The Hispanic Market – Your Client’s New Niche Presented by: Reynaldo Cano, South-West Texas...
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Transcript of The Hispanic Market – Your Client’s New Niche Presented by: Reynaldo Cano, South-West Texas...
![Page 1: The Hispanic Market – Your Client’s New Niche Presented by: Reynaldo Cano, South-West Texas Border International Trade Center and Peter Morales, SBDCNet.](https://reader034.fdocuments.us/reader034/viewer/2022051401/56649e9e5503460f94ba0462/html5/thumbnails/1.jpg)
The Hispanic Market – Your Client’s New Niche
Presented by: Reynaldo Cano, South-West Texas Border International Trade Center
andPeter Morales, SBDCNet
This material is based upon work supported by the U.S. Small Business Administration. Any opinions, findings, conclusions or recommendations expressed are those of SBDCNet and do
not necessarily reflect the views of the U.S. SBA. This U.S. Small Business Administration (SBA) Grant is funded by the SBA. SBA’s funding is not an endorsement of any products,
opinions, or services. All SBA funded programs are extended to the public on a
nondiscriminatory basis.
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In our presentation, the only realcommon term tying variouspeoples together is the label “Hispanic.” We will highlight the many facets of these diversegroups and endeavor to stimulate appreciation, awareness and continuing inquiry into this complex consumer segment.
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• When you think Hispanic consumer, what comes to mind?
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Agenda
• Who is the Hispanic consumer?
• Where is the Hispanic consumer?
• Why is the Hispanic consumer important to small businesses?
• What are some tools in helping your clients target this consumer niche?
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Who is the Hispanic consumer?
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28 Hispanic or Latino CategoriesAs identified by the US Census Mexican Puerto Rican Cuban Dominican Republic
Central American: Costa Rican Guatemalan Honduran Nicaraguan Panamanian Salvadoran Other Central American
South American: Argentinean Bolivian Chilean Colombian Ecuadorian Paraguayan Peruvian Uruguayan Venezuelan Other South American Other Hispanic or Latino: Spaniard Spanish American All other Hispanic or Latino
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Affluence
• Hispanics in the continental U.S. are wealthier than most in Latin America
$0 $5,000 $10,000 $15,000
US Hispanics
Puerto Rico
Venezuela
Uruguay
Mexico
Argentina
Chile
Costa Rica
El Salvador
Guatemala
Honduras
Per Capita Income
Source: Marketing to American Latinos
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Age
• The Hispanic Market is young
• Hispanic median age is much lower than General Market (26 years vs. 34)
Source: The Hispanic Market Primer
http://www.hispanic-market.com/a_primer.html
2634
0
5
10
15
20
25
30
35
HispanicMarket
GeneralMarket
Age Comparison
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Age Distribution by Sex and Hispanic Origin: 2002
Source: The Hispanic Population in the US, March 2002, US Census
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Heritage• Among Hispanics, more than half of 18-34 year olds, a very lucrative segment,
were NOT born in the US
41.2% 38.6%
53.1%55.7%
Born in the US Not Born in the US
18 +18-34
Source: Simmons Hispanic Study 2002
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Where is the Hispanic consumer?
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Population Trends• U.S. Hispanic population is larger than Canada’s
total population by almost 4.5 million people
• It was projected that Hispanics would be the largest minority in the U.S. by the year 2010They reached that milestone in 2003
• In less than 40 years, the Hispanic market has quadrupled, a trend predicted to continue
Source: Hispanic-Market.com & Current Population Survey, March 2002, PGP-5
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Population
• U.S. is the fourth largest Spanish speaking country in the world
• Los Angeles is the third largest Spanish speaking city in the worldAfter Mexico City, Mexico and Buenos Aires,
Argentina
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Hispanic Population as % of U.S. Population, 1960-2002
3.9%5.2%
6.4%
9.0%
12.5%13.30%
1960 1970 1980 1990 2000 2002
Source: Current Population Survey, March 2002, PGP-5
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Hispanic Population by State, 2002
The Hispanic Population in the US, March 2002, US Census
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Hispanic Population Percentage for Selected States, 2002 (estimates)
New MexicoCalifornia
Texas
Arizona
Nevada
Colorado
Florida
New York
New Jersey
Illinois
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Source: 2000 Census, http://www.census.gov
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Percent Change in Hispanic Population, 1990 - 2000
Source: 2000 Census, http://www.census.gov
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Non-Traditional Hispanic Cities
• Growth in cities due to shifting labor demands service industry industrial
development areas
• Growth attributed to relocation migration
0% 20% 40% 60% 80% 100% 120% 140% 160% 180%
Las Vegas
Ft. Smith
Bend
Atlanta
Wilmington
Omaha
Knoxville
Jonesboro
Little Rock
Minneapolis
Hispanic Non-Hispanic
Latino Population Growth, 1990-2002
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New Hispanic Population Destinations
City # of Hispanics
% of
Total pop.
Hispanic Growth
1980-2000
Raleigh, NC 72,850 6% 1180%
Atlanta, GA 268,851 7% 995%
Greensboro, NC 62,210 5% 962%
Charlotte, NC 77,092 5% 932%
Orlando, FL 271,627 17% 859%
Source: Latino Growth in Metropolitan America. Center on Urban & Metropolitan Policy and the Pew Hispanic Center.
http://www.pewhispanic.org/site/docs/pdf/final_phc-brookings_paper-appendix-tables.pdf
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Why is the Hispanic consumer important to small business?
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• Targeting Hispanic consumers may help your clients tap an often undiscovered niche for their small business
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Hispanic Market Facts
• Have a combined buying power of $630 billionBuying power is increasing at a rate of 118% per yearPopulation increased by 58% in the past ten yearsBuying power is estimated to surpass 1 trillion dollars by the
year 2010 and 2 trillion by 2020
• Between 2000-01, HALF of all new consumers in the U.S. were Hispanic40% from 90-00
Source: Association of Hispanic Advertising Agencies, Missed Opportunities
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U.S. Hispanic Purchasing Power
• Business Perspective
Sustained Population Growth
Sustained Economic Growth
Important Segment of the U.S. market
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Hispanic Households
• 8.5 Million Hispanic families 63% w/children under the age
of 18 27% Hispanic families with 5
or more people
• $33,565 median Household income in 2001
• 46% Hispanic home ownership
Source: Census Bureau Facts for Features, http://www.census.gov
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Hispanic Households
• Hispanic household growth rates outpace the average Total household growth rate,
from 1990-2000, is 14.5% Hispanic household growth
rate, from 1990-2000, is 31%• Hispanic households tend to be
larger because of extended family and larger family units
Hispanic Households in the US, 1999
Cubans
Puerto Ricans
Central & South
Americans
Other Hispanics
Mexicans
Source: Cultural Access Group, Based on US Bureau of Census , Current Population Reports, February 2000
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The Young Hispanic Adult
• 18-34 years olds are a coveted target market segmentMore than half (68%) of this Hispanic segment are Spanish
dominant or bilingualThey consume Spanish and English broadcast media at nearly
equal ratesThey are heavy readers of magazines with a focus on
lifestyle, entertainment, automotive, and sports They are more persuaded by advertising in Spanish and are
more loyal to companies with advertisement in Spanish
Source: Association of Hispanic Advertising Agencies
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Buying Style
• In comparison to the average U.S. 18-34 year old segment, Hispanics 18-34 year oldsAre 40% more likely to be impulsiveAre 30% more likely to believe that advertisement
gives true picture Are almost 30% more likely to try different brands
Source: Simmons Hispanic Study 2002
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Psychographic Profile of Young Hispanics
• They like to have the latest electronic equipment and are willing to pay for it
• They live in the moment• Free spending helps to improve their image• Concerned about looking young but don’t exercise
regularly or eat a balanced diet• Like cable TV• Shop on the Internet more than ever
Source: Association of Hispanic Advertising Agencies
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Average Annual Expenditures for Selected Goods
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
Food
Housing
Apparel & Services
Transportation
Health Care
Entertainment
White Hispanic African American
Source: Hispanic Association on Corporate Responsibility http://www.aacc.nche.edu/hacr/demographics/expenditure_2.html
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Market Place Myths
• We are living in a “post-ethnic”America
• Everyone has the basic target market profile
• The majority of young Hispanics only speak English and therefore only consume English language media
• Only older Hispanics consume Spanish-language media
Source: Association of Hispanic Advertising Agencies
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Segmentation
• Rating scale of consumer preferences based on languageSpanish onlySpanish preferredTrue bilingualsEnglish preferredEnglish only
Source: Marketing to American Hispanics
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Segment Specific Campaign
• English preferred
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Segment Specific Campaign
• Spanish Preferred
• Spanish solidifies a connection to their country of origin
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Current Situation
• Many businesses are afraid of doing the wrong thing in their efforts to target Hispanics
• Strong racial divides in society are now being replaced by more nuanced views
Source: Association of Hispanic Advertising Agencies
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“In-Culture” Marketing
• Strong identification with what mainstream Americans consider “traditional values”strong commitment to family, religion and heritage
• Each Hispanic group is distinct and possess different customs and idiosyncrasies
• Pronunciations are different depending on the country of origin
• Challenge is how to communicate one common message to these different Hispanic groups
Source: Hispanic-Market.com
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“In-Culture” Marketing
• Hispanic groups tend to share similarities in terms of values, beliefs, culture, and self-perception
• Creative communication that captures the relevant emotional triggers of a realistic Hispanic lifestyle will convey a memorable message
• An effective marketing goal should be to create the appropriate marketing message so you can connect with this diverse yet unique group
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“In-Culture” Marketing• High level of loyalty to Hispanic spokespersons,
celebrities, and sponsors• Adherence to the familiar due to limited brand
choices in country of origindetergent Ariel
• Always searching for new product and service informationcoupons, flyer, etc.
Source: Hispanic-Market.com
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Only Your Client Can Determine When his/her Small Business
should Target the Hispanic Niche
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What are some tools in helping your clients target this consumer
niche?
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Essential Sources
• 2000 U.S. Hispanic MarketStrategy Research Corporationwww.strategyresearch.com
• Marketing To American LatinosBy Isabel ValdésParamount Marketing Publishing
• Hispanic Market Handbook By Isabel Valdés & Marta Seoane Gale Research
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Tools
• Refer to SBDCNET website http://sbdcnet.utsa.edu
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Questions
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Thank You