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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

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latino boom

Latino Boom!

Everything you need to know to grow your business in the U.S. Hispanic market

the perfect 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 market1
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 market2
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 market3
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 market4
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
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
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 avoid1
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 avoid2
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 avoid3
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 avoid4
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 avoid5
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 avoid6
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 avoid7
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 avoid8
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 avoid9
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
Market Trends
  • Growth of Latinos in non-traditional areas

Growth of Hispanic population in mid-western states 1990 -2000

State 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 trends1
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 trends2
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 trends3
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 trends4
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