Shoestring Marketing: Hispanic market no long a sleeping giant

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Alf Nucifora is an Atlanta-based marketing consultant.|ret||ret||tab|

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For far too long, only interested demographers and savvy marketers fully appreciated the looming potential of the Hispanic sector as a consumer category to be reckoned with. But the sleeping giant has finally awakened, and every marketer must now come to terms with a buying power that can no longer be ignored. |ret||ret||tab|

The raw numbers attest to a juggernaut in the making:|ret||ret||tab|

Hispanic-Americans now comprise 13.5 percent of the U.S. population, numbering approximately 39 million in 2002 and projected to grow to 50 million by 2007.|ret||ret||tab|

The Hispanic sector is expected to grow at an astonishing 29.1 percent rate during the next five years, eclipsing African-American (7.9 percent) and Asian-American (23 percent) growth rates.|ret||ret||tab|

Hispanic-American buying power, currently totaling $580 billion, is expected to reach almost $1 trillion in five years, the result of an unstoppable 59.5 percent rate of growth. |ret||ret||tab|

The states with the greatest concentration of Hispanic buying power include California, Texas, Florida, New York, Illinois, New Jersey, Arizona, Colorado, Georgia and New Mexico. |ret||ret||tab|

The fastest growing states in Hispanic buying power are predominantly in the South, and include North Carolina, Arkansas, Georgia, Tennessee, Alabama, South Carolina, Nevada, Minnesota, Kentucky and Iowa.|ret||ret||tab|

Hispanic-Americans spend on average $32,735 versus $38,045 for all American consumers. They spend more than average on groceries, telephone services, furniture and apparel; about the same on restaurants, alcoholic beverages, utilities and fuels, household products and appliances, and electronic equipment; but less on health care, education, insurance, pensions and Social Security, fees and admissions, and tobacco products. |ret||ret||tab|

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Distinguishing factors |ret||ret||tab|

Ernest Bromley, chairman and CEO of Bromley Communications, a leading Hispanic marketing communications company with clients such as Procter & Gamble, Burger King and Western Union, contends that most American marketers do not fully comprehend the value and extent of the marketplace.|ret||ret||tab|

"The Fortune 100 companies get it; companies such as P&G, Coca-Cola, McDonald's, Anheuser-Busch," Bromley said. "But, marketing budgets geared to the Hispanic market always have to be justified more carefully. It's a familiarity thing. People do what they're comfortable with."|ret||ret||tab|

Bromley said that in some Hispanic-heavy markets, such as Miami, Houston and Los Angeles, Hispanic television programming from the likes of Univision and Telemundo out-pulls traditional network fare, an obvious indicator of the need for a mix of English and Spanish advertising in those markets.|ret||ret||tab|

"Initially, the Latino immigrant came solely for economic opportunity; the ability to send dollars back home. But they got a good job, met someone, got married and now seek the American Dream just like everybody else," said Bromley. And, like most Americans, they are heavily brand conscious.|ret||ret||tab|

According to Manuel Bellod, CEO of Terra Networks USA, an Internet portal that provides content for the 14 million Hispanics connected to the Internet, most Hispanic-Americans connected to the Internet use the medium in a similar fashion as the rest of the world; for e-mail, research and instant messaging. |ret||ret||tab|

Terra Networks notes heavy Internet usage of online funds transmittal and the search for the cheapest prepaid calling cards (by country). On a separate note, Bellod advises that Hispanic-Americans who are fluent in English still respond more favorably to a message conveyed in Spanish. |ret||ret||tab|

Advice to the marketer|ret||ret||tab|

For the small- to medium-size business contemplating a foray into the Hispanic marketplace, Bromley has this advice:|ret||ret||tab|

Who is your customer? Try to quantify the size, dimension and potential of the Hispanic marketplace in your city or region.|ret||ret||tab|

Be bilingual in your communications, particularly with in-store signage and merchandising. |ret||ret||tab|

If possible, hire a Hispanic agency or consultant for marketing help. This is one instance where expert knowledge counts. |ret||ret||tab|

Bellod provides a similar perspective. "Never underestimate the potential, size and purchasing power of the marketplace," he said. He also suggests the following: |ret||ret||tab|

Never patronize the market. Always respect the culture. Hispanic-Americans are easily offended. |ret||ret||tab|

Remember that to the Latino, respect for family is a core belief and fundamental practice. |ret||ret||tab|

Loyalty is a big issue with Hispanic consumers. If they're familiar with your brand and trust you, they will buy the product and pay the price even though they are discriminating price shoppers. |ret||ret||tab|

Effective communication is more than just translating an English message into Spanish. It requires a communication process that must be built from the ground up.|ret||ret||tab|

Bellod sums it up best when he says about Hispanic-American consumers, "You must earn the right to sell to them."|ret||ret||tab|

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