Hispanic Marketing - BeefRetail.org

Hispanic Marketing

Hispanic Population• Largest ethnic group in the U.S., at 50.5million consumers and growing• 16% of the total population• Those of Cuban, Mexican, PuertoRican, South or Central American, orother Spanish culture or originregardless of race• Hispanic population is driving overallpopulation growth at +43% (vs. +4.9%non-Hispanic)• 130 million Hispanic consumers inthe U.S. by 2050, 30% of the totalpopulationSource: 2010 U.S. Census. 2010 Bureau of Labor Statistics Consumer Expenditure Survey. The MulticulturalEconomy, Selig Center for Economic growth

Hispanic Population by Region• Northeast – 13.9%• Midwest– 9.2%• South– 36.1%• West – 40.8%Source: United States Census Bureau Webinar-5/26/10

Beef Consumption• Hispanic consumers will spend morethan $1.3 trillion in 2014• Heavy beef users• Consume 12% to 13% of all beefsold• Eat beef more than twice as often asthe average consumer• 86% of Hispanics consume 4 to 5beef meals per week, compared to 2to 3 for the general populationSource: Quantitative Hispanic Retail Shopper Study, 2007, funded by The Beef Checkoff Program.

Hispanic Buying Habits• Women tend to be primaryshoppers• Hispanic women who shop witha list buy 90% of the items ontheir list, and are likely to mealplan and use paper coupons• 50% more likely to be childinfluenced• Perceive home cooked meals ashaving more nutritional value thanprepackaged meals• Celebrations are important to theHispanic population, and centeredon food, family and friendsSources: 2011ConAgra Foods Hispanic Research; National Provisioner Online article, Shopping by Hispanic Males, February 2013

Beef Buying Habits in Retail• The Hispanic population is the highest spenders on freshand frozen meat in the U.S.• Spend $964 on meat products each year, comparedto $760 spent by other demographics• Spend 42% more on beef than the average shopper• Visit grocery stores three times more often than thegeneral population• Two thirds of Hispanics purchase from a butcher at leastonce a month; three fourths also buy from the prepackagedmeat case in the supermarket• 72% say that a store’s meat department is a powerfulmotivator in selecting a retailer• Hispanics visit grocery stores three times more oftenthan the general population

Marketing to the Hispanic Shopper• A Hispanic marketing campaign pilot test with a regionalretailer included:• Dedicated Hispanic section within the meat department• Foundational Hispanic cuts were merchandised and displayed• Branded line of offal products was launched• Displayed Hispanic program materials• Increased beef sales, shoppingfrequency and purchase of beefpackages per trip• 100% of shoppers said they wouldrecommend the retailer• Average number of beef purchasesincreased from 2.7 to 3.2 packagesper trip• Grocery shopping trips increasedfrom 8.2 trips per month to 11.1 tripsper month

Marketing to the Hispanic Shopper• Proven best practices based on pilot testresults:• Display bilingual signage, labels andrecipes• Provide expiration dates and “USDAInspected” stamps on beef packages• Price beef competitively to appeal to pricesensitiveconsumers• Hire a Spanish-speaking butcher• Post signage that reads, “Carnicero quehabla español en servicio/Spanish-speakingbutcher available”• Pay attention to questions and needs, andlearn from their beef requests andpurchasing choices

Marketing to the Hispanic Shopper• Create a Hispanic section in your meat case;merchandise and display highly-demandedcuts• 72% of Hispanic consumers say a store’s meatdepartment is a powerful motivator in selecting aretailer• Thinly-sliced meats for carne asada,milanesas and arracheras• Flank Steak (falda)• Skirt Steak (arrachera)• Top Sirloin Steak (aguayón)• Top Loin Steak (aguayón, lomo)• Less expensive cuts for shredded beef disheslike ropa vieja• Chuck Eye Steak (diezmillo)• Round (bola, pulpa)• Eye of Round (cuete)• Beef for Kabobs (trocitos de carne)

Buying Habits in Foodservice• The Hispanic population also has a strong influence atfoodservice• Seek authentic ethnic foods and beverages and abilingual-friendly atmosphere• 69% say that restaurants are an ideal place to spendquality time with family• Almost half prioritize a family atmosphere (vs. 36% ofthe general population)• 44% of Hispanics are much more likely to visitoperations that advertise in SpanishSource: Technomic Blog, Hitting a High Note with Hispanic Foodservice Consumers; May 1, 2013

Hispanic Marketing:QUIZ1. Why should beef retailers pay increased attention toHispanic consumers?A. Hispanic population is driving overall populationgrowthB. There are more than 50 million Hispanics living in theUnited States todayC. Hispanic buying power is expected to grow to $1.4trillionD. All of the above2. True or False: The Hispanic population consumes morebeef than other consumer demographics

Hispanic Marketing:QUIZ3. You can increase the relevance of your meat departmentto Hispanic consumers by:A. Emphasizing impulse purchasesB. Offering couponsC. Eliminating all Spanish signageD. None of the above4. True or false: Hispanics have emerged as the highestspenders on fresh and frozen meat in America.

Hispanic Marketing:QUIZ5. How much more do Latino households spend on meatthan do general-market households?A. Around $200 more annually ($964 versus $760)B. Only about $50 more annuallyC. Roughly two times as much: $1,000 versus $500D. Not enough to make a real difference to retailers.6. True or false: Roasts and ribs are popular cuts tomerchandise to this audience.

Hispanic Marketing:QUIZ KEY1. D. All of the above. (See slide 2)2. True (See slide 4)3. B. Offering coupons (See slide 5)4. True (See slide 6)5. Around $200 more annually ($964 versus $760) (Seeslide 6)6. False (See slide 8)

Resources• Bilingual Beef Cut Chartshttp://BeefRetail.org/beefcutcharts.aspx• Hispanic Marketing Program in Retailhttp://BeefRetail.org/hispanicmarketingprogram.aspx• In-market pilot test resultshttp://BeefRetail.org/hispanicin-markettestresults.aspx• Bilingual POShttp://BeefRetail.org/bilingualpos.aspx• Bilingual on-pack recipe labels:http://BeefRetail.org/bilinguallabels.aspx• Bilingual cooking and cutting videoshttp://BeefRetail.org/consumereducationvideos.aspx• Bilingual Beef nutrition materialshttp://www.BeefNutrition.org/spanishmaterials.aspx