CHICAGO--(BUSINESS WIRE)--By 2015, the U.S. Hispanic market's purchasing power will total $1.3 trillion. To help CPG marketers connect with this diverse, rapidly expanding customer group, IRI has released a new “Point of View: Winning with the Hispanic Consumer Today." Leveraging IRI's deep insights and data, the Point of View will deepen marketers' understanding of the key disciplines required to succeed with Hispanic consumers, including creating a cultural connection, effectively engaging and activating shoppers throughout the path to purchase and gauging success through accurate metrics.
Today, Hispanics account for one in six Americans, or 53 million people. Hispanic families consume more media and are more responsive to media than the general population. Additionally, 70 percent of Hispanics are under age 40, making investment in this group a wise long-term proposition. Marketers have historically underserved Hispanic shoppers, but continuing to do so would be a mistake: IRI analysis shows that a $1 billion CPG company can earn an extra $71 million in revenue annually by investing more effectively in the Hispanic consumer.
"Hispanics are a powerful, growing group, and marketers who make special efforts to satisfy these consumers will certainly reap many rewards," says Joy Joseph, principal and practice leader, Global Analytics and Consulting, IRI. "Highly targeted, well-executed Hispanic campaigns grounded in a thorough understanding of the Hispanic shopper can directly stimulate revenue increases and market share growth. In fact, our analysis of 10 CPG product portfolios shows that more aggressive spending on Hispanic campaigns can yield outsized results."
IRI recommends that CPG companies start with a “Total Market” strategy when approaching the Hispanic segment. There are many definitions of Total Market being discussed in the industry today, but Latinum Network, a multicultural research and strategy firm with more than 85 active Fortune 1,000 clients, defines a Total Market company as having three key traits:
- Upstream Integrated Planning: Total Market companies make cultural segments a required input to strategic and financial plans well before a single campaign brief is written.
- Multiculturally Led Insights: Total Market companies make cultural consumers at least equal partners in the insights generation process, with oversampling of Hispanic, African-American and Asian segments, and look for transcending multicultural insights to drive to Total Market ideas.
- Integrated Execution: Multicultural talent both inside and outside the Total Market organization is given the opportunity to perform “traditional” work, and vice versa; the best talent and the best ideas win, from creative to media to distribution.
Given these key traits, it is perhaps not surprising that Total Market companies spend more, not less, on multicultural segments—because these segments are made a part of the strategy from the outset.
This new Point of View is IRI’s most recent strategy piece related to the Hispanic market. In July, the company hosted a webinar also titled, "Winning with the Hispanic Consumer Today," hosted by IRI’s Joseph and Andy Hasselwander, vice president, Latinum Network.
About the IRI Point of View
The IRI Point of View, "Winning with the Hispanic Consumer Today," is available exclusively from IRI, the global leader in innovative solutions and services for consumer, retail and over-the-counter health care companies. The POV details IRI’s analysis of 10 CPG product portfolios, as well as proven examples of how targeted Hispanic campaigns can directly lead to improved revenue and market share growth. Additionally, the POV includes insights from Latinum Network, including 10 strategic marketing imperatives for Total Market strategy. To download the free IRI Point of View, please visit: http://www.iriworldwide.com/Insights/Publications/PointofView.aspx.
About IRI
IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over-the-counter health care industries by pinpointing what matters and illuminating how it can impact their businesses across sales and marketing.
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