ALEXANDRIA, Va.—Community, family and food are three high-profile values in many cultures, but they are especially important in Hispanic populations, which are on the rise within the United States. Marketers have seen stats on the tremendous growth and spending power of Hispanic audiences and know that communication fluency is not enough to attract this growing demographic. Marketing to Hispanics must be authentic and inclusive as that group rapidly becomes the multicultural majority, blending cultures and building on the past while creating its own identity for the future, reports Forbes.
These nuances can pose huge challenges as brands seek to grow customer segments, while controlling costs and maintaining scale. Look no further than community, family and food for an enduring gathering place that is ingrained and shaped by the communities in which it is located—the local corner grocery store. The local store is a mirror to indigenous tastes and needs that are often underserved by mass-market outlets. Proximity to home, immediate consumption, speed and convenience are major driving forces for consumers of all ages.
In today’s hyperconnected world of dense urban locations, fast-paced lifestyles and demanding work hours, convenience is the ultimate currency. Small-format convenience stores are tailored for today's on-demand lifestyle, and according to the Nielsen Quest for Convenience Report, they now account for 25% of fast-moving consumer goods sales and 70% of shopping trips.
Hispanics are more likely than other ethnicities to be daily shoppers of convenience stores. Products sold are fast-moving, with 83% of store purchases being consumed within an hour and 65% consumed immediately. Millennials overwhelmingly prefer convenience stores, and 16% visit a convenience store daily. Convenience stores are a fertile marketing ground, drawing high concentrations of Hispanics and younger consumers with high visitation and purchase frequency.
Despite this channel’s significance, there are many marketing shortfalls, especially for independently owned locations, which make up an estimated 64% of the market. Companies uniquely positioned in data and advertising can unlock value at independent, small-format convenience stores to enable marketers to find, engage, understand and create value in this crucial channel with some of the following techniques and strategies:
- Engagement: Checkout is a critical time for consumers, when they formulate final purchasing decisions. They watch the register and are focused on it.
- Adverising is addressable at the store level and is fully customizable.
- First-party information: Use a data-first approach anchored in real-world, real-time, first-party information for continuous feedback, optimization and messaging.
- Dynamic ad insertion is based upon SKU level scan for trial, upsell, complementary categories and mobile retargeting based upon purchases.
In the increasingly competitive convenience landscape, understanding retail measurement is critical in order to track and understand store activity. With the rapid growth of multicultural households in America, companies must consider new strategies to appeal to these consumers and leverage new growth opportunities. Data and insights are essential for ensuring that products and advertising resonate with customers and that retailers better understand their consumers.