latino boom!
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Latino Boom!. Everything you need to know to grow your business in the U.S. Hispanic market. The Perfect Market. Fastest growing From 1990 to 2000, Hispanic population grew by 57.9% United States population increased 13.2% Estimated 41+ Million Hispanics in the U.S. today - PowerPoint PPT PresentationTRANSCRIPT
Latino Boom!
Everything you need to know to grow your business in the U.S. Hispanic market
The Perfect Market
Fastest growing
From 1990 to 2000, Hispanic population grew by 57.9%– United States population increased 13.2% – Estimated 41+ Million Hispanics in the U.S. today– Adding Puerto Rico = 45 Million– African Americans = 36 Million, or 13%
Grows 5x faster than the general market– Will account for 46% of population growth from 2000-2020– Grows by 1 MM persons each year!
Latino population is highly concentrated – 50% live in California & Texas alone!– Urban areas
The Perfect Market
Getting Younger
Latino Baby Boom = 20% of all births 20% of all teenagers
– Hispanic teens will grow 62% by 2020
– Overall teen population will grow by only 10%
In 2000, 35% of all Hispanics were under 18
– 50% are under 34! Median age for Hispanics (25.9) is almost 10 years
younger than that of the overall population (35.3)
The Perfect Market
HH Income Median Income still lags behind U.S. average:
– $34,670 versus $43,570 in 2000• Source: Synovate
US-born Latinos are faring better than foreign-born– In 1998, 42% US-born Hispanic HH’s had reached the middle class
vs. 60% of Non-Hispanic Whites• Source: Thomas Rivera Institute, 2000
The percentage of Hispanic Households earning $50K+ is expected to increase 50% by 2005
The Perfect Market
Buying Power
Hispanic buying power has been growing twice as fast – From 1990-2009, Hispanic buying power has grown at a compound
annual rate of 8.2% vs. 4.9% for non-Hispanics
Since 1990 Hispanic buying power has grown 347% – Will reach $992 Billion by 2009
– Will account for 9% of the nation’s total, up from 5.2% in 1990
Source: Selig Center for Economic Growth
The Perfect Market
Hispanics are not a race, they are an ethnicity– New Multicultural Mainstream:
– In 2000, 83 MM minorities spread across the country
– Each minority has concentrations in different urban areas
Combined buying power of racial minorities has increased 242% since 1990 (Black, Asian and Native American)– Will reach more than $1.5 Trillion by 2009
– Account for 14.1% of the nation’s total buying power
– African Americans will account for 62% or $965 Billion
By 2050, fifty percent of the US population will belong to a racial or ethnic minority
Media Habits
Latinos are heavy media consumers – Watch more TV than any other group
• 57 hours vs. 53 hours a week
• Univision dominates in Spanish (80 share)
– Most watched English-language channels• Discovery, UPN, Fox, WB, ESPN
Majority consume media in both languages– 53% read Spanish-language magazines– 63% read English-language magazines
10 mistakes you should avoid
1. Do not make assumptions– One size does NOT fit all– Minorities represent 23% of total population– How do you define your target market
• Celebrity Magazine example
– Target = women 35-55
– Define “celebrity” Univision vs. mainstream
– Define “gossip” Hola vs. People
• Jeans manufacturer example
– Translations don’t work • “vuele en cueros” campaign
10 mistakes you should avoid
2. Don’t launch a product with out doing your own research– Chevy Nova example
• “No va” = it doesn’t work!
– Limited research exists on Hispanic market• Question reliability of what does exist• How were the “Hispanic” panels defined
– Language preference, HHI, location, length of residence
– Cultural prejudice or ignorance• We are different in many ways: Family values• Over-index Groceries, Fast Food, Clothing, Cars, Travel
10 mistakes you should avoid
3. Don’t enter the market without making a commitment– If not, you will FAIL!– Don’t “test the waters”
• Hispanic market is larger than Canada!
• Give your project enough Time and Money
– Long term growth vs. short term gain– Hispanic consumer market is fastest growing
• 1MM+ new consumers a year!
– TV Guide en español example
10 mistakes you should avoid
4. Don’t forget to get your message out– Don’t make assumptions about what people “know”– All product launches must be treated as “new”– Do a Public relations campaign
• Hire a Hispanic media expert• Give your launch enough time to create a buzz
– Hire a Hispanic Agency• To develop appropriate new creative• Media Planning and buying
– Don’t forget alternative media and grassroots marketing• Latin Pak, Carmen’s Cupones, Mobile marketing
10 mistakes you should avoid
5.Don’t dilute your brand– Brands have a life of their own– Does your brand have equity in the U.S. Hispanic market?
• Don’t experiment with your brand• Lack of knowledge and respect for this market
– Brand “aliases” in Latin America?• Pampers in US = Dot Dot in Spain
– Global economy = global brands• Latin American brand may be better than “en español”
– Latin consumers are loyal but not stupid
10 mistakes you should avoid
6. Don’t be fooled by a surname – Hire a “real” Hispanic expert
• The “professional” Latino vs. the Latino professional
– Does s/he have the right experience?• Worked in the US Hispanic market is very different than work in
Latin America
– Knowledge of Spanish language and culture is important• It can be correct but does it make sense?
– If you can’t judge, ask someone who can.
10 mistakes you should avoid
7. Don’t forget to educate management– Debunking Latin myths and stereotypes– Get upper management involved early on
• Manage expectations for results• Create proper metrics for ROI
– Minority projects are held to higher standard
• Understand needs to keep things moving forward
– Educate, Educate, Educate• Pass along articles, research, etc.• Get them involved in events, meet the community
– Make them look good
10 mistakes you should avoid
8. Don’t assume Latin projects cost less
– Industry misperception of the reach of general market• #1 TV/radio stations in NY, LA and Miami are Hispanic• 1999 FCC study : $1/General market
– .78 minority format, .71minority- owned & format
• Market fragmentation works in favor of minorities
– To do the job right, it should cost more!• Bilingual talent• You get what you pay for
– TV Guide en español example
10 mistakes you should avoid
9. Don’t treat the market as a “quota”– Who is consuming your product?– If you don’t have the right human capital in house your sales
are likely to be affected.– Are your communication touch points set up to handle needs
of your consumers (customer service, billing)– Avoid ghettoizing once you hire minorities
• Tokenism still exists
– Is it a good story/show/product?• People en español example
10 mistakes you should avoid
10. Don’t assume you know celebrities– The problem with Hollywood Latinos
• They have little to no recognition in the community
• Jimmy Smits / Wilmer Valderrama
• Hispanic TV stars are eager and easy to work with
– The problem with crossover artists• They loose their Latin appeal unless they stay connected to the
community: Shakira, Ruben Blades, Enrique
– The Problem with Spanish language celebrities• Nobody knows them in the mainstream:
– Don Francisco, Myrka de Llanos, El Gordo Molina
Market Trends
Growth of Latinos in non-traditional areas
Growth of Hispanic population in mid-western states 1990 -2000State Hispanic Pop. 1990 Hispanic Pop. 2000 % Increase
Minnesota 3,884 143,382 166%
Nebraska 36,969 94,425 155%
Iowa 32,647 82,473 153%
Indiana 98,788 214,536 117%
South Dakota 5,252 10,903 108%
Wisconsin 93,194 192,921 107%
Kansas 93,670 188,252 101%
Missouri 61,702 118,592 92%
Illinois 904,446 1,530,262 69%
North Dakota 4,665 7,786 67%
Michigan 201,596 323,877 61%
Ohio 139,696 217,123 55%
Source: U.S. Census Bureau, Forecast Analysis; American Demographics FORECAST, April 21, 2001.
Market Trends
Growth of Latinos in non-traditional areas
Immigration is “easier” in non-traditional areas– Clusters of people from same family/region
• New York’s Mexican population (Puebla)
States with Manufacturing, Farming, Service Industries– Jobs that don’t require much English competency
Increase in immigration from unstable Latin American countries– Wealthy, educated Hispanics in larger urban areas
• Miami, New York, LA, San Francisco
– Ripple effect: Central & South Americans• Service industries: Nanny’s, maids, etc.
Market Trends
Corporate America wakes up!
Demand for ways to efficiently reach (make $) from the Hispanic consumer– Today’s market leaders may not stay on top
From 2000- 2004 advertising directed to Latinos in the U.S. grew 87% from $658MM to $1.23B– Need to create advertising in both English & Spanish– Increased development of English-language media vehicles
Reaching Acculturated Hispanics will be key
Market Trends
Media revolution
General market acquisitions of Spanish-language media will revolutionize the Hispanic market– NBC acquires Telemundo in 2002– Sale of Univision?
Need for a Latin TV hit (a la “Cosby”) Cable may lead the way
– Brother’s Garcia, Dora the Explorer - Nickelodeon– SiTV launches in 2004
Market Trends
Media fragmentation
Basics will not change– 18-34 key demographic
• Demo will be more Hispanics than ever before!
Niche marketing will rule!– Need to develop integrated marketing tools
The comeback kid: the Internet– The growing importance of consumer control
• Broadband, satellite, telephone