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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: [email protected]
OR if you have any questions regarding the content of this webinar, you can also contact:
James Russo, email: [email protected]
