The Multi-Cultural Latino Consumer: A Hartman Group & MSLGROUP Study

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

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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 today’s multicultural consumers.

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

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Brand strategy Product launches Media tours Content development Digital marketing

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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

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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

Š 2013 The Hartman Group, Inc

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Hispanic Public Relations Association

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

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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

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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 • • • • •

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

Charlotte, N.C. Raleigh area, N.C. Atlanta, GA Orlando area, FL Ft. Myers-Naples, FL

© 2013 The Hartman Group, Inc

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2013 Research Highlights

Methodology: A two-phase qualitative AND quantitative research approach Phase 1: Ethnography

Phase 2: Quantitative Survey

Primary ethnographic research

A national online survey •

1,283 Latino origin respondents (representing over 20 countries of origin) reflecting Latino U.S. adults (ages 18-64)

Engagements consisted of:

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• One-On-One, In-Home Interviews

413 non-Latino reflecting nonLatino U.S. adults (ages 18-64)

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• Multi-Generational, In-Home Interviews

Conducted in both English (909) and Spanish (787)

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Fielded February /March 2013

• Shop & Talk Interviews

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Results were then weighted to accurately reflect the U.S. adult Hispanic/Latino and nonHispanic/Latino populations

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Fielded in two major U.S. markets – Seattle, WA and Dallas, TX in January 2013

• 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

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

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

Š 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%

Bi-Cultural 47%

Acculturated 31%

Language spoken at home

97% Spanish dominant

58% Equally Spanish/ English

86% English dominant

Media habits

88% Spanish only/mostly

58% Equally Spanish/ English

98% English only/mostly

Years in U.S. (median)

97% foreign-born 5-9 years

60% foreign-born 20+ years

88% U.S.-born 20+ years

Overall Cultural Identification

91% closer to Latino

45% equally close to both

55% closer to U.S.

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

Š 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

Globalization

Country of Origin

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 one’s position on the acculturation model

Unacculturated

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.

Bi-Cultural

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”.

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

Š 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…

72% 65%

Being physically fit*

69% 69%

Feeling good about myself

65% 66%

Not being ill

60%

Being happy and cheerful*

72% 58% 64%

Not being overweight

53% 61%

Being able to enjoy time with my family* Maintaining a spiritual balance

45% 49%

Consuming natural and wholesome foods*

42% 50% 37%

Being confident about achieving my goals in life* Being in tune with nature* Donating time or money to my community*

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

53% 28% 35% 15% 22%

Non-Latino Latino

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

43% 53%

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

• 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 one’s body for overall feel and energy

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Eat fresh and organic (although does not have to be certified organic) and avoid processed foods when possible

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Use food as medicine •

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Canella, pollens, spices/herbs, bitter melon, chia seeds

Canella tea is a cure-all

Kombucha for digestion

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 Latinos—fostering connection with one another and their culture and traditions.

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

Š 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

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Holidays from Country of Origin

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Celebrating religious holidays

Using more intimate settings as a venue for enjoying family as well •

Family dinners

Indirectly supporting family values through: •

Language

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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 one’s Country of Origin Important Cultural Aspects to Maintain Teach my children how to speak Spanish*

94% 95%

58%

Eat together with family at meals

77% 62%

Celebrate US national holidays (e.g., Fourth of July, Thanksgiving) Eat foods or drink beverages from my cultural heritage Celebrate Hispanic/Latino national holidays

Follow my favorite Hispanic/Latino sports teams (e.g, soccer) Follow the latest Hispanic/Latino entertainment (e.g., movies, tv shows)

74%

84%

62% 68% 62% 66% 67%

44%

Celebrate important birthdays of Hispanic/Latino culture Attend religious events such as Christmas midnight Mass Follow the latest Hispanic/Latino news

92% 89%

Unacculturated

64% 64%

43%

Bi-Cultural

55% 54% 55% 62%

23% 17% 20%

Acculturated 79%

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

Š 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.

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

The Hartman Group’s 2010-2012 Eating Occasions data shows how acculturated Latino eating occasions differs from those Non-Latinos

Alone eating occasions* Family eating occasions*

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 don’t have much of a choice. – Tammy

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

Non-Latinos

Latinos

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.

© 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

Š 2013 The Hartman Group, Inc

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Latinos place great emphasis on eating fresh foods This includes:

More acculturated Latinos are more accepting of packaged goods.

• Deep understanding of the growing process •

A desire to cultivate one’s own food through home gardens

Purchase of Canned Beans

• A preference for whole foods •

Packaged foods are seen as poorer quality and for Americans

• Seeking foods with no preservatives or other additives; grass fed/cage free are added bonuses •

7%

31%

55%

Unacculturated

Bi-Cultural

Acculturated

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

Organic is a distinction Latinos want but don’t always prioritize; price and freshness are of greater value

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.

82%

of Latinos choose fresh foods over packaged

• 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.

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 65% 66%

American classics 27%

Chinese

2.1

Indian

3% 5% 38%

Italian-American

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

Japanese

45%

31% 6% 14% 73%

Mexican

64% 26%

Spanish

17% 22%

Tex-Mex Thai Latin American

17%

Home Cooking

3% 7% 51%

Dining Out

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, cafés, 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 Latino’s 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

Š 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

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Not always the most convenient but worth a weekly trip

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Not always the answer, but the Latino products they carry are closer than any conventional store

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A place to buy quality fresh products but also where native “junk” can be purchased too!

A place of emotional importance •

A local store that has local owners with a community feel

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A link to home and a place to introduce children to culture

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A family outing

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A place of respect – can converse in Spanish, not looked down upon if ask question, good deals, good quality

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A place to browse and learn

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

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

My dad missed home and didn’t 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

© 2013 The Hartman Group, Inc

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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 • • •

$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.

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

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

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

© 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.

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Visit it rarely – when in need of a more commodity type Latino product (dry rice or dry beans for example)

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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

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Feel it is mostly for Americans trying to cook a Latin dish

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

“These aren’t really what I would use. I’m sure people who don’t know better would use these, though.”

– Sonia

© 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

Š 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 brand’s 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 Juan’s 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 winner’s breakfast Results • 4,800 entries • More than 155 media placements reaching an audience of nearly 35 million • Secured media interviews on Univision’s “Primer Impacto” and “Primera Edición,” La Opinión, EFE news agency and Univision radio show “El Show de la Mañana 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 Frappuccino’s 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 LATV’s Esta Mañana, 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

Š 2013 The 35 Hartman Group, Inc

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