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How to sell to the Hispanic marketPresented by: Yaziri Orrostieta

+AGENDA

Overview of the Hispanic Market

Insight into the Hispanic purchasing behaviors

Tips on how to engage with the Hispanic consumer

+LATINO OR HISPANIC?

Hispanic: "Hispanic" refers to Spanish speaking people in the Americas.

Latino: refers more exclusively to persons or communities of Latin American origin.

Specific references like “Puerto Rican” or “Mexican-American” or “Guatemalan” are often best.

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Overview of the Market

+OVERVIEW OF THE MARKET

53 million Hispanics in the US

65% of U.S. Hispanics are Millennials, ages 22 to 35

12.7 million Hispanic house holds in the US

1 in every 5 Americans

+MEDIA & THE HISPANIC MARKET

In 2003, U.S. Hispanic media spending totaled $2.8 billion

In 2012, it nearly tripled to $7.9 billion

Hispanic Internet display spending is now at $431 million

Procter & Gamble is the most important U.S. Hispanic advertiser, spending $246.2 million in 2012

The fastest growth in the U.S. Hispanic media spending has shifted from targeting foreign-born immigrants to U.S. born Hispanics

+PURCHASING POWER

$1.2 trillion in purchasing power

The average U.S. Hispanic household income is $52,725

$2.2 billion spent in e-commerce (Q1, 2012)

+DID YOU KNOW?

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Understanding the Buying Behavior

+LATIN CHARACTERISTICS

Family values

Food

Faith

Cultural beliefs and traditions

+CONSIDER THE ENTIRE FAMILY

Shopping and doing business is a family affair

Purchasing decisions are done as a family – even the kids get a vote!

Hispanic culture values and respects the elderly and depend on them for “wise advise”

+WHERE THEY SPEND THEIR MONEY

Hispanic house hold spend more money on (than non-Hispanics): Telephone services Men’s and boy’s clothing Children’s clothing Footwear

A higher portion of their money is spent on: Food (groceries and restaurants) Housing Utilities Transportation

+ECONOMIC SECTORS EXPECTED TO BENEFIT FROM THE LATINO DEMOGRAPHIC CHANGE

+HISPANICS & TECHNOLOGY

Hispanics outpace all ethnic groups in mobile data service consumption including music and picture downloads

Approximately 60% of Latino households own at least one video- and Internet- enabled cell phone compared to 43% of the general market

There are 33.5 million Hispanic Internet user

78% use the Internet as their main information source, even more than television

+INTERNET USAGE INFLUENCES PURCHASING DECISIONS

Learn about available brands of products

Learn about features, benefitis, or specific brands

Get advice on which brands to buy

Learn where item is available

Compare prices

Make final decision on brand to buy

77%

75%

70%

72%

72%

68%

64%

69%

63%

74%

70%

63%

59%

61%

56%

64%

59%

51%

2010 2011 2012

+How to Engage with the Hispanic

Consumer

+BE READY

Be “Latino-ready”, meaning your business infrastructure can support doing business in Spanish Spanish-speaking staff (at least one individual) Have bilingual associates record their voicemail greetings in

English and Spanish Telephone system options in Spanish Information on your website in Spanish (even if it’s only one

page) Products that may be right for Hispanic needs and tastes

+BE FRIENDLY

Be “Latino-friendly”, means making sure your business is a place where Hispanic customers are going to feel welcome and appreciated. Cultural sensitivity training for employees - talking louder

does not make someone bilingual Customer service training – smiling, greeting customers in

a welcoming manner, keeping eye contact Accommodating families shopping and making decisions

together - more chairs in the office, small toys for kids Being patient with questions - often, Spanish-speaking

customer will have more questions about a product or service

+USE SPANISH IN YOUR MARKETING MESSAGES

More than 82% Latino adults say they speak Spanish, and nearly all (95%) say it is important for future generations to continue to do so

The majority of all Latinos say they prefer Spanish, in any situation, business or socially.

Think about your product and service and who your primary potential customer is Banking: services are more complex, people have several

questions, subject matter is serious – money Sporting event: children can participate, a family event,

less serious subject matter -

+TRANSCREATION, not translation

Transcreation, means expressing something in a culturally relevant manner, no simply doing a word-by-word translation

Some expressions may not exist in Spanish

A direct translation may not be culturally relevant

A direct translation may not have a meaningful relevance

+NEW PRODUCTS & HOURS

If possible, modify product offerings to better meet the needs of Hispanic like: Bud Lime beer Minute Made’s Limeade Lay’s limon (lime) potato chips Cinnamon-flavored toothpaste

Consider your hours of operations Sundays is when many Hispanic families will shop Offer extended hours

+CUSTOMER SERVICE, YOUR SECRET WEAPON

*Hispanics are far more forgiving of errors than non-Hispanics

Hispanics are willing to drive greater distances to get personal services

Good customer service is often more important than price, speed, or location for the Hispanic consumer

Hispanics value relationships, pleasing others, and being polite and respectful

*Based on research done by a well-known national fast-food chain

+TIPS FOR E-COMMERCE & MOBILE MARKETING

Appeal to younger shoppers

Advertise in Spanish-language media

Write in Spanish

Optimize your site for smartphones and tablets

Promote higher-end goods

+RECOMMENDATIONS

+ Questions