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  • 1. HispanicMarketing Funded by The Beef Checkoff
  • 2. Hispanic Marketing A Changing These changing demographics mean Market: New Faces, increasing numbers of new Hispanic New EXPECTATIONS faces are showing up at your meat case. To effectively target this growing As a beef retailer, you’ve seen how market, you will need to recognize your meat department has changed to the unique needs and expectations reflect industry trends and consumer of your Latino beef customers. demands: Learning how Hispanics live, how { Case-ready beef packages now they shop and how they feel about account for a substantial portion of beef are the first steps in selling more your meat inventory beef to the Latino community. { Customers looking for quick meal solutions have made convenient The Hispanic beef products increasingly popular Market & { Beef Retailers Newer cuts like Flat Iron Steak and Petite Tender have made their way How does the sizeable Hispanic from the restaurant menu to the market translate to dollars and cents supermarket meat case. for beef retailers? Just as the look of the retail meat Studies have shown that Latinos case is evolving, the make-up of the are the main source of growth for country’s consumer base is also the grocery industry. Hispanics shop shifting. For instance, the ethnic at grocery stores about 26 times a mix of the population is changing month — triple the average of the to include more Hispanics. With general population.2 With Hispanics in 44.3 million people, the Hispanic your store almost daily, the potential population is the largest minority impact on your bottom line can be group in the United States and is significant due to the increasing Latino growing faster than any other ethnic buying power. group.1 Hispanic immigrants from Hispanic income is on the rise, Mexico, Central America and South growing 60-70% faster than the America settle in all parts of the general population at 7.4% a year. country and bring with them diverse Hispanic purchasing grew from $212 cultural experiences and attitudes billion in 1990 to $863 billion in 2007. influenced by their home countries. Projected estimates for 2011 put total In most instances, the expressions Hispanic spending at $1.2 trillion.3 “Hispanic” and “Latino” are used interchangeably to describe In order to maximize that spending immigrants of Spanish or Latin at your beef case, it’s important to American descent. analyze the whole Hispanic picture: demographics, differences among various groups, values, buying habits and beef cut preferences. 1 U.S. Census Bureau, 2006 2 Food Marketing Institute, El Mercado, 2005 3 The Selig Center for Economic Growth, Univ. of Georgia, 2007 12-2
  • 3. HISPANIC MARKETINGPROFILE: Hispanic HISPANIC CLUSTERING cluster. Median income also increasesPopulation About two-thirds of US Hispanics along the continuum. Hispanics on the right side of the continuum are moreDEMOGRAPHICS are from Mexico. Others come from likely to celebrate American holidays Central and South America, Puerto RicoAlong with size and buying power, and follow US news, music and sports. and Cuba.7demographic studies have revealed This continuum is important to retailers,these key Hispanic statistics that are When Hispanics move to the United because it correlates to buying habits.meaningful to beef retailers: States, it’s very important to them to Clusters falling to the left of the maintain ties to their homeland evenLarger families continuum buy more Hispanic foods, as they adapt to their new culture. ThisHispanics generally have more mouths while clusters falling to the right buy process is called acculturation. Unliketo feed; there are approximately 4.0 more traditional American fare. Hispanics, other ethnic groups areHispanics per household, compared to more likely to assimilate, or try to blend CONNECTION TO FOOD AND FAMILY2.6 persons for the general market.4 in with their new culture and abandon The Hispanic culture is family-centeredMore children traditional customs. with strong emphasis placed on foodMore than half of Hispanic households Studies have identified five main and home cooking. Latino familieshave children (57%), compared to only Hispanic groups, or clusters: New enjoy eating together and believe thatabout one third (33%) of non-Hispanic Arrivals, Old World, Transitionals, Up food signifies commitment to familyhouseholds.4 & Comers and American Dreamers.8 and tradition.9Spend more on groceries These clusters are arranged in a series The mother is the heart of the LatinoHispanics spend $133 on weekly called an Acculturation Continuum family. Hispanic mothers enjoy greatgroceries, compared to $91 for the (see below). Where groups fall along personal satisfaction from preparinggeneral market.5 the continuum reflects how much family meals. Cooking is seen as a waySpend more on beef Hispanics have acculturated while to expresses creativity, love and care.10Hispanics spend 42% more on beef integrating the American lifestyle. VALUESthan non-Hispanics, about $326 The first cluster encompasses thoseannually per person, compared to Hispanics values are based on four Hispanics who were born outside the$230 for the general market.6 guiding principles:10 US, speak only Spanish and have beenArmed with these figures, savvy beef in this country less than 25 years; they Familyretailers will want to focus attention on are still steeped in their home culture. Latinos believe family is the heartthe Hispanic market to capture their of Hispanic life. The mother plays a As the continuum progresses, theshare of Latino beef dollars. central role. percentage of U.S.-born, English- speaking Hispanics increases in each Heritage Hispanics are proud of their rich Acculturation Continuum cultural heritage and feel the need to preserve their traditions. Integrity Pride and self-worth are integral to Hispanic life. Hispanics like to be self-reliant and believe it’s important to contribute to the community. Success Being a good provider and having job security signifies success for Latinos. They believe wealth should be used to enjoy life. Only Spanish More Spanish More English Mainly English Language SpokenSource: Simmons NHCS Adult Full Year Unified Study,Spring 20054 Nielsen Media Research, 2005 Universe Estimates5 Food Marketing Institute, El Mercado, 20056 Cattle Industry Annual Convention and Trade Show, Hispanic Market 7 U.S. Census Bureau, 2002 9 Tyson, 2005 Overview, 2005 8 Simmons NHCS Adult Full Year Unified Study, Spring 2005 10 Yankelovich Hispanic Monitor, 2002 12-3
  • 4. HISPANIC MARKETINGPROFILE: HISPANIC SHOPPING HABITS The Acculturation ContinuumThe Hispanic Hispanics shop at different types of (see previous page) comes into playSupermarket stores; however, grocery stores are the regarding where and how HispanicsConsumer number one shopping destination for grocery shop. Less acculturated Latinos who are still strongly connected to theirIn some ways, Hispanic shoppers Hispanics for two main reasons:5 home culture spend more on groceries.are very similar to the general Low prices They seek out Hispanic foods andpopulation — they value a clean Latinos like a good bargain; 95% of products and shop at ethnic storesstore, fresh produce and helpful Hispanic grocery shoppers find low five times more than acculturatedemployees.5 prices important.5 Latinos. Acculturated Hispanics whoBut Hispanics also like to feel have adopted a more American lifestyle Convenienceconnected to where they shop, are more likely to choose stores based Grocery stores offer easy “one-stop”and they want grocery stores to on convenience and efficiency.5 shopping for Latinos; they canrecognize their cultural differences. complete multiple household Latino shoppers spend more on majorA majority of Hispanics also consider errands there. stock-up trips than the general marketcommunity involvement important shopper. The Hispanic shopper alsowhen choosing where to shop Here are the shopping stats: “fills in” more often, but spends lessfor groceries.5 { 94% of Hispanics shop in on each trip than general market supermarkets at least once shopper ($32 vs. $49). Hispanic fill-in per month trips are often prompted by children’s { items needed that day.11 68% shop at discount superstores Knowing the make-up of your store’s { 56% shop at carnicerías Hispanic customer base is crucial to (meat markets) meeting Latinos’ needs. Do you have { At least half make visits to bodegas a large percentage of acculturated (corner stores) and panaderías Hispanic shoppers visiting your store (bakeries) every month to buy meat? Or do you have a greater { number of unacculturated Hispanic Saturday is the most popular customers who will likely make a shopping day for nearly 4 out of separate trip to a carnicería for their 10 Hispanics.5 meat purchases? Understanding when and why Latino shoppers are in your store will also help you better serve your Hispanic market. Is today’s visit a major weekend stock-up trip, or a weekday fill-in trip? 11 Unilever, Winning the Hispanic Shopping Trip, 2006 12-4
  • 5. HISPANIC MARKETINGPROFILE: Hispanic However, Latinos who are accustomed Hispanics use beef in a wide varietyBeef Lover to shopping a full-service meat counter of traditional dishes. Get to know stocked with traditional Hispanic cuts these favorites:Good news: Hispanics are serious don’t always find what they are lookingabout beef! for in the meat case of conventional Popular Hispanic Beef DishesLatinos eat beef 4 to 5 times per week, grocery stores. Supermarket beef Based on “Prepare Often”compared to 2 to 3 times per week for cuts often look different and have Responsesthe general market. This accounts for different names. TraditionalHispanics spending over 40% more on To get the familiar cuts they are lookingbeef than the average population.6 { Milanesa (46%) for, 63% of Hispanics buy their beefHispanics think positively about beef; at an independent butcher called a { Carne Asada (36%)they view it as a status food that carnicería. Hispanics indicate they shop { Caldo de Res (29%)makes them “strong, healthy and at carnicerías because:13smart.”6 Latinos also believe beef is { { Fajitas (29%) Meat is fresher (20%)a good value and find that it is more { Bistec (25%)affordable in the U.S. than in many { Better meat prices (20%)Latin American countries.12 { { Tacos (20%) Higher quality of meat (17%)HOW HISPANICS CHOOSE BEEF { { Carne Guisada (20%) Faster way to shop/no lines (12%)Freshness is the number one quality Other Favorites CONNECTING WITHHispanics look for when choosing beef. HISPANIC SHOPPERS { Picadillo (18%)Hispanics consider meat fresh when itis bright red in color. To identify the distinctive needs of { Ranchera (17%) Latino beef eaters, the beef checkoffHispanics also look for an expiration { Steaks (16%) conducted several Hispanic consumerdate and a USDA stamp on the studies in 2007. These bilingual studies { Meatballs (14%)package and make sure that the included focus groups, consumerbeef doesn’t smell bad or look slimy.13 { Bistec Empanizado (14%) usage and attitude surveys, andWHERE HISPANICS BUY BEEF customer interviews in different { Hamburgers (11%) locations throughout the U.S. TheBecause fresh beef is important to Broader List of Dishes findings from this research can helpLatinos, a store’s meat department beef retailers tailor their merchandising { Tinga (7%)is a major deciding factor in where to capture a larger share of LatinoHispanic consumers shop. Hispanics { Roast Beef (7%) beef purchases.cite low prices and meat quality and { Tamales (6%)freshness among the top reasons for One of the keys to attracting Latinochoosing a beef retailer.13 consumers who might otherwise shop { Bistec en Cazuela (6%) at carnicerías to your meat case is toHispanics are willing to shop for beef { Ropa Vieja (5%) carry foundational Hispanic beef cutsin mainstream grocery stores if they like Milanesa, Ranchera, Carne Asada, { Bistec de Palomilla (5%)carry the cuts Latinos want. Studies ground beef and ribs. To make the most Source: The Beef Checkoff, Quantitative Hispanic Retail Shoppershow that a significant number of impact, include a bilingual name for Insights, 2007Hispanics (77%) buy supermarket these cuts on the package, to make itpre-packaged beef for these reasons:13 easier for Hispanics to identify them.13{ Better meat prices (60%) Foundational Hispanic Beef Cuts{ Faster way to shop/no lines (52%) These are four foundational cuts that{ Higher quality of meat (47%) Hispanic consumers look for:{ Meat is fresher (41%) { Milanesa (58%) { Ground Beef (52%) { Ranchera (30%) { Ribs (30%) Source: The Beef Checkoff, Quantitative Hispanic Retail Shopper Insights, 200712 Abecé Hispanic Marketing & Advertising Newsletter, June 19, 200613 The Beef Checkoff, Quantitative Hispanic Retail Shopper Insights, 2007 12-5
  • 6. HISPANIC MARKETINGKnowing the make-up of your customer Use point-of-sale (POS) materials THE NEXT STEPbase is also smart business. Not all developed by the Beef Checkoff to The Hispanic facts and figures providedHispanics are the same, and different help draw Hispanic customers to your here are just a starting point; as anationalities prefer different styles of meat case: beef retailer, it’s up to you to usedishes using various beef cuts: { Hispanic cut chart this information to reach your Latino{ Mexicans enjoy thin, flat cuts customers. To gather information about { Hispanic dictionary such as milanesa, carne asada your specific Hispanic population, visit and arrachera { Hispanic counter signs and posters www.census.gov.{ Caribbeans enjoy shredded beef { Hispanic meat case signage It’s a good idea to do a little informal dishes such as ropa vieja or ground research too: talk to your customers! For information about these beef dishes like picadillo Assemble an Advisory Panel from the resources, visit www.beefretail.org/ Latino community. Panel members{ Argentinians and Chileans enjoy resoHispanicToolkitElements.aspx can help you discover everything thick, juicy steaks such as bife de The Beef checkoff study results from the nationalities of the Latinos chorizo and lomito14 indicate Hispanics think meat shopping in your store to whichDo your homework! Learn the origins departments could also serve them Hispanic cuts are popular duringof the Hispanics shopping in your store better by providing samples with different seasons. Participateand stock your meat case with the cuts recipes, conducting in-store demos in the Hispanic community withyour specific customers will enjoy. and offering pre-marinated products. store-sponsored events. Connecting with your Latino customers andMake it easy for Latinos to find their Incorporating these Hispanic elements learning their culture is the best waypreferred cuts in your beef case. in your store is one of the best ways to serve their needs and capture theirConsider creating a designated to appeal to and connect with Latino beef dollars.“Hispanic Beef” section in your meat shoppers, particularly if you are tryingcase that features cuts for popular to help unacculturated HispanicsLatin American dishes. Use bilingual feel at home. Bilingual staff, signagesignage to identify the section, and and packaging are very important toinclude bilingual cut labels on each unacculturated Latinos.5package. Merchandise with otherHispanic foods such as rice and beans. For more information visit BeefRetail.org14 Food Marketing Institute, RetailWire Discussions, Hispanics and Beef: Economics or Ethnics?, June 16, 2006 Funded by The Beef Checkoff © 2003, revised 2008. Cattlemen’s Beef Board & National Cattlemen’s Beef Association 12-6