The findings of the study, conducted in partnership with Burke Inc., were discussed during the “Hispanic 411: Insights to Grow Your Business” webinar earlier this week.

“Last year, NPD’s new CREST Hispanic tool confirmed that Hispanic consumers are driving QSR growth, contributing 17 percent of all restaurant traffic and 18 percent of all restaurant dollars in 2011,” said Michele Kessler, senior vice president of Univision’s Client Development Group. “Univision’s QSR Landscape study will help brands take advantage of the opportunity by understanding what motivates Hispanic consumers to visit, return and become loyal customers.”

During the webinar, Kessler and Peter Filiaci, vice president of Univision’s Client Development Group, discussed the survey’s key findings, including:

Hispanic consumers are frequent visitors to QSRs. Hispanics, including millennials, are much more likely than the general population to visit QSRs. The study found that on average, Hispanics visit QSRs more than 10 times in a 30-day period, while non-Hispanics visit about seven times per month. Furthermore, Hispanics are nearly twice as likely to be categorized as frequent users (more than 10 visits a month) than are non-Hispanics and significantly contribute to the breakfast (20 percent Hispanic vs. 14 percent of non-Hispanic) and snack (21 percent Hispanic vs. 12 percent non-Hispanic) dayparts. Latino millennials visit QSRs even more frequently – 12 times a month versus eight times per month than non-Hispanics.
Hispanic party size is bigger. The Univision QSR Landscape study found that Hispanics are more likely to visit with friends and family than the general population – 34 percent of Hispanics are likely to bring children 18 years of age or younger versus 25 percent of non-Hispanics; and 25 percent are likely to bring friends compared to 18 percent of non-Hispanics. Hispanic millennials are also 10 percent more likely to bring friends (36 percent vs. 26 percent non-Hispanic). Across all meal times, this adds up to Hispanics having on average 2.9 people in their party vs. 2.1 for the general population.
Hispanics showcase profitable ordering patterns. Hispanics are much more likely to order beverages with their meals; 93 percent say they order food and a beverage when they visit a QSR vs. only 78 percent of non-Hispanics saying they order both. Hispanics are also less likely to use a coupon (25 percent vs. 30 percent non-Hispanic).
A family-friendly environment is a major driver. Whether it’s for new or returning customers, Hispanics look for QSRs that can accommodate their bigger parties and social needs. Hispanics are much more likely to cite spending time with family (44 percent vs. 20 percent non-Hispanic), treating the children (30 percent vs. 16 percent non-Hispanic) and spending time with friends (21 percent vs. 10 percent) as reasons to visit a QSR. The story is similar for Hispanic millennials; two out of the top five reasons to visit are tied to family. Family did not rank in the top five reasons to visit for non-Hispanic millennials.
Hispanics are drawn to fresh food options. Fresh food also plays a major role in getting Hispanics to visit and return to a QSR. “Having fresh food on the menu,” “having healthy meal options for children,” and “offering fresh veggies and salads” are some of the most commonly chosen reasons to try a new restaurant. For non-Hispanics, that list is dominated by value options like “getting more food here for the same price at other places” or receiving a discount or coupon in the mail.
Opportunities abound to build relationships with Hispanics. Overall, unaided awareness levels for QSR brands are generally lower among Hispanics. The burger category dominates QSRs when it comes to top of mind recall and overall unaided awareness. Hispanics also hold more favorable opinions of brands across categories with 65 percent having extremely favorable or very favorable opinions of burger brands (vs. 50 percent non-Hispanic), 50 percent for pizza brands (vs. 38 percent non-Hispanic) and 58 percent for sub/sandwich brands (vs. 54 percent non-Hispanic). And, once a brand establishes a relationship with Hispanic consumers they become even more loyal customers than non-Hispanics.

“We believe that more targeted communication to Hispanics would help raise awareness levels and motivate Hispanics to make a decision among the plethora of fast food options available to them,” Kessler said. “Restaurant ad spending on Spanish-language TV has grown 31 percent from 2006 to 2011 as brands realize that Hispanic consumers are essential to their growth, yet many brands are inactive or spending way below the recommended 15 percent of total media dollars.”

The study, fielded by Burke Inc., consists of interviews of 1,250 U.S. and foreign-born Hispanics, and 1,250 non-Hispanic adults who are frequent patrons of QSRs. Twelve QSR chains were used in the study. The survey was conducted in both English and Spanish.

Similar to other studies

Results from the study echo similar reports released recently about how the growth of the Hispanic demographic will benefit the restaurant industry. The U.S. Census indicates that the Hispanic population is expected to grow 34 percent from 2010 to 2020. Foodservice market research company NPD Group has found that this growth is beginning to influence national consumption patterns.

QSRs have begun responding to the trend by directing more marketing dollars toward the Hispanic demographic. According to the Association of Hispanic Advertising Agencies (AHAA), there has been a 14 percent increase in budget allocation for these types of campaigns since 2009.

The QSR segment falls into the “Leaders” category of the AHAA’s list of Hispanic advertisers, with a significant increase of 30 percent, or $70 million in incremental investment, for $301 million total spend in 2010.

Brands such as Popeyes’, Domino’s, Pizza Patron, Wendy’s, Burger King, Dunkin’ Donuts, Baskin-Robbins, El Pollo Loco, Whataburger, Sonic, Carl’s Jr. and Hardee’s have increased their Hispanic marketing budgets, hired agencies specifically to communicate to the Hispanic demographic or added staff for the same reason.

In 2011, McDonald’s was listed as the fourth top spender in Hispanic media, among all advertisers in all industries.

Self-identifying bicultural Latinos (of both genders) make up 39% of the total U.S. Hispanic population, according to the 2011 edition of Horowitz Associates’ annual Focus: Latino report. That works out to about 19.5 million people, or 6.3% of the total U.S. population.

Overall, the U.S. Hispanic population, which is estimated at 50 million by the U.S. Census Bureau, wielded $1.1 trillion in spending power in 2011. This is expected to increase to $1.6 trillion by 2016. Bilingual and bicultural Latinos, who tend to be better-educated on average, likely account for a disproportionate amount of this spending power.

This growing population is critical to future profitability for big advertisers, according to a recent study commissioned by the Association of Hispanic Advertising Agencies and performed by Santiago Solutions Group. The study found that marketing efforts targeting Hispanics are correlated with overall revenue growth for consumer packaged-goods companies and CPG-based retail companies.

Cosmopolitan is enjoying success on a number of fronts. Long one of the bestselling magazines at print newsstands, over the last year the magazine became the first Hearst Corp. title to attract over 100,000 digital subscribers.

Time Inc. Hires Bain For Growth Strategies

Time Inc. has retained Bain & Company “to offer further perspective on market and consumer trends” as the company attempts to identify new areas for growth, according to CEO Laura Lang. Lang also revealed a number of personnel changes: Steve Sachs, executive vice president for consumer sales and marketing, is leaving the company, as is Stephanie George, executive vice president and CMO.

Paul Caine, executive vice president and chief revenue officer, will take on the additional role of overseeing corporate marketing efforts. Lang also revealed that she is establishing an “Office of the Chief Executive” comprising a core leadership team including Howard Averill, Maurice Edelson, John Huey and Paul Caine.

Conde Nast Shares Tablet Readership

Conde Nast is releasing more specific information about tablet readership to advertisers, with regular information covering each issue of every title with a digital edition, according to Ad Age. The information, which should become available to advertisers within 10 weeks of digital publication, will include the number of tablet subscriptions and single-copy sales, open rates for the tablet edition, and the amount of time spent with the digital magazine by readers. Advertisers that pay extra for premium ads can get more information, including how many readers accessed the ad, the number of times it was displayed, and average time spent with the ad.

SI Goes Major At The Majors

The Sports Illustrated Golf Group is pooling its resources to create a multiplatform coverage juggernaut at The Majors — the golf championship quadfecta consisting of the Masters, the US Open, the PGA Championship and the Ryder Cup. The effort includes a dedicated studio to create online video content, live-blogging by SI contributors, online Q&A’s with editors, and of course a wealth of content for the print and digital editions of Sports Illustrated, Golf and SI’s Golf+ supplement. Visitors who drop by the SI editorial compound can get free golf lessons or listen to writer roundtables about the events.

Petasnick To VP, Integrated Sales For Martha Stewart Living

Laura Petasnick has been named vice president for integrated sales at Martha Stewart Living, the flagship publication of Martha Stewart Living Omnimedia. Before joining MSLO, Petasnick served as publisher of Rodale’s Prevention and Prevention.com; prior to this, she served as advertising director at Conde Nast’s Vogue, with responsibility for the beauty, health and auto categories.

Fitness Announces Fitterati Blog Awards

Fitness is looking for the country’s best fitness lifestyle bloggers, whom the magazine will recognize in its first Fitterati Blogger Awards. Winners will appear in an upcoming issue of Fitness and be invited to contribute to Fitnessmagazine.com. Readers can visit www.fitnessmagazine.com/blog-awards to cast their ballots for their favorite blogger, or nominate one. Blogger nominations will fall into one of six categories: Best Healthy Living Blog, Best Running Blog, Best Healthy Eating Blog, Best Motivational Blog, Best Personal Trainer Blog, and Best Weight Loss Blog, with two winners in each category — reader’s choice and editor’s pick. Voting is open until April 12.

Parenting Group Partners With VolunteerSpot

The Parenting Group, which publishes Parenting and Babytalk and Parenting.com, has formed a strategic advertising and content partnership with VolunteerSpot.com, a Web-based platform that simplifies volunteer sign-ups, making it easy for parents to get involved and stay involved in their children’s school and other group activities.

The partnership brings VolunteerSpot together with Parenting’s Mom Congress on Education and Learning. Under the terms of the agreement, VolunteerSpot.com will join the Parenting Network sites targeting modern moms, allowing The Parenting Group to offer VolunteerSpot.com ad inventory as part of its digital media packages. The two sites will also exchange and cross-promote each other’s content throughout all of their respective digital platforms.

Meredith Names Tarpley to GM, Parents Network Digital

Todd Tarpley has been named general manager of Parents Network Digital. The Parents Network includes the Parents, American Baby, FamilyFun and Ser Padres brands. Tarpley previously worked at The Nielsen Company, where he served as vice president of online, leading digital expansion efforts for Nielsen Business Media.

Read more: http://www.mediapost.com/publications/article/170260/mag-bag-cosmo-latina-launches-in-may.html#ixzz1rfhuuv2Z

Not only do Hispanics represent 56% of the U.S. population growth between 2000 and 2010, but they spend more time and money per trip to the grocery store than the national average, they bring more family members with them to shop. Data showed a significant difference in the revenue growth rate attained by CPG companies that designate a higher focus to the Hispanic market than those corporations who focus less.

“This new information is compelling because the data indicates that the Hispanic market can be a big determinant in corporate success,” said Roberto Orci, chair of AHAA and CEO of Acento Advertising. “CPG companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors—investing in Hispanic marketing is a clear strategy in achieving that twofold objective.”

The study analyzed the top 500 overall U.S. advertisers between 2006 and 2010 and found—with a 95% confidence level—that among CPG brands, the share of overall marketing resources dedicated to the booming Hispanic segment explains about one-third of their overall revenue growth. Effective growth leaders consistently put higher focus on creating solid relationships with the valuable Hispanic consumer base. Conversely, CPG underperformers tend to overlook Hispanic growth opportunities resulting typically in sluggish growth, and by consequence, slower value creation to their shareholders.

Approximately 39 CPG companies and retailers were included in the study, and seven companies, including Coca-Cola, General Mills, Ralcorp, Groupe Danone, Nestlé, Walmart, and Walgreens, were named “best in class” for driving the highest overall organic revenue growth from their consistent leading efforts in the Hispanic market. Other companies analyzed included Unilever, Hormel, PepsiCo, Kellogg’s, Diageo, Pernod Ricard, Sara Lee, ConAgra, Campbell’s and Hershey’s, among others.

The survey also found Hispanic households’ food at home expenditures are estimated to grow at a 5.7% average annual rate over the next 10 years compared to just 2.5% for non-Hispanic households. This makes Hispanic marketing a strategic imperative for CPG companies and their retail counterparts.

“Hispanic media spend across all disciplines should be more broadly defined as corporate-wide holistic investment in this growth segment, reflecting the most appropriate cultural insights and developing integrated marketing strategies from product innovation to customer experience in order to leap-frog corporate revenues into an accelerated growth rate,” said Carlos Santiago of Santiago Solutions Group, who conducted the study for AHAA.
Sources: Association of Hispanic Advertising Agencies: CPG Companies Grow By Targeting Hispanics

That’s not surprising, given that Hispanics make up 17% of the population, wielding a total $1.2 trillion in buying power.

The AHAA study examined the top 500 U.S. advertisers from 2006-2010 and determined with a 95% confidence level that among the CPG brands studied, the share of marketing resources devoted to targeting Hispanics accounts for roughly one-third of overall revenue growth.

Companies that devote more marketing resources to targeting Hispanics saw higher revenue growth, on average, than companies that didn’t make Hispanic marketing a high priority.

The study identified a number of CPG companies and CPG-based retailers as “best in class” for their substantial Hispanic marketing efforts, including Coca-Cola, General Mills, Ralcorp, Groupe Danone, Nestle, Walmart, and Walgreens.

The AHAA study also noted a number of factors which make Hispanics desirable marketing targets for CPG companies and advertisers in general, including larger households (at an average 3.8 individuals per household, compared to 2.5 for non-Hispanic households) and a higher household formation rate than the general population.

Together, these facts mean that Hispanic households expenditures for food are predicted to grow at an annual rate of 5.7% over the next decade, according to Credit Suisse, compared to 2.5% for non-Hispanic households.

Roberto Orci, AHAA chair and CEO of Acento, stated: “CPG companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors — investing in Hispanic marketing is a clear strategy in achieving that two-fold objective.”

“This new information is compelling because the data indicates that the Hispanic market can be a big determinant in corporate success,” said Roberto Orci, chair of AHAA and CEO of Acento Advertising. “CPG companies not only want to gain market share among their competitors but they also want to provide growth and stability for their investors – investing in Hispanic marketing is a clear strategy in achieving that two-fold objective.”

The study analyzed the top 500 overall U.S. advertisers between 2006 and 2010. The regression model showed similar correlation findings and significance levels for the CPG set of companies when tested against the full sample of consistent top advertisers for the same time period. The study found, with a 95 percent confidence level, that among CPG brands, the share of overall marketing resources dedicated to the booming Hispanic segment explains about a third of their overall revenue growth.

“The connection is clear and very significant,” said Dr. Cristina Garcia, professor of statistics at USC, who oversaw the methodology of the study. “The study found evidence that the proportion of resources a company, irrelevant of market category, puts behind Hispanic consumers is an essential driver for sustainable growth performance.”

Effective growth leaders consistently put higher focus on creating solid relationships with the valuable Hispanic consumer base. Conversely, CPG underperformers tend to overlook Hispanic growth opportunities resulting typically in sluggish growth, and by consequence, slower value creation to their shareholders.

Approximately 39 Consumer Packaged Goods companies and retailers were included in the final study, a subset of 211 public companies with consistently advertised in Hispanic media between 2006 and 2010. The study identified seven companies as best-in-class, driving the highest overall organic revenue growth from their consistent leading efforts in the Hispanic market, including Coca-Cola, General Mills, Ralcorp, Groupe Danone, Nestle, Walmart, and Walgreens. Other companies analyzed include Clorox, Unilever, Kimberly-Clark, Target, Church & Dwight, CVS, Hormel, PepsiCo, Kellogg’s, Diageo, Pernod Ricard, Sara Lee, Fortune Brands, Rubbermaid, NutriSystem, ConAgra, Campbell’s, Hershey’s, Loreal and Estee Lauder, among others.

Get the recorded AHAA webinar:
CPG Hispanic Allocation

Read the complete article:
AHAA Releases New Study Linking Study Marketing Focus Among CPG and Retail Companies to Overall Corporate Growth – The Sacramento Bee

PR Newswire, United Business Media.

Santiago Solutions Group’s contributions include chapters by:  Carlos Santiago on S-M-A-R-T Growth through Opportunity Right-Sizing; a Foreword by Steve Moya, When the Future Meets Today, and a chapter on social impact metrics by Derene Allen, Social Metrics that Matter: Deepening Brand Connections through Social Impact.

Per industry leaders, a must read!

To purchase this new release on how to achieve growth from the Hispanic Market please follow the link below:
http://www.paramountbooks.com/hispanic-stategies-business-grow

For the past two years, Allstate has been the presenting sponsor of Sueño MLS, a nationally televised search for the best undiscovered soccer talent in the U.S. Now on its sixth year, the program allows soccer enthusiasts to participate in a national competition that is chronicled every week on Univision Network’s República Deportiva.

Karen Uhler, Allstate Marketing Director of Sponsorships, responded a few questions via email from Portada. An edited excerpt follows.

Portada: How did Allstate’s sponsorship come about?

Karen Uhler: Sueño MLS is now on its sixth year and Allstate has been the presenting sponsor for the past two years. This year, we have added a unique element to the competition with the search of the best youth goalkeeper to win the “Good Hands” award – El Portero Allstate. Allstate has supported soccer fans for six years through the Mexican National Soccer team partnership and supporting Sueño MLS is an extension of our commitment to soccer fans.

P: Why is this program important for an advertiser like Allstate?

KU: At Allstate, we celebrate protection in soccer – and in everyday life – and we’re committed to bringing sports fans closer to the game they love through this initiative. For us it is a perfect fit.

P: Besides soccer and the MLS program, how does Allstate market to US Hispanics?

KU: Allstate recognized the importance of the U.S. Hispanic population early on, and has stayed on top of Hispanic consumer trends and population growth patterns. The company is the official insurance sponsor of the Mexican National Team, as well as Major League Soccer (MLS), and U.S. Men’s and Women’s soccer teams. Allstate also supports New Futuro, an organization that provides free bilingual higher education resources to Hispanic families in their local communities.

P: How important is the U.S. Hispanic market to a company like Allstate?

KU: I would say approximately 30% of our agencies serve customers who are Spanish-preferred. Allstate Agencies are located in communities across the country and serve consumers of all backgrounds based on their preferences. We offer them the opportunity to talk to a live Allstate representative in Spanish 24 hours a day, 7 days a week. Customers can also find information on our products and services on a dedicated, Spanish-language website, miallstate.com, which is not just a translation of allstate.com but was developed based on research and input from Hispanic consumers.

P: What would you say is the most challenging part of marketing insurance to US Hispanics? Is it very different from the messaging to the general market?

KU: Marketing to Hispanics has to go beyond language; it is about needs and expectations. We care about what is important to consumers and develop our products and services with that in mind. We look specifically at how to protect what they have worked so hard for and built for a better future. That is why consumers see our Allstate message wherever they are – in magazines and newspapers, on television, online, on the radio, as they drive – and even through our sports sponsorships like soccer, football, the U.S. Olympic Team, basketball and community sponsorships, like New Futuro.

P: Last year Allstate launched an online awards show featuring some memorable moments on Telemundo telenovelas, how did that go? Is Allstate working on something similar this year?
KU: We had a lot of fun working with Telemundo last year with the “Allstate Presents Premios Telemundo Novelas” and Allstate’s Best Mala Suerte (Bad Luck) moment. This year the Premios Telemundo are moving to a national TV broadcast, and we are looking forward to continuing the momentum we built with Telemundo in 2011. Stay tuned.

P: How do you work with your agencies? Do you have a Hispanic agency for creative? Which one for media planning/buying?
KU: Allstate works with its agencies as partners and together we contribute to a common goal: engage the consumer. Lápiz is our creative agency for U.S. Hispanic and Tapestry is our media planning/buying agency.

Allstate Kicks Off Sueño MLS 2012; Q&A With Karen Uhler, Marketing Director of Sponsorships

NBCUniversal, with its recently launched Hispanics at NBCU initiative, is among the media companies embracing this concept. The Comcast-controlled media giant has a dedicated sales and marketing group pitching clients on the opportunity to reach up to 93% of U.S. Hispanics across 42 brands and their online extensions, be it broadcast, cable, Spanish, English or even Spanglish. “The key here is cultural relevance,” according to Telemundo chief operating officer Jacqueline Hernandez, the executive charged with leading the Hispanics at NBCU initiative.

AD INVESTMENT: NUMBERS GAME
Selling ads like “bread out of the oven” might be on everybody’s mind, but Hispanic ad agencies want it to make it top of mind. A recent survey by the Association of Hispanic Advertising Agencies claims marketers who spend heavily on Hispanic media are seeing their revenue grow faster than those who don’t. According to the study, those advertisers who spend 14.2% (the percentage of Hispanic adults) or more of their advertising budgets to target Hispanics have seen their top line revenue grow in the past five years.

“The biggest surprise [of this study] was the correlation we found between high investment in Hispanic media and top line revenue growth,” said Carlos Santiago, president of Santiago Solutions Group, which conducted the study for AHAA.

The study, which did not break down figures by media channel, found that 57% of the top 500 advertisers spent less than 1% of their budgets on Hispanic advertising in 2010, a group AHAA refers to as “in denial.”

The results aren’t free of controversy because, for some, allocating budget is not about picking the “right percentage” or a number that is consistent with the population number. “When you look at Coca-Cola versus, say, BMW you have to apply your brand development index, your consumption patterns, who is your consumer, etc.,” Maney said. “To pick a percentage and go with it is an easy answer to a complicated question.”

Still, the AHAA study claims a select group of companies that spends more than 14.2% of budgets on Hispanic media — which it calls “best-in-class” — have all reported revenue growth after investing consistently against the segment.

“But this has to be consistent; you have to invest more than 14% for at least five years for these results to show,” Santiago, whose group continues to pore over the results and plans to monitor the companies’ performances in the near future, said.

The media measured by the AHAA study comes from Nielsen, which means it takes into account budgets spend on what Nielsen defines as “Hispanic media” (be it cable, broadcast and print). It does not take into account spend on English-language networks that have large Hispanic audiences, like Fox or NBC.

In order to read the complete article, please click on the link below:
Language, Cultural Barriers Are Becoming Irrelevant in Marketing to U.S. Latino Segment – Multichannel News