Director's Note: Going Mainstream

I promise not to use any Spanish words or phrases in this article.

It may be safe to say that targeted marketing to Hispanics has finally gone mainstream as a standard component of the marketing plan. For years, it's been more of a novelty, a forward-thinking topic for industry conferences and a fun angle for trade publications (which invariably will "cleverly" use a Spanish word in the headline.) But it hasn't been something most marketers felt compelled to do unless their customer base skewed toward Hispanics. (Think H-E-B on the retailer side, Mott's Clamato on the brand side.)

At the Food Marketing Institute's annual trade show this month, Unilever unveiled research on Hispanic shopping behavior, Kellogg devoted its entire booth to Hispanic-targeting initiatives, and Hispanic-focused food vendors made a big splash (thanks in large part to their strategic use of Latin music and Latina samplers).

Wal-Mart chief marketing officer John Fleming recently cited the growth of the Hispanic population as one of five key consumer insights his chain must address. Its efforts include unique food offerings and expanded baby departments in at least 350 stores serving large Hispanic communities, and a Hispanic-media budget that has doubled in the past two years.

Another sign that Hispanic marketing has gone mainstream is that the learning is getting deeper, as Unilever's study attests. Marketers no longer are making their signs bilingual and calling the campaign "multi-cultural." (Spanish signage is "necessary, but not sufficient," according to Mike Twitty, Unilever's research guru.) A full understanding of Hispanic shopping behaviors -- along with the cultural and socio-economic norms driving them - is required to reach this group in a meaningful way, because they behave differently than the general populace. (As an example, Kellogg says that display support for Special K cereal is more important for reaching Hispanics than it is for the general market.)

Of course, the same can be said of in-store marketing in general, which overall is emerging as mainstream marketing. And that means the simple strategy of negotiating for chain-wide feature and display support is starting to look archaic. Stop & Shop chief marketing officer Stephen Vowles recently called the concept of "the average shopper" a myth while explaining his company's views on shopper segmentation.

When Giant Food chief executive Tony Schiano talks about retailer-vendor collaboration, as he did last month while keynoting the In-Store Marketing Summit, he doesn't mention BOGOs or sweepstakes or lobby spectaculars. Instead, he talks about mining shopper data to develop customer "solutions."

Someone who thinks in those terms doesn't consider shelf talkers or price promotions to be the essence of in-store marketing -- or bilingual signage to be the pinnacle of Hispanic targeting.

So welcome to the mainstream.

Peter Breen
Managing Director, Content
In-Store Marketing Institute

Members: More information here.

Desktop Marketing Conference: "In-Store Marketing: It's All About Solutions" by Tony Schiano of Giant Food Stores

The basic goal of retailers and product manufacturers alike is to "sell more stuff," according to Tony Schiano, ceo and president of Giant Food Stores. But the strategies required to achieve that goal are no longer simple. In his keynote presentation from April's In-Store Marketing Summit, Schiano explains how Giant Food is rethinking its stores to offer shoppers not just products, but solutions to their lifestyle needs. He also outlines the various programs for which Giant encourages vendor collaboration.

Members: Watch the lecture here.

Research: "Winning the Hispanic Shopping Trip: A Unilever Trip Management Report"

Retailers who don't see a need to address the growing ranks of Hispanic residents today may be in for a rude awakening tomorrow. A new study from Unilever finds significant differences in the shopping attitudes and behaviors of Hispanics in comparison with the general U.S. population, and offers numerous ideas on how to address those disparities.

Members: View the research here.

Research: Information Resources Inc.'s New Product Pacesetters 2006

Products offering the promise of slimmer waistlines, smoother skin and cleaner homes topped the lists of best-selling new products in 2005, according to IRI's annual report. As in prior years, the report features both line extensions that simply leverage an existing platform and entirely new concepts that have the potential to redefine categories. Valerie Skala Walker, IRI's vp of analytic product management, offers a look at the trends behind the sales data in a presentation from the company's Reinventing CPG Summit in February.

Members: View the research here.

Case Studies: The Promotion Marketing Association's 2006 Reggie Awards

Best-in-class promotions often give brands both a strong platform for reaching consumers and an effective vehicle for in-store overlays. With gratitude to the Promotion Marketing Association, the Institute presents 18 case studies of best-in-class retail promotions from the association's 2006 Reggie Awards competition.

Members: View the article here.

Welcome New Institute Members

The In-Store Marketing Institute is delighted to welcome new and renewing members to the Institute family. Below is a list of the companies that signed up recently. Welcome aboard.

• Alliant Techsystems
• BEN Marketing Group
• Cavendish Produce
• Chute Gerdeman
• Coca-Cola
• Coles Myer Ltd.
• Consortium Companies Inc.
• CounterPoint
• Del Laboratories Inc.
• Digital Cement
• Expanscience Laboratories
• Flower City Printing
• GMR Marketing
• Heineken USA
• Keter Plastics Ltd.
• Mediaedge:CIA
• Meyers Display
• New Customer Service Companies
• Omnicom Management Services
• Orlando Sentinel Communications
• PromoShop Inc.
• Solutions Group Ltda.
• Staples
• Sunkist Growers Inc.
• The DNI Marketing Group
• The Solution Partnership
• TLP - Tracy Locke Partnership
• Wal-Mart Stores Inc.