Reaching the Hispanic Market

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  • 1. Reaching the Hispanic Market Matias Perel Sergio Barrientos Founder & CEO Founder & Chief Creative Officer
  • 2. We are the leading Digital Marketing firm for Global Corporations catering to Latinos in the United States and Latin America.
  • 3. Our History
  • 4. AGENDA 1.  Introductions 2.  The Opportunity 3.  The Market Complexities 4.  Some Examples 5.  Conclusions
  • 5. 1. Introductions
  • 6. 1. Introductions •  Some laws of Hispanic market
  • 7. 1. Introductions •  Some laws of Hispanic market
  • 8. 1. Introductions •  Some laws of Hispanic market
  • 9. 1. Introductions •  Some laws of Hispanic market
  • 10. 2. The Opportunity
  • 11. 2. The Opportunity The US Hispanic population is growing at impressive rates SOURCE: Goldman Sachs, October 23, 2007 30% Hispanic Population Growth Hispanic Population as % of US Total 25% (Millions, 2005-2020) (Hispanic population / US total, millions) 20% Total Hispanic 15% 322 336 299 309 24% 10% 22% 20% 18% 14% 15% 15% 15% 5% 13% 9% 6% 43% 0% 48 54 60 43 1980 1990 2000 2005 2007E 2008E 2010E 2020E 2030E 2040E 2050E 227 249 282 299 303 305 309 336 364 392 420 2005 2010 2015 2020 15 22 36 43 45 47 48 60 73 88 103 % Hispanic 6% 9% 13% 14% 15% 15% 15% 18% 20% 22% 24% Us Population Hispanics  Today, Hispanics already represent 15% of the total US population. From 2005 to 2020, Hispanic population will grow 43% vs. 14% for General Market
  • 12. 2. The Opportunity The US Hispanic population is young, very young… SOURCE: US Census Bureau Annual Update, 2007 Hispanic Population by Age Group vs. Total US Percentage - 2007 100+ 95 to 99 Hispanics 90 to 94 Non-Hispanics 85 to 89 80 to 84 75 to 79 70 to 74 65 to 69 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 30 to 34 25 to 29 20 to 24 15 to 19 Population in 10 to 14 Age Group 5 to 9 Under 5 47% vs. 35% 10% 8% 6% 4% 2% 2% 4% 6% 8% 10.%  Almost half of US Hispanics are 25 and under, while half of general US is 40 and older. Actually, 1 out of every 5 teens in the US is Hispanic
  • 13. 2. The Opportunity The US Hispanic population is holistically wealthy Source:(USH-INT) CapturaGroup - Connecting US Hispanic Market online – 2006 1,100 Share of Total US Buying Power $1,087 billion 1,000 2003 vs. 2008 900 AA Other 2003 8.4% 2003 1.3% 800 2008 8.7% 2008 1.4% 700 Billions of Dollars 600 Hispanic 413% 2003 7.9% 500 $490 billion 2008 9.6% 400 300 White 200 $212 billion 2003 82.4% 2008 80.3% 100 0 1990 2000 2010   Hispanic buying power exceeded that of African Americans in 2003 and is expected to represent 9.6% of the total GNI in the US by the end of 2008
  • 14. 2. The Opportunity The US Hispanic economy is the 9th largest in the world Estimated GDP in 2010 US billions 13,109 5,273 2,702 2,418 1,984 1,926 1,545 1,230 1,087 1,002 US Japan Germany China France UK Italy Brazil Hispanic Canada US Hispanic buying power is expected to exceed Canada’s – and all of Latin   America’s save for Brazil’s - GDP, becoming the 9th largest economy by 2010 Source: Global Insights Inc, 2008
  • 15. 2. The Opportunity How Hispanics spend their money   Hispanics spend 9% more of their funds on food than Non-Hispanics
  • 16. 2. The Opportunity PC with Internet Access in the Home
  • 17. 2. The Opportunity PC with Broadband Access in the Home
  • 18. 2. The Opportunity Hispanics are more likely to download video
  • 19. 2. The Opportunity More likely to download music
  • 20. 2. The Opportunity More likely to download movies
  • 21. 2. The Opportunity Hispanics Shop Online
  • 22. 2. The Opportunity Minutes a month on their mobile Phone
  • 23. 2. The Opportunity Number of cell calls per Day
  • 24. 2. The Opportunity Average monthly cell phone bill
  • 25. 2. The Opportunity Use Text Messaging from a cell phone in last 30 days
  • 26. 2. The Opportunity Access Internet from a cell phone in last 30 days
  • 27. 2. The Opportunity Use email from a cell phone in last 30 days
  • 28. 2. The Opportunity PC with Internet Access in the Home and at Work
  • 29. 2. The Opportunity But… it is not enough to understand the market opportunity. To seize it, you need to understand the market complexities.
  • 30. 3. The Market Complexities
  • 31. 3. The Market Complexities Even though we all speak You may reach them, but not Not necessarily true. Your Spanish, there are relevant connect with them… Hispanic customers may be differences that can help you behaviorally loyal, due to their to make a relevant difference. lack of integration or access to choices. Reach, but not connect Connect, but not reach Same magazine issue, Customers integrate, and different cover Neither reach, then migrate to another bank nor connect
  • 32. 3. The Market Complexities Activate your strategy across Hispanics often pay premium relevant consumer touch- prices to access products and points and integrate for a true services they need, or simply brand experience. want. Out-of-Home Billboards TV Ads WOM Customer Newspaper Ads PR Reviews Events Search engines Radio eMails Online Magazine Ads Banners BTL Direct Marketing Sponsorships Influencers Word of mouth Search Engines A digital camera purchase is not Customer Reviews about the pixels, but about the emotional possibilities
  • 33. 4. Some Examples
  • 34. General Mills: Que Rica Vida
  • 35. Universal Music: Enrique Iglesas
  • 36. Cingular (now AT&T): World Cup Campaign
  • 37. Discovery En Español: Travel&Living + Discorvery Kids Launch
  • 38. 5. Conclusions
  • 39. 5. Conclusions It Is Not About “Hispanic Marketing” It Is About “Marketing To Hispanics” Because “Hispanic Marketing” uses stereotypical   Because “Marketing to Hispanics” uses specific   Hispanic cues and icons… market insights to tell a relevant and compelling story… Focuses on cultural perceptions…   Focuses on specific wants and needs…   Is based on the mainstream brand   architecture… Is based on drivers of purchase and consumption…   And is generally ineffective in building brand   And has proven to effectively build brands with   preference Hispanics