Kraft Foods visits African-Americans at home to help grocers reach them in stores.
When Kraft Foods wanted to define the “essence of Mom” among African-Americans, it joined them in the kitchen. There, Kraft learned about family, church, community – Oh yeah, and food.
“Cooking will never just be cooking,” says Jill Rahman, Kraft director of ethnic marketing and external relations. “Food is the hub of family interaction. It’s where we retain a lot of our heritage. [African-Americans] may drive the same cars and wear the same clothes as the general population, but we keep traditional foods.”
Kraft overlaid its own videotaped interviews with syndicated research to create profiles of African-American and Hispanic consumers, then shared it with retailers to spur joint marketing programs.
“Grocers know what consumers are buying, but not why,” says national ethnic sales manager Reese Perry. “When they understand the essence beyond the purchase, they can be more proactive – instead of just keeping items stocked.”
African-Americans and Hispanics do more advance planning, more scratch-cooking, and prepare more complete meals than general-market consumers. Both ethnic groups spend a higher percentage of household income on food for the home: 10 percent for African-Americans and 12.3 percent for Hispanics, versus 8.3 percent for the general market. (Spending on food away from home is 4.1%, 5.4%, and 5%, respectively.) Bigger families and lower average incomes mean that both groups eat more meals at home than the general population, and therefore spend more at the supermarket. Blacks spend an average $5,600 annually on groceries, Hispanics $5,300. That compares to only $4,305 for the general market. “Food is a very important part of the family budget, so they take shopping for food at home very seriously,” Rahman says.
What’s more, spending power is on the rise, with blacks accounting for more than $500 billion in annual spending and Hispanics nearly $400 billion. Bigger wallets, coupled with cultural traditions in cooking, could mean more rings at checkout.
Most blacks (60%) and Hispanics (71%) say they love to cook (only 53% of the general market does). Both groups spend an average 47 minutes preparing a meal, compared with 34 minutes for the general population. While 46 percent of blacks and 32 percent of Hispanics plan a meal the day before, only 29 percent of the general market does.
“African-American moms have a heritage of cooking, and they believe they’re great cooks,” Rahman says. On Kraft’s videotaped interviews, women say, “Sunday is our holiday, our family day.” One woman confesses that she only tells an entire recipe to her nieces, whom she’s teaching to cook. Another lectures that potato salad is no good with mayonnaise, but great with Miracle Whip. (When Kraft showed the tape at the Food Marketing Institute show in May, that line got a laugh and a round of applause from blacks in the audience.)
Lifestyles Differ African-Americans also prefer to make one big shopping trip, usually on Sunday, Monday, or Tuesday. They like one-stop shopping, and want more service from grocers. Eighty-seven percent of African-Americans and 76 percent of Hispanics are more likely to buy from companies that contribute to the community. While African-American moms prefer to shop alone, Hispanics shop as a family (43 percent with husband, 35 percent with kids).
Both groups are also very involved with church: 80 percent of Hispanics and 73 percent of blacks say religion plays a very important role in everyday life, versus 46 percent of the general population.
“Churches are a potential partner in marketing,” says Rahman, and Kraft has approached grocers about partnering with neighborhood churches. “We want to celebrate their heritage, partner in their communities, and find appropriate ways to celebrate their connection to church, like donating money for choir robes,” she explains. “We stay away from exploitation, but churches have a lot of needs.” Kraft encourages grocers to host events and donate dealer-loader items such as computers and electronics to churches and schools.
For three years, Kraft has sponsored community service awards from the NAACP and the National Council of La Raza, each bearing the service organization’s brand for the first time this year. Kraft joins the nonprofits to judge entries, then donates $5,000 to each winner’s local chapter.
Kraft also teams with grocers for ethnic events like Black History Month. Last year, San Antonio-based HEB’s pantry division called Kraft, which put together an offer for a videotape of African-American athletes and their impact on society. Shoppers got the video for $6 with three Kraft proofs of purchase, and for less if they used a frequent-shopper card or coupons.
“African-Americans outspend the general market on the most profitable items in the store,” says an executive from Target Market Research, a Chicago-based firm specializing in African-American consumer data. “These consumers are valuable not only for what they’re buying, but for what goes with what they’re buying.”
And, apparently, for the sentiment behind those purchases.
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