“Thirty percent [of our shoppers] make less than $40,000 a year and one quarter use public transportation to the store,” Jocelyn Wong, CMO for Family Dollar, said during her keynote at the Shopper Marketing Expo in October.
These are shoppers who have specific behavioral patterns and sometimes have to make tough purchase decisions, creating a “tradeoff mindset.” Understanding this mindset can help marketers and retailers reset priorities to drive value among cost conscious Hispanic shoppers.
Below are three best practices we’ve gleaned from our ‘NVista study and client programs to help “tradeoff” shoppers.
- Focus on the occasion and the role of the brand. Less disposable income may mean more constricted out–of-home entertainment budgets. Factor in the larger average size of Latino households, and the conclusion is that cost conscious Latinos likely spend more family time together. As one retailer’s research showed, as a result, price sensitive moms want to make the best of these occasions. So focus on the occasion and the role your brand can play to help these moms make family time more special.
- Align your advertising with the shopper mix. Hispanic mass media is a great place to build brand equity as there is less fragmentation and competition, broader reach and culturally relevant content. In addition, shopper vehicles with cost conscious consumers can be more effective than mass media. It’s not just about the emotional halo of advertising, but whether the value of the equation makes sense. With a price sensitive shopper, the emotional reward of a deal on a household brand like Clorox can have a strong impact on a brand’s long-term equity.
- Partnerships matter. Partners are essential to occasion-based strategies. As private labels and retailers continue to target cost conscious shoppers, consider adding these brands to your occasion offering. More often than not, the retailer will support it and you will help further your value proposition.
There’s a separate set of rules that marketers and retailers need to follow to reach cost conscious Hispanic shoppers. In many cases, retailers and brands are losing share to private label and second-tier brands by not focusing marketing efforts on these shoppers. Ask yourself this question: Can your shopper strategies afford to disregard this segment given our current long-term economic conditions?