Successfully Marketing to the Hispanic Customer

Frank Thurlow

23 July 2019

Who is the Hispanic Customer?• Hispanic familial roots that can be traced back to Mexico, Central or South

America, Cuba, or the Caribbean islands• There are almost 59 million Hispanics in the U.S.,18% of the total population• 51% of Hispanics are under 30 years old (millennials or Gen Z)• Almost 25% of all children under 10 years of age in U.S. are Hispanic• 65% of all Hispanics were born in the U.S. and are 2nd or 3rd generation

• Very family and community focused, preference for community focused shared entertainment such as sporting & music events

* as of 2018

Why is the Hispanic Customer Important?• U.S. Hispanics = $1.7 trillion in buying power

• Their projected buying power in 2060 will exceed $3.5 trillion

• The median age for Hispanics is 27 which is 10 years younger than non-Hispanics

• Affluence amongst Hispanics is rising faster than the general population

• Hispanics are early adopters of technology and spend an average of 52 hrs./ week on smartphones

What is the Hispanic Customer Looking For?• Tradition and heritage drive mealtime choices

• Fresh chicken and beans are top foods reflecting their heritage• Hispanics are loyal to brands that advertise in Spanish

• English is acceptable if it includes elements of their culture• Hispanics tend to be progressive and drive intercultural affinity• Desire access to traditional products but with modern conveniences

What is the Hispanic Customer Looking For?• Advertisers tend to fall into 2 camps

• Old World – Spanish, talk to them as “just off the boat”• Gen Market – English, no different than non-Hispanic

• Need to craft messaging that combines the “old world” values with solutions for “new world” needs

• Hispanics are digitally savvy• use social media to stay connected with family • to gather information to make buying decisions

• Social media is underutilized and can be an important tool to connect with Hispanic customers

• Collected “preferential data” from current Hispanic customers• Included prioritization of what they liked, didn’t like, what they wanted

• The Hispanic customer wants all their traditional products in 1 shop• They especially want expanded fresh produce, meats, and service deli • They want employees who speak their language and know their traditions• They want a store that understands their community and participates in

the community as a neighbor, not just another business

What is the Hispanic Customer Looking For?

How Was This Information Put to Use?• In the past only certain sections were remerchandised for the Hispanic customer

• this time the store was closed and everything was changed • assortment, layout, space allocations, even wall & sign colors

• To provide the additional services they wanted a new work plan was developed• contrary to industry trends (i.e. more labor)

• The staff was hand selected and went through several weeks of CS training

• Marketing and PR campaign to reach out to local charities and corroborated with local musicians, celebrities, and influencers (i.e. bloggers)

• Each of the grand openings was an event with music and community interaction

Results

• The original concept was launched in 1 store then expanded to 6 stores• Within 18 months there were 22 stores under the Fresco banner• One of these openings included a concert in the parking lot by a local band

and nearly 2,000 people showed up• Another opening served an authentic Hispanic dinner outside

• plates were sold to raise money for the local food bank• Concept was expanded to 5 more stores located north & west of Hialeah• Most stores have scheduled community events 1 or 2 times per month• It continues to be 1 of the better performing banners in south Florida

Credits• “Acosta Report Finds Multicultural Americans Are Reshaping US Grocery.” Acosta, Acosta Sales & Marketing, 10 Apr. 2019,

www.acosta.com/news/acosta-report-finds-multicultural-americans-are-reshaping-us-grocery.

• Acosta. “‘The Why Behind the Buy’ - The Importance of Multicultural Shoppers.” Acosta, Acosta Sales & Marketing, 9 Apr. 2019, www.acosta.com/news/acosta-report-finds-multicultural-americans-are-reshaping-us-grocery.

• Brand Index. “10 Ways Hispanic Consumers Differ From The Average American Shopper.” Forbes, Forbes Magazine, 25 Sept. 2018, www.forbes.com/sites/brandindex/2018/09/24/10-ways-hispanic-consumers-differ-from-the-average-american-shopper/#1811d04e7cff.

• Fernandez, Karla. “U.S. Hispanic Population Growth Means More Spending.” 06/20/2019, 20 June 2019, www.mediapost.com/publications/article/337307/us-hispanic-population-growth-means-more-spendin.html.

• “Grocers Must Engage Multicultural Shoppers at Perimeter: Nielsen.” Progressive Grocer, 17 Feb. 2018, progressivegrocer.com/grocers-must-engage-multicultural-shoppers-perimeter-nielsen.

• Redman, Russell. “Russell Redman 1 [3].” Supermarket News, 12 Apr. 2019, www.supermarketnews.com/print/107898.

• “Report: Multicultural Consumers Shape the Future of Grocery Retail.” SmartBrief, 14 May 2019, www.smartbrief.com/original/2019/05/report-multicultural-consumers-shape-future-grocery-retail.

• Riemenschneider, Pamela, et al. “Millennial, Hispanic Shoppers Outpace Organic Spending.” Produce Blue Book, 7 Jan. 2019, www.producebluebook.com/2019/01/07/millennial-hispanic-shoppers-outpace-organic-spending/.

• “Why Multicultural Consumers Are Having a Big Impact on U.S. Grocery.” Progressive Grocer, 10 Apr. 2019, progressivegrocer.com/why-multicultural-consumers-are-having-big-impact-us-grocery.

• Witt, Craig. “How Retailers Can Reach Hispanic Holiday Shoppers Online.” Apparel Magazine, Motion Point, 21 Dec. 2018, apparelmag.com/how-retailers-can-reach-hispanic-holiday-shoppers-online.