Hispanic marketing is a primary growth strategy for Kraft Foods North America, and couponing is an important part of the effort. Over the holidays, Kraft distributed via direct mail "Comida Y Familia," a Spanish version of its "Food & Family" newsletter. Along with recipes and tips, the eight-page bilingual leaflet contained three coupons.
The pamphlet reached Hispanic households as part of a co-op program called Carmen's Cupones y Consejos (Carmen's Coupons and Tips), from Walters Media Group, Aliso Viejo, Calif. Along with Kraft, advertisers included America Online, Columbia House Latin Music Club, BMG Latin Music Club, Sears Catalog and Disney Home Video.
Northfield, Ill.-based Kraft focuses on three coupon-delivery methods for the Hispanic market: in-store, in-home and sampling events, said Deborah Mackiewicz, brand manager. While in-store couponing works well, the cluttered store environment poses certain challenges.
Direct-mail coupons have an advantage because a personalized mailing comes across as a greeting, Mackiewicz told SN.
"Direct mail provides an environment that's less cluttered and allows us to create more of a dialogue with Hispanics," she said.
All three of Kraft's coupons in the Carmen's mailing were bilingual. Two were for products Kraft developed specifically for the Hispanic market: Mayonesa con Limon and Kraft Singles Manchego.
A $1 coupon was offered with the purchase of one bottle of Mayonesa, mayonnaise made with lime juice, or Kraft Regular mayonnaise. A 55-cent coupon was offered with the purchase of one package of Kraft Singles Manchego or regular Kraft Singles. Manchego is a creamy cheese commonly used for making quesadillas and enchiladas.
A third coupon offered a free package of Jell-O (a brand that's popular in the Hispanic community) with the purchase of other participating Kraft products, including Ritz Crackers, Oreo and Cool Whip.
Kraft joins a growing number of other marketers that are using coupons to target Hispanics. Despite the notion that Hispanics don't use coupons, a study from NCH Marketing Services, a coupon processor, shows the opposite is true.
According to the study, 75% of Hispanics with high acculturation reported using coupons, compared to 62% with medium acculturation and 55% with low acculturation. NCH evaluated acculturation -- the process of learning a second culture -- based on several factors, including the amount of time spent speaking Spanish and watching Spanish-speaking TV programs.
Kraft agrees. It has found that Hispanics will respond to couponing as well as the general market, provided that the coupon is relevant to them and reaches them in the right way. "Hispanics are interested in saving money. The challenge for us is finding a way to get a coupon to them in the right environment," Mackiewicz said.
Kraft's bilingual coupons were distributed for a two-phase test of the Carmen's program last year. The first event, held in the spring, had a circulation of 500,000. The second, which ran in November, reached 1.3 million Hispanics. Names were obtained from Walters' proprietary database.
Another program is slated to run next month, with a circulation of 2.5 million. Kraft is not participating in that event, as it is still analyzing results of last year's test.
Shayne Walters, president of Walters Media, said Carmen's is an important tool for companies because it lets them reach consumers with a promotional message quickly and efficiently. This is especially important in the consumer packaged goods business, he said.
"Getting to Hispanics early is critical because if they try something and like it, they're likely to stick with it for life," he said.
He cited that direct mail has a psychological impact on Hispanics because it contains specific names and addresses.
"When Hispanics get personalized mail, it makes them feel important. From an emotional standpoint, this allows a brand to build loyalty," he said.
Along with direct-mail pieces, marketers are targeting coupon offers to Hispanics in other ways. Among them: distributing freestanding inserts in Spanish-speaking publications. Colgate-Palmolive, L'Oreal, Dr Pepper/Seven Up and General Mills participated this past November in a new FSI program involving Spanish-speaking newspapers.
The program is the result of a relationship between Valassis, a Livonia, Mich., marketing services firm, and Papel Media, which provides Hispanic media placement.
Valassis tested the program twice last year -- in September and November.
The program is rolling out nationwide beginning this week, with other drops during the weeks of May 4, Aug. 3 and Nov. 2. The coupons will be delivered as part of a 12-page FSI to the top 11 Hispanic markets, including Los Angeles, New York, Miami, Chicago, Houston, Dallas and San Antonio. Valassis declined to name participating brands, but said that some of the products featured in the test will be included.
