Mercury Mambo Hispanic Shopper & Retailer Study 2011

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The follow-up study to the popular 2009 Hispanic Shopper & Retailer study by Mercury Mambo. Read first hand what Hispanic consumers and retailers look for in brand promotions and experiences.

Text of Mercury Mambo Hispanic Shopper & Retailer Study 2011

  • 1. 2011

2. 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??????? ??????? ??????? 2 3. Topics & Themes 3 Store and Manufacturer Promotions Experiential Marketing and Events The Economy and Shopping Behavior $ 4. Sample & Method 4 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 Spanish 39% 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 NY CHI 5. 5 CONSUMERS 6. 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 7. remain optimistic about the future 7 Most Latinos are levelheaded about their familys financial situation. There is little pessimism about the months ahead. 39% optimistic 46% - I am/spouse is employed 18% - I am in a stable position 14% - I have a positive attitude 12% - Good future prospects 8% - Economy is improving 8% pessimistic 8% - Likelihood of job loss 8% - No enough work or jobs 8% - Low pay and high prices 53% neutral 8. 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 Walmart Use club stores Use large grocery stores or chains Use large drug stores or chains Participate in concerts, festivals, store events39%58% (-8%) (-6%) (none) (-15%) (+1%) (n/a) (-13%)(+11%) (+/- vs. 2009) 9. 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 39 cell phone offers 35 mail-in rebate Almost 40% are interested in cell phone offers, an innovation for most. * 48Spanish concert discount community festivals- events 43 & store events 32internet promo 29 sweepstakes 24 cell phone promo 23 contests 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. 10. 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, wont forget it or lose, always with you 12% - Saves money 31% low interest 14% - Dont use my cell phone for that, dont text 12% - Dont like the idea, might not work 9% - Spam, junk mail 7% - Too complicated or difficultIts an excellent idea. Im always glued to my cell phone. I would have to see if the stores accept them. It could take more time and the cashiers dont have much patience. That would be more organized. I wouldnt lose them or forget them at home. 11. promotions & events drive purchase 11 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%) 12. savings matter 12 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 13. size matters 13 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 14. bilingual signage is key 14 hispanics dont necessarily want Spanish or English signage, they want both. 10%only Spanish 17%Spanish>English 62% Spanish=English 11%English>Spanish 1% only English 15. community involvement connects 15 Over half of hispanics say they are more likely to buy a product if they support the community. 52% Very likely 39% Neutral 8% Not very likely 16. family first 16 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 17. store circulars deliver 17 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 18. Hispanics embrace technology 18 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 own computer have dial up (+/- vs. 2009) 88% 93% (+11%) own computer 52%54% 12% 80% have high speed internet (+13%) 13% (-5%) 19. online surfing crosses boarders 19 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 20. cell phones connect & Engage 20 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% 21. 21 RETAILERS 22. Spirits High Among Retailers 22 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 promos 19% store is busy, sales trending up 15% changes with weather 13% my judgment or opinion 6% economy improving 6% people have to eat 5% we know how to draw customers in 3% large variety 3% customers shopping better, using coupons 2% store improvement, displays, remodels 62% optimistic (0%) pessimistic 38% neutral 23. Retailtainment Interest Retailers 23 % 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 concert discount (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 24. Make some Noise! 24 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 remotes 15% offers with savings or coupons 14% free product samples 13% giveaways, prizes, raffles 12% product demonstrations 8% live music 6% Kid or family events 6% bring live celebrities 4% parking lot events 3% health and wellness events 2% Hispanic holidays or celebrations 2% bogos 1% live girls or models Activities that commemorate relevant dates in Latin countries. More sampling or outside events to remind people were here. Events with music, raffles for everyone to participate such as a tombola, prizes or roulette. 25. Retailers cautious on Cell Phone Offers 25 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 convenient 5% - Most people use cell phones 3% - I want to try it 2% - Saves money 59% low effectiveness 26% - Not use cell for that/not text 22% - Privacy co