Hispanic Retail Pilot Test Summary May 2008 Funded by The Beef Checkoff
The Hispanic beef challenge U.S. Hispanics represent 44.3 million people and are growing three times faster than any other ethnic group. Hispanics love beef but have a hard time finding what they want at supermarkets. Many Hispanics shop at mainstream supermarkets for groceries but buy beef at carnicerías (meat markets). Sources: Synovate, 2006; The Beef Checkoff, 2005. 2
The Hispanic beef challenge How can mainstream supermarkets merchandise beef more effectively to Hispanics to capture a larger share of their beef purchases? Sources: Synovate, 2006; The Beef Checkoff, 2005. 3
Why producers funded this work Beef producers recognized the size and purchasing power of the fastgrowing Hispanic population, as well as their love for beef. Retailers and State Beef Councils wanted help marketing to Hispanics. 4
Who this program benefits Retailers who have a significant Hispanic population in their market Mainstream retailers who have limited experience with Hispanic marketing, particularly regarding beef 5
How this program was developed Utilizing knowledge from previous research conducted by the California and Texas Beef Councils Conducting qualitative research Focus groups with Spanish-dominant and bilingual Hispanics in Southern California Focus groups with Hispanic meat cutters in Southern California Conducting quantitative research Bilingual telephone interviews in Los Angeles, Houston and Miami 6
How this program was executed Conducting a pilot study 12 stores in southern California and Las Vegas, NV Consumer intercepts and retailer surveys 7
2007 Retailer Point of Sale Elements These materials were created to be the 2007 Hispanic Beef Marketing Retailer Point of Sale Elements: Bilingual peel-off recipe labels Bilingual Dictionary of Beef Cuts Bilingual Beef Cuts & Dishes poster Mini-Carnicería case section elements Labels for the three most popular Mexican beef cuts How to Appeal to Hispanic Beef Customers manual 8
Description of point of sale elements: Bilingual peel-off recipe labels Based on current Easy Fresh Cooking peel-off labels Six recipes for popular Hispanic dishes Top Loin Steak Mexican Style Beef Fajitas with Pico de Gallo Mexican Beef Stew Lomo Saltado Ropa Vieja Beef Brochettes 9
Description of point of sale elements: Bilingual Dictionary of Beef Cuts Attractive, free 6 x 9 take-home piece Outlines beef cuts preferred by Hispanics and most common dishes prepared with those cuts Beef cut names based on the research and optimized for clientele of Mexican origin 10
Description of point of sale elements: Bilingual Beef Cuts & Dishes poster 3 x 4 laminated color poster for the meat department Comprehensive list of bilingual meat cuts, as well as the most common Latino dishes prepared with them Beef cut names optimized for clientele of Mexican origin 11
Description of point of sale elements: Elements for a Mini-Carnicería Spanish-language signage creating a special Mini-Carnicería in the self-service meat case with meat cuts Latino customers prefer Rail Strip* Carnicería Latina Spanish Auténticos cortes de res Latinos English Translation Latino Meat Market Authentic Latino beef cuts 12
Description of point of sale elements: Elements for a Mini-Carnicería Divider Strips* Spanish Cortes frescos de hoy Saborée sus platillos típicos! Como en nuestra tierra! La carne es rica en proteínas Las proteínas forman cuerpos fuertes English Translation Today s fresh cuts Enjoy your traditional dishes! Like in our home country! Beef is rich in protein Protein builds strong bodies 13
Description of point of sale elements: Labels for popular Hispanic beef dishes MILANESA CARNE ASADA Labels for these three popular dishes provided a strong merchandising opportunity: Milanesa (46% prepare often ) Carne Asada (36% prepare often ) Ranchera (17% prepare often ) Meat department associates applied self-stick labels during the pilot test. RANCHERA Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007. 14
Description of point of sale elements: How to appeal to Hispanic customers What Latinos prefer and look for as part of their beef purchase cycle Relationship between freshness, quality and price/value Bilingual solutions for communicating beef freshness Which cuts to carry, as space allows List of popular Hispanic dishes and cuts used most often to prepare them Suggestions on additional Hispanic beef marketing activities 15
Pilot test results: Sales Overall, test stores achieved a 28.7% sales increase of thin cuts during the test period versus year ago. Tested elements in 12 stores for 10 weeks, August October, 2007 Southern California Las Vegas Evaluated through Sales Data Consumer Intercepts Retailer Survey Source: Store data. 16
Pilot Test Results: Retailer Survey Observations Test store meat department associates were surveyed in mid- October 2007. Overall observations: All stores believed they were selling more thin meats than before. The dictionaries were considered the best element of the program. The poster helped to point out the different cuts to customers. All stores commented on the need to obtain more communication from upper management prior to the test. Source: Beef Checkoff Retailer Audits, 2007. 17
Pilot test results: Retailer survey observations Comments regarding sales The thin meat section is empty every day; definitely selling more We had some customers who would normally not buy meat here Some of the regular customers commented they bought product they had never tried before Thought they were selling more thin meats than before Store sales and meat sales are on an increase, and they are seeing new faces Source: Beef Checkoff Retailer Audits, 2007. 18
Pilot test results: Retailer survey observations Comments regarding the dictionary Customers liked the dictionary and the recipe labels Lots of comments on the dictionaries; they ask for them if we run out, and they read them at the case Customers liked the dictionary and asked the meat cutters where some of the cuts come from Customers thought the dictionary was very good Customers liked the dictionary and read it while they waited at the butcher Source: Beef Checkoff Retailer Audits, 2007. 19
Pilot test results: Retailer survey observations Comments regarding overall evaluation of the pilot test Thought the program had been successful Customers like everything that is printed in Spanish; it makes them feel at home. Some customers do not speak any English It helped to let customers know we are trying to better serve them The store thinks that customers appreciate anything they do to make them feel more comfortable It let our customers know we are trying to give them what they want Source: Beef Checkoff Retailer Audits, 2007. 20
Pilot test results: Consumer store intercepts Hispanic consumers purchased more beef at test stores and were more satisfied with their beef shopping experience. 88% of test store respondents bought beef at the test store more than seven times in the past two months vs. 68% in control stores. 51% of test store respondents rated the meat department at the test store as excellent vs. 32% for control stores. 60% of test store respondents said the staff was knowledgeable about Latino beef cuts vs. 19% at control stores. Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 21
Pilot test results: Consumer store intercepts Consumers noticed positive changes in test store meat departments: 58% saw new cuts vs.18% in control stores 50% saw bilingual signage vs. 4% in control stores 57% said the changes they noticed in the meat department in the last two months were excellent vs. 25% in control stores Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 22
Pilot test results: Consumer store intercepts Consumers would recommend the test stores: 83% are very likely or already have recommended this store to friends because of the changes they saw vs. 57% in control stores Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 23
Pilot test results: Consumer store intercepts Consumers noticed the new point of sale elements: 30% saw the new signs at the beef section the day they were surveyed vs. 13% in control stores Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 24
Pilot test results: Consumer store intercepts Consumers liked the Bilingual Dictionary of Beef Cuts: 25% of test store respondents picked up a Dictionary the day of the interview or before 48% of the Los Angeles respondents picked it up 99% found it useful or informative 86% are going to keep it and 13% are going to give it to somebody 98% think the brochure is excellent or very good Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 25
Pilot test results: Consumer store intercepts 40% of test store respondents noticed bilingual recipes on the beef packages 90% think the idea of these bilingual recipes is excellent/very good 96% think they will use these recipes 66% noticed the labels in one test store Two-thirds of respondents in a different test store purchased a beef package because of the bilingual recipe label Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007. 26
No negative comments Neither the retailer survey nor the consumer store intercepts yielded ANY negative feedback on the program from either store personnel or consumers 27
The Beef Checkoff s Hispanic program proved highly successful The 2007 Hispanic Beef Retail Point of Sale Elements: Boosted sales at mainstream supermarkets of Latino beef cuts Provided meat department staff with tools to better identify and merchandise Latino beef cuts Improved Hispanic awareness and consumption of beef 28
The American Marketing Association honored this program The American Marketing Association recognized the 2007 Hispanic Beef Retail point of sale elements as one of the most effective national marketing campaigns of 2007 by awarding it the prestigious Effie Award. 29
Thank you Funded by The Beef Checkoff