Total Market and Hispanic Millennials

New Data Provides a Look at the Future of the Hispanic Market

Introduction

Jose R. Villa President / Senior Strategist Sensis

@jrvilla

Two hot topics in Hispanic market

Total Market Approach Hispanic Millennials

Total Market Definitions & Debate

Three (actually two) Models Being Debated • Multicultural Marketing – targeted marketing efforts to specific,

clearly defined ethnic groups

• Total Market Approach – one marketing program designed to reach all consumers, across general and ethnic markets

• Cross-Cultural Marketing – one marketing program that leverages ethnic markets to reach across ethnic and general markets

All 3 models are relevant today

The future?

• But what is the model of the future?

• Need to look at the future of the Hispanic market: – Hispanic Millennials – Emerging Hispanic Markets

HISPANIC MILLENNIALS

• Innovative research initiative on U.S. Hispanic millennials

• Designed to compare Hispanic millennials to non-Hispanic millennials as well as their older Hispanic (35+) counterparts

• Digs deeper into points of tension, segmentation, and difference between U.S.-born vs. foreign born.

www.HispanicMillennialProject.com

Introducing the Hispanic Millennial Project

Research Methodology

Wave 1 Methodology • ThinkNow Research conducted a nationwide

online survey between March 14-19, 2014. • Respondents in each group were weighted to

match US Census for gender, age and US region.

• A total of n=900 interviews were completed. Qualified respondents were segmented into one of the following three groups:

Waves 2-5 • The study and research will be conducted

and released in waves in 2014 and early 2015 • Each wave of The Hispanic Millennial Project

will focus on a different topic relevant to this segment:

– Wave 2: Healthcare (Jul 2014) – Wave 3: Financial Services (Sep 2014) – Wave 4: TBD* (Nov 2014) – Wave 5: TBD* (Jan 2015)

We’re looking for suggestions

Spanish is key to reaching Hispanic Millennials Hispanic Millennials, particularly those that are U.S. born, are most likely to

indicate they consume media equally in English and Spanish (~ 40%).

Even among U.S.-born Hispanic Millennials, only 40% indicate they consume English media mostly or exclusively.

Insight #1

Importance / tension around Latino culture

Fitting in vs. Standing Out • Hispanic Millennials struggle

with the need to fit in with mainstream culture, while trying to maintain their cultural identity.

Being Latino • 47% of Hispanic Millennials

indicate that they feel close or somewhat close to their culture, while 67% of them state that they want to stand out as a Latino

Insight #2

EMERGING HISPANIC MARKETS

New Hispanic Markets Emerge Hispanics are increasingly immigrating to nontraditional markets outside the Hispanic immigrant gateways of Los Angeles, New York, Miami and Chicago. Mexicans have been migrating to nontraditional states in the Southeast and Midwest — Georgia, North Carolina, Ohio, Wisconsin, Nebraska, etc. — and less to traditional areas in the border states and the Southwest.

Rapid Hispanic Millennial Growth in the next 5 years in emerging markets

25% 30% 35%

Insight #3 Hispanic Millennial & overall Hispanic population growth in these markets is being driven by foreign-born Hispanic Millennials.

TWO HISPANIC MARKETS TWO HISPANIC MARKETING MODELS

Emergence of two distinct Hispanic markets… driven by two different Hispanic Millennials

• New “minority” immigrant-driven Hispanic population centers in places like Atlanta and Charlotte – Driven by foreign-born Hispanic Millennials

• Native-born Hispanic majority markets, like LA

and San Antonio, where a new fusion culture is taking hold – Driven by U.S. born Hispanic Millennials

… so back to the Total Market Approach question

Which model makes sense for the future?

Two Models for the Two Markets

“Fusion” Mega-Markets Cross-cultural

Emerging Markets

Multicultural (ethnic-specific)

Bifurcated Hispanic Marketing Models

Cross-cultural / “Fusion” Mega Markets

• One marketing program that leverages ethnic market (insights) to reach across ethnic and general markets

• Focus on culture and “crossing over”

• Language still relevant

Multicultural / Emerging Markets

• Targeted marketing efforts to specific, clearly defined ethnic groups

• “Separate and distinct” market opportunity well suited for Hispanic-targeted marketing initiatives

• Spanish language is key

Thank You

Jose R. Villa President / Senior Strategist Sensis

@jrvilla

/in/JoseVilla

ThinkMulticultural.com SensisBureau.com

APPENDIX

Top 10 “Fusion” Mega Markets

Top 15 Emerging Markets