Wellness Retail360 Multicultural F08 17 j-bcs

P:818.509.5901 SantiagoSolutionsGroup.com
“Better for You” – Better for All of Us.
Capitalizing on a Multicultural Appetite for Healthy Choices while
Planning Total Market Wellness Strategies
Presented at Multicultural Retail 360 ►By Carlos Santiago, Chief Strategist, SSG ● August 13, 2015

©2015 Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com
While most Americans are chasing diets and making healthier
lifestyle choices, Multicultural consumers are most likely to be
generating faster growth for “Better-For-You” products.
Yet, since cuisine and taste preferences are so embedded in our
formative culture, ‘wellness’ is in the eyes of the beholder.
In fact, the ‘healthier’ brands that are growing most rapidly are
extremely different between Multicultural & White-Non-Hispanic
segments.
How can we plan effective Total Market wellness strategies given
these differences?
We will explore a framework for planning that sizes opportunity
and informs engagement tactics based on specific segments’
wellness mindsets, behaviors and insights.
2
“Better for You” – Better for All of Us.
Capitalizing on a Multicultural Appetite for Healthy Choices while
Planning Total Market Wellness Strategies

3
Why Wellness - Defining Wellness Scores
Defining Wellness Personas
Brand/Segment Planning through Wellness Lens
Conclusion
Millennial Conundrum
1
2
3
4
Agenda
5

4
Wellness Movement Has Been Gaining Speed Across All
Segments And Is Still Going Strong
Looking for new ways to live a healthier life (Strongly Agree & Agree)
And Following a regular exercise routine (2+/week)
WNH Hisp AANH AONH Mill
0%
16%
-8%
8%
7%
Hispanics closing aspirational/ behavioral gap rapidly,
Asian at parity with WNH, AA trails behind
Source: GfK MRI Fall Studies 2007-2014 American Consumer Survey
30
35
40
45
50
2007 2008 2009 2010 2011 2012 2013 2014
-21% -12%
70
72
74
76
78
80
82
84
86
2007 2008 2009 2010 2011 2012 2013 2014
35
40
38
28
30 31
41
44 43
43
45 47
2007 2008 2009 2010 2011 2012 2013 2014
74
73
78
77
83
81
77
74
78
82
2007 2008 2009 2010 2011 2012 2013 2014
Exercise Behavior (2+/week)
Aspirational Healthier Lifestyle
25
27
29
31
33
35
37
39
41
43
45
2007 2008 2009 2010 2011 2012 2013 2014
-8%
-1%
-27%
-15%

5
After announcing Wellness as a strategic
priority, named U.S. President as first Chief
Wellness Officer to reduce product calories
and improve labeling
Not surprisingly, Best-In-Class Marketers Are Stepping Up &
Reaping Rewards of Wellness Movement
Set to increase sales from “Good for
You” portfolio to $30B annual sales
by 2020 coming from $10B in 2010
Expanding healthy-eating commitment by
offering fruit & vegetables options and
marketing healthier alternatives
Asking partners to reformulate
thousands of packaged food items by
2015 to lower sodium & added sugars

6
Definition
3 potential TM approaches
Depending on segments’ growth opportunities and
triggers & barriers to optimize that growth
1.one fully integrated “new mainstream”
approach
2.individual Hispanic, African American, Asian,
or White Non-Hispanic segment approaches
3.or in most cases, a combination of above
… aligned under ONE overarching strategy.
AHAA
Outcomes
Effective Total Market Strategies Require Cultural Insights
From Inception & Throughout Planning & Execution
A marketing approach which proactively
integrates diverse segment
considerations.
This is done from inception (with rigorous
purchase drivers and insights of each segment)
through the entire strategic process and
execution.
Goal
Enhance Brand value and growth
effectiveness

Syndicated: Attitudes, Mindsets, Universal
Truths, Behavioral & Volumetric
Store/Scan Syndicated Data: Store Purchase
Data for Reliable & Feasible Opportunity Sizing &
ROI
Custom Research: Close Knowledge Gaps,
Deeper Relevancy & Cultural Triggers especially
among M/C Millennials
7
Build Solid Foundation of Total Market Insights for
Strat Planning Through Multiple Data-Rich Stages
1
2
3

©2015 Santiago Solutions Group, Inc.
SantiagoSolutionsGroup.com
Overview
Since 1979, GfK MRI’s Survey of the
American Consumer™ has provided a
detailed view of the 226 million adult
consumers in the U.S
The Suvey is a high-quality
projectable, trendable single-source
market research survey of use by
marketers for its media targeting,
consumer insights and messaging
capabilities.
We begin by building a personal
relationship with the respondent,
leading to high quality data collection
and resulting in over a 50% response
rate.
Methodology
• Single Source Data
• Nationally representative area
probability sample
• Data collected in two phases:
 1 ½ hour in-home, face-to-face
interview
 Self-administered questionnaire,
manually collected
• Modeled 50,000
respondents/households over two
years for SSG Wellness Spectrum
• Sample balanced back to the U.S.
Census
• Projected out to the total
population of the U.S.
• Audited twice annually by the
Media Ratings Council
XXX
We Began with GfK MRI Projectable
Survey of American Consumer
8

SantiagoSolutionsGroup.com 9
Wellness: A Code for Lifestyle Choices
SSG modeled hundreds of attitudes & behaviors shaping individuals lifestyle choices leading to, or preventing from,
the 4 highest chronic diseases causing over 60% of preventable deaths in the U.S.
PersonalLifestyleChoices
Mindsets,Attitudes&Behaviors
EAT
HEALTHY SLEEP WELL
EXERCISE DRINKWATER
GOODCHOICES
Healthier
Lifestyle
Unhealthier
Lifestyle
Lifestyle Choices Also
Shape Brand SelectionBADCHOICES
SMOKING SEDENTARY
HIGHSODIUMBADFAT
HBP
Obesity
Diabetes II
High Cholesterol
Behaviors
Preventable
Chronic Diseases
1

Individuals Range Across A Spectrum According
To Their Wellness Mindset & Behaviors
SSG Wellness Spectrum assigns each individual with a Wellness Score -relative to
the average U.S. adult. This ‘FICO-like’ score is individually based on specific
wellness attitudes & behaviors.
The individual Wellness Spectrum scores can be aggregated by brand buyers, by
retailer, by generational or ethnic/racial segment, geography, etc.
The Wellness Score™ empowers marketers to understand their Brand buyers
through wellness patterns, barriers, and engagement drivers to focus
strategies on the appropriate level of wellness based on growth potential.
0 50 100 150 200Least
Wellness Outlook
Greatest
Wellness OutlookAverage
Wellness Outlook
1

11
Growth Is Tied To Consumer’s Wellness Outlook In Many
Food Categories & Hispanics show a higher Lift for Wellness
CategoryBuyerGrowth`12-`14
2014 SSG Wellness Score™
Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012/14 Doublebase Base: Total & Hispanic Principle Shoppers 18+; Analysis: OLS Linear
Regression with Adjusted R-squared of .40
HispanicsTotal Market
2014 SSG Wellness Score™
CategoryBuyerGrowth`12-`14
Quadrant with Above
Average Buyer Growth
& Higher Wellness
Score
Average Buyer
Growth = 6%Average Buyer
Growth = 2%
A Brand increase in 10 Wellness Score
points increases growth by
1.3 for White NH & 1.7 for Hispanic
percentage points with 99.9% confidence
 Organic
 From Scratch
 Convenience
 R.T.E.
22% 50%
1

+10 point Increase in
Wellness Score
Every 10 Point Gain in Wellness Score Boosts Brands Buyers’
Growth by 1 to 5 Points Annually Depending on Segment
12
Buyer Annual
Growth
Rate
99% Confidence Index
+4.6
Customer CAGR
Asian/ Other
+1.7
Customer CAGR
Hispanic
+1.3
Customer CAGR
WNH
+1
Customer CAGR
AA
+1.5
Customer CAGR
Millennial
Despite the conventional wisdom
that Hispanics don’t care about
Wellness, Hispanics generate the
2nd highest growth from wellness
products, higher than WNH.
1

13
Conclusion
1
2
3
4
5

14
Wellness Personas
6 Clusters aggregated into 3 tiers here
Savvy-Indulgents are
cost-conscious individuals
who do not care to cook.
You probably won’t find
these individuals at a gym
but may catch them playing
some soccer with friends.
They are hunters in games,
actions and mindsets and
will not compromise taste
for wellness sakes.
Busy Strivers make a
great effort to balance their
busy lives, yet are more
driven by convenience
rather than health. They
might try to sneak in a
Pilates work out to shed
some excess pounds. They
like to have semi-prepared
foods, that require little
additional work.
Fit & Holistic live by the
motto: “You are what you eat
and wear.” They understand
and incorporate healthy
lifestyle choices. They shop
with the environment in
mind, purchasing organic
food products and listen to
the doctor.
SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.
©2015 GfK US LLC. All Rights Reserved
Savvy-
Indulgents
46% of U.S.
Adults
Busy
Strivers
36% of U.S.
Adults
Fit &
Holistic
18% of U.S.
Adults
1

21%
38%
41%
Composition of Wellness Personas by Ethnic Segment
15
Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2014 doublebase
SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. ©2015 GfK US LLC. All Rights Reserved
WNH Hisp
Hispanics are about 20% more likely to be
Fit & Holistic or Busy Strivers than WNH.
20%
39%
41%
24%
38%
38%
AfAm
Asian
Other
16%
33%
51% Mill
Millennials are
most likely to be
Savvy Indulgent.
A/O are most likely
to be Fit & Holistic.
1

16
Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2014 doublebase
©2015 GfK US LLC. All Rights Reserved
White NH Hispanic
Less Acculturated Hispanics are 20% more likely to be Fit & Holistic or Busy Strivers than White NH
Hispanic Millennials tend to be more wellness driven than WNH Millennials
14%
31%
55%
18%
37%
45% Hisp
Mill
WNH
Mill
Hisp
+Accult.
Hisp
-Accult.
Hisp
+Bicult’l
Hisp
WNH
Composition of Wellness Personas by Ethnic Segment1

24% 40%
11% 33%
31% 63%
44% 51%
17% 38%
34% 54%
Greatest Demographic Differences*
* 95% confidence difference between 2 segments
Age (18-34)
HHSize 5+
Presence of
Child ≤11yr
Work full-time
Blue Collar
HH use mobile
only
WNH Hisp White NH
Hispanic
Newspaper
Television
Radio
• Shop for price, quality, & brand. Could pay extra for
image-enhancing products (impulsive purchase)
• Brand is indication of quality
• Culture/ethnic heritage is important
• Try to eat healthy
• Like to look at advertising
• Conscious about price, quality.
Don’t make impulse purchases
• Have life & medical insurance
• Engaged in gardening and raising
pets
Top 2 Quantiles
17
Hispanic And White Busy Strivers Have
More Differences Than Similarities
Source: SSG analysis of GfK MRI 2014 Doublebase American Consumer Survey
Top 2
Quantiles
1

Busy Strivers Fastest Growth Breakfast Brands
18
White NH
AfAm
Hispanic
Asian/Other
• Frozen Waffle: Other
• Bar: S.B
• Bagels: St. Brnd.
• English Muffin: St. Brnd.
• Hot Cereal: St. Brnd.
• Egg Alternative: St. Brnd.
• Doughnut: Private Bakery
• Bar: Other
• Bar: St.Brnd.
1

Busy Strivers Breakfast Fastest Are Mostly
Unique to each Segment
19
White NH
Doughnut: Private Bakery
Bar: Other
Most
Unique
AfAm
Hispanic
Asian/Other
Bagels: St. Brnd.
English Muffin: St. Brnd.
Hot Cereal: St. Brnd.
Egg Alternative: St. Brnd.
Frozen Waffle: Other
1

Breakfast Fastest Growth Products In-Common Between
White NH & Hispanic Acculturation Busy Striver Segments
20
White NH
Acculturated
Bicultural
Less Accult.
Bar: St. Brnd.
Bar: St. Brnd.
Most Brands
In-common
1

Busy Strivers Breakfast Fastest Growth
Products Unique by Segment
21
White NH
Acculturated
Bicultural
Less Accult.
Yogurt: St. Brnd.
Hot Cereal: St.Brand
English Muffin St. Brnd.
Bagels St. Brnd.
Egg Alternative St. Brnd.
RTE Muffin: Private Bakery
RTE Rolls Pastries St. Brnd.
Doughnut: Private Bakery
Bar: Other
Most
Unique
1

22
Conclusion
1
2
3
4
5

23
Two Similar Cold Cereals, Two Different Stories, Two
Different Opportunities
Share of Base
A
Kellogg's
Cereal
Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012-2014 Double Base Survey of the American
Consumer. Base: Total 18+; Household Products- Used in Last 6 months
Savvy Indulg 35%
Busy Striver 38%
Fit & Holistic 27%
27% M/C
Savvy Indulg 43%
Busy Striver 37%
Fit & Holistic 21%
49%
M/C
A Gen
Mill’s
Cereal
Share of Base
Millennials make
up 23% of Base
Millennials
make up
24% of Base
1

24
Two Similar Cold Cereals, Two Different Stories, Two
Different Opportunities
Share of Base
Share of Growth Segments
A
Kellogg's
Cereal
Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012-2014 Double Base Survey of the American
Consumer. Base: Total 18+; Household Products- Used in Last 6 months
15%
Savvy Indulg 8%
Busy Striver 72%
Fit & Holistic 20%
Savvy Indulg 35%
Busy Striver 38%
Fit & Holistic 27%
Savvy Indulg 26%
Busy Striver 43%
Fit & Holistic 31%
27% M/C
62%
M/C
Savvy Indulg 43%
Busy Striver 37%
Fit & Holistic 21%
49%
M/C
64%
M/C
2%
Change
20%
Change
EnD
15%
SpD
85%
EnD
3%
SpD
97%
A Gen
Mill’s
Cereal
Share of Base
Millennials make
up 23% of Base
Millennials
make up
24% of Base
48% of all Growth comes from Millennials!
A third of that from M/C Millennials
53% of all Growth comes from Millennials!
A fifth of that comes from M/C Millennials
1

25
Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+
TM: Total Market, WNH: White non-Hispanic, H: Hispanic, BNH: Black non-Hispanic, A/O: Asian/Other, MILL: Millennials, S-I: Savvy & Indulgents
A Gen Mill’s Cold Cereal:
Growth 2012-2014
A Kellogg’s Cold Cereal:
Growth 2012-2014
Wellness/Ethnic Segments Driving Growth
72% Female69% Female
1

Drivers Among Multicultural Busy Strivers
Looking for ways to
live healthier life
Check nutritional
content before
buying
Prefer cooking
with fresh food
Happy with my
weight
Participated in
soccer
Follow a regular
exercise routine
Life is slipping
out of control.
101 136 151 119
101 122 116 127
109 122 102 124
101 129 135 136 80 204 75 148
112 129 101 129
83 112 159 104
127 101 107 81
Fat-free
products
User
friendly/’green’
products
102 113 100 120
WNH Hispanic African Am Asian/Other
1

The sample Kellogg’s Cold Cereal Growth Segments
Are More Digitally-Inclined Through Trial vs the
GenMill’s sample cereal except at Advocacy
Source: GfK MRI Doublebase 2014; BASE Fit & Holistic/Busy Strivers Shoppers
Awareness &
Consideration
Trial & Action Loyalty & Advocacy
Brand Funnel
PathtoPurchase
K GM
Connect with
Brand by SM
Use Text to give
opinion
SM: Rate/ review
product
SM: Show support
favorite brand
A
Kellogg’s
Cold Cereal
Mobile: search
info about
product
SM: find about
products
SM: receive
coupons offers
App: Shopping retail
Scanned QR Code
Redeemed a
mobile coupon
115 67
109 64
Look ad sent by
text 94 8697 73
107 113
94 101
96 50
83 51
104 82
Receive location
based coupon
App: GPS/ Navigation
97 223
93 101
102 156102 156
106 129
A
Gen Mill’s
Cold Cereal
K GM K GM
1

Retail Preference for Busy Striver Cold Cereal Shoppers Vary
Among Segments Impacting Shopping Marketing
28
White NH
Busy Strivers
% Incidence% Incidence
Hispanic
Busy Strivers
AfAm
Busy Strivers
% Incidence
Asian/Other
Busy Strivers
1

1-to-1 Marketing Can Be Aligned with Best Fitting
Retailers Promos Via Mobile & In-Store Solutions
Wellness
Spectrum™
Customer
Database
Primary
Research
MRI
Retailer
POS Data
• Identify, Quantify, Locate and
Target high value Wellness
Consumers to customer
databases
• Wellness Personas &
Scores can be easily
appended with external
data sources
• Targeting based on Wellness
segments allows 1:1 direct
custom messaging in any
Geography driving
promotional/shopping
marketing efficiency
Supermarket
Neighborhood
Stores
Householder
Fit & Holistic
Busy Strivers
Savvy Indulgents
1

ROI
30
1
2

31
Based on Purchase/Homescan Data, Can Model Fully Attainable
Opportunity Sizing By Brand Segment, Geography, Channel
Scenario: High Household and High Loyalty
Revenue Goal: $180.7M (2018), $215.0M (2020)
28 31
43
34
27
34
25
22
1810
20
30
40
50
2014 2016 2018 2020
Hispanic Household
Penetration
3.1 3.4
3.9
1.7
2.7 2.9
3.2
2.1
2.6
2.8
0
1
2
3
4
5
2014 2016 2018 2020
Hispanic Purchase Frequency
3.7
3.0 3.14.1
3.5
2.8 2.83.2
2.7
2.1
1
2
3
4
5
2014 2016 2018 2020
Hispanic Purchase Size
11.5
10.2 12.4
6.9
9.3 8.2 8.8
6.7 7.1 6.0
0
5
10
15
2014 2016 2018 2020
Hispanic Buy Rate
$180.7
$215.0
$159.0 $158.8
$152.7
$139.8
$173.8
$200.7
$120
$130
$140
$150
$160
$170
$180
$190
$200
$210
$220
2014 2016 2018 2020
Hispanic Total Revenue $ (M)
High HH Pen Hisp BAU Med HH Pen
Incremental Revenue: $75.2M
Investment: $3.3M (2016), $13.2M (2018), $33M (2020)
2

32
Conclusion
1
2
3
4
5

Conclusion
What segment is leading
or following the national
health & wellness
movement?
•WNH with Asian are leading
in most wellness trends
•Hispanics are fastest
growing force behind new
wellness momentum and
reaching parity in many
wellness trends
Are Hispanics’ wellness
lifestyle more
aspirational than
behavioral?
•It is more Aspirational
•Yet it is also Behavioral
especially in food from
scratch, certain food types
and healthy behaviors
How strong of a
purchase driver is
wellness across cultural
segments?
•Typically stronger, except
among AA
•There is a strong association
between Wellness Scores of
brands & growth rate

Easing key planning decisions through a common wellness platform yet
allowing individual segments insights to guide strategy
Which wellness propensity segments to pursue in Total Market Cross-Cultural,
Segmented, or a Combined Approach
strengthen brand identities by developing messages that speak to different healthy
outlook consumers
discover customers whose behavior have changed or needs are not being met
What kind of products to offer
refine a product’s formulation or fine-tune the positioning or develop a new product
How to go-to market effectively
predict what products will consumers of different health outlooks be more persuaded to
consider & buy
inform channel selection to optimize the path to purchase for selected targets
Properly designing and executing 1-to-1 wellness-prone promos and experiences in a
specific trade areas that respond to specific wellness attitudes & interests
34
Wellness Can Serve as a Powerful Tool To Understand & Guide
Where Brands Can Chase New Growth

35
SSG Growth Insights
Newsletter
Santiago Solutions Group
GfK
GfKMRI.com
@Santiago_Group
@GfK_en
@Carlos_SSG
santiagosolutionsgroup.com/subscribe/
Carlos@SantiagoSolutionsGroup.com
Susan.Nunez@gfk.com
SSG: 818.736.5661
GfK: 212.884.9217
Santiago Solutions Group
SSG guides clients to identify the highest ROI
opportunities, simplify business decision-making
through advanced analytics & insights, and craft
effective marketing strategies that advance
sustainable total growth fueled by Millennial,
Multicultural & Hispanic segments.
GfK MRI Survey of the American Consumer
GfK MRI data are culled from its Survey of the
American Consumer™, the most comprehensive
single-source database in the U.S. contains
unparalleled insights into attitudes and lifestyles,
along with consumption of approximately 6,000
products in 550 categories.

36
Conclusion
1
2
3
4
A Final Note
5

ROI
Custom Research: Close Knowledge Gaps,
Deeper Relevancy & Cultural Triggers especially
among M/C Millennials
37
1
2
3

The Unanswered Questions: Among Millennials, where does culture intersect?
How are shopping behavior and brand loyalty
influenced by culture?
38
3

The Brand Challenge: How To Drive Loyalty In-
Context of 3 Major Forces
Generational Values
Brand Attitudes
Shopping Behavior
Millennials
39
3
Cultural Values
Inter-Cultural
Relationships
Cross-pollination
Multicultural
Mobile
Social Influence
Path to Purchase
Digital
Loyalty

Outcome: The Road Map to Growth
Digital/Mobile,
Stores & Brands
Define across
segments
Insights &
Ideation
Integrated
Brand
Strategy
Millennial Values
Probe, Analyze & Compare
both as a total group and by
ethnic segment
1st
2nd
Attitudes
toward brands
Shopping
behavior
3rd
Cross-cultural
Total Market
Approach
Individual
Segment
Approach
Who? What?
How? When?
Combined
Approach
40
3

Multicultural Industry thought-leaders of these three independent marketing
firms have joined forces to conduct the first cross-cultural study to help
marketers define and integrate their strategies to build their business
among Cross-Cultural Millennial female shoppers.
Jackie Bird-CEO
2011 Latina Shopper Study
Carlos Santiago-President
2014 AHAA Total Market Study
Pepper Miller-Principal
2012 “Black Still Matters”

We are seeking up to 3 Brand Sponsors to underwrite the costs of
this unique and comprehensive study.
In exchange for their support, each Sponsor will have the ability to
include up to 20 minutes of proprietary questions in a
Quali/Quant methodology within the Study.
MOE (Margin of Error) 3% overall & 5% at the ethnic segment level.
Business Proposition
Interested? Great. There’s more!!

t: 646.651.4997
e: jackie@redbeansociety.com
t: 646.246.4185
e: carlos@santiagosolutionsgroup.com
Carlos Santiago Jackie Bird

Wellness Retail360 Multicultural F08 17 j-bcs

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