Th Hi i C The Hispanic Consumer Landscape -...
Transcript of Th Hi i C The Hispanic Consumer Landscape -...
Th Hi i C The Hispanic Consumer Landscape Landscape January 23, 2012y ,
Table of Contents
Pages• Hispanic Demographics and Economic Trends ………………….. 3 – 18
• Hispanic Insights and Behavior……………………………………… 19 – 31
• Implication for Bowling Centers……………………………………… 32 – 39
Hispanic Demographics and Economic Trends
Hispanics represents over half of U.S. Population Growth This Decade…
2000 - 2010Hispanic
102.6
The segment will continue to grow exponentially
N % f t t l59.7
73
87.7
African-AmericanAsian/ Pacific Islander
New People
% of total population growth
14.5 million 52%
47.8
New People % of total population
New People % of total population
2010 2020 2030 2040 2050
Projected US Hispanic Population (in millions)
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p pgrowth
3.8 million 14%
p pgrowth
3.9 million 14%
j p p ( )
Source: US Census Bureau
5
…..with tremendous growth projections!
276%
Hispanics are the fastest%growing population segment…
And will become the largestsegment of the new majority
238%
143%
207%
181%
8% 9%
65% 60% 56% 51% 46%
14%
77%
37%
88%
41% 60%44%
29%
128%
80%
4%5% 6% 5%3%
16% 19% 23% 27% 30%14% 14% 14% 15% 15%5% 6% 7%
8%
3%2010 2020 2030 2040 2050
Hispanic Black Asian White Non-Hispanic
2010 2020 2030 2040 2050
Hispanic Black Asian White Non-Hispanic
P j t d G th f P l ti S t P j t d R l ti Si f S t
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Source: Nielsen
Projected Growth of Population Segments Projected Relative Size of Segments
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Hispanic population are mainly located in CA, TX, FL, AZ, NY,NJ and IL Markets
WANY
PA
WI12
MNOR
WY
ID
CT
ND
MI4
MT
SD
MA
RICAIL
NY
1
PA15
UT7
IA5
KS
VA3
IA1
OH
KY
WVNE
MO
AZIL
NJ
NM 35 GA
22
AR 2
AL2
SC
MS1
NC12
OK12
TN7TX
FL21LA 6
Hispanic Markets
Primary Pop. in Market
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p
7
Source: Geoscape Population statistics
Top Cities projectionsProjected US Hispanic Population
Growth 2000 ‐2015
Los Angeles 32.4%New York 28.2%Houston 78 5%
1990 Projected US Hispanic Population
Houston 78.5%Dallas-Ft. Worth 104.1%Chicago 48.9%Miami-Ft. Lauderdale 36.4%San Francisco-Oakland-San Jose 39.1%Phoenix (Prescott) 93.9%San Antonio 44.0%
48%51%
55%49%
55%
200020102015
32% 33%
48%
40%
28%
40%
45%
35%
28%
47%
30%30%
36%
32%
47%
15%
20%
12%10%
15% 16%19% 20%
16%19%
23%21%
23%21%
22% 24%22%
Los
Ange
les
New
Yor
k
Hou
ston
Dal
las-
Ft.
Wor
th
Chi
cago
Mia
mi-F
t.La
uder
dale
n Fr
anci
sco-
akla
nd-S
anJo
se Phoe
nix
(Pre
scot
t)
San
Ant
onio
L
San
Oa
Source: Geoscape Population statistics
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Hispanics are noticeably younger than other ethnic groups
20% of Population by Age Group
12
14
16
18
6
8
10
12
0
2
4
0 - 5 5 - 14 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+
Age Group
TOTAL White Asian Black HispanicMEDIAN 36 5 40 8 35 0 31 5 27 0
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Source: US Census Bureau
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AGE 36.5 40.8 35.0 31.5 27.0
Hispanics Have the Largest Households…
Average household size
3 83.8
2.83.4
2.3
Hispanic Black Asian White
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Source: US Census Bureau
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Hispanic HH’s were better poised to weather the economic storm, and are Hispanic HH’s were better poised to weather the economic storm, and are best poised to grow when the recession endsbest poised to grow when the recession ends
– Hispanics are less effected by the recession, partly because: • Only 45% of Hispanics have credit cards vs 71 percent of NHOnly 45% of Hispanics have credit cards vs. 71 percent of NH• Few have loans, 34% versus 53 percent for non-Hispanics, and they are less
burdened with potential debt
Source: Experian Simmons for Univision 2009
• Only 49%of Hispanics own homes in 2008 vs. 75% of non-Hispanic whites
Source: Pew Hispanic, Through Boom and Bust: Minorities, Immigrants and homeownership
• 44% of Hispanics expect their finances to improve in the next 6 months vs. 44% of Hispanics expect their finances to improve in the next 6 months vs. 20% of NH
Source: Forrester Research 2009
– Because Hispanics aren’t experiencing the major lifestyle shifts of non-i i i i i i f fHispanics, they remain optimistic of the future• Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and
has remained constant since 2005Source: Experian Simmons for Univision 2009
..and Spend a Lot of Money on Grocery Items
Average annual spendper consumer unit
Share oftotal spendingp
(total dollars)p g
8.18.6
$3,432
$3,947$3,719
6.66.9
$ ,
$2,796
Hispanic Black Asian WhiteHispanic Black Asian WhiteA
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Source: Selling Center for Economic Growth *Spending on “Food at Home”
$44,000 $36,000 $69,000 $57,000Avg.HHI
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Total Hispanic Purchasing Power is Rising Quickly
Total buying power($ billion)
$1,386
$1,240
($ billion)
$951 $913
$752
$490$600
$269
$509
$269
2000
2008
2013
2000
2008
2013
2000
2008
2013
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Hispanic Black AsianSource: Selling Center for Economic Growth
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Hispanics have Important Demographic Growth in Food & Beverage..
$5.9B of new market value was created by Hispanics in growing categories
30.10%
27.10%
18.20%
11.60% 10.60%9.10%
5.60% 5.60%
2.30%3.70%
1.20%0.70%
Frozen meals Tea Fats and oils Potato chips and Fresh and canned pasta, Oatmeal
Real demand created by Hispanics $ illi 2005 2008
other snacks vegetable juices and other cereal
Real growth Hispanic market Real growth non-Hispanic market
$5 858
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Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2005-2008; Latinum Network analysis
$millions 2005-2008 $5,858
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… and Hispanics are Also Important to Household & Personal Goods
$4B of new market value was created by Hispanics in growing categories
31 4%
18.0% 17.5%
31.4%
20.0%
9.8%6.9% 7.0% 7.3% 7.1%
4.0%3.0%
6.5%3.3%
1 2%1 2%2.3%3.8%3.4%
1.2%1.2%
Miscellaneoushouseholdequipment
Cosmetics,perfume, bath
prep
Lawn andgarden supplies
Laundry andcleaningsupplies
Deodorant,femininehygiene,
miscellaneousproducts
Grills andoutdoor
equipment
Shaving needs Householdtextiles
Smallappliances,
miscellaneoushousewares
products
Real growth Hispanic market Real growth non-Hispanic market
$4,850Real demand created by Hispanics $millions 2005 2008
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$ ,$millions 2005-2008
Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 2005-2008; Latinum Network analysis
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Cellular Phones and Phone Cards Bring Hispanic Consumers CloserConsumers Closer
Hispanics are closing the digital divide which makes cell phones an important outlet
IMPLICATIONS:86%
75% • Text Messaging to Reach Consumer
• Phone and Promotions
• Phone Card Sales
HispanicNonHispanic
Source: Prepaid Phone Card Testing for The Hispanic Institute, 2010
CELL PHONE USUAGE
Source: “The Latino Digital Divide” Pew Hispanic Center, 2010
Internet Video
Internet is an important part of most Hispanic Moms’ lives
40% f Hi i M bil t• 40% of Hispanic Moms use mobile to access the internet at least some of the time
21% are “ Addicts,51% are Avid users, 24% visit once or twice week
Facebook dominates usage followedFacebook dominates usage, followed by Univision
The most common reason for Hispanic moms using social media are:
Catching up with friends Following friend activities
Source: Latinum moms study 2010
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Hispanic Consumer and Shopper Trends Impacting our Business
1. Effects of the economyObvious importance of price and ways to save money
2. Greater availability of authentic productsKey: right products in right locations based on demographics
C
3. Exploding younger populationsBig growth in Hispanic children, teens, Millennials
4. Connections to community increasing in importanceMust be seen as a true partner of the Hispanic community
5. Significant use of mobile devices and the internet
6. Migration of Mexicans to the East and MidwestM i d t b i l t i l
5. Significant use of mobile devices and the internetDedicate time to research products and services before buying
Mexican products becoming more relevant in more places
Sources: PepsiCo Hispanic Study, New American Dimensions Latina Shopper Study, TNS Hispanic Shopper 360 Study, US Census Bureau
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HispanicHispanic Insights and BehaviorsBehaviors
Definition of Acculturation
ac cul tu ra tionac cul tu ra tionac-cul-tu-ra-tion‘…is the process by which immigrants and
ac-cul-tu-ra-tion‘…is the process by which immigrants and…is the process by which immigrants and their offsprings adopt some values, beliefs and behaviors more characteristic of the
…is the process by which immigrants and their offsprings adopt some values, beliefs and behaviors more characteristic of theand behaviors more characteristic of the
US culture than the culture of the countries from which they or their
and behaviors more characteristic of the US culture than the culture of the countries from which they or theircountries from which they or their
ancestors originate.’countries from which they or their
ancestors originate.’- Pew Hispanic Center, ‘2005: Latinos: A People in Motion’
Stages of Acculturation
The majority of Latinos are acculturatingThe majority of Latinos are acculturatingor have acculturatedor have acculturated
Total LatinoTotal Latino
or have acculturatedor have acculturated
UnacculturatedUnacculturatedLatino TeensLatino Teens
26%26%
AcculturationWindow
AcculturationWindow
UnacculturatedUnacculturated
6%AcculturatedAcculturated
AcculturatedAcculturated
50%50%
24%44%44%50%50%
24%
UnacculturatedUnacculturatedAcculturation
WindowAcculturation
Window
Source: New America Dimensions, PepsiCo Acculturation Study.
Stages of Acculturation
A window of acculturation “opens” after A window of acculturation “opens” after Hispanics have spent more than Hispanics have spent more than
h lf th i li i th USh lf th i li i th UShalf their lives in the UShalf their lives in the US
AcculturationAcculturationAcculturation Window
Acculturation Window
1st Generation
Acculturation Stages
Acculturation is a process that happens graduallyAcculturation is a process that happens gradually20
Join clubs and organizations
US lt
Hispanic values and shopping
habits change15
on S
core Majority
plan to stay in US Physical labor is
less common
US pop cultureis more important
Spanish Dependent American
identity takes over as they
habits change
10
cult
urat
ion
English media usage
surpasses Spanish
English is preferred
Football ispreferred to soccer
Identifies with Latin American Culture d
over as they move into non-
Hispanic neighborhoods
5Acculturation Acculturation
WindowWindow
Acc Majority
speak English
well
and soccer is
preferred sport
0<25% 25-49% 50-74% >75% 2nd gen 3rd gen
A deep dive study of Hispanic shoppers revealed three acculturation Segments
Level Of Hispanic Acculturation Hispanic ‐ Segment Profiles
ModeratelyAcculturated More AcculturatedModeratelyLess Acculturated
Less Acculturated
32% MoreAcculturated
34%
34%Generation
Language More Spanish Spanish & English More English
80% 1st
Generation63% 1st Generation 20% 1st Generation
34%Income $29K $57K$41K
Comfort Comfortable in U.S.
More Comfortable in U.S.
Extremely Comfortable in U.S.
Strong Latino Strong Latino Latino Values StillLessValues
Shop Where
Strong Latino Values
Strong Latino Values
Latino Values Still Present
Convenient and Preferred Store Preferred Stores Preferred Stores
Moderate
More
Source: PepsiCo Hispanic Acculturation Study
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S l R l
Today's challenge ...
Solidifying Relevance with acculturating/bicultural consumers g
la Biculturalidad
All Latinos are influenced by American & Hispanic by American & Hispanic traditional lifestyles - They are pulled by the dominant American ey a e pu ed by e do a e caculture to be individualistic and independent while their traditional Latino family values pull at them to stay close to the collectivism of the family.
IndependentFamily
IndividualisticTraditional
Source: Mintel
IndividualisticTraditional
Biculturalization and Identity…a new look today.
Americans defining their ownBicultural Latinos self define as 100% Latino & 100% A erican
gidentity in fractions that add up toa mathematically correct 100%
100% Latino & 100% American. Showing strong and unique cultural identity.
ally
dit
ion
Tra
d
ource: Yankelovich Multicultural Study
What are the top Interests of bicultural Hispanics?
Findings...Figure 49: Top interests of young Hispanics, September 2008g p y g p , pBase: 300 Hispanics aged 18-34 with internet access
“Out of the following, which would you say are your top three interests?”
Source: Mintel Exclusive Research Survey
The New Latino, aged 18-24, and the Latino Young Adults, aged 25-34, seem to have rather similar interests in life. However, the Latino Young Adult has a higher preference for spending time with family and friends.
How do they feel about family?
Findings...Figure 50: Young Hispanics’ closeness to family, by age, September 2008Base: 300 Hispanics aged 18-34 with internet access
“Describe your relationship with your immediate family.”
g
Describe your relationship with your immediate family.
Source: Mintel Exclusive Research Survey
Given that those aged 18-24 are almost 12% of the Latino population and are experiencing a 29% growth from 2003-13, their strong sense of family will have a greater reach.
Implications for Bowling Centers
Winning with Hispanic consumers
In-center ExperiencePlanning Post CenterExperience Post Center
Be authenticBe relevant Be connected• Bilingual signage & family imagery • Bilingual employees• Music: Shakira/ Enrique• Traditional food & beverages
balanced with staple menu items
• Bilingual circulars & coupon books
• News paper and radio
• Association with community drives loyalty• Hispanic Chamber of Commerce• Churches and church leagues
• Offer value during during food and music f i lbalanced with staple menu items
• Manzanita Sol, Jarritos, Tecate, Negra Modelo
festivals
Source: PepsiCo Hispanic Acculturation Study34
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The majority of all Hispanics prefer to see bilingual signage
67% of consumers look for Bilingual signs
Bilingual is authentic
• Hispanics are satisfied with smaller Spanish translations with English
67 h h i f b d k
English
• They neither want nor expect all‐Spanish signage
• Non‐Hispanics are not offended by the addition of Spanish
67
1416
When shopping for beverages and snack foods, which of the following types of signs would be most appealing to
you?
142 1
16
Signs in bothEnglish and
Spanish
Signs inSpanish
Signs inEnglish
Neither One Don’tknow/Refused
p
Source: PepsiCo Hispanic Acculturation Study
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Serving authentic Hispanic products are an important attribute in attracting Hispanic shoppers
91% of Hispanic consumers prefer locations where they can find Hispanic products
St F t % Indicating Very/Somewhat Store Feature % g y/Important to Store Selection
Sells Hispanic Products 91%
Bilingual Employees 88%Bilingual Employees 88%
Bilingual Store Signs 84%
Store Active in Local Community 84%
PepsiCo Confidential
Source: Food Marketing Institute, El Mercado Study
Bilingual Packaging 82%
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Examples of Hispanic Programming
Posadas /NavidadDia de las MadresApril - May
Heritage MonthSeptember
Posadas /NavidadNovember -December
The Hispanic calendar: programming and Community activities
Association with community drives loyalty
Three Kings Day Mother’s Day Back to School Day of the Dead
MARMAR DECDECFEBFEBJANJAN APRAPR MAYMAY JUNJUN JULJUL AUGAUG SEPSEP OCTOCT NOVNOV
g yLos Reyes Magos
yDia de las Madres
yDia de los Muertos
Lent / Easter Cinco de Mayo Hispanic Holiday SeasonSemana Santa Heritage Navidad
Cultural/Holiday Local Events Local Soccer Music
Community
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How to win with Hispanic consumer
1. Planning: Hispanics put rigorous thought on their spendEnsure strong presence in mail circulars coupons and
2. In- Center: Authentic ExperienceMake POS Bilingual whenever possible Hispanics want
Ensure strong presence in mail circulars, coupons, and value through radio absolutely drive center choice
Make POS Bilingual whenever possible, Hispanics want relevant products, bilingual signage and employees, plus traditional food (tacos, tamales, aguas frescas) balanced with the staple center offerings
3. Focus on key Holidays promotions:Key Holidays: Mother’s Day, Lent/Easter, Hispanic Heritage Month
4. Communicate Latino Values:Hispanics are focused on family, tradition, & food
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Source: PepsiCo
6 things to remember about the Hispanic consumer
1. Don’t forget the English:Hispanics appreciate Spanish, but are inspirational and want to learn English
2. Keep it simple, yet noticeable:Need Hispanic people in ads and in-store, Bilingual coupons and circulars (English can still be the larger font)
3 Focus on making the Hispanic elements3. Focus on making the Hispanic elements cool, not differentPresent Hispanic signs as for everyone, not just Hispanics
4 Hispanics have a tendency toward trying out4. Hispanics have a tendency toward trying out different venuesDoes your center provide a welcoming environment for them to visit with their family?
5. Trust is paramount for Hispanics.
Do you serve the food and beverage brands they trust? Do store personnel understand the culture?
6. Hispanics associate health and nutrition with homemade.
Source: PepsiCo
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6. Hispanics associate health and nutrition with homemade.Highlight authentic ingredients and recipes and fresh food.
Recap Video
G Ri• Gus Rios– [email protected]
Th Hi i C The Hispanic Consumer Landscape Landscape January 23, 2012y ,