Hispanic-focused marketing increases beef sales

by Bryan Salvage
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CENTENNIAL, Colo. – Hispanic marketing materials increased sales of fresh beef by remarkable percentages, according to a recent pilot test of beef checkoff-funded Hispanic point-of-sale (P.O.S.) elements.

Volume sales of beef cuts increased across all major subprimals:

  • Beef variety meats showed the biggest increase with 82.7%
  • Chuck, up 60.1%
  • Loin, up 41.7%
  • Round, up 35.5%
  • Rib, up 26.9%

Three Dillons stores in Kansas conducted the test for 12 weeks. The Hispanic P.O.S. elements also increased grocery shopping trips from 8.2 trips per month to 11.1 trips per month.

Due to the new P.O.S. elements at the meat case, 19% of respondents said they will shop for meat at Dillons much more often and 51% said they will shop for meat at Dillons somewhat more often. Test-store shoppers also reported consuming beef more often as part of their daily meals. The percentage of meals including beef grew from 62% to 77%.

"With a growing Hispanic population in the U.S., the need to reach out to this group is increasing," said Jim Henger, executive director of marketing for the National Cattlemen’s Beef Association, which contracts to manage retail programs for the beef checkoff. "The beef checkoff-funded Hispanic point-of-sale materials were developed to meet the needs of this growing segment of the population."

In order to compare the performance of Dillons stores without the Hispanic point-of-sale materials to test stores with the materials, the beef checkoff-funded research was conducted with assistance from the Iowa Beef Industry Council. The P.O.S. materials in test stores included a shopper brochure with a dictionary of cuts, channel strips, counter posters, on-pack recipes, a theatre floor sign and a "Hablo Español" employee button.

Dillons stores in Wichita, Garden City, and Liberal, Kan., served as test stores. Researchers conducted the test pre-wave in July 2009 and a test and control postwave in November 2009. Sales data, consumer intercepts and a retailer survey evaluated the effectiveness of the materials.

Hispanic point-of-sale materials and ordering information is also available at beefretail.org/hispanicpos.aspx.

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