Transcultural Marketing

Stop The Facebook Madness

noreply@blogger.com (Ivonne Kinser) — Thu, 31 Jul 2014 23:25:00 -0500

A few days ago, I heard about a top executive at a digital advertising agency who referred to Facebook "paid-per-reach campaigns" as "paid likes." You might think: "So what? What's the difference?" Let me tell you ... the difference is so enormous that is not even funny to see how Facebook has confused digital marketing executives with its algorithm changes extravaganza. The saddest thing is not that the term used by the ad executive was "paid likes" instead of "paid reach," but that the context in which the term was placed within the conversation implied that the likes were somehow fake. The confusion in the industry is understandable. It has been hard for many people in the industry to keep up with the perhaps too frequent algorithm changes. Just for the sake of all the social media strategists out there, let's clarify the madness to their bosses and clients, so nobody ever thinks that you are "buying social love." We do not "buy" the likes. We buy impressions to deliver your message to a relevant audience(s), and the users reached will decide whether they want to like/follow your page or not.

Let's go back to the digital advertising basics.

Marketers "buy" impressions so a particular online message reaches their target audience, right? The same exact deal applies to Facebook. Fair or not, it is what it is, and if advertisers want to keep playing in the Facebook sandbox, they will have to follow the rules or leave.

R.I.P. Facebook Organic Reach. This is actually the root of the problem.
A post’s organic reach reflects how often a brand's message will be seen by its page's audience without a "pay to reach" effort, and according to the latest number reported by Social@Ogilvy, which tracked the drop earlier this year, that reach is currently close to 2% for pages with over 500,000 followers.

What to Expect

The Facebook free ride is over for marketers, and brands better start preparing for the day when the organic reach will be zero. Marketing teams will need to add this outlet to their paid channel list and their advertising budget in order to continue engaging their hard-earned audiences. "There's no such thing as a free lunch," someone said once, and Facebook listened. We should have known better!

After Groupon: What’s Next in the Evolution of Online Retail?

noreply@blogger.com (Ivonne Kinser) — Thu, 31 Jul 2014 23:12:00 -0500

This article was published by sparksheet.com

The Groupon model may have hit a snag, but when it comes to online retail, there’s plenty in store for brands who think global, writes digital strategist Ivonne Kinser.

In 2012, e-commerce within the United States accounted for 28 percent of all global sales. It’s clear that Americans love to shop online, but “global” is the key word here.

In China, for example, the e-commerce industry is forecast to be worth $370 billion by 2015 – up from $74 billion in 2010. Over in Latin America, Forrester predicts that Brazil’s online retail sales will reach more than $25 billion by 2017, andeMarketer projects Mexican e-commerce sales will reach $7.98 billion this year and continue growing into 2016, when annual sales could reach $13 billion.

Meanwhile, in an interview with PandoDaily about the future of retail, American entrepreneur and web veteran Marc Andreessendidn’t sugar-coat his assessment of the traditional brick-and-mortar retail industry: “Retail guys are going to go out of business and e-commerce will become the place everyone buys. You are not going to have a choice.”

The rise and fall (and rise again) of group buying

There are plenty of e-commerce business models to choose from, including group buying and daily deals, subscription e-commerce, social e-commerce and more. One of the most popular business models is “flash sales” (also known as private sales clubs).

The success of this model can be attributed to the sense of urgency triggered by limited quantities of the desired item combined with the limited time customers have to decide whether to purchase the product.

Not only that, but flash sales sites also tend to benefit from the enthusiasm of the shoppers, who become brand advocates and help grow the popularity of the sites by sharing sales and links via their personal social networks.

One of the first successful flash sales models was launched by Groupon. After remarkable initial success, however, the startup encountered a problem that, in my opinion, had nothing to do with the model itself.

Despite growing competition, Groupon remains one of the more popular social buying sites.

The success of Groupon’s business model depended on the company’s ability to grow a substantial client-base and drive purchase repetition: Groupon needed a huge audience that would be happy with their purchases and return repeatedly to the site.

But price alone does not guarantee repeat customers; a great service or product experience is equally crucial. Unfortunately forGroupon, it had no control over the companies selling goods and services through its platform, which created serious problems for Groupon when customers’ expectations were not met.

Among the noteworthy companies to have successfully executed this model are Gilt (which in two years grew from no-name startup to e-commerce powerhouse worth almost $400 million),Rue La La (whose parent company was acquired by eBay in March 2011 for $2.4 billion), and Fab.com (which recorded more than $100 million in sales last year and is set to more than double revenue in 2013).

One of the giants of the e-commerce scene, Wayfair, is also throwing its hat in the ring with this year’s launch of its flash sales site, Daily Fair. Last year alone, Wayfair received two million weekly visitors and rang up $600 million in sales.

As one of the biggest privately held e-commerce properties on the web, its support of the flash sales model is proof that this e-commerce trend is here to stay.

Sites like Fab.com are jumping on the flash sales trend and are growing fast.

Crowd commerce

SouthWinston LLC (an investment holding and technology incubator company) announced recently that it has developed, incubated and led an investment round in Join’em, the world’s first crowd-commerce marketplace (currently in beta testing). That’s right, crowd-commerce.

Join’em turns the existing group-buying model on its head by allowing customers to initiate flash sales: Shoppers select the products, pick the price range, launch the deals and promote them through their networks. Reputable merchants and suppliers then compete in a “reverse auction” to fulfill those deals at or below the maximum price set by the shoppers.

According to Chief Marketing and Development Officer Darren Waxman, the platform offers retailers, manufacturers and consumers a next-generation e-commerce marketplace where massive crowd-sourced demand meets reverse-auction efficiency.
The Join’em model is just one of many exciting changes coming to the e-commerce industry. As companies look to meet new challenges and figure out where e-retail is going, I look forward to watching the e-retail revolution unfold.

Dear Penney, We Forgive You

noreply@blogger.com (Ivonne Kinser) — Sun, 5 May 2013 17:19:00 -0500

I’m breaking out my blog - abandoned too long ago for lack of time - because I’m fascinated with the JCPenney case, and my thoughts about it don’t fit in a Twitter post at this point.
Ever since the latest part of the story broke a few days ago with the launch of the "Apology" spot, I have been following the social conversation like it is my job. I still can’t point a finger at what part of this case is so fascinating to me and why, but maybe writing this post will enlighten me.

A strategy lost in translation
Ironically enough, when customers started expressing their disappointment for the disappearance of coupons and sales, the retailer's former CEO didn't blame the new policies, but instead blamed the lack of education of his customers regarding the new strategy. He literally stated that customers needed to be "educated" as to how the new strategy works. I couldn't agree more, but the time to educate them was before drastically changing the way they were accustomed to shop. Don't you think?

The humble and egoless apology
I suspect that my interest in this case is mostly driven by my “consumer” heart, rather than by my marketing head, but let’s see…
According to my very own interpretation of the story, it all started when a great plan was unfairly ruined by a not as great execution. Suddenly, everything changed for the JCPenney’s customer once the big plan was deployed. Consumers were unprepared, surprised and confused by the retailer's sudden bold move. To make things worse, so were the media. I don't think I need to explain how negative publicity can harm the reputation of a brand, or in this case, of a plan.

The great idea so clearly visualized by the retailer's executives, didn't make much sense in the consumers' mind. Why? Because fashion is not a commodity, therefore, the motivations to shop for it go beyond the price. Not even sales and coupons are about the price, but about the satisfaction that comes from "hunting" deals and succeeding. An opportunity given at a specific moment and for a limited time. The serendipity of shopping. Women's shopping psychology 101.

If you are going to take that magic, exciting, and fun element out of your customer's shopping experience, you better give them a very compelling reason on why you are doing so. Also, since it is well known that "we don't see things as they are, but as we are", you better communicate that reason in their own "emotional language" so they can really get it, and engage with it.
I know that many in the marketing industry would disagree with the "apology" approach, and although I agree that it is a very risky one, I love it in this particular case. Judging for what I have "heard" in the social media conversation, I'm not the only one loving it.

What is great is the unexpected element. Social consumers are used to being ignored by most of their favorite brands. Particularly, if those brands are out of the "trendy/tech/startup" group. Most brands have social media channels to push their promotional messages, but they rarely use them to engage their followers.

As much as I liked JCP "Apology" message, I think that it will get old pretty quickly after the initial buzz. I'm sure that JCPenney and its new agency of record Y&R were just building the foundation to launch the real deal. The apology approach does not have enough legs to support a long term strategy, and the message will weaken quickly -it is definitely not the type of strategy that will give the brand the bang it needs to impress its disappointed customers. Knowing that there is a smart agency behind this strategy, I just can't wait to see what the real thing will be!
In an industry in which big egos are the norm, an egoless message feels very refreshing. When that message is backed up by actions that demonstrate genuine concern for making things right, it is even more engaging and powerful.

JCP is mastering the use of its social media channels by doing what every brand should be doing, but unfortunately very few actually do. Penney is trully listening to its costumers.
The fact that JCPenney says that it is listening, and it shows that it is actually listening, is somehow positively shocking. Try tweeting @JCPenney with the hashtag #JCPListens, and you will get a tweet back faster than the 911 would respond, or even Jimmy John's!

What makes a simple tweet so disruptive, is not the tweet itself, but the unexpected quick response coming from a traditional company like JCPenney, (as it would be also the case with any of its competitors within its category).
As an example, here is my tweet to Macy's around the same time I tweeted to Penney. At this point, I don't think that Macy's will reply... ever. As a writer of this post, I'm glad, because that makes my post more interesting. But as a consumer and Macy's customer, I can't help but feel ignored.

As far as I'm concerned, I want them to succeed
As a marketer, I want them to succeed because I'm a big fan of smart minds with small egos, (and that's exactly how I'm perceiving the minds behind this campaign right now).
As as consumer, I want them to succeed because I'm Hispanic. Ok, let me explain that... despite the spot being described by the Anglo media as an "All American" one, it reminded me that out of all the retailers in its category, JCPenney - for some reason that I can't explain - has always "felt" welcoming to my community, therefore, I want them to succeed. I will be rooting for them as a marketer, and as a Hispanic consumer.

Crosscultural Corporate Responsibility

noreply@blogger.com (Ivonne Kinser) — Sun, 4 Mar 2012 16:24:00 -0600

By Ivonne Kinser

Original Source: Portada-online

There are currently 50.5 million Hispanics living in the US--and it is hardly news that they represent the largest, fastest growing minority group in the nation. But what does that mean for US companies? Where’s the real sustainable opportunity? (And make no mistake about it, the keyword is “sustainable.”)
According to the latest statistics, Latinos will account for 60% of the Nation’s population growth between 2005 and 2050. Obviously, the consumer-based growth potential for US companies speaks for itself loud and clear. And there is no question but that planning today with that future in mind will be crucial to building lasting, brands able to withstand competitors’ advances--and even markets and economic crisis.

Accomplishing sustainability through corporate social responsibility

The debate over defining “corporate social responsibility” (CSR) goes back to 1970 when economist Milton Friedman wrote his now-famous commentary on social responsibility, stating that “the social responsibility of business is to make a profit.”

John Mackey, founder and CEO of Whole Foods, responded to Friedman’s position in a subsequent article (that also included comments from Cypress Semiconductor founder and CEO T. J. Rodgers, who supported Friedman’s position), maintaining that corporations that seek long-term shareholder value are more beneficial to society than corporations that focus on charitable endeavors.

For the purpose of this post, let's take the definition Christine Arena proposes in her book The High Purpose Company, which reflects the view commonly-held by most experts in the field today: "The efforts companies make above and beyond regulation to balance the needs of stakeholders with the need to make profit."

Building a Sustainable Brand
CSR-focused efforts may be one of the most effective strategies in building a sustainable brand. And this is especially true among underserved demographic groups--although CSR speaks to any demographic in any language and goes light years beyond cultural stereotypes or language preferences. Think of it as “brands with meaning,” and if you’re not yet sold on the idea, just ask Coca Cola, Wal-Mart, Microsoft, Nike, Nestle, Kraft, General Mills, Kellogg’s, Nike, Adidas, Levi’s, GAP, Kimberly-Clark, Disney, and GE--among the many!

The most successful brands of this era inspire, engage, motivate, empower, and drive business and brand value by innovating with sustainability in mind. They embrace the future by acting as a platform for positive change, striving to impact our world as never before. And as a result, their consumers--as well as their employees--feel empowered to truly act upon their values and not just give them lip service. But to accomplish this marketing dream, your company’s business plan needs to be rooted in sustainability, and your brand’s message genuinely aligned with your cause.

A concept inherent to the Latino culture
During the past few years, multicultural marketers has been scratching their heads trying to figure out the magic message formula that will resonate with their ethnic consumers, to truly engage them and ultimately create strong emotional ties. But it may just be that the answer doesn’t lie in a bilingual TV spot nor in the colors of the talent’s wardrobe, but in a deeper understanding of the Hispanic community’s social needs, and in a genuine effort to address and fulfill those needs; an effort to improve the lifestyle of the Hispanic communities. And I can’t think of a more engaging approach than looking closely at the deepest values and beliefs inherent to the Hispanic culture.

Sustainability is a naturally-occurring characteristic of the Latino culture
Latinos are highly committed to their community, and passionately embrace the causes that support one another within their respective communities. And this community-supportive attitude has existed within most Latino sectors since long before “sustainability & CSR” became hot topics in the US. This is exemplified by the Latino Community Foundation, a group which for nearly 20 years, has embraced the vision of “Latinos helping Latinos.”
There are clear and indisputable connections between CSR and Latinos. The Yankelovich MONITOR Multicultural Study conducted in 2010, discovered that roughly one-third of Hispanic consumers are more likely to choose brands and companies that support the causes they believe in and the communities in which they live. The same 2010 research indicates that 62%of Hispanics agree that there is an extremely small number of brands and companies that truly care about the state of their communities.

Action is not enough. Make sure you communicate it succinctly.
CSR can be a brand’s most effective strategy in gaining a competitive edge. By building social responsible, consumer-facing brands, marketers can provide real distinction. But to compete and ultimately win, brands need to generate sustainable innovation quickly and communicate it effectively, and that communication needs to start from within.
According to a recent article published in Sustainable Brands, “research shows that employees increasingly seek affiliation with organizations that reflect their values and that highly engaged employees outperform their disengaged colleagues by 20 – 28%” (Conference Board, 2006).
However, sometimes the brands with the highest sustainability scores have relatively low perception scores. This suggests that the corporation’s sustainability activity may not be “consumer facing.”
But why not look at this as an opportunity to improve perception through increased consumer-facing product innovations and improved communications?

Consider this highly effective approach:
• Identify what (other than your product/service) is most important to your ideal customer--and then focus on it. Direct every activity toward delivering that customer’s priority outcomes. In short, make your costumers’ priorities the pillars of your marketing strategy and of your message’s portfolio.
• Add social benefits to your brand’s promise . . . and deliver!
• Raise awareness from within. (Companies must engage their own employees first--and then reach out to the consumer.) This means not only communicating your “purpose” to them, but explaining what their brand ultimately represents. Employees must be motivated to live and breathe what your/their brand is all about.
• Stay consistent and innovative--and never waver. (Deliver the message everywhere--even in your company’s Christmas dinner napkins!)
• Watch the front line. Make certain that every interaction with a customer--or potential customer--reiterates what your brand is all about.
• Be genuine and project honesty. Today’s consumers are savvy enough to know when a brand is being deceptive or condescending.

Where the Latino’s heart hurts, and how brands can heal and engage it?
The two primary socioeconomic issues that affect US Latino communities are immigration and education. There is not much marketers and brands can do about the first one, but they can certainly affect the latter. (It is not a coincidence that so many companies have already directed their CSR efforts toward the Latino education cause.)
Although Latinos are by far the largest minority group in America’s public education system, they have the lowest high school and college completion rates of any cultural or ethnic group.
And despite recent advances in educational attainment, reports from the US Census Bureau reveal that serious discrepancies persist when Hispanic educational levels are compared to otherethnic groups. And there’s more to consider:
• Only about half of Latino students earn their high school diploma on time.
• Those who do complete high school are only half as likely as their peers to be sufficiently prepared for college.
• Just 13% of Latinos have a bachelor degree.
• Only 4% of Latinos have completed graduate or professional degree programs.

Some of the many brands currently responding to the Hispanic market
• As part of the platform Live Positively®, the Coca Cola Foundation contributes $300,000+ to HSF (Hispanic Scholarship Fund) for scholarship and retention programs.
• MillerCoors is the founding corporate sponsor of the Adelante! education program and now provides $200,000 annually to fund education support, leadership development, and internship opportunities to deserving Hispanic/Latino students.
• Since 2007, the Staples Foundation for Learning continuously collaborates with the Hispanic Heritage Foundation towards the foundation’s Hispanic Heritage Teacher Award, which honors teachers throughout the United States who have had a positive impact on the lives of children in Latino communities.
• In 1985, McDonald’s founded HACER, a fund that provides scholarships to Latino students who otherwise would no be able to further their education. To date, HACER has awarded more than $20 million in scholarships to nearly 14,000 Hispanic students.
• Western Union developed a community relations campaign aimed at bridging the cultural gap. The campaign is called “¡Sí! Western Union Helps Make Dreams Come True.”
• Macy’s supports the Hispanic Scholarship Funds’ goal of increasing the number of Hispanic college graduates.
• Gillette’s Venus razor brand (P&G), is launching a new scholarship program for young Latinas through The Venus Goddess Fund for Education--the brand’s commitment to empowering women through education.
• AT&T, through the HSF/AT&T Foundation Scholarship Program, assists students of Hispanic heritage, dependents of AT&T employees attending two-year or four-year colleges to obtain a degree.

The paradigm-shift
Branding has changed a great deal since companies’ sales were driven by the promise of instant personal gratification and “ego-feeding” messages. The greatest paradigm-shift of this era is driven by the new generation of consumers with “values-aspired” mindsets who embrace brands that deliver the total package: products that work well, cost less, last longer, and compliment their overall lifestyle by creating richer and more balanced social capital.
All of the above suggests that marketers who truly want to engage Latinos through a sustainable effort should shift their focus from Hispanic “ad work” to Hispanic “community work.”

Brand Personality: Building Value and Relevance by Forging Instinctive Connections with Consumers

noreply@blogger.com (Ivonne Kinser) — Sun, 15 Jan 2012 12:19:00 -0600

This is one of the best posts about branding that I have read lately. There is nothing in it that we, (marketers), didn't know before, but it brings things back into perspective straightforwardly.

Most of the time we are so busy crafting our clients' brands, that we tend to overlook our own brand. This is not exactly rocket science, and I know you know it very well, but it's always good to remember that when you lose sight of you own brand's essence and soul, you hurt it badly with every post, every word and every interaction that is not aligned with it. In a social media world in which messages spread out at the speed of the light, that can happen in seconds.

Sales are great, and "generate revenue" is the purpose of any business, but your brand is what will keep you standing strong while others fall.

Ivonne Kinser

Original Article by B2C

Five Good Reasons to Expand into Latin America

noreply@blogger.com (Ivonne Kinser) — Tue, 10 May 2011 21:37:00 -0500

No one could deny at this point that we have arrived at an unprecedented stage where globalization is making the world “one large market”. Companies worldwide are recognizing the need to “globalize" their business models in order to grow.
Within the global marketplace, Latin America is in the crosshairs of many global companies. Below are five reasons that make the region a no-brainer for companies considering new markets to expand their businesses.
Read article: http://www.portada-online.com/article.aspx?aid=7953

The New Beginning of Multicultural Advertising

noreply@blogger.com (Ivonne Kinser) — Sat, 19 Feb 2011 00:14:00 -0600

I'm glad to see that the industry overall is embracing the positive evolution of the American society and also addressing its implications for consumer trends.
It is definitely not the end of the Hispanic advertising agency by any means, but as the author says; "it is the end of the advertising agency as we know it."
This is not a bad thing, but rather a tremendous opportunity for those smart enough to recognize it, and brave enough to undertake the transformation of their models.

As a Hispanic marketer, I would love to see all Hispanic agencies take advantage of this opportunity to strengthen and expand their businesses while offering their clients the possibility to reach their Hispanic audiences wherever they are, regardless of the language they prefer to speak.

At this point of the evolution of the industry, flexibility to adapt to the transformation seems to be the only way for the players to stay in the game. Trying to stop the paradigm shift both the marketing and advertising industries are experiencing would be like trying to stop the advance of technology: it's just not going to happen!... which is lucky for all of us: Hispanic agencies, marketers, brands, but most importantly American consumers.

Ivonne Kinser

Read article of reference by Juan Aceves.

Is America Ready for a Multicultural Society?

noreply@blogger.com (Ivonne Kinser) — Tue, 21 Dec 2010 23:13:00 -0600

Multiculturalism and the meaning of living in a multicultural society from the perspective of Maria Isabel Valdés; recognized as an authority on the Hispanic market, and author of 4 books on the topic, (including The Hispanic Market Handbook, one of the first books ever written on the subject in the U.S, and which first edition was published in 1995).

M. Isabel also shares with her audience at the TEDx St. Louis event some interesting projections about the future of the U.S. society, based on the data gathered for the 2010 Census.

Generation Ñ, The “Hottest” and Fastest-Growing Segment of American Consumers

noreply@blogger.com (Ivonne Kinser) — Sun, 12 Dec 2010 19:32:00 -0600

By Ivonne Kinser

During the past 30 years "Generation Ñ" hasn't gone unnoticed by the American society, nor by the American media; however, lately it is getting a lot of buzz in the industry.

The young Hispanic Americans influenced by their heritage, bilingual go-getters, nostalgic about their family roots, prompt to mix languages freely, and who represent over $300 billion in purchasing power, encompass the group referred as "Gen Ñ".

The 70's "Gen Ñ". Same Story, Different Scenario

Although the term was coined only about ten years ago, TV networks started featuring this group in their programming repertory even long before the publication of the 2000 census’ startling results unleashed the so called “Latino Boom” in the U.S.

Who doesn’t remember “Que Pasa, U.S.A?”; America's first bilingual situation comedy aired nationwide in the 70's that explored the trials and tribulations faced by a Cuban family as they struggled to cope with a new country and a new language. The series focused on the identity crisis of the teenage members of the family as they are pulled in one direction by their elders, who wanted to maintain Hispanic values and traditions, and in other directions by the pressures of living in a predominantly Anglo society.

A Demographic Shift Hard To Ignore

Thirty years later that situation hasn’t changed much for the multigenerational Hispanic families living in the U.S. Why then is that it was just recently that marketers started turning their heads toward the young Hispanic-American consumers? Well, to me the reasons are pretty obvious and others in the industry might agree. Not only did this group account for all the growth in the U.S. youth population in the last decade, - according to the first estimate of nation' population based on last spring's population count recently released by the Census - but like never before Generation Ñ is challenging the status quo of traditional marketing. This situation is causing sleepless nights of more than a few marketers who are trying to figure out their brand’s way towards the minds and hearts of this highly desirable segment.

Latinos are the nation's biggest and youngest minority group

Latinos make up about 18% of all youths in the U.S. ages 16 to 25

The rapid growth of the Hispanic youth population is without a doubt one of the most dramatic and important demographic trends affecting the United States, and it is starting to become the focus for growth for many players in the U.S. industry landscape. It is just the impact predicted by the short-term and long-term effects of this group's growth somehow motivating the evolution of the media, as the media outlets develop innovative tools, and marketers reinvent their tactics to engage the tech-savvy, bicultural, bilingual Hispanic youth.

Reaching & Connecting with Gen Ñ

The considerations to craft successful tactics that effectively engage this confident, connected and open to change generation must go way beyond the "language" aspect. Contrary to what has been misunderstood by a few in the industry, this is NOT about bilingual everything, and much less about English everything; in fact, about nine-in-ten Hispanic young immigrants, and eight-in-ten second-generation young Hispanics are fluent in Spanish, so language choice is just one the components of the strategy and should be determined case-by-case based on the communication outlet used, its cultural relevancy, and the attitudes of our audience toward a specific category.

There is no doubt that traditional massive media (whether the message is in English or in Spanish), is still a key component of most strategies; however, marketers targeting the youngest Hispanics are leveraging multi-market, multi-media campaigns, not only to directly reach and connect with this audience, but to engage them as evangelists to communicate the message to their families.

The Current Scenario

Gen Ñ is under the microscope of quite a few marketers who see the emormous opportunity of this group. Media outles are not lagging behind either but rather are evolving accordingly and creating bilingual environments and cultural relevant content to appeal to this demographic; and although some in the industry are in the right path, it seems that the deeper we dig into this demographic the more complex and challenging it gets. Just recently, a new report released by the Pew Hispanic Center highlights important findings regarding the differences in technology use between foreign-born and native-born Latino youth. With so many variables within the same group, finding the right strategy to truly connect with this culturally complex audience is still a challenge even for the savviest brands, and a total conundrum for many others, since it requires marketers to capture the complex bilingual, bicultural sensibilities of this multidimensional group.

The Price For The Winners

The great news for those marketers willing to challenge the Hispanic marketing's status quo, to abandon assumptions and stereotypes, and to continue with an unbiased attitude through the path of researching, testing and extracting and analyzing insights from this group, is that they will eventually crack the code that will win over the “hottest” and fastest-growing segment of American consumers, and the rewards might be enjoyed for many years to come.

Link to Ivonne Kinser

Is advertising ghettoizing Multicultural Americans?

noreply@blogger.com (Ivonne Kinser) — Thu, 2 Dec 2010 23:49:00 -0600

It is very hard to disagree with a statement like the one below when we refer to multicultural audiences while seriously and objectively considering today's reality of mainstream America:

"But at what point do you say...ok, those "different folks"...well, they are no longer the "different" ones. They represent a huge chunk of this country and calling their experience not-mainstream seems wrong. At some point you say "their experience, THAT'S the new American experience""

There is no waste in this very thought-provocking post. I invite you to click, read, and come to your own conclusions...

Social media as a way into Latin America?

noreply@blogger.com (Ivonne Kinser) — Tue, 9 Nov 2010 20:18:00 -0600

By Ivonne Kinser

Go back in time to 1990, and think for a minute about conducting a marketing effort to promote your product or service abroad. What would you be doing? Got the picture?

Now come back to 2010, type a 140-character message in your brand’s Twitter page, and within seconds your message can be all over the globe, depending on how well you did your networking homework. Let’s be realistic, Twitter, Facebook, LinkedIn or YouTube are not going to close the sale for you, however, they can create awareness and get the word out about your products or services.In other words, social media is the brand’s voice that reaches your target audiences and leads them to your brand’s hub (website, blog, etc.)

Breaking News: Crosscultural Marketing has another one in the fold

noreply@blogger.com (Ivonne Kinser) — Thu, 4 Nov 2010 11:20:00 -0500

This is very exciting news for those of us who are strong believers and supporters of Crosscultural Marketing. Ogilvy is the most recent advertising agency to embrace the Crosscultural Model within the last several months, which is helping to pioneer the paradigm shift that will transform the U.S. advertising industry.

Contrary to what the detractors of the model might say, we are not talking about Anglo marketers experimenting with multicultural audiences. Rather, all these shops (Draftfcb, Richards/Lerma, Crispin Porter, 22squared, etc) have recruited truly multicultural experts with years of solid experience in ethnic markets to manage the multicultural business of their clients.

It seems like it is just a matter of time for the entire U.S. advertising landscape to evolve into a multicultural industry, which would be a true reflection of today's U.S. society. And to be fair, the evolution should include Hispanic agencies managing the Anglo business of their clients as well. I'm personally hoping to see that happen soon.

Stay tuned because this process has just begun, and like many of you, I can't wait to see which advertising agency will be next.

African, Hispanic (Latino), and Asian American Demographics

noreply@blogger.com (Ivonne Kinser) — Sun, 17 Oct 2010 09:09:00 -0500

The growth of ethnic minorities in America has been phenomenal. Since 1980, the Asian American population has almost tripled, Hispanic American more than doubled, Native American increased 62%, and African American increased 31%, while the non-ethnic population has remained almost the same.

This is a trend that is expected to continue. The latest estimates by the U.S. Census Bureau predict that the minority population will comprise fully half the U.S. population by the year 2050.

It may seem as if the same song is being sung by a number of different choirs. The opportunity to reach powerful segments is here today. But how about we not "dip our toes in the water" and make a true commitment to these segments? Let's be honest, we as marketers have known about this opportunity for a while.

Latino Immigration From a Different Direction - New America Media

noreply@blogger.com (Ivonne Kinser) — Sat, 16 Oct 2010 13:24:00 -0500

So, here we go again, not only Hispanic immigrants are being influenced by the American culture, but they are simultaneously influencing the way Americans live and perceive life. Does this sound familiar? Probably it does if you have been reading not only the rest of my blog, but anything related to multicultural marketing published recently. The novelty in this case? that the Latino influence is expanding way beyond the states usually associated with immigration.

Emory University's Mary Odem discusses her recent book on how Latino immigration has affected the southern U.S. Latino Immigration From a Different Direction - New America Media

The Gray And The Brown: The Generational Mismatch

noreply@blogger.com (Ivonne Kinser) — Sat, 2 Oct 2010 22:27:00 -0500

A gem of an article published by National Journal magazine about the impact of the multicultural young generation on the future of America.

This is the time for brands to set the direction that will impact them for the next 20 years. What should brands do? Allocate most of its resources to today’s pure “general market” consumer or to put them into the multicultural Gen Y consumer to win over the market segment that's going to continue increasing dramatically? I believe the best approach is the latter.

The fact is that those marketers brave and insightful enough to see and proactively engage the new consumer will be far ahead of their competition. Engaging this younger more multi-cultural segment in a relevant and authentic manner will lead to ROI now and down the road.

New Messaging Needed to Reach 'New Majority'

noreply@blogger.com (Ivonne Kinser) — Thu, 30 Sep 2010 22:27:00 -0500

This is definitely where marketing in the US is heading to. With 103 millions of Hispanics, African Americans and Asians in the US, brands need to find creative ways to communicate meaningful and relevant messages to their multicultural audience to be able to truly connect with it. With all the sub groups that encompass the "New America".

The marketers are naming their models: Total Market Approach, as we call it in Richards/Lerma, Crossculturalism as Ken Muench, one of the savviest US Hispanic planners - in my opinion - calls it, or Transcultutal marketing, as I like to call it; but it all boils down to the General Market work influencing the Hispanic work, and the Hispanic work influencing the General Market work in a way that makes brands stronger.

http://adage.com/hispanic/article?article_id=144536

Do you want to know what a woman wants? Ask Levi's

noreply@blogger.com (Ivonne Kinser) — Sat, 25 Sep 2010 23:22:00 -0500

Ivonne Kinser

When I came across Levi's Fitting Experience Platform I was not sure if I was more fascinated by the product they had created, or by the brilliant social media approach. Levi's Digital Fitting Experience is, without a doubt, one of the most significant global digital campaigns to date, executed by the brand that invented jeans for women nearly 75 years ago, and that is today using digital as the backbone of a global product launch.

Levi's Experience provides women with engaging content and personalized tools to demystify the process of finding perfect-fitting jeans, based on their shape, not size. Women are able to identify their Levi’s CURVE ID fit by completing an interactive quiz and following a simple step-by-step measurement process.

According to research conducted by the brand, 54% of women try on at least 10 pairs of jeans before finding "the one", yet when the jeans don’t fit, women blame themselves. Was Levi's really listening to the internal dialogue women have with themselves when trying on jeans? According to Mary Alderete, Levi’s vice president of global women's marketing, they indeed were. By interpreting the numerous insights of study participants, Levi's was able to create a new system that added to the traditional dimensions of jeans – length and width – by adding a third dimension; shape. "From now on, it is shape that counts, not size".

Levi's strategy - A perfect fit for the Hispanic market
Whether or not Levi's decides to translate its digital platform into Spanish, the product and the message are naturally relevant to the Hispanic woman. Fashion is fashion, but when it comes to shopping for jeans, Latinas look for what fits their body type, which tends to be different not only from the Anglo woman's body type, but from other Latinas as well.
Women from Central America often have more Aztec blood mixed with European, so they tent to be shorter than those from South America who often have greater European mix. Central American and Mexican women, often look for petite versions of clothes to fit their smaller frame.
The body shape of Latinas from South America often resembles that of women from Spain, not very curvy, but not as tall as the Anglo woman either. Many Latinas that come from the Caribbean, (Cubans, Dominicans and Puerto Ricans) often have a mix of African blood so their body types tend to be more curvy and resemble more those of African-American women. These women are looking for clothes that accentuate curves and are not designed for the less curvy South American woman.

Finally a jeans manufacturer that can please all Latinas and Anglo women with one product
In order to develop its CURVE ID line, Levi's conducted extensive research that showed that 80% of women around the world fall into three distinct body shapes, so one size could never fit all. Their goal was to engage women online with their interactive, custom fit experience that matches them with their perfect Levi’s® CURVE ID fit whether they are a Slight Curve, Demi Curve or Bold Curve. Or should we say whether she is Anglo, Mexican, Argentinean, Puerto Rican or Colombian?
However we want to put it, this may forever change the way women shop for jeans.

Yo Quiero Publicidad en Español: Why Marketers Should Also Reach Out to Online Hispanics in Spanish

noreply@blogger.com (Ivonne Kinser) — Thu, 16 Sep 2010 13:12:00 -0500

Today kicks off National Hispanic Heritage Month in the US, so we decided to take a look at a few of the trends and tips we’ve seen lately about Hispanic media usage and how marketers can reach them.

eMarketer estimates there are nearly 30 million Hispanic internet users in the US this year. Hispanics are underrepresented online, with less than 60% accessing the internet at least monthly, compared with 76% of non-Hispanic whites and 63.8% of blacks. And according to June 2010 data from the Associated Press and Univision, online Hispanics spend more time with English-language content on the web than with Spanish-language sites and information.

Hispanics were also significantly more likely to report spending no time using the Spanish-language internet, at 53%, vs. just 32% who said they spent no time on English-language sites.

This research falls in line with earlier studies, such as one published in 2009 by Ipsos that found 59% of Hispanic men and 51% of Hispanic women preferred English on the internet. Even 10% of respondents whose primary language was Spanish would rather go online in English, according to that study.

But attitudinal research shows that marketers must still reach out to Hispanics in Spanish. Experian Simmons found in December 2009 that more than two in five Hispanics felt Spanish-language advertising is a sign that companies respect their heritage, and nearly as many said they were more loyal toward companies that show such respect. Spanish-language ads were unsurprisingly more important to Spanish-dominant consumers than to fluent English speakers, but solid percentages of all Hispanics care when marketers make the effort to connect with them through their own language and culture.

That also means Spanish-language marketing content should not appear second best. Unfortunately, however, that is increasingly the case.

As eMarketer senior analyst Lisa Phillips wrote in May, “many of the Spanish-version sites are lagging behind their English counterparts. According to AOL’s Hispanic Cyberstudy, one-quarter of Hispanic Internet users say they could not do all the same things on a Spanish-language site that they could do on the corresponding English-language site.”

Study Shows Hispanic Shoppers’ Behavior Shifts by Season

noreply@blogger.com (Ivonne Kinser) — Thu, 16 Sep 2010 03:58:00 -0500

A study currently underway by The Integer Group and M/A/R/C Research reveals in their recent newsletter, The Checkout, that Hispanic shoppers show a shift in shopping behaviors by season, in comparison to general market shoppers.

During the months of June, September and November, Hispanic shoppers’ primary shopping goals show a significant change in rank with their priority being more on “concern for family satisfaction” and “one-stop shopping” and less on “saving money.” These months also coincide with significant shopping events: summer, back-to-school, and holiday shopping. This data suggests that while general shoppers may hunt for the best back-to-school deals, summer savings or holiday sales, Hispanic shoppers seek approval from their kids and family members over purchasing the cheapest item.

With the exception of the three major stocking-up events mentioned, saving money and convenience are usually the top shopping goals for Hispanic shoppers. They are traditionally more value-driven and less likely to use in-store tools than the general market. When it comes to shopping aids, Hispanics appear less responsive to in-store messaging than non-Hispanics with neither messaging at-shelf, nor in-store TV being cited as tools that help make a purchasing decision.

“Although many retailers and brands develop communication aimed at both the general and Hispanic markets, our research indicates that it’s not necessarily reaching the Hispanic shopper,” said Martin Ferro, Senior Planner for Velocidad, an integrated Hispanic promotional, retail and shopper marketing capability of The Integer Group. “Brands must be deep-rooted in the more meaningful insights that distinguish Hispanic communication from general market communication, especially during key shopping events.”

Hispanic shoppers are also more likely than the general public to switch brands. A contributing factor is the acceptance by family members of private-label brands in the household. Significantly more Hispanic shoppers perceive less difference in product quality of private and brand name products than general market shoppers. Surprisingly this is even more pronounced at higher income levels ($75,000+).

Although there is an increase in private label purchases, many Hispanic shoppers that haven’t been as affected by the economy as others are sticking with familiar brands despite having to occasionally buy them less often.

“Of those Hispanic shoppers who reported no change in their shopping behavior this year, 67 percent said they stick with their brand of choice, even if another brand is cheaper,” said Randy Wahl, Executive Vice President, M/A/R/C Research.

Data for The Checkout comes from a national survey conducted by Integer and M/A/R/C where consumers are asked about their shopping attitudes, shopping behaviors, and economic outlook. Topics range from criteria shoppers use to select retailers, to which in-store stimulus is most likely to drive purchase, to factors that might lead shoppers to leave an aisle empty-handed. The Checkout is available for download at Integer’s blog www.ShopperCulture.com or M/A/R/C’s web sitewww.MARCresearch.com/thecheckout.

Passion Drives Personal Brand

noreply@blogger.com (Ivonne Kinser) — Sat, 4 Sep 2010 11:20:00 -0500

Passion is what fuels the best of what we do. It’s that tireless drive to do something that we feel matters that will bring us forward in so many ways. Whitney is passionate about helping parents understand (and feel more comfortable with) learning disabilities. Jon is passionate about connecting with communities to provide spiritual guidance and observations from simple life. Gary Vaynerchuk is passionate about wine in ways that startle first time observers of his show. A key to your success in life is to find and enhance this same passion.

Passion is Rarely aligned With What’s Popular
A bunch of years back, I talked to Ingrid Lucia and the Flying Neutrinos. They’re calling themselves a jazz band, but they do New Orleans style swing jazz. When Swing hit really hard in the US, they rode the wave, but they’d been doing swing for years before folks came out to see them. Now that the wave passed, they’re still doing what they’re passionate about, and it still sounds great.
If you’re in the current wave, ride it, and that’s cool. But don’t seek out something to do based on the wave. My best advice in this regard is that sometimes that which you’re passionate about can be made to align with what’s
currently interesting to the world. But don’t fake it. It just won’t last, and your own brand will suffer along the way.

Passion is hard to Fake
Authenticity matters. Most people can sense authenticity without a lot of effort. They can also sense when you’ve one astray from what truly matters to you. So be true to your passion. And here’s a thought on that: if you suddenly are very much NOT passionate about something, think about moving on to that which does have your passion and attention. I’ve certainly changed what matters to me over the years. I was very into fitness and nutrition in 2004. you can go back on my blog archives and see me talking about the right mix of carbs and protein, when to hydrate, etc. Back in 1997, I wrote passionately about writing fiction. Don’t fake passion.Move on.
Something to think about here: it’s okay to move on from what you were passionate about, even if that’s what defined your entire brand. you can seek a sideways move that shows a tangent back to your passion, or you can start over again. It seems daunting, but it will pay off in the end.

Passion includes Mistakes and Failures
Never worry about doing something wrong, going afoul, pissing people off. Don’t SEEK to do it, but don’t be afraid of it. How can you create passionately ifou’re worried about going outside the lines. Make mistakes all over the place. Don’t TRy to hurt people’s feelings, and most especially, admit when you’re wrong, apologize, try to be friends again, and keep going. I seem especially skilled in pissing friends off. My friend, Christopher S. Penn has said many times over the last year, “We have to take Brogan everywhere twice. The second time is to apologize.” He’s right.
But with people, you try really hard to rebuild where you step on toes, piss people off, etc. With business, if your passions hurt something, try to recover and see where it all goes.
Life doesn’t have a do-over button, and you learn really quickly who gets mired in the past and who’s focused on making the experience of the present and future better. Focus on those who understand the latter. History is there to learn from, but not to obsess over. Make mistakes. Apologize. Repeat. And grow from your passion.

Passion Means helping others see it
I guess you can be wildly passionate without sharing, but what’s the fun in that? I tell people when I speak at events that I want their guidance and input because if I wanted to just talk
“Be yourself all the way to the core. And trust that what’s unique and inherent in you is what people will want and why they’ve sought you
with myself, I can do that any day of the week. Passion is best expressed when it’s shared with others.
Want to see someone really passionate? Talk to Michael Smolens about dotSUB, his translation project/ software. Michael brings you into his frame of reference, whether or not you were even talking about language. Talk to Jeff Pulver for more than 10 minutes and see if you don’t land on any one of Jeff’s 3,891,774 passion land mines. The man is FUELED by passion.

Share your passion liberally
Be the C.C. Chapman of your own passions! This man makes shows and shows and shows and blogs and more shows about what drives him, what turns him on, what matters. Emulate C.C. and you won’t be too far off.
Passion RequiRes WoRk and thought

There’s a really important point to consider: just talking about things all the time isn’t exactly the same thing. you’ve gotta get in there. you’ve got to try things, experiment, do new things, work with others, HELP others, and share your thoughts and ideas then. Suggest new things, and then see if you can try them out.

Passion isn’t a “Me too” game
There’s only one Bill Belichick, coach of the New England Patriots. Believe me, I’ve heard this man during three different
Superbowl victory conversations talk about what his team could’ve done differently to make the game even better. He says it with love of his team, and with a drive to hold them responsible for what they’re doing out there. Bill believes that his duty to his team is to keep them focused on playing the best game they can place. you rarelyy see him smile. And yet, you know he’s passionate in ways humans rarely exhibit.
Be yourself all the way to the core. And trust that what’s unique and inherent in you is what people will want and why they’ve sought you out in the first place. Finding your own unique notes is tricky, and takes a little bit of work, but once you get those notes, play them loud and proud.
I’m a really big fan of cover songs. (And if you like them, subscribe to Coverville. Why do I love cover songs? Because it’s amazing when artists play someone else’s song in their style. I love it. Don’t be a cover band because you’re not original. Play covers because they show off your uniqueness against someone else’s original style.

engage People With your Passions
How do you reach out to people and talk about your passions? How does your business or vocation allow you to express your passions? Have your passions ever given you a job? What are the ways you’re building your brand around your passion?

Bt Christopher Brogan

Hispanic Shoppers: Growing & Passionate

noreply@blogger.com (Ivonne Kinser) — Fri, 3 Sep 2010 22:27:00 -0500

The 2010 Census is expected to show that the Latino population is almost 50 million strong (15.5% of the total U.S. population), up from 35 million in 2000. By 2050, Hispanics are projected to number almost 103 million, says the U.S. Census Bureau.

In terms of spending, Rockville, Md.-based Packaged Facts reports that the Latino community's buying power is expected to reach $1.3 trillion in 2013, up from $984 billion in 2008 (a cumulative growth rate of 31%). According to a November Adweek article, Hispanics have about $863 billion in discretionary annual income, more than any other minority group in the U.S.

In short, for many well-established brands and retailers, the Hispanic market represents a potentially huge growth opportunity.

The Association of Hispanic Advertising Agencies (AHAA) reported that the top 500 advertisers allocated 5.4% of ad dollars "during last year's recession to reach and connect with Hispanic consumers, up from 5.1% in 2008." But as brand managers realize the need to allocate more money to attract Latino consumers, expect to see more arm wrestling for marketing dollars, says Michael Olguin, president of New York-based Formulatin (a national Hispanic public relations agency).

"There will be a greater play for Hispanic marketers who really understand that space," he says.

The key word being "understand." Rolling out true Hispanic shopper marketing programs requires more than using Spanish copy on a header card. It's knowing the Hispanic shoppers' purchase behaviors, origins and passions.

Characteristics of the Hispanic Shopper
"Marketers know that Hispanic shoppers represent a huge and growing customer base, and that this group is critical to the future success of their brands," says Donald Longo, editorial director for Stagnito Media Food Group, New York (producers of the Hispanic Retail 360 Summit). "The difficulty with reaching them effectively stems from the many different types of Hispanics -- it's not a homogenous group." Those individuals who trace their origin or descent to Mexico, Puerto Rico, Cuba, El Salvador and other Central and South America countries all fall under the Hispanic label, and within the demographic there are varying degrees of acculturation.

Less-acculturated shoppers tend to retain more of their habits from their home country, essentially living a lifestyle in the States as they would back home, Olguin says. They tend to choose stores that offer products from their home country and appreciate bilingual signage and Spanish-speaking employees, adds Mark Bacon, U.S brand director for Casa Herradura Tequilas (a division of Brown-Forman), Louisville, Ky.

"For those who rely on Spanish as their primary language, it sends a message that those shoppers are welcome," says Gisela Girard, AHAA chair and president and COO of Creative Civilization, a San Antonio-based agency. "For more acculturated Hispanics, the use of bilingual messaging is still an important way to create a sense of engagement and respect. Even though the Hispanic consumer in this case may not be fluent, or even Spanish-capable, they still feel acknowledged and important."

"The Hispanic shopper today is much more savvy and sophisticated than before," adds John Echeveste, principal at VPE Public Relations, a firm dedicated to the Hispanic market with clients like McDonald's and Nestlé in South Pasadena, Calif. "We know that they shop more often, make larger purchases and over-index in many key categories, especially baby products. We also know that moms are the primary decision-makers in the household, but that kids are strong influencers."

"Hispanic shoppers are looking for value, whether it be a cost value or entertainment value in terms of their in-store experience," adds Liz Arreaga, partner of Austin, Texas-based agency Mercury Mambo. "As seen in our own shopper study among Spanish-speaking shoppers, shoppers are paying more attention to promotions. Both retailers and Hispanic shoppers alike told us that discounts, BOGOs and store events were appealing. Shoppers are using store circulars as shopping guides and actively searching for promotions and deals, rather than passively purchasing the same brands."

And breaking the notion that they don't use coupons, Kim Finnerty, vice president, consumer/shopper insights at PanaVista, a Hispanic marketing promotions agency in Dallas, says that in its most recent 'NVista Hispanic Shopper Tracker, 45% of Latinos said they are using more coupons due to the economy.

Other characteristics that industry experts say define this segment include: They consider shopping to be a family outing; they are disciplined shoppers who plan their shopping trips and are more likely to stick to a budget; word of mouth is important; they tend to prepare more meals at home; they are influenced by celebrities for purchases; less-acculturated Hispanics may still prefer independent retailers, while the more acculturated are more likely to visit chains; and radio, Spanish-language TV (especially novellas) and the Internet are good ways to reach them.

In-store, they claim to be more heavily influenced by all types of merchandising than general market shoppers, says Finnerty, citing the 'NVista Shopper Tracker. "In-store sampling is cited by 57% as significantly influencing purchase," she explains, compared to 52% of the general market. "Hispanic shoppers are also drawn to shelf coupons and special displays (both 47%)," Finnerty adds.
Learning More

CPG companies and retailers are employing a number of methods to learn how they can penetrate this segment. More than 20 major brands such as Clorox, Kraft Foods, McDonald's, Nestlé and Subway have joined the Latinum Network, a business network devoted exclusively to helping corporations tap into the Hispanic market. The organization provides peer-to-peer collaboration, strategic analytics and research.

"One of the challenges of the Hispanic shopper marketing experience," adds Noemi Ricalo, president of PanaVista, "is the lack of sales data to support program expansion. Nielsen panel data is not always available and typically under-represents Hispanic results." She cites regional chain Jewel-Osco as one retailer with a comprehensive Hispanic marketing program: "They not only partner with their manufacturers, but more importantly, provide metrics at the end of the promotional period."

Dallas-based 7-Eleven, a member of the Latinum Network, created a senior director of Hispanic marketing position about 18 months ago to better understand this consumer. The senior director, Irene Sibaja, says the retailer uses its major market study -- conducted every two to three years -- for a sense of what percentage of customers are Hispanic, what they tend to buy and how much they spend. Proprietary research also elicits insights.

"Last year we conducted focus groups among Hispanic male shoppers, and parts of our current strategy are based on what we learned," says Sibaja. Industry and CPG studies are also used, although she notes that they'd like to see more studies that differentiate Spanish-language-dominant from non-Spanish-dominant consumers.

At White Plains, N.Y.-based Tecate, vice president of marketing Felix Palau says they employ several approaches to analyze and test campaigns with Latinos. These include demographic analysis, psychographic research and direct market information.

Multicultural shopping studies across categories and channels have been done at The Clorox Co., Oakland, Calif. And more recently, the company has embarked on deeper path-to-purchase studies for its key categories, says Jennifer Reiner, multicultural team lead -- specialty.
Hispanic-Dedicated Stores

To attract this coveted target, some retailers have opened "Hispanic" stores. Last year, Walmart opened two Supermercado de Walmarts -- one in Houston and one in Phoenix -- and a Mas Club discount warehouse club in Houston. Walmart declined to be interviewed, but a June 2009 company press release says the Phoenix Supermercado de Walmart "features a new layout and product assortment designed to make it more relevant to local Hispanic customers." The 39,000-square-foot store carries fresh tropical fruits and vegetables; fresh corn tortillas; meats such as milanesa; and an in-store cocina serving such items as tacos and tortas.

Yet, PanaVista's Ricalo finds these large-scale type formats to be knockoffs of the Hispanic supermarket chain, Pro's Ranch Markets, that she says "set the standard for 'authentic' formats." Ricalo says retailers would succeed by enhancing their variety offering to suit their neighborhoods. "Providing what your shoppers need," she explains, "is more important than trying to convey a sense of Hispanic authenticity that doesn't quite meet real standards."

Providing what the neighborhood needs is the goal of the recently opened HIT Mobile in Cudahy, Calif. In partnership with T-Mobile and the first of the company's T-Mobile Premium Retailer Latino program, it features a wide variety of wireless products and services. Mauro Martinez Jr., HIT Mobile's president and CEO, says wireless can be pretty confusing and there's a need for customers to feel comfortable. He says that the list of the top 10 handsets in the general market and top 10 in the Hispanic market are radically different.

While HIT Mobile has the same look and feel of a T-Mobile store, all materials and signage are bilingual, as are all employees. "I have spent years working in the Latino community. I fully understand and appreciate its shopping habits, buying patterns and much more," says Martinez, himself a second-generation Hispanic. "That includes hiring from the area, building a team reflective of the community and giving back to ensure success for everyone."

As one of T-Mobile's "playground" stores, it allows for lots of interactivity and includes a children's play area. Two more stores, also in Southern California, are currently under construction. Martinez says key to the stores' success is training employees on each generation. "A first-generation Latino speaks in Spanish, wants International plans and all literature in Spanish," he explains, "while a third generation might be labeled Hispanic but is more similar to the general market. Yet they feel comfortable in the store because of their upbringing and the cultural connection."

Formulatin's Olguin, a third-generation Mexican American, says it's about finding a cultural connection. "For Hispanics, the four passion points are family, music, food and fashion/beauty. When building a community or marketing platform, utilize one or more of the passion points."

To tap into the importance of family, Greenwich, Conn.-based Nestlé Waters' Nestlé Pure Life brand launched its "Better habits for a better life" campaign in June that encourages Latina moms to get their families to drink more water. The campaign uses Hispanic TV host Cristina Saralegui as its spokesperson -- "Oprah for the Hispanic community," says Carolina Rodriguez, marketing manager, Nestlé Pure Life. National TV, regional radio, in-store promotions, grassroots events and sweepstakes are all part of the effort.

A variety of targeted approaches as well as inclusion in broader campaigns is the key to success for The Coca-Cola Co., says Diane Wallace, vice president, shopper marketing. "Our efforts are a combination of 'depth' and 'breadth.' The depth programs allow us to connect with Hispanics' specific needs and passions; the breadth programs leverage universal communication and properties that are relevant to all consumers," she explains. "An example of this approach is the recent FIFA World Cup campaign, where we used the 'Join The Global Celebration' message across the market, but at the same time we added depth to this message among Mexican Hispanics with an association to the Mexican National Team." The Powerade campaign included TV, radio, print, out of home, digital and P-O-S materials.

Sponsorships and events are another way brands are making a Latin connection. Chicago's MillerCoors' Coors Light brand sponsored the National Puerto Rican Day Parade in Manhattan this past June. The brand made a $75,000 donation to the parade foundation and Diversity Foundation Scholarship Funds. Its "Emborícuate" campaign invited all to share in the pride of being Puerto Rican and included visuals in supermarkets, bodegas and bars.

Last fall, Clorox teamed up with the South Central Family Health Center in Los Angeles to offer a free flu clinic. "Pon el Virus de la Gripe Fuera de Acción" (Take the Flu Virus Out of Action) was part of the brand's national campaign and featured Dr. Aliza Lifshitz, internist at Cedars-Sinai Medical Center and editor of vidaysalud.com, a health website. In addition to being the keynote speaker, she answered participants' questions and provided advice.

"The Hispanic culture is rooted in the family and community," says Clorox's Reiner. "It's 'we' vs. 'I,' so finding a way to connect at the local level with consumers is an area that we're beginning to place more focus."

From: shoppermarketingmag.com

Multiculturalism and the New America

noreply@blogger.com (Ivonne Kinser) — Mon, 30 Aug 2010 10:08:00 -0500

Multiculturalism is redefining what it means to be American today. With the changing appearance of the U.S. population comes new definitions of the U.S. consumer and new dilemmas for marketers trying to reach those whose tastes, customs and language may differ from what is commonly know as “general market”. Culturally relevant marketing plans will become increasingly critical as the population becomes more diverse and the buying power of U.S. Hispanics becomes more significant.

The biggest mistake that a company can make is to view the U.S. Hispanic market as homogeneous. Acculturation levels, language preferences and country of origin make for unique sub-groups within the segment.

The Hispanic market’s current size, formation of larger households, heavy concentration in the top, youngest, trend-setting markets in the U.S., accompanied by their speedy wealth creation and high consumerism are at odds with the neglect of investment across most advertising and marketing categories. It is imperative for U.S. marketers to reanalyze and immediately adopt new strategies in the way in which they have historically allocated corporate marketing resources.

Hispanics – One Market or Más?
“Latino” or “Hispanic”, as a description, refers to an origin or ethnicity, not a race. There is no one monolithic “Hispanic market.” What, if anything, unifies Hispanics? For the most part, the language. Spanish stands as a symbol of difference for U.S. Hispanics; wherever they’re from and regardless of their history, Spanish is a key to their individual and collective pasts.

Country of Origin
The single most important segmentation factor among U.S. Hispanics may be their country of origin. The U.S. Hispanic market is comprised of subcultures from over 20 countries in Central and South America, the Caribbean and Spain, with the majority (63%) of Mexican heritage. The culture, beliefs, opinions and consumer behavior patterns of U.S. Hispanics are not identical, as a result of the influence of differences in their native countries’ geography, indigenous ancestry and colonial origins.

Acculturation vs. Assimilation
U.S. Latinos tend to “adopt and adapt” to customs and habits in the U.S. without shedding traditions and value systems. Along that line, marketers, and those trying to tap into the Hispanic segment, cannot simply transfer directly to the U.S. Latino market the conceptualizations or marketing strategies that work with more traditional, general market consumers. Latinos are assimilating to prevalent U.S. culture, but they are not, and probably never will be, fully assimilated. Instead, theirs is a path of acculturation. It is a process of integration of native and traditional immigrant cultural values with dominant cultural ones.

¿Hablas español?
Language is one of the most obvious examples of this phenomenon. Spanish is likely to remain the language of preference among U.S. Latinos. In fact, Univision is now the #5 network in the United States, behind ABC, NBC, CBS and Fox.

When asked about advertising effectiveness, 38% of Hispanics surveyed found English language ads less effective than Spanish ads in terms of recall and 70% less effective than Spanish ads in terms of persuasion. Many younger and acculturated Latinos mix languages into a form of “Spanglish,” in which they speak English peppered with Spanish words. But when it comes to selling, 56% of Latino adults respond best to advertising when it is presented in Spanish.

Communication Channels for U.S. Hispanics
Research shows that while Hispanics consume every type of media, they do seem to have a special attraction to television and radio. Nevertheless, the air-time used to identify a product or service at an in-depth level is typically too brief and too incomplete to be effective, thus the “sale” will not be closed. However, the combination of direct mail, broadcast and print makes it possible for the Hispanic consumer to obtain additional information and “close the sale” — with each medium contributing to the total communication story.

Television
- The visual confirmations provided in television advertising are extremely important, especially so for Spanish-dominant Hispanics.
- 49% of U.S. Hispanics who watch television during prime-time hours, watch Spanish language programming.
- 40% of Spanish-dominant Hispanics regularly watch English-language programming.
- 30% of English-dominant Hispanics regularly watch Spanish programming.

Radio
- Radio is a proven, effective medium in targeting Hispanics.
- The most unique aspect of Spanish-language radio stations is the time spent listening.
- The Hispanic population often listens to the radio all day.
- The entire family may listen to one station and tune in, on average, 26 – 30 hours per week. This ranks more than 13% above the general population.

Newspaper
-Minority newspapers are an inseparable part of the local minority community. They deliver what no mass medium can — news that is specifically geared to the needs and concerns of individual minority communities.
-Newspaper readership skews to Adult 34-54 age group with an average HHI of $40k+

Event Marketing
- 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.

Direct Response Marketing
- The process of acculturation influences the Hispanic consumer’s perception of direct marketing. While most consumers in the general market dismiss direct marketing materials as junk mail, Latinos — particularly recent immigrants — welcome it as a means of becoming a more informed consumer.
- Overall, Hispanic households are 3.5 times more likely to respond to a direct mail solicitation than a non-Hispanic household;
- 72% say they always read their mail, including direct marketing;
- 60% of the direct mail sent to homes is in English;
- 52% of the respondents speak only Spanish in their homes.

Translation vs. Transcreation
Marketers cannot simply transfer directly to the U.S. Hispanic market the conceptualizations or marketing strategies that work with the general market. Many factors — historical, contextual, cultural, demographic, financial — place Hispanic consumers in a different category. Brand awareness and usage levels are often dramatically unlike general market patterns and different product attributes are deemed important by Hispanic consumers.

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 the sales volume, strength and recall that a truly culturally-attuned marketing and advertising effort can attain.

Make no mistake, the integration of generations and diverse countries of origin within the U.S. Hispanic market has created a complex culture that requires experience and research to understand. What is needed for a successful Hispanic promotional campaign is a sensitivity to what is important to Hispanics – and senior corporate executives willing to initiate a reversal of underinvestment in the Hispanic market by creating new allocation levels in their business and marketing plans for reaching Hispanic consumers. The opportunity is growing. The time is now.

Inspiration: Advertising & Marketing Review

Home Depot Hispanic Move Ruffles Feathers

noreply@blogger.com (Ivonne Kinser) — Tue, 6 Apr 2010 22:15:00 -0500

Home Depot Hispanic Move Ruffles Feathers

First Ever Latinos in Tech Meet Up at SXSW

noreply@blogger.com (Ivonne Kinser) — Sun, 21 Mar 2010 09:29:00 -0500

By Kety Esquivel

"I am finally back from SXSW interactive. Those of us who went had a phenomenal time and we are looking forward to bringing many more friends with us next year! I will be doing a few blog posts reflecting on my experience on SXSW in the coming days but in the interim wanted to leave you with a few pictures from our first ever Latinos in Tech Meet Up at SXSW this year. Enjoy! And thank you to Zunostudios for sharing your exceptional photographic talents with us! (Pictures courtesy of Zunostudios.)"

http://ketyesquivel.blogspot.com/2010/03/pictures-from-latinos-in-tech-panel-at.html

SXSW After Latino Audiences

noreply@blogger.com (Ivonne Kinser) — Sun, 21 Mar 2010 09:20:00 -0500

By Ivonne Kinser

Austin, TX–A South by Southwest music conference music panel met to explore how the entertainment industry can expand its audience by engaging Hispanics, the youngest, fastest-growing segment of the U.S. population, organizers have announced.
The music panel, “Reaching America’s Fastest Growing Market,” was held March 19 at 5 p.m. at the Austin Convention Center.