Sample Composition:
Total Respondents: 332
| Type |
Number |
Percentage |
| Agency |
184 |
55%
|
| Brand |
118 |
35%
|
| Retailer |
30 |
10%
|
What is your current Hispanic marketing budget/expenditure?
Total Number of Responses: 332
|
Response
|
Agencies |
Brands
|
Retailers |
Overall
|
| $0 to 99,999 |
49% |
52%
|
79%
|
53%
|
| $100,000 to 249,999 |
11% |
8%
|
7%
|
9%
|
| $250,000 to 499,999 |
8% |
4%
|
0%
|
6%
|
| $500,000 to 999,999 |
7% |
9%
|
3%
|
7%
|
| $1,000,000 to 4,999,999 |
12% |
17%
|
7%
|
13%
|
| $5,000,000 to 9,999,999 |
4% |
5%
|
3%
|
4%
|
| $10,000,000+ |
9% |
5%
|
0%
|
7%
|
How would you describe your current Hispanic marketing budget/expenditures?
Total Number of Responses: 333
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Too little |
88% |
79%
|
77%
|
84%
|
| Too much |
0% |
1%
|
0%
|
0%
|
| The right amount |
12% |
21%
|
23%
|
16%
|
Compared to last fiscal year, has your Hispanic marketing spending/activities:
Total Number of Responses: 332
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Increased |
53% |
41%
|
53%
|
49%
|
| Decreased |
7% |
8%
|
0%
|
6%
|
| Stayed the same |
40% |
51%
|
47%
|
44%
|
Next fiscal year, how much do you expect your Hispanic marketing budgets/expenditures to change?
Total Number of Responses: 327
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Increase more than 20% |
13% |
13%
|
29%
|
14%
|
| Increase 11-20% |
16% |
11%
|
16%
|
14%
|
| Increase 1-10% |
48% |
37%
|
32%
|
43%
|
| No change |
21% |
36%
|
23%
|
27%
|
| Decrease 1-10% |
2% |
0%
|
0%
|
1%
|
| Decrease 11-20% |
1% |
0%
|
0%
|
0%
|
| Decrease more than 20% |
0% |
3%
|
0%
|
1%
|
How important is Hispanic marketing to the future of your/your clients' brands/stores?
Total Number of Responses: 332
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Very |
56% |
49%
|
50%
|
53%
|
| Somewhat |
38% |
44%
|
41%
|
40%
|
| Not at all |
3% |
5%
|
9%
|
6%
|
| Other |
3% |
2%
|
0%
|
1%
|
What are the top three obstacles to devoting more resources to Hispanic marketing?
Please rank the top three in order of importance.
Total Responses: 224
| Response |
1
|
2
|
3
|
Average |
| Distinct sub-segments |
8% |
15% |
12% |
12%
|
| No national programs |
4% |
9% |
12% |
8%
|
| Lack of commitment from brands |
19% |
13% |
15% |
16%
|
| Lack of commitment from retailers |
32% |
13% |
8% |
18%
|
| Language Barriers |
7% |
8% |
8% |
8%
|
| Low brand development index among Hispanics |
6% |
7% |
6% |
6%
|
| Low category development index about Hispanics |
4% |
6% |
6% |
5%
|
| Poor product penetration in Hispanic markets and stores |
8% |
10% |
9% |
9%
|
| Other |
5% |
2% |
8% |
5%
|
What percentage of your current Hispanic marketing budget is spent on advertising versus promotion?
Total Responses: 151 (brands and agencies only)
| Advertising |
Promotion |
Percentage |
|
0
|
100
|
16%
|
|
100
|
0
|
12%
|
|
80
|
20
|
12%
|
|
70
|
30
|
12%
|
|
60
|
40
|
7%
|
|
50
|
50
|
7%
|
|
30
|
70
|
7%
|
|
20
|
80
|
6%
|
|
10
|
90
|
6%
|
|
90
|
10
|
5%
|
|
40
|
60
|
5%
|
Why is it split this way?
Responses: 132
|
Selected Verbatim Responses
|
|
Of those who reported 100% in promotion:
"Does best to run promotions."
"We market our brands via promotions more than advertising in general."
"We use only promotion."
"Need to drive sales ASAP, be first in market to capture their loyalty."
"We are a promotion agency, and promotion seems to do better with Hispanics than advertising does. It's also easier to track."
"Merchandising opportunities and group dynamics among Hispanics make promotion appropriate."
|
|
Of those who reported 100% in advertising:
"Easier to buy advertising."
"Just started initiative, easiest to deliver message via advertising. Haven't developed promotion plan yet."
"Greater brand building benefits."
"Difficulty to promote to a Hispanic market/select Hispanic stores."
"Easier to execute, greater & bigger impact that is measurable."
"Wanted to prove/measure that we could increase over-the-counter sales via targeted Hispanic advertising. If you throw a promotion/price offer into the mix, you can't identify what influenced their purchase decision (the advertising or the discount)."
"Ad dollars drive the promotions; most of promos are added value."
"No national resources for Hispanic promotions."
|
|
Of those who reported 50%-50% split:
"Experimenting with both."
"Various methods for various efforts: Advertising for brand awareness, promotions to grow sales opportunities and samplings."
"Advertising to create awareness, promotion to incent the purchase."
"We are trying to get support from different divisions within the company. Right now the Hispanic market is not a priority for the brands in the company because they do not understand the growing Hispanic segment. If you sell your program internally, then the divisions might allocate budgets for either promotion or advertising campaigns."
|
Based on your current Hispanic marketing budget, how should the mix change?
Total Number of Responses: 215 (brands and agencies only)
| Response |
Agencies |
Brands
|
Overall |
| Significantly less on advertising, significantly more on promotion |
21% |
7%
|
16%
|
| Less on advertising, more on promotion |
26% |
24%
|
25%
|
| Significantly more on advertising, significantly less on promotion |
7% |
11%
|
8%
|
| More on advertising, less on promotion |
11% |
17%
|
13%
|
| Stay the same |
34% |
41%
|
36%
|
Which promotion vehicles do you consider the most effective? Please rank the top 3 in order
Total Responses: 224
| Response |
1
|
2
|
3
|
Average |
| FSI coupons |
11% |
3% |
4% |
6%
|
| In-store coupons |
5% |
15% |
9% |
10%
|
| Two-fers/BOGOs |
5% |
8% |
10% |
8%
|
| Sampling |
28% |
20% |
17% |
22%
|
| Sponsorships |
24% |
24% |
14% |
21%
|
| Sweepstakes |
4% |
5% |
10% |
6%
|
| In-pack premiums |
3% |
8% |
9% |
7%
|
| Mail-in premiums |
0% |
1% |
3% |
1%
|
| Direct mail |
10% |
12% |
11% |
11%
|
| Other |
5% |
1% |
6% |
4%
|
What are the key obstacles to reaching Hispanics at the retail level?
165 Responses
| Selected Verbatim Responses |
|
In-Store language barriers - 28 mentions
Comments ranged from "single language staff" to absence of multi language product labeling & merchandising messages.
"In big markets, English is still the language of the majority of shoppers. It is difficult/expensive to deliver a two language message in store. In small stores where Hispanics may be the majority, manufacturers may not want to deliver programs to such small stores."
|
|
Retailer apathy - 23 mentions
"Bias of retailers who are convinced that the Hispanic market has no value. They refuse to believe they need the Hispanic consumer to grow their share. Many don't want to believe what the Census results have revealed because it totally invalidates all their marketing decisions."
"Lack of retailer priority. Retailers not 'outfitted' to deal with this consumer. Additionally, all retailers want Hispanic funds to be 'incremental' dollars to those they are currently receiving rather than evaluating their current 'non-working' general market programs and allowing us to shift funds to higher return programs, like Hispanic. Also, in the event that we DO have incremental funds for first year activity, in year two, the promotion activity creates new funds for accrual and these Hispanic funds now become a part of following year's funds. Then, retailers will not back these funds out for use against Hispanic but want incremental funds forever!"
|
|
Absence of suitable advertising/promotion/display programs - 12 mentions
"Lack of trained, bilingual staff on the floor - practical limitations of bilingual signage, merchandising elements."
"Lack of targeted, point-of-purchase materials. Don't understand the Hispanic retail environments and the nuances encountered."
|
|
Cultural diversity among and within ethnic groups - 11 mentions
"In the Washington DC market, we have a great deal of difficulty because we have such a fragmented Hispanic population (by country of origin). Even though they are concentrated in geographic areas (for the most part) and they share retail outlets, they have distinct cultural organizations and social groups -- so it's hard to market to one without alienating the rest."
|
|
Manufacturer/brander/marketer apathy - 10 mentions
"The retailer knows whether they have Hispanic customers. Without brand oriented initiatives, you leave the Hispanic marketing to the retailers -- we all know where that goes. The #1 obstacle is a lack of commitment from brand marketing departments."
|
|
Lack of awareness/understanding of marketing opportunities - 10 mentions
"Ignorance of the market potential price points, lack of market data to describe how best this market prefers to be reached; key message points, imagery, etc."
"Understanding the demographic mix as well as why and how they buy."
"Understanding the different cultural needs and filling that gap between the general market items and the true ethnic item. Also using the proper media to reach the consumer and getting the right message across."
|
What are the key obstacles to reaching Hispanics at the retail level?
| Selected Verbatim Responses |
|
Pre-existing brand loyalties as barriers - 9 mentions
"Hispanics are very brand conscious - not a whole lot of experimentation with different brands or offers."
"There is a great need to educate them on the benefits of many products that don't exist in their home countries. Many are using traditional, home remedies or price brands."
|
|
Weakness in distribution channel elements - 9 mentions
"Getting distribution in the bodegas and executing in-store materials to support distribution when it's there."
"Identification of retail locations and specific sub-segments trafficking those locations and which products purchased."
|
|
Absence of proof of performance/evaluations - 9 mentions
"Most National panel data does not represent Hispanic households correctly. They are either missing Spanish speaking households, or in some cases any Hispanics outside major metropolitan areas."
"We need to get our IT systems up to speed to easily understand who our consumers are and what they want. We then need to practice category management to please our customers."
"More of an obstacle to reach Hispanics at the HH level without generating a lot of waste. In addition, marketing to segments becomes difficult to align with efficient media usage. Testing is crucial to quantify the results of such efforts and spending."
|
|
Absence of large retail chains and not cost effective in terms of cost efficiencies - 8 mentions
"Small size of retail establishments means more labor to reach audience, but we adamantly believe it is worth the effort."
"Have to pay for programs to cover the whole chain but only a few selected stores index high against Hispanics - very costly program for the volume impact obtained."
|
|
Weakness in current economy, unavailability of budgets - 5 mentions
"No money available in the budget. Until my client has enough dollars to reach their goals for general market, we can't set money aside for secondary targets."
|
|
Urban behavior of shoppers - 4 mentions
"Many Hispanics live in severely urban areas, where smaller 'Mom and Pop' stores (bodegas) exist. Latinos feel that these stores are the most convenient and do not need to purchase at larger retailers which may be far from these areas."
|
|
Anti-ethnic feelings - 3 mentions
"Non Hispanic customers feel threatened - and there is VERY STRONG anti-Hispanic feeling in the state."
|
How many Hispanic markets are you currently reaching?
Total Number of Responses: 230
|
Response
|
Agencies
|
Brands
|
Retailers
|
Overall
|
| None |
5% |
12%
|
0%
|
6%
|
| 1-2 |
10% |
3%
|
22%
|
9%
|
| 3-5 |
31% |
37%
|
43%
|
34%
|
| 6-8 |
6% |
1%
|
0%
|
4%
|
| 8-10 |
26% |
24%
|
17%
|
24%
|
| 10-15 |
9% |
6%
|
4%
|
7%
|
| 16-20 |
6% |
1%
|
13%
|
5%
|
| 21 or more |
8% |
16%
|
0%
|
9%
|
How would you describe the number of Hispanic markets your programs currently reach?
Total Number of Responses: 230
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Too few |
74% |
63%
|
63%
|
69%
|
| Too many |
1% |
4%
|
4%
|
3%
|
| Just the right number |
25% |
33%
|
33%
|
28%
|
How satisfied are you with your ability to reach Hispanic consumers via retail merchandising activities?
Total Number of Responses: 230
| Response |
Agencies |
Brands
|
Retailers |
Overall |
| Extremely satisfied |
4% |
4%
|
4%
|
4%
|
| Very satisfied |
7% |
0%
|
4%
|
4%
|
| Satisfied |
43% |
51%
|
46%
|
46%
|
| Very dissatisfied |
41% |
32%
|
25%
|
37%
|
| Extremely dissatisfied |
5% |
12%
|
21%
|
9%
|
|
