Hispanic 101 —
Marketing to a Vibrant
February 2, 2009
Hispanic marketing is no longer
something that’s “nice” for a
company to do.
It’s become a business imperative as
the population and spending power of
U.S. Hispanics continues to grow at
an explosive rate.
WHO IS HISPANIC?
“Hispanic” refers to an origin or ethnicity,
is no one monolithic “Hispanic
HISPANIC VS. LATINO
An individual with roots that go back to any of the Spanish-speaking
A term that was originated by the Census Bureau in the 1960s.
It was used as a way to capture all the people whose backgrounds included
any of the Spanish-speaking countries.
An American citizen of Mexican descent who has a strong sense of Mexican-
American ethnic identity.
This term was regularly used in the 1960s, mostly in the Southwest.
HISPANIC VS. LATINO
line — “Latino” and “Hispanic” are terms
used in the United States to identify individuals
whose ancestry comes from a variety of countries
where Spanish is the main language.
Both terms are generally acceptable, although in the
last 10 years, there is a slight preference for the use
of the term quot;Latino.quot;
When in doubt, you should ask!
CULTURAL DIVERSITY IN THE U.S.
The biggest mistake that a company can make is to view the U.S. Hispanic market
Acculturation levels, language preferences and country of origin
make for unique sub-groups within the segment.
Hispanic U.S.A. is the 2nd largest Spanish-speaking population in the
world, behind Mexico.
Latest population estimates by the U.S. Census Bureau at the time of
writing, put the U.S. Hispanic population at 42,687,224 or 15 percent
of the U.S. population.
That equates to one person out of every seven in the U.S. being Hispanic.
However, this does not take “undercount” into consideration.
The projection for 2050 is that this will increase to one in four people.
To put the current Hispanic population into perspective, when looked
at in terms of the population of countries in the world, it would rank
29th out of 232 countries.
In terms of pure numbers, it ranks higher than
Sudan, Spain, Argentina, Kenya, Canada, Australia and Afghanistan.
TOP 20 U.S. HISPANIC MARKETS
1.Los Angeles 11. San Diego
2. New York 12. Fresno
3. Chicago 13. Sacramento
4. Miami 14. El Paso
5. Houston 15. Albuquerque
6. Dallas-Ft. Worth
7. San Francisco 17. Washington D.C.
8. San Antonio 18. Philadelphia
9. Phoenix 19. Austin
10. McAllen/Brownsville 20. Las Vegas
POPULATION GROWTH —
Race/Ethnicity Population Percentage
White 3,963,550 83.1%
Black 181,960 3.8%
American 44,177 0.9%
Asian 128,934 2.7%
Native Hawaiian/Other 4,300 0.1%
Some other race 318,371 6.7%
Two or more races 125,869 2.6%
Hispanic 933,573 19.6%
* It is estimated that there are roughly 270,000 improperly documented immigrants living in the state, not
included In these numbers.
POPULATION GROWTH —
Total Hispanic Percentage
Jefferson 526,008 69,689 13.2%
Arvada 103,459 14,416 13.9%
Golden* 17,159 1,130 6.6%
Lakewood 143,157 28,081 19.6%
Littleton 43,741 4,382 10.0%
Wheat Ridge 30,160 5,654 18.7%
* 2000 Census
HISPANIC PURCHASING POWER
Between 1990 and 2007, the buying power of U.S.
Hispanics rose by a whopping 315% compared to
the buying power of non-Hispanic Whites at 111%
over the same time period.
The U.S. Hispanic market is already larger than the
entire economies of all but eleven countries in
The U.S. Hispanic market ranks as the third largest
“Latin American economy” behind Brazil and
WHERE HISPANICS SHOP
Wal-Mart is the top choice:
37% of Hispanic respondents named Wal-Mart their favorite
J.C. Penney, Sears and Target all tied for second place with 4%.
Most important factors considered:
Wide range of merchandise
Employees who speak Spanish
Products relevant to Hispanic consumers
Hispanicsspend about the same or more than non-
Hispanics in these key categories:
Food/beverages consumed at home
Social events, i.e., quinceañera
Rental housing > first-time home buyers
TV/radio and other sound equipment
Personal care products
HISPANIC BUSINESS AND
One out of every 10 businesses in this country is owned by
Hispanics, according to the U.S. Hispanic Chamber of
Commerce, making it one of the fastest growing business segments in
the United States.
Hispanics (15.2%) are more likely than non-Hispanic Whites (10.8%)
to be entrepreneurs.
The number of Hispanic-owned companies has grown 82% since
1997, making them among the fastest-growing business segments in
Seventy-nine percent of Latino teenagers want to start their own businesses
compared with 69% of non-Hispanic white teenagers.
TOP INDUSTRIES FOR HISPANIC-
OWNED BUSINESSES (Colorado)
Healthcare and social assistance
Professional, scientific and technical services
Transportation and warehousing
Real estate, rental and leasing
Arts, entertainment and recreation
Assimilation is the process whereby an immigrant group
gradually adopts the characteristics of another culture —
essentially losing one’s language, customers, traditions and
ties to one’s homeland.
Acculturation is the process of integration of native and
traditional immigrant cultural values with dominant culture
values — adopting a new culture without denying one’s
LANGUAGE AND THE HISPANIC
Spanishis likely to remain the language of
preference among U.S. Hispanics:
71% speak Spanish at home;
56% of Hispanic adults understand advertising
best when it is presented in Spanish; and
Through research we have found that 80% of all
households noted as Hispanic have a Spanish-
People who People who Of those who
speak only speak a speak another
English at language other language,
home than English at people who
home speak Spanish
Jefferson 442,705 52,655 29,113
Arvada 87,986 9,034 4,557
Lakewood 114,602 20,381 13,265
Littleton 36,567 4,482 2,488
LANGUAGE AND LAYOUTS
Spanish can contain up to 25% more words than
English and take twice the space.
Accents and Tildes
The tilde is a powerful symbol, much like “¡” and “¿”, it is unique to
the Spanish language.
The tilde is not optional — “ano” versus “año”
An accurate linguistic text transfer from one language into another
The process of determining the suitability of an original creative message to
an ethnic group, and if suitable, transferring the creative concept, not just the
words, in an appropriate tone and graphic look
Direct translations and usage of general market strategies tend
to miss the emotional and culturally relevant elements.
Some results will be there, but not with sales volume, strength
and recall, that a truly culturally-attuned marketing and
advertising effort can attain.
Events create excitement, reinforce image, and
allow you to hand-deliver your marketing message
face-to-face with your target audience.
However, many company’s efforts at selling
themselves to Hispanics are limited to sponsoring
the occasional Cinco de Mayo celebration — these
half-hearted efforts will not effectively capture the
attention of Hispanic consumers.
HOLIDAYS AND CELEBRATIONS
Easter, Christmas and other Christian holidays
6 — Three Kings Day
5 de mayo
May 10 - Mexico
Highest remittance activity holiday of the year
16 de septiembre
Día de los Muertos
THE U.S. HISPANIC MARKET IS
Many companies limit their Hispanic marketing and
outreach to one-dimensional efforts like the literal
translations of general market campaigns.
Marketers cannot simply transfer directly to the U.S.
Hispanic market the conceptualizations or marketing
strategies that work with the general market.
historical, contextual, cultural, demographic, financial
— place Hispanic consumers in a different category.
… AND THE GENERAL MARKET IS
DIFFERENT BECAUSE OF IT
years ago, salsa surpassed catsup as the
number one condiment in the U.S.
Now we have chipotle catsup and peach salsa!
Tortillas now outsell bread in the U.S.
According to Hallmark Cards, piñatas are now the
second most popular party decoration in the U.S.,
The margarita is the #1 cocktail served in the U.S.
TEN MISTAKES TO AVOID
Don’t launch a product or campaign in the Hispanic market without doing research.
Don’t enter the Hispanic market without making a long-term commitment.
Don’t forget to get your message out — loud and clear!
Don’t dilute your brand — it’s all you’ve got.
Don’t forget to educate your senior management.
Don’t assume that Hispanic projects can be accomplished for less.
Don’t treat the Hispanic market as if it were a “quota” to be reached.
Don’t rely on your Hispanic-surname employees to do your translations.
Don’t make assumptions about the Hispanic market — consult a Hispanic marketing
Don’t assume you know what “good” Hispanic marketing is — unless you are the