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A HARTMAN GROUP & MSLGROUP SYNDICATED STUDY

C H A R T I N G A C O U R S E F O R U N D E R S TA N D I N G :

The Multi-Cultural Latino Consumer

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Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

MSLGROUP: Multicultural Practice Overview


We guide brands striving to keep pace and stay relevant to Hispanic, African American and Asian American audiences. As the U.S. undergoes historical demographic shifts, our job is to create and amplify authentic, real-time connections and conversations that can navigate and leverage the unprecedented cultural sustainability of todays multicultural consumers.

In-culture, in-language teams located across the network



Brand strategy Product launches Media tours Content development Digital marketing

Cause programs Health /public education Experiential events Community relations Recruitment Executive media training

Rich, actionable relationships with influencers, media and top CBOs Ongoing relationships with top bloggers and blogger organizations Experience launching and managing culturally-relevant online promotions, portals and Facebook pages

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

The Hartman Group: Looking Through the Consumer Lens


As the premier consumer culture consultancy in America, The Hartman Group blends leading-edge primary research with a unique brand of customized analysis to deliver the most comprehensive insights into how consumers live, shop and use products. This influential work informs and inspires innovation, strategy and tactics. We are an organization of more than 40 passionate (yet disciplined) social scientists, ethnographers, analysts, and marketers.

Each year, we literally spend thousands of hours immersed in consumers and shoppers lives and lifestyles.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

Hispanic Public Relations Association

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

Companies Struggle with Shifting Demographics


According to the Association of Hispanic Advertising Agencies, 57% of the top 500 advertisers allocate less than 1% of their budgets to targeting Hispanics.

However

63%
of CMOs
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

Feel underprepared to manage shifting consumer demographics

2013 The Hartman Group, Inc

Latinos In the U.S. Are

TOP 5 DMAs Los Angeles, CA New York, NY Houston, TX Miami, FL Chicago, IL Next Generation Hot Spots
Charlotte, N.C. Raleigh area, N.C. Atlanta, GA Orlando area, FL Ft. Myers-Naples, FL

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

2013 Research Highlights

Methodology: A two-phase qualitative AND quantitative research approach


Phase 1: Ethnography
Primary ethnographic research
Fielded in two major U.S. markets Seattle, WA and Dallas, TX in January 2013

Phase 2: Quantitative Survey


A national online survey
1,283 Latino origin respondents (representing over 20 countries of origin) reflecting Latino U.S. adults (ages 18-64) 413 non-Latino reflecting nonLatino U.S. adults (ages 18-64) Conducted in both English (909) and Spanish (787) Fielded February /March 2013 Results were then weighted to accurately reflect the U.S. adult Hispanic/Latino and nonHispanic/Latino populations

Engagements consisted of:


One-On-One, In-Home Interviews Multi-Generational, In-Home Interviews Shop & Talk Interviews Social Network Parties

A range of acculturation levels was represented in each engagement.


Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

To truly understand the Latino consumer, one must look beyond traditional acculturation models and see Latinos as multi-cultural consumers
2013 The Hartman Group, Inc

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Traditionally, acculturation has been the model used to explore the Latino culture in the U.S.
We also started with the more conventional Acculturation model. Unacculturated 22%
Language spoken at home 97% Spanish dominant 88% Spanish only/mostly 97% foreign-born 5-9 years 91% closer to Latino

Bi-Cultural 47%
58% Equally Spanish/ English 58% Equally Spanish/ English 60% foreign-born 20+ years 45% equally close to both

Acculturated 31%
86% English dominant

Media habits

98% English only/mostly 88% U.S.-born 20+ years 55% closer to U.S.

Years in U.S. (median) Overall Cultural Identification

A6. What language do you usually speak at home? A7. Thinking of your overall cultural identification, would you say you feel...? A8. Thinking of your media habits, including television, radio, newspapers and magazines or the internet, would you say you use... How many years have you lived in the United States? Base: N=307-Acculturated, N=578-Bi-Cultural, N=398-Unacculturated.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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A multi-cultural focus helps map the story in more detail


Lifestyle and identity of ALL Americans are defined by three primary influences
Country of Residence

Country of Origin

Globalization

Multi-Cultural Consumer
What does it even mean to be American? You have so many different cultures here. How can you define it? Tammy (COO Mexico)
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Latinos are also multi-cultural; navigation of these influences determines ones position on the acculturation model
More unacculturated individuals struggle with integrating all three cultural influences, instead preferring to rely more heavily on their country of origin (when possible) as a reference for how to determine the appropriate behaviors for consumption activities such as shopping and eating. Those who are bi-cultural see all three as more equal players, however, each influence is still unique consumers feel the need to turn one influence off before being able to turn the other on.

Unacculturated

Bi-Cultural

Acculturated

The fully acculturated seamlessly move through all three cultural influences in their every day lives.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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For Latinos, Health + Wellness is not just focused on the physical, it is about balance with the emotional and spiritual as well
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Much like their counterparts, Latinos are interested in pursuing a balanced approach to H+W
To Me, Health + Wellness Means
Being physically fit* Feeling good about myself

72% 65% 69% 69%

Not being ill


Being happy and cheerful* Not being overweight Being able to enjoy time with my family* Maintaining a spiritual balance Consuming natural and wholesome foods* Being confident about achieving my goals in life* Being in tune with nature* Donating time or money to my community*

65% 66%
60% 72% 58% 64% 53% 61% 45% 49% 42% 50% 37% 53% 28% 35% 15% 22% Non-Latino Latino

If health is sleeping eight hours, wellness is having a nice home to sleep in. Alis

W1. To me, health and wellness means... Select all that apply. Base: N=413 Non-Latinos, N=1283 Latinos. * significantly different at 95% confidence.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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U.S. media and values bring attention to the more measurable aspects of Health + Wellness
Latinos feel that Americans place more emphasis on the physical (diet and exercise) aspects of health.
In the U.S., health + wellness feels like a series of legal claims. Thania (COO Mexico)

As Latinos grow more accustomed to the American take on health, they begin to focus more on: Weight

Non-Latinos
Concerned about weight management*

Latinos

Latinos are very aware of the obesity problem in the U.S. and how easy it is to become a part of it.
Easy to access packaged foods

43% 53%

Less physicality in day-to-day lives

W2. Are you or anyone in the household concerned with or treating any of the following health conditions? Concerned (Preventing or Treating). Base: N=413-Non-Latino, N=1283 Latinos. * significantly different at 95% confidence

Many Americans feel the need to read labels in order to ensure they are indeed getting what they want. More acculturated Latinos do the same. Trust (a highly regarded Latino value) starts to wane the more they are exposed to American culture.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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Latinos seek a more holistic approach to Health and Wellness


Although they are not averse to seeing doctors, Latinos prefer to:

Listen to ones body for overall feel and energy


Eat fresh and organic (although does not have to be certified organic) and avoid processed foods when possible Use food as medicine Canella, pollens, spices/herbs, bitter melon, chia seeds
Kombucha for digestion

Canella tea is a cure-all

Engage in massage and/or acupuncture

Aloe for hydration

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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Food serves as an important social conduit for Latinosfostering connection with one another and their culture and traditions.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Family is a key facet to Latino culture


Family values are recognized in a variety of ways:
Recognizing a large variety of celebrations Large national (American) holidays Holidays from Country of Origin Celebrating religious holidays

Using more intimate settings as a venue for enjoying family as well Family dinners

Indirectly supporting family values through:


Language Food and drink

86%

of Latinos consider eating with family important

C1. Among the following aspects of your cultural background, how important are they to maintain or celebrate? Base: N=1,283
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Social and family events are important aspects maintaining a connection to ones Country of Origin
Important Cultural Aspects to Maintain
Teach my children how to speak Spanish* Eat together with family at meals Celebrate US national holidays (e.g., Fourth of July, Thanksgiving) Eat foods or drink beverages from my cultural heritage Celebrate Hispanic/Latino national holidays Celebrate important birthdays of Hispanic/Latino culture Attend religious events such as Christmas midnight Mass Follow the latest Hispanic/Latino news Follow my favorite Hispanic/Latino sports teams (e.g, soccer) Follow the latest Hispanic/Latino entertainment (e.g., movies, tv shows) 23% 17% 20% 44% 43% 55% 54% 55% 62% 79% 62% 58% 77% 74% 94% 95% 92% 89%

84%
Unacculturated Bi-Cultural Acculturated

62% 68% 62% 66% 67% 64% 64%

55% 52%
53% 48%

C1. Among the following aspects of your cultural background, how important are they to maintain or celebrate? Base: N=307-Acculturated, N=578-Bi-Cultural, N=398-Unacculturated. * Among parents only, Base: N=93-Acculturated (small base size), N=239-Bi-Cultural, N=196-Unacculturated.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Latinos prioritize social, mid-day eating occasions on the weekends to fit with American schedules
A meal structure compromise is necessary. Latinos usually have to bend their traditional meal structure to meet American demands on time and schedules. The result is a very American style of eating Monday through Friday and a very Latino emphasis on the weekends.
The Hartman Groups 2010-2012 Eating Occasions data shows how acculturated Latino eating occasions differs from those Non-Latinos

Non-Latinos
Alone eating occasions*
Family eating occasions*

Latinos

Packing large lunches to bring to work is one way to maintain the late afternoon meal in any setting.

Savoring occasions*
Eat within 1 hour of purchasing* Eat on-thego*

With kids at school and us at work we have to eat this way. We dont have much of a choice. Tammy

47% 22% 38% 10% 5%

38% 32% 48% 16% 6%

HOBM Compass, 2010 - 2012 (n=36,339 adult eatings). Base: N=31,849-NonLatinos, N=4,490-Latinos. * significantly different at 95% confidence.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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Fresh is a strong determinant of quality for Latinos.


Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Latinos place great emphasis on eating fresh foods


This includes: Deep understanding of the growing process
A desire to cultivate ones own food through home gardens
Purchase of Canned Beans

More acculturated Latinos are more accepting of packaged goods.

A preference for whole foods


Packaged foods are seen as poorer quality and for Americans

7%
Unacculturated

31%
Bi-Cultural

55%
Acculturated

Seeking foods with no preservatives or other additives; grass fed/cage free are added bonuses
Organic is a distinction Latinos want but dont always prioritize; price and freshness are of greater value

B9. Purchased CANNED BEANS during the past 3 months. Base: N=307-Acculturated, N=578-Bi-Cultural, N=398-Unacculturated.

63%
Canned foods make me feel sick. I always make my beans from scratch because of that. Alis (COO Colombia)
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

of Latinos consume organic foods

W6. How often have you USED ORGANIC foods or beverages in the PAST THREE MONTHS? Base: N=1283 Latinos.

2013 The Hartman Group, Inc

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Latinos favor quality food experiences over health


Flavor and experience are the most important aspects of food. Ingredients need to be fresh. How the ingredients are treated might make the final product unhealthy. Enjoying these foods in the company of others is very important and speaks to Latinos emphasis on family and community.

82%

of Latinos choose fresh foods over packaged

F2. As much as possible, I choose fresh foods over cannedfrozen-packaged varieties. Agree. Base: N=1283-Latinos.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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Eating out is a great way for Latinos to experiment with global flavors
Types of Cuisines Latinos have Consumed in Past 3 Months
American classics Chinese Indian 3% 5% 38% 31% 6% 14% 73% 27% 45% 65% 66%

2.1
# of times Latinos eat out in a week (2.0 times for nonLatinos)

Italian-American
Japanese Mexican Spanish Tex-Mex Thai Latin American 3% 7% 26% 17% 22% 17%

64%

Home Cooking Dining Out

51% 36%

F7. And what styles of food have you cooked or prepared at home in the past 3 months? D1. Which of the following best describes the style of food you had at restaurants, cafs, etc. in the past 3 months? Base: N=1283-Latinos. D3. How many times do you eat out in a typical week? Base: N=1283-Latinos, N=413-Non-Latino
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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The pantry demonstrates the multi-cultural Latinos diverse food culture


Latino Preferences fresh, homemade, represents their country of origin American Constraints quick, convenient, brand names Global Experiments flavorful, new, fun

American constraints and Latino preferences mix with global experiments to create a full and diverse pantry.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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American conveniences and a focus on specialty Latino products combine with accessible global items create an ideal store setting
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Specialty Latino items are usually saved for the tienda


The tienda is A place of evident importance
Not always the cheapest but usually the freshest and with the most authentic products Not always the most convenient but worth a weekly trip Not always the answer, but the Latino products they carry are closer than any conventional store A place to buy quality fresh products but also where native junk can be purchased too!

The tienda may be less visited by more acculturated Latinos, but it never loses its emotional significance.

A place of emotional importance


A local store that has local owners with a community feel A link to home and a place to introduce children to culture A family outing A place of respect can converse in Spanish, not looked down upon if ask question, good deals, good quality

My dad missed home and didnt want to forget that piece about him, and I wanted to learn more about where my family came from, so this store is perfect to symbolize my heritage. Amber

A place to browse and learn


2013 The Hartman Group, Inc

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

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The U.S. has a plethora of retail options, and Latinos participate in all of them
Unacculturated Latinos are familiar with American stores and brands, so the transition to shopping in America is usually not difficult
Stores/brands exist in their country of origin Many Latinos cross over to the U.S. to shop while still living in their native country Learn to shop from their more acculturated network, which helps lessen stress and surprises

$566 $71

total Latino monthly grocery spending average spent per grocery trip by Latinos

B14. In the PAST MONTH (30 days), approximately how many visits have you made TO A STORE for food, beverages or groceries? B15. On how many of these STORE visit(s) did you spend the following amounts? Base: N=1278-Latinos.

Latinos shop in ALL retailers though have higher usage rates of visiting Walmart, Target, Club, Dollar, Convenience stores, and Latino stores.

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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The Hispanic aisle is a work in progress


The Hispanic aisle at most American retailers is a smattering of Americanized Latino products with a few big brand (mostly Mexican) products mixed in. Most Latinos are indifferent to the aisle.
Visit it rarely when in need of a more commodity type Latino product (dry rice or dry beans for example)

See benefits of it being a higher priority (convenience mostly), but are not interested in shopping it solely still prefer to go to the tienda
Feel it is mostly for Americans trying to cook a Latin dish

These arent really what I would use. Im sure people who dont know better would use these, though. Sonia

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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Fiesta Mart illustrates multi-cultural Latinos need for convenience/accessibility

American conveniences and a focus on specialty Latino products combine with accessible global items to create an ideal store setting.
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Case Studies

Case Study: General Mills Honey Nut Cheerios (HNC)


Insights Understanding that heart disease is one of the main causes of death in the Hispanic community, HNC wanted to leverage its Sabroso y Saludable platform to educate the Latino audience on its heart-health benefits. In order to engage the target audience, HNC secured a well-known Telenovela spokesperson that resonated with U.S. Latinas leveraging a study that states that 43 percent of U.S. Hispanics watch Telenovelas. Objectives Drive awareness of the brands healthy and tasty positioning among Spanish-dominant Hispanic women ages 18-34 Secure national and local Hispanic media coverage Engage Hispanic women and entice them to enter the sweepstakes Approach Launched national sweepstakes for a chance to win Desayuno con Juan Soler (family experience) Conducted Los Angeles media tour leveraging Juans celebrity to announce sweepstakes and deliver HNC key messaging Once winner was announced, invited Hispanic media and mommy bloggers to attend a special meet-and-greet with Juan in anticipation of the winners breakfast Results 4,800 entries More than 155 media placements reaching an audience of nearly 35 million Secured media interviews on Univisions Primer Impacto and Primera Edicin, La Opinin, EFE news agency and Univision radio show El Show de la Maana con Omar y Argelia 90 percent message inclusion
Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013 2013 The Hartman Group, Inc

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Case Study: Starbucks


Insights According to Starbucks research, Hispanic consumers have a high affinity towards iced and blended Starbucks beverages and a preference for sweet flavors like caramel, a favorite flavor from their country of origin. Identifying Southern California Hispanic millennials as the target audience, leverage their want for customization even when it comes to their beverage selection. Objectives Heighten awareness among millennials that Frappuccinos are easily customizable and feature their favorite sweet flavors Drive trial and, ultimately, purchase among Hispanic millennials of Starbucks Mocha Cookie Crumble Frappuccino Approach Kicked off campaign with happy hour event at key Starbucks locations featuring live in-store performances by local Latino musicians and samples of new Cookie Crumble Frappuccino Secured influential Hispanic on-air DJ, JC Cuevas, to serves as the Barista for the Day and have him create his own exclusive Frappuccino flavor Distributed mailers to local influencers Identified key Hispanic bloggers to participate in initiative by developing culturally relevant posts that included Starbucks key messaging Developed and customized Twitter handle to support Starbucks Frappuccino summer launch Results Secured media coverage in LATVs Esta Maana, Hoy newspaper, Exitos 93.9 and About.com Generated more than 46 million impressions Drove positive coverage on Facebook and Twitter through influencer seeding

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The Hartman Group, Inc

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For more information, please contact:


Davey McHenry Director of Client Engagement davey.mchenry@hartman-group.com 425-452-0818

Vickie Allande-Fite Director, Multicultural, MSLGROUP Vickie.Fite@mslgroup.com 310-461-0383

Stephen Chavez HPRA President-Elect stephen@chavezmc.com

Charting a course for understanding: The multi-cultural Latino consumer | Syndicated Study 2013

2013 The 35 Hartman Group, Inc

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