2014 Multicultural Health National

Transcription

1 2014 Multicultural Health National

2 Hispanics are not a Niche POPULATION 55.7M HISPANICS IN THE U.S. IN % OF THE TOTAL U.S. POPULATION POPULATION HISPANIC NON-HISPANIC 30% 14% 10% 11% 11% 3% 7% 1% -3% 0% TOTAL UNDER % 70% 100% 100% 30% ECONOMIC POWER 16 TH LARGEST ECONOMY IN THE WORLD SPENDING PROJECTIONS % vs. +22% Non-Hispanics vs. 36% Total U.S. HEALTHCARE EXPENDITURE GROWTH FORECAST % vs. +22% Non-Hispanics HISPANIC SHARE OF GROWTH Source: 1. U.S. Census Bureau National Population Projections Released December IHS Global Insight 2013 Hispanic Market Monitor Forecast (Consumer Spending Forecast from 2011 Report) 2

3 Pop Cultural Timeline of the US % 85.40% 83.50% 79.60% 75.60% 69.10% 63.70% Non-Hispanic White Share of Population

4 Total Market Strategy: The organization and business strategies which most effectively market to all consumers in a multicultural nation by employing holistic approaches to brand plans, consumer insights and go-to-market strategies. 4

5 1: Strategy Marketing (The Four Ps) Tracking & Measuring Market Research & Analysis Product R&D

6 2: Research & Analysis Must be Inclusive of all Customers

7 FS GAP 100% of Opportunity ( Millions) Diabetes Gaps = Growth Disease Prevalence Diagnosed Prevalence Treatment Rates Utilization $1,080 $1,060 $1,040 $1,020 $1,000 $980 $18 $0 $1,000 $18 $0 $1,027 $19 $0 $1,053 Utilization Treatment Diagnosis $ Source: Optum Insights APLD study 2014; US Census Projections; CDC Health and Vital Statistics: 2011 National Health Interview Survey, Based on A18+ ; US Census American Community Survey

8 Embrace Similarities and Celebrate Differences between Segments One Example: Moms Hispanic & Non-Hispanics Similarities: Family life is their top priority Enjoy spending time with their families Are most influential in household purchase decisions Want to provide a better life for their children Believe in environmental responsibility Concerned about nutritional value in their diet Hispanics & Non-Hispanic Differences: Hispanics prefer to shop with their families Children are more likely to influence Hispanics brand selection Hispanics are less likely to buy unknown brands to save money Source: Simmons NCS/NHCS Fall 2013, Adult Full Year, Pop Based on Women Parent/Guardian Living with 1 or More Children in Household

9 Hispanics have Similar Buying Behavior in 75% of Health and Beauty Categories Total # of 49 HBC Categories within respective Buyer Index Tiers Weak Hispanic Buyer Index (<79) 4 Average Hispanic Buyer Index (80-119) 37 Strong Hispanic Buyer Index (120+) 8 Source: IRI Consumer Network Panel: Syndicated Reviews Category All outlets 52 wks. ending 8/3/14

10 Creative Messaging Copenhagen Zoo: Bates Y&R, Copenhagen, Denmark

11 Using Neuroscience to Optimize Advertising #Consumer360

12 Three-Pronged Approach The impact of advertising language The effects of processing Spanglish The importance of programming language for ads #Consumer360

13 Heineken Study overview Stimuli Tested HEINEKEN TIGER ENGLISH HEINEKEN TIGER SPANISH

14 Heineken Study overview Stimuli Tested HEINEKEN TIGER ENGLISH HEINEKEN TIGER SPANISH

15 Heineken Study overview Stimuli Tested HEINEKEN TIGER ENGLISH HEINEKEN TIGER SPANISH

16 NEUROLOGICAL EFFECTIVENESS Spanish ads do better or at parity No cases where the English-language ad was significantly more effective Heineken Auto Brand CPG Brand QSR Brand ENGLISH AD SPANISH AD Differenced >.4 are statistically significant

17 Scenario setup in Spanish = more engaging Explaining the premise in Spanish drives higher emotion over a sustained period. Overall Effectiveness English Spanish 10 Heineken Seconds Describing the jungle with the two types of tigers Average engagement score of sequence Individual Key Metrics (as estimates of the population) are significant at a 95% confidence level of +/- 0.2 (an overall difference of 0.4 to conclude statistical significance).

18 EMOTIONAL ENGAGEMENT SOCIAL SCENES BOOST EMOTION IN SPANISH During social scenes, Emotion is better sustained in Spanish Heineken ENGLISH AD SPANISH AD

19 Keep language consistent Language switching taxes cognitive resources, decreasing the ad s effectiveness 10 average neurometrics during the first 10 seconds of ads SPANISH PROGRAM + ENGLISH AD ENGLISH PROGRAM + ENGLISH AD SPANISH PROGRAM + SPANISH AD MEMORY EMOTION ATTENTION

20 Creative Options Adaptation Original Creative Shadow Shoot Total Market Adapt English Language or Global Creative Develop separately to address different Hispanic strategies or nuances Shoot simultaneously to incorporate cultural cues One commercial shoot, identical/near identical execution with cultural difference 20

21 Adapted

22 Adapted

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24 Original

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26 Shadow Shoot: English Version

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28 Shadow Shoot: Spanish Version

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30 Total Market Strategy

31 4: Track & Measure

32 Measuring Success 1. Sr. Management holds business leaders fully accountable for Hispanic results 2. Shared scorecard on key metrics across disciplines 3. ROI not used as an excuse to exit the market 32

33 % Cumulative Conversion Rate SL Media Increase Conversion Across Pay Types For a Total lift of 7.6% New to Brand: Cumulative Conversion by Pay Type Test Control 1.80% 1.60% 1.40% 1.20% 1.00% ** 1.65% 1.47% * 1.38% 1.23% 1.01% 1.05% 0.80% 0.60% 0.40% 0.20% 0.00% Cash Third Party Medicare/Medicaid 6% of n 23,637 * Difference between test and control is statistically significant at the 95% confidence level ** Difference between test and control is statistically significant at the 90% confidence level Univision Hispanic Campaign Conversion Analysis 33 60% of n n = 246,089 Hispanic and non-hispanic patients had a similar distribution of payment type Patient Cohort classification based on last seen Rx in pre-period 34% of n n = 139,370

34 ROI Estimates SL Campaign Est. ~$3.40 ~$2.95 ~$2.50 $2.94 Mature Brands Avg. ROI $2.28 Recent Launch Avg. ROI IMS Health _ Univision Hispanic Campaign Conversion Analysis Nielsen Population Estimates SHS Audits Data Q Kantar Media Spend IMS PMSA ROI Bench Market Presentation

35 Your Roadmap STRATEGY Declare Hispanics as strategic business imperative Integrate at every step of the business planning process Resource appropriately RESEARCH & ANALYSIS Be inclusive of all customers Develop insights about the Hispanic consumer to learn how to best create a cultural connection Size the opportunity EXECUTE Embrace similarities and celebrate difference Execute with strategies appropriate for your brand & customers TRACK AND MEASURE Hispanic performance as a priority and included in scorecard Ensure measurement models represent our multicultural nation

36 Question