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The $1 trillion Hispanic Opportunity for Restaurants

QSR spells family for the Hispanic market. A time to enjoy with others and share a meal with great taste and value. QSR’s provide an affordable indulgence for most Hispanic families. Hispanics overindex in going out to eat. Some dynamics that drive this behavior are the need to socialize and be out about town. Another driver is the desire to spend time with friends and family. Hispanics are more likely to travel in groups for sociability and qsr’s provide a convenient location to bring everyone together.

While Hispanics may get out more and be more likely to spend money at a qsr, they cannot be taken for granted. Taste is an important indicator which they will not sacrifice. So in essence it’s not only venue but an entire qsr experience that drives business with this consumer segment. A positive and holistic experience might include a family value meal that tastes great in an environment that is friendly, well lit and provides a variety of choices for their palette.

As an example, McDonald’s does a great job of creating a positive experience for this consumer set. It advertises in English and Spanish, it is aspirational, provides great tasting, high value meals in an environment that is cheerful and has a playground in some locations for the kids. This invitation to the consumer to engage is appealing across the board. Other QSR’s should learn something from this strategy to effectively communicate and engage with Hispanics.

New grads have it tougher now than those in years passed considering they are often up against their industries experienced and well-established professionals. Another contributing factor making their search more difficult is that there are simply less jobs since fewer companies are actively hiring.

Job placement expectations for the Class of 2009 have dramatically decreased compared to those of the 2008 graduating class. In fact, companies are forecasting to hire 22 percent less graduates this year than they did last year. During the spring recruiting session alone, over 20 percent of employers were not expecting to be hiring at all.

As for those graduates fortunate enough to secure a new position they face still another obstacle. Salaries have flattened. This year, graduates holding a bachelor degree are bringing in just about $50 more per year on average when compared to the class of 2008.

It is interesting to note, however, that college recruiting is still a very valuable resource to employers searching for new-hires to fill entry-level positions; despite the overall decline in job opportunities. 44 percent of entry-level positions were filled by college recruits in 2008 which was up 9 percent from the year before. Having said that, grads remain fairly optimistic in the face of our nation’s economic outlook. 53 percent of respondents polled stated that they were confident they would be employed within three months of graduation.

Just because finding a job is more difficult in the current market, it does not mean it’s impossible. Those that take advantage of internships will be at an advantage for sure. There are some experiences that can not be taught, even at the best College or University. It’s these “real-world” experiences that can sometimes make all the difference in securing a new position. Grads should leave their comfort zone and accept that they will have to do jobs/tasks that they really don’t want to. And those that consider it a stepping stone will have nothing to loose and everything to gain.

Innovative thinkers will also be prime candidates to receive job offers. And who has newer, fresher ideas than those new to the field? Recent grads aren’t yet “set in their ways” as some experienced professionals may be. They are more easily adaptable and open to change, because after all, everything is new to them. They have taken the best of what their mentors, professors and peers have offered them. It is through this exchange of ideas they mold their own style.

Although there are definitely less job opportunities within the current market and the search will be difficult to say the least, recent grads should remain positive. They are the future leaders of their fields and employers that understand and respect that will be all the better for it.

Private label is growing. Walmart, Target and Safeway and even 7-11 are just a few of the big guns that have invested heavily into their own store brands. These labels are differentiated and taste good. Gone are the days of cheap black on white packaging or a lack of cache associated with a store brand – today, in the age of a recession – private label is de rigeure. These products deliver on functionality and are now building emotional ties with consumers during a difficult time. What implications does this phenomenon have for mainstream brands – can mainstream brands remain competitive throughout the recession and thereafter?

Mainstream brands are eroding but will never go away they are simply being redefined to include brands that have not traditionally been well promoted. This is a fight for share of heart and private labels can use these tough economic times to its advantage touting value in product quality and in price. What is deemed an acceptable brand will be those that deliver on the brand promise and in the case of packaged goods, quality, taste, performance. We are moving towards the mantra of if it’s good they will come. New emotional ties will be developed with these private label brands and mainstream brands will have to try harder to retain that emotional connection that sacrifices price for perceived value and differentiation. Since private label brands are now about more than simply price, there is emotional resonance and loyalty.

The good news here is that the renewed acceptance of private label brands will push mainstream brands to keep it honest and to stay on the forefront of innovation in order to justify price differentials. This increased competition for share of wallet and mind will ring with greater authenticity and values for consumers.

Creativity was celebrated throughout the first week of April in Geneva during their annual International Exhibition of Inventions. Inventors from 45 countries around the world showed up with hopes of having their inventions picked-up by investors/ manufacturers.

Some of the featured inventions included spring-loaded high heels which act as tiny shock absorbers to make walking more comfortable, a totally “hands free” computer mouse, an electronic device which protects infants from sudden death during sleep, as well as a watch the can shoot out pepper spray to evade attackers (or can be filled with medicine cartridges for asthmatics).

It’s been said that recessionary periods inspire creative thoughts. Makes sense considering we must learn to do more with the same or even less resources than before. In fact, many products we are familiar with today were actually created during the Great Depression. A few of these inventions that have withstood the test of time include:

• Electric Dry Razor (1929) Jacob Schick, an army vet, was tired of lathering up to shave in the  frigid temperatures of Alaska, where he was gold mining so he developed a way for a dry shave

• Supermarkets (1930) King Cullen Supermarket which opened in Queens, NY was the first to offer a large layout, variety and discounts all under one roof

• Cotton Tampon (1931) Although tampons have been around since at least ancient Egyptian years, Dr. Earle Cleveland Haas was the first to develop cotton tampons based on the cotton plugs used during surgeries

• Laundromat (1934) So many couldn’t afford the luxury of an electric powered washing machine at the time so J.F. Cantrell, realizing this, bought four machines and installed them in the same building and then charged customers by the hour to use them

• Chocolate Chip Cookie (1934) Was “accidentally” created by Ruth Wakefield, owner of the Toll House Inn, a very popular Massachusetts restaurant. (The story of their creation varies)

• Monopoly (1935) The most played board game in the world as well as the most commercially successful board game in US history

I wonder what life changing inventions will be born out of our current economy?  Will shock absorbing stilettos be the hot new item? or the spraying James Bond-like watch?  I’m not so convinced that these products possess that same “timeless quality” as those outlined above but I guess only time will tell.

Somebody is reading too many blogs written by the wrong people because there have been so many rumors about the impending death of television ever since people began getting the internet in their own homes. The word “convergence” became popular in the 90s and while it isn’t being used all that much anymore, a lot of ink and many more electrons have been spent on how everyone is watching more online video than TV programs.

As George Bernard Shaw might say, Poppycock and balderdash.

The latest Nielsen reports indicate that people of all ages are watching more television rather than less. In Q4 2008 monthly hours for traditional television viewing averages at 151, with age variances. This is a 3.4% increase Q4 2007. DVR playback time has also increased a whopping 24% but…. only from 5.5 to 7.2 hours. Internet video streaming and mobile device viewing are even smaller percentages of the total:

**Includes home and work.

Traditional television viewing – live as it airs – hasn’t died and it won’t as long as there are programs that demand immediate or ongoing attention. Recent Nielsen reports point to the low DVR playback rates of competition programs, sports, and news and Spanish-language novelas, the latter of which claims only 2% of its viewers via DVR. If all these viewers were migrating to their computer screens to watch their programs, there would be far fewer large screens being sold and a substantial decline in cable and satellite penetration.

This is also not happening due to media multi-tasking and what Mike Bloxham of Ball State University calls “platform promiscuity.” People are using the different screen media for different content and only 3% of all online adults would want to disconnect their cable or satellite services to watch video exclusively online. At this time you can’t browse the internet and watch a Frasier episode on the same screen; those who remember WebTV will recall how slow the experience was. How much better is it to surf on a separate screen for information while watching Discovery’s Shark Week on one’s TV screen which would be larger and probably have better speakers?

Computers and mobile devices are typically used for video snacks like YouTube clips, news, and sports updates rather than entire entrees like full TV episodes or movies. According to comScore, mobile devices are often used during otherwise idle time spent away from home: 25% of users view content in between other daily activities, like commuting or standing on line at the post office. Long-form viewing is not currently practical due to the inability to pause and resume, but why would anyone prefer to watch a movie in 5 or more segments during the course of the day?

Event films and major sports events like the Super Bowl will never be viewed this way. Super Bowl and Oscar parties are now a well-established American tradition and some classic films will still be shown on their regular holiday schedules each year for family viewing. Media Nerd isn’t religious, but would regard viewing The Ten Commandments on a tiny screen as nothing short of media sacrilege.

So the next time you read about the imminent death of commercial television in relation to any other media use, ask yourself who and what you’re reading. Unless the article is quoting actual statistics by reputable researchers, regard it as the author’s opinion… or wishful thinking. Movies didn’t die when television arrived on the scene; they merely evolved to better differentiate themselves and their related experiences. Television is now facing that challenge and it has too much invested to not meet it.

Although the economy is looking pretty grim these days, consumers’ satisfaction levels are actually on the rise.  And amongst the happiest of this group- retail shoppers.  Last quarter the ACSI (American Customer Satisfaction Index) recorded its first increase in well over a year!

Where’s the sale?

Well… just about everywhere from Wal-Mart to upscale boutiques on Rodeo Drive (who, by the way, swore they would NEVER offer discounts because that doesn’t sit well with their image) are regularly marking down products by as much as 80%.  One such boutique owner recently sold $1800 shoes for $245 a pair even though they cost her $800.

Can I have your email address?

Giving out my address was once a very selective process in which few made the cut. I was almost annoyed when cashiers would ask for it at the check out.  Now?…I’m on the mailing list to basically every store I shop in and my inbox is flooded with coupons! And they are actually useful and offer substantial savings most of the time, which keep me happily going back for more.

The Customer is always right

So what about the days when you walk into a store and employees are on their cell phone or chatting with a group of friends and they actually get pissed when you interrupt them for some help. (I’m sorry I thought you were there to WORK)  Those days, for the most part, are a thing of the past.  Employees are actually scared of losing their jobs.  It’s understood that they can likely be replaced with ease. And as a result customer service is priority.

For many shopping has served as a form of therapy in relieving stress.  And now we don’t have to feel quite as bad about handing over our hard earned cash.  Stores are really fighting to keep us coming back.  They are offering more incentives and more personalized attention.  Considering all of the above it makes plenty of sense that we as consumers are now happier in our shopping endeavors.

This article appears in adweek, for the full story, click here:

As marketers struggle with this recessionary economy, history might be able to provide a lesson or two in terms of how to survive and create opportunities for growth. Our president-elect purportedly is looking back at history, including Franklin D. Roosevelt’s management of the Great Depression, for inspiration to deliver on his winning “change” proposition. And while FDR might have a few lessons for Obama, I also think there are some strong reasons why your brand should take a look at our thirty-fourth president for tips.

The current economic crisis with its near collapse of the financial markets and consumer sentiment is the type of perfect storm that comes once every century or so, making it normal for us to look back at the handling of the Great Depression for guidance. That watershed moment in our nation’s history also witnessed a near collapse of our economic system as well as the public’s trust, allowing FDR to motivate the country around his winning 1932 campaign proposition of a “New Deal.”

What made the New Deal unique and noteworthy was the acknowledgement that the tough circumstances facing the country required a drastic reassessment of how things were done, primarily through stronger government intervention. And while the New Deal’s basic tenets provide eternal fodder for the rich and heated debate around our government’s role in the economy, its lasting impact is with us today.

I propose that, despite the economic and political interpretations of the program and its merits, we look at its key lesson of FDR’s government reengineering to address what is undoubtedly a new day in consumer perception and, hence, in marketing

This article appears in adweek, for the full story, click here:

Many fashionistas talk about the stimulating and soothing effect of shopping when one is not feeling too fancy. The ladies in “Sex in the City” have become the ultimate symbols of this state of mind. But what happens when the carefree shopper is hit with a not so light case of dwindling disposable income and credit, as is currently the case across America. How should retail brands respond when people start putting the breaks on how much they are spending for clothes? It seems the fashion and retail categories need some retail therapy of their very own.

While a recession is not good for anyone, the limitations it engenders can motivate brands to become more focused on what they provide their consumers. By weathering the storm with a smile, a touch of class, and a lot of ingenuity, retail brands can fuel an evolution that will take them to new heights once recessionary waters subside. So retail brand managers: stay positive that better times will return, and in the meantime, work to find more creative and nuanced ways to connect with shoppers.

One of the most important lessons to remember when selling during a recession is that this unique confluence of economic variables presents a good time to remind your consumers about your unique value proposition. By doing so, you dispel the uncertainties of a recession, with the certainty of choosing the right brand for them.

continue reading “Retail Therapy for Recessionary Times”

As marketers continue the uphill struggle to ignite consumer spending during this recessionary economy, not everything should be gloomy. Recessions have historically instigated certain business corrections that fuel innovation and creativity.

Additionally, many of the brands that have weathered the test of time have been those that continued business as usual during rough times. They took advantage of their competitors’ retreat and invest to extend their market share. To a certain degree, that’s when leaders are made to last.

Many brands are looking at international markets. There are also some golden spots at home. A unique opportunity currently exists to increase the investment in the Hispanic market, which constitutes a domestic emerging market.

Here are some reasons why you should engage the Hispanic market:

• Already at 15% of the population, the nation’s largest minority is fueling over half of the population growth during the next ten years
• The Hispanic population is also, on average 10 years younger, allowing you to also make a strong impact in seeding market share with both a current and future consumer base
• Hispanics are perfect for pilot marketing programs. They are more centralized geographically and with least costly consumer acquisition costs including media, it’s more practical to engage them then other groups.
• On average, the average Hispanic family is bigger and is supported by a larger extended family allowing them to lend a hand to jointly manage difficult budgets as a result of the economy.
• Focused on quality as part of their
• Finally, U.S. Hispanics, strongly connected to their home countries, can also serve as a gateway for international expansion into emerging markets such in Mexico and South America.

So. Go ahead and say “que tal” to this local emerging market.

As the economy doldrums set in and few Americans can afford the luxury of that new car, computer upgrade or even that new flat screen TV, it’s the little things that we will rely on to make us happy. It’s a special lunch at our favorite place, a latte indulgence that feels like a hug. It’s Pizza and a movie. It’s take out or a drive-through pick up.

Euripides said: “When a man’s stomach is full it makes no difference whether he is rich or poor.”

This may explain why, although most consumer spending is down, the NRA forecasts that snack and non-alcoholic beverage shops including McDonalds, Starbucks, Dunkin’ Donuts and Jamba Juice, are expected to post growth. And while most retailers are down, Walmart and Costco are posting growth. Surely this must have something to do with their reasonably priced grocery departments.
So, how can we up-sell this concept while ensuring consumers will continue to see value in the experience and in the time and energy saved by dining out?  Here are some simple truths that may go a long way to providing that “extra value’ customers are seeking.

Pamper your customers.
When times are tough and winter is coming on in more ways than one, we all have a basic need to be pampered and taken care of.  This is fulfilled when one dines out, no matter how simple the experience may be. Now would not be the time to skimp on quality of the product or cleanliness of the store. Details like courtesy, greeting your customers by name, overall atmospheric warmth and free samples can go a long way to making them feel welcomed.

Motivate your employees.
Delivering value in an economy where raw food costs are going up, and prices are not, is a tough prospect any way you look at it. Many restaurant and franchise owners are asking how to best build morale when they can’t give their staff a raise or worse, they have to ask them to take a cut. continue reading “Salty Satisfaction. It keeps us happy.”