Latino Boom

1
Latino Boom!

• Everything you need to know to grow your business
  in the U.S. Hispanic market

2
The Perfect Market

• Fastest growing
• From 1990 to 2000, Hispanic population grew by
  57.9
• United States population increased 13.2
• Estimated 41 Million Hispanics in the U.S. today
• Adding Puerto Rico 45 Million
• African Americans 36 Million, or 13
• Grows 5x faster than the general market
• Will account for 46 of population growth from
  2000-2020
• Grows by 1 MM persons each year!
• Latino population is highly concentrated
• 50 live in California Texas alone!
• Urban areas

3
The Perfect Market

• Getting Younger
• Latino Baby Boom 20 of all births
• 20 of all teenagers
• Hispanic teens will grow 62 by 2020
• Overall teen population will grow by only 10
• In 2000, 35 of all Hispanics were under 18
• 50 are under 34!
• Median age for Hispanics (25.9) is almost 10
  years younger than that of the overall population
  (35.3)

4
The Perfect Market

• HH Income
• Median Income still lags behind U.S. average
• 34,670 versus 43,570 in 2000
• Source Synovate
• US-born Latinos are faring better than
  foreign-born
• In 1998, 42 US-born Hispanic HHs had reached
  the middle class vs. 60 of Non-Hispanic Whites
• Source Thomas Rivera Institute, 2000
• The percentage of Hispanic Households earning
  50K is expected to increase 50 by 2005

5
The Perfect Market

• Buying Power
• Hispanic buying power has been growing twice as
  fast
• From 1990-2009, Hispanic buying power has grown
  at a compound annual rate of 8.2 vs. 4.9 for
  non-Hispanics
• Since 1990 Hispanic buying power has grown 347
• Will reach 992 Billion by 2009
• Will account for 9 of the nations total, up
  from 5.2 in 1990
• Source Selig Center for Economic Growth

6
The Perfect Market

• Hispanics are not a race, they are an ethnicity
• New Multicultural Mainstream
• In 2000, 83 MM minorities spread across the
  country
• Each minority has concentrations in different
  urban areas
• Combined buying power of racial minorities has
  increased 242 since 1990 (Black, Asian and
  Native American)
• Will reach more than 1.5 Trillion by 2009
• Account for 14.1 of the nations total buying
  power
• African Americans will account for 62 or 965
  Billion
• By 2050, fifty percent of the US population will
  belong to a racial or ethnic minority

7
Media Habits

• Latinos are heavy media consumers
• Watch more TV than any other group
• 57 hours vs. 53 hours a week
• Univision dominates in Spanish (80 share)
• Most watched English-language channels
• Discovery, UPN, Fox, WB, ESPN
• Majority consume media in both languages
• 53 read Spanish-language magazines
• 63 read English-language magazines

8
10 mistakes you should avoid

• 1. Do not make assumptions
• One size does NOT fit all
• Minorities represent 23 of total population
• How do you define your target market
• Celebrity Magazine example
• Target women 35-55
• Define celebrity Univision vs. mainstream
• Define gossip Hola vs. People
• Jeans manufacturer example
• Translations dont work
• vuele en cueros campaign

9
10 mistakes you should avoid

• 2. Dont launch a product with out doing your own
  research
• Chevy Nova example
• No va it doesnt work!
• Limited research exists on Hispanic market
• Question reliability of what does exist
• How were the Hispanic panels defined
• Language preference, HHI, location, length of
  residence
• Cultural prejudice or ignorance
• We are different in many ways Family values
• Over-index Groceries, Fast Food, Clothing, Cars,
  Travel

10
10 mistakes you should avoid

• 3. Dont enter the market without making a
  commitment
• If not, you will FAIL!
• Dont test the waters
• Hispanic market is larger than Canada!
• Give your project enough Time and Money
• Long term growth vs. short term gain
• Hispanic consumer market is fastest growing
• 1MM new consumers a year!
• TV Guide en español example

11
10 mistakes you should avoid

• 4. Dont forget to get your message out
• Dont make assumptions about what people know
• All product launches must be treated as new
• Do a Public relations campaign
• Hire a Hispanic media expert
• Give your launch enough time to create a buzz
• Hire a Hispanic Agency
• To develop appropriate new creative
• Media Planning and buying
• Dont forget alternative media and grassroots
  marketing
• Latin Pak, Carmens Cupones, Mobile marketing

12
10 mistakes you should avoid

• 5. Dont dilute your brand
• Brands have a life of their own
• Does your brand have equity in the U.S. Hispanic
  market?
• Dont experiment with your brand
• Lack of knowledge and respect for this market
• Brand aliases in Latin America?
• Pampers in US Dot Dot in Spain
• Global economy global brands
• Latin American brand may be better than en
  español
• Latin consumers are loyal but not stupid

13
10 mistakes you should avoid

• 6. Dont be fooled by a surname
• Hire a real Hispanic expert
• The professional Latino vs. the Latino
  professional
• Does s/he have the right experience?
• Worked in the US Hispanic market is very
  different than work in Latin America
• Knowledge of Spanish language and culture is
  important
• It can be correct but does it make sense?
• If you cant judge, ask someone who can.

14
10 mistakes you should avoid

• 7. Dont forget to educate management
• Debunking Latin myths and stereotypes
• Get upper management involved early on
• Manage expectations for results
• Create proper metrics for ROI
• Minority projects are held to higher standard
• Understand needs to keep things moving forward
• Educate, Educate, Educate
• Pass along articles, research, etc.
• Get them involved in events, meet the community
• Make them look good

15
10 mistakes you should avoid

• 8. Dont assume Latin projects cost less
• Industry misperception of the reach of general
  market
• 1 TV/radio stations in NY, LA and Miami are
  Hispanic
• 1999 FCC study 1/General market
• .78 minority format, .71minority- owned
  format
• Market fragmentation works in favor of minorities
• To do the job right, it should cost more!
• Bilingual talent
• You get what you pay for
• TV Guide en español example

16
10 mistakes you should avoid

• 9. Dont treat the market as a quota
• Who is consuming your product?
• If you dont have the right human capital in
  house your sales are likely to be affected.
• Are your communication touch points set up to
  handle needs of your consumers (customer service,
  billing)
• Avoid ghettoizing once you hire minorities
• Tokenism still exists
• Is it a good story/show/product?
• People en español example

17
10 mistakes you should avoid

• 10. Dont assume you know celebrities
• The problem with Hollywood Latinos
• They have little to no recognition in the
  community
• Jimmy Smits / Wilmer Valderrama
• Hispanic TV stars are eager and easy to work with
• The problem with crossover artists
• They loose their Latin appeal unless they stay
  connected to the community Shakira, Ruben
  Blades, Enrique
• The Problem with Spanish language celebrities
• Nobody knows them in the mainstream
• Don Francisco, Myrka de Llanos, El Gordo Molina

18
Market Trends

• Growth of Latinos in non-traditional areas
• Growth of Hispanic population in mid-western
  states 1990 -2000
• State Hispanic Pop. 1990 Hispanic
  Pop. 2000 Increase
• Minnesota 3,884 143,382 166
• Nebraska 36,969 94,425 155
• Iowa 32,647 82,473 153
• Indiana 98,788 214,536 117
• South Dakota 5,252 10,903 108
• Wisconsin 93,194 192,921 107
• Kansas 93,670 188,252 101
• Missouri 61,702 118,592 92
• Illinois 904,446
  1,530,262 69
• North Dakota 4,665 7,786 67
• Michigan 201,596
  323,877 61
• Ohio 139,696 217,123 55
• Source U.S. Census Bureau, Forecast Analysis
  American Demographics FORECAST, April 21, 2001.

19
Market Trends

• Growth of Latinos in non-traditional areas
• Immigration is easier in non-traditional areas
• Clusters of people from same family/region
• New Yorks Mexican population (Puebla)
• States with Manufacturing, Farming, Service
  Industries
• Jobs that dont require much English competency
• Increase in immigration from unstable Latin
  American countries
• Wealthy, educated Hispanics in larger urban areas
• Miami, New York, LA, San Francisco
• Ripple effect Central South Americans
• Service industries Nannys, maids, etc.

20
Market Trends

• Corporate America wakes up!
• Demand for ways to efficiently reach (make )
  from the Hispanic consumer
• Todays market leaders may not stay on top
• From 2000- 2004 advertising directed to Latinos
  in the U.S. grew 87 from 658MM to 1.23B
• Need to create advertising in both English
  Spanish
• Increased development of English-language media
  vehicles
• Reaching Acculturated Hispanics will be key

21
Market Trends

• Media revolution
• General market acquisitions of Spanish-language
  media will revolutionize the Hispanic market
• NBC acquires Telemundo in 2002
• Sale of Univision?
• Need for a Latin TV hit (a la Cosby)
• Cable may lead the way
• Brothers Garcia, Dora the Explorer - Nickelodeon
• SiTV launches in 2004

22
Market Trends

• Media fragmentation
• Basics will not change
• 18-34 key demographic
• Demo will be more Hispanics than ever before!
• Niche marketing will rule!
• Need to develop integrated marketing tools
• The comeback kid the Internet
• The growing importance of consumer control
• Broadband, satellite, telephone