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Latin BeatBy: Kim T. Gordon The Hispanic market is an entrepreneur’s dream. Brand loyal, cost-effective to reach and growing by leaps and bounds, savvy marketers see the Hispanic market as one with huge promise. With its economic clout expected to reach a whopping $926 billion by the end of 2007, the buying power of Hispanics will soon outstrip that of all other ethnic groups in the U.S. Find Loyal Customers Historically, marketers have been drawn to this market due to its size – there are 40 million Hispanic consumers here in the U.S. But now, a crop of new studies validate the long-held belief that the Hispanic market represents more than sheer buying power. A strong tendency toward higher than average brand loyalty characterizes this group, making them prized, long-term customers. Even within the lower income segments of this market, brand name, quality, and good customer service sway the purchase more than price. A survey by Research Data Design (RDD) showed that 85% are willing to pay more for quality and prefer to buy a more expensive but trusted brand rather than a less expensive but unfamiliar one. And 94% of Hispanics are likely to buy a brand that provides the best customer service. As a whole, the Hispanic market is young – 60% of Hispanics in the U.S. are less than 28 years old – and they tend to reside in larger family groups. Hispanic households are more likely to be comprised of couples with children under 18, and they often include extended families with three wage earners. This tendency toward larger families with young children means Hispanics buy more household goods. According to a DRI McGraw Hill study, Hispanics will drive nearly a fifth of the growth in apparel and shoe sales and about one-third of the growth in food sales through the mid-2000s. Entrepreneurs marketing everything from baby care and health and beauty products to home furnishings and entertainment can benefit from targeting this group. Just take a cue from video rental giant Blockbuster, which has converted 1000 of its domestic stores into "Hispanic-themed" centers, where signage and products are displayed in Spanish. Tips for Marketers > Speak the Language Advertising in Spanish is important, even among bilingual Hispanics – it’s a matter of cultural identity and pride. Advertisers that use Spanish-language advertising and media, including Web sites, build customer loyalty because they’re perceived as understanding and relating to the Hispanic community. A study by the Roslow Research Group showed commercials in Spanish were three times more persuasive among bilingual Hispanics and six times more persuasive among Spanish-dominant segments. Among Hispanic teens, ads in Spanish were twice as persuasive as ads in English. > Recognize Diversity It’s a mistake to treat Cuban, Puerto Rican, Mexican and Central and South American immigrants alike because family size, education and income levels differ. For example, Mexicans have the largest families and Cubans the smallest. The language also differs. In Puerto Rico, beans are "habichuelas," but in Central America they’re "frijoles." When creating a Spanish-language campaign, it’s a good idea to use an agency that specializes in Hispanic marketing. The Association of Hispanic Agencies (www.ahaa.org) offers a searchable database. And (ITAL) proceed carefully. (END ITAL) Even a well-known product name or slogan may need to be modified. When the American Dairy Association wanted to extend the popular "Got Milk?" campaign into Mexico, it found the Spanish translation was "Are you lactating?" > Support Community Values Hispanics value family, religion and the ethics of hard work to a greater degree than the general population. Campaigns that appear to denigrate parental authority or family unity should be avoided. Word-of-mouth plays a vital role too, so grassroots PR and community events – such as supporting local festivals – should be part of your well- rounded marketing strategy. Get In-depth Coaching on this Topic>> Kim T. Gordon's columns and articles are read by nearly 3 million small and home-based business owners each month. She is the author of two books, including Bringing Home the Business: The 30 Truths Every Home Business Owner Must Know. Copyrighted material. May not be reproduced in whole or part without expressed permission from the author. |
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