reaching untapped markets

Reaching Untapped Markets in the US

Targeting the Hispanic and Other Non-native English Speaking Markets

How to contact me

John WatkinsPresident

ENLASO Corporationjwatkins@translate.com

Tel: (208) 672-8500 x95

Why we are here

• Understanding different cultures in the US• Madeleine Albright started it:

– An address to the UN in 1996: Cuban jet fighters downed two unarmed civilian planes from Miami, she said, "Frankly, this is not cojones, this is cowardice."

• Volkswagen got it wrong

controversy in NY, LA and Miami

Overview

1. Key terms2. Identifying the market demographics3. Understanding the audience 4. When to translate5. Implementing effective strategies

(Examples)

Key terms

Globalization

Internationalization

Localization

• Locales – Combine place, culture, and local language.

• Globalization – Establish a plan to communicate a message or product to different locales.

• Internationalization – Create the “product” so that it can be easily applied to each locale.

• Localization – Modify the source product for each locale.

• Translation – Convert text from a source language into target languages.

• Interpretation – Simultaneous or sequential translation of the spoken word.

Key terms, continued

• SpanishAn Iberian romance language spoken by over 350 million people worldwide. The official language of more than 20 countries (and “official/unofficial” recognition in one state in the US – New Mexico). Includes 9 other closely related languages. Hispanic refers to a derivation from Spain, its people and culture.

• Indo-European LanguagesIncludes most languages of Europe and the Indic languages of India. These include the Germanic, Scandinavian, Romance, Baltic, Slavic, Iranian, Hindi, and Urdu languages.

• Asian and Pacific Island languagesChinese, Korean, Japanese, Vietnamese, Hmong, Khmer, Lao, Thai, Tagalog.

• Other languagesIncludes Uralic (Hungarian), Semitic (Arabic & Hebrew), African, and native North American languages along with indigenous languages of Central and South America.

Demographics (1)

• US population – By language spoken

Demographics (2)

• By English Ability

US English Language SkillBy Language Family

13.8

3.4 3.6

20.8

14.3

6.6 3.4

24.3

0

5

10

15

20

25

30

35

40

45

50

Spanish Indo-European

AsianPacific

Total

In M

illi

on

s

English

Limited

Note: Limited English means they self-ranked their English ability at less than “speaking very well” Data: US Census Bureau, 2000

Demographics (3)

• Population by Geography, by Language Spoken

Population by Geography

0.0 3.0 6.0 9.0 12.0

North East

Midwest

South

West

US

Re

gio

n

In Millions

Asian Pacific

Indo European

Spanish

Data: US Census Bureau, 2000

Demographics (4)

Language1990

Population2000

Population%

Change

Spanish 17,345,064 28,101,052 62%

Indo-European 8,790,133 10,017,989 14%

Asian Pacific 4,471,621 6,960,065 56%

• Population growth by language family

Data: US Census Bureau, 2000, by self-identified language

Demographics (5)

Language2000

Population2050

Population % of Population

Hispanic origin ~46,700,000 ~132,800,000Grow from 15%

to 30% of US

Asian origin ~15,500,000 ~40,600,000Growing from 5.1% to 9.2%

• Projections to 2050– The US population continues to become more racially

and ethnically diverse…

Note: By racial origin, rather than self-identified language, US Census released August, 2008Update: Time Magazine, September 2008, reports that influx has dropped from 1.8M in 2006 to 512K in 2007 as a result of economic changes in the US

Demographics (6)

• Hispanic population origins– Spanish-speakers are

the predominant market with ~50% of the foreign born US population coming from Central & South America

• 34.5% from Central America

• 9.9% from Caribbean• 6.6% from South America

– ~60% of the US Spanish-speaking population comes from Mexico

Data: US Census Bureau, 2000

Demographics Summary

• Nearly 50% of all non-English speaking households speak English less than “very well”

• Some metro areas have majority populations who do not speak English very well

• Both the Hispanic and Asian-Pacific populations have increased over 50% in 10 years

• The Hispanic population is the largest non-English speaking group in the US with ~60% of Mexican heritage

Understanding the Audience

• Focus on the US Hispanic Market– Demographics show that the Hispanic market predominates

in the US non-English speaking market space ->50%– >40% of new jobs have gone to Hispanic workers:

2.4M jobs since May 2005, nearly 1M to the Hispanic workers.

– Growth rate of the Hispanic consumer market• Spending growth rate of 7.7% per year –

three times the average US household value• Average spending is 106% of income• Current spending nearly $700B,

$250B from “low income” populations• Projected to $1T by 2010

– Over 2M small and midsize Hispanic-owned U.S. businesses, growing 7.6% per year, total revenues of $485B by 2010

Sources: HispanicBusiness.com, US Small Business Administration

Understanding the Audience

• Hispanic population homogenous language– Most requested foreign language is Spanish; however, – Regional differences in vocabulary

(Mexican, Cuban, Puerto Rican…)– Related languages (Iberian origin languages and

Central American indigenous languages)

Understanding the Audience

• Assimilation and integration– Original Assimilation Model

• Three generations result in cultural assimilation• Holds true for smaller population groups

– New model• Reduced assimilation • Supported by large populations sharing a common culture

(e.g., California, Texas, Florida)• 80% of US Hispanic population retains Spanish language

– Integration of Spanish & English (Spanglish)– Spanish remains primary language for many adults

Understanding the Audience

• Same word, different meanings– Agenciero: Guat. and Perú diligent // Cuba and Mex. removal agent

// Argent. lottery seller // Vulg. Chile. money lender– Apendejarse: Col., Pan. and Sto. Dom. to go soft in the head

// Cuba, Nicar. to get scared– Apensionar: to impose a tax or pension

// Col., Chile, Mex and Perú to become sad– Droga: drug // Fig. Col. and Ecuad. Annoying or bothersome person or thing

// Canarias, Navarra, Mex. Debt– Tiznado: blackened // Central America drunk person– Cartucho: cartridge // Chile (vulg) sexually inexperienced– Pico: beak, peak // Chile (vulg) male genital

// Col. kiss // Mex. picos = running shoes– Guagua: Chile baby // Cuba bus– Banqueta: stool // Mex. Sidewalk

Examples thanks to Spanish Back Office (spanishbackoffice.com)

Understanding the Audience

• Overseeing the Spanish language evolution– La Real Academia Española – Contributions from committees in every Spanish

speaking country– Aids in creating standardized Spanish with accepted

regional terminology

• Impact of education– >50% Latin American Hispanics in the US

do not have a high-school diploma– Reliance on regional vocabulary

Education demographics provided by the US Census, 2000

Effective Strategies

• Current Status– Common Sense Advisory research on Online retailers

responses to Spanish enquiries:• ~25% of companies respond to

Spanish-language questions on Web forms / emails• Of those, ~55% responded in Spanish, but only ~26% were useful• Some got all replies correct: Abebooks, Art.com, Chadwick’s, Crutchfield, Drugstore, Fresh

Direct, Home Depot, JC Whitney, Musician's Friend, Omaha Steaks, Quixtar, Real Music, Scholastic, Sears Holding, Sharper Image, Sportsmen’s Guide, and Zappos

– Impact of immigration reform– State requirements (e.g., medical/prescription info)– Periodic debate for US “National Language”

Experiment described in their study “Reach America’s e-Latinos – Otra Vez” by Don DePalma, May 2007See also www.commonsenseadvisory.com

Effective Strategies

• Reaching the audience– The US Hispanic market is large and growing– Companies are just beginning to reach these markets,

spending $3.3B for market of $700B– People prefer to hear your message in their

native language (new immigrants and first generation)– Translation could be a wise investment, but not a

monolithic approach to the Hispanic market

Effective Strategies

• What is communicated– Globalization defines the market strategy– Internationalization engineers source product

development so that it can be localized

• Verbal/Aural information – Interpretation• Printed information – Localization & Translation

Effective Strategies

• Interpretation– Spoken content from source language to target language

• In person• Telephone-based (connections in ~1 minute)

– Predominates in Healthcare and Legal applications– Project characteristics

• On-demand service• Reliance on technological infrastructure• Fast-paced, 24/7 service

– Vendor characteristics• Appropriate skills with interpretation resources• Availability• Cost

Effective Strategies

• Interpretation examples– Hospitals

• Patient registration• Physician assistance

– Legal• Interviewing & depositions• Court testimony

– Voice mail systems• “Press 1 for English, Press 2 for Spanish”• Connect to Online interpretation

Effective Strategies

• Localization– Customize content and “packaging” for other locales

• Multiple language support in one product (e.g., software and support content)

• Unique product “look and feel” in each language (e.g., locale-specific Web sites, consumer products)

– Project characteristics• It is new: Naiveté of localization customer

(not used to thinking about Non-English speaking consumers)• Large number of small projects• Fast turn around• Less expensive (US resources)• Targeting correct market (language base and reading level)

– Vendor characteristics• Experience with US Non-English speaking market• Understanding of language needs (which Spanish for what market)• Linguistic resources with appropriate marketing, legal, medical, educational

background• Capability to execute QA with appropriate US-market representatives

Effective Strategies

• Localization examples– Product materials

• Packaging• Installation instructions• User manuals

– Retail• Web site support• Store signs

– Customer surveys– HR materials

• Employee enrollment• Benefits information• Memoranda

– Legal & Financial• Notices• Disclosures• Agreements

Examples

• Restaurants – McDonald’s– Icons– US Hispanic Market– High turnover– ESL employees– Hispanic marketing

Examples

• Business-to-BusinessHP– In spring 2004,

established a division devoted to U.S. Hispanic

– Surveyed customers for marketing preferences (mail)

– Mailed Spanish Catalogs – Dedicated online portal to

US Hispanic business market

Examples

• Consumer ProductsScotts (e.g., Miracle Gro)– Packaging materials with bilingual instructions

Examples

• LegalLoan Origination Agreement

Examples

• Medical Consumer– Healthwise (www.healthwise.org)– Helping consumers make effective wellness decisions– www.kp.org/health

Conclusion

• Demographics– Increasing presence of Non-English speakers in the US– Spanish speakers predominate

• Understanding the Market– Hispanic market is not homogenous– Significant market size with remarkable growth rate

• Effective Strategies– Communicating with the audience is a primary step– Interpretation– Localization/Translation

Further information

• US Census Bureau: www.census.gov• Hispanic Business Web site (

www.hispanicbusiness.com)• Common Sense Advisory

(www.commonsenseadvisory.com)• MultiLingual Magazine (www.multilingual.com)• ENLASO white paper

http://www.translate.com/Language_Tech_Center/Articles/Marketing_to_the_Hispanic_Market.aspx

http://www.translate.com/Language_Tech_Center/Articles/Spanish_Speakers_in_the_US.aspx • McDonalds icon case study

http://www.translate.com/Language_Tech_Center/White_Papers/Content/

115_McDonalds_Nutrition_Icons_Case_Study.pdf

Thank you!

Any questions?

Contacts

• John Watkins (208) 672-8500 x95jwatkins@translate.com