Marketers should know their target audience and what is important to them. Sounds easy enough, right? With the U.S. Hispanic market emerging as one of the most promising areas for growth, there is tremendous opportunity for marketers and the business community to reach a wider following. And there are some powerful statistics that show exactly why this demographic has plenty of purchasing power.
A STRONG DEMOGRAPHIC
Univision Arizona recently delivered a powerful marketing presentation that provided great insight into this segment of the U.S. population which grew 65 percent since 2000.
“Hispanics are fueling the growth of the United States,” said Gerardo Higginson, Director of Community Empowerment & Communication at Univision Communications Inc. “Nationally, that translates to 53 million consumers.”
Just behind California, New Mexico and Texas, Arizona has the fourth largest Hispanic composition among all states in the nation. Approximately 31 percent of Arizona’s total population is Hispanic; about one in three people. With over 2.1 million people of Hispanic descent in Arizona, there are significant opportunities for businesses to capture a bigger share of this thriving market segment.
RISING CONSUMER SPENDING
According to Univision Arizona, Hispanic buying power in Phoenix stood at $23.5 billion in 2014 and is expected to grow by 120 percent in the next 10 years. In addition, the Hispanic community in Phoenix is expected to spend more than non-Hispanics in categories like medical services, motor vehicles and parts, transportation services, food and beverages, recreational goods, furniture and household equipment and apparel and shows.
So then, how should businesses go about making this population a strategic part of their marketing plan? Well, it’s complicated.
There are many factors to take into consideration in order to keep pace with this fast-growing population:
Many families in Hispanic households are multi-generational.
Being Hispanic or Latino means identification with one of 25 different nationalities, from Mexican (the largest sub-segment) to Venezuelan (among the smallest).
Each has its own dialect and customs that may differ greatly from one another.
What makes the Hispanic market even more complex is that some are new immigrants and while others have lived here for many years. Once a decision is made to pursue this market, determine if you are trying to reach new immigrants and first-generation Hispanics, who might not be fluent in English, or the second or third generation who may be bilingual.
Added Higginson, “In the past, Hispanics were seen as a separate market, with a separate budget, managed by a separate team. But now, companies are beginning to see Hispanics through a new lens and have recognized that they are part of the general market.”
IMPLEMENT A TOTAL MARKET STRATETY
So how can your company implement a total market strategy and keep pace with the shifting demographics of our nation? Univision has created a roadmap to answer some common questions and concerns.
Size the opportunity and the size of ignoring it.
Understanding the size of the opportunity in your category – and, in turn, the potential lost revenue that would result if you ignored that opportunity – is the best way to rally the organization and leadership team to make Hispanic a priority
Leverage consumer research to define your strategy.
The key is to leverage consumer insight to define your strategy and have all Hispanics represented in your research.
Ensure product, packaging and services are relevant.
This doesn’t mean that you need heritage brands or products created specifically for Hispanics. In fact, it means just the opposite. Many brands are finding that they can benefit from Hispanic-inspired product innovation to delight not only Hispanics, but all consumers.
Develop culturally relevant creative.
Ads developed or adapted with Hispanics in mind, rather than a simple translation of English-language ads, generate higher enjoyment, believability and persuasion with Hispanics.
Support concurrent efforts with sufficient and consistent funding.
Given the growth potential of Hispanics, this should no longer be the case. Your media plan should be reflective of the Hispanic contribution to your overall sales. So, if 18 percent of your sales come from Hispanics, 18 percent of your marketing budget should be devoted to reaching this market segment.
Customize retail distribution, assortment and services.
Hispanic consumers need to feel welcome at your point of purchase. If you are serious about winning with Hispanic consumers, take a holistic approach that includes targeted distribution of the most relevant Hispanic SKUs, basic bilingual support services (e.g. website, brochures) and signage.
The best way to influence the decision-making process, understand any demographic or to better know your audience is through research and developing a thoughtful strategy. To learn how Univision can help you define and develop your total market strategy, visit online here.
Univision Communications is the leading media company serving Hispanic America. Its powerhouse portfolio includes television, radio, and interactive offerings that entertain and inform more Hispanics each day than any other media company in the country.