Creative Alliance presents "A Report from the Latino Marketing Frontlines." Brown-Forman Lunch & Learn. June 21, 2012.

1. A Report from the Latino Marketing Frontlines
Brown-Forman
Lunch & Learn
June 21, 2012

2. CA Video

3. Agenda
I. Agency Snapshot
II. Today’s Millennial Latino
Consumer
III. Latinos and Spirits
I. Millennial Consumers –
Our Experience with KFC

4. Agency Mission Statement
To energize a client’s business and
build lasting relationships through innovative ideas
that inspire, motivate, unite, brand and sell…
…And that goes for Hispanic, too!

5. Agency Snapshot
• Louisville-based agency with professionals from across the country
• Category strengths include multi-unit retail, healthcare, entertainment
and education
• Capitalized billings have increased over the past 25 years to $180,000,000+
• One of the top 100 agencies in the U.S.
• The agency's key strength is its people:
– Long tenures
– National-caliber expertise in all agency disciplines

6. Multi-Unit Marketing Experts
25-year History of Driving Multi-Unit Business Impact:
– At the local level
– Cross-functionally: Building brands and selling brands/services
– Year-over-year same store sales increases
– Traffic-driving strategies
– Bottom-line efficiencies
– Compelling consumer touch points
– Top down strategy meets bottom up reality; problem solving and
creativity
– Partnerships and relationships matter
6
3

7. By the Numbers!
Client Corp Franchisee Total DMA
Units Units Units Markets
A&W 0 769 769 143
CHS 131 0 131 68
Hancock Fabrics 275 0 275 118
KFC 1,189 4,209 5,398 202
LJS 0 1,510 1,510 169
Longhorn Steakhouse 312 0 312 72
Einstein Brothers Bagels 443 81 524 31
Mr. Clean Car Wash 2 14 16 3
NPC International (Pizza Hut) 0 1,200 1,200 75
Total 2,352 7,783 10,135 ALL

8. Our Clients

9. Over 150 Years of
Collective Experience in the Category
TUACA APPLETON ESTATE JEFFERSON’S BOURBON
JAMAICA RUM

10. A Vibrant Segment!

11. The Shift Video

13. Smithsonian magazine, August 2010
Lalo Alcaraz, Chicano cartoonist, comic strip and illustrator of the book Latino USA.
GenYLA

14. Gen
YOUNG = Members of the global yout
community
Theyre
interchangeable LATINO = Specific to country of origin
AMERICAN = Part of the U.S.
culture
GenYLA

15. Today
(2012)
62% Half 1in5
of all U.S. of the total Hispanic
population is under
Teens are Hispanic
Hispanics are 25
U.S. born
Tomorrow
(2020)
66% 1/4 Fueled by
18-24-
of Teens
will be
of all 18-34-year-
olds will be
Hispanic
year- olds.
Hispanic
Source: US Census Projections 2010-2020
GenYLA

16. GenYLA

18. un café con I want a frappuccino
leche with whipped cream

20. Language Fluidity
HOME WORK SCHOOL
39% Spanish 74% English 80% English
w/ FRIENDS w/ HISPANIC RELATIVES
55% English 55% Spanish
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER 2010 PEW HISPANIC CENTER;
“BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER, 2009
GenYLA

21. Language
Spanish is here to stay, even among YLAs.
The majority of Young Latinos are
fluent in English and Spanish.
Mostly English
Spanish & English Only Spanish
Only English
Mostly
Spanish
SOURCE: NIELSEN MEDIA RESEARCH 2010-11 UEs; HISP P-18-34 LANGUAGE MARKET BREAKS. GenYLA

22. It’s not a third
world. Gen YLAs
slide back and
forth between
two cultures.
GenYLA

23. Retro Acculturation
Driven to rediscover their heritage
A Latino reawakening
Main triggers are life’s stages
Self-benefiting
Genuine cultural curiosity
From George... to Jorge
Source: Beyond Demographics Latino American Identity Segmentation 2010
GenYLA

24. Term Gen YLAs First Use
to Describe Themselves:
Country of Origin
52%
American
24%
Hispanic / Latino
20%
SOURCE: PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER, 2009
GenYLA

25. Highly Embracing Their Heritage
Over one-third of Gen YLAs identify with both their Latino and American
cultures.
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER, 2010

26. The World of the Social YLA
Which of the following best describes your close friends whom you
regularly spend time with?
SOURCE: MUN2 LANGUAGE STUDY, DECEMBER, 2010
GenYLA

27. Mexicanos en Miami

28. GenYLA

29. The Always-Connected Generation
For Gen YLAs technology is the new passport.
94%
internet
at home
87%
87% own a
mobile
stream video phone
content on the
internet What they do. What they have.
61%
own a
gaming
system
73%
stream/ listen to
music on the
internet 63% 73%
own a
want their laptop
friends to be
able to reach
them 24/7 53%
own an
iPod or
MP3 player
SOURCE: MUN2 DIGITAL STUDY DECEMBER 2010
GenYLA

30. What They Listen To Reflects Them

31. Gen YLAs Listen To A Wide Variety Of Music
29%
31%
40%
SOURCE: PEW HISPANIC CENTER; “BETWEEN TWO WORLDS ' HOW YOUNG LATINOS COME OF AGE IN AMERICA,” DECEMBER 2009
GenYLA

32. Activities Performed While Watching TV
37%
DO SCHOOL
WORK
YLAs do it all
at the same
time.
SOURCE: MUN2 LANGUAGE STUDY DECEMBER 2009
80%
EAT

33. TV Still Reigns Supreme
Among The Younger Set

34. Gen YLAs Consume Both Spanish
And English TV Equally
SOURCE: Nielsen Media Research NTIH Live+ Same Day 9/20/10 – 1/30/10 M-S 7PM-11PM
GenYLA

35. What They Watch Reflects Them
GenYLA

36. Speaking In Either Language…
Advertisers Are Taking Notice
Taco Bell Commercial

37. Pitbull “Dale…Let’s Get the Party
Started”
Bud Light commercial

38. Burger King ad Diet Pepsi ad

39. Kahlua is Intriguingly Delicious
Kahlua ad

40. A stampede of liquor brands are going
to TV as marketers seek broad
awareness for product launches or to
build new buzz on older brands.
TV Advertising: Currently 34% of all
media spend by category versus 23%
in 2005.
Cable still gets the bulk of the spend.

41. Explosion In Hispanic TV
Makes For Right Time To Invest
# of National Hispanic Networks
# of National Hispanic Markets
Prior to 1996 6
1998 10
2000 25
2002 33
2004 56
TODAY 75+
+
Deportes (24hr)
Noticias (24hr)
(Fall ’12)
TOMORROW
41
41

42. Why it matters
$827B in annual buying power.
$1 Trillion by 2015.
YLAs = 1/3 of all U.S. Hispanics.
YLAs are re-defining America’s
politics, consumption, media and pop
culture.
More & more iconic brands are targeting
them.
Sources: US Census PJ; Global Insight, Inc. Hispanic Market Monitor 2010
GenYLA

43. LET’S TALK ABOUT THESE LATINOS
AND THEIR ATTITUDES AND USAGE
AROUND SPIRITS
Looking at Vodka, Tequila and Whiskey

44. Vodka: The Biggest Selling Spirit
And Commands the Most Market Share
But not as popular yet with
the Hispanic Segment.
Mintel/Experian Simmons 2011 NHCS
44

45. U.S Born Hispanics Most Likely
To Be Vodka Drinkers
Mintel/Experian Simmons 2011 NHCS

46. The YLA’s Seen as a Good Source
For New Vodka Drinkers
Mintel/Experian Simmons 2011 NHCS
46

47. Those Who Are Bilingual
Consume the Most Tequila
Mintel/Experian Simmons 2011 NHCS

48. Whiskey: Little Penetration With Hispanos
Mintel/Experian Simmons 2011 NHCS

49. The Latina Spirits Drinker
Ways in which consumers drink hard alcohol/distilled spirits, by gender and
age, November 2011
%
0 20 40 60 80
Mixed with juice
Mixed with soda/soft drink
Used in a specialty cocktail (i.e. Margarita, Martini, etc.)
On the rocks/with ice
As a shot
Neat/straight up
Mixed with tonic
Mixed with energy drinks
With water
In coffee
Mixed with milk/eggnog
Other
Men, 21-34 Men, 35-54 Men, 55+* Women, 21-34 Women, 35-54
Base: 401 Hispanic adults aged 21+ who drink spirits and have internet access
*Small sample size, used for illustrational purposes only. 49
Source: Mintel

50. An example of our process and innovation
designed to maximize efficiency and generate
return on investment targeting the Young Adult
Hispanic Consumer

51. LATINO FORWARD
CA Latino Forward Video

52. It Started With International
CARIBBEAN
CaribLA is the Second Largest YRI FBU
Bahamas Islands
Cuba Dom. Rep.
US VI Anguilla
Anguilla
St.. Martin
• 47 Countries (We supported 34)
Haiti Puerto Rico Antigua
Jamaica Barbuda
St. Kitts / Nevis
Dominica Guadeloupe
Martinique
CENTRAL AMERICA Aruba
St. Vincent / the
Grenadines
St.. Lucia
Barbados
• 5 Languages
Grenada
Netherlands
Antilles
Belize Curacao Trinidad / Tobago
Guatemala Honduras
SOUTH AMERICA
Nicaragua
Panama
• 290MM Urban Population
Costa Venezuela
Rica
Colombia
• 63% of Population under 30 Years of
Ecuador Age
Peru
Brazil •Second Largest YRI FBU $ 1Billion in Sales
Bolivia
•KFC is + 70% of CaribLA Total Net Sales
Chile
Argentina
Uruguay

53. Enlisted To Generate
Marketing Momentum & Sales
How We Did It!
Recommended targeted communications to
reach the young adult (21-34) consumer:
- Included advertising associated with
new product launches
- Engaged new properties and tie-ins with
movie studios
- Worked with the NBA

54. The Bottom Line..? The Bottom Line!

55. We Translated Success from International to
Domestic, Too!
Leveraging insights gained from our international
experience, we engaged our client to target YLAs
with campaigns to support new products.

56. KFC Enjoys Highest Share Increase in its History
General Market National Hispanic Market
Share of Chicken Chain Occasions Share of Chicken Chain Occasions
90% 90%
83%
80% 80%
70% 70%
60% 60%
56%
50% 52%
50%
47%
46% 44%
40% 42% 40% 42% 40%
34%
30% 30%
20% 20%
10% 10%
0% 0%
2010 Q 1 2010 Q 2 2010 Q 3 2010 Q 4 2011 Q 1 2010 Q 1 2010 Q 2 2010 Q 3 2010 Q 4 2011 Q 1
KFC Church's Popeyes Boston Market Chick-fil-A KFC Church's Popeyes Boston Market Chick-fil-A
Hispanic Dollars Working Very Hard for the Brand!

57. Don’t come to me with any of your ideas, I have no time,
can’t you see I’m in the middle of a battle?

58. And We’re Right Down the Street, Too!
Creative Alliance
Brown Forman

59. Thank you!
İSalud!
For questions or additional information, please
feel free to contact Debbie Scoppechio at
502.214.2969 or DebbieS@cre8.com.

60. APPENDIX

61. Hispanics and Alcohol Beverages What we think
Hispanics are
Hispanics are the fastest growing consumer group in the U.S., with almost every consumer products company vying for their attention by media. Aside from beer
companies, most consumer
and dollars. The beverage alcohol industry is no exception. But which beverages Hispanics consume is determined by country of origin,
product entities have not
income, acculturation, and age. Hispanic Millennials are revolutionizing the spirits industry. made adequate investments
in Hispanic marketing. Those
companies that have invested
Among both sexes, wine consumption increases with age. But as they get olde r, the
adequately in this market
upward trajectory is far steeper for Hispanic men than for women.
are seeing the results, within
their category; they are the
preferred brand among
Hispanics. Historically, liquor
advertising to Hispanics
has revolved largely around
tequila and beer but today
we see vodka and wine
advertisers enticing the
Hispanic consumer.