Posted on July 1, 2010

CONSUMER FACTS

T-Mobile’s efforts to reach the Hispanic market seems to be paying off. One out of four T-Mobile subscribers is of Hispanic origin, according to the latest data from Experian Simmons. By contrast, the leading telecom companies, AT&T and Verizon don’t seem to have a strong hold among Hispanics.

After analyzing data for the past two years, Experian Simmons recently confirmed that T-Mobile’s market share has remained unchanged with 9.6%  of subscribers as of May, 2010, while AT&T and Verizon claim more than twice the number of subscribers with 22.4% and 25.7%, respectively.

There have been rumors of a possible merger between T-Mobile and Nextel/Spring. If this materializes, the new entity should continue their pursuit of the Hispanic market, which is the smartest move any company can do given the demographic trend towards a more diverse population driven by the growth of the Hispanic segment.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.

Posted on June 17, 2010

CONSUMER FACTS

The World Cup in South Africa is getting American soccer fans excited. There are already about 19 million people who have played soccer in the last 12 months. The latest data from Experian Simmmons show that a similar number of people played soccer and American football in the last 12 months.

Hispanics show the highest participation not only in soccer, but also in basketball and American football.

To learn why Americans call it soccer check:

• Football Or Soccer? What’s In A Name?
• Why Do Americans Call It Soccer?

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.

Posted on March 31, 2010

According to Simmons National Consumer Survey, in 2009 Hispanics’ candy consumption of brands made by some of the large confection makers was about 15%, which can be considered small compared to the candy consumption in the non-Hispanic population (85%). Since 2004, the big confection manufacturers have been trying to increase Hispanics’ candy consumption by buying local brands south of the border or developing new flavors that would attract Hispanics. They have even tried to reach this segment through partnerships with Latino artists (e.g. in 2004, Hershey’s signed a multi-year contract with Latina singer Thalia). However, based on these numbers, it seem that confection makers still have a lot to do to penetrate this market segment.

Nonetheless, Hispanics’ candy consumption wasn’t too bad for some of the confection makers in 2009. Hershey’s, with a large product portfolio, took the top spot with nearly 1 out of 2 candy-eating Hispanics satisfying their sweet tooth with Hershey’s brands from Hershey’s Kisses to Good & Plenty. Mars competed pretty close with a set of brands from M&M’s, Snickers to M-Azing.

Acculturation levels didn’t seem to play a big role in preference for a candy brand, but heritage definitely did. Hershey’s biggest fans were be found among Puerto Ricans, followed by Mexican Americans. Mars brands were also among the favorites for these groups. However, Cubans and other Hispanics groups consumed Hershey’s and Mars confections in less degree. Interestingly enough Godiva chocolates did better among Cubans, which may say something about their taste preferences.

Overall, it has been accepted that Hispanics favor chocolate bars with almonds, intensely flavored products and confectionery with combination of flavors, such as hot and tangy. But these are generalities that miss to take into account differences among Hispanics, particularly when it comes to food. For example, “tangy” and “hot” flavors are likely to be preferred by Mexican Americans, but hardly by Cubans.

How much consumer research confection makers are doing to understand the Hispanic market’s diversity is unknown. This market segment may be considered small compared to the non-Hispanic eating-candy population, and confection makers may think its size doesn’t warrant allocating research resources to it. I would speculate that the segment may be small because not enough resources have been invested to expand it, and precisely because it is small now, the confection makers that invest in understanding this market segment, its diversity, cultural influences, taste preferences and shopping behaviors are likely to win big given the predicted exponential growth of the Hispanic population in the US for the near future.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.

Posted on January 27, 2010

Response Magazine reported recently that free-standing insert (FSI) coupons emerged as a key component in promotional programs of many manufacturers and retailers during 2009 with more than 272 million pieces dropped. But what was the coupon redemption rate in 2009?

Well, it seems many cent-off coupons were put to use. The Experian Simmons National Consumer Survey showed that 7 out of 10 households used coupons in 2009. Although most were looking to save money, others used coupons to try new products. One out of two consumers claimed they used FSIs cent-off coupons, placing this coupon category at the top followed by coupons received by mail, found in packages, magazines, on the Internet or handed out in or near stores.

For many years, coupon redemption among Hispanic consumers has been reported to be lower than the general population due to a number of factors including cultural barriers, lack of familiarity with the redemption process, different product preferences, wrong distribution channels, requirement of multiple purchases, low coupon face value, and refusal to accept coupons by stores frequented by Hispanics, among others.

However, the last couple of years in a down economy may have help Hispanics to get with the program. In 2009 Hispanic weren’t too far behind the average non-Hispanic household as 6 out of 10 Hispanic households used coupons, with Cubans leading the way, followed by Puerto Ricans, other households of Hispanic heritage, and Mexicans. Nearly 4 out of 10 Hispanic consumers used coupons inserted in newspapers (FSIs) and 3 out of 10 used coupons received by mail.

Given the diversity and expected growth of the Hispanic population in the US from 15% in 2009 to 30% in 2050, there is a big opportunity for manufacturers and retailers to introduce new products to Hispanics with the help of coupons. The key is to develop promotional programs – with a coupon component – that appeal to the diversity of the Hispanic market in the US. Sensitivity toward cultural differences based on country of origin, product preferences, regional variations of the Spanish language, and levels of acculturation, among other factors can send coupons to the trash can or get Hispanic consumers to try new products.

To learn more about our consumer data service visit Consumer Shopping Behavior Insights. To request consumer shopping behavior data and insights don’t hesitate to contact us.

Sources:

- Census Bureau – Projections of the Population by Sex, Race, and Hispanic Origin for the United States: 2010 to 2050

- SMRB – Summer 2009 Adult 6 Months (Feb 09 – Sept 09)

- Jacqueline Renfrow, “FSI Couponing Reaches Record Levels,” Response Magazine, 20 Jan, 2010