Hispanic marketing Q&A

Editor’s note: Felipe Korzenny is professor of advertising and integrated marketing communication, Florida State University, Tallahassee, Fla., and co-founder of Cheskin, a Redwood Shores, Calif., research firm.

Marketers who start to conduct market research and marketing programs in the U.S. Hispanic market often have pressing questions. Some of those questions have answers that are fundamental to achieving success in this important market. Here are some typical questions followed by answers based on long-term experience.

Q: Will my Hispanic research and marketing efforts alienate the general market?

Overall this concern is unfounded, for three main reasons:

  • Most Hispanic campaigns are in Spanish, in media outlets that the general market does not access much or at all. The few non-Hispanics that access such media are self-selected Hispanic sympathizers who would not mind a dedicated effort made to communicate with Hispanics.
  • Being Hispanic has become cool, a statement with which 91 percent of Hispanics agree, according to the 2003 Yankelovich Multicultural Study. As the overall culture has grown to admire Hispanic trends, fashions, art, media, food and other cultural manifestations, advertising to Hispanics can actually persuade non-Hispanics. These non-Hispanics have increasingly adopted tastes and looks that have been traditionally associated with Hispanic cultures. Perhaps some advertisers should be concerned at this point that their general-market campaigns may alienate Hispanics. And if they alienate Hispanics they may in turn be alienating those who now follow in Hispanic cultural steps.
  • There is an assumption in the marketing creed that states that positioning needs to be uniform across different targets for a product brand combination. The rationale is that uniformity creates a consistent image that enhances the brand. While it is true that there ought to be a consistent brand personality it is not true that the positioning needs to be the same. Cultural insights that lead to positioning are likely to be different across cultures. The objective of the marketer is to reach the consumer by literally and figuratively speaking their language. Thus positioning must be different when merited by consumer insights. The reason a Hispanic consumer serves rice at home is different from the reason an Anglo-Saxon consumer serves it.

Seventy percent of Hispanics agree that “there should be more television or other commercials directed specifically to Hispanics,” according to the 2003 Yankelovich Multicultural Study. Marketers would be hard pressed to ignore this cultural imperative. A small minority of culturally prejudiced non-Hispanics is always likely to object to diversity in the marketplace as they do in the workplace. Still a large majority of African-Americans (95 percent), Hispanics (90 percent), and non-Hispanic whites (88 percent) “think that the media should be doing more portray ‘African-Americans/Hispanics/people of all races/ethnicities’ in a positive light” according to the Yankelovich Multicultural Study. Thus the overall population is now more open than ever to multiculturalism and pluralism of messages in the media environment.

The fear of alienating the so-called general market may be not only unfounded but perhaps ill-conceived. Marketers ought to feel more fear from not catering to emerging markets that will constitute their bread and butter in the future.

Q: Are Hispanic market research and marketing different from marketing to the general market?

The U.S. Hispanic market should be low-hanging fruit for many marketers, but they do not know it. Marketers make assumptions about the U.S. Hispanic market based on hearsay and assumptions that in many cases are flawed. Marketing to Hispanics, particularly Spanish-dominant Hispanics, requires going beyond marketing routine and making a proactive effort.

Reaching Hispanics in Spanish has been shown to make an important difference, particularly when reaching those who prefer to communicate in Spanish (that is 60 percent of those 18 years of age and older). According to the 2002 People en Español HOT study (conducted by Cheskin), a third of all U.S. Hispanics indicate they “get more information from advertisements that are in Spanish.” Also a fourth of all U.S. Hispanics state they “prefer to purchase brands that are advertised in Spanish.” Thirty-six percent of all U.S. Hispanics, in addition, state that they watch Spanish-language television because “it is more reflective of my life and culture.” The Spanish language, then, gives a strong competitive edge to advertisers that have learned how to communicate to Hispanics in the context of the culture and language.

There are other areas that can make strong contributions to the bottom line of marketers searching for Hispanic opportunities. Many marketers whose products are not currently used by Hispanics make the often erroneous assumption that Hispanics must not like their product or brand. Basic baseline research many times uncovers a common phenomenon: A large number of Hispanics are just unaware of the product category and/or brand. For example, a majority of U.S. Hispanics are unaware of refrigerated dough products. It is not that they do not like these products but that they have passed by them many times at the store without understanding what these round cardboard containers have inside. If a marketer took the time to show the Hispanic consumer what the product is about s/he could easily add customers.

Many Hispanics come to the United States with brand loyalties and expectations. They know that cereal is Kellogg’s and that toothpaste is Colgate. This does not mean that these consumers reject the offerings of other brands; they just don’t know about them. Take the example of the cereal brand Kix. This brand was virtually unknown to the Hispanic consumer until it was introduced in the WIC program (the Special Supplemental Nutrition Program for Women, Infants, and Children) and now the brand is one of the most successful brands in the market.

The most productive allocation of resources is many times in areas that are easy and simple to address, but sometimes these areas are difficult to perceive. Our assumptions many times blind us to the obvious and the simple.

Q: What is the role of corporate responsibility in Hispanic marketing?

Hispanics are very sensitive to the actions that corporations take to show interest in the U.S. Hispanic community and also in Latin America. Hispanic consumers repeatedly mention that they favor companies that become involved in furthering Hispanic causes in the U.S., and also in their countries of origin. Thus if Coca-Cola sponsors soccer games for youth in Latin America, that benefits those on both sides of the border because of the strong ties that Hispanics maintain with their countries of origin.

There is no one specific action that gets more recognition in particular. It is the overall sense of how the corporation behaves towards Hispanics. If it hires Hispanics, establishes a dialogue with Hispanics, supports Hispanic causes and shows a genuine determination to pursue the Hispanic market, then Hispanics tend to be appreciative. This appreciation is many times manifested as reciprocity and respect. Hispanics are loyal to companies that are good to them. This value for reciprocity and respect is traditional in the culture. The same way in which older people, teachers, priests and leaders are held in very high respect, companies that go out of their way to establish their leadership are also conferred a high level of respect and loyalty.

The needs of the Hispanic community are multiple. The following are examples of priority issues that corporations should address:

  1. Education in its many forms, from scholarships to educational campaigns to help consumers make sense of their environment. Clearly, supporting formal education is a priority. But many other forms of information and education are also extremely important. Hispanic consumers benefit from campaigns that educate them on consumer issues of many types, such as how to buy a home, how to choose car and home insurance, how to save for a child’s education, how to save for retirement, how to become politically involved or how to shop for health care.
  2. Youth development and recreation. As Hispanics have many children and the Hispanic population is about 10 years younger than the overall U.S. population, Hispanic youth need to have avenues for channeling their energies in productive ways. This includes sports, after-school activities, youth employment and also parental guidance on dealing with youth issues.
  3. Community development efforts to improve services and organization in neighborhoods. This is a particularly important need in the more humble neighborhoods where newer immigrants live. In this context, crime prevention is a key priority.
  4. Employment guidance and training. This is crucial as many Hispanic immigrants become underemployed after transitioning to the U.S.
  5. Health is another most important issue that can be supported by many corporations.

The above are overlapping examples of the many areas in which corporations can make contributions and expect consumer recognition for them. Ultimately the best guidance can be obtained by including more Hispanics on corporate boards, and by employing more high-level Hispanics in these corporations. The outward actions of a company need to be oriented by a well coordinated internal effort.

Q: Is there a print opportunity in the Hispanic market?

Hispanic print constitutes an up-and-coming medium in the United States. Print has been underdeveloped for two key reasons: poor distribution and lack of availability of relevant content. Other obstacles to development of print media have included low literacy levels in some strata. Illiteracy, however, has been subsiding and that is why now the opportunity arises for those who can provide the content and distribute it widely. Now there are many examples of successful print outlets in the U.S. Hispanic market. La Opinion, El Nuevo Herald, and El Diario La Prensa are successful dailies. Magazines such as Healthy Kids en Español, Ser Padres, People en Español, Latina, and Selecciones del Reader’s Digest have listened to the consumer and created and reinforced content Hispanics appreciate.

Hispanics are catching up with non-Hispanics in their time of exposure to newspapers. According to the 2002 People en Español HOT study, Hispanics who read newspapers spend 4.1 hours per week reading them compared with 4.78 hours by non-Hispanics. In the case of Hispanic magazine readers they are already reporting they spend more time with magazines than their non-Hispanic counterparts (3.9 vs. 3.5 hours per week). So, once Hispanics acquire the taste for a medium they become relatively assiduous.

Still, on the other hand, Hispanic magazine and newspaper readership trails that of non-Hispanics. Forty-five percent of Hispanics read newspapers, compared with 85 percent of non-Hispanics. And 39 percent of Hispanics read magazines, compared with 77 percent of non-Hispanics. But here is precisely where the media opportunity appears to reside. Since there is so much room for growth and so much need for information in the Hispanic market, marketers who cultivate the reading habits of Hispanics are likely to reap important profits.

Q: How is Hispanic purchase decision-making unique?

Marketing to the Hispanic consumer has at its core the establishment of a relationship between the seller and the buyer. Hispanics are particularly sensitive to the establishment and maintenance of that relationship.

While clustering all Hispanics in one large category is difficult, because of the many groups that compose the market, there are trends that can be highlighted.

  1. Purchasing decisions among many Hispanics are driven by familiarity or lack of familiarity with brands. The bulk of Hispanic consumers, particularly those who are Spanish-dominant, buy products that they recognize and know about. There are great opportunities for marketers that have not communicated with the Hispanic market. Simply communicating product attributes and uses can create demand because many Hispanic consumers do not know about many of the available products and brands in the U.S. marketplace.
  2. Once the obstacles of awareness and knowledge are overcome, then there is the issue of relevance. If the message used in positioning a product is relevant to the needs and culture of Hispanic consumers then purchasing decisions occur. This issue of relevance is complicated because it is composed of cultural compatibility in the first place, but it also consists of life stage and lifestyle compatibility. The joint impact of these different relevancies/compatibilities is what accounts for a large part of the prosperity of brands in the Hispanic market.
  3. Cultural relevance includes language. The construct of culture includes language as a fundamental element. Language is not just the explicit code for communication but the way in which emotions and experiences are shared. The Spanish language connotes emotion far beyond the explicit code. Advertising relies on emotion because emotion is what ultimately differentiates products in a crowded marketplace. The emotion communicated via the Spanish language makes the product relevant to the consumer. This is beside the fact that for many in the market, the use of the Spanish language is just a prerequisite for understanding a message at all.

Q: How do Hispanics experience grocery shopping?

It catches everyone’s attention that the current spending power of the U.S. Hispanic market is around $600 billion per year, and eyes grow wider when marketers contemplate that it will be about $1 trillion less than eight years from now. What most grocers have not yet mastered is how to maximize the grocery shopping experience for these profitable consumers. In areas of high Hispanic density the bottom line of grocery retailers can be greatly enhanced by knowing how to cater to this distinct cultural group.

It is true that not all Hispanics are the same and that preferences and tastes do vary by country of origin. Still there are considerations that make this market highly targetable:

  • Over 65 percent of U.S. Hispanics are of Mexican origin and are highly concentrated in California, Texas, Illinois, and now widely spreading to other areas. Puerto Ricans constitute about 10 percent of this segment and they are concentrated in the East Coast. Cubans make up about 4 percent of the market and they are still strongly represented in Florida, particularly Miami.
  • Their tastes for groceries, as determined by country of origin, are well-defined and identifiable.
  • Hispanics in general tend to share a series of cultural dispositions that clearly define how they prefer to be served and treated. Also, their grocery shopping behaviors are relatively homogeneous and identifiable.
  • Despite the popular belief that Hispanics mostly shop in small ethnic stores (known as tienditas in the west and bodegas in the east), the reality is that most grocery shopping happens in supermarkets. The smaller stores are used for complementing cultural shopping needs that larger stores do not serve.

There is more than product availability to make the shopping experience compelling to U.S. Hispanics. Most Hispanic adults prefer to communicate in Spanish when given the opportunity. However, clerks and cashiers that speak Spanish in supermarkets are not yet commonplace. In particular these consumers crave personal attention and service. They like asking questions and obtaining guidance as they shop for many items but particularly at the meat/seafood and deli counters, and at the bakery. Having the attitude and the language available to serve these consumers is fundamental to achieve success.

There are other aspects that are still evidently missing from many stores that could capitalize on this market. They include:

— bilingual signage;

— point-of-sale materials suggesting uses and recipes that are culturally relevant to the consumer;

— entertainment for children, since the family is likely to go shopping as a group;

— produce and meat/seafood displays that resemble the open market where the enticing variety becomes a sensual experience;

— welcoming promotions and events that show that the grocer is truly interested in catering to this market.

The moral of the story is that most grocers in areas that cater to Hispanics can dramatically enhance the shopping experience of these consumers, gain their loyalty and attract more of their dollars. It just takes getting to know the consumer better!

Q: What works better in communicating with the Hispanic market, a culture-general or a culture-specific approach?

There is no one universal solution to successfully communicating with Hispanics as there is no universal approach to reach any other specific cultural group. Social classes, countries of origin and other areas of experience determine what messages will be effective or ineffective in reaching a market. Nevertheless, Hispanics do share a large amount of common cultural and social experience that makes it possible to create “pan-Hispanic” messages.

Consider that Celia Cruz was originally from Cuba but that most of her career flourished in Mexico. Her Caribbean music and fame was consolidated in Mexico. Music, movies, food and other aspects of specific Latin American countries travel freely throughout the continent. One can listen to mariachi music in Buenos Aires and to tango in Mexico City. Salsa clubs sprout everywhere in Latin America with great success. Shows from Televisa, the Mexican TV giant, are seen in many countries, the same is true of Brazilian Globo TV productions.

If these popular art forms from the different Latin American countries can cross political boundaries easily, why should advertising be very different, particularly among U.S. Hispanics? Hispanics share the cultural heritage from Spain that includes the language, religion and multiple experiences that shape their perceptions and values. One message can work across Hispanic groups and there are multiple examples of successful advertising campaigns that work well in a pan-Hispanic fashion. Ads for Folgers, American Airlines, Toyota, Pepto-Bismol and Colgate have worked extremely well across the different clusters that compose the Hispanic market.

Still, it must be said that depending on the specific product and objective one message may not work well for all Hispanics. If the product has a very clear Mexican tradition and heritage, then communicating it to Mexicans would need to be different from communicating it to Caribbean Hispanics. The popular brand of Mexican soft drink Jarritos could not be communicated the same way to Mexicans and non-Mexicans because Mexicans know the product and associate it with specific experiences. For non-Mexicans Jarritos would need to be introduced as a new product.

Consumer research is fundamental in determining whether or not a common message can be effective across Hispanic cultures. Once product and category perceptions are understood, then one can proceed with a universal or a specific strategy.