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Cashing in on the Latin Market
August 24, 2007
Connect with the fastest-growing demographic in the native language
By Rebecca Aronauer
Here are the facts: There are 45 million Hispanic consumers out there. In 2000, the Hispanic demographic eclipsed the African-American market and remains the fastest-growing population in America. As Cesar Melgoza, the managing director of Latin Force, a consumer intelligence and strategic consulting firm based in Miami, says, "the Hispanic market is large and growing rapidly."
To tap this demographic, you need to market to it. "Sales organizations need to have a connection with the Hispanic consumer," Melgoza says. For starters, you have to speak to these active consumers in their language (literally) to reach them. Using Spanish in your marketing materials is the only way to reach Spanish-speaking-only shoppers. For second-generation immigrants who speak English, making references to Hispanic culture in English is a powerful way to make your product or service appear relevant.
In general, Hispanics spend more on certain goods such as beauty products and are less likely to have bank accounts and credit cards. According to David Perez, the CEO of Latin Force, this means that the market can work for you in two ways: "Either they need your products but don't have them, or they love your category and want more," he says.
To make the most of these opportunities, Perez says you have to make an extra effort to connect with Hispanic consumers through their culture, and language is just the beginning. "You want to get beyond simple language," he says. "You want to segment the market and identify the consumer along age, income, life stage and consumption behavior." But the extra effort to identify and relate to Hispanic consumers will pay off. "By using culture in your messaging, you're standing out from the crowd and you're waving a metaphorical flag to your customer," he says.
Armando Martin, the Boise, Idaho-based director of multicultural marketing for Albertsons supermarket chain, went beyond simply using to Spanish to connect with his Spanish customers. Using Geoscape, a multicultural consumer intelligence and data analytics company that merged with Latin Force in June, Martin was able to segment Albertsons' Hispanic market by nationality. "We ought to know what country the shoppers are from," Martin says. "It helps me make recommendations for merchandising, music, and food selection." For example, demographics revealed that for some stores, as much as 70 percent of the consumers were Hispanic, so Martin decided against buying rights to an English language radio station. Knowing the demographic breakdown of his Hispanic consumers has helped him make key decisions, and Martin says, "I've used [the information] in my strategic planning."
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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