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Destination + Impulse     How to influence attitudes   and motivate shopper behavior       in the Hispanic market          ...
Destination: What NOT to do   “Do NOT touch merchandise on display”               “Do NOT bother the staff”  “Ask for assi...
Impulse: What NOT to do
Impulse: What NOT to do
Impulse: What NOT to do                             I’d rather die   of                           pneumonia than          ...
Destination + Impulse                    What drives a “Destination”?                    What motivates “Impulse”?Most imp...
Watt International: what we do
Shaping retail in Latin America for over 20 years
Shaping retail in Latin America for over 20 years
Shaping retail in Latin America for over 20 years                     Soriana slide?
Defining Hispanic retail in America “Launched in June 2009, the Supermercado de Walmart is already exceeding expectations....
Sample Strategic Support: Recommended Allocation of Fresh Area    Process for recommending area allocations:    •    Area ...
Influencing attitudes; motivating behaviors                                      Left Brain + Right Brain        bridging ...
Some fresh thinking to consider…1.  The Hispanic consumer/shopper:    What we know
The growing Hispanic population in America:bringing new challenges and opportunities for retailers•  50 million Hispanics ...
The growing Hispanic population in America:More family-focusedLarge families      Half of Hispanic households comprised o...
Hispanic Consumer in the USAHispanics tend to acculturate more than assimilateIsolated                                    ...
Hispanic Consumer in the USAHispanics tend to acculturate more than assimilateIsolated                        Hybrid/ Bicu...
Images of children to drive family inspiration
Hispanic Cultural CharacteristicsRegardless of level of acculturation, Hispanics;    • Stronger attachment to, and a sense...
Some fresh thinking to consider…1.  The Hispanic consumer/shopper:    What we know2.  Creating stores as “Destination”
Trip Drivers               Hispanic Shopping Behavior                                            Source; Unilever Research
What makes this an “amazing retail experience”?                                                  Products, People and ener...
ServiceHispanics respond strongly to personalized service,whether to:      assist in overcoming language barriers      e...
Service PerceptionQuestion: How many brand experiences demonstrate “Superior Service”?CompanyExecutives = 80%Customers =  ...
Seasonality•    70 nationally-recognized holidays vs. 43 in the US•    Gift giving is much more common within the     Hisp...
Affordable Children’s Toys•    Hispanic moms like to reward their children with inexpensive toys•    teenagers like to buy...
Beauty + Personal Care•    Attitudes towards beauty intertwined with aspiration, and     use brands to derive emotional sa...
Walgreens Express MakeoverVirtual makeover booth at Walgreens features abuilt-in camera for customers to take their pictur...
Market Perception              Hispanic Shopping Behavior                                           Source; Unilever Resea...
El Super     Ranch Market    Superior WarehouseEl Tapatio   HEB Mi Tienda   Food CityVallarta     Carnaval        Fiesta
Hispanic NeighborhoodVallarta SupermarketsStore Design/ Layout•  Merchandising (departmental signing and decor) was simple...
Creating integrated brand experiences                                                        Brand Image                  ...
rewardssocial         PRX!         Personal Retail eXperience!                                       access               ...
Creating destination through PRX
Some fresh thinking to consider…1.  The Hispanic consumer/shopper:    What we know2.  Creating stores as “Destination”3.  ...
Is it Destination or Impulse?
The growing Hispanic population:Media influences on shopping behavior1.      49% of U.S. Hispanics who watch television du...
Whatever the case, the package still rules!
But don’t let historical truisms lead you astray
Driving impulse through strategic cross promotionQuestion:                                                          Questi...
Experience Mapping:the RIGHT message, in the RIGHT place, delivered in the RIGHT way
Driving Impulse: bringing retail to the people     Self-Service Vending Machines
Hispanic shopping behavior – new mediaPapa John’sA greater proportionof Hispanic customersplace orders usingcellphones.htt...
Driving Impulse: bringing retail to the peopleTesco’s Home Plus grocery stores in South Korea haveposted virtual stores in...
Driving Impulse: virtual couponsVirtual Coupons Virtual butterflies appear on consumers phones as they approach one of the...
Catering to Hispanics: what’s out thereThe most common tactics employed by US retailers involve:•    Adjusting the environ...
Other winning strategies to consider•    Sensory engagement – demos, sampling, motion, music, touching, etc. will all supp...
Perdido en la traducción:  Don’t just translate content into other languages –connect with your Hispanic customers in a re...
Destination + Impulse     Gracias por su tiempo!            Patrick Rodmell        prodmell@wattintl.com
Destination + Impulse - How to Influence and Guide Hispanic Shopper Behavior
Destination + Impulse - How to Influence and Guide Hispanic Shopper Behavior
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Destination + Impulse - How to Influence and Guide Hispanic Shopper Behavior

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Patrick Rodmell's Destination + Impulse Presentation for Hispanic Retail 360 Conference.
August 10-11th, 2011
http://www.hispanicretail360.com/

Published in: Design, Technology, Business
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Destination + Impulse - How to Influence and Guide Hispanic Shopper Behavior

  1. 1. Destination + Impulse How to influence attitudes and motivate shopper behavior in the Hispanic market Patrick Rodmell prodmell@wattintl.com
  2. 2. Destination: What NOT to do “Do NOT touch merchandise on display” “Do NOT bother the staff” “Ask for assistance ONLY IF you are going to make a purchase” “Do NOT thank the staff for a free look” “Do NOT complain about the hours of operation or make personal enquiries”
  3. 3. Impulse: What NOT to do
  4. 4. Impulse: What NOT to do
  5. 5. Impulse: What NOT to do I’d rather die of pneumonia than deal with the headache of choosing the right medicine!
  6. 6. Destination + Impulse What drives a “Destination”? What motivates “Impulse”?Most importantly, how are they connected in our new Mobile World? How does this apply to the Hispanic Consumer/Shopper?
  7. 7. Watt International: what we do
  8. 8. Shaping retail in Latin America for over 20 years
  9. 9. Shaping retail in Latin America for over 20 years
  10. 10. Shaping retail in Latin America for over 20 years Soriana slide?
  11. 11. Defining Hispanic retail in America “Launched in June 2009, the Supermercado de Walmart is already exceeding expectations.” (Source: Wal-Mart press release)
  12. 12. Sample Strategic Support: Recommended Allocation of Fresh Area Process for recommending area allocations: •  Area for recommended allocations have been compared with Hispanic retailers audited. The purpose was to ensure best fit and relevance for Wal-Mart to target Hispanic consumers. •  Categories classified as Win, Play and Show were based on audit of Hispanic retailers, analysis of consumer research and Hispanic food spending study.Retailers Serviced Packaged Serviced Serviced Produce Dairy Serviced Torilleria Cocina Meat Meat Fish Bakery (linear ft) Deli (linear ft) (linear ft) (linear ft) (linear ft) (linear ft) (linear ft) (linear ft) (linear ft)Food City 32’ 80’ 28’ 36’ 80’ wall 153’ - 36’ 48’55,000 sq. ft. 560’ (total)Superior 48’ 100’ 32’ 36’ 80’ wall 60’ - 8’ -33,000 sq. ft. 560’ (total)Ranch Market 48’ 56’ 36’ 60’ 60’ wall 43’ 24’ 24’ 60’25,200 sq. ft. 316’ (total)Vallerta 24’ 36’ 12’ 24’ 100’ wall 51’ 24’ 16’ 26’20,000 sq. ft. 332’ (total)El Super 36’ 40’ 12’ 24’ 80’ wall 130’ 36’ 24’ -14,000 sq. ft. 240’ (total)Recommendationfor WMImportance for WM Conclusion: •  Recommended allocation for Fresh area is x% of total sales area. •  The specified area and categories recommended are a sub-set of recommended x%. •  Area allocated for Win categories meets or exceeds average allocated linear feet. •  Area allocated for Play and Show categories meet or are below average allocated linear feet.
  13. 13. Influencing attitudes; motivating behaviors Left Brain + Right Brain bridging the gap between: Every consumer decision is driven by a combination of emotional and rational influences What are the factors that make the Hispanic Consumer/shopper unique?
  14. 14. Some fresh thinking to consider…1.  The Hispanic consumer/shopper: What we know
  15. 15. The growing Hispanic population in America:bringing new challenges and opportunities for retailers•  50 million Hispanics in the US, from 20 countries, representing one in every six residents (+42% since 2000)•  Geographically concentrated – 50% California and Texas; 76% in eight states•  Younger, traditional, family-focused•  Typically make a higher rate of Major Stock up and Fill-in trips, and far fewer Quick trips•  Hispanics are adopting the internet twice as fast as the general market – 14 % growth vs. 7 percent.
  16. 16. The growing Hispanic population in America:More family-focusedLarge families   Half of Hispanic households comprised of 5 or more   Multigenerational and extended families often live together   Hispanics tend to shop and make decisions as a groupFocus on Kids   53% of Hispanic households in U.S. have children at home   Latinos spend more on children’s clothing and toys than the average population   25% of Hispanics in U.S. are younger than 18 (34% in California)Link with extended family in USA and abroad   Geographic proximity makes frequent travel to the country of origin easy   48% of Californian Latinos are likely to send money to family back home and across the country
  17. 17. Hispanic Consumer in the USAHispanics tend to acculturate more than assimilateIsolated Hybrid/ Bicultural Integrated  First generation, foreign born   Middle class foreign born   Third generation  About 10% - 13% of Hispanic population   Children of immigrants parents   Speak less or no Spanish  Working class who migrate to U.S. for economic   Represent 55% - 57% of Hispanic population   Consumption pattern similar to reasons   Higher level of education general U.S  Most never completed high school   Greater English proficiency   May or may not identify  Little or no English proficiency   Spanish predominant (75%) themselves culturally as Hispanics  Tend to locate close to family and friends   Higher income, employed in blue/white collar   Around 22% of Hispanic  Plan to someday move back to the country of occupations population origin   Do not tend towards a simple/single demographic   Smaller families  Consumption patterns similar to place of origin – profile   Lean toward individualism most divergent than U.S. general population   Are the largest and fastest-growing segment (an   Self oriented  Tend to operate on a cash basis annual rate of +11.9%)  Rely on public transportation rather than owing cars  Have limited access to technology such as cell phones, computers and internet  Don’t have health or other insurance
  18. 18. Hispanic Consumer in the USAHispanics tend to acculturate more than assimilateIsolated Hybrid/ Bicultural Integrated Today’s opportunityRelatively unacculturated Partially acculturated Mostly acculturated
  19. 19. Images of children to drive family inspiration
  20. 20. Hispanic Cultural CharacteristicsRegardless of level of acculturation, Hispanics; • Stronger attachment to, and a sense of pride in, heritage • More positive feelings and respect for the elderly • Give greater importance to holidays and celebrations • Have more family meals and drink less alcohol • Pay more attention to fashion, grooming and appearance • Appreciate the personal nature of close relationships.
  21. 21. Some fresh thinking to consider…1.  The Hispanic consumer/shopper: What we know2.  Creating stores as “Destination”
  22. 22. Trip Drivers Hispanic Shopping Behavior Source; Unilever Research
  23. 23. What makes this an “amazing retail experience”? Products, People and energy!
  24. 24. ServiceHispanics respond strongly to personalized service,whether to:   assist in overcoming language barriers   establish personal connections   achieve statusProduct sampling and one-on-one personalcommunication are particularly effective tools forconverting sales with Hispanic consumers.
  25. 25. Service PerceptionQuestion: How many brand experiences demonstrate “Superior Service”?CompanyExecutives = 80%Customers = 8%   Great service can overcome a bad store; a great store can’t overcome bad service
  26. 26. Seasonality•  70 nationally-recognized holidays vs. 43 in the US•  Gift giving is much more common within the Hispanic community (e.g. Valentine’s Day)
  27. 27. Affordable Children’s Toys•  Hispanic moms like to reward their children with inexpensive toys•  teenagers like to buy trinkets to show their affection to each other
  28. 28. Beauty + Personal Care•  Attitudes towards beauty intertwined with aspiration, and use brands to derive emotional satisfaction•  Image of beauty focused on full bodies over faces only•  Celebrity endorsements elevate perceptions•  Hispanics retain strong separations between gender roles and attitudes towards personal care.
  29. 29. Walgreens Express MakeoverVirtual makeover booth at Walgreens features abuilt-in camera for customers to take their pictureand experiment with various looks while in store.
  30. 30. Market Perception Hispanic Shopping Behavior Source; Unilever Research
  31. 31. El Super Ranch Market Superior WarehouseEl Tapatio HEB Mi Tienda Food CityVallarta Carnaval Fiesta
  32. 32. Hispanic NeighborhoodVallarta SupermarketsStore Design/ Layout•  Merchandising (departmental signing and decor) was simple with a credible, rustic Mexican feel. •  High lighting levels brought out the color of the produce and made the environment seem fresh and bright. •  There was a large and impressive cremeria with an array of fresh cheeses, yogurts, and a large dairy offering.•  The cocina area is in adjacent to the store and is combined with the bakery, coffee shop, aguas frescas, hot table and a tortilleria.
  33. 33. Creating integrated brand experiences Brand Image Name Identity Colors, Fonts Internal Communications Public Relations Marketing Sponsorships Advertising Events Website Launches Social Media Promotions HR Business Planning Recruitment Store Formats Retention Store Operations Training Price Programs Incentives Supply Chain Rewards Strategic Partnerships Offering Store Environment National brands Architecture Private label Décor Services Layout As a CPG, make sure you understand your customers’ brand strategy, particularly as it relates to the Hispanic market
  34. 34. rewardssocial PRX! Personal Retail eXperience! access entertaining
  35. 35. Creating destination through PRX
  36. 36. Some fresh thinking to consider…1.  The Hispanic consumer/shopper: What we know2.  Creating stores as “Destination”3.  Driving “Impulse”
  37. 37. Is it Destination or Impulse?
  38. 38. The growing Hispanic population:Media influences on shopping behavior1.  49% of U.S. Hispanics who watch television during prime-time hours, watch Spanish language programming2.  Listen to the radio 13% more than the rest of the population3.  Welcome direct mail as a means of becoming a more informed consumer - 3.5 times more likely to respond to a direct mail solicitation than a non-Hispanic household4.  38% of Hispanics surveyed found English language ads less effective than Spanish ads in terms of recall and 70% less effective than Spanish ads in terms of persuasion.Source; Heinrich Hispanidad
  39. 39. Whatever the case, the package still rules!
  40. 40. But don’t let historical truisms lead you astray
  41. 41. Driving impulse through strategic cross promotionQuestion: Question:Which beverage do you prefer? Which combination of beverage and chip do you prefer? 45% 38% 34% 32% 28% 23% Insight: The flavor combination changed the participants ranking of the CSD beverage, suggesting that a consumer’s enjoyment of a CSD beverage is effected by the food it’s paired with.
  42. 42. Experience Mapping:the RIGHT message, in the RIGHT place, delivered in the RIGHT way
  43. 43. Driving Impulse: bringing retail to the people Self-Service Vending Machines
  44. 44. Hispanic shopping behavior – new mediaPapa John’sA greater proportionof Hispanic customersplace orders usingcellphones.http://espanol.papajohns.com
  45. 45. Driving Impulse: bringing retail to the peopleTesco’s Home Plus grocery stores in South Korea haveposted virtual stores in Korea’s subway system, enablingcommuters to shop using their smartphones to scan a QRcode, while they wait for their train.Attracted 10,000 new shoppers and raised online sales by130 percent.
  46. 46. Driving Impulse: virtual couponsVirtual Coupons Virtual butterflies appear on consumers phones as they approach one of the participating shopping centers. Shoppers must “catch” the butterflies in order to activate the coupons.
  47. 47. Catering to Hispanics: what’s out thereThe most common tactics employed by US retailers involve:•  Adjusting the environmental to create a warmer, more festive décor•  Adjusting plan configurations to provide a meandering, market like atmosphere•  Providing bi-lingual way-finding and environmental graphics programs•  Providing and identifying Spanish speaking associates•  Providing community based programs and Spanish language solution centers.
  48. 48. Other winning strategies to consider•  Sensory engagement – demos, sampling, motion, music, touching, etc. will all support destination AND impulse behavior in Hispanics•  Focus on New Media – digital and mobile should be key areas of focus•  Seasonality + Service – key opportunities to connect and be relevant.
  49. 49. Perdido en la traducción: Don’t just translate content into other languages –connect with your Hispanic customers in a relevant way.
  50. 50. Destination + Impulse Gracias por su tiempo! Patrick Rodmell prodmell@wattintl.com

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