The COVID-19 pandemic has started to affect consumer behavior and confidence.Therefore, this week we have prepared a roundup of coronavirus insights. A summary of the most relevant consumer behavior research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
According to recent data by Morning Consult, consumer confidence has drastically fallen in the U.S., Japan, Germany, the U.K., and France. The Morning Consult ICS (Index of Consumer Sentiment) in the U.S. is 108.99 as of March 13, decreasing 0.9% from the day prior and down 4.63% since January 1. This represents the largest single-day drop in over two years. “Consumer confidence drives more than two-thirds of activity in the largest economy, so it can have sweeping effects across sectors,” reports Morning Consult.
Online Shopping Behavior
Predictive retail analytics platform Quantum Metric has published research about the effect of the new coronavirus on e-commerce in the U.S. Online retailers have reportedly experienced a 52% growth rate in online spending during the fifth-eighth weeks of 2020, compared to the same weeks of 2019. These weeks span Jan. 27 – Feb. 23, 2020, the period when the virus started spreading rapidly from Asia. In addition, online conversion rates rose 8.8% year-over-year during those same weeks in 2020.
According to Adobe Analytics‘, which tracks sales of 80 of the top 100 online retailers in the U.S., online sales of items like hand sanitizers, gloves, masks and anti-bacterial sprays soared 817% in January and February compared to the previous year. Consumers are also buying more drugs and non-perishable items: sales of cold, cough and flu products went up 198%, pain relievers jumped 152%, toilet paper grew 186% and non-perishable goods such as canned goods went up 69%, all compared to the same period last year. The same is happening in physical stores; for instance, Walmart will be reducing open hours to be able to restock.
General Attitudes and Spending
Internet media company Travelzoo has conducted a survey among U.S. consumers to learn about their travel intentions. Among the survey’s main findings, Travelzoo announced that astute travelers are still eager to travel both internationally and within the U.S. In spite of current concerns, many of them recognize now is the time to take advantage of remarkable travel deals. In fact, 44% of respondents stated the coronavirus hasn’t changed their interest in international travel. However, 36% of respondents said the coronavirus has impacted their planned international travel. Among those participants, 59% are considering selecting an alternate destination, postponing the trip or canceling the trip.
Seattle-based payments processing company Gravity Payments notes there has been a dramatic drop in spending around Washington in the past three weeks. “Just this week we started analyzing the data and found an overall 10% drop in business in Washington State (concentrated in the Seattle metro area),” writes Brooke Carey, a company spokesperson. The largest drops have been in hotel spending (down 56%), movie theaters (46% down), liquor stores (-31%) and restaurants (-29%.)
GlobalWebIndex has shared recent coronavirus insights. Currently, only 20% of survey respondents are concerned about the impact it will have on their personal finances (dropping to 12% among Gen Zs). Almost 90% of Gen Zs have made changes to their daily routine, dropping to 75% among baby boomers. Some 40% are reading the news more frequently in order to stay up-to-date, compared to just over 25% checking social media more frequently. Increased news checking is fairly consistent across generations, while checking social media more frequently drops dramatically among baby boomers. A quarter say they’re now shopping more online in light of the virus. Millennials (39%) are much more likely than any other generation to say this, followed by Gen Xers (29%). Higher-income individuals are also significantly more likely than lower earners to say this (48% vs. 15%, respectively).Check out:How will coronavirus impact marketing?
Mazda’s CMO has resigned, UPS has named a female CEO, and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Mazda’s CMO Resigns
Mazda‘s CMO of North American Operations Dino Bernacchi has resigned effective March 20. While the company looks for a permanent replacement, Brad Audet, leader of Garage Team (Mazda’s bespoke agency), will lead the marketing team. Bernacchi became Mazda’s CMO of North America in 2017 after almost eight years as Harley-Davidson’s Marketing Director.
UPS Has Named a Female CEO
United Parcel Service Inc. has announced the appointment of former Home Depot CFO Carol Tomé as new CEO, effective June 1. She will replace 46-year UPS-veteran David Abney, who will remain as Executive Chairman of the Board until his retirement from the UPS Board on September 30. Mr. Abney will remain as a special consultant through the remainder of 2020 to help ensure a smooth transition through the peak season of the business.
And More Changing Places
Jimmy John’s has announced that Darin Dugan is the company’s new CMO. Dugan will oversee brand marketing and planning, menu and new product development, advertising and digital. He will report directly to Jimmy John’s Brand President James North. Dugan previously served as VP of marketing for Sonic Drive-In, also part of the Inspire Brands portfolio.
The Interactive Advertising Bureau has named David Cohen as President, a position held by Patrick Dolan since 2017. Dolan’s departure was announced in December. Cohen joins the IAB from MAGNA North America, where he held the title of President until July. He will report directly to IAB CEO Randall Rothenberg.
Brian Lesser, CEO of AT&T’s advertising technology unit Xandr, is stepping down from the role. Lesser first joined AT&T in 2017 and was previously CEO of GroupM North America. Lesser also founded Xaxis, an ad technology company. Kirk McDonald will take the role of interim CEO of Xandr.
New marketing director for Uber, promotions at PepsiCo & more changing places Latam. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places Latam here.
New Marketing Director at Uber
Uber has announced the arrival of Felipe Burgaz, who will take on the role of Marketing Director, Latin America. He has three decades of experience in the technology, CPG, and beverage industries, and he’ll be in charge of promoting Uber’s products and services in the 15 markets where it is present. Burgaz previously served as Marketing Director for the Mexican region at Amazon.
Promotions at PepsiCo
PepsiCo has promoted Ricardo Arias-Nath from SVP / Chief Marketing Officer & GM Beverages Latin American Markets to SVP / Business Strategy and Transformation, Chief of Staff, Latin America. He first joined the company in 2008.
In addition to Ricardo’s promotion, colleague Eric Melis, previously Sr. Marketing Director, Carbonated Soft Drinks Category, Latam Region, has announced a new role at PepsiCo. He is now VP, Marketing, PepsiCo Foods, Central America, Caribbean & Southern Cone.
And More Changing Places Latam
Payment solutions company Ingenico Group Mexico has tapped Rodrigo Islas as its new Marketing and Communication Manager. He previously filled the role of Brand Manager at American Express Mexico.
The Coca-Cola Company has promoted Constanza Flores to Senior Director, Fanta Latin America. She first joined the company in 2009 as Knowledge & Insights Director, South America, and most recently served as Marketing Director, Sparkling Beverages, South America.
Hulu has a new president, Bacardi names CMO for Patron and Grey Goose, and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Hulu’s New President
Disney’s Hulu has promoted CMO Kelly Campbell to President. In this role, she will oversee Hulu’s marketing efforts, including subscriber growth, brand, content, B2B marketing, creative development, research, and insights.
Bacardi Has Stolen a Diageo Marketer
Bacardi has tapped 12-year Diageo veteran Kathy Parker as CMO for Patron tequila and Grey Goose vodka. Parker will be in charge of global strategy and will report directly to CEO Mahesh Madhavan, though working close to Global CMO John Burke.
And More Changing Places
Pizza brand Marco’s Franchising, LLC. has promoted Vice President and CMO Steve Seyferth to Senior Vice President and Chief Experience Officer. In his new role, Seyferth will handle every step of the consumer journey. He will continue to oversee all marketing activities.
SodaStream USA has announced the arrival of Matt Kahn as its first-ever CMO. His mission will be to turn the company into a “billion-dollar brand” in America alone. He previously filled the role of EVP, Marketing at fitness drinks company Celsius Holdings. PepsiCo is reportedly trying to use the recyclable products trend to expand the brand’s reach throughout the U.S.
Lyle Schwartz, who has worked at GroupM for 37 years, will be leaving the company at the end of the month. Most recently, he filled the role of Chief Integration Officer, GroupM U.S. In that role, he focused on developing advanced cross-channel implementation practices. Schwartz’s work was key to the development of the C3 TV ratings currency in 2007, which measures average rating for commercial time during programs
Consumer confidence has increased in Colombia and Peru, Mexican users are overwhelmed by banking service options and more consumer insights. A summary of the most relevant consumer behavior research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous Latam consumer insights roundup here.
Retail Marketing firm in-Store Media México has found that 62% of Mexican consumers take the environment into account during purchase decisions. In fact, these shoppers would rather shop at supermarkets or stores that actually care about protecting the planet. The trend also shows consumers’ interest in finding new brands that are committed to the environment at least to a degree.
However, only 12% of Mexicans recycle all their plastic waste, has found an annual survey by American plastic-based packaging company Hi-Cone and YouGov. Over 5 thousand consumers participated in four countries: Mexico, Spain, U.S. and U.K. While 12% of Mexicans recycle their plastics, this is true for 26% of Americans, 38% of Spaniards, and 45% of Brits interviewed. Finally, 11% said they do not recycle any plastics.
According to a Global Report on Consumer Confidence by The Conference Board and Nielsen, consumer confidence suffered a slight decrease in Latin America, from 92 points in Q3 2019 to 91 in Q4. However, it increased in Colombia, going from 99 to 102. Chile had the lowest index at 67, Mexico dropped from 98 to 90, and Peru went up from 92 to 97.
ICT company Fujitsu‘s global survey “Technology and the New Banking Customer” shows 39% of Mexican finance service users believe the amount of available solutions is overwhelming. In addition, only 33% of respondents believe their bank understands their needs. Two-thirds of consumers (66%) said they plan to reduce their number of bank services providers to one over the next 5 years.
Marketing and media moves at NFL, Meredith, and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Marketing and Media Moves
The NFL has hired Luis Martínez Wagner as its new Senior Director of Sales and Marketing, reported AdLatina. He previously led marketing at Hasbro Mexico, a company he first joined in 2012.
Meredith Corp has announced that General Electric veteran Jason Frierott will fill the role of Vice President as well as replace Joe Ceryanac as Chief Financial Officer. Frierott will take on his new role on March 9 and report to CEO Tom Harty.
Thomson Reuters Corp. has announced a number of management changes. Most importantly, former Nielsen Holdings PLC President and Chief Operating Officer Steve Hasker will take on the role of CEO and president. In addition, Mike Eastwood will fill the role of CFO. Both changes are effective March 15.
Automotive aftermarket company Driven Brands, which includes Maaco, Meineke Car Care Centers and Take 5 Oil Change, has named Summer Nunn as its first-ever female CMO. Nunn first arrived at Driven Brands five years ago. She most recently served as Marketing SVP for Take 5 Oil Change.
Teylez Perez is now Vice President of Marketing at Curacao. He first started at the company in 2008, but left in 2017 to fill leading marketing positions at Lionsgate and Hyphen-Studios.
Leonor Palao has started a new position as Vice President, Brand at J.P. Morgan Asset Management. She previously filled the role of Assistant Vice President, Brand Marketing and Advertising at OppenheimerFunds.
Telemundo 47 / WNJU announced the addition of journalist David Rodriguez to the station’s news team. Rodriguez will co-anchor the 5 PM weekday edition of “Noticiero 47 Telemundo” and also work as a general assignment reporter, regularly appearing on the 11 PM weekday newscasts.
New CEO for LALA, marketing appointments & more changing places Latam. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places Latam here.
Mexican milk company LALA has announced that Arquímedes Celis Ordaz is officially staying as CEO, a position he filled tentatively after the exit of Mauricio Leyva in December 2019. His main responsibility right now is to reassure the company’s investors after a 3% drop in value since December 2018.
Citroën has hired Valère Lourme as Marketing Director for Argentina. She previously led marketing, communications and customer satisfaction at Volvo Group. She has also filled important roles at Renault Trucks and Total.
Customer experience solutions company Alorica Inc. has announced that Brian Delaney has joined the company as President of Alorica’s Latin America & Caribbean Operations. In this role, Delaney will oversee 15,000 employees across seven countries in which Alorica operates.
Tech firm Ricoh has promoted Kristal Piccolo to Senior Manager, Product Marketing Strategy, Latin America, reported AdLatina. She first arrived to the company in 2009. Previously, she worked for IBM Venezuela for three years.
AB InBev has promoted Pablo Firpo from VP of non-alcoholic beverages for the Rio de la Plata region to President of the same category in Brazil. He has been with the company for 18 years.
Agency Moves, Disney Channel out of a top marketer and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Dentsu Aegis Network has promoted Michael Epstein to CEO of media brands and product, Dentsu Aegis Media. Epstein will now be accountable for the Carat, iProspect, Vizeum, dentsuX and Posterscope media brands. He will continue to report to Peter Huijboom, Global CEO, Dentsu Aegis Media.
WPP’s Wunderman Thompson has announced that Chairman Tamara Ingram is departing the company after 17 years, reported Ad Age. Ingram will be moving into a non-executive chair role before leaving to pursue philanthropic work.
Mcgarrybowen has promoted Jamie Shuttleworth to U.S. Chief Strategy Officer. Previously Shuttleworth was CSO at the agency’s Chicago office. Shawna Ross, formerly executive vice president of strategy, will succeed Shuttleworth in the Chicago CSO role.
More Changing Places
John Rood has left the position of Global Head of Marketing at TheDisney Channel. Rood had held the role since 2016. He previously filled the role of SVP and head of Marketing, ABC Family from 2004-10 and Executive Vice-President at DC Entertainment, Warner Bros between 2010-14.
Margaret Chu is Vox Media’s new Chief Financial Officer. Previously, she served as Executive Vice-President of Corporate Strategy and Development at Horizon Media.
Millennials and Gen Z consumer’s digital marketing and retail expectations, real estate market rising and more consumer insights. A summary of the most relevant consumer behavior research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
Millennials and Gen Z Consumer Insights
TotalRetailsurveyed 900 U.S. consumers aged 18-64 to find out their digital marketing expectations. Overall, shoppers agree that personalization is desirable, but those aged up to 34 believe it is a requirement. Millennials and Gen Z consumers accept ads as part of browsing online, but they’d rather they were personalized (46.7%). Nearly 40% recall clicking on an ad before making a purchase.
“The Future of Unattended Retail”, a study by Pymnts and USA Technologies, has found that millennial and Gen Z consumers would shop for unusual items at unattended channels such as vending machines and kiosks. According to the study, 35% of millennials and 29% of Gen Z would be willing to spend more on non-traditional products offered through those channels. As for categories, 82% said if they would buy health items, and 64% would purchase beauty products from a vending machine or kiosk.
According to a report by Bloomberg, the real estate market has experienced a recent surge it hasn’t seen in years. Home sales increased 34% in January, reaching the highest point for January since 2012, according to a survey by John Burns Real Estate Consulting. Factors contributing to this surge are mainly “consumer confidence, job growth, strength in the stock market and a dip in mortgage rates”, Rick Palacios Jr., director of research for the real estate consulting firm, told PYMNTS.com.
A research report on news consumption from the Danish research group AudienceProjecthas found that 68% of Americans use online news sites on a weekly basis, with 37% calling online their main source of news. However, only 13% of consumers say they are currently paying for news content. That compares to 38% of news consumers in Norway and 20% in Sweden who currently pay for online subscriptions. Moreover, the percentage of Americans paying for online news has fallen by 2% since 2017.
A POLITICO/Qualcomm global survey shows that people are worried about how the next-generation wireless technology could worsen privacy issues. In the U.S., only 21% of consumers surveyed would accept lower privacy standards in exchange for super-fast speeds. But consumers in China (64%), India (64%) and Brazil (61%) expressed much greater enthusiasm towards 5G.
This week, Starbucks’ CMO is leaving and Nextdoor is welcoming a new top marketer. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
New CMO’s For Nextdoor and Starbucks
Neighborhood-focused social network Nextdoor has hired former global CMO of Hyatt Hotels. Maryam Banikarim, who left Hyatt in May 2018, will resume the role of CMO at the San Francisco-based company. In her new role, announced today, Banikarim will also be tasked with managing Nextdoor’s communications and policy teams.
Starbucks has announced that CMO Matthew Ryan will step down from the role in March. Brady Brewer, Senior Vice-President of Digital Customer Experience, will replace him. Brewer has filled a variety of roles in the company since he joined 19 years ago.
Estrella Media, previously LBI Media, has announced that industry veteran Eddie León, Executive VP, Radio Programming, will look after the company’s 17 U.S. radio stations. His oversight also includes the Don Cheto Radio Network, home to the syndicated morning show “Don Cheto Al Aire,” which is based at the company’s regional Mexican “Que Buena 105.5” KBUE Los Angeles.
Vanessa Claudio has joined Telemundo’s afternoon gossip show “Suelta la Sopa” as co-host, has reported Media Moves. Originally from Puerto Rico, this is her debut on U.S. Hispanic television.
This week, Saint Valentine’s Day insights, interesting TV data, and more. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here.
Saint Valentine’s Day Insights
Four out of ten Mexican consumers said they intended to make a purchase online for Saint Valentine’s Day. Almost two thirds (60%) planned to make purchases both on and offline, and only 14% intended to get something at a physical store. The research, by the Mexican Association of Online Retail (AMVO), also found that 40% of consumers expressed they’d spend $351-$500 MXN on gifts for Saint Valentine’s Day. A smaller portion of the population (15%) planned to spend up to $2000 MXN.
Procolombia, an organization that promotes exportation of Colombian goods, has also provided Saint Valentine’s Day Insights. According to their data, the most popular products in Colombia around February 14are (in that order): flowers, chocolate, perfume, lingerie, jewelry, stationery, balloons, and plush animals.
Mexican TV Viewers and Online Shoppers
A recent survey by Mexico’s Federal Institute of Communications (IFT) has found that 72% of Mexicans watch open broadcast TV. According to the study, TV consumption grew by 8% since last year. In fact, 93% of respondents own a TV. The top viewing times for consumers are weeknights and weekend afternoons. Consumer’s preferred categories are news (44%) and movies (40%).
In November 2019, householdconsumption in Mexico grew by 1.1% compared to the previous year. This is according to Mexico’s National Insitute of Geography and Statistics (Inegi.)The most relevant category for consumers was that of imported goods.
According to a recent study about online behavior by InternetMX, ecommerce in Mexico is now worth $299,660 million MXN. This represents a 22% growth compared to the previous year. Additionally, 80% of 83 million Mexican internet users have made a purchase online in the last 12 months.
Yum Brands moves, Facebook expanding AR/VR team and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
ViacomCBS has announced that George Cheeks will replace Joe Ianniello as CEO of CBS Entertainment Group, effective March 23. Cheeks joins ViacomCBS from NBCUniversal, where he most recently served as Vice Chairman, NBCUniversal Content Studios.
Taco Bell Corp. has named Nikki Lawson as its new Global Chief Brand Officer. Lawson, who has spent the past 20 years in KFC, will report to CEO Mark King. Both KFC and Taco Bell are part of Kentucky-based Yum Brands.
Pizza Hut U.S., another Yum Brands company, has named Kevin Hochman, who is also president of KFC U.S., as President of Pizza Hut U.S., according to Ad Age. Hochman has hired George Felix, former Director of Marketing for KFC Global, as CMO for Pizza Hut U.S.
Dunkin’ Brands has promoted Jill McVicar Nelson to Vice-President of Marketing Strategy at the restaurant holding group, parent of both Dunkin’ and Baskin-Robbins.
Facebook has hired former Eventbrite CMO Brian Irving to serve as head of AR/VR Product Marketing. Irving will help promote a range of new initiatives in the sector and will report to AR/VR CMO Rebecca van Dyck.
Disney VS Netflix, consumers’ thoughts about Amazon, and retail marketing insights. A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
There doesn’t seem to be a clear winner in the Disney VS Netflix fight yet. According to a new survey by Piplsay, half of Americans surveyed saidDisney Plus is “as good as” Netflix. On the other hand, 28% said it’s not as good, while 23% said they think it is better. In addition, 37% of respondents said Disney Plus is better than Amazon Prime Video and Hulu. Also, about 42% said Disney Plus is as good as Hulu. Finally, 40% said Disney Plus is as good as Prime Video.
A survey by Convey of 2,000 U.S. consumers indicates a good amount of people don’t really like Amazon but shop there any way to get free shipping. The survey found that 24% of those surveyed had negative views of Amazon’s impact on the retail industry. In a similar way, 27% felt “very or somewhat” negative about the company’s effect on the environment. However, 21% of those respondents who worried about Amazon’s impact on the industry still bought half of their goods on its site. About 24% who thought Amazon’s practices are damaging to the environment also bought half their stuff there.
According to the “State of Consumer Behavior Report 2020” from Raydiant, 69% of respondents said a good in-store experience is either important or very important to them. Almost two-thirds (62%) find store associates helpful. More than half (57%) of respondents said they would go to physical locations for exclusive discounts, but 23% said they would care for unique experiences. More than 68% of respondents searched for a better price online after finding a product at a physical store.
A survey of more than 2,200 U.S. adults from Morning Consult and PRWeek found 41% of Millennials like when brands show their commitment to social causes. However, 39% think companies are trying too hard to make it look like they care. About half (46%) of Baby Boomers and Gen X feel (42%) feel that companies “try too hard”. Finally, 35% of Boomers and 33% of Gen X like brands that “show off their commitment.”
A new report from agency Boston Digital titled ‘How Brands’ Social Media Impacts Consumers’ that surveyed 554 respondents found brands need to be entertaining online. Two thirds (65%) of consumers say they are more likely to purchase from a company they’ve followed for a month. More than half (54%) are ‘very’ or ‘extremely’ likely to look at a company’s social presence while researching a product. However, more than half (51%) said content needs to be relevant to them.
In the era of technology, the winner is the one who adapts faster. Thus, clients are moving their programmatic ad buying in house, as well as looking for media services in big consultancy firms such as Accenture. This results in a need for tech knowledge in ad media agencies who are facing challenges to remain relevant. Learn how Portada Council System’s leading brand marketers and agency executives offer solutions to better adapt to an increasingly demanding technological landscape.
About 30% of marketers were unsatisfied with their agency model in 2018. (Movidiam)
Nearly 80% of the brands that are members of the U.S. Association of National Advertisers (ANA) have some form of in-house agency, almost double since 2008. (ANA)
In 2019, the purchase of creative ad agency Droga5 by Accenture meant adding a creative muscle not normally associated with giant consulting firms. Additionally, WPP announced that it would not participate in pitches audited by Accenture.
Three Tech-Knowledge Challenges According to Portada Council System Members
1. Focusing on Digital Lower-Funnel Can Hurt Traditional Brand Buiding
Related comment: “Consultancies and MarTech companies are mostly involved with lower-funnel conversion, but what happens if nothing comes in the lower funnel? Focus on digital to the exclusion of traditional media which may have a more brand building, higher-funnel role in messaging.”
This is just another fad in the industry. Media agencies have a much more unified approach to marketing and media than consultancies.
2. Finding the Right Talent Isn’t Easy
Related comment: “One way to boost talent and knowledge is by encouraging companies to move from vertical structures to demand cells (sales, marketing, supply, development, etc) so that they can evolve to multifunctional teams instead of verticalities.”
There’s too much technology, too many tools that no one knows how to handle.
3. Leadership is Too Far Above
Related comment: “Managers often give instructions from corporate without much real knowledge of the market.”
Many times, senior executives at agencies have a lot of theoretical knowledge they haven’t really put in practice.
Multicultural marketing moves and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
K12, a for-profit education company that sells online schooling and curricula, has appointed Adrian Jordan as Senior Director, Multicultural Marketing and Strategy. He previously filled the role of Director, Multicultural Marketing at Charter Communications. Jordan is a member of the Portada Council System of Brand Marketers.
Publicis Groupe announced the appointment of Ronnie Dickerson Stewart to Publicis Groupe U.S. Chief Diversity Officer, effective February 3rd. In this role, Stewart will be responsible for driving the organization’s Diversity & Inclusion culture and initiatives in the U.S. She will also lead the Talent Engagement & Inclusion (TE&I) Council.
Baseball superstar Alex Rodriguez is the new Chairman and Co-owner of Dominican beer brand Presidente, owned by AB In-Bev. “Presidente is one of the most prestigious brands in the DR,” he told Forbes. “It’s unfortunate my father is not still here to watch this, but I think that he would be more proud of this partnership than my home runs.”
Hulu CEO Randy Freer is set to step down from his role as leader of the streaming platform. The move comes after Disney looks to better integrate the streamer with its Direct-to-Consumer & International division under Kevin Mayer. Disney controls all of Hulu since its 21st Century Fox and Comcast deals.
This week, Mexican consumers have us looking at their behavior. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here.
A consumer insights survey by in-Store Media has found that Mexican consumers choose brands that take responsibility for the environment. For 62% of respondents, it’s important to shop at stores that take ecological action to any extent. Globally, 70% of consumers are willing to pay up to 35% more for earth-friendly products, and 57% would be willing to adopt ecologic behavior.
According to IDC Mexico, 35% of Mexican consumers use a ride-hailing app such as Uber at least once a week. Similarly, 29% do so four times a week, and 11% use this service almost every day. The company also found that 60% of respondents had over two mobility apps installed in their smartphones. Moreover, 77% of users prefer to use cash as their payment method.
Nielsen‘s data shows that 49% of Latin American consumers feel positive about their financial situation even though certain groups feel like their on “survival mode”. Among Nielsen’s findings, 63% of Latin American women believe a store’s location is a very important purchase driver. Also, 11% of Latin Americans have used an online supermarket, while 43% are willing to try. Interestingly, 42% said they love to try new things. As we could expect from this, 49% are more willing to choose new brands than five years ago.
Household Purchase Intent in Brazil has reached 97.1 points in January according to the Brazilian Commerce, Services and Tourism Confederation, up 1.2% since 2019. Over 34% of Brazilians think this is a good time to purchase durable goods, up 2% since last year.
Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).
The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.
Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.
Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.
According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.
Gap CMO out, FabFitFun steals Netflix’s Marketing VP and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
GapCMOAlegra O’Hare has left the company after less than a year on the post. The company also announced that Neil Fiske, Gap brand President and CEO, is stepping down from his role.
Subscription box service FabFitFun has named Louisa Wee as its first Chief Marketing Officer. She previously filled the role of Vice-President, Marketing Strategy, Analysis and Programmatic Media Buying at Netflix. In her new position, Wee will oversee the strategy and execution of the company’s marketing plan globally, as well as leading on brand, content and creative.
JPMorgan Chase has promoted Leslie Gillin from President of Co-Brand Credit Cards to Chief Marketing Officer, replacing Kristin Lemkau. Gillin previously held the role of Chief Marketing Officer title at Citi’s consumer business from 2014 until 2016.
The Community has appointed Frank Cartagena as Chief Creative Officer. He’ll oversee all creative output for the multicultural agency’s New York-based clients. Cartagena replaces Bobby Hershfield, who served as VP and Executive Creative Director of The Community’s New York office before leaving last year. Cartagena most recently served as Executive Creative Director at 360i, part of Dentsu Aegis Network.
Katz Media Group has promoted Rick Ramos to Senior Vice President of Multicultural Partnerships, effective immediately. In his new role, Ramos will oversee the creation of dynamic multicultural audio marketing campaigns with national scale and local execution across all of Katz audio partners, which includes Univision, Radio One and Entravision.
Travis Freeman has been appointed Global Head of Media by Uber. He previously served as Executive VP of Media at Vayner Media. Now he will report to Thomas Ranese, VP of Marketing at Uber.
The quick-service-restaurant industry is one of the sectors that are expected to continue growing steadily in the U.S. As competition multiplies, QSR marketing needs to become more precise, and tailored for specific audiences.
What Does QSR Marketing Mean?
Quick-service restaurants are those where consumers pay for food before eating. In the U.S., QSRs typically sell burgers, sandwiches, ethnic foods, pizza, pasta, and chicken. This industry excludes coffee and snack shops. In recent years, QSRs have started to diversify as a result of evolving consumer behavior and preferences. Thus, the space has become more crowded.
QSR brands have to be smart about their marketing. They already have two main advantages: low prices and convenience. Even though the category has performed well recently, as shown by the US $273 billion in revenue and an average yearly growth of 4.1% in the last five years, heavy competition forces QSR operators to differentiate in a fierce battle where smarts mean everything.
One way to be outstanding is by offering outstanding experiences. In the words of Alex Tokatlian, Brand Marketing Director at Marco’s Pizza and until late 2019 Advertising Manager at Domino’s Pizza*, “experience matters a 100%. It’s different for our category because people are mostly enjoying their pizzas outside of the restaurants. They get it delivered to their home, but we do everything we can with technology to make the experience as easy and as seamless as possible. We’ve done things like Domino’s Hot Spots, that mean you don’t need a specific address to receive a pizza, you can have it delivered to the beach, the park, etc. We find ways to bring meaningful service innovation to life, just to make that pizza experience easier and faster.”
Experience matters a 100%.It’s different for our category because people are mostly enjoying their pizzas outside of the restaurants.
How Quickly is the QSR Marketing Industry Growing?
The QSR industry in the United States is forecasted to reach US $731.8 billion by 2024. The main factor driving the industry growth is the digitalization of food services, including anticipated reservations, orders, and online payment. This is a great opportunity for marketers, as digital advertising is expected to grow from 36.1% in 2019 to 43.8% of total QSR Marketing by 2023.
In 2018, McDonald’s was the top spender within the category. With US $761 million spent in ad expenditures, the chain was way ahead of brands such as Domino’s, on the second spot with US $418 million, and Taco Bell on the third spot with US $415 million.
What’s the Role of Technology?
A recent report by the National Restaurant Association used a forecasting approach based on questionnaires sent to experts to predict the future of QSRs by 2030. Three out of five developments center around technology: mobile payments, handheld payment terminals, and a majority of digitally-placed takeout or delivery orders placed digitally.
Evidently, QSR marketing should take this into account. We asked Alex Tokatlian about how Domino’s is taking advantage of technology to improve marketing. He told Portada about their ground-breaking initiative “Points for Pies”, a loyalty program that rewards consumers of the pizza category regardless of where they eat. “It was a big effort right before the super bowl, the first of its kind as far as we know,” shared Tokatlian. “I don’t think there’s been another brand willing to reward consumers for participating in the category, not specific to the brand.”
Also, the program is completelymobile-based and uses artificial intelligence. “We know technology is highly relevant in the multicultural segment, and we had the experience available in Spanish as well,” commented Tokatlian. “It was also our first time using AI in this capacity. We had a “Pie-dentifier” built into the app, which scanned the images you put it on and it had to decide whether it was pizza or not. If it was pizza, we awarded the points to the customer.”
QSR Marketing and the Multicultural Opportunity
According to recent data, 40% of America’s population will be multicultural by 2021. Also, Hispanics account for 20% of QSR sales. “Hispanics are also more family-oriented when eating out,” mentioned Geoscape CEO César Melgoza to QSR magazine. “Half of Hispanic restaurant visits from Spanish-dominant Hispanics include parties with children, and one-third of visits from English-speaking Hispanics include children. This is compared to only 29% of non-Hispanic families who bring their children to restaurants.”
Moreover, QSRs are important to Hispanics not only in the U.S., but also in their origin countries. “The QSR category is very relevant for Hispanics,” shared Aisha Burgos, SVP of Digo Hispanic Media. “In Puerto Rico we estimate that there are 1,300 quick service restaurants in an island that measures 100×35 miles. According to Scarborough, 88% of the population of Puerto Rico have visited a QSR in the past 30 days. We see how these restaurants are using omnichannel strategies. They’re trying to connect with the right person at the right moment with the right message.”
Why Digitalization is the Key According to Digo Hispanic Media
Burgos agrees that digitalization is a crucial component of QSR marketing growth and efficiency. “In digital, we’re seeing a lot of different strategies that include high impact display banners when they are launching a new product,” she explained. “This is a very effective strategy since it helps them create awareness in the first stage of the funnel. Some examples of high impact banners that they use include formats like the interscroller, rich media, takeovers, and video. We also see how they use day parting in a very effective manner to showcase their menus and products in the correct context for the user.”
These restaurants are using omnichannel strategies to ensure they connect with the right person at the right moment with the right message.
Actually, Digo Hispanic Media is seeing an “always on” approach with QSR marketing. “They need the reach and frequency to stay relevant in a competitive landscape,” said Burgos. “In our sites we’ve seen an average of .30% CTR for this category, which is really good since most of these banners don’t necessarily have a clear CTA. Their main focus is to drive traffic to their locations, not their sites. With 90% of traffic coming from mobile, QSRs are very clear that they need to be in mobile.”
Brands Know How Important Multicultural Consumers Are
The growth potential and buying power of Hispanics make of this group the most important multicultural audience. For Domino’s Pizza, it’s important to really make Hispanics like they’re included in the brand’s marketing. “We always have to keep an eye in how media consumption habits are changing, the best way to reach the consumer and also what’s most effective for our franchisees,” said Tokatlian. “So we’re always trying to understand media behavior and how to reach different audiences. Specifically for multicultural audiences, we think tailored messages make more sense. We’re very disciplined in our approach, we’re very much into the data, we test and learn everything to make sure the investments we’re making are effectively driving sales.”
A customized message is important, but you have to find a balance between broad general marketing and where it makes sense to send a more nuanced message.
In fact, Hispanics are a very important part of business for Domino’s. “As a national brand we have a footprint all over the country in major cities, especially in markets with high Hispanic populations; 20% of stores are in high Hispanic markets and those stores account for 25% of our sales,” shared Tokatlian. “For the multicultural segment, we did a spot featuring an employee explaining the ‘Points for Pies’ program. He goes around different situations and different parts of the city showing ways in which people enjoy pizza. We had a corner slice shop, eating pizza at home with the family… We used examples that are relevant for that audience, beyond just language.”
Furthermore, Domino’s genuinely cares about giving back to the community. Their employees have the possibility to become franchisees, and 90% of Domino’s franchisees started off working at a store. “The people that are franchisees have come from within, they have grown at our stores,” told Tokatlian. “Often they end up serving the communities that they came from. In terms of our national footprint in Hispanic communities, you do get a lot of multicultural franchisees.”
How to Reach Those Multicultural Consumers?
The first obvious answer is data. For Domino’s Pizza, data has been important since before it was smart. As Alex Tokatlian explained, “We needed people’s addresses and phone numbers. We also look at their order preferences to offer improved experiences. Knowing what they like, how they order, how they use our website… It’s very important for us to understand our consumers. The experience is customizable, there are always certain toppings that certain markets order more.”
Furthermore, said Tokatlian, it’s very important to test and learn. “Everything we do, we put the rigor up front to test and measure if things are working or not, which allows us to be more efficient and effective in marketing and media strategies. That’s my best advice. It requires some inspiration but also a sense of discipline. Trying to think ultimately what will be the best thing to drive the business and engage with customers in a way they want. A customized message is important, but you have to find a balance between broad general marketing and where it makes sense to send a more nuanced message. It’s all about being disciplined, leveraging data and taking a measured approach to things.”
* Alex Tokatlian was interviewed for this story in the summer of 2019
Manolo Arroyo is the new Coca-Cola CMO, agency moves and more changing places. People change positions, get promoted or move to other companies. Portada is here to tell you about it. Check out last week’s Changing Places here.
Coca-Cola has announced that the president of the company’s Asia Pacific business, Manolo Arroyo, has taken on the position of Chief Marketing Officer. The company’s divisions for creative, category, marketing operations, design, and knowledge & insights will report to Arroyo.
LBI Media, Inc. has announced two senior leadership appointments. Ivan Stoilkovich has been appointed Executive Vice President of Television Programming and Jason Hall has been appointed to Executive Vice President of Advertising Sales, both effective immediately. In his new role, Stoilkovich will oversee all aspects of production. Hall will be responsible for leading advertising sales and creating brand awareness of the company’s multichannel platform.
Hogarth Worldwide, a WPP company, announced that it has appointed long-time executive Mauro Baz to the role of Chief Marketing Officer for the Americas, making him one of the youngest C-suite members within the organization’s portfolio of companies.
Nick Brien, CEO of Dentsu Aegis Network Americas, will step down from the role by the end of the year. Jacki Kelley, President and Chief Client Officer at Dentsu Aegis US, will succeed Brien on 1 January 2020.