe retailerS are uSing Online PrOMOtiOnS tO attract hiSPanicS, but OtherS are SkePtical.
26% high effectiveneSS
12% - People are on internet2% - Easy, quick & efficient
41% lOW effectiveneSS
11% - Customers don’t have internet7% - Not tech savvy, older6% - Store is too small, can’t do it4% - Prefer traditional way4% - Skeptical, never heard of it
Hispanic Specific Promotions and Merchandising Preferred
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retailerS rate hiSPanic SPecific PrOMOtiOnS aS MOre effective than gen Mkt extenSiOnS, but bOth are Seen aS iMPOrtant. retailerS are MOre SatiSfied With SPaniSh Or bilingual MerchandiSing and diSPlayS. they Prefer PrOMOtiOnal activitieS deSigned juSt fOr hiSPanicS.
% WhO rate PrOMOtiOn aS highly effective
74%
Promotions designed specifically for the Hispanic market
55%
Hispanic promotions that are extensions or variations of GenMkt
Note: Large chains are most satisfied with all types of store promotions vs. small stores
% retailerS highly SatiSfied
34%
English GenMktpromotions
63%
Hispanicpromotions
Spanish or bilingual merchandising & displays
72%
Savings Top the News
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% highly effective aMOng retailerS vS. % highly likely aMOng cOnSuMerS
SiMilar tO cOnSuMerS, retailerS are MOSt intereSted in diScOuntS and OfferS fOr their StOre circular . retailerS dO nOt rate educatiOn aS highly aS cOnSuMerS.
83% 39% 44% 47%
(68%)discounts &coupons
(46%)education & scholarships
(39%)baby care &raising family
(37%)health &wellness
(32%) recipes &cooking tips
44%
(vs. % consumers)
Entertainment Advantage
29
% retailerS believe their cOnSuMerS chOOSe One StOre Over anOther fOr eventS Or diScOuntS
retailerS believe StOre entertainMent giveS theM an advantage Over Other StOreS, even thOugh cOnSuMerS May nOt acknOWledge it.
32% 72%(18%)more entertaining events
(71%)more discounts
(vs. % consumers)
Star Performers
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latinO brandS dO a gOOd jOb PrOMOting PrOductS in-StOre. beverage, cheeSe, dairy and tOrtilla categOrieS get gOOd MarkS fOr effective PrOMOtiOnS.
17% Goya10% Cheese and Dairy6% Maseca5% El Mexicano4% Tropical4% Jarritos4% Tortillas
15% Coke/other soft drinks
15% Bud Light/Corona/other beer
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SUMMARY
What does this all mean?
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Although optimistic, cutting cost is still a priority - store brands strong momentum, small stores taking hit.
Promotions and store events are remain critical tools, as evidenced by higher purchase conversion.
Events have a secondary, but important role, especially to retailers who need to create excitement.
Hispanic cultural relevance has great value to retailers.
Technology is here to stay, creating new channels that facilitate brand building, engagement and portability.
Consumers respond to community involvement, especially if related to family, children, education and cancer-related issues.
key findingS
Consider cross-promo/merchandising with store brands, stock-up strategies, small store strategies.
Move conversation beyond price promotions to consumer “value” and engagement - trial, purchase, repeat.
Maximize activations by leveraging store events before, during and after the activation.
Link activations to cultural insights to connect with consumers and retail partners alike.
Innovation welcome when coupled with a concrete benefit (like savings) for consumers and turnkey execution for retailers.
Cause marketing allows brands to connect with consumers on a deeper level, differentiate, and add value in a unique and powerful way.
iMPlicatiOnS
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about
About Mercury Mambo
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To motivate consumers to take action!
Seasoned team of marketing junkies with experience in segment marketing and sales activation
We understand the nuances of distribution, sales and marketing
Dedicated Mambo-trained Market Ambassadors in top Hispanic markets delivering brand experiences and gathering consumer insights
MBE, WBENC, HUB Certified
Named to Inc. Magazine’s 500/5000 Fastest Growing Companies, Promo 100
MiSSiOn
accOladeS
About Mercury Mambo’s HispaniPoll
35
Utilizing Mercury Mambo’s proprietary network of bilingual brand ambassadors and local market experts, HispaniPoll allows marketers to gather field intelligence in a quicker more cost-effective manner than traditional research studies. HispaniPoll teams are trained to conduct everything from store audits, to consumer and trade surveys, to creative spot checks.
cOntact fOr MOre infOrMatiOn
TM
Liz ArreagaMercury Mambo | Agency Partner1107 S. 8th Street, Austin, Texas [email protected] x122
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Appendix
Interview questions
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(slide 6)How has the economy affected your shopping habits compared to the past? Are you doing more, less or the same of the following…? Top 2 boxes: more = much more + somewhat more; less= much less + somewhat less.
(slide 7)On a scale of 1 to 10, how interested are you or your family in…Highly Interested: Rating 8-10, 10=extremely interested
(slide 8)Why are you interested/not interested in special offers or discounts on your cell phone?
(slide 10)How often do you choose one store over another because they have…? Almost always/frequently
(slide 11)Which of the following promotions do you prefer? Entering a contest where they give away one large prize to one winner, or entering a contest where they give away many small prizes to many winners?
(slide 12)What language do you prefer for signs & displays inside a store?
(slide 13)How worried are you about having the resources to buy the basic needs for your household? 1=not at all worried, 10 = very worried; highly worried = 8-10, neutral = 5-7, not worried = 0-4.
Interview questions
38
(slide 14)How optimistic or pessimistic do you feel about your family’s finances over the months ahead? 1=extremely pessimistic, 10 = extremely optimistic; optimistic= 8-10, neutral = 5-7, pessimistic = 1-4.
(slide 15)How much more likely are you to buy one product over another if you know the company supports the community? 1=not at all likely, 10=extremely likely. 8-10=very likely; 5-7 = neutral; 0-4 = not likely
(slide 17)On a scale of 1 to 10, how likely would you or your family be to use this store newspaper for information about…? High likelihood: Rating 8-10, 10=Extremely likely, 1= Not at all likely
(slide 22)On a scale of 1 to 10, how interested are you in/effective is…? highly Interested/effective: Rating 8-10, 10=extremely interested/effective
(slide 23)On a scale of 1 to 10, how effective is…? high effectiveness: Rating 8-10, 10=extremely effective, Rating 1-3, 1 = not at all effective
(slide 25)On a scale of 1 to 10, how effective is…? high effectiveness: Rating 8-10, 10=extremely effective; low effectiveness: Rating 1-3, 1 = not at all effective
Interview questions
39
(slide 28)How would you rate the effectiveness of the following promotions at helping influence Hispanic customers? highly effective= rating 8-10, 10=extremely effective, 1= not at all effective
(slide 29)How satisfied are you with…? Extremely or very satisfied
(slide 30)On a scale of 1 to 10, how likely would you or your family be to use this store newspaper for information about…? High likelihood: Rating 8-10, 10=Extremely likely, 1= Not at all likely
(slide 31)How often do you/you think consumers choose one store over another because they have…? Almost always/frequently
(slide 32)How do you feel about your store’s sales volume over the month’s ahead? very optimistic = 8-10, very pessimistic = 1-3, neutral = 4-7, 1= extremely pessimistic, 10 = extremely optimistic
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(slide 8)“It’s an excellent idea. I’m always glued to my cell phone.”“I’m not a coupon clipper but I may start if they make it that easy.”“That would be more organized. I wouldn’t lose them or forget them at home.”“I don’t want companies to have my number.”“If you give them your number, they will keep sending you junk.”“Then if they call you, you don’t know who it is. The other day they called my uncle to tell him he had won something and it was all lies.”“It would be annoying to be at work & keep hearing the texts come in.”“I would have to see if the stores accept them. It could take more time and the cashiers don’t have much patience.”
(slide 14)“Because we all have work and we don’t owe that much”“I don’t feel that our situation is that bad even though the job market is low but with Gods help we will overcome things.”“Because my husband and I are working and I have a son that just started working and he will help us with the bills.”“For the family we have to be good and positive, I have always try saving coupons, up to the max.”“I know a lot of people that now have jobs and getting back on their feet.”“If I don’t find a real job I’ll be worried, now I just have part time work and I just had a baby. I’m scared my mom will kick us out.”“I am a single mother and the cost of living is expensive. I barely have enough for the essential things and my ex doesn’t help me at all.”“We have to limit ourselves to buy things like we did before. The economy is bad and there is not enough money.”
interview quotes
interview quotes
41
(slide 23)“Because it would be good for customers to have more opportunities than the ones they already have.”“If they send cell offer messages, it would be more effective. I constantly check my cellphone, I’m more aware of them and it’s faster.”“People don’t like being bothered.”“I don’t think so, they could be counterfeited or duplicated”“People will not want to pay for that service.”“I think it seems somewhat complicated.”“I cannot imagine cell phone being used for coupons, and I doubt we will be able to accept those. How?”
(slide 25)“At first I was hesitant about the internet, but people are online more.”“Everything is done online. People find us online, then call for specific items.”“Our coupons are available online at lafiestasupermarkets.com”“People might go on the internet to see sales on other items like clothes or shoes but not so much for groceries.”“Not everyone has internet. We have a website and people go check it out but they prefer to find offers in our sales paper.”“Perhaps the higher volume stores in the suburbs would use it but …our customers would rather come to the store to find our sales.”“There is a lot of fraud with coupons online. We only accept manufacturer or store ad coupons.”
sample demographics
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72% ParentS With children under age 18 in hh
44% hhS With children under age 6
30% hhS With children 6-12
18% hhS With teenagerS
25% Single
61% Married/living tOgether
13% divOrced/SeParated
32% uS bOrn
69% fOreign bOrn
23% neW arrivalS Of tOtal SaMPle (<10 yrS)
30% SPeak Only SPaniSh
39% SPeak SPaniSh MOre than engliSh
31% SPeak bOth equally
47% Mexican
46% under 30
54% 30 and Over
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