Facts & Trends: Restoring Hispanics’ Brand Loyalty in National Brands

Sales of private label, or store brand, products have steadily increased over recent years, in part due to the recession and its effect on the lives of Americans. In 2008, the private label dollar share increased from 16.1% to 16.9%, followed by a rise to 16.9% in 2009 and 17.2% by June 2010, according to recent reports (1). Not only indicative of millions of dollars in sales, the statistics also reflect the consistent and steady gain in share that private labels have taken away from national brands. Prior to the recent recession, there was a common understanding among marketers, supported by highly-regarded research, that Hispanics were more brand loyal than other segments. A loyalty index showcased a three point difference of 26 to 23 of Hispanics compared to mainstream consumers (2). Additionally, consumer research concluded that the less acculturated the Latino consumer, the more likely he/she would remain to a brand. Research also indicated that Latino shoppers show greater affinity to brand names within high personal involvement categories, such as OTC medications, some specific house cleaning products and dairy and bakery (2), (3). However, when the recession hit, along with most other segments, U.S. Hispanics’ adopted more conservative spending habits (4). In 2010, the share of private label products in the grocery baskets of Hispanics was an estimated 31% (5), compared to a national share 23.1% (6). National brands began experiencing dips in sales and started to question the previous industry consensus of Hispanics’ strong brand loyalty. “The noted trend is that marketers today should assume that Hispanics have shifted their loyalty to private labels,” said Jim Legg, executive vice president of leadership and innovation. “National brands need to engage in stronger retail promotion strategies in 2011 to efficiently counteract their declining share, and win back the loyalty of Hispanic consumers.” Many U.S. brand teams have bought into the myth that Hispanic consumers do not respond to retail promotions. The reality is that when properly executed, Hispanic retail promotions can out-perform general market initiatives....

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The San Jose Network, Ltd. Celebrates 14th Annual Conference

The San Jose Network, Ltd. (SJN), the largest marketing communications group serving clients in multicultural convergent markets within the U.S. and Latin America, hosted its 14th annual conference at the offices of network affiliate, The San Jose Group, on May 5-6 in Chicago, IL. With the theme of “Advertising Today: Trends and Innovations,” seasoned advertising leaders were brought together to collaborate on traditional and digital marketing innovations at both strategic and tactic levels. Chairman and founder of SJN, George L. San Jose, welcomed representatives from agency affiliates including Giacometti & Associates, ERC Group and Ad Mark. The conference also featured Peter Gerritsen, president of TAAN, the leading global independent agency network. SJN and TAAN have a global alliance with a significant footprint of expertise that spans every continent, including a combined network of 83 offices in over 49 countries and a presence in 90 markets. Leading the conversations during the two-day conference were keynote speakers Joe Cappo and Peter Prestipino. Cappo, an award-winning journalist, industry veteran and author, addressed attendees about the past as it relates to the future, particularly the post-television age. Prestipino, editor-in-chief of Website Magazine and author of Web 360, the Fundamentals of Web Success, wowed attendees with his website and analytical expertise through his “12 Minutes to Web Success” seminar. “Each annual SJN conference is as an invaluable knowledge-sharing forum for our agency partners to discuss their depth and breadth of experiences,” said George L. San Jose, chairman and founder of SJN. “We all walked away with great new insights about upcoming technology and how we can incorporate it into our existing marketing communications programs.” The San Jose Network, Ltd. (SJN) is the largest independent marketing communications network serving clients in multicultural convergent markets within the U.S. and Latin America. Made up of best-in-class, independently owned agencies, SJN offers clients access to local expertise in 18 countries via a centralized management approach. For more information, visit...

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Gift of Hope Organ & Tissue Donor Network and San Jose Public Relations Win Gold and Silver

For the second consecutive year, the Publicity Club of Chicago has honored Gift of Hope Organ & Tissue Donor Network for its community outreach and media relations efforts in the Hispanic market. Together with San Jose Public Relations (SJPR), its multicultural public relations agency of record, the not-for-profit organ procurement organization was recognized with two awards: the Golden Trumpet for the National Donate Life Month campaign, as well as a Silver Trumpet for its campaign for National Donor Sabbath. “There is an urgent need for people, particularly Hispanics, to donate and register with the state organ and tissue donor registry. The main goal of our efforts in the Hispanic community is to debunk the myths and misconceptions through education about the donation process,” said Raiza Mendoza, Hispanic Outreach Coordinator for Gift of Hope. “Once they know the facts about donation, their response is positive and generous. The successes of these two campaigns, and the recognition of the Publicity Club of Chicago, are true triumphs for our organization.” Each April, Gift of Hope celebrates National Donate Life Month, dedicated to recognizing the generosity of organ and tissue donors, their families, transplant recipients and the healthcare professionals who enable the gift of hope through donation and transplantation. SJPR employed a six-week community outreach and media relations campaign to increase the number of registered Hispanic donors, and to dispel common myths about organ donation, particularly that diabetics and young children cannot be organ donors. A recipient of the PCC’s Golden Trumpet, Gift of Hope’s National Donate Life Month campaign is its most successful to-date in the Hispanic market, achieving unprecedented media coverage and increasing the organization’s goal of Hispanic organ and tissue donor registrations. Gift of Hope was also awarded the PCC’s Silver Trumpet for its National Donor Sabbath campaign that aimed to dispel misperceptions around faith as an obstacle for donation. The month-long program launched in late October 2010, and concluded the weekend of the annual commemoration (Nov. 12-14, 2010). Building upon and establishing new relationships...

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