cracking the us hispanic code

How to write a successful novel?How to write a successful novel?

Hopeful Beginning:

Suspense:

Drama:

How to write a successful novel?

Happy Ending:

Choose a good Title:

Cracking the US Hispanic Code

How to write a successful novel?


Suspense:

Drama:

•The US Hispanic market growth generates a huge business opportunity for everyone

•Yes, it grows

•The opportunity is not easy to capitalize

•Local markets are quite different

Happy Ending: ?

Hopeful Beginning:

Chicago

Each Hispanic cluster has different background

Other Hispanic

23%

Mexican 4% Puerto

Rican 9%

Cuban 45%

Other Hisp. 30%

Other 6%

Puerto Rican

1%

C American 16%

Colombian 4%

Mexican 72%

Mexican 9%

Puerto Rican

11%

Other 13%

Cuban 1%

Mexican 75%

Colombian 12%

Puerto Rican

1%

Cuban 1%

Cuban 4%

Puerto Rican 34%

Other Hisp.

31%

South American 22%

Mexican 75%

Cuban 1%

Los Angeles New York

Miami

Houston

Source: Strategy Research Corp, US Hispanic Market, 2002

$15,

382

$11,

920

$11,

917

$11,

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$11,

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$10,

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, $10

,751

, $10

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, $10

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, $10

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$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Los Ang

eles

New

Yor

k

Mia

mi

Chicag

o

Hou

ston

San F

ranci

sco

Dal

las

San

Anton

io

Phoe

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McC

alle

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Source: Strategy Research Corp, US Hispanic Market, 2002

Buying Power by city varies as much as 50%


Suspense:

Drama:


•Yes, it grows



Hopeful Beginning:

•Within local markets, upscale Hispanics are very different from general market upscale Americans and other Hispanics

• Upscale Hispanics are heavy consumers of tech and luxury goods

• US Hispanics indexes 31% and 16% over the general market when purchasing Cartier and Rolex watches.

• US Hispanics indexes 7% over the general market when it comes to purchasing flat screen TVs.

• US Hispanics are twice as likely to spend $3000 or more on a high definition TV than the average person in the general market.

• US Hispanic growth in the designer apparel industry is expected to average 6.7% per year over the next 10 years, nearly double the 3.6% annual rate for sales to the US non-Hispanic market.

Hispanics differ from general market


Suspense:

Drama:


•Yes, it grows



Hopeful Beginning:


•Second generation Hispanics are very different from first generation.

Source:Strategy Research Corp, US Hispanic Market, 2002

Media consumption changes based on birth place


Suspense:

Drama:


•Yes, it grows



Hopeful Beginning:


•Second generation Hispanics are very different from first generation.

•Psychographic diversity within the market generate different behavior as well.

Assimilated Hispanics10 million

Bicultural Hispanics 9 million

Hispanic Dominant 24 million

Young Progressives 8 million

Home Builders 16 million

Hearth-Hearted 12.5 million

Prime of Life 6.5 million

How to reach them?

Source: Yankelovich Study 2002

Migration motivation explain different interests

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Fam

ily m

aker

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To succeed an investor must answer at least 3 key questions

Key Questions

Who are they? Is there a mkt?

What are their interests?

How to reach them?

Analysis

Culture/Asimilation

Drivers

Media Preference

Hispanic Orientation

Hispanic DominantBicultural

Assimilated

Culturally Unique

Anglo Orientation

Bicultural societyBicoltural hispanics will dominate the market in the future

Cultural, Community, Family Values

• US Hispanics are acculturating, not assimilating (media impact)

• Family and community values and traditions remain strongly associated with Hispanic heritage and country of origin.

• Most maintain contact with and provide financial support to family in their country of origin.

• Three-quarters of Hispanic Dominant believe their main responsibility is to their family and not to making the world a better place. At the same time, feeling an obligation to their broader community is also most important.

• “Live for today” generates different consumptions patterns in debt, insurance, mortgages, etc…

Heritage, values, attitude shows assimilation process

Assimilated Hispanics10 million

Bicultural Hispanics 9 million

Hispanic Dominant 24 million

Young Progressives 8 million

Home Builders 16 million

Hearth-Hearted 12.5 million

Prime of Life 6.5 million


Interest vary depending on assimilation and psychographic segmentation

American Sports

Society

Fashion

Lifestyle

Shopping

Celebrity / Royalty

Beauty

Home Making

Personal Finance

Latin American Sports

Gossip

Hip Hop

Trendy

Early Adopters

High Tech

Folk music

Health

Scope of Interest

National Local / National Local / National Local

Young Progressives INTERNET

Family Driven Individuals

Prime of Life RADIO

How to reach them?


Englis

h

Englis

h

Spani

sh

Spani

sh

Spani

sh

Spani

sh

Spani

sh

Spani

sh

Bot

h La

ngua

ges

Bot

h La

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ges

Highly concentratedMagazine Consumers

HighIncome

LowIncome

Open air Low TV/High Magazines/

High cable

High TV/Low Magazines

Different media reach each segment

This is why TV and Magazines show the highest growth in the US Hispanic Market

Source: HispanTelligence

0%

10%

20%

30%

40%

50%

60%

70%

80%

Netw orkNational TV

Local TV Nationalradio

Local Radio NationalNew spaper

LocalNew spaper

Magazine Out ofhome

Overall

Expenditure Growth 1999-2003 (%)

Magazines reach efficiently upscale Hispanics with different interests

12.7%

36%

41%

59%

Television Magazines Radio Newspaper

Spanish language media only

Magazines are the 2nd most consumed Spanish language media in the US Hispanic Market

Source: Simmons Fall 2003 NCS/NHCS Study Adults 18+

Spanish language magazines penetrate 41% of the Hispanic market 18+, more so than radio

Upscale Hispanics are very attractive

Bottom Line

• The US Hispanic market is large, it grows, it is attractive and is here to stay

• Nevertheless, this group is not a homogeneous one. Key differences include geographic origin, personal interests, income level, American acculturization and preferred language among others

• Therefore, appealing to it requires tailored content/products accounting for key demographic and psychographic differences

Happy Start:

Suspense & Drama:

Happy Ending:

How to write a successful novel?How to write a successful novel?

cracking the us hispanic code

Business