Hispanic shoppers represent a huge, untapped opportunity for many CPG manufacturers and retailers to gain incremental revenue. An IRI analysis revealed that a $1 billion CPG brand investing more heavily in marketing to Hispanic shoppers can gain an incremental $71 million in annual revenue. Unfortunately, ineffective data analytics techniques, such as “general market” mix models, have led marketers astray by underestimating the impact of Hispanic-focused media campaigns.
Here, IRI outlines the market opportunity available to decision makers who focus effectively on Hispanic shoppers. We detail the challenges facing marketers using inaccurate analytics solutions, and highlight the concept of a Total Market Strategy (TMS) approach, espoused by IRI partner Latinum Network.
A TMS approach encourages marketers to consider all U.S. shoppers as part of a large shopper “pie,” of which Hispanic consumers are one slice. This approach replaces the outdated strategy of marketing to a “majority” group of shopper and then duplicating efforts to one or more “minority” groups, such as Hispanics.
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