Through a special arrangement, what follows is an excerpt of a current article from CPGmatters, a monthly e-zine, presented here for discussion.
Hispanics account for 14 percent of the U.S. population, 30 percent of population growth and eight percent of U.S. buying power - yet Spanish-language media represents only four percent of advertising dollars.
"Even though Hispanics are growing at a fast rate, they are still under-index relative to the population and relative to their share of buying power. It's half of what their buying power may justify," said Dan Kitrell, vice president of account solutions at Marx Promotion Intelligence.
Mr. Kitrell recently outlined the role of Spanish-language consumer promotions at the Industry Coupon Conference hosted by the Association of Coupon Professionals (www.couponpros.com).
In 2005 and 2006, 88 manufacturers used either bilingual FSIs (free-standing inserts) distributed through mainstream newspapers or Spanish-language FSIs distributed through Spanish newspapers.
Of that total, 28 manufacturers relied on Spanish-only FSIs, 46 used bilingual FSIs, and 14 did both. Procter & Gamble, for example, used its Spanish vehicle, Ahorros de P&G, as well as a bilingual one. Spanish FSIs were up 20.4 percent in pages in 2006 compared to the previous year.
Spanish-language media also includes TV, radio and magazines. Total expenditures in Spanish-language media grew 6.8 percent in 2006 versus 2.2 percent for all other media.
"If you are going after Spanish-language consumers, it's best to get them early," said Mr. Kitrell. "Not only do you get the lifetime value of that consumer, you also get the influence that consumer has over future generations, which is very strong within the Hispanic community."
For marketers targeting Hispanics, Mr. Kitrell offered three recommendations:
- Understand that Hispanics are not a homogenous segment. Apply segmentation based on language, culture, acculturation, lifestage and other variables to align the category, brand and media with the Hispanic consumer.
- Develop an inclusive campaign. Focus on universal truths that incorporate culturally relevant cues appealing to Hispanics without excluding non-Hispanics.
- Align consumer promotions with shopping behavior. Modify promotion tactics that deliver value in preferred categories, on preferred sizes, and in preferred quantities. Focus on creating loyalty longitudinally rather than through pantry loading.
Discussion Question: What do you think are some of the most effective advertising/promotion methods to reach Hispanic consumers? What are some common mistakes marketers make in targeting Hispanics?