Hispanic Beef Marketing Retailer Webinar July 10, 2008 www.beefretail.org Funded by The Beef Checkoff 1
Agenda Why the Beef Checkoff Funded this Program Who this Program is Designed to Benefit Program Background Major Elements Point of Sale Elements Availability How to Access The Materials 2
Why the Beef Checkoff Funded This Work Hispanic are fastest growing segment of the US population Love beef! Purchase more beef than other segments 3
Hispanics are the Largest Ethnic Group in the Nation 44.3 million strong and growing three times faster than any other ethnic group Hispanics have Larger Families Have More Kids Spend More on Groceries Spend More on Beef Sources: 2006 U.S. Census Bureau; Nielsen Media Research 2005 Universe Estimates; 2005 FMI El Mercado Study 4
Hispanics are Growing Fast in Every State % Chg. % Chg. STATE 03 Pop. vs. 90 STATE 03 Pop. vs. 90 Alabama 89,195 +262% Kentucky 71,905 +227% Alaska 29,920 +68% Louisiana 117,260 +26% 6) Arizona 1,549,889 +125% Maine 10,549 +54% Arkansas 100,378 +405% Maryland 262,351 +110% 1) California 12,176,087 +58% Massachusetts 478,350 +66% 8) Colorado 847,472 +100% Michigan 357,339 +77% Connecticut 351,881 +65% Minnesota 164,941 +206% Delaware 43,143 +173% Mississippi 43,441 +173% D.C. 53,289 +63% Missouri 130,928 +112% 3) Florida 3,160,287 +101% Montana 19,708 +62% 10) Georgia 541,123 +397% Nebraska 106,914 +189% Hawaii 95,032 +17% Nevada 491,376 +295% Idaho 119,066 +125% New Hampshire 23,401 +106% 5) Illinois 1,726,822 +91% 7) New Jersey 1,254,466 +70% Indiana 242,518 +145% 9) New Mexico 810,060 +40% Iowa 92,471 +183% 4) New York 3,132,186 +41% Kansas 212,500 +127% North Carolina 466,704 +508% % Chg. STATE 03 Pop. vs. 90 North Dakota 8,435 +81% Ohio 232,447 +66% Oklahoma 199,748 +132% Oregon 326,361 +190% Pennsylvania 423,499 +82% Rhode Island 102,660 +124% South Carolina 114,217 +274% South Dakota 11,673 +122% Tennessee 146,000 +346% 2) Texas 7,556,869 +74% Utah 233,425 +176% Vermont 5,870 +60% Virginia 394,856 +146% Washington 508,199 +137% West Virginia 12,515 +47% Wisconsin 215,254 +131% Wyoming 34,052 +32% Source: U.S. Census Bureau, 2003 5
Hispanics Represent a Huge and Growing Consumer Segment U.S. Hispanic purchasing power grew from $212 billion in 1990 to $863 billion in 2007 Hispanic income is expanding 60-70% faster than general population at 7.4% a year 41% of Hispanic households are solidly middle class Source: The Selig Center for Economic Growth, Univ. of Georgia, 2007 6
Most U.S. Hispanic Adults were Born Abroad Almost three-quarters (74%) of U.S. Latinos 18+ are foreign-born This means their attitudes and habits regarding consumer products/services often reflect their experiences from back home Source: Synovate, 2006 7
Most U.S. Hispanics are of Mexican Origin U.S. Hispanics - Country of Origin Central and South American 14.3% Other Hispanic 6.5% Cuban 3.7% Puerto Rican 8.6% Mexican 66.9% Source: U.S. Census Bureau, 2002 8
The Spanish Language Dominates Among U.S. Hispanics U.S. Hispanics Language Preferred U.S. Hispanics Language Spoken at Home 3% 15% 11% 12% 28% 23% 22% 29% 25% 32% Only English Mostly Spanish Other Mostly English Only Spanish Only English Mostly Spanish Other Mostly English Only Spanish English & Spanish Equa Sources: Simmons Spring 2005 NHCS Adult Full Year Unified Study 9
Who is This Program Designed to Benefit? Retailers with a significant Hispanic population in their markets Mainstream retailers with limited experience marketing to Hispanics 10
Latinos are the Main Source of Growth for the Grocery Industry Hispanics go to grocery stores a whopping 26 times a month Source: Food Marketing Institute, El Mercado 2005 11
Acculturation Level Sharply Influences Store Visitation/Choices Acculturated Hispanic shoppers incorporate more mainstream values in their shopping behavior Less acculturated Hispanic shoppers prefer outlets where Hispanic foods and products are available to them Source: Food Marketing Institute, El Mercado 2005 12
Unacculturated Hispanics Visit Ethnic Stores More Often and Spend More Less acculturated Hispanics visit bodegas, carnicerías and panaderías more frequently Source: Food Marketing Institute, El Mercado 2005 13
Unacculturated Hispanics Visit Ethnic Stores More Often and Spend More Utilized learnings from previous research conducted by the California and Texas Beef Councils Conducted Qualitative Research Focus groups with Spanish-dominant and bilingual Hispanics in Southern California Focus groups with meat cutters in Southern California Conducted Quantitative Research Bilingual telephone interviews in Los Angeles, Houston and Miami Conducted a Pilot Study 12 stores in Southern California and Las Vegas, NV Conducting Consumer Intercepts and Retailer Surveys Research and program development were coordinated by HEILBrice and VISIÓNLatina 14
What We Learned - Hispanics Love Beef! The majority of Latinos (86%) consume 4 or more beef meals per average week Hispanic beef consumption is mostly stable or increasing over the last few years Their love of beef does not diminish as Hispanics spend more time in the U.S., as they learn English or as they age Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 15
Beef Plays a Key Role in Selecting a Store Most Hispanic consumers (72%) feel that a store s meat department is a powerful motivator in selecting a particular retailer There is a strong willingness to shop for beef in mainstream supermarkets if they carry the cuts Latinos are looking for Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 16
Motivators for Hispanics When Choosing a Particular Store to Buy Beef Most Important Better prices Proximity to home Quality of meat Meat is fresher Strong selection of cuts/types of meat that Hispanics prefer Second Tier in Importance Presence of butcher Good service, meaning I am treated well Overall cleanliness of the store Good selection of beef cuts such as heart/tongue/tripe/oxtail Bilingual staff Other groceries available Third Tier in Importance Other Hispanic products in the store Recommendation by friend/relative Fast check-out Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 17
Freshness is Essential Among the attributes identified by Hispanics as most important when selecting beef at the meat counter or meat case, the most important by far is: That the beef be very fresh (29%) Freshness: Meat that is bright red in color, with no blood/slime The next most important factors are: That the package has an expiration date (14%) That the beef does not smell bad (13%) That the package has a USDA stamp (9%) That the meat does not look slimy (8%) Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 18
The Supermarket s Prepackaged Meat Case and a Service Butcher are Both Important Purchase Channels % Of Monthly Beef Grocery Shopping Visits by Channel Options Supermarket Prepackaged Meat Case Supermarket Butcher/Carnicería Butcher/Carnicería Not in Supermarket Club/Warehouse Store Spanish-Dominant Shoppers 38% 21% 24% 9% Bilingual Shoppers 30% 26% 20% 15% Mass Merchandiser 8% 9% Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 19
Foundational Hispanic Beef Cuts There are four foundational cuts that Hispanic consumers look for ( purchased & prepared last month ): Milanesa (58%) Ground Beef (52%) Ranchera (30%) Ribs (30%) Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 20
Additional Hispanic Beef Cuts Other popular cuts recommended to round out a Hispanic selection ( purchased & prepared last month ): Beef for Brochettes - cubed beef (27%) Beef for Shredding - made from skirt, flank, etc. (26%) Top Loin (22%) Flank / Falda (12%) Tongue (12%) Chuckroll / Diezmillo (10%) Chuck / Neckbones (8%) Skirt / Arrachera (7%) Cecina - cured beef (6%) Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 21
A Wide Variety of Beef Dishes are Commonly Prepared by Latinos Popular Hispanic beef dishes based on prepare often responses: Traditional Other Favorites Broader List of Dishes Milanesa - thin, flat steak, pounded and breaded (46%) Carne Asada (36%) Caldo de Res - beef broth (29%) Fajitas (29%) Bistec - thin steak (25%) Tacos (20%) Carne Guisada - stewed beef (20%) Picadillo - sautéed ground beef (18%) Ranchera - thin, flat condimented steak (17%) Steaks (16%) Meatballs (14%) Bistec Empanizado - breaded steak (14%) Hamburgers (11%) Tinga - shredded, condimented beef (7%) Roast Beef (7%) Tamales (6%) Bistec en Cazuela - sautéed beef (6%) Ropa Vieja - shredded, sautéed beef (5%) Bistec de Palomilla - marinated, grilled beef (5%) Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 22
Bilingual Beef Package Labeling is Important The most important identifier to include on a beef package or case is the bilingual name for the cut Also, it is advantageous to identify on the package the most likely cuts used for Ranchera, Milanesa and Carne Asada Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 23
How a Store Can Serve Hispanic Beef Consumers Better Respondents would like a meat department to do the following to serve them better: Provide recipes (52%) Provide pre-marinated products (50%) Provide samples and their recipes (45%) Provide information on which cuts are best for a particular dish (45%) Use bilingual labeling (41%) Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 24
2007 Retailer Point of Sale Elements Based on this research, the following materials were created as part of the 2007 Hispanic Beef Marketing Point of Sale Elements: 1. Bilingual Peel-Off Recipe Labels 2. A Bilingual Beef Cuts & Dishes Dictionary 3. A Bilingual Beef Cuts & Dishes Poster 4. Elements for a Mini-Carnicería Case Section 5. Labels for the Three Most Popular Mexican Beef Cuts 6. A Manual on How to Best Market Beef to Hispanics 25
Description of Point of Sale Elements 1. Bilingual Peel-Off Recipe Labels Current Easy Fresh Cooking format Six Latino recipes reflecting popular Hispanic dishes were developed: Top Loin Steak Mexican Style Beef Fajitas with Pico de Gallo Mexican Beef Stew Lomo Saltado Ropa Vieja Beef Brochettes 26
Description of Point of Sale Elements 2. Bilingual Beef Cuts & Dishes Dictionary An attractive 6 x 9 take-home piece Outlines the beef cuts preferred by Hispanics and the most common dishes prepared with them 27
Description of Point of Sale Elements 3. Bilingual Beef Cuts & Dishes Poster Large 3 x 4 laminated color poster for use in the store s meat department Contains a comprehensive list of meat cuts in Spanish with their English equivalents, as well as the most common Latino dishes prepared with them 28
Description of Point of Sale Elements 4. Elements for a Mini-Carnicería Case Section Provides Spanish-language signage materials for a special beef section in Self-Service Meat Case that creates a destination for Latinos, offering their preferred meat cuts Elements: Rail Strip - Brands section, communicates Authentic Latino Beef Cuts Divider Strips - Four different versions: Cortes frescos de hoy - Today s fresh cuts Saborée sus platillos típicos! - Enjoy your traditional dishes! Como en nuestra tierra! - Like in our home country! La Carne de Res, qué buena es. - Beef. It s What s for Dinner. 29
Description of Point of Sale Elements 30
Description of Point of Sale Elements 5. Labels for Three Most Popular Hispanic Beef Dishes MILANESA CARNE ASADA Due to their popularity, labeling these three popular dishes proved a strong merchandising opportunity Milanesa (46% prepare often ) Carne Asada (36% prepare often ) Ranchera (17% prepare often ) Self-stick labels for application by meat department associates RANCHERA Source: Beef Checkoff Study: Quantitative Hispanic Retail Shopper Insights, 2007 31
Description of Point of Sale Elements 6. Manual on How to Best Market Beef to Hispanics Provides retailers with facts on what Latinos prefer/look for as part of their beef purchase cycle Discusses the relationship between freshness, quality and price/value Provides bilingual solutions for communicating freshness Discusses which Hispanic cuts to carry as case space allows Provides a list of popular Hispanic dishes and the cuts most commonly used to prepare them Offers suggestions on additional Hispanic beef marketing activities, such as beef demos 32
Hispanic Recipe Cards on lacarnederes.com 33
Pilot Test Tested elements in 12 stores Southern California Las Vegas Test was 10 weeks, August October, 2007 Evaluated through Sales Data Consumer Intercepts Retailer Survey 34
Pilot Test Results - Sales Test stores achieved significant sales increases of 28.7% beef cuts preferred by Hispanics (thin cuts). 35
Pilot Test Results - Consumer Store Intercepts Hispanic consumers purchased more beef at test stores and were more satisfied with their beef shopping experience than at control stores: Among respondents in test stores, 88% bought beef at this particular store 7+ times in the past two months vs. 68% in control stores Significantly more respondents in test stores (51%) rated the meat department at this particular store as excellent for fulfilling their needs vs. control stores (32%) Significantly more respondents in test stores (60%) said the staff is knowledgeable about Latino beef cuts vs. control stores (19%) Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007 36
Pilot Test Results - Consumer Store Intercepts Hispanic consumers noticed positive changes in the test stores: Significantly more respondents in test stores reported: They saw new cuts (58%) as the way they became aware that something was different in the meat department, vs. control stores (18%) They saw bilingual signage (50%) as the way they became aware that something was different in the meat department, vs. control stores (4%) Said the changes they noticed in the meat department in the last 2 months were excellent (57%) vs. control stores (25%) Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007 37
Pilot Test Results - Consumer Store Intercepts Significantly more respondents in test stores (83%) vs. control (57%) are very likely / already have recommended this store to friends given the changes they have seen Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007 38
Pilot Test Results - Consumer Store Intercepts The Bilingual Beef Cuts & Dishes Dictionary proved extremely popular with consumers: Among respondents in test stores, 25% picked up a Dictionary at the meat department on the day of the interview or before 62% think the dictionary is excellent and 35% think it is very good 99% found it useful/informative Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007 39
Pilot Test Results - Consumer Store Intercepts Consumers noticed the bilingual peel-off recipe labels on beef packages, and the labels influenced their purchase decision: 40% of respondents in test stores noticed bilingual recipes on the beef packages In the San Diego test stores, two-thirds of respondents said they purchased the beef package because of the bilingual recipe label Among respondents who noticed bilingual recipes in test stores: - 90% think that the idea of these bilingual recipes is excellent/very good - 96% think they will use these recipes Source: Beef Checkoff Study: Quantitative Performance of Hispanic Toolkit, 2007 40
The Beef Checkoff s Hispanic Program proved highly successful In summary, the Hispanic Beef Retail Point of Sale Elements: Boosted sales at mainstream supermarkets of Latino beef cuts, providing meat department staff with tools to better identify and merchandise them Improved Hispanic consumer awareness and consumption of beef, by providing elements that helped in their beef selection process and spurred incremental beef usage The program was recognized by the American Marketing Association as one of the most effective national marketing campaigns of 2007 with the prestigious Effie Award 41
Pilot Test Results - Retailer Survey Observations A survey of test stores meat department associates yielded the following feedback: Sales: The thin meat section is empty every day; definitely selling more Store sales and meat sales are on an increase and they are seeing new faces 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 Source: Beef Checkoff Retailer Audits, 2007 42
Pilot Test Results - Retailer Survey Observations Overall Evaluation: 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 43
Hispanic Point of Sale Elements and Ordering info The following elements will be available from NCBA Customer Service. They can be viewed at http://www.beefretail.org/resohispanictoolkitelements.aspx as well. - Bilingual Beef Cuts & Dishes Poster - Bilingual Beef Cuts & Dishes Dictionary - Poster and Counter Sign - Mini-Carniceria rail strips (8) The following element is available on BeefRetail.org: http://www.beefretail.org/udocs/howtobest marketbeeftohispanicsmanual.pdf. - How to Best Market Beef to Hispanics Manual Call 1-800-368-3138 to order 44
Hispanic Point of Sale Elements and Ordering info The following element is available from Yerecic Label (724-334-3300 ) - Bilingual Peel-off Recipe Labels The following element would be ordered from your label supplier: - Three most popular Mexican beef cuts - Carne Asada - Ranchera - Milanesa 45
Presentation Decks Coming Soon! To share information with your company, go to http://www.beefretail.org/resehispanicpilotprogram.aspx. There will be five presentations available for download. 1. Hispanic Beef Marketing 2. Hispanic Market Demographics 3. Hispanic Supermarket Consumer 4. Hispanic Beef Lover 5. FY07 Hispanic Retail Pilot Test Summary Hispanic merchandising information will be available here: http://beefretail.org/markhispanicmerchandising7774.aspx. These materials will be available soon! You will receive an email to alert you that they are available. 46
For More Information, Contact: Your State Beef Council or Retail Marketing Manager (http://www.beefretail.org/contactus.aspx) Jim Henger jhenger@beef.org 303-850-3379 47