“Así Somos” is Spanish for “This is who we are”. We are a bimonthly blog which publishes critical insights and interesting highlights on how to

address the flagrant and subtle nuances that each market researcher needs to fully comprehend when addressing their client’s needs in the

domestic Hispanic markets and throughout the Latin American subcontinent. Visit us on-line at: www.asisomos.info

Así S

om

os

THE “HISPANIC“ MARKET RESEARCH OFFICIALBLOG

The Market Research Map of Latin America

What is Así Somos and Why do you need to read it

“Así Somos” is Spanish for “This is

who we are”. We are a bimonthly blog

which publishes critical insights and

interesting highlights on how to address

the obvious and subtle nuances that

each market researcher needs to fully

comprehend when addressing their

client’s needs in the domestic Hispanic

markets and throughout the Latin

American subcontinent.

We will write a couple of articles a

month through which we will address

issues like “What is a Hispanic”, “Is their

finally a definition of Acculturation I can

use?”, “Is their only one Latin America”,

“Actionable Segmentations with

Hispanics in the US”, “Selecting Trial

Markets in Latin America”, and many

others down the road, we hope you will

find interesting.

In addition, “Así Somos” will share

with you actionable suggestions on how

to conduct more efficient CATI and web

interviewing with Hispanics or when to

consider face-to-face or intercepts over

other interviewing options.

We will also go over other cultural

nuances, like additional considerations

when analyzing results on monadic

product testing with Hispanics, or how to

address the excessive cultural kindness

observed when Hispanics work the scale.

But don’t worry, we haven’t forgotten

our qualitative research colleagues. We

will also talk about “moderation

techniques” that might get you in trouble

and others that may render better than

expected results.

We will constantly be addressing,

apparently simple, yet profound issues

like language: “Is Spanish always the

same?” We will go into “when a

monolingual moderator will satisfy your

needs” and “when will an English “able”

or bilingual moderator be needed to

conduct some groups.”

And still, their is much more to come.

Gender is a very important consideration

when conducting research with

Hispanics. We will address issues like: Is

“Machismo” exclusive to men in Hispanic

Cultures?, or “How does male-female

relationships and behavior vary while

moving up and down the socioeconomic

level scale?”

We will add to the articles in the “to

publish list”, recommendations on how to

design practical and cost/effective

Hispanic studies as well as multicountry

projects. We will comment on the “watch

out for this” list that we will be building

together issue by issue.

However, “Así Somos” is first and

foremost, a blog dedicated to our

readers. This is why we will gladly accept

your collaborations for approval and

publication and why you may request the

topics you would like us to write about.

“Así Somos” is also a great means

to underline and enhance your Hispanic

and multicultural capabilities. We reach

hundreds of experienced researchers and

hundreds of end-users as well. Email us

to talk about sponsoring “Así Somos”!

We will be happy to help you.

But let us begin today with “The

Market Research Map of Latin America”.

Arco de Santa Catalina, Antigua Guatemala: This monumental arch was built as a passageway between the monastery and adjoining school. The buildings were constructed to accommodate an increase in religious followers during the 17th century.

DECEMBER 2009 ISSUE 1 COPYRIGHT©2009 ASI SOMOS.INFO

The Market Research Map of Latin America

By Juan Carlos Arriola, PRC

There are countless valid criteria

from which a map of Latin America can

be drawn. However, from a market

research perspective, we must focus on

those countries or groups of countries

which may share core traits that allow us

and our clients to understand the broad

characteristics of a specific market. In

this article we will go over

anthropological, openness and practical

criteria.

However, regardless of the

perspective utilized to group a population

as outlined above, budgets must

prioritize the importance of the targets a

study must focus on. So, in “Así

Somos”, we join this ongoing effort by

first prioritizing countries and regions

using a completely objective unit of

measure: money.

According to the Congressional

Research Service, “U.S. exports to Latin

America grew well above the average for

the world (111.8%), expanding by 18.8%

in 2008. Export growth to Mexico, the

second largest U.S. export market, grew

by 11.3%, while U.S. export growth to

the other major Latin American markets

rose by 51.2% to Peru, 45.8% to Chile,

33.7% to Brazil, 32.6% to Colombia, and

27.1% to Argentina. These trends reflect

strong national economic growth

experienced in much of Latin America

through most of the year. Exports to

major Latin American trading blocs

varied, but all grew above the average for

U.S. export growth to the world.”

Within the region, Mexico is the

largest trading partner. So don’t be

amazed when you read official statistics

that refer to the region as “Latin America,

or LatAm, + Mexico”. Just look at the

graph at the right and you will easily see

why Mexico requires specific research

and why economists who study the

region, separate Mexico from the rest.

However, as a market analyst, I need

to add Brazil into the mix on an individual

level too. Brazil, for one, is the largest

economy in Latin America and the fact

that it represents roughly one sixth of the

trade with Mexico only states the

enormous business potential it

represents. In other words, if a company

isn’t doing business with Brazil yet, they

are missing on it!

Latin America is composed of a

series of political, geographical or trading

blocs. Some, like Central America, from

Guatemala to Costa Rica have signed, as

a bloc, free trade agreements with the

United States (US-CAFTA-DR) and only

two years from being signed into law,

already grows at double digit annual

rates.

Other blocs in the region are: the

CARICOM or Caribbean Community (it

does not include the Dominican Republic

which is part of CAFTA, hence the DR),

MERCOSUR which include Argentina,

Chile, Brazil, Uruguay and Paraguay; and

the Andean Community with Colombia,

Ecuador, Bolivia and Peru.

However, blocs don’t necessarily

mean that business can be done with one

country in equal circumstances as with

the other, or that conducting research in

one country is valid if the results are

extrapolated to another. Please keep in

mind that these “blocs” have been drawn

by politicians and do not necessarily

represent cultural, ethnical or other

anthropological population traits.

An Anthropological Map

Latin America had three major pre-

colonial millenary civilizations: The Aztecs

in today’s Central Mexico; the Mayans in

Southern Mexico, Guatemala and

northern Central America; and the Incas

in today’s Peru, Bolivia and Ecuador in

South America’s Andes.

Mexico60%

Brazil10%

Others30%

US trade with Latin America

Watch out for this:

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Latinfacts

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ligula nec.

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quis, mattis vel, elit. Phasellus tincidunt

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ante.

The Spanish were the major colonial

power in the region and donor of the vast

cultural characteristics prevailing in Latin

America. The Portuguese, by their own

right, also left their mark being the sole

colonial power in Brazil, hence Brazil’s

Portuguese language. Although, more of

an influence, than a power, the Italians

had a major roll in conforming many

countries, specially in South America as

did the Germans.

Historically, these other European or

Asian peoples merged with the local

prevailing community contributing to a

new unique national identity. For

example, Argentina and Chile are the

most European of the South American

Countries, both in architecture and

education as in other characteristics.

Perú, Bolivia and Ecuador are

countries with a heavy Inca influence and

population. Although some of the Inca

population remains true to its race,

language and customs,

as with the Mayas and

Aztecs the local indians

have merged with the

Spanish and their

descendants to

conform a new

ethnicity: “The Mestizo”. Actually, the

Mestizos are the larger segment of the

population in these countries, followed by

the local Indians and the European.

Peru, however adds a heavier Asian,

specially Japanese influence in society

including one of the largest Japanese

communities in Latin America.

Central America, on the other hand,

is an interesting mix of everything. It has

a strong indigenous population,

descendants of the Mayan civilization, a

very large Mestizo population segment, a

large European descendent population,

as well as Asian, Jewish, Arab, African

and Palestinian native Hispanics.

A Openness Map

According to the Wall Street Journal

and the Heritage Foundation’s 2009

Index of Economic Freedom, Chile,

position 11, is the most open and free

country in Latin America. It is also the

more transparent and the more

developed. Costa Rica (46), Mexico (49),

Panama (55) and Peru follow as some of

the countries that rank higher in

economic freedom.

These countries have experienced

higher GDP growth and were affected

less by the latest recession. Their

population is better educated than that of

their neighbors, experience lower inflation

and unemployment rates and are in

general terms safer countries to work and

live.

On the other hand, Cuba and

Venezuela are ranked last in the region.

Those countries that follow Venezuela’s

lead, Ecuador, Bolivia, Nicaragua are

hostile toward foreign investments, trend

toward nationalization of private property

and industry and often suppress freedom

of speech and jail the regime’s

opposition.

Their people suffer from continuous

inflation, higher unemployment, increased

uncertainty, higher poverty and in general

terms very high violent criminal activity

and an intervened economy.

A Practical MapIn practical, macro terms, except

when interested in specific regional or

national markets; think of Latin America

as Mexico, Brazil and the rest of the

region. The rest of the region however, is

“an opportunity waiting to be capitalized

upon”. My suggestion is to look at the

countries or regions that represent a

higher potential: Chile, by all means the

most developed of the Hemisphere;

Colombia and Panama both have shown

remarkable dynamism, macroeconomic

coherence and sound financial

management; and Peru, has surpassed

considerable hurdles and developed

middle and long term economic and

trade policies. Central America and the

Dominican Republic, have slowly but

surely taken advantage of the US Free

Trade Agreement,have others in place

with Asia and are working in a new one

with the European Union. Also consider

Argentina, that although currently lost in

the road toward development, may soon

refocus on the right path.

When conducting research in

Mexico, keep in mind that it is mainly a

three region country: Monterrey and

Guadalajara in the north represent a

sample of people that may not reflect the

opinions of those in Mexico City in the

Center of the country, or those in Puebla

or to the south, where the reality on the

ground has more similarities with Central

America than with the rest of Mexico.

Así S

om

os

From the Director’s Pen:

Welcome you to our first issue of

Así Somos. As an almost 20 year

veteran of qualitative and quantitative

Hispanic & Latin American market

research; and as a cultural and

academic product of both lands,

people, languages, idiosyncrasies, I

know that trying to capture into a blog

the hundreds of years of multi-racial,

multi-ethnical, multi-cultural and multi-

educational characteristics that make

up the group we call today “Hispanics”,

is nothing but an awesome challenge.

Making it useful for you, is even more

so.

As we celebrate the birth of this

blog we do it with the greatest respect

for the dozens of highly qualified market

research professionals that, day in and

day out, work in the complex arena of

the Hispanic markets. We encourage

you to contribute your experience and

knowledge with our readers by

submitting articles for publication. This

will not only help everybody understand

the great quality of research

professionals available out there, but

will learn about those subtle nuances

that make all the difference in these

markets of ours.

Furthermore, we are launching this

blog with our research colleagues and

clients south of the border in mind as

well. We all share the joy of working in

the complexities of the latino markets

and also share the challenge of

successfully overcoming the cultural,

educational, socioeconomic, linguistic,

regionalistic and geographical

complexities; intrinsic to Latin America.

¡Bienvenidos sean todos ustedes a Así

Somos!

We believe that if we truly want to

build a successful blog, we will do it in a

way it reflects our readers needs and

habits while it provides actionable

answers to your questions. So, every

once in a while, we will stop at the side

of the road and take a moment to talk to

you and ask you about how we can

serve you better. After all, what kind of

researchers would we be if we don’t

conduct a survey every once in a while!

So feel free to keep us honest, at

any time! I hope you enjoy our work.

We will appreciate you reading us and

your feedback.

Contact “Así Somos” by sending us an email at:info@asisomos.info

Visit our blog On-line at:

www.asisomos.info

Participate in our Forum at:

www.asisomos.info/forum

ASI SOMOS13747 MONTFORT DRSUITE 330DALLAS, TX 75240

Así Somos The “Hispanic“ Market Research Official BlogJeffry Savitz

President

Juan Carlos Arriola,PRC

Executive Director