Hispanic Marketing
The February issue of CGT focused on new product development and introduction and cited IRI's report identifying three emerging markets. Specifically, the report stated, "No other population in history has demonstrated such growth, both in terms of sheer number and spending powers. And the ethnic diversity within the Hispanic population brings a whole new level of complexity to any attempt to serve the market."
According to ACNielson, "Hispanic disposable income is up 29 percent since 2001 -- over two times the growth among the general U.S. consumer." (Consumer Insight Magazine, "The Hispanic Consumer's Shopping List" by Kylie Hall Marketing, ACNielsen Consumer Segmentation & Targeting Chris Hammer Marketing, ACNielsen) Thus, while the market potential is tremendous, this is a complicated population to serve and consumer goods (CG) companies that already understand this are starting to leverage the demographic. Others must start forming strategies or risk losing this significant segment of the population.
Statistics state that one in five people in the United States is Hispanic, and they now compose the largest minority group in the country. According to the 2004 report, "The Hispanic Market in 2010," conducted by The Conference Board, Hispanic households will reach 13.5 million by 2010. The report breaks out income by ethnicity as follows: By 2010 these households will control $670 billion in personal income, with Mexican-American households accounting for $409 billion of this total; Central and South American households will earn$107 billion; Puerto Rican households - $65 billion; Cuban household - $32 billion; and the remaining $56 billion being earned by Spanish, Dominican and other Hispanic households.
Other notable statistics according to the Census Bureau report issued in February 2007, "The American Community -- Hispanics: 2004:"
- Hispanics have a larger proportion of young people and smaller proportion of older people.
- Hispanic woman were more likely to have given birth in the past year surveyed; 26.2 percent have five or more people in the household; 19 percent of households were maintained by women.
- At the time, 80 percent of all Hispanics in the United States lived in nine states.
KNOW THE DIFFERENCE
According to Ahorre Marketing, "Each Hispanic group has its own set of values and traditions. Food and festivals vary; beliefs and traditions influence how they live everyday. Financial services and consumer goods are viewed much differently by Hispanics than by Americans."
According to Ahorre Marketing, "Each Hispanic group has its own set of values and traditions. Food and festivals vary; beliefs and traditions influence how they live everyday. Financial services and consumer goods are viewed much differently by Hispanics than by Americans."
Laura Sonderup, Director of Heinrich Hispanidad, in her article "Hispanic Marketing: A Critical Market Segment," says that the biggest mistake a consumer goods company can make is to view the U.S. Hispanic market as homogeneous.
"Marketers cannot simply transfer directly to the U.S. Hispanic market the conceptualizations or marketing strategies that work with the general market. Many factors -- historical, contextual, cultural, demographic, financial -- place Hispanic consumers in a different category. Brand awareness and usage levels are often dramatically unlike general market patterns and different product attributes are deemed important by Hispanic consumers," she explains.
In order to successfully market to Hispanics all these factors must be considered and addressed. Marketingprofs.com outlines "The Top Three Mistakes in Hispanic Marketing."
1. Advertising for service-related products, but not educating; 2. Translating accurately -- but not in a culturally appropriate way; and 3. Marketing without bilingual or bicultural staff. The article goes on to say that marketing campaigns targeting the Hispanic community should have a "holistic approach."
IN THE STORE
Another vital factor for winning at the shelf here is helping your retail partners to understand these consumers. Unilever conducted research and released a report called, "Winning the Hispanic Shopping Trip," to help retailers identify considerable opportunities in this market. The study revealed that "three times as many Hispanics said they wished they had gone to another store."
Another vital factor for winning at the shelf here is helping your retail partners to understand these consumers. Unilever conducted research and released a report called, "Winning the Hispanic Shopping Trip," to help retailers identify considerable opportunities in this market. The study revealed that "three times as many Hispanics said they wished they had gone to another store."
From trip planning and trip type to how "she" shops and how she gets there, Unilever uncovered substantial differences between the Hispanic shopper and the general market, and gained valuable insight into how to attract this consumer. With each insight, the report offers an "opportunity" and provides specific scenarios and solutions.
QUE PASA AHORA?
Santiago Blanco, assistant vice president, Hispanic marketing, Coca-Cola North America, says, "The Coca-Cola Company's approach to the Hispanic market focuses on three areas: Consumer leadership, customer leadership and franchise leadership. Our consumer effort is centered on occasion based marketing. That is, we look at occasions when Hispanics are most likely to consume beverages and then target those occasions with the right products and the right messages. Our customer efforts focus on our Tienda Program, where we bring to life our consumer messaging in stores with high numbers of Hispanic shoppers. We provide franchise leadership to our system through eleven field representatives who ensure that our efforts are relevant everywhere we engage.
Santiago Blanco, assistant vice president, Hispanic marketing, Coca-Cola North America, says, "The Coca-Cola Company's approach to the Hispanic market focuses on three areas: Consumer leadership, customer leadership and franchise leadership. Our consumer effort is centered on occasion based marketing. That is, we look at occasions when Hispanics are most likely to consume beverages and then target those occasions with the right products and the right messages. Our customer efforts focus on our Tienda Program, where we bring to life our consumer messaging in stores with high numbers of Hispanic shoppers. We provide franchise leadership to our system through eleven field representatives who ensure that our efforts are relevant everywhere we engage.
Last November, Coca-Cola launched Full Throttle Blue Demon to address one aforementioned occasion. Blanco explains that Hispanic males regularly work long hard hours and need a beverage that provides them with energy to get them through their daily challenges. Full Throttle Blue Demon contains Blue Agave Flavoring, comes in Coke's first fully bilingual package and pays tribute to one of Mexico's greatest Lucha Libre stars: Blue Demon.
"Through exhibition wrestling matches featuring Blue Demon, Jr., at events like Calle Ocho in Miami, we continue to connect Full Throttle Blue Demon to the Hispanic community," notes Blanco. He adds that the company will be launching further initiatives throughout 2007, which target other occasions and have the goal to position the right products, in the right packages for the right occasion.
Paul Mendieta, marketing director, Latin America and US multicultural markets for Coors talks about the company's multicultural marketing strategy. "Coors focuses on creating advertising and promotions that are relevant and make an emotional connection with our consumers, and this includes multicultural consumers. In 2007, Coors will increase its focus on the multicultural consumer via advertising, marketing and promotions and the expanded role of Mauricio Cardenas, chief officer, Latin America and U.S. multicultural markets, to oversee the company's multicultural marketing efforts," he explains.
Research shows Hispanics have high affinity for the Coors Light brand. "Every can of Coors Light has the tagline The Silver Bullet in English on one side of the can and in Spanish on the other side -- La Bala de Plata. Coors Light also released commemorative bilingual Super Bowl packaging in key markets at the end of last year," says Mendieta. CG