linked in facebook twitter rss

  • Interbrand
  • Brandchannel

your chance!
your chance!
Goya is Big, But Not Great (Yet)
also of interest...
     
  Larry Lucas and Jorge Aguilar Goya is Big, But Not Great (Yet)
by Larry Lucas and Jorge Aguilar
February 16, 2009

When you think about prepared Hispanic foods, Goya is the brand that most likely comes to mind. Around since the 1930s, it offers hundreds of products, has gained access to both Hispanic and mainstream retail outlets and has spent tens of millions of dollars in television advertising. Unequivocally, Goya Foods is a large, successful company.

 
 

Many brands are at a similar impasse, investing significant resources in the quest to become authentic Hispanic brands. But they end up stuck in the middle, unable to connect with this demographic group and undifferentiated against competition. Why?

At the most basic level, one explanation is the tendency of marketers to approach Hispanics as a single group when, in fact, there are a variety of fundamental differences within it. Fortunately, an increasing number of businesses are realizing this and are exploring ways to segment the Hispanic market. A basic Google search, for example, reveals a handful of segmenting variables that are being used today. While they are a good starting point, these variables are less than ideal. Here’s why:

Generation: Many believe Hispanic attitudes and behavior are generation-dictated. Not necessarily. While differences exist among first- and second-generation Hispanics, common attitudes can bridge the gap among generations. In our experience, regardless of generation, customer segments that share a hectic lifestyle are willing to pay for products and/or services that help them simplify their lives.

Country of origin: While country of origin can influence culture, beliefs and opinions, there are enough similarities to assist in cross-country segmentation. Why should a Mexican think differently than a Venezuelan when buying a car or a home? Country of origin is probably more effective in profiling customers rather than segmenting them.

Orientation toward family: Many ads targeted at Hispanics depict a big family celebration, as some marketers think that all Hispanics are family oriented. In fact, while there are segments that are defined by their family ties, others are more motivated by a different set of values, such as the level of service they receive during the shopping experience.

Importance of brand: Another fallacy is that Hispanics tend to buy based on brand recognition, preferring what they already know to minimize risk. This isn’t universally true. As in any demographic group, a segment exists that actively looks for and purchases new products and services—the early adopters. Not all Hispanics are risk-averse.

Product usage: A Goya manager once said, “In Latin America we are united by the language and separated by the bean,” implying that customers can be effectively segmented by what they buy. Segmenting via purchase behavior, however, presents an incomplete picture and produces a segmentation solution that is not stable over time. Think about segmenting customers in the cell phone category based on what product they currently use. This segmentation solution would change every six months and thus hinder the creation of strategies that work over time. Marketers need to understand the motivation for why customers choose the model they do.

Language: Another popular notion is that English-language ads are less effective than Spanish-language ads in reaching this group. Reaching customers in their preferred language is necessary, but not sufficient to be successful. The most critical issue is identifying the type of message that resonates best with Hispanic segments. Finding the right vehicle and language should flow from there.

Marketers are challenged to evolve their thinking about the Hispanic market in a way that will result in segments that are differentiated, meaningful, accessible and stable over time. While the actual variables differ among categories, these most likely will cover not just demographics, but also needs, attitudes and purchase behaviors. In the food category, for example, variables such as cooking involvement, the need for simplification, the balance between taste and health, and social reassurance are critical to understanding how Hispanic customers approach food and the role it plays in their lives.

Back to Goya. One of the characteristics of top-performing companies is that they evolve to sustain their leadership position. Goya is no exception. It recently launched a set of new products that respond to customer needs for convenience and health. As part of this effort, Goya partnered with the American Diabetes Association to revise some of its recipes to be more appropriate for individuals with diabetes. In commenting on the initiative, Goya said: “Offering healthy choices is a natural progression for Goya Foods and is in keeping with our commitment to producing the best-tasting, highest quality food for our customers.”

There was no mention of generation or country of origin—just a genuine, differentiated response to customer needs. That’s why Goya will evolve from big to great.

 
   
   Larry Lucas and Jorge Aguilar are an associate partner and engagement manager, respectively, with Prophet, a global consultancy that helps senior executives more effectively use branding, marketing and innovation to drive profitable growth. They can be reached at llucas@prophet.com and jaguilar@prophet.com.



 
 commenting closed Add Social Bookmark bookmark  print
 suggest topic  recommend ( 26 )  email

Goya is Big, But Not Great (Yet)
 
 Goya may be shifting its focus from leveraging its Hispanic origins to becoming a more health oriented and taste driven brand, but I don’t think simply making the shift secures greatness in the market. Many of their competitors already have well established ties with organizations promoting health conscious awareness issues, and with the recent health craze this market is flooded. Like all brands they must find a way to considerably differentiate themselves, and I don’t think we have seen that yet; simply offering “new healthy choices” is not enough to get Goya from “good to great”, although perhaps a good start. Just a side note - didn’t Goya completely rip off Smucker’s age-old tagline? Look into it. 
Adam Barocas, Creative Brand Developer, Brand Institute - February 16, 2009
 
 Very good points on Hispanics overall. One point I always argue with is the family orientation. While it may be true that there is a communal and family-centric rooted sense in us, what about the hip, single, career minded twenty something male or female who is very aggressive in their career and is not looking to get married and have kids yet? There are those out there that don't want to be like mom and dad just yet. Maybe they're bilingual, maybe they're not. There are cultural cues that they will resonate with, but it may not necessarily be part of the overall family or language concept. You're right about the customer segments that will pay/buy for convenience, simplifying their lives. The message, tone and imagery are key. I think we all agree, we're not a monolithic or monochromatic group. The question is, does Goya approach us in this way? 
Joe Ray, President/Creative Director, Estudio Ray - February 25, 2009
 
 Definitely what you mention in regards country of origin is one of the most important factors that US firm have to consider; one of the best examples is what is happening with the Spanish TV Channels and Radio here in south Florida. I think they haven’t realized that among all Hispanics living in SF, we all are not Cuban Americans. 
Carlos M. Baldo - March 7, 2009
 
  brandchannel brandspeak archive   2010  | 2009  |  2008  |  2007  |  2006  |  2005  |  2004  |  2003  |  2002  |  2001
 
 
Nov 13, 2009 Employees Are the Brand -- William Arruda
  Brand outward by looking in.
   
 
Oct 16, 2009 Branding Airports -- Brian Rodino
  Why branding airports will fly.
   
 
Oct 7, 2009 The Demise and Rise of Branding -- Denise Lee Yohn
  The basics for branding through bad times.
   
 
Sep 14, 2009 A New Sustainable Language for Business -- Melissa Davis
  Why sustainability has 28 million definitions.
   
 
Aug 31, 2009 How Can Your Packaging Become Disruptive? -- Ted Mininni
  Get shelf-help with disruptive packaging.
   
 
Aug 17, 2009 Four Opportunities to Strengthen a Brand Community -- Lara Lee
  The keys to resolving hidden tensions online.
   
 
Aug 3, 2009 Why Packaging Matters More than Ever -- Ted Minini
  Now is the time to keep design in mind.
   
 
Jul 20, 2009 Branding Beauty in an Ugly Economy
  How cosmetic brands can look good in a bad economy.
   
 
Jul 6, 2009 Continuity in Brand Packaging: When is it Important?
  Why the past belongs in packaging.
   
 
Jun 22, 2009 Build Your Brand from the Inside Out -- Morgan Daloisio
  Engage employees as brand proof points.
   
 
Jun 8, 2009 How Can You Mend a Broken Brand? -- Michael Stone
  How licensing allows broken brands new life.
   
 
May 25, 2009 Painful Economic Contractions Can Be a Good Thing -- Claire Ratushny
  Brands live and die in a recession.
   
 
May 11, 2009 Put Your Message in the Moment: What Can and Can’t Be Said Now -- Mark Thomson
  Allowing consumers behind the branding curtain.
   
 
Apr 27, 2009 Economy Spells Opportunity to Evaluate Brand Portfolio -- Larry Lucas and Jorge Aguilar
  Take a tough look at hard assets.
   
 
Apr 13, 2009 Achieving Accountable Marketing: Six Critical Value Levers Must Be Pulled -- Michael Dunn
  How accountable marketing adds value.
   
 
Mar 30, 2009 Get Back to Basics. Win Back the Trust. -- Ted Mininni
  How to build faith in unbelievable times.
   
 
Mar 16, 2009 Time for a Brand Stimulus Package -- Kevin Randall
  How strong brands react to a weak economy.
   
 
Mar 2, 2009 Get Real -- Claire Ratushny
  Brand survival in a recession.
   
 
Feb 2, 2009 How Strong is Your Brand? -- Denise Lee Yohn
  How brands can thrive in an economic dive.
   
 
Jan 19, 2009 A Dimensional View of Experiential Marketing -- Gavin Finn
  How virtual branding creates real loyalty.
   
 
Jan 5, 2009 Brands: Taking a Narrow View -- Chris Heile
  Why brands should target some rather than most.