Showing posts with label Hispanic consumers. Show all posts
Showing posts with label Hispanic consumers. Show all posts

Friday, 9 May 2014

FOOD TRENDS: Hot & Spicy Flavors Heat Up Product Offerings

Hot & Spicy Flavors Heat Up Product Offerings
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In celebration of Cinco de Mayo, it seems appropriate to take a look at the growth of hot and spicy food and beverage trends turning up the heat in new packaged food launches.

Flavor is an ever-changing variable that can be influenced by emerging global cuisines and evolving consumer preferences. The popularity of ethnic foods among U.S. consumers has been on the upswing over the past few years, and now, more than ever, Americans are moving out of their comfort zones to explore bolder flavors and more culturally diverse foods, opening the doors to endless flavor options for food product manufacturers and designers.

Demand for authentic hot and spicy ethnic flavors has dominated the food and beverage scene for a number of years, and there is no sign of it cooling down in 2014. According to Packaged Facts, 53% of U.S. shoppers like hot and spicy foods, rising to 58% for Generation Y. A recent Food Product Design “Survival Guide: Flavors" Digital Issue revealed evolving American palates take their dining cues from fiery and authentic flavors offered by Latin, Asian, African and Indian cuisines, and seek variety from all sources, including restaurants and processed foods.
Mintel estimates the ethnic food market will grow by 20.3 percent from 2012-17, likely driven by continued consumer interest and more focused product development. However, one of the most important factors fueling the hot and spicy ethnic cuisine is the growing Hispanic population that is projected to account for 60 percent of U.S. population growth between 2011 and 2016. U.S. Hispanics wield more than $1 trillion in purchasing power, and will spend approximately $9.5 billion in 2014 on food and beverage products.

Mexican chiles, such as green chiles and jalapeños, are now prevalent in a range of foods, including bagels, breakfast sandwiches, burgers, sandwiches, chips, snacks, condiments and dipping sauces. A recent article in the Wall Street Journal article explored how companies from Kraft to General Mills are embracing the hot and spicy flavor trend and making spicier versions of mainstream foods. According to the article, new understanding about how people who love spicy foods eat—and shop—is fueling the latest wave in making packaged foods hotter.

Some new offerings spicing up the retail aisles include General Mills’ Helper Bold, a version of its boxed line of pasta available in Spicy Chipotle Chicken Enchilada and other flavors; Old El Paso’s Cheesy Nacho and Chipotle Black Bean bowls; Bumble Bee’s canned tuna with chipotle or jalapeños; KIND Roasted Jalapeño bars; and Lay’s Flamin’ Hot potato chips and Sriracha chips. In the last year, Kraft introduced slice cheese with habanero peppers, Oscar Mayer Jalapeño and Cheddar Franks, Philadelphia Cream Cheese chipotle spread and Jalapeño Deluxe Macaroni & Cheese.

The hot and spicy flavor trend will continue to heat up new product launches in the next few years. Remember, everything in life deserves a little spice.

Friday, 18 April 2014

MARKETING STRATEGIES: MAXIMIZING MARKETING STRATEGIES TO SERVE HISPANIC CONSUMERS

MAXIMIZING MARKETING STRATEGIES TO SERVE HISPANIC CONSUMERS

U.S. Hispanic consumers are a powerful and growing economic force with a buying power in excess of $1 trillion, driven by a population 56 million strong that is expected to grow to 131 million people by 2050. Despite the tremendous potential of this market, less than 5% of current media is devoted to advertising, representing a spending gap of approximately $22 billion.

The consortium—unique in its breadth and scale in understanding the impact of marketing activities geared toward Hispanics—has two primary goals: To develop a scorecard of brands’ performance and traction with Hispanic consumers relative to their peers and industry; and to enable members to maximize the impact of advertising targeting Hispanics by building Hispanic brand strategies and a “total market" approach that balances general market and multicultural investments.

Highlights of the Hispanic Marketer’s Playbook will include efficient Hispanic reach generation strategies; Hispanic engagement and impact through social and mobile media; synergy and halo of Hispanic media with promotional levers; impact of dubbed and translated commercials versus original Spanish language creative effects; show integration strategies and effectiveness; and creating Hispanic research and metrics frameworks for success.

The study will leverage IRI’s proven Hispanic Mix Drivers platform—a powerful marketing-mix modeling platform that incorporates robust statistical techniques in modeling Hispanic sales trends and quantifying Hispanic marketing lifts. The modeling rigor is balanced with heuristics derived from a massive industry benchmarks database collected from a multitude of consumer behavior studies conducted over a 10-year period. The modeling engine is further enriched by cross-media audience data through the consortium alliance and IRI’s network of resources.

The study will enroll participants in April and through June 2014. Participants will receive results on their brands in August 2014 through in-depth review sessions. Macro insights distilled from across all participating brands ,as well as the Hispanic Marketing Playbook, will be unveiled at a industry event targeted for Fall 2014.

FPD’s Take:
Understanding which product categories appeal to each Hispanic consumer group will be critical to effectively connecting with these consumers and understanding the situations and motivations that drive category consumption will enable food companies to influence future sales to these
Hispanics make up 17% of the U.S. population, wield $1.2 trillion buying power and are more brand loyal with a lesser emphasis on price-point compared to the national average, according to data from Association of Hispanic Advertising Agencies (AHAA). The findings suggest consumer packaged goods brands that focus on Hispanic marketing are most likely to see more rapid topline revenue growth than those who are not as focused on the market.

Not only do Hispanics represent 56% of the U.S. population growth between 2000 and 2010, but they spend more time and money per trip to the grocery store than the national average, they bring more family members with them to shop. Data showed a significant difference in the revenue growth rate attained by CPG companies that designate a higher focus to the Hispanic market than those corporations who focus less.

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