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Hispanictrends2008slideshare

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A look into consumer macro trends affecting the Hispanic consumer

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Hispanictrends2008slideshare

  1. 1. HISPANIC MACRO TRENDS AP+R APRIL 24, 2008
  2. 2. CULTURAL AUTHENTICITY LATINA POWER DOLLAR & SENSE EL VERDE ES VIDA
  3. 3. Cultural Authenticity
  4. 5. Why ?
  5. 6. Latinos are Looking…
  6. 7. Authentic
  7. 8. Flavors Textures Aromas Colors
  8. 10. Spanish The emotional language
  9. 11. Brands responding…
  10. 12. Latin American brands invasion
  11. 13. The landscape is changing…
  12. 14. 125 in Phoenix
  13. 15. Culturally friendly environments
  14. 16. What can we do?
  15. 17. Reach out Fla vor ful experience Appeal Love for brand +
  16. 18. Thought Starters <ul><li>Strengthen relationship with our consumers </li></ul><ul><li>Start thinking about offer appealing flavors for Latinos </li></ul><ul><li>Build an inviting environment at the POP </li></ul><ul><li>Think about placing our product in Mercados or Carnicerias </li></ul>
  17. 19. Latina Power 2007 $806 billion
  18. 20. Bicultural 58k Affluent Time crunch
  19. 21. 62% Blogs, Chats, forums, banking, dating, online communities 43% Uses the Internet during the weekend Source: Simmons NCHS Adult study, Agee 23-35
  20. 22. 1997 to 2007 # of businesses owned by Latinas 121% 856,782 today $67 billion Source: Center of Women’s Business Research, 2007
  21. 23. How do we keep talking to them ?
  22. 24. Empowerment Confidence Celebrate her moment Indulge Positive reaction toward the brand +
  23. 25. Thought Starters <ul><li>We are #1 , we have the right to initiate an intimate conversation </li></ul><ul><li>Communicate indulgence through product platform </li></ul><ul><li>Understand that her sensitivities differ from our brand. </li></ul><ul><li>Celebrate her accomplishments . Be her biggest fan </li></ul>
  24. 26. Already there…
  25. 27. “ El verde es vida”
  26. 28. Consumer segmentation by level of “greenness” People Behavioral Greens : Consumers who think and act green. They have negative attitudes towards products that pollute the environment and incorporate green practices on a regular basis. Aware Think Greens : Consumers who think like green consumers but don't always necessarily act green. Potential Greens : Consumers who neither behave nor think along particularly environmentally conscious lines but remain on the fence about key green issues . True Browns : Consumers who are not environmentally conscious and may actually have negative attitudes about heavy environmental focus. Source: Simmons Research, 2008
  27. 29. For Latinos <ul><li>Immigration </li></ul><ul><li>Employment </li></ul><ul><li>Healthcare </li></ul><ul><li>Limited resources </li></ul><ul><li>Country of origin education </li></ul><ul><li>Overall living conditions </li></ul>
  28. 30. Consumer segmentation by level of “greenness” People Behavioral Greens : Consumers who think and act green. They have negative attitudes towards products that pollute the environment and incorporate green practices on a regular basis. Aware Think Greens : Consumers who think like green consumers but don't always necessarily act green. Potential Greens : Consumers who neither behave nor think along particularly environmentally conscious lines but remain on the fence about key green issues . True Browns : Consumers who are not environmentally conscious and may actually have negative attitudes about heavy environmental focus. Source: Simmons Research, 2008 LATINOS ?
  29. 31. 72% USH 47% NWH Acculturation Education Affluence
  30. 32. Organic = Green 13.8 billion business in 2006
  31. 33. The organic market <ul><li>Health market </li></ul><ul><li>Food tastes better </li></ul><ul><li>Better quality of products </li></ul><ul><li>Against preservatives </li></ul><ul><li>Organic market </li></ul><ul><li>Concerned with the environment </li></ul><ul><li>Support farmers </li></ul><ul><li>Save the earth </li></ul><ul><li>Price is not important </li></ul>Source: The Organic food market, Michigan State University, 2007
  32. 34. The Hispanic organic consumer USH and NWH are consuming equally organic/natural foods 25% Hispanics 23% NWH Spanish dom. Bilingual 21-59 35% 29% Source: Simmons Spring 2007 NHCS Adult Full Year
  33. 35. Watch out Diet ≠ organic/natural 11.6% USH 11.3% NWH Source: Simmons Spring 2007 NHCS Adult Full Year
  34. 36. 1. Fruit and vegetables 2. Cereal and breads 3. Milk, Yogurt and dairies 4. Packaged goods
  35. 37. $300 million 2007 No. 3 in the U.S . Environmental values 1% USH
  36. 38. Where do you want to be? Food sector Overall <ul><li>Cannon </li></ul><ul><li>Nike </li></ul><ul><li>Unilever </li></ul><ul><li>6. Stonyfield farm </li></ul><ul><li>27 . General Mills </li></ul><ul><li>60. Burger King </li></ul><ul><li>Unilever </li></ul><ul><li>Stonyfield farm </li></ul><ul><li>Coca-Cola Company </li></ul><ul><li>Group Danone </li></ul><ul><li>Kraft Foods </li></ul><ul><li>Nestle </li></ul><ul><li>General Mills </li></ul>
  37. 39. How de we talk to the Latino green consumer? Health Flavor We can save the environment cultural & personal benefits of going green + Empower Latinos to buy the brand
  38. 40. Dollar & sense era
  39. 41. Source: AAA AVG. MILK PRICE $3.6 p/g GAS PRICES CALIFORNIA FLORIDA TEXAS $ 3.8 p/g $ 3.5 p/g $ 3.4 p/g
  40. 42. “ Recession affects my economy” 60% 75% USH 78% AA 68% NWH
  41. 43. Recession Tighter budgets Selectivity of brands
  42. 44. Source: A retailers report ‘dismail’ holiday sales as buyers cut back, Associated Press, 2008 Latinos likely to trade down, not out Loyal Pragmatic Rational Downsize Downgrade Trade out
  43. 45. CAKES YOGURT ICE CREAM COOKIES FRUIT 26.4% 9.9% 8.9% 5.6% 4.1% % of Individual Hispanic Afternoon Snack Meals Source: National Eating Trends Hispanics, 2004 Over index 186 to non-Hispanics
  44. 46. YOGURT POPCORN ICE CREAM COOKIES FRUIT 26.8% 11.5% 6.4% 5.5% 3.3% % of Individual Hispanic Morning Snack Meals Source: National Eating Trends Hispanics, 2004 Over index 289 to non-Hispanics
  45. 47. What to do ?
  46. 48. <ul><li>Monitor behavior </li></ul><ul><li>Understand competitive set </li></ul><ul><li>Consistently build your equity </li></ul><ul><li>Concentrate on value over price </li></ul><ul><li>Uncover the emotions behind the behaviors </li></ul>
  47. 49. Sources <ul><li>American Automobile Association (AAA) </li></ul><ul><li>Economic downtrun POV. Bromley Communications, 2007 </li></ul><ul><li>Center of Women’s Business Research, 2007 </li></ul><ul><li>Green Options media Inc. </li></ul><ul><li>Iconculture research </li></ul><ul><li>Simmons Spring 04-2007 NHCS Adult full year unified study </li></ul><ul><li>Gynther, M. (2008) Stonyfield stirs up the yougurt market. CNN Money. Kochhar. R. (2003). Jobs Lost, Jobs Gained: The Latino Experience in the Recession and Recovery. The Pew Hispanic Center. </li></ul><ul><li>N.A. (2008). Trend-Tracker: What’s in Store for 2008? </li></ul><ul><li>N.A. (2008). Fresh, super and organic top trends for 2008. Food Navigator. </li></ul><ul><li>NPD study, 2006 </li></ul><ul><li>The Organic food market. Michigan State University, 2006 </li></ul><ul><li>People going green; Green the Eco-Friendly Lifestyle. </li></ul>
  48. 50. ?

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