Crossborder            Consumers &             Borderland             Marketing               What’s “La            Tercer...
Niches: Marketing Opportunities   Looking at niches “Beyond Borders”       Too often, we have “border mentality” – wheth...
Opportunity: the Borderlands   US-Mexico Crossborder Consumers &    Borderland Marketing   “Borderlands” or “La Tercera ...
Where is La Tercera Nación?                     US States                         Texas                         New Mex...
Spanish Speaking Marketplace   Not “one billion” consumers…but about 36 million    Spanish speaking (19M in MX, 17M in US...
Area of Relative Wealth in Mexico   Despite perceptions, Mexico Borderlands have some of    the highest proportion of upp...
Metro “Hispanic” Ranking Changes                         Hispanic                  Additional Mexico Market (metro/DMA)   ...
Who Are Crossborder Consumers?   Depending on MX state, 20-    35% of population has visa    (can cross)   Tend to be mi...
Crossborder Consumers (2)   About 75-80% of                   Mexico-Residing                                            ...
Crossborder Consumers - Shopping   MX-Residing Crossborder       NA/No Response    0.4%    Consumers shop in the US      ...
Crossborder Shoppers – Where?   Visit many of the same stores you do   Walmart, Target, Sears, groceries, etc.     …eve...
Crossborder Consumer Tastes                                                                Most Preferred Stores in SD   ...
Crossborder Advertising   Can be effective way to target    Crossborder Consumers…if done    correctly   Case Study: “Wh...
Borderland Marketing   Brings me to some of my last points:       Focus has been on Mx-Residing Crossborder        Consu...
Borderland Marketing (2)   Other key points:       Don’t assume Mexico City-based HQ understands        the Borderlands…...
Gracias!         &     Thank You!CrossborderBusiness.com    1-888-4XBORDER
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Tercera Nación: Crossborder Consumers & the US-Mexico Border

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2008 presentation from Crossborder Group, given to the AMA Beyond Borders Conference in Dallas. Many marketers don't understand the interconnectedness of crossborder consumers in the US-Mexico border region -- nor the concept of La Tercera Nación, the 10-state region of largely Mexico-derived Spanish speakers that share many consumer preferences...and marketing opportunities...

For more information, contact Crossborder Group at 1-888-492-6733, or 619-710-8120.

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Tercera Nación: Crossborder Consumers & the US-Mexico Border

  1. 1. Crossborder Consumers & Borderland Marketing What’s “La Tercera Nación”?2008 Beyond Borders Conference
  2. 2. Niches: Marketing Opportunities Looking at niches “Beyond Borders”  Too often, we have “border mentality” – whether for business or public policy planning  Think maps… Part of today’s goal: break perceptions, and open minds to new opportunities…  Can Think Big – “Capturing Next Billion Consumers”…  …or, can also look at overlooked “nearby opportunities”
  3. 3. Opportunity: the Borderlands US-Mexico Crossborder Consumers & Borderland Marketing “Borderlands” or “La Tercera Nación”  “Markets don’t stop at borders”  Borderlands span the US-Mexico border  Blend of two countries, cultures and consumer tastes…not quite US, not quite Mexico  69 million in US States  19 million in Mexican States  …Focus will be on Spanish speaking populations
  4. 4. Where is La Tercera Nación?  US States  Texas  New Mexico  Arizona  California  Mexico States  Tamaulipas  Nuevo León  Coahuila  Chihuahua  Sonora  Baja CA
  5. 5. Spanish Speaking Marketplace Not “one billion” consumers…but about 36 million Spanish speaking (19M in MX, 17M in US) Area contains nearly ½ of US Hispanic population
  6. 6. Area of Relative Wealth in Mexico Despite perceptions, Mexico Borderlands have some of the highest proportion of upper-earners in workforce… Many of these have visas to visit the US…
  7. 7. Metro “Hispanic” Ranking Changes Hispanic Additional Mexico Market (metro/DMA) U.S. Rank Population Metro Population Los Angeles 8.4 million 1 NA Miami-Ft. Lauderdale 2.1 million 3 NA Chicago 1.9 million 4 NA +1.1 million McAllen Metro 1.1 million 10 Matamoros/Reynosa +1.7 million San Diego 951,000 11 Tijuana Metro +1.3 million El Paso-Las Cruces 839,000 13 Ciudad Juárez
  8. 8. Who Are Crossborder Consumers? Depending on MX state, 20- 35% of population has visa (can cross) Tend to be mid- and upper- earners Very familiar with US brands and stores Tend to cross on regular basis – about 18-20 million US-MX border crossings monthly
  9. 9. Crossborder Consumers (2) About 75-80% of Mexico-Residing Motivation for Crossing crossborder travelers (n=1321) are Mexico Residing 0% 20% 40% 60% 80% Shopping 60.9% Motivation for crossing: Family or Social Visit 12.8%  Shopping (50-70% - Work or Business 21.2% Visit to a Casino 0.6% depending on season) Medical or Health Reasons 1.1%  Work or business (20- Vacation or Tourism 0.3% 25%) School 0.5%  Family or social visits Other 2.6% (10-15%)
  10. 10. Crossborder Consumers - Shopping MX-Residing Crossborder NA/No Response 0.4% Consumers shop in the US More than 10 5.3% on a regular basis 9-10 times 0.4%  About 15% more than 7-8 times 3.5% weekly 5-6 times 5.3%  Nearly 80% more 1-4 times 3-4 times 28.9% per month 50.4% 1-2 times  Expenditure: borderwide 0 - ZERO 5.7% ranges from $110-160 per 0% 20% 40% 60% trip (average)…  $25-30 million per day…
  11. 11. Crossborder Shoppers – Where? Visit many of the same stores you do Walmart, Target, Sears, groceries, etc.  …even if similar stores in Mexico (product mix issue)  Mx-Residing Crossborder Consumers tend to visit Walmart more frequently than Target…  More frequent Mx-Residing Walmart shoppers tend to report income in the $1k-$3k per month range  More frequent Mx-Residing Target shoppers tend to be older than Walmart shoppers…
  12. 12. Crossborder Consumer Tastes Most Preferred Stores in SD Not dissimilar from US-Residing 0 50 100 150 Borderland consumers re: store WalMart Target 72 127 preferences & brand demands CostCo Ross 31 52 Home Depot 24 Some of these preferences Sears 14 19 Swap Meet shaped by strong social ties JC Penny 14 12 Vons across borders Kmart Payless 11 10 Macys 8  Opportunity to reach and shape Food4Less 8 preferences through crossborder Albertsons Sams 7 8 family & social networks Mervyns 4 7 Ralphs  …and use Borderlands for Old Navy "Las Americas" 4 4 “nearshore” product testing and Nike BestBuy 4 4 product roll-outs
  13. 13. Crossborder Advertising Can be effective way to target Crossborder Consumers…if done correctly Case Study: “Why are we advertising at border?”  Hadn’t done research  Had rolled out new service offering, but thinking “Hispanic”, not Borderland  Never fully explored Borderland market options or marketing strategies  Also…had own internal “borders” within company (pre-set territories limited options)
  14. 14. Borderland Marketing Brings me to some of my last points:  Focus has been on Mx-Residing Crossborder Consumers, but 20%+ are US-Residing  Mostly Hispanic (about 80-90%)  Mostly Spanish-speaking  Strong familial connections in border regions  All have to cross the border at some point…  Cost to market to this segment can be lower  At-border marketing campaigns  At-border samples  Mexico-based media that spans border (radio, TV, print)
  15. 15. Borderland Marketing (2) Other key points:  Don’t assume Mexico City-based HQ understands the Borderlands…  Often, not connected to region, may have “elite” perspective of border populations…  Don’t assume that “Mexico” data applies to Borderlands  Higher degree of English-language capabilities  Higher incomes  Better telecom and internet infrastructure (and use)  Get your own data!
  16. 16. Gracias! & Thank You!CrossborderBusiness.com 1-888-4XBORDER

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