Marketing in a Culturally Diverse Marketplace - USTA.com
Marketing in a Culturally Diverse Marketplace USTA National Convention Destin, FL Maddie Pimentel February 5, 2005
The Hispanic community within the United States is increasing in affluence, education and purchasing power. The growth has been constant and remains on an upward trend.
USA Today June 19, 2003 USA Today announces Hispanics are largest minority in the United States
39 Million
Hispanics are the Majority Minority 2005 U.S. Hispanic Population
Hispanic 14.1% African American 12.5% Asian 4.1% Other 69.3%
One out of every 7 U.S. residents is Hispanic Source: The Multicultural Economy, Selig Center, UGA 2004; Arbitron Inc., 2004
Hispanics Continue as Majority Minority Projected U.S. Hispanic Population 2020
Hispanic 21% African American 12% Asian 6% Other 61%
One out of every 5 U.S. residents will be Hispanic Source: SRC, 2002 US Hispanic Market Report
National Hispanic Community Growth -According to the U.S. Census, there are more than 40 million Hispanics in the United States
National Hispanic Buying Power Growth 1990
2000
2004
2009
$221 B
$504 B
$686 B
$992 B
The Multi-Cultural Economy, 2004. The Selig Center for for Economic Growth, Terry College of Business, UGA.
Hispanic Population Growth 1990-2009
1990
2000
2004
Arizona
688K
1.3M
1.6M
2M
California
7.7M
11M
12.2M
14M
Florida
1.6M
2.7M
3.1M
3.8M
Georgia
108K
435K
682K
1.1M
Illinois
904K
1.5M
1.8M
2.1M
New York 2.2M
2.9M
3.1M
3.4M
Texas
6.7M
7.7M
8.9M
4.3M
Selig Center Study “The Multicultural Economy 2004”, UGA.
2009
Hispanic Percentages by City and County California 32.4% Los Angeles (City)
46.5%
Los Angeles County
44.6%
San Bernadino
39.2%
Kern County
38.4%
Ventura County
33.4%
Orange County
30.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County California 32.4% San Diego (City)
25.4%
San Diego County
26.7%
Imperial County
72.2%
Riverside County
36.2%
Orange County
30.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County California 32.4% San Francisco (City)
14.1%
San Francisco County
14.1%
Alameda County
19%
Contra Costa County
18%
Marin County
11.1%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Texas 32%
U.S. Census Bureau – Feb 2004
Houston (City)
37.4%
Harris County
32.9%
Ft. Bend County
21.1%
Waller County
19.4%
Galveston County
18%
Montgomery County
12.6%
Chambers County
10.8%
San Jacinto County
4.9%
Hispanic Percentages by City and County Texas 32% Dallas (City)
35.6%
Dallas County
29.9%
Denton County
12.2%
Kaufman County
11.1%
Rockwall County
11.1%
Colin County
10.3%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Texas 32% Austin (City)
30.5%
Hayes County
29.6%
Travis County
28.2%
Bastrop County
24%
Williamson County
17.2%
Blanco County
15.3%
Burnet County
14.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Arizona 25.3% Phoenix (City)
34.1%
Yuma County
50.5%
Pinal County
29.9%
Pima County
29.3%
Maricopa County
24.8%
La Paz County
22.4%
Gila County
16.6%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Florida 16.8% Miami (City)
65.8%
Miami-Dade County
57.3%
Broward
16.7%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County New York 15.1% New York (City)
27%
Bronx County
48.4%
New York County
27.2%
Queens County
25%
King County
19.8%
Richmond County
12%
Nassau County
10%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Illinois 12.3% Chicago (City)
26%
Cook County
19.9%
Lake County
14.4%
DuPage County
9%
Will County
8.7%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Georgia 5.4% Atlanta (City)
4.5%
Gwinnett
10.9%
Fulton
5.9%
DeKalb
7.9%
Cobb
7.7%
Clayton
7.5%
U.S. Census Bureau – Feb 2004
Hispanic Population Diversity in the United States
Mexican
25 M
66.9%
Central/South American 5.3 M
14.3%
Puerto Rican
3.2 M
8.6%
Other Hispanic
2.4 M
6.5%
Cuban
1.4 M
3.7%
U.S. Census Bureau – June 2003
THE 10 STATES WITH THE LARGEST HISPANIC MARKETS IN 2004 1. California $198.5 Billion 2. Texas $119.3 Billion 3. Florida $63.7 Billion 4. New York $56.6 Billion 5. Illinois $31.3 Billion
Definition of Buying Power: Simply defined, buying power is the total personal income of residents that is available, after taxes, for spending on goods and services that is, the disposable personal income of residents of a specified geographic area.
6. New Jersey $26.1 Billion 7. Arizona $20.9 Billion 8. Colorado $15 Billion 9. New Mexico $13.7 Billion 10. Georgia $10.9 Billion Source: Selig Center Study , “Georgia Business and Economic Conditions”, 2004
Hispanic Buying Power Growth 1990-2009
1990
2000
2004
2009
Arizona
$6B
$15B
$21B
$31B
California
$76B
$149B
$199B
$272B
Florida
$20B
$46B
$64B
$91B
Georgia
$1B
$6B
$11B
$20B
Illinois
$9B
$23B
$31B
$46B
New York $24B
$45B
$57B
$75B
Texas
$90B
$119B
$175B
$35B
Selig Center Study “The Multicultural Economy 2004”, UGA.
Hispanic Buying Power Growth
Between 1990 and 2009 Hispanic Buying Power is growing at an annual compound rate of 8.2% This is almost double the non-Hispanic buying power growth rate of 4.9% Selig Center Study “The Multicultural Economy 2004”, UGA.
Latino Immigrants Wire Billions Back Home Hispanics in the U.S. will send $30 billion home this year. Following are the states that send the largest amounts:
Passing Bucks Back Home, The Charlotte Observer, May 19, 2004, Noelle Phillips
1. California
$9.6B
2. New York
$3.6B
3. Texas
$3.2B
4. Florida
$2.5B
5. Illinois
$1.5B
8. North Carolina
$833M
Companies are taking notice of the tremendous growth in Hispanic population and buying power and are looking to market their goods and services to the fastest-growing segment of the market
Top 15 Advertisers in the Hispanic Market, 2003 Rank
Company
Gross Media Expenditures $M) 2000 2001 2002 2003
1
Procter & Gamble
$46.20
$55.00
$69.68
$80.13
2
Altria (formerly Phillip Morris)
$25.00
$25.00
$64.05
$60.74
3
General Motors
$16.20
$29.50
$50.63
$55.29
4
McDonald’s Corp.
$27.00
$27.00
$41.86
$48.15
5
Sears, Roebuck & Co.
$35.00
$38.00
$41.61
$42.53
6
Toyota Motor Corp.
$22.00
$22.00
$39.24
$40.00
7
Americatel
$25.00
$30.00
$32.93
$39.06
8
Pepsi-Cola Inc.
--------
-------
$34.73
$38.93
9
AOL Time Warner Inc.
--------
--------
$33.87
$36.86
10
Coca-Cola
---------
--------
$41.44
$34.88
11
AT&T
$35.00
$42.00
$44.82
$33.45
12
Johnson & Johnson
$17.00
$23.00
$25.77
$32.83
13
J.C. Penney Co.
--------
-------
$26.08
$32.52
14
Bally Total Fitness
--------
-------
$26.93
$32.05
15
SABMiller
--------
--------
--------
$26.94
“Media Markets Report” Hispanic Business Magazine, December 2003
Companies Catering to Hispanics • New Fisher-Price campaign focuses on Hispanics with the • • • • • •
tagline “Juegue con ellos. Rie con ellos. Crece con ellos.” (Play with them. Laugh with them. Grow with them.) Dora the Explorer is one of the most successful TV programs for Nickelodeon (Fisher-Price has a large Dora product line) Absolut Vodka launches it’s first marketing initiative designed to build brand awareness with Hispanics called “Absolut Ritmos” The Real Yellow Pages from BellSouth Hispanic Sections (Las Verdaderas Paginas Amarillas) grew from one section in Atlanta in 1999 with revenues of $385k to 15 sections in 2004 with more than $6.4 million in revenue Cingular Wireless launches internet portal “www.miventanamovil.com” Blockbuster to include bilingual signage & expanded Spanish-language selections in more than 1000 stores Snack food giant Frito-Lay unveils a new line of products aimed at Hispanics including corn chips with salsa verde flavor and “El Isleño” plantain chips.
The Informant, Hispanic Business Magazine, March 2003, p24.; The Hispanic Market Goes Wireless, Hispanic Business, March 2003, p. 50., Blockbuster Stores Get Hispanic Theme, Hispanic Business Magazine, January/February 2003, p. 17., Chip Maker Targets Hispanic Tastes, Hispanic Business Magazine, July/August 2002, p. 10. The Miami Herald.com, “Toy-makers make pitch to U.S. Hispanic market”, Christina Hoag, November 18, 2004.
Companies Catering to Hispanics • Walgreens launches Spanish-language website • • • • • •
www.WalgreensEspanol.com to become the first national pharmacy website designed specifically for Hispanics. Reader’s Digest has entered into a partnership with EMC the Americas LLC to produce “Selecciones at the Movies,” Spanishlanguage made-for-TV movies. Citibank launches a Spanish-language educational website, www.CuidaTuCredito.com. Radio Shack has launched an advertising TV campaign aimed at the U.S Hispanic market. Wal-Mart, Kmart & Big Lots nationwide are carrying ethnic foods, health products and beauty aids, such as: Goya, Gamesa, La Costena and Fiesta. Tribune Publishing launches New Spanish-Language Daily in Chicago, Hoy. Nationwide and Yahoo! En Español launch www.lamejorhipoteca.com to assist Spanish-speaking consumers with information, tools and resources regarding the purchase and financing of homes. Reporte Informativo, September 2-9, 2003 “Hispanic Target”; Reporte Informativo, August 26-September 2, 2003; Hispanic, p. 54, “Open Markets” September, 2003; Hispanic Business.com, August 12, 2003 ; Reporte Informativo, August 19-26 “Hispanic Target”
Companies Catering to Hispanics • Bank of America & Pfizer have launched advertising campaigns • • • • • • •
aimed at Latino Consumers. Beech-Nut Baby Food launches Spanish-language version of website, www.beechnut.com Dozens of other companies have constructed Spanish-language websites, including: Nissan North America, Office Depot and Honda Motors 2001 Miller Brewing Company doubles spending on Hispanic advertising 2000 Ford launches Spanish website “fordespiritu.com” P&G buys Information Resources Inc., a market research firm that tracks sales in Hispanic neighborhoods 2001 Liz Claiborne introduces Latin influenced fragrance “Mambo” 2001 Mars Inc. introduces new flavor “dulce de leche” Packaged Facts Market Profile: US Hisp.Market – Sept. 2001; Reporte Informativo, August 1926, “Hispanic Target”
Four Mistakes Marketers Should Avoid When Trying To Reach The Hispanic Market 1. Failure to cross the cultural divide One of the worst things a company can do is use the same marketing campaign to target Hispanics that it uses to target the main-stream market. 2. There’s Hispanic, and there’s multicultural Depending on how Hispanics are portrayed, a marketing campaign could actually end up offending rather than pleasing a Hispanic audience. 3. A lack of continuity If ads are in Spanish, follow through with Spanish customer service, email messages, sales material, etc. 4. Translations gone bad The most common mistake that marketers make is not paying enough attention to who is translating their copy. Marketing News, “Win Hispanic market with proper research,”, July 7, 2003, p.8.
Lost in translation ♦ Simply translating campaigns into Spanish can lead to
disastrous results “Got Milk?” “Cue” Toothpaste by Colgate “Calzones” “Finger Likin’ Good”
Gerber Baby Food in Africa used a picture of a baby on the label just as in the United States
“Are you lactating?” Same Name as a well-known French porno magazine “Underwear” “Eat Your Fingers Off” in Chinese African companies routinely put a picture on the label of contents since most people can’t read
Lost in translation (cont.) ♦ More examples… “Nova” “Avoid Embarrassment – Use Quink” “Fly in Leather” “Schweppes Tonic Water” “Bacardi Pavian”
•
“Doesn’t go” “Evite Embarazos – Use Quink” means “Avoid Pregnancy – Use Quink” “Vuele Encuero” means “Fly Naked” “Schweppes Toilet Water” in Italian “Baboon” in German
Another mistake is seeing Hispanics as a whole and failing to appreciate the cultural diversity within the Hispanic market
Traditional Foods…Beans Mexican
Refried
Cuban
Black
Central Americans Puerto Ricans Dominicans
Chick Peas (Garbanzos) Green Pigeon Peas (Gandules) Red (Kidney)
Hispanic Holidays… January 6 May 5 May 20
Three Kings Festival
Cinco de Mayo
Cuban Independence Day
September 16
November 1 & 2
Battle of Puebla Cuba – January 1
Liberation Day
Mexican Independence Day
Day of the Dead
Latinos Love When You “Speak Their Language” ♦ 69% of Hispanics prefer to read advertisement ♦
♦ ♦
in Spanish than in English only 50% of Hispanics say they remember more or pay more attention to products and services advertised in Spanish 47% report that they are much more loyal to companies that advertise in Spanish 44% feel that companies respect their heritage and really want their business when they advertise in Spanish
Packaged Facts Market Profile: US Hisp.Market – Sept. 2001
Top aspects of Hispanic Culture and Tradition for U.S. Hispanics: Family/Commitment to Family
56%
Spanish Language
54%
Respect for Elders/Parents
47%
Holidays/Celebrations
35%
Religion/Church
37%
Foods/Beverages
33%
Music/Songs
27%
Spanish Language Stories/Literature/Books 19% Yankelovich Study, 2003
Hispanics outspend all other groups in the following categories: •Children’s and Infant’s Clothing •Athletic Shoes and Clothing •Telephone Services •Groceries Arbitron 2004 Inc.
Marketing Fundamentals •Effective Hispanic marketing strategies do not stand alone •Organizations must have an integrated approach that combines advertising (PSAs) that meets in-language and in-culture needs, grass-roots community involvement and HR objectives that ensure diversity in hiring practices among other things. •Relationships are key when dealing with Hispanics
Grass Roots Efforts Event marketing (PR) is an effective way to approach Hispanics - Soccer Clinics set up nets/ Tennis Clinics set up ball machines - School Programs and Partnerships - Hispanic Chamber Partnerships
Spanish-Language Media to consider… - Television • On average, Hispanics report viewing 1 hour more of television •
per day than non-Hispanics. 70% report watching television in both English and Spanish, while 16% report watching Spanish television exclusively.
- Radio • Some of the top stations in L.A., Houston, Miami, NYC & • •
Chicago are Spanish-language Proportionately, more Hispanics listen to the radio than nonHispanics. 80% of Hispanics listen to Spanish language radio exclusively, while 47% report listening to the radio in both English and Spanish.
- Print (Newspapers & Magazines) - Direct Mail - Yellow Pages Advertising Source: SRC, 2000 U.S. Hispanic Market
USTA Website - En Español button -Spanish info -Press Releases -Calendar/Events
Effectively Communicate Don’t just focus on speaking the language; speak to their values, lifestyles and traditions
The Hispanic community within the United States is increasing in affluence, education and purchasing power. The growth has been constant and remains on an upward trend.
USA Today June 19, 2003 USA Today announces Hispanics are largest minority in the United States
39 Million
Hispanics are the Majority Minority 2005 U.S. Hispanic Population
Hispanic 14.1% African American 12.5% Asian 4.1% Other 69.3%
One out of every 7 U.S. residents is Hispanic Source: The Multicultural Economy, Selig Center, UGA 2004; Arbitron Inc., 2004
Hispanics Continue as Majority Minority Projected U.S. Hispanic Population 2020
Hispanic 21% African American 12% Asian 6% Other 61%
One out of every 5 U.S. residents will be Hispanic Source: SRC, 2002 US Hispanic Market Report
National Hispanic Community Growth -According to the U.S. Census, there are more than 40 million Hispanics in the United States
National Hispanic Buying Power Growth 1990
2000
2004
2009
$221 B
$504 B
$686 B
$992 B
The Multi-Cultural Economy, 2004. The Selig Center for for Economic Growth, Terry College of Business, UGA.
Hispanic Population Growth 1990-2009
1990
2000
2004
Arizona
688K
1.3M
1.6M
2M
California
7.7M
11M
12.2M
14M
Florida
1.6M
2.7M
3.1M
3.8M
Georgia
108K
435K
682K
1.1M
Illinois
904K
1.5M
1.8M
2.1M
New York 2.2M
2.9M
3.1M
3.4M
Texas
6.7M
7.7M
8.9M
4.3M
Selig Center Study “The Multicultural Economy 2004”, UGA.
2009
Hispanic Percentages by City and County California 32.4% Los Angeles (City)
46.5%
Los Angeles County
44.6%
San Bernadino
39.2%
Kern County
38.4%
Ventura County
33.4%
Orange County
30.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County California 32.4% San Diego (City)
25.4%
San Diego County
26.7%
Imperial County
72.2%
Riverside County
36.2%
Orange County
30.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County California 32.4% San Francisco (City)
14.1%
San Francisco County
14.1%
Alameda County
19%
Contra Costa County
18%
Marin County
11.1%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Texas 32%
U.S. Census Bureau – Feb 2004
Houston (City)
37.4%
Harris County
32.9%
Ft. Bend County
21.1%
Waller County
19.4%
Galveston County
18%
Montgomery County
12.6%
Chambers County
10.8%
San Jacinto County
4.9%
Hispanic Percentages by City and County Texas 32% Dallas (City)
35.6%
Dallas County
29.9%
Denton County
12.2%
Kaufman County
11.1%
Rockwall County
11.1%
Colin County
10.3%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Texas 32% Austin (City)
30.5%
Hayes County
29.6%
Travis County
28.2%
Bastrop County
24%
Williamson County
17.2%
Blanco County
15.3%
Burnet County
14.8%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Arizona 25.3% Phoenix (City)
34.1%
Yuma County
50.5%
Pinal County
29.9%
Pima County
29.3%
Maricopa County
24.8%
La Paz County
22.4%
Gila County
16.6%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Florida 16.8% Miami (City)
65.8%
Miami-Dade County
57.3%
Broward
16.7%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County New York 15.1% New York (City)
27%
Bronx County
48.4%
New York County
27.2%
Queens County
25%
King County
19.8%
Richmond County
12%
Nassau County
10%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Illinois 12.3% Chicago (City)
26%
Cook County
19.9%
Lake County
14.4%
DuPage County
9%
Will County
8.7%
U.S. Census Bureau – Feb 2004
Hispanic Percentages by City and County Georgia 5.4% Atlanta (City)
4.5%
Gwinnett
10.9%
Fulton
5.9%
DeKalb
7.9%
Cobb
7.7%
Clayton
7.5%
U.S. Census Bureau – Feb 2004
Hispanic Population Diversity in the United States
Mexican
25 M
66.9%
Central/South American 5.3 M
14.3%
Puerto Rican
3.2 M
8.6%
Other Hispanic
2.4 M
6.5%
Cuban
1.4 M
3.7%
U.S. Census Bureau – June 2003
THE 10 STATES WITH THE LARGEST HISPANIC MARKETS IN 2004 1. California $198.5 Billion 2. Texas $119.3 Billion 3. Florida $63.7 Billion 4. New York $56.6 Billion 5. Illinois $31.3 Billion
Definition of Buying Power: Simply defined, buying power is the total personal income of residents that is available, after taxes, for spending on goods and services that is, the disposable personal income of residents of a specified geographic area.
6. New Jersey $26.1 Billion 7. Arizona $20.9 Billion 8. Colorado $15 Billion 9. New Mexico $13.7 Billion 10. Georgia $10.9 Billion Source: Selig Center Study , “Georgia Business and Economic Conditions”, 2004
Hispanic Buying Power Growth 1990-2009
1990
2000
2004
2009
Arizona
$6B
$15B
$21B
$31B
California
$76B
$149B
$199B
$272B
Florida
$20B
$46B
$64B
$91B
Georgia
$1B
$6B
$11B
$20B
Illinois
$9B
$23B
$31B
$46B
New York $24B
$45B
$57B
$75B
Texas
$90B
$119B
$175B
$35B
Selig Center Study “The Multicultural Economy 2004”, UGA.
Hispanic Buying Power Growth
Between 1990 and 2009 Hispanic Buying Power is growing at an annual compound rate of 8.2% This is almost double the non-Hispanic buying power growth rate of 4.9% Selig Center Study “The Multicultural Economy 2004”, UGA.
Latino Immigrants Wire Billions Back Home Hispanics in the U.S. will send $30 billion home this year. Following are the states that send the largest amounts:
Passing Bucks Back Home, The Charlotte Observer, May 19, 2004, Noelle Phillips
1. California
$9.6B
2. New York
$3.6B
3. Texas
$3.2B
4. Florida
$2.5B
5. Illinois
$1.5B
8. North Carolina
$833M
Companies are taking notice of the tremendous growth in Hispanic population and buying power and are looking to market their goods and services to the fastest-growing segment of the market
Top 15 Advertisers in the Hispanic Market, 2003 Rank
Company
Gross Media Expenditures $M) 2000 2001 2002 2003
1
Procter & Gamble
$46.20
$55.00
$69.68
$80.13
2
Altria (formerly Phillip Morris)
$25.00
$25.00
$64.05
$60.74
3
General Motors
$16.20
$29.50
$50.63
$55.29
4
McDonald’s Corp.
$27.00
$27.00
$41.86
$48.15
5
Sears, Roebuck & Co.
$35.00
$38.00
$41.61
$42.53
6
Toyota Motor Corp.
$22.00
$22.00
$39.24
$40.00
7
Americatel
$25.00
$30.00
$32.93
$39.06
8
Pepsi-Cola Inc.
--------
-------
$34.73
$38.93
9
AOL Time Warner Inc.
--------
--------
$33.87
$36.86
10
Coca-Cola
---------
--------
$41.44
$34.88
11
AT&T
$35.00
$42.00
$44.82
$33.45
12
Johnson & Johnson
$17.00
$23.00
$25.77
$32.83
13
J.C. Penney Co.
--------
-------
$26.08
$32.52
14
Bally Total Fitness
--------
-------
$26.93
$32.05
15
SABMiller
--------
--------
--------
$26.94
“Media Markets Report” Hispanic Business Magazine, December 2003
Companies Catering to Hispanics • New Fisher-Price campaign focuses on Hispanics with the • • • • • •
tagline “Juegue con ellos. Rie con ellos. Crece con ellos.” (Play with them. Laugh with them. Grow with them.) Dora the Explorer is one of the most successful TV programs for Nickelodeon (Fisher-Price has a large Dora product line) Absolut Vodka launches it’s first marketing initiative designed to build brand awareness with Hispanics called “Absolut Ritmos” The Real Yellow Pages from BellSouth Hispanic Sections (Las Verdaderas Paginas Amarillas) grew from one section in Atlanta in 1999 with revenues of $385k to 15 sections in 2004 with more than $6.4 million in revenue Cingular Wireless launches internet portal “www.miventanamovil.com” Blockbuster to include bilingual signage & expanded Spanish-language selections in more than 1000 stores Snack food giant Frito-Lay unveils a new line of products aimed at Hispanics including corn chips with salsa verde flavor and “El Isleño” plantain chips.
The Informant, Hispanic Business Magazine, March 2003, p24.; The Hispanic Market Goes Wireless, Hispanic Business, March 2003, p. 50., Blockbuster Stores Get Hispanic Theme, Hispanic Business Magazine, January/February 2003, p. 17., Chip Maker Targets Hispanic Tastes, Hispanic Business Magazine, July/August 2002, p. 10. The Miami Herald.com, “Toy-makers make pitch to U.S. Hispanic market”, Christina Hoag, November 18, 2004.
Companies Catering to Hispanics • Walgreens launches Spanish-language website • • • • • •
www.WalgreensEspanol.com to become the first national pharmacy website designed specifically for Hispanics. Reader’s Digest has entered into a partnership with EMC the Americas LLC to produce “Selecciones at the Movies,” Spanishlanguage made-for-TV movies. Citibank launches a Spanish-language educational website, www.CuidaTuCredito.com. Radio Shack has launched an advertising TV campaign aimed at the U.S Hispanic market. Wal-Mart, Kmart & Big Lots nationwide are carrying ethnic foods, health products and beauty aids, such as: Goya, Gamesa, La Costena and Fiesta. Tribune Publishing launches New Spanish-Language Daily in Chicago, Hoy. Nationwide and Yahoo! En Español launch www.lamejorhipoteca.com to assist Spanish-speaking consumers with information, tools and resources regarding the purchase and financing of homes. Reporte Informativo, September 2-9, 2003 “Hispanic Target”; Reporte Informativo, August 26-September 2, 2003; Hispanic, p. 54, “Open Markets” September, 2003; Hispanic Business.com, August 12, 2003 ; Reporte Informativo, August 19-26 “Hispanic Target”
Companies Catering to Hispanics • Bank of America & Pfizer have launched advertising campaigns • • • • • • •
aimed at Latino Consumers. Beech-Nut Baby Food launches Spanish-language version of website, www.beechnut.com Dozens of other companies have constructed Spanish-language websites, including: Nissan North America, Office Depot and Honda Motors 2001 Miller Brewing Company doubles spending on Hispanic advertising 2000 Ford launches Spanish website “fordespiritu.com” P&G buys Information Resources Inc., a market research firm that tracks sales in Hispanic neighborhoods 2001 Liz Claiborne introduces Latin influenced fragrance “Mambo” 2001 Mars Inc. introduces new flavor “dulce de leche” Packaged Facts Market Profile: US Hisp.Market – Sept. 2001; Reporte Informativo, August 1926, “Hispanic Target”
Four Mistakes Marketers Should Avoid When Trying To Reach The Hispanic Market 1. Failure to cross the cultural divide One of the worst things a company can do is use the same marketing campaign to target Hispanics that it uses to target the main-stream market. 2. There’s Hispanic, and there’s multicultural Depending on how Hispanics are portrayed, a marketing campaign could actually end up offending rather than pleasing a Hispanic audience. 3. A lack of continuity If ads are in Spanish, follow through with Spanish customer service, email messages, sales material, etc. 4. Translations gone bad The most common mistake that marketers make is not paying enough attention to who is translating their copy. Marketing News, “Win Hispanic market with proper research,”, July 7, 2003, p.8.
Lost in translation ♦ Simply translating campaigns into Spanish can lead to
disastrous results “Got Milk?” “Cue” Toothpaste by Colgate “Calzones” “Finger Likin’ Good”
Gerber Baby Food in Africa used a picture of a baby on the label just as in the United States
“Are you lactating?” Same Name as a well-known French porno magazine “Underwear” “Eat Your Fingers Off” in Chinese African companies routinely put a picture on the label of contents since most people can’t read
Lost in translation (cont.) ♦ More examples… “Nova” “Avoid Embarrassment – Use Quink” “Fly in Leather” “Schweppes Tonic Water” “Bacardi Pavian”
•
“Doesn’t go” “Evite Embarazos – Use Quink” means “Avoid Pregnancy – Use Quink” “Vuele Encuero” means “Fly Naked” “Schweppes Toilet Water” in Italian “Baboon” in German
Another mistake is seeing Hispanics as a whole and failing to appreciate the cultural diversity within the Hispanic market
Traditional Foods…Beans Mexican
Refried
Cuban
Black
Central Americans Puerto Ricans Dominicans
Chick Peas (Garbanzos) Green Pigeon Peas (Gandules) Red (Kidney)
Hispanic Holidays… January 6 May 5 May 20
Three Kings Festival
Cinco de Mayo
Cuban Independence Day
September 16
November 1 & 2
Battle of Puebla Cuba – January 1
Liberation Day
Mexican Independence Day
Day of the Dead
Latinos Love When You “Speak Their Language” ♦ 69% of Hispanics prefer to read advertisement ♦
♦ ♦
in Spanish than in English only 50% of Hispanics say they remember more or pay more attention to products and services advertised in Spanish 47% report that they are much more loyal to companies that advertise in Spanish 44% feel that companies respect their heritage and really want their business when they advertise in Spanish
Packaged Facts Market Profile: US Hisp.Market – Sept. 2001
Top aspects of Hispanic Culture and Tradition for U.S. Hispanics: Family/Commitment to Family
56%
Spanish Language
54%
Respect for Elders/Parents
47%
Holidays/Celebrations
35%
Religion/Church
37%
Foods/Beverages
33%
Music/Songs
27%
Spanish Language Stories/Literature/Books 19% Yankelovich Study, 2003
Hispanics outspend all other groups in the following categories: •Children’s and Infant’s Clothing •Athletic Shoes and Clothing •Telephone Services •Groceries Arbitron 2004 Inc.
Marketing Fundamentals •Effective Hispanic marketing strategies do not stand alone •Organizations must have an integrated approach that combines advertising (PSAs) that meets in-language and in-culture needs, grass-roots community involvement and HR objectives that ensure diversity in hiring practices among other things. •Relationships are key when dealing with Hispanics
Grass Roots Efforts Event marketing (PR) is an effective way to approach Hispanics - Soccer Clinics set up nets/ Tennis Clinics set up ball machines - School Programs and Partnerships - Hispanic Chamber Partnerships
Spanish-Language Media to consider… - Television • On average, Hispanics report viewing 1 hour more of television •
per day than non-Hispanics. 70% report watching television in both English and Spanish, while 16% report watching Spanish television exclusively.
- Radio • Some of the top stations in L.A., Houston, Miami, NYC & • •
Chicago are Spanish-language Proportionately, more Hispanics listen to the radio than nonHispanics. 80% of Hispanics listen to Spanish language radio exclusively, while 47% report listening to the radio in both English and Spanish.
- Print (Newspapers & Magazines) - Direct Mail - Yellow Pages Advertising Source: SRC, 2000 U.S. Hispanic Market
USTA Website - En Español button -Spanish info -Press Releases -Calendar/Events
Effectively Communicate Don’t just focus on speaking the language; speak to their values, lifestyles and traditions
