"u.s. hispanic market info & insights" – by michelle villalobos, former publisher...

US Hispanic Market

1

Copyright 2007, Mivista Consulting. This report may not be altered, reprinted, published or disseminated to the public without the sole written permission of Mivista Consulting ([email protected])

U.S. Hispanic Market Insights

US Hispanic Market

2


• As of 2006, the market represented a total spending power of almost

$800 billion

• Spending power is estimated to grow to $1.2 trillion by 2011

• Less media saturated

• More likely to ACT on marketing messages

• Must be addressed and engaged differently - require specialized

strategies

• Hispanics strongly influence popular culture

• They are more brand-loyal

• Media-mix will be different due to different media consumption habits

• In 2004, 37% of non-Hispanic whites thought Latinos influenced everyone's

lifestyle; now, it's 44%

• “Reverse Acculturation” phenomenon

The challenges are great, but the opportunities are vast.

U.S. Hispanic Market - Relevance

Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Hispanic Market Weekly: "A Hispanic Vote For Advertising, September 24, 2007

US Hispanic Market

3


Overview - Macro Perspective

Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Latin Force Group, LLC, American Marketscape DataStream, 2008 Series.

U.S. Hispanic Market Overview - Macro

Change in Population 2000 - 2006

• In 1967 the U.S. population was 200 million, in 2007 it is over 300 million

• About 53% of the extra 100 million people are recent immigrants or their descendants

• U.S. population growth is around .894%/year, the world's highest among developed countries

• The U.S. Hispanic population grew over 3% between 2003 and 2004

• Hispanics comprise the country's largest immigrant community

• In 5 years, the US Hispanic population has grown 24%

• Hispanics about 10 years younger than general market • There are about 45 million Hispanics in the USA.

• Hispanics comprise about 15.5% of the US population

• They are estimated to grow to over 25% by 2050

• Population trending away from rural areas

• Mean population center has moved West and South

• Growth due to immigration plus higher birthrate

US Hispanic Market

4


Age• The U.S. Hispanic population is substantially younger than the general population

Income• U.S. Hispanic income tends to be lower than general market income

Education• High-school education gap is close to general population, college isn't

Country of Origin Attachment• Native country influences food, music and other preferences, • Affects where immigrants settle in the U.S.

Consumer Spending• Purchasing habits

Acculturation & Language• Hispanics vary widely with respect to language preference and other acculturation indicators

Media Consumption Habits

Attitudes• Family, religion, politics and more

U.S. Hispanic Market Overview - Population Growth & Characteristics

Overview - Hispanic Market Overall Characteristics

US Hispanic Market

5


25.9

35.4

26.2

35.5

26.4

35.7

26.7

35.9

26.9

36.0

27.2

36.2

27.4

36.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Median Age

2004 2005 2006 2007 2008 2009 2010

Median Age for General Population vs US Hispanics

Hispanic Population General Market

Age

U.S. Hispanic Market Population - Age

Source: US Census Bureau, American Community Survey2005

US Hispanic Market

6


Income


$52,632

$33,362

$65,769

$39,476

$49,806

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Median Household Income

White Black Asian/Pacific Islander Hispanic Total

Source: Latin Force Group, LLC, American Marketscape DataStream, 2008 Series

US Hispanic Market

7




$64,488

$44,093

$75,234

$49,458 $49,806

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Mean Household Income

White Black Asian/Pacific Islander Hispanic Total

Income

US Hispanic Market

8




Over two-thirds of Hispanic Households earn over $25,000/year

Under $15,000/year16%

$15,000 to $24,99915%

$50,000 to $99,99927%

$25,000 to $49,99933%

Over $150,000$100,000 to $149,999

6%

Income

US Hispanic Market

9



Education

As of 2006

• 86% of all U.S. adults 25 and older have at least a high school diploma

59.0% of Hispanics over 25 have a high school diploma or higher

• 33.4% of the general U.S. pop over 25 has an associate's degree or

higher

16.0% of Hispanics have an associate's degree or higher

• 25.3% of the general population over 25 has a college degree or higher

10.7% of Hispanics over 25 have a college degree or higher

Source: Annual Social and Economic Supplement to the Current Population Survey (CPS), U.S. Census, 2006

US Hispanic Market

10


Most Hispanic immigrants maintain some kind of connection to their native country through "transnational activities," which are: sending remittances, traveling back, or telephoning relatives, but the extent of their attachment varies considerably.

Of foreign-born Hispanics:• 9% do all 3 of these • 28% do none of these activities • 63% engage in 1 or 2 of these activities

There are significant differences by country of origin:

• Colombians and Dominicans maintain more active connections than Mexicans

• Cubans have the least contact

Source: Pew Hispanic Center

Attachment to Country of Origin

U.S. Hispanic Market - Attachment to Country of Origin

US Hispanic Market

11



• Hispanic spending is substantial in all major categories

• Difference from General Market due in large part to their youth and large family size

• Top three categories for expenditures are: Shelter & Insurance Food & Beverage Transportation & Insurance

• Within the Food category, Hispanics over-index (spend more per household than the average multicultural household) in these categories:

Fresh Vegetables Fish & Seafood Fresh Fruits Eggs Beef

• Natural foods

• Emphasize quality

• "Homemade"

Consumer Spending Habits


US Hispanic Market

12


Attitudes


• Family

• Health/weight

• Gender

• Religion

• Success/achievement/future

• Pride in culture/heritage

• Country of origin

• Politics

• Education

• Collectivism

• "Destino"

• Discrimination

• Duality

• Money/waste

• Time

Source: Pew Hispanic Center: National Survey of Latinos: Education, 2004

Source: Hispanic Marketing Insights Inspired by Latin American and U.S. Popular Literature," Holly McGavock, M.A., Felipe Korzenny, PH.D. at the Center for Hispanic Marketing Communication, Florida State University, 2007.

US Hispanic Market

13



Americanizado• English dominant (nearly no Spanish)

• Born in the USA• Few Hispanic cultural practices

Nuevo Latino• English preferred (some Spanish)• Born in the USA• Some Hispanic cultural practices • Often "retro-acculturated"

Bicultural• Bilingual (or nearly)• Immigrated as child or young adult• Many Hispanic cultural practices

Hispano• Spanish preferred (some English)• Immigrated as an adult, in USA 10+ years

• Predominant Hispanic cultural practices

Latinoamericano• Spanish dominant (nearly no English)

• Recently immigrated as an adult• Primarily Hispanic cultural practices

• Identify with home country more than USA

Americanizado15%

Nuevo Latino26%

Bicultural28%

Hispano17%

Latinoamericano14%


Acculturation - Language & Beyond

US Hispanic Market

14












Americanizado15%

Nuevo Latino26%

Bicultural28%

Hispano17%

Latinoamericano14%


69%


US Hispanic Market

15












Americanizado15%

Nuevo Latino26%

Bicultural28%

Hispano17%

Latinoamericano14%


59%


US Hispanic Market

16




Hispanicity/Acculturation Segment

Socio-economic Status A

Socio-economic Status B

Socio-economic Status C

Socio-economic Status D

Socio-economic Status E

Americanizado 137.4 120.6 93.3 81.0 80.6

Nuevo Latino 128.2 122.1 104.8 83.6 69.5

Bicultural 87.2 101.9 107.0 104.0 94.4

Hispano 68.8 78.9 100.1 119.5 122.3

Latinoamericano 67.9 56.3 84.0 121.0 164.5

Geoscape American Marketscape DataStream Segmentation Summary Indices

Acculturation & Socioeconomic Status

US Hispanic Market

17





Socio-economic Status A

Socio-economic Status B

Socio-economic Status C

Socio-economic Status D

Socio-economic Status E

Americanizado 137.4 120.6 93.3 81.0 80.6

Nuevo Latino 128.2 122.1 104.8 83.6 69.5

Bicultural 87.2 101.9 107.0 104.0 94.4

Hispano 68.8 78.9 100.1 119.5 122.3

Latinoamericano 67.9 56.3 84.0 121.0 164.5


Acculturation & Socioeconomic Status

US Hispanic Market

18





Mexican Puerto Rican Cuban DominicanSouth

AmericanCentral

American

Americanizado 105.9 138.8 99.4 37.5 80.8 33.1

Nuevo Latino 96.1 138.4 110.7 84.8 115.3 73.6

Bicultural 98.5 103.1 70.6 110.2 113.4 111.1

Hispano 103.0 60.0 79.9 127.4 90.6 133.3

Latinoamericano 100.4 29.6 161.8 142.0 77.6 158.7


Acculturation & Country of Origin

US Hispanic Market

19


U.S. Hispanic Media Consumption & Attitudes

U.S. Hispanic Market - Media Consumption Habits

• Roughly six in ten (59%) of Hispanics say they "enjoy looking at or listening to advertising,"

• Compare that with 30 percent of non-Latino whites who feel this way

• But only 25% of those surveyed feel that today's marketing is personally and culturally relevant to their lives

• "Authenticity is required. The messages have to be real and relevant to the Hispanic consumer."

• Hispanics' need for preserving cultural elements has heightened in the past 4 years:

In 2003, 48% of Hispanics surveyed said it is important to preserve music and songs

In the 2007 study, it was 62%

• With food and beverage:

36% of Latinos in 2003 said was important to preserve traditions

This year it was 61%

• Language is important - but relevance and content are as or more important.

• Key is CHOICE.

Source: Hispanic Market Weekly, "A Hispanic Vote For Advertising," September 24, 2007

US Hispanic Market

20


U.S. Hispanic Media Consumption - TV


• 26 million Hispanics watch television in an average week

• Broadcast television dominates Hispanic viewership (note lower cable service penetration)

• Roughly 71% of Hispanics' television time is spent watching broadcast networks (vs. 58% of non-Hispanic males and 62% of non-Hispanic females'

• Hispanics are equally likely to have satellite service – 25% vs. 24% of non-Hispanics

• Spending on Cable TV to target Hispanics is growing faster than spending on network TV

• Telenovelas don’t completely dominate Hispanics viewing preferences!

• 68% of those surveyed indicate they watch news programs and political talk shows

• 43% percent say they watch telenovelas

• Game shows are the least popular format, only 11%

• 55% of U.S. Hispanics watch television in both English and Spanish

• 12% watch only in English

• 31% exclusively in Spanish

• 57% of the U.S. Hispanics born in other countries watch television in English

• While almost 75% of those born in the U.S. watch Spanish-language television

Sources: Hispanic Market Weekly: "What They're Watching," July 03, 2006; Hispanic Market Weekly, "Kagan Forecasts Great Growth For Hispanic Radio, TV" February 26, 2007; Hispanic Market Weekly: "Latinos Have Different Viewing Habits," June 26, 2006

US Hispanic Market

21


U.S. Hispanic Media Consumption - Magazines


• Hispanics read magazines on par with (sometimes more than) the general population:

• 85% of Hispanics read magazines

• 47% trust the information in magazines

• 43% trust magazine advertising

• 73% say magazine ads give them idea about what to buy

• Hispanic consumers view magazines as credible sources of information

• They are more likely to act on advertising that appears in magazines than the overall population

• They perceive magazines as inspirational and "aspirational"

• View advertising in magazines as "part of the reading experience"

• They read about 8.5 issues per month, similar to the U.S. average

• The most avid Hispanic magazine readers are Spanish dominant

• Hispanics are more likely to consider ads as a seamless part of the magazine

• Less chance of saturation

• Engagement

Sources: Magazine: Magazine Publishers Association "Hispanic/Latino Profile" 2006; Hispanic Market Weekly "Magazines Score With Hispanics," September 18, 2006; Northwestern Reader Research Study, 2004.

US Hispanic Market

22


U.S. Hispanic Media Consumption - Newspapers


• Hispanics read newspapers more faithfully than the general population

• Most read in Spanish (only 20% are "heavy" or "somewhat heavy" general market paper readers)

• Spanish-language newspapers have an average of 2.9 readers per copy (vs. 1.9 to 2.1)

• Nearly every major Hispanic newspaper posts circulation growth

• Less chance of saturation

• The nearly 20 million Hispanic newspaper readers in the U.S. aren't going anywhere: Hispanic readers don't abandon their Spanish papers for English versions as they become acculturated

• Content involving family/lifestyle information, local community news and store ads are especially important to the Hispanic market

Sources: Associated Press, August 26, 2006; NAHP; Newspapers Association of America, Hispanic Press, NAHP, Dirks, Van Essen & Murray; TNS Market Development/Hoy, NAHP; 2007 Newspaper Association of America " The Unique Audience of Hispanic Newspapers," NAA 2007 Markieting Conference, Las Vegas, prepared by Alloy Media + Marketing.

US Hispanic Market

23


U.S. Hispanic Media Consumption - Radio


• Some research shows that radio content and ads are more trusted by and

have a greater emotional connection with Hispanics than with general

market listeners

• A 2006 RAEL (Radio Ad Effectiveness Lab) study found that:

32% Spanish-language radio listeners believe radio ads are fun (32%)

15% of non-Hispanics believe they are fun

33% believe ads are honest

13% of non-Hispanics believe they are honest

• Why?

There is less "fatigue" from marketing messages among the Hispanic

market

Radio tends to be a good source of relevant information

Source: Hispanic Market Weekly: "A Stronger Connection, Receptivity To Radio Ads," October 09, 2006.

US Hispanic Market

24


U.S. Hispanic Market - Media Consumption - Internet

• 55% to 56% of US Hispanics have access to or use the internet (71% of general Market)

• Between April 2005 and April 2006, over 1.6 million Hispanics came online for the first time

• Just 1 in 3 Spanish-dominant Hispanics go online BUT they also represent the most growth

• Online Hispanics are an “upscale mass market” 56% are college educated 21% are Spanish dominant 27% bilingual 52% English dominant

• English or Spanish?

• Strategies - portals

• Content

• Engagement

• Relevance

• Predictors of usage

Sources: Synovate 2006 US Diversity Markets Report, Pew Hispanic Center, Internet Study March, 2007; comScore Media Metrix Study, April 2006; Hispanic Market Weekly "Online Activity Lags For U.S. Latinos" March 19, 2007

Source: ComScore Media Metrix

U.S. Hispanic Media Consumption - Internet

176,000

389,000

1,076,000

1,641,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Bilingual English Spanish Total

Language Preference

New Hispanic Online Users, April 2005 to April 2006

Hispanic Online Growth by Language April 05-April 06

US Hispanic Market

25



Source: Jupiter Research "Marketing to U.S. Hispanics Online - Tapping Into A Young, High-Speed Audience." 2005


36%

32%

28%

27%

21%

16%

14%

41%

22%

24%

20%

26%

16%

16%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Visited Newspaper Sites

Visited Sites about Movies

Visited Sites about Sports

Visited Sites about Music

Visited Sites about TVShows

Visited Sites about Cars

Visited Sites about Politics

Hispanics Non-Hispanics

US Hispanic Market

26



Source: Jupiter Research "Marketing to U.S. Hispanics Online - Tapping Into A Young, High-Speed Audience." 2005


54%

48%

41%

32%

31%

29%

20%

16%

50%

40%

31%

28%

27%

18%

19%

10%

0% 10% 20% 30% 40% 50% 60%

Participated in Contests orSweepstakes

Used AIM, Yahoo!Messenger, or ICQ

Chatted Online

Played Action Games Online

Listened to Audio Online

Did Homework/Researchfor School

Viewed Video Online

Used File-Sharing Apps toShare Music, Movies

Hispanics Non-Hispanics

US Hispanic Market

27



Source: AOL 2006 Hispanic Cyberstudy


Hispanics who use the internet are increasingly relying on it to make purchasing decisions

51%

59%

63%

56%

61%

59%

63%

70%

74%

63%

69%

64%

68%

72%

72%

70%

75%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Make Final Decision onBrand to Buy

Compare Prices

Learn Where Item isAvailable

Get Advice on WhichBrands to Buy

Learn About Features %Benefits of Specific Brands

Learn About AvailableBrands of Products

2004 2005 2006

US Hispanic Market

28




57%

15%

27%

86%

3%

11%

60%

11%

28%

25%

38%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Online Hispanics Mostly Acculturated Partially Acculturated RelativelyUnacculturated

English Spanish Both English & Spanish


Overall, Hispanics tend to use the Internet in English. But this may be less a function of preference and more one of content availability. Many

sites simply are not available in Spanish.

US Hispanic Market

29




41%

14%

42%

8%

44%

17%

46%

11%

63%

6%

38%

19%

33%

16%

36%

14%

47%

18%

27%

21%

34%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

National

Los AngelesNew York

ChicagoMiami

HoustonDallas

San FranciscoSan Antonio

PhoenixMcAllen

Internet at Home Someplace Else/Some Other Device

• Highest internet penetration levels: Miami San Antonio New York

• Lowest internet penetration levels: Pheonix Dallas Los Angeles and San Francisco

• However, note absolute numbers: Los Angeles - 50% of 4.6 million is a lot of Hispanics online!

• Why relevant? Identify the market Identify media usage/preferences Adapt the message to the media


US Hispanic Market

30


Regional & State Perspective

Sources: U.S. Census Bureau; Synovate U.S. Diversity Markets Report 2006; Selig Center's Multicultural Marketing Report 2006; Magazine Publishers Association, Latin Force Group, LLC, American Marketscape DataStream, 2008 Series.

U.S. Hispanic Market Overview - Regional & State

• Hispanics are concentrated in certain areas of the country - but growth is almost everywhere

• California and Texas are the most populous states in the country

• 49% of US Hispanics live in California (13.1 million) or Texas (8.4 million)

• New Mexico has the highest proportion of Hispanics (43% of its population)

• The Hispanic population of Los Angeles County is over 4.6 million

• Most U.S. Hispanics are of Mexican descent - about 70%

• Most U.S. Hispanics of Mexican heritage are concentrated in West and Southwest

• Non-Hispanic whites are a minority in 315 counties, including some of the largest (LA, Chicago)

• Non-Hispanic whites are a minority in California, Texas, New Mexico, Hawaii and DC

• While the majority of Hispanics are concentrated in California, Texas, New York, Florida and Illinois, the fastest growing areas for Hispanic population are: Charlotte, Atlanta, Raleigh-Durham, Indianapolis, Orlando, Portland (OR), and Minneapolis.

US Hispanic Market

31


Regional & State Perspective

U.S. Hispanic Market Overview - Regional & State

States with Greatest Population Growth

US Hispanic Market

32


Top 25 States - Sorted by Number of Hispanics

U.S. Hispanic Market Population - Top 25 States

State Total PopulationNon-Hispanic

White

% Non-Hispanic White Hispanic Population

% Hispanic Population

CA 37,117,133 15,535,835 41.9% 13,669,540 36.8%TX 24,445,647 11,507,936 47.1% 8,959,512 36.7%FL 18,801,900 11,276,349 60.0% 3,974,414 21.1%NY 19,348,942 11,579,601 59.8% 3,199,035 16.5%AZ 6,554,910 3,835,069 58.5% 1,993,453 30.4%IL 12,953,283 8,343,916 64.4% 1,992,628 15.4%NJ 8,786,597 5,388,233 61.3% 1,434,636 16.3%CO 4,894,547 3,479,231 71.1% 995,429 20.3%GA 9,771,845 5,639,975 57.7% 798,774 8.2%NC 9,158,932 6,168,747 67.4% 671,798 7.3%WA 6,572,850 4,979,885 75.8% 630,539 9.6%PA 12,501,596 10,180,217 81.4% 574,884 4.6%MA 6,438,907 5,097,158 79.2% 534,158 8.3%VA 7,818,632 5,221,471 66.8% 528,435 6.8%MI 10,112,157 7,819,395 77.3% 411,485 4.1%MD 5,690,132 3,249,796 57.1% 375,197 6.6%IN 6,397,180 5,325,047 83.2% 331,657 5.2%OH 11,504,082 9,486,946 82.5% 282,796 2.5%WI 5615446 4,782,954 85.2% 279,696 5.0%TN 6,177,103 4,760,338 77.1% 221,323 3.6%MN 5,240,085 4,466,061 85.2% 211,994 4.0%MO 5,928,290 4,874,082 82.2% 179,568 3.0%SC 4,441,183 2,900,888 65.3% 171,644 3.9%LA 4,381,527 2,734,052 62.4% 130,799 3.0%AL 4,671,153 3,208,243 68.7% 128,386 2.7%

CaliforniaTexasFloridaNew YorkArizonaIllinoisNew JerseyColorado

Source: Latin Force American Marketscape DataStream, 2008 Series

US Hispanic Market

33


Top 25 DMAs - Sorted by Overall Size


DMA Total Population Non-Hispanic White% Non-Hispanic

White Hispanic Population% Hispanic Population

New York 20,854,029 11,000,544 52.8% 4,342,983 20.8%Los Angeles 17,766,405 6,153,621 34.6% 7,908,138 44.5%Chicago 9,790,606 5,514,280 56.3% 1,932,726 19.7%Philadelphia 7,880,178 5,342,645 67.8% 661,477 8.4%Dallas-Ft. Worth 6,947,664 3,760,461 54.1% 1,829,788 26.3%San Francisco-Oakland-San Jose 6,862,924 3,144,206 45.8% 1,542,459 22.5%Atlanta 6,509,461 3,683,160 56.6% 644,964 9.9%Boston 6,243,186 5,053,331 80.9% 441,786 7.1%Washington DC 6,212,558 3,429,258 55.2% 693,702 11.2%Houston 6,151,228 2,645,009 43.0% 2,050,892 33.3%Pheonix 5,137,796 3,094,562 60.2% 1,469,857 28.6%Detroit 5,011,648 3,497,706 69.8% 181,607 3.6%Seattle-Tacoma 4,685,189 3,512,470 75.0% 355,405 7.6%Minneapolis-St. Paul 4,466,244 3,767,027 84.3% 186,224 4.2%Tampa-St. Petersburg 4,393,848 3,159,696 71.9% 620,717 14.1%Miami-Fort Lauderdale 4,342,505 1,323,926 30.5% 1,980,870 45.6%Sacramento-Stockton-Modesto 4,044,822 2,172,342 53.7% 1,005,432 24.9%Denver 3,908,921 2,774,154 71.0% 808,331 20.7%Cleveland-Akron 3,879,763 3,109,825 80.2% 107,327 2.8%Orlando-Daytona Beach-Melbourne 3,682,571 2,403,425 65.3% 639,781 17.4%St. Louis 3,195,354 2,499,980 78.2% 64,496 2.0%Portland, OR 3,107,765 2,448,267 78.8% 352,348 11.3%San Diego 2,955,804 1,494,183 50.6% 918,200 31.1%Baltimore 2,876,991 1,833,642 63.7% 91,035 3.2%Charlotte 2,847,155 1,996,226 70.1% 209,434 7.4%

Source: Latin Force American Marketscape DataStream, 2008 Series

US Hispanic Market

34




14.0%

25.5%

25.6%

17.7%

17.1%

14.4%

26.0%

26.6%

18.2%

14.8%

14.7%

25.9%

27.2%

18.1%

14.2%

6.8%

21.2%

24.1%

17.7%

30.1%

12.2%

25.6%

29.1%

18.5%

14.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chicago Houston Los Angeles Miami-Ft.Lauderdale

New York

DMA

Americanizado Nuevo Latino Bicultural Hispano Latinoamericano

Acculturation in Top 5 DMAs

US Hispanic Market

35


• Are you seeking employing Hispanic talent in key decision making roles?

• Are you buying from Hispanic businesses?

• Do you give back to the Hispanic community and support Hispanic-friendly public policy?

• Does your company mirror the demographics of the consumer base with the employee population?

• Do you ensure wage and benefits equity with the overall employee population?

• Do you track and monitor promotion and attrition rates of Hispanics?

• Do you invest in programs that address issues of concern to the Hispanic community?

• Do you set standards and monitor Hispanic employment practices of vendors?

• Does the company track vendor expenditures to Hispanic demographic groups?

• Can you award more contracts to Hispanic vendors?

• Does the company develop Hispanic vendor capacity by providing access to capital, assistance, and opportunities?

• Will you target and develop at least one Hispanic vendor into their top ten-vendor list?

Source: Hispanic Association of Corporate Responsibility

U.S. Hispanic Market Population - Corporate Commitment

Committing to the Hispanic Market - From the Inside Out

US Hispanic Market

36


U.S. Hispanic Market - Food Preferences

Case Studies - Pizza Patrón

• Mission/message: "Committed to serving Hispanic core customers"

• Product: Inexpensive Pizza

• Placement: Predominantly Hispanic communities

• Promotions:

From "A Good Deal" to "Más Pizza, Menos Dinero"

"Buy pizzas with pesos" and "Bienvenido Paisano"

El Patrón (the Boss) - a fedora-topped, mustached man

Franchise look and feel: shed references to Italy,

Spanish/bilingual staff, advertising and marketing

• Price: Inexpensive ($4.99)

• Result: growth in sales, but also backlash

Source: brandchannel.com, Alycia de Mesa, August 6, 2007

US Hispanic Market

37



Source: Advertising Age, January 8th, 2007; Google Video

Case Studies

Mission/message: "For your Future"

• Product: Hybrid vehicle

• Promotions/methodology:

o TV Ads

o Superbowl placement (25% of Hispanics over 18 watch)

o Address relevant issues: Family, education, future, language

o Notice no mention of specific numbers - mileage, horsepower

o Emotional appeal

• Result: Camry registrations grew 32% among Hispanics

QuickTime™ and a decompressor

are needed to see this picture.

US Hispanic Market

38



QuickTime™ and a decompressor

are needed to see this picture.

Case Studies - Republican National Campaign, 2004

Purpose: Raise support for Republican party among "Latinos"

• Messages/touchstones/tactics:

History

Pride in culture/heritage

Family - "Comes first, helps one another"

Values - "Strong, conservative values"

Religion

Economic success

Work ethic

Education

Interviews

• Result: According to the National Elections Pool (NEP) exit poll, President Bush garnered 44 percent of the Hispanic vote (Kenski and Kenski 2005). In 2000, Bush won 31 percent (Connelly 2004).

Source: brandchannel.com, Alycia de Mesa, August 6, 2007

US Hispanic Market

39



Case Studies

NFL: Sought to increase interest among Hispanics

• Placement: Telemundo game coverage, 2006 game in Mexico City

• Promotions:

o Spanish sportscasting by Alvaro Martin

o 24 Hispanic players on roster in 2006

o Fantasy Football in Spanish (can choose)

o Madden NFL video game being released in a bilingual edition

o NFLatino.com launched in 2006 - includes areas geared toward beginners, Hispanic player diaries and interactive polls

• Result: 2006 Mexico City game, first ever outside USA, drew league's LARGEST CROWD for any game.

US Hispanic Market

40



• Product: Subcompact, appeal to stylish creative spirit

• Promotions:

o MundoYaris.com - mix music, create ring tones online

o Yaris Design Lab - make films, music and art

o Language - CHOOSE

o Made relevant - mobile content, music, language

o Alternative career fair

o Win an Ozomatli performance at home

o TV, Print, Radio in English-language outlets (SíTV, Urban Latino Magazine)

o Links to Mun2, Yahoo Film Festival, chat rooms, blogs, showroom

• Result: From unknown to 30% share of entry-level subcompact segment in Hispanic market.

Case Studies

Toyota Yaris - Target Nuevo Latino, "young Latino trendsetters leading the way in a new, multicultural world"

US Hispanic Market

41



Summary

• There really is no "Hispanic Market"

• Hispanic Market is not a monolithic bloc

• Like the general market, it is a collection of several sub-segments

• Big differentiators are age, income, education, attitudes…

• Most can be captured by "Acculturation" level

• Then layer with additional knowledge: country of origin, tastes, consumer habits

• Strategy is: Don't try to speak to the entire market with one message, in one language

• When marketing, find the right media vehicles then develop the right message

• Don't rely on rational appeals in marketing, an emotional appeal is likely to be more successful

• Examine how your company internally reflects its commitment to the Hispanic market

• Stick to it. There's no where to go but up.

"u.s. hispanic market info & insights" – by michelle villalobos, former publisher...

Business

us hispanic population

hispanic income

hispanic market weekly

hispanic market insights

us population

general population income

hispanic vote

population center