UPCOMING WEBINARS Global Convenience Market Symposium – September 13th Diverse Intelligence...

UPCOMING WEBINARS

Global Convenience Market Symposium – September 13th

Diverse Intelligence Insights Series: Asian American Consumers – October 30th

The French Connection

A View Into Québec

Carman Allison

Director of Consumer Insights

August 2012

A View Into Québec

Carman Allison

Director of Consumer Insights

August 2012

Cultivating Multicultural Success From Opportunity to Growth

TODAY’S PRESENTERJames RussoVP, Global Consumer Insights, Nielsen

•19+ years of experience in marketing, sales, business development & research across the retail & manufacturing industries.  •Leadership role in integrating Nielsen’s broad array of insights & analytics to enhance growth strategies for its clients.  •One of the today’s leading experts on consumer attitudes & behavior, prominently & frequently featured in the nation’s top business outlets.

• Frequent contributor to leading media outlets such as: CNBC, Bloomberg News, Fox Business, Wall Street Journal and the Financial Times.

The world has changed

AUDIENCE POLL #1

What is the projected increase in the U.S. Hispanic population from 2010 to 2050?

1. 56%2. 142%3. 167%4. 233%

OPPORTUNITY

AFRICANAMERICAN

LARGESTECONOMY

17thASIAN

AMERICAN

LARGESTECONOMY

27th

HISPANICAMERICANS

LARGESTECONOMY

12th

CONNECTING

HISPANICS AFRICAN AMERICAN ASIAN AMERICANtext talk view

CONNECTED = ENGAGED

ENGAGEMENT IS ABOUT SATISFYING DEMAND

HISPANICS

143TRIPS 163TRIPS 152TRIPS

$51TRIPS $38TRIPS $46TRIPS

AFRICAN AMERICAN

ASIAN AMERICAN

ENGAGEMENT IS ABOUT SATISFYING DEMAND

MoreGroceriesPhone servicesApparelFootwear

LessAlcohol and tobaccoHealth careEntertainmentNew vehiclesPersonal insurance

MorePhone servicesUtilitiesGroceriesFootwear

LessUsed carsAlcoholHealth careEntertainmentPensions

MoreFoodHousingClothingEducationPersonal insurance

LessUtilitiesUsed vehiclesAlcohol and tobaccoHealth careEntertainment

HISPANICSAFRICAN AMERICAN

ASIAN AMERICAN

AUDIENCE POLL #2

What percent of CPG new product concepts tested, were targeted to Hispanics over the past 10 years?

1. None2. 1-5%3. 6-10%4. 11-15%

BUT THERE IS A GAP

Innovations Ad Spending

OPPORTUNITIES WITHIN KEY CATEGORIES

BeerGum Oral HygieneSaucesCondiments

Wine LiquorCandy Ice CreamBreakfast Bars

Baby NeedsDisposable DiapersBottled WaterJuices & Drinks – Ref & SS Spices/Seasoning/ExtractsDried Vegetables Fresheners & DeodorizersFragrances (Women)Personal Soap/Bath AdditiveEthnic HABA Family Planning

high

medium low

OPPORTUNITIES AMONG KEY RETAILERS

43%Over performing

57%Average or

under performing

REACH RESONATE

HOW WE GET THERE

CLOSING THE GAP

96%OF TOTAL

POPULATION

192HRS/MTH

$72bTV ADVERTISING

PER YEAR

KEY TAKEAWAYS

• A successful ad is a successful ad

• Everybody responds to humorous storylines

• Prioritize universal drivers over cultural nuances

MULTICULTURAL DRIVERS

* Likability Index versus average Asian Ad likability* Likability Index versus average Asian Ad likability

Asian Americans like product features

46% 85%OF TOP ADS DISCUSS PRODUCT FEATURES

OF BOTTOM ADS DON'T DISCUSS FEATURES

MULTICULTURAL DRIVERSAfrican-Americans respond to humor

42% 96%OF TOP ADS AREHUMOROUS AND RELATABLE

OF BOTTOM ADS ARE NOT HUMOROUS OR RELATABLE

MULTICULTURAL DRIVERSHispanics prefer family references

41% 95%OF TOP ADSFOCUS ON THE FAMILY

OF BOTTOM ADS DON'T FOCUS ON THE FAMILY

41%INCREASE IN HISPANIC

MARKET SALES

TOP PERFORMING GENERAL AD

RESULTING IN

THERE IS ROOMTO GROW!

HOW DO WE GET TO SUCCESS?

WHAT DRIVES GROWTH?

•In the first quarter of 2012 Nielsen surveyed 41 CPG, Retail and media companies across North America

•Objective of the custom study was to understand best practices, organizationally and strategically, that drives growth in reaching the multicultural consumer

•Survey consisted of 50 questions, delivered in person across multiple functional areas

BACKGROUND OF THE STUDY

Survey Focus

• The study is focused on:

44%Top performing

56%Average – Low

performing

Rating multicultural consumers as Extremely

or Very Important

Rating multicultural consumers as Moderately, Slightly, or Not at all Important

THE LANDSCAPE

PRIORITIZE

How important is reaching multicultural/visible minority consumer groups to your company’s growth strategy?

81 % of companies surveyed feel it is extremely important to reach a specific multicultural group

BE REPRESENTATIVEGetting the mix right, employees and company leadership

27%average %

of ethnic employees

17%average % of

ethnic leadership

SALES & MARKETING FOCUSDedicated Roles

45% of top organizations have senior positionsdedicated to multicultural salesand marketing

30% of avg to low organizations have senior positionsdedicated to multiculturalsales and marketing

DIVERSIFIEDReflective of Overall Importance

94% Hispanic

88% African American

53% Asian

TOP PERFORMING FOCUS

SEPARATE BUDGET, SEPARATE ACCOUNTABILITY

40% of high performing organizations have a separate budget for multicultural efforts

21% of Avg to low performing organizations have a separate budget for multicultural efforts

LEVERAGE SOCIAL MEDIA

90%in top

performing companies

47%in average/low

performing companies

UTILIZE HIGH ENGAGEMENT & HIGH FREQUENCY VEHICLES

TOP PERFORMING:REACH & RESONATE

MEDIA

AVERAGE/LOW PERFORMING: REACH MEDIA

TV PRINT ONLINE

TV RADIO INSTORE

ANALYTICS TO MATCH PRIORITIZATIONWhich of the following marketing research tools does your company use to support your multicultural/visible minority strategy?

100% Of high performing organizations use segmentation in their multicultural research efforts.

80% Of average/low performing organizations use one on one interviews.

Of average/low performing organizations use segmentation

53%

COLLABORATION IS ESSENTIAL

90% overall and 100% of top companies collaborate with retailers/manufactures on specific initiatives.

AUDIENCE POLL #3

What percent of top performing organizations have goals tied to multicultural consumers?

1. 0-25%2. 26-50%3. 51-75%4. 76-100%

GOAL ORIENTED

33%

17%

TOP GOALS FOR TOP PERFORMING ORGANIZATIONS

TOP GOALS FOR AVERAGE/LOW PERFORMING ORGANIZATIONS

17%

30%

35%

22%

Consumer focus

Brand building Consumer focus

Don’t Know/None

Increase Hispanic share of wallet

Increase Hispanic share of wallet

5% Don’t Know 9%NewProducts

Opportunity Growth

Leverage Social media

Engagement

Be Representative

Sales and Marketing Focus

Separate Accountability

Ongoing goals

Prioritization

collaboration

MULTICULTURAL SUCCESS

50%Companies

82%Companies

Targeting Hispanic consumers is Extremely Important

Have organizational goalstied to Hispanics

THE U.S. HISPANIC LANDSCAPE

HISPANIC POPULATION GROWTH PROJECTED TO OUTPACE ALL ETHNIC GROUPS OVER THE NEXT 40 YEARS

* Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islanders

Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

Projected U.S. Population Growth From 2010 to 2050

+167%+142%+56%+1%

+42%

TotalWhite

Non-HispanicBlack Asian* Hispanic

FURTHER EVIDENCE OF CULTURE SUSTAINABILITY

31% Hispanic Adults say

they want to be MORE LATINO

60%

Hispanic adults say they want to be BICULTURAL

90%

Hispanic parents want their children to be

BILINGUAL

72%

In 2011, intermarried couples classified their

children as HISPANIC vs.. 35% in 1991

LATINOS: YOUNG & CONNECTED

WATCH 33 HOURSOF TV PER WEEK

SEND / RECEIVE941 TEXTS PER

MONTH

STREAM 6:15 HOURSOF VIDEO PER MONTH

SOURCE: NIELSEN

WHAT’S IN THE BASKET?

Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative

Category Hispanic Dollar Index to Total Household

Dried Vegetables and Grains 221

Hair Care 154

Shortening Oil 152

Baby Food 150

Women’s Fragrances 149

Grooming Aids 144

Disposable Diapers 144

Family Planning 142

Photographic Supplies 142

Baby Needs 137

Top 10 Hispanic Product CategoriesPurchase Index: Share of Hispanic Dollar Sales Divided by U.S. Household Dollar Share x 100

Source: Nielsen Homescan 01/02/2011-12/31/2011

Private Label vs.Branded

For Hispanics, brand loyaltyPrevails in three categories ALL CPG:

1.Hair care2.Baby products3.Health & Beauty

R

HISPANICS:TOP 3 THINGS YOU NEED TO KNOW

• Culture sustainability:Don’t assume acculturation is a linear progression

• Language matters:Navigate the world in both Spanish and English

• Future growth of Latinos: Understand the implications for your brand

Nielsen Diverse Intelligence Insight series• In 2011, Nielsen launched a diverse intelligence insight series to help marketers better

understand the media and purchasing behaviors of key consumer segments.

Cultivating Hispanic Success From Opportunity to Growth

THANK YOU!

Q&A

Thank you for attending

•If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative.

•If you are not a current Nielsen client, please contact us:

Phone: 800-553-3727 email: CPGSolutions@nielsen.com

OR if you have any questions regarding the content of this webinar, you can also contact:

James Russo, email: james.russo@nielsen.com