Packaging & private labels overlooking Spanish-speaking consumers.

Vertis Communications announced the results of its proprietary Customer Focus OPINIONES survey, which found that while 78 percent of all Hispanics in the U.S. have a positive perception of private label store brands, only 61 percent of those speaking only Spanish at home maintain a similar outlook. Conversely, 88 percent of Hispanics who speak English at home have a positive outlook on private label brands.

“Customer Focus OPINIONES indicates that 27 percent of Spanish-speaking Hispanics believe they don’t know enough about private label store brands to want to try them,” said Jim Litwin, vice president of market insights at Vertis Communications. “This data indicates that retailers with private label brands have an opportunity to market to Spanish-speaking Hispanic audiences by communicating to them in their native language. Incorporating relevant communication in marketing campaigns is imperative to establishing a connection with this influential audience.”

While 27 percent of Spanish-speaking Hispanics indicate they have an insufficient amount of knowledge about generic store brands to want to try them, Vertis’ 2007 survey results revealed only 14 percent of non-Hispanic adults stated the same lack of knowledge, furthering the evidence that English-specific marketing and communications efforts are much more thorough for these consumers. Of total non-Hispanic adults, 84 percent had positive comments about the brands, which included references to a product’s value, quality and availability as a good alternative to other brands. Young women 25-34 possessed the highest number of positive comments about private label brands, with 91 percent responding.

The Vertis Communications Customer Focus study, which surveyed 2,500 consumers via telephone, also revealed the following:

Product Label Information Influencing Consumer Purchases

• While 56 percent of Hispanics age 18-24 indicated a product label’s safety guarantee was influential when considering its purchase over another brand, merely 28 percent of Hispanics age 25-34 said safety messaging was important (See Slide A)

• The top three most influential pieces of information on a product’s packaging are all safety-related,
according to Hispanic and general market respondents; non-toxic messaging, all-natural ingredients, and safety guarantee language are most likely to influence purchase

• Celebrity endorsements mean almost nothing to both Hispanics and total adults in the U.S., with only 2 percent and 5 percent, respectively, indicating that a celebrity’s image or comments on packaging influence purchase

Most Appealing Nutrition Label Information for Consumers

• While caloric content is the most sought-out piece of information on a nutrition label for both Hispanic adults and total adults, Hispanic adults are more concerned with calories than non-Hispanics; with 55 percent and 46 percent, respectively, saying they seek out that statistic (See Slide B)

• When it comes to seeking out fat content on a product label, 32 percent of total adults are concerned with this information, while only 26 percent of Hispanic adults seek the same

• Non-Hispanic adults are less likely to look at the nutritional label altogether, coming in at 26 percent, compared to 21 percent of Hispanic adults

Income’s Impact on Perception of Private Label Store Brands

• Forty-four percent of total adults earning less than $20,000 a year have a negative perception of private label store brands (See Slide C)

• Eighty-nine percent of total adults with a household income of $50,000-$75,000, have positive comments about private label brands (See Slide D)

• Eighty-five percent of Hispanic adults ages 35-49, with incomes between $35,000 and $49,000, said positive things about generic store brands, versus 78 percent of Hispanics (See Slide E)

• Surprisingly, 58 percent of Hispanics 50 years of age and older, making an annual income of $50,000 or less, are most likely to have negative comments about private label store brands (See Slide F)

Direct Mail Readership and Response among Hispanics

• Seventy-one percent of all Hispanic adults in the U.S. read direct mail advertising, illustrating the captive Hispanic audience at-hand for marketers

• Hispanics influenced by charity-sponsored products and products with a safety guarantee are more likely to read direct mail than other Hispanic adults, with each group representing 76 percent of the population

• Of Hispanics who read direct mail, 64 percent responded in the last 30 days via mail, phone, in-person or online

• Hispanic direct mail readers who are more likely to buy natural products are also least likely to respond to direct mail via the standard mail, coming in at 9 percent