© 2014 Inmar, Inc. Understanding and Engaging the Hispanic Shopper Manager, Shopper Insights Nicole...

© 2014 Inmar, Inc.

Understanding and Engaging the Hispanic ShopperManager, Shopper InsightsNicole Steward-Streng

© 2014 Inmar, Inc. #coupontrends @inmarinc

About Inmar

• Manages more print and digital retail content than any other company globally• Largest digital coupon networks for clip to card

digital loyalty, operating in 15 countries2

Over $40 billion in payments and receivables


Across all shoppers…

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© 2014 Inmar, Inc. #coupontrends @inmarinc 4

I have to be smarter than I used to be… about the products I choose, what I feed my kids, how it was produced, what ingredients are in it… and how I spend my money…

““


Evolving shopper sentiment

65%I shouldn’t have to work so hard to be a smarter shopper.

Source: E-Retail Summit, 2012, RAMA

“

”


Changing shopper sentiment:From effort to entitlement

6

“If I put in the effort, I can get deals on the brands I buy.”

“If I shop a store a lot, I shouldn’t have to work for deals I deserve.”


Shoppers more engaged than ever before

7

5.4 sources ofinformation

2010

12 sources ofinformation

2014 proj.

Source usage, retail purchases, North America

Grocery 2.1

Grocery 4.7


Hispanic Shoppers


53 .3million

2012

128.8million

2060

By 2060, nearly one in three U.S. residents will be Hispanic

Hispanic shoppers are a growing demographic

Source: 2012 Population Estimates Source: Population Projections

Hispanics are the nation's largest ethnic minority.

17% of the nation's total population

Number of Hispanics added to the nation's population between July 1,

2011 and July 1, 2012.

1.1 million


Diversity under the “Hispanic umbrella”:Cultural origins represented in our sample

were born outside of the United States

reported their parents were born outside of the United States

Source: Inmar Hispanic Study (May 2014)

Mexican43%

Puerto Rican18%

Spanish11%

Other28%

(Hispanic Shoppers n=702)

23%

60%


Inmar Hispanic StudyOnline Survey• 25 minutes• Collected May 2014

Sample Design• 1,010 interviews (n=702 Hispanic,

n=306 non-Hispanic)• Adults 18+• Primary/Shared decision-maker for

grocery and household purchases• Visited a retail store in the past 7 days

Developed acculturation scale for Hispanic shoppers based on measures from Pew Research Hispanic Trends Project, including language preference and generational status.


Inmar 2015 Shopper Behavior Study MethodologyOnline Survey• 20 minutes• Collected January 2015

Sample Design• 1,075 interviews• 23% identify as Hispanic/Latino• Adults 18 - 69• Primary/Shared decision-maker for

grocery and household purchases


Inmar Hispanic Study: Demographics

44% 26% 23% 7%

18-34 35-49 50-64 65+Age

Hispanic Non-HispanicHigh School or less 21% 25%Associates Degree 33% 30%Bachelor's Degree 33% 31%Some post-graduate work or more 12% 13%

Education

Marital Status Geographic Area

Income

Hispanic Non-Hispanic

Hispanic Non-HispanicSingle 31% 23%Living with Partner 9% 7%Married 48% 45%Widowed/Divorced/Separated 11% 25%

51%Hispanic

22%Non-Hispanic

Households with children Hispanic Non-HispanicUrban 47% 27%Rural 13% 28%Suburban 40% 45%

16% 18% 35% 30%

18-34 35-49 50-64 65+

Less than$20k $20k-$39,999 $40k-54,999 $55k-$74,999 $75k-$99,999 $100k+

18%

28%

17%15%

11% 11%

23%

28%

16%12%

10% 11%

Source: Inmar 2015 Shopper Behavior Study


Inmar Shopper Behavior Study: Demographics

44% 26% 23% 7%

18-34 35-49 50-64 65+

Hispanic Non-HispanicHigh School or less 21% 25%Associates Degree 33% 30%Bachelor's Degree 33% 31%Some post-graduate work or more 12% 13%

Education

Marital Status Geographic Area

Income

Hispanic Non-Hispanic

Hispanic Non-HispanicSingle 31% 23%Living with Partner 9% 7%Married 48% 45%Widowed/Divorced/Separated 11% 25%

58%Hispanic

22%Non-Hispanic

Households with children Hispanic Non-HispanicUrban 47% 27%Rural 13% 28%Suburban 40% 45%

16% 18% 35% 30%

18-34 35-49 50-64 65+

Less than$20k $20k-$39,999 $40k-54,999 $55k-$74,999 $75k-$99,999 $100k+

18%

28%

17%15%

11% 11%

23%

28%

16%12%

10% 11%

Age

Less than$20k $20k-$39,999 $40k-54,999 $55k-$74,999 $75k-$99,999 $100k+

16%

22%18% 19%

15%

10%



Three facts about Hispanic shoppers They are…1. Meeting their grocery needs beyond the traditional grocery

store but are engaged with loyalty programs to save

2. Tech savvy, engaging with their smartphone across the shopper journey

3. Influenced by promotions and are looking for ease of use


Meeting their grocery needs beyond the traditional grocery store but are engaged with loyalty programs to save

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Hispanic shoppers shop for groceries in more channels than non-Hispanic shoppers

(Hispanic Shoppers n=702; Non-Hispanic Shoppers n=306) Statistically significant differences between Hispanic and non-Hispanic shoppers at a 95% level of confidence Source: Inmar Hispanic Study (May 2014)

Hispanicsnon-Hispanics

Grocery WarehouseClub

Mass Merchandisers& Supercenters

Drug Dollar &Discount

Convenience Specialty Ethnic Salvage Stores & Flea Markets


Ethnic foods are being purchased across channels

(Hispanic Shoppers N=702) Source: Inmar Hispanic Study (May 2014)

Grocery

Mass Merchandisers/Supercenters

Ethnic Food Stores

Warehouse club

Dollar/Discount

Drug

Convenience

Specialty

Other (Not listed)

I do not purchase ethnic foods at all

56%

49%

38%

23%

19%

16%

16%

10%

3%

9%


77% say they participate in a grocery store loyalty program

plan their weekly meals around what products are on sale through their grocery store loyalty program26%

believe the brands that they love are more affordable because they use a grocery store loyalty card37% say they load digital coupons to their grocery store loyalty card because they believe it is easier than clipping coupons 27%

Hispanics are highly engaged with grocery store loyalty programs



71% say they shop at stores where they are loyalty program members more than at stores where they are not

say they often buy more than they would otherwise because of the discounts/rewards they get as a loyalty program member

62% say they try products that they may not otherwise try because of the discounts/rewards they get as a loyalty program member

60%

Participating in loyalty programs changes purchase behavior



Rewards programs are important to Hispanic shoppers

(Hispanic Shoppers n=702)

45%

Source: Inmar Hispanic Study (May 2014)

How important is it to you for a pharmacy to have a rewards program linked to in-store savings?

34%Somewhat

23%Very

4%Not at All

8%Not Very

26%Neither

would switch pharmacies for a

store discount


Tech savvy, engaging with their smartphone across the shopper journey2


Hispanic shoppers who shop online for groceries buy 40% of their total groceries online


Mailed directly to their home

In-store pick-up

74%

38%

20%Shop online for groceries


“Would you use order groceries online?”

Non-Hispanic Shoppers

(Hispanic Shoppers n=702; Non-Hispanic Shoppers n=306) Source: Inmar Hispanic Study (May 2014)

58%Yes

Hispanic Shoppers

33%Yes


90%

9%

Millennials

Smartphone

Standard feature phone

I do not use a mobile phone

More than three-quarters of Hispanic shoppers use smartphones


Older Shoppers

29%

67%


Neither Pre-Shopping In-Store Both

Top 10 ways Hispanic shoppers are using their smartphones during the shopper journey


56%55%54%53%51%49%50%49%48%46%

Find store locations

Compare features against other products

Look at newspaper inserts online

Look for online coupons to use in-store

Plan which retail store to purchase product

Look for information on upcoming sales

Compare prices across different websites

Look at images of the product

Check availability of the item in the store

Digitally “clip” a coupon online


Top 10 ways Hispanic shoppers are using their smartphones during the shopper journey


Neither Pre-Shopping In-Store Both

56%55%54%53%51%49%50%49%48%46%

Find store locations

Compare features against other products

Look at newspaper inserts online

Look for online coupons to use in-store

Plan which retail store to purchase product

Look for information on upcoming sales

Compare prices across different websites

Look at images of the product

Check availability of the item in the store

Digitally “clip” a coupon online


Hispanic Shoppers’ Mobile Promotion Wish List

48% want coupons sent to their mobile phone for products that they normally buy (+)

50% would like to be able to present coupons to the cashier using their mobile phone (+)

63% want stores to remind them via email that they have coupons that they can redeem



Influenced by promotions and looking for ease of use3


Hispanics regularly use, on average, 5.0 methods to discover/acquire coupons – compared to non-Hispanic shoppers who report regularly using 3.1 methods.

of Hispanics regularly use coupons

44%



Hispanic shoppers are more likely to use rebates

54% have used rebates in the prior three months

56% say they would try a new product if they have a rebate

54% say they would switch brands if they had a rebate that makes another brand cheaper



Extremely Very Somewhat Slightly Not at all

19%

31% 30%

9%11%

15%

28%32%

10%

15%

HispanicNon-Hispanic

Half of Hispanic shoppers report that promotions are very or extremely influential in their decision to try a product

(Hispanic Shoppers n=702) Source: Inmar Hispanic Study (May 2014)


Digital Offers (L2C/DTC)

Print at Home Coupons

Paper Coupons (FSI, DM, Store

Circ)

In-Store Coupons (IR/IRC, tear-pad,

hand out)

Store Sales and Discounts

34%44%

65%54% 55%

89% of Hispanic shoppers regularly use the following types of special offers



Coupons are influencing these shoppers’ lists


of Hispanic shoppers make their shopping list and then search for coupons…

Over

50%…but if they find the right offer many

will adjust their list accordingly

58%Sometimes

17%

Most of the time

4%Always

6%Never

16%Rarely


Digital coupons are helping in the search for deals


33%“I wish all coupons were digital.”

46%“I often use paper coupons and digital coupons together.”

37% “I actively delay purchases to wait for coupons/special offers.”


But shoppers want it to be easy!


"There are too many rules / exclusions for using coupons." 39% 24%

"It takes too much time to find coupons." 37% 20%

"I would use coupons more if they were available in Spanish." 17% 6%

Those without smartphones


But shoppers want it to be easy!

29% of Hispanic

shoppers who scored low on

the acculturation scale would use more coupons if

they were available in

Spanish

(Hispanic Shoppers n=702)) Source: Inmar Hispanic Study (May 2014)

"There are too many rules / exclusions for using coupons." 39% 24%

"It takes too much time to find coupons." 37% 20%

"I would use coupons more if they were available in Spanish." 17% 6%

Those without smartphones


Conclusion


Hispanic shoppers use technology

compare product prices

compare product features

read independent reviews

66%60%56%

“I have to be smarter than I used to be… about the products I choose, what I feed my kids, how it was produced, what ingredients are in it… and how I spend my money…”

Source: 2015 Shopper Behavior Study


Evolving shopper sentiment

• 45% of Hispanics want a website that allows them to shop online

• 68% of Hispanics want stores to email them with coupons for products they normally buy

• 81% of Hispanics want coupons automatically applied to their purchases

• 63% of Hispanics want stores to remind them via email that they have coupons they can redeem

65%“I shouldn’t have to work so hard to be a smarter shopper.”

Sources: Inmar Hispanic Study (May 2014) & 2015 Shopper Behavior Study


Changing shopper sentiment:From effort to entitlement

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Source: 2013 Inmar Shopper Study

“If I put in the effort, I can get deals on the brands I buy.”

“If I shop a store a lot, I shouldn’t have to work for deals I deserve.”


About needing to save: “I am young, trying to finish school, my husband is trying to finish school, I have a one year old, and money is tight. My mom

taught me everything I know about saving. She handed this down to me. Who wouldn’t want cheaper stuff?”

How she plans for shopping: “Unless its a really good deal, we know exactly what we are going to buy and exactly what we’re going to pay. If its one penny off we let the cashier know.”

What the future holds:Meet Itzel, age 19, a third generation Mexican-American living in NC

Concerned about health: Buys organic foods primarily, even if she “eats from coupons” … if I can give him the best, I will do so.”

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About technology: “My phone is always with me if its not I freak out, I use Facebook, Instagram, Yahoo News, emails from retailers though I do not give all marketers my email.”

Wishes: More promotions were available for milk and more organic products were available.


Keys to connecting with the Hispanic shopper:

1. Provide opportunities for reward to build loyalty

2. Provide the content shoppers are looking for at their fingertips

3. Make sure coupons meet shoppers where they are


Thank you!

Questions? Contact Nicole at [email protected]

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© 2014 Inmar, Inc. Understanding and Engaging the Hispanic Shopper Manager, Shopper Insights Nicole...

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