FBJ’s POP Marketing “Must Knows” for Effectively Reaching the U.S. Hispanic Demographic
Chapin, SC, 9/18/2007 --The Hispanic consumer market in the United States is approximately the same size as Mexico’s entire economy, according to a recent study from the University of Georgia Center for Economic Growth. Hispanics also have the most disposable income of any minority — their buying power is expected to exceed $860 billion this year and $1.2 trillion by 2012. Hispanics tend to be extremely brand loyal, but they demand respect and cultural understanding. What are the keys to promoting to this grande consumer group?
Rule Numero Uno…
Remember that “Hispanic” refers to anyone of Mexican, Central or South American, Puerto Rican, Cuban or Spanish descent, regardless of race. The Hispanic American market is made up of “a diverse set of consumers based on differences in language and country of origin, among other factors,” says Brad Fay, managing director of NOP World’s Roper Public Affairs. For instance, a neighborhood of Hondurans might disregard a Cinco de Mayo sales pitch because they have never celebrated that Mexican holiday. Despite these differences, general tips for reaching the Hispanic market include:
Hispanics tend to respond well when they sense a genuine interest in their needs and lifestyle. Innovative retailers are “not just accommodating ethnic shoppers, but embracing ethnic shoppers and becoming part of the community,” says Jim Hertel of Willard Bishop Consulting.
Culturally relevant POP is KEY. Many retailers such as The Home Depot take a neighborhood-specific approach, which can help determine how much of your marketing budget should be targeted toward Hispanics and account for the percentage of each ethnic group. Sears and Wal-Mart have added bilingual signage in stores with a large Hispanic customer base.
Perpetuating stereotypes is a way to turn off the Hispanic market, not attract them. "Just translating into Spanish and putting on a sombrero is not marketing," says Juan Tornoe of Juan Tornoe's Hispanic Trending Blog. "It's about understanding the culture and the small idiosyncrasies. They're not aliens. They use the same products as you do."
Hispanic women typically serve as the head of household and make most purchasing decisions. You can win them over with polite sensibility since most Hispanic families also shop as a unit.
Relationship marketing is key. Hispanics respond well who make them feel “part of the family.” Personal contact through excellent customer service is important in order to create and maintain customer loyalty among this demographic. There is a strong culture of family and religious devotion among Hispanic Americans that is reflected in the products they buy.
An important pastime in the Hispanic culture, in addition to communal events, is watching sports. Professional boxing, Major League Baseball and Major League Soccer are the most popular. Developing promotional programs that tie in these types of major sporting events could be an effective way to engage this market segment.
Spanish-language advertising is 45 percent more effective than English advertising in reaching this consumer segment, according to the Roslow Research Study reports. And various studies tell us that the majority of US Hispanics rate language as the most important element to the culture to preserve.
Consider forming significant partnerships with media outlets serving Spanish-speaking markets, thus making their built-in, loyal audiences immediately accessible.
Finally, make sure your POP efforts don’t get lost in translation! It’s worth the extra time and expense to ensure that your signage is translated correctly and accurately. In addition to regional differences, (i.e., the word “truck” is troca West of the Mississippi and camion to the East), there are many subtle nuances that may require a Hispanic consultant. Take heed from the unassuming Chevy Nova, which literally translates to “no go” — needless to say, sales stayed parked in the Spanish-speaking world.
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