At the recent 2013 Hispanic Retail 360 Summit, a cross-channel conference, CPGs, retail experts converged to share insights on successful programs. There was unilateral agreement that now is the time to act strategically on the opportunities to approach the Hispanic and non-Hispanic consumers in unison.
During a panel discussion on Maximizing Hispanic Market Opportunity, Santiago Solutions Group President and Chief Strategist, Carlos Santiago, outlined a straightforward, strategic planning process for designing Total Market Growth Strategies for manufacturers and retailers:
Consumer Dynamics + Company/Brand Core Total Market Growth
“This simple TM approach can be applied across any products and segments,” noted Santiago. “Consumer dynamics including mindsets and perceptions, triggers to purchase, brand value, and developing trends, are analyzed among Hispanics, Non-Hispanics, Multicultural and Millennials, to fully understand key nuances but more importantly, the “Total Market connectors” -the optimum points of growth in common among the various segments.”
According to Santiago, overlaying Total Market Connectors with a company core assessment is essential to break away from the usual solutions and lead to true Total Market innovation. A core assessment must factor in company and brand goals, missions, values, as well as more business intrinsic capabilities like vertical and horizontal integration drivers, key raw materials, production and packaging processes, channels, and competitive niche innovators. This will yield a thorough foundation with a fresh Total Market Strategy in sync with feasible opportunities. “We have successfully applied this process within various industries with exceptional results.”
Alberto Bandera, Chief Executive Officer at Teasdale Quality Foods, and co-panelist with Santiago, validated how applying this straightforward Total Market approach had worked successfully within his food company. “As manufacturers, looking for cross-over growth, we applied this process to fuel our short and long-term strategic planning. It allowed our three year plan and immediate actions to be solidly anchored in consumer insights. It guided expansion capital investments in capabilities driven by synergies. Our Board was able to decide on resource investments commensurate with a realistic understanding of the size of the prize in all segments.”
The panelists shared various examples of how they utilized Total Market findings to identify what Santiago called “double plays” and “connectors” to promote products to both Hispanic and non-Hispanic consumers. “The research highlighted the booming popularity of Mexican & Latin food among all consumers,” Bandera noted. “That means there is room to grow among Non-Hispanics as well as second generation Hispanics looking for convenient, healthier, easy to prepare Mexican/Latin meals. That was our Total Market “connector.”
Co-panelist Chris Vasconcellos, Senior Director of Merchandising at Save Mart Supermarkets, elaborated on the in-market retail impact: “At Save Mart we tried to capitalize on that same insight. First, we have integrated Hispanic items throughout the store because many non-Hispanic shoppers are using a variety of Hispanic items. But this insight has impacted our advertising as well. We recently ran an “Enchilada ad” as a mainstream offering and we complemented this ad by merchandising and bundling products on in-store displays so they would speak to a broader audience. We found both the more acculturated Millennial and the non-Hispanic welcomed the convenience product offering, presented together in-store. “
Following a lively Q&A session with the audience, which addressed more specific execution and profitability questions, the panelist concluded the workshop with strong agreement about the effectiveness of the formula: “Without question, by utilizing this Total Market approach, we have found it easier to develop product plans and retail executions, “ CEO Bandera observed. “The shared insights allow both -manufacturer and retailer, to benefit and grow, as we meet the Total Market consumers’ needs and desires.” Chris Vasconcellos agreed: “Whether you’re a company, manufacturer, or retailer, this formula is a win-win for all of us.”
SSG is a strategy consulting firm driven by management P&L experience and predictive analytics. We develop fact-based business models, growth roadmaps, insights and segmentations for the Total Market and the evolving Hispanics, Multicultural & Millennial segments. We help clients focus their limited resources where the highest market opportunities exist, and which strategies advance maximum, efficient Total Market growth.