The Promotional Idea Showcase - Summer 2003 - Updated Quarterly

 

Special Markets
Hispanic Marketing – Expanding Your Market Share
By Patrice Kelly

Many corporations today seek to expand their market share by appealing to the fastest-growing segment of the U. S. population – the Hispanic/Latino market. Demo-graphically, it’s a smart move. According to Census 2000, His-panics currently comprise 12.5% (35.3 million) of the U.S. population and are expanding at a faster rate than the general population – over 60% in the last decade alone. Put another way, the number of Hispanics in the U.S. is greater than the entire population of Canada. 

And Hispanic consumer expenditures are growing at triple the rate of inflation – faster than that of the general population and more than twice as fast as non-Hispanics. Hispanic buying power was $446 billion in 2001. By 2006, buying power of the “affluent” portion of the Hispanic market is expected to hit $300 billion, while its overall buying power will exceed $634 billion.

A Complex Market

It’s no wonder companies previously unfamiliar with the U.S. Hispanic market are developing strategic plans to tap it. But exactly how do you approach this fast-emerging market correctly?

The answer isn’t as simple as it might appear. Although Spanish-language marketing is the best way to go, there’s a lot of diversity there. The Census Bureau estimates that 65.2% of U.S. Hispanics are Mexican; 9.6% are Puerto Rican; 14.3% are Central/South American/Caribbean; 4.3% are Cuban; and 6.6% are of other Hispanic origin. 

All this variety means subtle – and not-so-subtle – differences in how words and phrases are used and what they mean to different groups. When using Spanish to get your message across, use a fluent translator. Attempting to translate a general-market campaign can literally lead to distorting the message and incorrectly representing the product or service. 

And not only does this market’s variety affect language use, it also affects cultural references. For example, you wouldn’t use a reference to Cinco de Mayo, a Mexican celebration, for a Cuban audience.

Market Characteristics

The Hispanic population is dispersed throughout the U.S., but it’s primarily clustered in urban areas. Strategy Research Corp. indicates that most Hispanics reside in and around Los Angeles, New York, Miami, Chicago, San Francisco/San Jose, Houston, San Antonio, McAllen/Brownsville (TX), Dallas/Fort Worth and San Diego. A rough breakdown clusters Mexicans mainly in California and the Southwest (this area accounts for over half the Latino population of the U.S.), Puerto Ricans in New York and Cubans in Florida. However, the U.S. as a whole – particularly Southern states – have seen a rise in Hispanics from the Caribbean, Central and South America. 

Be aware, however, that a large percentage of the Latino population is bilingual. Simmons Market Research’s study of 10,000 U.S. Hispanic households revealed that 19% speak only Spanish at home; 32% speak mostly Spanish; 17% are equally bilingual; 23% speak mostly English; and 9% speak only English. 

Significantly, although Hispanic incomes are still below those of mainstream America, the Simmons’ study found that the bilingual group has higher purchasing power than those who speak mainly Spanish. Nearly 1.5 million Hispanic families have incomes above the national average, many earning $50,000 or more. Within this group, Cubans and “Other Hispanic” males ranked as the highest wage-earners.

Demographically, Hispanics are younger than the general U.S. population, with an average age of 25. The range by subgroup indicates that Mexicans have the largest numbers of youths, while Cubans and Other Hispanics have the most people over age 35. 

Buying Trends

This all means that targeting the Hispanic market requires some extra thought to develop Spanish-language messages that will reach the appropriate audience. Promotional items added to the tactical mix can help convey the message that you value prospective business. By looking at the overall cultural values, income brackets and buying patterns, you can get an idea of what items may best appeal to this segment. For example:
  • The J.D. Power and Associates 2002 U.S. Hispanic Automotive Segment Report says Hispanics account for 8% of new-vehicle buyers, preferring import makes.
  • Although not particularly brand loyal to non-Spanish brands, Latinos outspend others on food and beverage purchases. In 2000, they spent $2.7 billion on over-the-counter drugs and medical supplies. Spending on personal care products exceeded $4 billion.
  • A market reflecting youth and style, a continuing study of U.S. Latino youth culture released by Cultural Access Group Inc. notes that Latino teens and young adults in New York and Los Angeles are more likely to be captivated by the English rhymes and cadences of hip hop and rap music than popular Spanish-culture music.

Promotional Possibilities

In appealing to the Hispanic population, it’s usually safe to use the segment’s family and religious orientation as a starting point. For instance, a customized Spanish calendar with Catholic holidays would appeal to families and put your company’s name in front of them every day. Another possibility is Spanish-language calendars with images of families and family activities instead of religious connotation. 

Wearables are also effective. 

T-shirts with family, sports or musical themes are good choices. Musical themes can be strengthened with CDs featuring either Spanish culture music or hip-hop. Another idea would be to purchase licensing rights for recognizable Hispanic artwork for use on T-shirts, stationery and other products. Keep in mind when choosing your design elements that many Spanish-language products use bright primary colors and sans-serif fonts.

Practical items that reflect your own industry can also work. For instance, imprinted potholders, cutting boards or beverage cups would be a good fit for food and beverage firms, as well as anything related to this market. For automotive or automotive products, it might be small wrenches, logoed keytags, auto safety kits, scrapers or small flashlights. Computer/technology firms may want to use imprinted mousepads or computer rear-view mirrors.

Baseball and sports themes are also effective with the male portion of the segment. Items like baseball-bat-shaped pens, keytags with a baseball glove or ball theme and baseball caps can all work well. You can also get engraved regulation-sized bats and balls with major-league insignia imprinted on one side and your company name and/or logo on the other. Ask your counselor.

Another sports-themed item would be an imprinted collapsible canvas sports chair with its own carrying case. “It’s a great billboard type of product.” says counselor Ginny Globakar. She also suggests individual foam can-coolers, along with six-and 12-pack coolers, shoulder-strap coolers and portable seat cushions as sports-related items that might appeal to the Latino marketplace. 

Auto-related products are another category of interest. Visor CD holders, keytags, flags of countries of origin and religious emblems are just a few items of interest. In small electronics, the hottest items are hands-free cell phone headsets and clip-on portable radios with cushioned earpieces in bright metallic colors.

Obviously, there are many ways to reach the Hispanic market. The key is to use sensitivity to the language and the culture, along with the right themes and design elements to make your message memorable.

Patrice Kelly is a freelance writer based in Cleveland.