Bus stops, billboards, promos speak her language

Drug Store News,  June 26, 2006  by Antoinette Alexander

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Sources agree that Hispanic women typically shop different from the general market, making, for example, fewer quick trips and taking greater notice of promotions. Fortunately for the drug store channel, such differences can spell significant opportunity.

In order to reach the Latina shopper effectively, retailers must truly understand and commit to meeting her distinct shopping needs, whether that be through the merchandising mix, in-store signage, or bilingual store associates. Those retailers that earn her loyalty undoubtedly stand to benefit, as evidenced by the numbers.

Hispanics continue to be the largest minority group at 42.7 million, according to the U.S. Census Bureau. By 2020, Hispanics are projected to reach about 60 million. Furthermore, these shoppers have money to spend. By 2009, it is projected that the buying power of Hispanic consumers will total $992 billion, up 44.6 percent compared with $686 billion in 2004, according to The Selig Center for Economic Growth.

One key differentiator in her shopping habits is the importance she places on a trip planning compared with the general market. As a result, she is more likely to make a higher number of bigger trips and far fewer quick trips (just 44 percent of all trips she makes versus 62 percent for general market shoppers), according to a Unilever study released in May entitled "Winning the Hispanic Shopping Trip."

"She plans her trips carefully--apparently more so than the general market shopper--and not only around what she has at home and what she needs, but around the value she can obtain," stated Mike Twitty, senior group research manager of Shopper Insight for Unilever.

Non-food items--namely prescription medications (54 percent) and health and beauty items (40 percent)--drive the quick trips for the Latina shopper, the Unilever study of 799 shoppers in four top Hispanic markets (Los Angeles, New York, Houston and Miami) revealed. Nine-out-of-every-10 respondents were born outside of the United States, either in Mexico, Central or South America or the Caribbean.

Retailers can drive more of these quick trips by displaying popular nonfood categories for easy, convenient access. According to the Unilever study, such initiatives could include:

* a personal care express merchandiser in a high-traffic area featuring categories and brands that index high with Hispanics.

* a pharmacy-area stand featuring toys and Hispanic children's books that she can pick up for her sick child.

* offering bilingual food and non-food coupons with pharmacy pickups to encourage purchases in categories a retailer most wants to grow.

During her shopping trip--and even before--she is very much aware of specials. To effectively reach her and communicate such deals, try direct mail, newspaper circulars and newspaper ads/coupons in Spanish or bilingual language, the Unilever research suggests. Furthermore, reSearch found that advertised specials in Spanish were most noticed on signs outside the front of the store area.

Retailers also should consider bus stop, billboard and street bench messaging or within or on the outside of a public transport vehicle itself, as the study found that nearly 1-in-4 Hispanic shoppers walk or take public transportation compared with 1-in-33 of general market shoppers. Store proximity is the No. I reason for her store selection.

Retailers also can drive more routine trips by making their convenience and service functions more Hispanic-friendly, the Unilever study suggested. This could include:

* featuring a front-of-store banner and aisle flags pointing out key Hispanic categories. Mail store layout with this information to Hispanic shoppers in the area.

* making bilingual in-store announcements of Hispanic and regular item specials, indicating location of items.

* displaying today's special and promotions on a special Hispanic bulletin board in the customer service area.

* expanding the customer service activities to encompass services of particular interest to Hispanic shoppers, such as money wire services to family in the home country.

* Highlighting upcoming community events and activities on the Hispanic bulletin board.

Perhaps the biggest advantage that drug stores have in earning her loyalty is the pharmacy department and its role as a local health care provider. For many Hispanic consumers, health care is self-care and is practiced with products they buy in the store. Nevertheless, there remains room for improvement when it comes to retailers effectively meeting her needs.

"Where the chain breaks down is access. When you go to a pharmacy here there is a limited number of information available to Hispanics," said Simon El Hage Lisha, director of strategic marketing services and business development at the Hispanic marketing agency Lopez Negrete Communications. "The weakest link is the bilingual pharmacist. That is the expert that Hispanic consumers are relying on."

Having someone on staff in the pharmacy department who can speak Spanish is critical, but experts agree that the ideal situation is to have a Hispanic person behind the pharmacy counter versus someone who can just speak the language. This can help facilitate trust and build shopping trips.