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0Your Investment. Your Future.

Marketing Pork to the Hispanic Market

Provided by:National Pork Board


TopicsWhy the Hispanic Market?Meal Planning and ShoppingHispanic’s Perceptions of PorkNPB Hispanic CampaignRetail Case Study


Why the Hispanic Market?


Why the Hispanic Market?Roughly 14.7% of the entire U.S. population

– 43.5 MM consumersLucrative grocery store customers

– 87% more likely to shop 5+ times/week; shop 2-4 stores on average

– $49 billion spent on groceries; buy 23% more than non-Hispanics

$105/wk vs. $85/wk general market

Young market – 51% of Hispanics are between 18-49 (22 MM)– 25.4 median age vs. 35.8 for general market

Larger HH size– 3.5 vs. 2.7 in general market

Strong purchasing power– $575 billion annually

Purchase more pork than general market

Source: Synovate 2004; U.S. Bureau of the Census 2000; Yankelovich 2000; FMI 2002


2004 2020

4.7% 6.0%

12.9% 12.0%

14.7% 21.0% (80 MM)

Total Hispanic Pop. 2004 = 43.5 MMTotal Hispanic HHs 2004 = 12.5 MM

ASIAN

NH-BLACK

HISPANIC

As % of Total U.S. Population

Expected to Reach 154 MM (30% of total pop.) by 2050!!

Growing 10X Faster Than General Market

Source: 2004 SRC U.S. Hispanic Market


Highly Targetable: Top 12 Hispanic DMAs Account for 60% of Hisp. Market

Los Angeles17.9% Phoenix

2.8%

Fresno2.1%

San Antonio3.0%

Dallas3.5%Houston

4.2% Miami4.2%

New York9.9%

Chicago4.2%

San Francisco3.4%

San Diego2.1%

McAllen/Brownsville2.6%


70% Are Born Outside the U.S., Creating a Common Trait That Most Hispanics Share … Spanish

Born in U.S.

Foreign Born

30%

70%

Speak Spanish

Speak English Only

91%

9%

Source: SRC U.S. Hispanic Market


$15.9B – $17.0B = $1.1B

36%

4%

($1.5B - $2.1 B) ($14.4B - $14.9B)

Hispanic Contribution to Growth1994-1999

Growth in PorkExpenditures

1994-1999

Hispanic Non-Hispanic

Hispanic$549.5 M

50%

General Market

$543.3 M50%

Source: Bureau of Labor Statistics, CES 1994/1999

Hispanic Market Contribution to Pork Expenditures Growth is Huge

Growth in PorkExpenditures

1994-1999


Meal Planning and Shopping


Meal Planning / Shopping

Few moms work with lists; most decide the night before or at the store.

Culturally accommodating care-takers.

Cook home Monday-Friday; eating out mostly on weekends; mostly fast food!

Less apt to seek out recipes than mass market.

Source: National Pork Board Hispanic Focus Groups


Meal PlanningDistribution of annual household food expenditures (at home vs. away from home):– 65% of Hispanics eat food at home vs. 57% in general

marketFoods made from scratch are viewed as being more nutritious than prepared food– 44% of Hispanics agree and 42% of Hispanics strongly

agree with that statement for a total of 86%.At-home meal consumption:– 67% prepared mainly from scratch ingredients– 11% fully prepared, ready-to-eat from grocery store– 9% take-out from restaurant, either fast food or full-

service– 6% prepared mainly using convenience ingredients– 6% other

Sources: FMI


Variety of Stores Shopped Weekly

Price Club4%

Discount (Wal-Mart)

9%

Convenience (7-11)12%

Department Store

5%

Grocery Store/Supermarket

37%

Drug Store6%

Bodega/Hispanic Food

Store 27%

Sources: Yankelovich


Shopping the Meatcase

While 1/3 of Hispanic shoppers prefer Hispanic stores/butchers due to:

Fresher, more variety and availability of special “Latino”cuts

Special trimming / packaging instructions

More personal attention; feels like home

Regular chain stores are the lead meat purchase outlet, being preferred by 2/3

Many consumers believe they have fresher meat and are cleaner / more hygienic.

Source: National Pork Board Hispanic Focus Groups, Phone Survey


Hispanics’ Attitude Towards Pork


Perceptions of Pork

Hispanic consumer is in a different place than general market

ALREADY PREDISPOSED to eating pork86% are pork consumers

Considered to be “the most delicious.”

Top 3 pork attributes:-Delicious -Easy to prepare -Good value

Used as main ingredient in traditional recipes; considered a mainstay of Hispanic culture

Source: National Pork Board Hispanic Focus Groups, Phone Survey


Top 10 Pork Cuts Served Regularly

5%

5%

6%

6%

9%

13%

19%

23%

30%

53%

Feet

Chorizo

Skin

Spine/Back Bone

Ham

Shoulder

Carnitas/Cubes

Hocks

Ribs

Chops

Source: National Pork Board Hispanic Phone Survey


Barriers to Consumption

Despite the love affair with pork, major misperceptions serve as barriers to increased consumption

Misperceptions differed greatly from general market’s concerns & attitudes

Underscores need for different approach in marketing


Food Safety Concerns

Quality and care of livestock below U.S. standards in Latin America / homeland

Fear of trichinosis and other illnesses taken to the extreme

Consciously limit intake of pork to minimize risk

“Love affair” similar to the mass market’s attitude toward chocolate



Nutritional / Diet Concerns

Health concerns prevalent in Hispanic market

Genuinely surprised to learn of its parity with chicken

Have been instructed by their family doctors to avoid pork; eat more white meat

No unanimous understanding of red & white meat classifications

Reflects a growing awareness of the ties between diet and health, but still trailing mass market



“Quality” and emphasis on “U.S.” addresses safety issues head onLeverage both Familiarity/Emotion and Science with a strong message of safety and nutritionLabels with calorie & fat comparisons helpfulCoupons also liked, for items such as paper goods, tortillas, rice, beans, condiments, etc.Hispanic female nutritionist desirable as spokesperson -- not a celebrity!

Key Takeaways



NPB Hispanic Campaign


Strategies

Build a consistent and relevant brand identity for pork at every point of contact with the Hispanic consumer

Establish an educational and informational platform for the Hispanic consumer

Develop and launch a push-pull integrated marketing communications program, which includes:

- Public Relations/Dietician Spokesperson- Advertising (Radio, Print, Outdoor)- Retail Driven Promotions/Events- Bilingual In-store Signage/Labeling/Recipes


Critical to Elevate Pork’s Image

Tagline:“Pork is Good”

- Safe - Nutritious - Delicious

Brand Name:“U.S. Pork Quality”

– Seal of approval / trusted brand name

– Assurance associated with being U.S. made


Timeline• In 2002, developed campaign to emphasize the

positives about pork and hit misperceptions head-on

• In 2002, ran radio spots, billboards, and print ads in three key markets – L.A., Houston, and Phoenix

• In 2003, added Miami and Chicago• For 2004, a total of 12 markets are targeted, using

television, billboards, and print ads, combined with PR and Retail Marketing components


Target

Hispanic Females 18 – 54

Primary Household Shopper (Almost always the mother)


Target PsychographicsValues family, a focus on children, and celebrating traditions (holidays, music and food).

Prefers advertising in their native Spanish language.

Feels it is important to celebrate holidays and cultural events related to their Hispanic heritage, in order to maintain traditions.

Utilizing the Spanish language is another important way of preserving ones culture.

Extremely brand loyal.

Extra care and attention to physical appearance.


Phase 1 – Debunking the Myth

Developed “El cerdo es bueno” slogan and “Calidad U.S. Pork” brand.

Launched integrated educational Hispanic program.– Advertising– PR– Retail Marketing


Where we are today!The National Pork Board’s Hispanic efforts are entering their fourth year.

Awareness of “El Cerdo es Bueno” is 41%*

Educational platform has been successful at achieving the desired goals.

Revitalization of creative is now necessary to further enhance and establish pork’s image.

*2004 National Pork Board Tracking Study.


Phase 2 - Engagement

Engage consumer on a personal and emotional level, extending the

connection of previous efforts to where the Hispanic consumers is today.


Goals & Objectives

Engender trust by building the "U.S. Pork Quality" brand.

Associate “Halo” with positive emotional reinforcement.

Create a positive perception and increase awareness of U.S. Pork as a healthy and wholesome food choice.


Tone

Positive

Aspirational

Fun, Humorous

Memorable


Print Creative Sofrito y Salsa Pork Tostada


Out of Home Creative

“All the flavor. No regrets.”


Retail Case Study


The 3 Core Species Drive Category Growth

Hispanic stores drive a slightly higher performance than general market stores

% Pounds

% Sales % Profit

% Pounds

% Sales

% Profits

31%36%17%84%+1% +1% +2%

Chicken 33% 23% 28%36%42%

25%Pork 16% 15% 12% 16%

30%13%

Total 83% 82% 77% 79%83%

37%44%34%Beef

Non-Hispanic Stores Hispanic Stores

Source: Retailer Case Study


Segments % $ Share of Meatcase

% $ Share of Meatcase

9.7%8.2%3.9%

Chops 6.3% 7.0%Ribs 3.4% 3.6%Roasts 2.7% 3.1%

Pork

Breasts 11.8%Other Parts 5.0%Whole 3.3%

Chicken

Within Hispanic Stores, Variety Translates to More Segment “Breadth” in Chicken and Pork…

Overall, Hispanic stores have higher performance in “non-breast” and whole chicken as well as pork chops, ribs and roasts

Non-Hispanic Hispanic



… Which is Seen With Specific Items by Segment

Hispanic & Non-Hispanic store items were analyzed to identify “over achievers”Items that sold 50+lbs more than the other store type are shown belowMany “popular” Hispanic items are also lower priced items

SPECIES SEGMENT ITEMHispanic

AdvantageNon-Hispanic

AdvantageBEEF GROUND MEATLOAF BL REG 50 Ib+

85% BL REG 50 lb+90% BL REG 100 lb+80% BL FP 100 lb+85% BL FP 100 lb+

STEAKS CHUCK CC BI REG 100 lb+CHUCK FIRST CUT BI REG 100 lb+LOIN SEMI BL REG 100 lb+LOIN SEMI BL FP 100 lb+BRASCIOLE BL REG 50 Ib+SHOULDER BI REG 50 Ib+CUTLETS BL REG 50 Ib+SHELL BI REG 50 lb+LONDON BROIL BL REG 50 lb+LONDON BROIL BL FP 100 lb+SIRLOIN BL REG 100 lb+

ROASTS TOP ROUND BL REG 50 lb+ROUND EYE BL REG 50 lb+TENDERLOIN BL REG 100 lb+

VALUE ADDED SPEC CUTS STEW BL REG 50 Ib+OTHER OX TAILS BI REG 100 lb+

SHANK HIND BI REG 50 Ib+ALL OTHER HAM STEAKS STEAK BI REG 50 lb+

WHOLE WHOLE BI SPIRAL REG 100 lb+SAUSAGE SWEET BL REG 50 lb+

SWEET BL FP 100 lb+TURKEY BREASTS BI REG 100 lb+

TOM BI REG 100 lb+

SPECIES SEGMENT ITEMHispanic

AdvantageNon-Hispanic

AdvantagePORK CHOPS BI LOIN CC BI THIN REG 50 Ib+

ASSORTED BI REG 50 Ib+RIB CC BI REG 50 Ib+LOIN CC BI REG 50 lb+RIB END CC BI REG 100 lb+

CHOPS BL LOIN CC BL REG 50 lb+RIBS SPARE BI SLICED REG 100 lb+

BABY BACK BI REG 50 lb+ROASTS PICNIC BI REG 300 lb+

PICNIC BI SLICED REG 50 Ib+PICNIC SLICED BI REG 50 Ib+LOIN CC BI REG 50 lb+RIB END CC BI REG 100 lb+

GROUND REGULAR BL REG 50 Ib+OTHER BONES NECK BI REG 50 Ib+

FEET BI REG 50 Ib+CHICKEN BREASTS BREASTS BL FP 50 lb+

BREASTS SPLIT BI REG 100 lb+BREASTS BL REG 300 lb+

OTHER PARTS DRUMSTICKS BI FP 300 lb+LEG QUARTERS BI REG 300 lb+WINGS BI REG 100 lb+DRUMSTICKS BI REG 100 lb+THIGHS BI FP 100 lb+DRUMSTICKS BL SKNLS FP 50 Ib+

WINGS BI FP 50 Ib+LEGS WHOLE BI REG 50 Ib+ASSORTED BI REG 50 Ib+LEGS BI FP 50 Ib+

WHOLE FRYER BI REG 600 lb+ROASTER BI REG 100 lb+



Family Packs and Thin Cuts Also Important

19%

11%

31%35%

19%14%

32%38%

19%

9%

35%40%

Total Fresh Meat Beef Steaks "Non" BreastChicken Parts

Pork Chops

Non-Hispanic Avg Hispanic High Hispanic

Family Pack; Share of Pounds Sold

3% 3%8%

14%

3% 4%9%

16%

3% 3%

9%

25%

Total Fresh Meat Beef Steaks Chicken Breasts Pork Chops

Thin Cut; Share of Pounds Sold

Family packs are somewhat less important in beef steaks (likely due to price), but very important in other core segments

Similar observation with thin cuts; for example, thin cut pork chops are very strong in Hispanic stores


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