Sedano’s Supermarket, the largest Hispanic-owned supermarket chainin the U.S., recently introducedNuestra Sazón magazine, the first step in its retail media network launch. The custom publication comes in digital and print versions and is aimed at celebrating Latin cuisine and culture. Portada interviewed Javier Herrán, Chief Marketing Officer, Sedano’s. to learn more about Nuestra Sazón and other projects related to Sedano’s retail marketing strategy.
With headquarters in Miami-Dade County, Sedano’s employs approximately 3,000 associates and operates 34 stores across Florida in Miami-Dade, Broward, Orange, and Osceola counties.
In the digital age custom print publications have perhaps lost some of their allure. Yet Sedano’s recently introduced this bilingual magazine with a circulation of 52,500 mailed directly to homes across Sedano’s primary market in Florida. Nuestra Sazón, launched with the help of Havas House — the global custom media, content and publishing division of Republica Havas — is published three times a year (March, July, November) and has an average readership of 105,000 readers. “We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth,” says Javier Herrán, Chief Marketing Officer, Sedano’s. “It has brought new brand partnerships to the table while vitalizing existing partnerships and customer experiences. It also provides the opportunity to speak to customers while they’re at home, as they’re creating their shopping lists and build relationships with them outside of the stores,” he adds.
Using Retail Media as an Extension of Sedano’s Existing Marketing Strategy
“Nuestra Sazón acts as an extension of Sedano’s existing marketing strategy, promoting the brand ethos in a new light that’s more humanized and approachable.” CMO Herran notes. He adds that “the magazine celebrates the richness of the Hispanic cuisine and culture through engaging content, local stories, and comida criolla recipes customers can cook at home using ingredients from featured brands.”
We know and understand that print is still a very important medium with our consumers, and it felt like an appropriate avenue to explore to continue Sedano’s brand growth.
Sedano’s further promotes the magazine and its content via social media campaigns and monthly e-newsletters to its more than 32,000 subscribers. Sedano’s Retail Media Network , of which Nuestra Sazón magazine is the first step, will provide supporting brand partners with the opportunity to creatively showcase their products throughout the supermarket chain’s vast reach in Florida.
Sedano’s comsumer touchpoints are multichannel which is reflected in the above-described multichannel marketing strategy. Herran states that Sedano’s offers its customers a number of ways to shop. “We feel that we need to reach our customers where they want to be and where they want to shop conveniently. Our customers have the ability to shop our stores in person or online through various platforms, including our website, www.sedanos.com, Cornershop by Uber, Shipt, DoorDash, Uber Grocery and on Uber Eats. Our goal is to reach every consumer with our unique product offerings regardless of the platform they choose to use,” Herran concludes.
The top retailers consolidated their power in 2021 while a pack of grocers including Amazon Fresh, Walmart Neighborhood, and Brookshire’s moved fast up the omnichannel marketing ranks. Retailers in the first quartile achieved long-term sales growth that is nine times higher than their counterparts in the fourth quartile.
Dunnhumby, a leader in customer data science, released the fifth annual dunnhumby Retailer Preference Index (RPI), a comprehensive, nationwide study that examines the approximately $1 trillion U.S. grocery market. In a second-year dominated by Covid-19, Amazon cemented its leadership position, with H-E-B following in second place and Market Basket leapfrogging three retailers to take the third spot away from Trader Joe’s. Wegmans held onto the fourth spot for the second year in a row.
In its first year in the RPI, Amazon Fresh vaulted past 55 other retailers to land in the fifth spot. The 10 additional retailers with the highest overall customer preference index scores are: 6) Aldi, 7) Trader Joe’s, 8) Sam’s Club, 9) Costco, 10) Walmart Neighborhood Market, 11) Target, 12) Publix, 13) Walmart, 14) BJs Wholesale and 15) Fareway.
Retailers who delivered on their customers’ evolving needs in-store and online performed best.
“The pandemic has massively accelerated changes in how customers buy their groceries, and their behaviors are continuing to evolve,” said Grant Steadman, President of North America for dunnhumby. “2021 was the year that grocery retail became truly omnichannel. Retailers who delivered on their customers’ evolving needs in-store and online performed best. This was mostly the larger players, who used their advantages to consolidate their positions. The challenges for most other retailers are significant, but a number of mid-size grocers gained momentum by understanding their customers better and differentiating their offering accordingly. The report aims to provide some direction on why and how retailers can best position themselves to win with customers, in this era of the Great Reinvention.”
The overall RPI rankings are the result of a statistical model that predicts how retailer execution on various customer needs – preference drivers – impact both lasting emotional bonds formed with customers, as well as near-term and long-term financial performance. Each preference driver score and emotional connection score is measured with data gathered from a customized, online survey of 10,000 U.S. households per year. The seven drivers of customer preference are: price, quality, digital, operations, convenience, discounts, rewards & information and speed.
Key findings from the study:
Price and quality are no longer head and shoulders above all other customer preference drivers in securing superior, long-term sales growth and emotional connection with shoppers. Price now sits alone at the top in importance with Digital and Quality tied for second. For the fifth consecutive year, Aldi’s laser focus on price secured the discount retailer with the highest ranking on price.
Retailers in the first quartile have long-term sales growth that is nine times higher than retailers in the fourth quartile, two times higher than retailers in the third quartile, and one and a half times higher than retailers in the second quartile. They also have superior short-term momentum to those in the other three quartiles, managing solid gains in 2021 surpassing even the height of the 2020 Covid boom, while some other retailers struggled to tread water.
Second-Quartile grocers have opportunities to also rise rapidly in the rankings by reinventing their relationships with their customers. Brookshires, Hy-Vee, Food Lion, the Giant Company and former second-quartile retailer BJs Wholesale made the biggest move up the rankings in 2021.BJs Wholesale, the Giant Company and Food Lion focus on personalization of the customer experience, through promotions, rewards and the right assortment helped them rise rapidly in the rankings. All three also delivered well-run operations that minimize out-of-stocks and maximize price consistency and logic. And most importantly, these three retailers delivered all of the above attributes without letting base price perception get to far behind Walmart, Costco and Aldi.Additionally, Brookshires and Hy-Vee also made big moves in the rankings due to their leadership in the omnichannel marketing experience that saves customers’ time. They are among market leaders in both ease and customer service in eCommerce and speediness of the in-store shopping experience.
Digital is king in driving momentum as Amazon has demonstrated over the last two years by being ranked as the top U.S. grocery retailer. Amazon is the top digital grocer followed by 2) Amazon Fresh, 3) Target, 4) Walmart and 5) Sam’s Club. These retailers clearly set themselves apart from the 2nd – 4th Quartiles in their omnichannel marketing transformation journey. Amazon, Target, and Walmart achieve clear gaps between each other and everyone else in digital capabilities. The gap in Digital pillar score between Walmart (ranked 4th) and Kroger (ranked 13th) is as big as the gap between Kroger and the 59th ranked retailer.
Omnichannel marketing examples
Grocery retail is now truly omnichannel, as Digital’s share of total grocery sales more than doubled during the pandemic, from 5% to 10% of sales, yet half of the U.S. grocery shopping population does not buy online and has no plans to. Nearly all online shoppers still buy in brick and mortar, where roughly 90% of all customer dollars are currently spent.
Retailers who use their own eCommerce platform, versus using Instacart or other third party platforms, have better customer perception of both the eCommerce shopping and delivery phases and performed better financially.
This year, the holiday shopping season is set to rebound from the uncertainties and anxieties of 2020 — and in a big way. Retail spending in physical stores is on track to grow more than six percent year-over-year, while ecommerce will triple that figure, at nearly 18% year-over-year growth.
By Yahoo’s Chief Business Officer Iván Markman.
The fact that holiday shopping will be more online than ever this year shouldn’t be too surprising. The Covid pandemic reshaped consumers’ digital habits — driving people online not only to buy, but to enjoy digital versions of the shopping experiences they expect from physical stores. And these habits are here to stay. Rather than being a stopgap solution, they’re making shopping and buying more seamless and enjoyable.
With that in mind, marketers need to make the most of the opportunities that have been cracked open by this evolution in how we all shop and buy. But if any retail marketers assume that means it’s safe to revisit strategies from 2019, they’ll be in for some surprises.
Here are 6 strategies to meet holiday consumers in this surging digital era and drive impact for your brand:
1. Engage consumers with new experiences
The brands that will win the holiday are cutting through the noise and the monotony. As more buying occurs online, consumers want new experiences that excite and inspire. Extended reality-enabled advertising — think AR and VR — can deliver that, giving shoppers 360-degree views of products, and allowing them to try before they buy virtually, from the convenience of their home or phone. Interactive CTV ads are also a growing opportunity as the technology has improved dramatically over the last several years to unlock greater customization and data-targeting.
New native advertising formats — from larger, fullscreen units to dynamic video — can incentivize shoppers to buy by offering discounts in imaginative, attention-grabbing ways.
They also offer real omnichannel engagement, inviting consumers to engage with TV ads using mobile devices to accelerate their path to purchase. And new native advertising formats — from larger, fullscreen units to dynamic video — can incentivize shoppers to buy by offering discounts in imaginative, attention-grabbing ways, for products they have already browsed and relevant products they have yet to discover. Pre-pandemic, marketers increased native spend by 24.6% and, given our new normal, contextualized shopping experiences will be even more critical.
2. Capture attention on screens at home and in stores
While more holiday shopping will be online than ever before this year, the experience will continue to be hybrid for most consumers, with a combination of in-store and digital buying. For this reason, an omnichannel approach is essential for retail marketers to get in front of consumers wherever they may be. Enter Digital-Out-of-Home (DOOH), which has advanced considerably in recent years to become a key part of any retail marketer’s advertising media mix. DOOH gives brands the ability to target shoppers on-the-go — digital billboards while waiting for the train, for example — and in-store, with companies bringing ad opportunities to POP signage and store aisles.
These channels are essential for reaching and engaging consumers with holiday promotions.
These channels are essential for reaching and engaging consumers with holiday promotions in the moment, while connecting their digital and offline experiences in a unique way that stands out. More of this inventory is available programmatically, as well, which enables deeper targeting and stronger impact. Retailers and brands need to take advantage of that shift.
3. Boost ROI through personalization
Speaking of personalization, don’t listen to the naysayers — consumers want ads to be targeted. In fact, 80% say they’re more likely to purchase if the brand in question provides personalized ad messaging. Right now, with so much attention in the industry on third-party cookie deprecation, it may seem as though the future of personalization is in question. But addressability will persist and thrive. Ultimately, brands need to take control of their first-party data, make use of high-quality second-party data from trusted partners and, with the help of tech partners, lean into cookieless IDs such as hashed emails or logins.
Consumers understand the trade-off of ads for free content so they want personalized ads.
By activating these strategies, retailers and brands can still take advantage of powerful, personalized formats like Dynamic Product Ads and Dynamic Creative for their campaigns that combine tailoring and compelling media. At the end of the day, consumers understand the trade-off of ads for free content so they want personalized ads. The experience just has to be done the right way, maintaining privacy while delivering value.
4. Entice shoppers with great deals
Brand loyalty has not been in so much flux in years.
This is an evergreen point, but it’s especially important in this moment where economic uncertainty remains, and savings are extremely important in incentivizing shoppers. Deals and discounts are especially important to Gen Z, whose buying power has grown considerably. Online shopping truly speeds up the process of deal discovery, facilitating browsing from multiple brands and retailers in multiple browser tabs or devices. Brand loyalty has not been in so much flux in years. Engaging digital formats are essential in this environment. Consider cross-device/cross-channel advertising, including native and dynamic creative.
5. Be a hub for the in-store shopping season
Consider that the physical store is often just the point of product pick-up (think BOPIS).
As in-store shopping continues, savvy brands and retailers can turn a consumer’s smartphone into a true IRL shopping companion. Mobile ads can become dynamic coupons, for example, with mobile-optimized branded content that can be saved in a mobile wallet. Brands can also create experiences where consumers research store reopenings and receive an offer for mapping the route to the location. Consider that the physical store is often just the point of product pick-up (think BOPIS). Brand retailers need to move away from thinking of the “in-store experience” and consider how omnichannel advertising speaks to the digital/in-store hybrid shopping methods consumers actually implement.
6. Leverage in-flight analysis tools
This holiday shopping season isn’t going to be like last year’s — or any other.
Despite holiday sales likely to increase in 2021, the pandemic and a variety of economic factors are creating global supply chain constraints. These challenges have been well-documented, convincing consumers to begin their shopping earlier than in previous years.
Fears of inflation and higher prices are also contributing, with 40% saying they “expect to shop and spend earlier than they did in 2020.” While marketers can’t directly control these issues, they can mitigate them by more accurately logging campaign performance and conversions to support planning. Traditionally, lower funnel metrics like sales are measured weeks after a campaign. With new in-flight sales analysis tools, however, advertisers can understand performance during a live campaign and leverage that data for managing and optimizing inventory.
This holiday shopping season isn’t going to be like last year’s — or any other. Consumers are adjusting to a new reality, and brands must do the same. Make your holiday marketing strategy unique, engaging, omnichannel, and personal and you will win customers during this competitive period.
Marketing Black Friday has been on marketers’ minds for many months. Retailers had online sales of US $8.9 billion last Friday (Black Friday), according to data from Adobe Analytics. This is the first time ever that growth reversed from the prior year. Portada’s editorial team analyzed data and reports and came up with 8 key points to take into account.
“For the first time ever, Black Friday saw a reversal of the growth trend of past years,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a report on U.S. e-commerce trends. Online spending last year on Black Friday totaled US $9 billion compared to US 8.9 billion this year
Black Friday Marketing Strategies have been on brand marketers’ minds for many months. 4 days of the 5-day holiday shopping event known as ‘Cyber 5’ or the ‘Turkey 5’ are over and Portada’s editorial team analyzed data and read many reports and came up with the following 8 points/trends for brand marketers to take into account:
1. Marketing Black Friday: Holiday Shopping Has Been Stretched Out because of…
Fresh shopping numbers released over the weekend suggest that more Americans stretched out their holiday shopping this year given concerns about COVID-19 and supply chain disruptions. Retailers have also spread out their promotional offers, giving another reason to start shopping earlier. A survey from the National Retail Federation found that 61% of consumers started purchasing holiday gifts before Thanksgiving, and 28% of their holiday shopping was done by early November.
2. …Supply Chain Shocks and Inflation
“There’s no doubt that both supply chain shocks and fears of inflation have disrupted consumers’ typical holiday shopping patterns,” Laura Wronski, senior manager of research science at Momentivewrote in an email to CNBC. “A lot of consumers have intentionally gotten an early start on their holiday shopping because they don’t want to be left empty-handed at the holidays!”. “It’s one thing to wait a few months for a new couch to be delivered; it’s another to try to explain to your kids why Santa isn’t coming until January,” Wronski added.
3. …Lower Discounts Also Explain Lower Black Friday Sales
Relatively low Black Friday sales figures can also be explained by less discounting by retailers. According to an analysis by Refinitiv, the average promotional discount across major retailers heading into Black Friday was 33.4%, compared to an average discount of 37% that was offered in October and the early part of November.
4. …Brick and Mortar Store Visits Were Significantly Lower than in 2019
Visits to stores and shopping centers climbed 48% from a year ago while trailing 2019 traffic by 28%, retail consulting firm Sensormatic said in a report. Retailers including Best Buy, Dick’s Sporting Goods, Kohl’s, Macy’s, Target and Walmart decided to keep their doors closedon Thanksgiving day this year. Traffic at retail stores also dropped substantially on Black Friday (28.3% compared with 2019 levels.)
During the holiday season as a whole this year, in-store visits are expected to lag 2019 levels by only 10% to 15%, said Sensormatic. Despite Covid-19 concerns, research points to consumers prioritizing in-store shopping to avoid potential shipping delays amid well-publicized logjams in the global supply chain.
During the holiday season as a whole this year, in-store visits are expected to lag 2019 levels by only 10% to 15%.
5. Electronics and Video Games, Top Online Sales Items
According to Adobe, electronics and video games dominated the list of top-selling products bought online. Items included televisions made by Samsung and Vizio, Oculus Quest 2 — Meta’s virtual reality headset — and video game titles such as FIFA 22 from Electronic Arts and Ubisoft Entertainment’s Far Cry 6. Most-purchased toys included Legos and Rainbocorns.
6. Marketing Black Friday: Shoppers Increasingly Use Buy Now Pay Later Options
Consumers are increasingly financing their holiday shopping with pay-later options and installment plans for their purchases. On Thanksgiving, purchases in the U.S. using Klarna, an app offering installment payments, rose 124% from a year ago. According to data from Salesforce, shoppers used buy-now-pay-later options on 8% of all purchases in the past couple of days — up 31% from the previous year.
7. Retail Apps Are Clearly on the Rise
This year, retail apps are already approaching peak usage levels from the 2020 holiday season. According to Appsflyer, eCommerce app installs increased 55% on Android and 32% on iOS in 2021. While there is no data yet on the breakdown of e-commerce sales via apps and via websites, it is expected that the share of app usage for online purchases will grow. So far in 2021, consumers have generated 35% more revenue in eCommerce apps compared to 2020. 2021 in-app spend peaked in March, exceeding the previous March by 156%, according to Appsflyer data.
8. Today’s CyberMonday Is Slated to Be the Biggest Online Shopping Day of the Year
The National Retail Federation predicts 62.8 million people will shop today during Cyber Monday, capping off a holiday weekend for retailers that combined for a mixed bag of in-store and online sales compared to last year. Adobe predicted purchases of $10.2 billion to $11.3 billion on Nov. 29, or Cyber Monday, which the firm said is set to be the biggest online shopping day of the year. Adobe reiterated its prediction of US $207 billion in consumer spending during the holiday season as a whole.
CPG Marketing: What do consumer packaged goods companies (CPGs) need to get up and running in direct-to-consumer marketing when they’ve only operated in brick and mortar selling at traditional retailers? Two brand marketers in the Portada network provide useful recommendations.
The shift to e-commerce will drive more than 70% of sales growth across the food and beverage categories through 2022, according to eMarketer. Marketers in these categories face the challenge of selling directly to the consumer (DTC) beyond traditional brick-and-mortar channels. Portada asked two experienced and DTC savvy marketers for advice on how they can best meet this challenge.
CPG Marketing: Think Consumer First…
CPG Marketing needs a shift in thinking to “consumer first”, Moises Leiferman, Sr. Manager Omni Channel at Perfetti Van Melle, tells Portada. He recommends CPG marketers to “keep in mind the full path to purchase, with its iterations, and not as a funnel.” Additionally, he says that it is important to balance performance tracking with mid to long-term metrics like ROI. value growth and brand health.”
… and Align Resources with Expectations.
Leiferman also emphasizes that it is important to set up “digital platforms and resources in line with sales channels and expectations: For example, having a brand website might not be a must-have, if the CPG company is selling through third party websites. Another important point is to periodically review packaging and SKUs development so that it is in line with consumer online purchase; “Make sure the supply chain is adjusting towards a different setup,” Leiferman concludes.
Set up digital platforms and resources in line with sales channels and expectations.
Culture and Talent Ignite DTC…
To Emily Jordan, VP of Marketing at Willow Innovations successful CPG Marketing in the age of e-commerce involves culture and talent: “Bring in experts in the space who can ignite a DTC way of thinking. Fuel curiosity: Create a culture of test and learn which is key in DTC and E-commerce marketing,” Jordan asserts.
Fuel curiosity. Create a culture of test and learn which is key in DTC and E-commerce marketing,”
CPG Marketing: Data Driven and at Scale
According to consulting firm McKinsey, Data-driven marketing at scale can deliver consumer-packaged-goods (CPG) companies 3 to 5 percent growth in net sales and improve marketing efficiency by 10 to 20 percent. “To do it, CPG companies need an AI engine, a 360-degree view of consumers, and a fit-for-purpose marketing technology stack to deliver the right message to the right consumer, at the right moment—all the time,” McKinsey claims. Artificial Intelligence and a very comprehensive view of the consumer requires marketers at CPG companies to get very data-driven and analytical for quick decision-making. “Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers,” says Willow Innovations’ Jordan. She also advises CPG marketers to get familiar with the lingo; AOV, CPA, Cost per new visitor, returning visitors, basket size, etc. particularly as it relates to the basics of performance marketing: Facebook, SEO, content marketing, lifecycle/email.
Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers.
Short term it will likely have an impact and it may also accelerate trends that are already under way. How will the coronavirus impact marketing? Four things to take into account.
1. Short term: Uncertainty and Risk Aversion…
The coronavirus may soon be contained and ultimately not have a major impact on economic activity levels, similarly to the 2003 SARS outbreak and the 2014-2016 Ebola outbreak. In the short term, however, things are likely going to get worse before they stabilize. That’s because virus outbreaks, by definition, initially have a very high growth rate of positive cases. Uncertainty rules. “I think the reason we were not specific was just because I think at the moment, it’s really just unknowable,” WPP CEO Mark Read, said during the company’s earnings call last Thursday February 27, when asked about the business impact of coronavirus on WPP’s China business. “It’s more unknowable today than probably it was Friday, if we had this meeting Friday of last week, we may [have] given you a different answer then we give you today.” As COVID 19 cases grow outside of China, the uncertainty is also increasing in the rest of the World, including the rest of Asia, North America and Europe (the main marketing hubs). Not surprisingly, all major agency holding stocks have taken hits along with the broader market last week. With WPP’s shares falling 15%; IPG is down 5%; Omnicom is down nearly 4%; Dentsu Aegis fell 2.5%; and Publicis Groupe down 5.6%. In the real economy, global tourism and retail have been hit particularly hard, as Chinese tourists provide a major source of income for many markets.
2. Coronavirus Impact on Marketing: More emphasis on Virtual – Digital Marketing
In the short term companies are starting to restrict travel and encouraging remote work (e.g. Amazon told its employees to avoid all non essential travel for now including within the U.S.) Facebook, on its part, last week cancelled a global marketing conference in San Francisco’s Moscone Center. Activations and sponsorships at live events may be impacted negatively as marketing, including event marketing will become more virtual. This is not good news in a year where analysts were expecting to see an uptick in media investments from marketers eager to capitalize on events like the 2020 Tokyo Olympics.
The virus may also accelerate a trend that was happening anyway. Executive meetings and virtual events over hangouts will increase. For an example check out Portada’s Council System of brand marketers, which conducts12 brand decision maker virtual workshops a year.
3. Driver for E-Commerce…
In parts of China, major retailers like Starbucks, Uniqlo, Nike and Apple have temporarily shuttered their stores, while small and medium-size retailers are being hit particularly hard as foot traffic dwindles. This may happen in the U.S. in areas that have been particularly negatively affected by the outbreak. Reduced in-store activity will be a driver for increased e-commerce activity and e-commerce marketing. The big caveat here is if the outbreak creates serious supply chain issues (at producers, shipping and overall logistics e.g. Apple and Microsoft warning of supply chain problems last week), therefore limiting the amount of goods that can be purchased by online buyers.
…particularly Online Grocery…
Housebound consumers in China are turning to online groceries for their daily food supply. According to French retailer Carrefour, vegetable deliveries increased by 600% year over year during the Lunar New Year period. Chinese online retailer JD.com reported that its online grocery sales grew 215% year over year to 15,000 tons during a 10-day period between late January and early February. Concerns about food delivery due to possible food contamination have spurred recent innovation in contactless pickup and delivery services by companies such as McDonald’s and Starbucks.McDonald’s has implemented contactless pickup and delivery of Big Macs, fries and other menu items across China as the outbreak has unfolded. Customers order remotely – on mobile phones or by computers in store – and employees seal the meals in bags and put them in a special spot for pickup without human contact, McDonald’s says on its website.
4. Coronavirus Impact on Marketing: Boost to At-Home Entertainment, Video Streaming and Gaming
If employees are forced to stay at home more, it will also impact how consumers spend their leisure time as they may have to avoid public gathering spaces, like movie theatres, concerts and gyms, leaving more time for them to binge on home entertainment and video services. Advertising revenues of companies that heavily bet on video content and advertising ,e.g. Roku, Youtube, Netflix and others should benefit from a public that’s stuck at home.
Consumer confidence has increased in Colombia and Peru, Mexican users are overwhelmed by banking service options and more consumer insights. A summary of the most relevant consumer behavior research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous Latam consumer insights roundup here.
Retail Marketing firm in-Store Media México has found that 62% of Mexican consumers take the environment into account during purchase decisions. In fact, these shoppers would rather shop at supermarkets or stores that actually care about protecting the planet. The trend also shows consumers’ interest in finding new brands that are committed to the environment at least to a degree.
However, only 12% of Mexicans recycle all their plastic waste, has found an annual survey by American plastic-based packaging company Hi-Cone and YouGov. Over 5 thousand consumers participated in four countries: Mexico, Spain, U.S. and U.K. While 12% of Mexicans recycle their plastics, this is true for 26% of Americans, 38% of Spaniards, and 45% of Brits interviewed. Finally, 11% said they do not recycle any plastics.
According to a Global Report on Consumer Confidence by The Conference Board and Nielsen, consumer confidence suffered a slight decrease in Latin America, from 92 points in Q3 2019 to 91 in Q4. However, it increased in Colombia, going from 99 to 102. Chile had the lowest index at 67, Mexico dropped from 98 to 90, and Peru went up from 92 to 97.
ICT company Fujitsu‘s global survey “Technology and the New Banking Customer” shows 39% of Mexican finance service users believe the amount of available solutions is overwhelming. In addition, only 33% of respondents believe their bank understands their needs. Two-thirds of consumers (66%) said they plan to reduce their number of bank services providers to one over the next 5 years.
This week, Saint Valentine’s Day insights, interesting TV data, and more. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here.
Saint Valentine’s Day Insights
Four out of ten Mexican consumers said they intended to make a purchase online for Saint Valentine’s Day. Almost two thirds (60%) planned to make purchases both on and offline, and only 14% intended to get something at a physical store. The research, by the Mexican Association of Online Retail (AMVO), also found that 40% of consumers expressed they’d spend $351-$500 MXN on gifts for Saint Valentine’s Day. A smaller portion of the population (15%) planned to spend up to $2000 MXN.
Procolombia, an organization that promotes exportation of Colombian goods, has also provided Saint Valentine’s Day Insights. According to their data, the most popular products in Colombia around February 14are (in that order): flowers, chocolate, perfume, lingerie, jewelry, stationery, balloons, and plush animals.
Mexican TV Viewers and Online Shoppers
A recent survey by Mexico’s Federal Institute of Communications (IFT) has found that 72% of Mexicans watch open broadcast TV. According to the study, TV consumption grew by 8% since last year. In fact, 93% of respondents own a TV. The top viewing times for consumers are weeknights and weekend afternoons. Consumer’s preferred categories are news (44%) and movies (40%).
In November 2019, householdconsumption in Mexico grew by 1.1% compared to the previous year. This is according to Mexico’s National Insitute of Geography and Statistics (Inegi.)The most relevant category for consumers was that of imported goods.
According to a recent study about online behavior by InternetMX, ecommerce in Mexico is now worth $299,660 million MXN. This represents a 22% growth compared to the previous year. Additionally, 80% of 83 million Mexican internet users have made a purchase online in the last 12 months.
Disney VS Netflix, consumers’ thoughts about Amazon, and retail marketing insights. A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
There doesn’t seem to be a clear winner in the Disney VS Netflix fight yet. According to a new survey by Piplsay, half of Americans surveyed saidDisney Plus is “as good as” Netflix. On the other hand, 28% said it’s not as good, while 23% said they think it is better. In addition, 37% of respondents said Disney Plus is better than Amazon Prime Video and Hulu. Also, about 42% said Disney Plus is as good as Hulu. Finally, 40% said Disney Plus is as good as Prime Video.
A survey by Convey of 2,000 U.S. consumers indicates a good amount of people don’t really like Amazon but shop there any way to get free shipping. The survey found that 24% of those surveyed had negative views of Amazon’s impact on the retail industry. In a similar way, 27% felt “very or somewhat” negative about the company’s effect on the environment. However, 21% of those respondents who worried about Amazon’s impact on the industry still bought half of their goods on its site. About 24% who thought Amazon’s practices are damaging to the environment also bought half their stuff there.
According to the “State of Consumer Behavior Report 2020” from Raydiant, 69% of respondents said a good in-store experience is either important or very important to them. Almost two-thirds (62%) find store associates helpful. More than half (57%) of respondents said they would go to physical locations for exclusive discounts, but 23% said they would care for unique experiences. More than 68% of respondents searched for a better price online after finding a product at a physical store.
A survey of more than 2,200 U.S. adults from Morning Consult and PRWeek found 41% of Millennials like when brands show their commitment to social causes. However, 39% think companies are trying too hard to make it look like they care. About half (46%) of Baby Boomers and Gen X feel (42%) feel that companies “try too hard”. Finally, 35% of Boomers and 33% of Gen X like brands that “show off their commitment.”
A new report from agency Boston Digital titled ‘How Brands’ Social Media Impacts Consumers’ that surveyed 554 respondents found brands need to be entertaining online. Two thirds (65%) of consumers say they are more likely to purchase from a company they’ve followed for a month. More than half (54%) are ‘very’ or ‘extremely’ likely to look at a company’s social presence while researching a product. However, more than half (51%) said content needs to be relevant to them.
With nearly 95% of shoppers reading online reviews before making a purchase, reviews have transformed the way consumers make purchase decisions. According to a study by the Bazaarvoice network, one product review can result in a 10% increase in sales and 200 reviews can result in as much as a 44% increase in sales. We talked to two brand marketers whose businesses are mostly e-commerce driven about the way they use and leverage online consumer reviews in their marketing efforts.
Review Marketing Basics
Review marketing is a process certain brands use to manage their reputation online. For direct-to-consumer brands, this includes monitoring, encouraging, and responding to consumer reviews across multiple platforms.”We rely on consumer reviews because customers say it better than we can,” says Aireen de Peralta, Chief E-commerce Officer at WaterField Designs, a company that sells custom-fit bags and cases online.
We rely on consumer reviews because customers say it better than we can.
Michael Montanez, Director of Marketing at luxury clothing label August McGregor, notes that “We use yotpo to power reviews for August McGregor as we’re adding to our tech stack to improve KPIs. Reviews are expected these days for RTW (ready to wear clothing). It’s all part of the process. Attribution – we haven’t gotten there yet to determine the impact of reviews.”
Trusting Customers, not Apps that Go After Reviews
Waterfield does not provide incentives for customers to write reviews. “We feel it’s more authentic if a customer decided on their own to write a review,” explains de Peralta. “We e-mail customers after a few weeks of shipping their purchase and request for them to write a review. That way, they will have had time to use the product in their daily routine.”
Today, there are many apps and vendors that will aggressively go after reviews, offering discounts, points, or loyalty awards. However, de Peralta notes that she doesn’t employ these tactics. “Reviews apps are also complex enough to ask users to rate their experience based on certain criteria. We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about. Each user has a different experience with a different emotional outcome, and we are more interested in capturing the emotions and understanding what it is important to them, rather than what we think is important to get feedback on.”
We use just the simple open-ended format because we think this is a better way to capture what our user thinks is the primary reason to give feedback about.
Review marketing is very powerful in driving customers to sales. According to a study of customer restaurant reviews by the Harvard Business Review, “a one-star increase in Yelp rating leads to a 5-9 % increase in revenue.” On the other hand, according to research, if there is an excess of three negative articles within search results, businesses can expect to lose 59.2% of their potential customers.
“We can’t track if a certain review caused a sale, but we do get feedback from customers that reviews have helped them make a decision. This is anecdotal evidence, but it’s enough for us to know that reviews do help sales. We also view reviews as an outlet for our community to express themselves and for product feedback,” de Peralta notes.
Boosting SEO and Social and Customer Service
Reviews can also substantially boost SEO rankings since the reviews contain keywords. They are also “proof for social”. In addition, they can also inform customer service as “some reviews answer questions that people have”, de Peralta notes.
Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).
The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.
Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.
Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.
According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.
Radisson Anápolis: recognized hotel brand Radisson announced the opening of Radisson Hotel Anápolis at Avenida Oscar Mohn, No. 250, Anápolis, Brazil. This upscale hotel is perfectly positioned in one of the fastest-growing cities in Goiás, providing a convenient spot for guests interested in checking out the Brasil Park Shopping, or business travelers visiting companies like Vitamedic orLinea Alimentos. The hotel is also conveniently located near Terminal Rodoviário Josias Moreira Braga bus station and Goiânia Airport (GYN).“Our partnership with Atlantica Hotels allows us to bring the bright, inviting and balanced feel of the Radisson brand into vibrant cities like Anápolis, Brazil,” said Frances Gonzalez, vice president of Operations for Radisson Hotel Group in Latin America.Atlantica Hotels is a licensee for Radisson Hotel Group’s brands in Brazil, including Radisson Blu, Radisson, Radisson RED and Park Inn by Radisson. The two companies have enjoyed a longstanding relationship in Brazil that now includes 16 hotels in operation.
Health and beauty consumer packaged goods company The Yield Growth Corp.announced that it ships its first products to OMG Colombia, the subsidiary of Organic Medical Growth OMG3 Inc. (“OMG3”) in Latin America, based in Colombia, as part of a 5 year distribution deal for Yield Growth’s Urban Juve skin care line. Today, 1,800 products are being shipped, in partial fulfillment of OMG’s first product purchase order in anticipation of imminent completion of regulatory approval to sell Urban Juve products in Colombia and progressively in other parts of South America.According to Goldstein Research, the Latin America cosmetics market reached a value of USD US$31.98 billion in 2017 and is anticipated to grow at a CAGR of 4.49% during the forecast period 2017-2025.OMG3 is in the process of distributing Urban Juve skin care products in Colombia and other countries of Latin America. Through its Colombian partner Ortix, OMG has access to a distribution channel of over 44,000 pharmacies in South America and has partnered with on-demand delivery giant, Rappi, to sell products through its e-commerce platform.
US carmaker General Motors has decided to exit Thailand market.The brand will withdraw the Chevrolet brand from Thailand by the end of 2020, and said that China’s Great Wall Motor (GWM) has agreed to buy over its manufacturing plants in Rayong.GM’s co-ordinated retreat is part of the company’s plan to exit unprofitable markets including Europe, while focusing on North America, China, Latin America and South Korea. With the planned sale of its Thai plant, GM has essentially given up on the rest of ASEAN as well, as the Land of Smiles is the company’s regional hub.GM is “focusing on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility,” especially in electric and autonomous vehicles, GM chairman and CEO Mary Barra said in a statement.
Interpublic Group agency Golin announced a new client partner to its international roster. Leading travel loyalty and benefits brand, Collinson, appointed Golin the global PR and communications Agency of Record (AOR), following a competitive pitch. The partnership will be led via a dual hub model from the Golin London and Golin Hong Kong offices, and the work will begin immediately.As AOR, Golin will head up PR and communications for Collinson with particular focus in Brazil, China, Hong Kong, India, UAE, the UK and the US; with further markets to be activated in Europe and Asia. The agency’s first charge will be to build awareness of Collinson’s integrated expertise in loyalty and travel experience, showcasing the group’s breadth of capabilities under one single brand voice and messaging.
Brazilian plant-based startup Fazenda Futuro, recently valued at US$100 million, will launch vegan sausages made with a seaweed skin for crispiness next month. The sausages are made with a blend of pea, soy, and chickpea protein with beetroot added for a “rosy color”. The products are free from GMO ingredients, food colorings, artificial flavors, or enhancers and the pork flavor comes from natural flavors and spices. They are coated with a neutral-tasting seaweed ‘skin’ that emulates the crispiness of traditional pork sausages.The sausages, which will launch in April in Brazil and the Netherlands, have a 17% protein content and add to Fazenda Futuro’s portfolio of products consisting of its Futuro Burger, ground meat and meatballs.Although Fazenda Futuro is a newcomer – it was founded in May last year – it has quickly made a name for itself in the plant-based category. In July last year, the startup received its first round of investments with Monashees and investment firm Go4it Capital acquiring an 8.5% stake for US$8.5 million. The transaction valued Fazenda Futuro at around US$100 million.The company was founded by Marcos Leta, a Rio de Janeiro-based food entrepreneur and investor.
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Endemol Shine North America has appointed award-winning licensing agency Tycoon Enterprises to serve as its exclusive licensing agent for the “MasterChef” television property in Latin America. MasterChef’ is one of the most successful food format in the world with over 60 localized versions across the globe including 10 in Latin America alone.Tycoon Enterprises will expand the “MasterChef” franchise in key categories including food and beverage, cookware and live experiences. Endemol Shine Brazil will continue to represent the brand in their market independently.In addition to “MasterChef,” the partnership will also look to explore opportunities in all categories for Endemol Shine series “¿Quién es la máscara” (“The Masked Singer”), “Te la Juego” (“Deal or No Deal”), “Fear Factor” and “Wipeout” in Mexico.
We looked at Comscore E-commerce data about the top 15 online retail sites visited by shoppers in the U.S. in September of 2019 and how they scored in numbers of visitors.
Coming after last January’s stellar results, where Amazon’s fourth-quarter net sales jumped 20% over the previous year’s, the online retailer has seen its earnings drop in Q3 of the year by 26%, which might be correlated to the decrease in its first-place position to 20.9% of all visits in September compared to 21.9% in January.
Number of visitors to the Top 15 e-commerce sites in the U.S., September 2019
Total Audience, Home and Work, PC/Laptop (000)
Total Unique Visitors/Viewers (000)*
Apple.com Worldwide Sites
The Home Depot, Inc.
Best Buy Sites
Source: Comscore *Numbers reported as shown
On the heels of a stellar year in 2018, Amazon got off to a strong start in 2019 as it expanded its share of online visits to its retail site to 21.9% of all visits to the top 15 retail internet sites in the US ranked by Comscore for the month. Since then, Amazon has decreased its share of site visits in the U.S. with 20.9% in September, 2019. Amazon’s leadership in online site visits is still undisputed in spite of the 26% drop in earnings in Q3.
Walmart and eBay have kept the second and third spots within the top 15 retail sites in the U.S. ranked by Comscore, with 11.9% and 10.6%of the total amount of visits respectively.
Apple.com continues to hold steady at 4th place in the top 15 retail sites ranked by Comscore.
Target, Samsung, Wish and Etsy keep fighting for spots 5 to 8, with numbers that have slightly changed since the January report.
DOORDASH.COM has entered Comscore’s ranking with 3.1% of all visits, pushing out LOEWES.COM, which held the last spot of the ranking in January.
Retailer Kohl’s continued to suffer a downward trend in its ranking in the top 15 retail sites in the U.S., going from 3.8% of all visits in January to 2.8% in September.
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. This week, we looked at a few holiday season shopping insights and a couple more interesting research highlights.
Deloitte’s 34th annual holiday retail survey, which polled 4,410 respondents across the United States, found that the average household is planning to spend nearly $1,500 this holiday season. E-commerce sales are expected to grow by 14-18%, and 70% of smartphone users said they will use their device to make a purchase.
RedPoint Global has announced the results of a survey that examines the opinions of over 1,000 U.S. consumers about holiday season shopping. According to the survey, nearly a third of respondents indicate that receiving irrelevant offers from brands is their primary frustration during the holidays. Brands should really pay attention to this, as 60% of survey participants said they are more likely to purchase from retailers who send them personalized content and offers.
According to Periscope By McKinsey’s “2019 Holiday Season Shopping Report”, 51% of consumers use smartphones to compare prices with competitors while in the physical store. In addition, 33% use smartphones to search for in-store discounts or coupons, and 30% leverage them to look up further product information.
According to the latest survey from Bankrate Credit Cards, six in 10 U.S. credit or debit cardholders (64%) say they have saved their card number online or in mobile apps despite safety concerns. The survey finds that more than half (56%) of U.S. adults save their credit or debit card information on a retailer or service’s website (like Amazon, Walmart or Netflix) while 32% save their credit or debit card information in a mobile payments app (like Apple Pay or Google Pay).
Research by BritePool and the USC Annenberg Center for Public Relations show that, among 1,004 U.S. adults, 87% would select a “Do Not Sell My Personal Information” option on any given website. The people most receptive to sharing were those in the 18-34 age category, only 49% of whom said they would choose “Do Not Sell.”
According to a survey by online coupon platform Shopper.com, 95% of U.S. respondents have used an online coupon at least once. One in three U.S. respondents search for a discount code almost every time they make an online purchase. Across all respondents (U.S. and U.K. consumers), 42% of women and 32% of men have helped a friend or family member find an online discount code, and 86% of all respondents feel frustrated at themselves when they miss the opportunity to make a saving on an online purchase, but one in three feel annoyed at the retailer for not making them aware of potential savings.
Check out the last report including other holiday shopping insights here.
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.
Accenture’s13th Annual Holiday Shopping Survey of 1,500 U.S. consumers has found that Americans expect to spend $637 on holiday shopping this year, on average, with approximately six in seven respondents planning to spend either the same (57%) or more (28%) than they did last year. Consumers are expected to do half their purchases in physical stores, with lower prices cited as the top (82%) factor that would tempt them to make an in-store purchase.
For the first time, consumers in the U.S. might do more of their holiday shopping online than in physical stores, according to a new survey. In its annual Holiday Outlook, PricewaterhouseCoopers LLP found that 54% of respondents will opt for the convenience of their smartphones, laptops, and PCs, and even in-home voice assistants, compared to 50% last year.
CGS has announced findings from its 2019 CGS Customer Service Chatbots & Channels Survey. CGS surveyed more than 1,000 Americans and found that 86% of consumers prefer to interact with a human agent. Moreover, 71% of respondents said they would be less likely to use a brand if it didn’t have human customer service representatives available. Only 30% believe that chatbots and virtual assistants make it easier to address customer service issues. However, for respondents under 35, confidence in AI-based solutions reached 43%.
Recent research by Deloitte shows that consumers’ tolerance to advertising varies according to the type of shows they like. A new survey which polled 2,000 U.S. found respondents whose most-watched type of show was talk shows had the highest tolerance for advertising (11.6 minutes per hour), and the ones who prefer scripted comedies or dramas have the lowest (7.2 minutes).
According to the National Retail Federation’s annual survey of 7,400 U.S. consumers, 68% of Americans said they plan to celebrate Halloween. Sixty-nine percent declared they will hand out candy, while 49% will decorate their homes and 47% will dress in costume. In total, they are expected to spend US $2.6 billion on Halloween candy, about $25 dollars per person.
A recent CodeBroker survey of over 1,100 U.S. consumers on coupon and offer personalization found that sending custom offers to past consumers is a good opportunity for brands. The results show that 73% of respondents answered with a definite yes to the question, “Do you prefer to shop at stores that send you custom discount offers based on your purchase history?”.
What: For years, large chains have targeted Hispanics by adding a special aisle with select items from their home countries. These days, this approach can be a bit outdated. Here are some Hispanic grocery shopping insights, as diversity and globalization demand a more integrated approach. Why it matters: Marketers are well aware that Hispanics are a huge consuming force that will only grow in time. It’s important to come up with ways to really cater to the community’s needs.
The Hispanic Cooking Rites
Us Latinos love our food. We love preparing it, we love planning it, we love buying fresh ingredients. Cooking and sharing is the ultimate family-bonding experience. Homemade meals are the first thing we miss when we’re away. We make them anywhere to feel at home. All these cultural traits not only make us great cooks, but also great produce and grocery shoppers. According to The State of the Plate, a 2015 Study on America’s Consumption of Fruits & Vegetables published by the Produce for Better Health Foundation, Hispanic grocery shoppers rank highest in produce consumption amongst 3 other ethnic groups (White/Non-Hispanics, Asians, and Black/Non-Hispanics).
There’s something all food marketers in the U.S. need to understand in order to cater to their Hispanic customers: From the moment the menu for a Hispanic table is conceived, every step of its preparation matters. Supermarkets appealing to the target can assert everything they must do to satisfy an ever-growing consumer base by being aware of the particularly ritualistic nature of Hispanic kitchens. Latinos love hand picking their food, buying enough ingredients to last for several meals, and trying out new ingredients on a permanent effort to enrich and expand their gastronomic experiences. But there’s one problem. Even though marketers are well aware that Hispanics are a consuming force, some have chosen to label and separate Hispanic (and generally ethnic) foods and products. This segregation rings counterintuitive and obsolete.
Finding the Balance Between Diversity and Globalization
Hispanics are widely diverse as a group. Every single Hispanic country has different ancestral dishes that require specific ingredients for their preparation. In addition, Millennials have been exposed to the culinary options of a globalized economy. This surely has an affect on traditional menus, even if Latino families have a specific and deep-rooted meal preparation routine.
Nearly six in ten Hispanics are Millennials or younger, according to Pew Research Center’s 2014 report, The Nation’s Latino Population is Defined by its Youth. 40% of American Millennials are multicultural, and more than half of this group are Latinos. As a global society would have it, we want to be able to make corn flour tortillas, but we want them filled with swiss cheese. According to The Why? Behind the Buy, a study conducted by Acosta Marketing and Univision in 2015, 57% of Hispanic Millennial Shoppers ages 25-34 say they often try new flavors/products.
For years, the larger chains have catered to the Hispanic consumer (primarily) by adding an ‘Hispanic’ or ‘International’ aisle and placing select merchandise from Latin America. […] It is unclear if this format is successful.
Nothing more American than… Pizza?
As we have said before in other articles, foods that used to be foreign at some point, like pizza, sushi, and tacos, are such a big part of a global food culture that no one hardly ever questions their place in American households. These days, being able to find a wide variety of products from around the world is expected. In some cases it’s a given, because we live in a connected world in which boundaries are more blurry each day. As Rishad Tobaccowala, Chief Growth Officer at Publicis Groupe, said to Portada in a recent interview, “An idea that is not aligned with the unstoppable trends of diversity and globalization is doomed from the start.”
How to Include a Niche
For a minority seeking inclusion, all manifestations of inclusion are welcome. Supermarkets could start by dropping the label “Hispanic groceries” to call them just groceries. Yet, many supermarkets have tried to cater to the Hispanic audience by adding “exclusive” sections with the products Latino audiences may find at home. “For years, the larger chains have catered to the Hispanic consumer (primarily) by adding an ‘Hispanic’ or ‘International’ aisle and placing select merchandise from Latin America […] Some of the largest, such as HEB in Texas, developed their Mi Tienda (My Store) format which is located in a high dense Hispanic neighborhood. A larger store than a neighborhood store. It is unclear if this format is successful” says Randy Stockdale, director of Solex Marketing Solutions.
Problem is, inclusive as this effort may appear at first glance, Latinos already comprise 17% of the total American population. Inserting a Hispanic section surrounded by aisles of “non-Hispanic” products might end up falling short for this ever-growing segment. “I don’t subscribe to a Hispanic aisle”, says Stockdale. “I would rather see the stores, particularly the larger chains, place like-items together and provide a greater convenience. Have you ever found Goya Olives in the general Olives section? Likely not.” Think of it this way: limiting their space is also limiting their consumption to one tiny section of an entire store.
In July 2017, a tweet got viral because one man saw the mockery potential of a supermarket freezer labeled “Frozen Hispanic.” He decided to pose as just that… a frozen Hispanic. The tweet got 152,278 retweets of people that didn’t see the need to separate frozen tamales from frozen chicken wings. Supermarkets would greatly profit from including Hispanic products without differentiation. It’s been proven that Hispanic consumers are generally willing to try new, different things.
Brands like Jarritos spark the joy of feeling represented and identified while being abroad. Many people immediately purchase products that make them feel homesick when they’re abroad. This speaks of the great importance of having a supermarket experience that appeals not only to your needs, but to your emotions, comfort zone, and memories of home.
And just like it would at home the store needs to feel just like any other supermarket with staple sections. In Canadian supermarkets, for example, diversity is tangible all around. A variety of multicultural shoppers experience all kinds of international foods available to everyone. Anyone can add tzatziki, udon noodles, and jasmine-infused rice pudding to their shopping basket.
Just as the world’s boundaries are thinner, the gaps between demographic segments are narrower. We want to connect to our heritage, but we don’t want to feel isolated by it. We all want to feel human. So, if including a separate Hispanic grocery section on the supermarket is no longer a viable option, what is? How to attract Hispanics and make them feel welcome and included while strongly driving purchase intention? The answer lies in the power of emotions.
What Should Supermarkets Do, Then?
In short? “Enhance their joy of shopping”, conclude Acosta and Univision on The Why? Behind the Buy. Perhaps general retailers could learn a thing or two from Hispanic grocery concept supermarkets like Northgate González Markets. The chain not only features an in-store tortillería, carnicería, and cocina, but that also offers children cooking classes and a gift certificate upon completing six lessons.
Or Fiesta Mart in Texas, offering a variety of fresh, organic, locally sourced produce with a side of social community programs to educate children and help feed the hungry. “I would not say [larger chains] are not doing a good job,” says Randy Stockdale. “They are trying at least. But, I would state that the larger chains should provide a friendlier-Hispanic atmosphere and improved merchandise. I am a strong proponent of bilingual in-store signage where the store is high-Hispanic density”. Therefore, the wisest move is to be inclusive and open-minded in both directions.
Both Fiesta Mart and Northgate Gonzalez are on the other side of the spectrum. Just as there are Hispanic aisles, there are entire stores that focus on the Hispanic community. But this doesn’t mean the general market should not come. There’s no reason to separate minorities, communities are not separate anymore. Everyone is welcome because everyone is from everywhere. No man is an aisle.
.What: We talked about Retail Marketing to JC Penney’s Ana Lucía Soto, MillerCoors’ Turiya Luzadder, Wilson’s Ángel Carmona, and Oath’s Maya Abinakad & Denise Brien. Why it matters: The term ‘Retail Marketing’ has been around for some time. However, the attention is still focused on consumers, not on retail shoppers. This seems like a missed growth opportunity.
Retail marketing tries to inspire shoppers to make last-minute sales when they are already prepared to buy something. Especially when compared to other media, the main characteristic of in-situ marketing is immediate impact. This concept isn’t new. Procter & Gamble was considered one of the pioneers in retail marketing in the U.S. around 2001. Several definitions of the concept have floated around since. A widely accepted version, provided by POPAI’s Retail Marketing Industry Council in 2011, defines retail marketing as “the application of shopper insights along the path to purchase, to affect purchase behavior in order to increase sales for both retailers and manufacturers.”
For marketing consultant Mike Anthony, the problem with this definition is that the word “insight” is elusive. He sees retail marketing as a process of understanding rather than an application of insights. For Anthony, the key to this kind of marketing is “using that understanding to develop a marketing mix which influences shopper behavior” in a way that improves consumption of a certain brand.
There are many ways to do this. Nevertheless, there are common techniquesto persuade shoppers depending on who designs the campaign. Manufacturers consider price, packaging, and arrangement of products, while retailers emphasize the location, the store layout, and lighting, for example. We talked to marketing experts about the key facts of retail marketing in the future. A future which is actually already here.
1. Customer Experience is Key, Both Online and Offline
It’s all about experience, not online or offline but both. In the words of Turiya Luzadder, Director, Shopper & Local Insights at MillerCoors, “Retailers and brands looking to win with consumers must provide a positive in-store/online experience that quickly instills confidence that the product will meet the needs (functional and emotional) of the consumption occasion.”
As she explains, everything is changing at a quick pace, but there’s a big opportunity to learn about online and offline solutions, as each one offers something different. “People will shop both online and offline as each exploits its own strengths. Online will lead with its promise of convenience. Offline will seek to provide an experience as it retains the advantage of a tactile environment with social interaction.”
Either online or offline, what really matters for retail marketing is making sure the experience is so great consumers come looking for your brand. According to a study conducted by Maya Abinakad, Global Marketing Director, and Denise Brien, Senior Director of Consumer Insights at Oath, 9% of consumers’ brand love comes from outstanding experiences. “Brands [who] transform ordinary into extraordinary deliver experiences that are consistent, engaging and memorable,” they explain.
Even though there is now a shift towards a completely digital landscape, brands need not lose sight of what really matters: ensuring shoppers have a good experience. “The key is to offer the best experience possible to our consumers,” asserts Ángel Carmona, Business Manager, Latin America at Wilson. “We need to engage our brand with our consumers by a shopping process which needs to be friendly, clear, and fulfilling. Our client’s satisfaction is crucial for references and future purchases.”
2. It’s the Era of Technology: Better Know How to Use It
Every day new marketing technologies become more relevant. As Oath’s Abinakad and Brien state, “Marketing is one of the main strategies that evolve in every technology trend. The relationship between customers and technology is a trigger that changes everything around it. If a brand hopes to stay relevant, it must capitalize this relationship. “Today’s industry is much more data-driven, with increased access tools that can provide real-time information on shopper behavior,” comments Ana L. Soto, National Media Manager at JCPenney. “Data insights will allow companies to better understand a consumer’s behavior and path to purchase, which will allow them to target their retail marketing efforts more effectively.”
Programatic Marketing as a Strategy
“We could say that programmatic marketing will have a significative growth this year,” point out Abinakad and Brien. “This strategy allows marketers to channel their ads to the correct audience and tailor the message to each product or services’ target. In this sense, location-based marketing plays a key role in insights of where consumers are and how to offer them the best option according to their location in real time.” This and other trends, like the accelerated change from desktop to mobile, will have an important impact on the way marketers address shoppers; technology is a real opportunity to reach targets effectively.
3. You Need to Look Inside as Well as Outside Your Doors
As Wilson’s Ángel Carmona explains, implementing a campaign is not enough. It is also necessary to integrate and evangelize your staff. “[Your staff] is the most important ambassador at the point of purchase and should be the best way to engage with the consumers.” In other words, everyone in your organization needs to be on the same channel. There’s no use in having a great product if only you know it. There’s a great chance shoppers will engage more if the whole team has a deep knowledge of why they should engage.
Making mistakes is easy, but it’s also easy to avoid them if you get your priorities right.
Therefore, Ana L. Soto recommends “to have alignment, consistency, and collaboration within your organization —from internal teams all the way to agency partners— in order to use the correct channels to target the consumer effectively and ultimately drive actionable results that engage them in a meaningful way to them.”
4. Here’s What You Should Do, and What You Shouldn’t Do
When Portada asked our interviewees about the most common mistakes related to retail marketing, they took us back to the basics: communication, human needs, and positive change. For Turiya Luzadder, “Making mistakes is easy, but it’s also easy to avoid them if you get your priorities right”. In her words, there are three key priorities to bear in mind in order to avoid mistakes:
1) To bring the organizational focus back to the human and retailer needs. “We spend so much time focused on our own goals that we risk losing sight of our dependence on consumer and retailer engagement”. 2) To constantly tear down the silos. “Strong communication amongst teams (brand, consumer, channel, shopper, chain, analytics…) is critical. It’s easy to go too far down a path before seeking feedback. 3) Being willing to take risks to create change. “There are times when you have to take a chance on an idea that is different and makes people uncomfortable. Finding the right retail partner and marketing advocates becomes critical.”
No matter how good your product is, if a consumer is not satisfied with the experience they won’t come back.
The easiest mistake to make in retail marketing
For Ana L. Soto, the easiest mistake to make in retail marketing is not having a true understanding of the customer. “Marketers need to have a clear understanding of their target audience coupled with data-driven insights into their behavior,” she comments. “This is crucial in determining and executing a successful strategy that will lead to high levels of engagement.” It is easy to get lost in technology and new trends and forget what truly matters. Ultimately, says Ángel Carmona, the main objective should be providing the best shopping experience possible. “No matter how good your product is, if a consumer is not satisfied with the experience they won’t come back. We live in a global market and we compete with more brands than ever, so we are only as good as our service.”
And sometimes that implies going a step further. In the midst of the fiercest competition, the brands that go the extra mile get the best results. According to Abinakad and Brien, 30% of brand love is determined by its ability to exceed consumer needs. “Brands that give consumers what they want —often before consumers even ask— offer something that competitors can’t. The secret is overdelivering on quality, durability, design, and performance in your product, your marketing and everywhere you meet your consumer.”