TRANSFORMING YOUR MULTICULTURAL
STRATEGIES THROUGH BIG DATA
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© 84.51° 2015 | Confidential
TODAY’S PRESENTERS
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© 84.51° 2015 | Confidential
CESAR MELGOZA
ERIN LIBER
FOUNDER & CEO
DIRECTOR,
CUSTOMER SCIENCE
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TODAY’S AGENDA
LEADING THE INDUSTRY IN MULTICULTURAL INSIGHT ACTIVATION
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© 84.51° 2015 | Confidential
01/
THE POWER OF OUR PARTNERSHIP:
WHO WE ARE & WHAT WE CAN DO TOGETHER
02/
WHY IT MATTERS:
MULTICULTURAL INSIGHTS & TRENDS
03/
TRANSFORMING INSIGHTS TO ACTION:
GOYA FOODS – TAILORING STRATEGY
04/
LEARNING MORE:
QUESTIONS & NEXT STEPS
THE POWER OF OUR PARTNERSHIP
WHO WE ARE AND WHAT WE CAN DO TOGETHER
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WHO WE ARE
Geoscape provides market intelligence data,
systems, primary research, and analytics for
companies who need to find growth amid a
culturally diverse economy.
Our clients realize that growth depends on
diversity and powerful intelligence platforms
that help grow their market share and gain
strategic advantages.
UNIQUE
DATA
ENABLING
TECHNOLOGY
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PRIMARY
RESEARCH
ANALYTICS/
CONSULTING
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A VIEW INTO OUR DATA
Our unique data and market intelligence fuels the ability to drive relevance
with a culturally diverse consumer base
DIRECTARGET® SDK
We have the ability to enrich consumer databases through our data around culture,
spending, demographics, religion, and gender
HISPANICITY™ & ASIANICITY™ CULTURE CODES®
Segments households by
levels of acculturation
(time in the US, language
spoke,
and
cultural
identity/practices)
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84.51°HELPS COMPANIES PUT THE CUSTOMER
AT THE CENTER OF EVERY DECISION
With insights from the data, we
personalize the experience, making
your business more relevant to
consumers who matter most
Second, we work with you to change
the organization, embedding the
principle of shopper first
In so doing, we grow measurable
brand value for our clients
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GEOSCAPE & 84.51°HAVE PARTNERED TO
PROVIDE UNPRECEDENTED ACCESS AND
INSIGHTS TO MULTICULTURAL SHOPPERS
Our partnership affords your team
unmatched access to actual, nonmodeled households
3 Million Hispanic
1.2 Million African American
1 Million East/South East Asian
225 Thousand South Asian
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WHY IT MATTERS
MULTICULTURAL INSIGHTS AND TRENDS
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TO WIN WITH GROWING MULTICULTURAL
SEGMENTS, BRANDS NEED TO SIGNIFICANTLY
EXPAND THEIR INSIGHT SOURCES
Coupling strategy with tactical levers will be necessary to stay relevant with
multicultural consumers
TOMORROW
TODAY
MULTICULTURAL SIZE
PROJECTIONS
36%
=
STRATEGY
GROWTH
 Asians, African-Americans
and Hispanics will contribute
nearly 90% of population
growth between 2015 & 2020
 By 2040, the non-Hispanic
Caucasian population will
drop below 50%, becoming
the minority
50%+
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LET’S HEAR FROM YOU
What percent of your marketing budget is allocated to
multicultural marketing initiatives?
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THERE HAVE BEEN BARRIERS TO MULTICULTURAL
INSIGHT INTEGRATION TO DATE
However, with emerging partnerships and tools along with the growth of
these segments, we have the power to break down these barriers
TRUE IMPORTANCE OF MULTICULTURAL STRATEGY
RESOURCE AND TIME CONSTRATINTS
INSIGHT DEPTH AND AVAILABILITY
SOLUTION ROBUSTNESS
BALANCING INSIGHT NEEDS AND BUDGET DEMANDS
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THE REMOVAL OF THESE BARRIERS IS BECOMING
INCREASINGLY NON-NEGOTIABLE
A new “mainstream” is changing brands’ consumer landscapes
17%
29%
2015 13%
PROJECTIONS
5%
2060
PROJECTIONS
8%
15%
“
Ignoring valuable and
growing customer
segments will translate
into lost influence,
loyalty and revenue
from increasingly
important multicultural
audiences.
“
US CENSUS PROJECTIONS
DONOVAN NEALE-MAY
Executive Director of the CMO Council
May 2015
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IT ALL STARTS WITH UNDERSTANDING YOUR
CONSUMERS’ NEEDS AND DRIVING RELEVANCE
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ASIAN CONSUMERS
FREQUENT AND FRESH
•
Asian American households have smaller baskets, but visit the store more
frequently. And, these frequent trips add up.
•
Asian households visit their grocer almost 20 more times each year vs. all shoppers
•
However, each of these visits yields a smaller basket with fewer units and lower spend
50%
Greater spend on natural food offerings
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“
“
BRINGING IT TO LIFE:
A PEAK INSIDE THE SHOPPING BASKET
The Asian American
population is the
fastest growing
consumer segment of
the US Population with
buying power expected
to top $1 trillion by
2017.
US BUREAU OF LABOR STATISTICS;
US CENSUS
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AFRICAN AMERICAN CONSUMERS
REDEFINING CONVENIENCE
 African Americans have traditionally been less engaged with more perimeter offerings
across the store in favor of frozen and more traditional center store categories such as
Breakfast, Canned Goods, and Baking
 However, with the shopping trends of Millennials influencing purchasing, the relevance
of frozen food is changing
3x
“
“
BRINGING IT TO LIFE:
A PEAK INSIDE THE SHOPPING BASKET
African American
consumers will add $1
trillion to the 2013
market and is
forecasted to reach 1.3
trillion by 2017.
SELIG FOUNDATION
Multicultural Economy Report
Magnitude of the decline in African American
Millennial engagement of single serve premium
meals vs. total population
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HISPANIC CONSUMERS
PERSONALIZED STRATEGY
 Understanding similarities can be just as important as identifying differences
 More acculturated Hispanic shoppers are 1.5 times as likely to engage in center store
offerings such as canned goods, dinners mixes, and condiments
 However, regardless of acculturation engagement is similar within beverage, produce,
and breakfast
2%
“
“
BRINGING IT TO LIFE:
A PEAK INSIDE THE SHOPPING BASKET
Hispanic consumers in the
US were estimated at a
$1.2 trillion market in
2013 — a figure higher
than the entire economy
of Turkey
SELIG FOUNDATION
Multicultural Economy Report
Variance in produce spend per household across
the Hispanic acculturation spectrum
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LET’S HEAR FROM YOU
To what level are you using shopper or household data when
developing and/or measuring your multicultural strategy?
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TRANSFORMING INSIGHT TO ACTION
GOYA FOODS – TAILORING MULTICULTURAL STRATEGY
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THESE INSIGHTS ARE ALREADY REFINING
MULTICULTURAL STRATEGY WITH BRANDS
We have partnered with several CPGs to test and refine our solution with
the actual issues facing brands today
We began working with Goya to provide insight into
opportunities across the multicultural spectrum with canned
bean consumers
01/
RELEVANT ACQUISITION
02/
EXPANDING REACH
While Goya represents a small percent of category sales within Kroger, the
brand captures a significantly larger share of multicultural shoppers’ spend
Goya’s share is nearly 4x with Hispanic consumers compared to the total
population, but there is still opportunity
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01/ RELEVANT ACQUISITION
IN ADDITION TO HISPANIC CONSUMERS, GOYA HAS MOMENTUM
& OPPORTUNITY WITH SOUTH ASIAN HOUSEHOLDS
The way to win with South Asian
shoppers is through chick pea
engagement
South Asian households are
spending more per household in
the category than total shoppers
and are also spending
significantly more per household
on the Goya brand
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01/ RELEVANT ACQUISITION
THE POWER OF OUR JOINT CAPABILITY ALLOWS US TO ALIGN
STRATEGY TO EACH ITEM IN YOUR PORTFOLIO
•
Goya’s portfolio strategy with South Asian household would concentrate on chick peas and
exploit their 15.5oz offering, which cracks the top 10 UPCs with this segment
•
This can be utilized for in store promotions, assortment decisions, and targeting decisions to
drive relevance
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02/ EXPANDING REACH
QUANTIFYING OPPORTUNITIES ALLOWS FOR PRIORITIZATION
BASED ON BUSINESS IMPACT
GOYA’S HISPANIC CONNECTION
•
Hispanic consumers have the strongest Goya
and category engagement
•
Hispanic shoppers are the only segment
experiencing category growth year over year
•
Other branded competitors have been losing
share with Hispanic shoppers year over year,
providing an opportunity for Goya
COMPARED TO TOTAL POPULATION
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02/ EXPANDING REACH
THE HISPANIC SEGMENT IS TOO LARGE AND VARIED FOR A ONE
SIZE FITS ALL STRATEGY
•
Focus strategies on the Mexican Hispanic as they are the largest segment and
are engaged at expected category index levels
•
Drive Pinto and Black Beans due to high relevance with Hispanic shoppers
•
However, include some focus on Black-Eyed Peas as a growth opportunity with
this segment
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GOYA REFINED THEIR MULTICULTURAL STRATEGY
AND BUILT DIFFERENTIATED STRATEGIES BASED
ON VARYING CONSUMER TRENDS & NEEDS
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RELEVANT ACQUISITION
•
Develop strategies for the South Asian segment
•
Focus on Chick Peas and utilize the high loyalty
and performance of Goya’s 15.5oz UPC
“
This solution allowed us to
look at our established
business with a new lens.
•
Continue to focus on Hispanic opportunities
•
Customize strategies for the Mexican Hispanic
segment
Not only were we able to
understand opportunity areas
outside of the Hispanic space,
we were able to identify key
targets within the Hispanic
universe that we could grow
and strengthen.
•
Align Pinto & Black beans to core strategies while
adding Black-Eyed Peas due to growth trends
GOYA FOODS
March 2015
EXPANDING REACH
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“
01/
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LEARNING MORE
QUESTIONS & NEXT STEPS
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HOW ARE YOUR BRANDS POSITIONED TO WIN
WITH MULTICULUTRAL SEGMENTS?
COMMITMENT
KNOWLEDGE
ACTIVATION
 Is your organization
committed to
investing in
multicultural
strategy?
 What insights exist
today?
 How are you
organized to take
advantage of these
insights?
 What level of
strategy exists
today?
 How actionable are
the insights?
 At what level of
granularity?
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 Are you looking
beyond total
Hispanic?
 What areas of your
business could these
insights be applied
most directly to?
 How are you
monitoring the impact
to the business?
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WE HAVE PARTNERED WITH SEVERAL CPGs TO
DEVELOP A SOLUTION THAT PROVIDES TURN-KEY,
MEANINGFUL INSIGHT
84.51°merges
Geoscape
multicultural
information into our database of 56 million
shoppers to understand their behavior
across 2,500 stores spanning grocery, drug
and convenience.
We have access to millions of actual, nonmodeled multicultural households to provide
insights on your brand’s performance at the
UPC level.
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01/
Key Performance Indicators
Sales metrics across brand,
ethnicity, and geography
02/
Portfolio Assessment
UPC-level engagement
metrics
03/
Share Analysis
Source of share by brand, product
segment, and geography
04/
Three Multicultural Cuts
Hispanic, Asian American,
and African American
05/
One Cultural Deep Dive
Hispanic or Asian Acculturation or
Country of Origin
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INTERESTED IN LEARNING HOW THIS MAY WORK
FOR YOUR BRANDS?
Contact us to receive a free Brand Coverage Report
 Gain view into the sample size
available across African American,
Asian, and Hispanic households
along with the cultural deep drive of
your choice
 Evaluate the depth of insight you
could gain for your business
[email protected]
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QUESTIONS?
Please submit questions via the Citrix Go-to-Webinar
Control Panel to the right of the screen.
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LET’S STAY CONNECTED
Reach out to either 84.51°or Geoscape on how our partnership can help
position your brands for success
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© 84.51° 2015 | Confidential
ERIN LIBER
CONTACT YOUR
CLIENT LEADER FOR
MORE INFORMATION
OR
CONTACT US AT
1-888-211-9353 OR
[email protected]
OR
[email protected]
513.632.0662
CESAR MELGOZA
[email protected]
305.860.1460
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THANK YOU!
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APPENDIX
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IT ALL BEGINS WITH THE SHOPPER
2,424 STORES IN 31 STATES
56MM+
Households
1 OUT OF 2
HOUSEHOLDS IN THE US
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OUR SOLUTIONS OFFER UNPRECEDENTED SHOPPER
DEPTH AND KNOWLEDGE BASED ON ACTUAL
PURCHASE BEHAVIOR
What they purchased…
56MM+
Households
1 OUT OF 2
HOUSEHOLDS IN THE US
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7 days ago…
For the 1st or the nth time…
With what other products…
At what price...
With what tender…
With a coupon or not…
While on ad or on display…
During what day and time…
At which store…
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HOW DOES THAT STACK UP?
NATIONAL ALL-OUTLET PANEL
84.51°BEHAVIORAL DATA
~100,000 Panelists scan and
record their purchases after
the transaction has occurred
Purchase behavior of 56 Million
Households is captured at the
point of sale, ensuring 100%
accuracy
Opt-in panelists may not be an
accurate representative
sample
Data is available for analysis
within 2 weeks of occurrence
Contains UPC-level information
including unmasked private label
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DIRECTARGET® SDK
 Database Enrichment Service
 Use in our SaaS platform (GIS)
 Install SDK in your data center
 Adds Fields to Prospect/Customer File
Customer File
Geoscape Data BusinessAnalytics
Name
Culture
Address
Spending
Transation History Demographics
Lifetime Value
Religion
Churn
Gender
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Benchmark
Penetration
Correlation
Descriptive
Predictive
Actionable Insights
Segmentation
Communication
Adaptive Services
Strategy Shift
GroundTruth Execution
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HISPANICITY™ CULTURECODES®
HA2 – HA4 are bicultural to a degree. The closer to HA3 the individual the more flexibility they have to switch language and
cultural practices depending on the context of the situation. Some marketers refer to this phenomenon as “ambi-cultural”.
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ASIANICITY™ CULTURECODES®
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INSIGHTS THROUGH OUR PARTNERSHIP GO
BEYOND WHAT TRADITIONALLY HAS BEEN
AVAILABLE TO DRIVE MEANINGFUL STRATEGY
Hispanic Country of Origin
STRATEGY BEYOND…
AGGREGATE SHOPPER SEGMENTS
Hispanic Acculturation Levels (Hispanicity™)
Asian Country of Origin
Asian Acculturation Levels (Asianicity™)
STRATEGY BEYOND…
THE CATEGORY OR BRAND
Flexible view of your category and brands
(flavors, sizes, etc.)
Insights at the UPC level
National and DMA views
STRATEGY BEYOND…
NATIONAL KPIs
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Share comparisons and opportunities
Performance heat map with Market priorities
Portfolio Assessment
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RELEVANT HISPANIC STRATEGY REQUIRES
INSIGHT AND ACTIVATION
Illustrative example
Focus efforts, marketing, and in-store presence against simple pleasures and
flavor focused offerings
 While Healthier options is the focus of overarching campaigns, it has yet to resonate
with Hispanic shoppers
 Lead with Product A as its appeal among Hispanic households is 10x what would be
expected based on the total population
PRODUCT A
10x appeal
among Hispanic
shoppers
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KEY PERFORMANCE INDICATORS
Ground your strategies with the impact to your brand sales among the segments that
matter most. Determine key segments, opportunities for growth, growth levers available.
BENEFITS
01/
Key metrics across multicultural segments for a view into multicultural consumers
02/
Provides a view both relatives to mainstream consumers and changes in
engagement over time
INSIGHTS IN ACTION
Strengthen your position with the Hispanic
segment to at least on par with category
•
Yum Yum Flakes lags competitive brands in
Hispanic engagement
•
Hispanic shoppers decline with Yum Yum
Flakes is at a steeper rate than the category
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KEY PERFORMANCE INDICATORS
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SHARE MAPPING
Gain the power of knowing the who and where of your brand engagement to enable
relevant and actionable strategies in and out of the store.
BENEFITS
01/
Deep dive into the customer segments most engaged with your brand & category
02/
Identify share of sales by brand, category, and product group
03/
Geospatial capability allows for identification &
actionable targeting of multicultural segments
INSIGHTS IN ACTION
Continue investment in the Houston market to
capitalize on high growth rates
•
Houston is experiencing the strongest growth with
Hispanics leading the way
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SHARE MAPPING
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PORTFOLIO ASSESSMENT
Uncover the strengths and weaknesses of your portfolio across key performance
metrics at the UPC level to align strategies, promotions, assortment, etc. accordingly
BENEFITS
01/
Uncover granular, UPC level insights to identify opportunities for growth
02/
Allow for a deep dive into item level engagement metrics for your brand & category
03/
Understand the specific products multicultural consumers are engaging with
INSIGHTS IN ACTION
Align portfolio shelf space and promotional
plans to Hispanic trends and needs
•
Yum Yum Flakes 12oz appeals is the top item
for Hispanic shoppers vs. 35th for all shoppers
•
When targeting bi-cultural and less
acculturated Hispanic consumers, Chocolate
Yum Yum Flakes should be utilized
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PORTFOLIO ASSESSMENT
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