Population statistics notwithstanding, there is a definitive way to gauge the growth of the Hispanic demographic in the United States. ❉ “Here’s the proof: The number-one selling condiment in this country is salsa, not ketchup,” says Dennis Borst, president and COO of Patriot Marketing Group, a promotional products distributorship, who does plenty of business with Hispanic TV and radio stations in Los Angeles. “In L.A. proper, Hispanics are the majority, and therefore Hispanic local TV and radio are all the top-rated shows in L.A. There are 90 radio stations in L.A., and if you look at the ratings book, the top four to five are all Hispanic.”
Los Angeles is a microcosm of the entire United States. Nationally, Hispanics have surpassed African Americans as the largest minority group in the country. Today, 15% of Americans are Hispanic, including 20% of children. America’s Hispanic population is projected to exceed 50 million by 2020, and its buying power stands at $700 billion today with projections reaching $1 trillion by 2010.
“They have a lot of money – more money than the entire country of Mexico, one of the 10 largest economies in the world,” says Dr. Felipe Korzenny, professor and director of the Center for Hispanic Marketing Communication at Florida State University. “Hispanics are not a demographic; they constitute a culture. They are a unique intersection of Spanish heritage due to the dominance of Spanish-speaking countries in Latin America by Spain for over 400 years, plus the very influential Catholic religion, and most obviously, the Spanish language.”
With so many cultural nuances to consider, how can marketers capitalize on this booming market? Here are a few ideas.
Family-Friendly
Since culture and tradition vary from one nation to another, it’s important to find a common ground that can be used to market effectively to every Latino. “Ultimately, the family values play very strong as a common denominator,” says Mark Ziskind, COO of Caliendo Savio Enterprises, a promotional products distributor. “Family is a very, very important value.”
To Hispanics, a $5 or $10 giveaway that could appeal to their children may be seen as more valuable than a higher-end promotional item. Juan Guillermo Tornoe, a Hispanic marketing expert and blogger at HispanicTrending.net, was recently giving a speech at a health club and searched for promotional giveaways on his way out.
“I was walking through the place and looking for stuff for my kids,” he says. “In this case, I saw a thread ball that I knew my kids were going to be playing with like crazy. And I appreciated their brand, and I developed a deeper relationship with them.”
Any product that could be enjoyed by the entire family is a plus in the eyes of Hispanics, according to Tornoe. “Anything that could be useful to more than one person in the family,” he says. “Something useful for my home, not only for me or my office, is going to be a little more relevant.”
Ziskind says inexpensive, family-friendly items like keychains, fashionable hats, wallets, and CD and video game holders for his clients that serve the Hispanic community are selling particularly well. “We really try to appeal to them vs. pander,” he says about the Hispanic demographic.
Mike Juels, founder and president of Juels’ Corporate Images Inc., a promotional products distributor, recently put on a program for a Fortune 500 company that was promoting good nutrition and physical activity within the Latino community. The event was an all-day, free family event, located in a public park in Houston.
“The client utilized a number of promotional items for the event, including balloons, basketballs and a portable basketball system, soccer balls and a soccer goal,” Juels says. “They were demonstrated by Hispanic fitness experts to show how easy it is for a family to stay healthy and active together.”
Juels says the promotional products and the nutritional items provided by the client complemented each other perfectly. “The event was a major success and exposed the large Houston Hispanic community to the client’s products in a fun family-oriented gathering,” he says.
Tornoe says family is so important to Latinos that they often prefer to have their entire family involved in any business transaction. “Talking to their kids, brothers, sisters and in-laws is important,” he says. “Talking specifically about the industry that they’re addressing – if you think of stuff that is valuable for their children specifically – that would be something that’s very attractive for a Latino parent. It’s not about us. It’s about them.”
Get Down in the Trenches
Making us feel that we are addressed as an individual is important,” Tornoe says. “It’s not just business; it’s also getting to know each other. So, if you’re meeting someone in the business environment, get to know each other a little better. Get to know the aspects of their uniqueness as individuals.”
Juels agrees, noting that brand-names aren’t as important as the connection a business makes with the Hispanic community. “Hispanics may not be as easily persuaded to purchase an item just because it is a well-known brand,” he says. “They may be more likely to purchase a product based on a referral from a friend or relative. Therefore, a grassroots approach to marketing may be most effective.
“The easiest way to access the Hispanic market is from within the community. The utilization of cultural marketing can streamline access and acceptance to the Hispanic market. Familiarity leads to success, so if you are breaking into any new market, make yourself known and be available.”
Borst understands the importance to communicate with potential Latino clients by spending time where they like to spend time. “What we have found always works best for marketing and promotion programs are grassroots guerrilla tactics,” he says. “It’s all word of mouth. Wherever they go, they go as a family. It’s amazing when I do these events – I see grandma and grandpa and the brothers and sisters and children. It’s common for them to travel three generations at a time. That’s where you’ve got to get to them.”
In addition to its work with local Latino TV and radio, Patriot Marketing recently launched an auto insurance promotional campaign that was for Hispanics only. “We did the launches not only on radio and TV spots, but we did events at local swap meets, church festivals, parks that have six to eight soccer games going on at one time,” Borst says. “We advertised at a street fair with an ice cream man.”
Borst’s company also built a database that allowed it to send additional promotional giveaways to go with its client literature to convince Hispanics to opt in to the insurance program. “You’ve got to go slow, get to know the people,” he says. “They have to learn to trust you. The people I’ve called on, they really don’t respond to the high-pressure, fast-talking type.
“Relationships are very important. Even with their personal relationships, there has to be a trust factor. You can’t just go in and say, ‘I’ll get it for you cheaper’ and slap them on the back. When they say that promotional products is a relationship business, that’s doubled when it goes to marketing to Hispanics.”
Score A Goal With Soccer
It’s not just the southwestern U.S. that has a booming Hispanic population. Rick Shahum, a Scranton, PA, native, noticed the Latino explosion in his town. “You’re talking about a very sizable market that you don’t want to neglect,” he says.
Shahum is now account manager at Octagon Merchandising, an in-house promo products distributor for Octagon Sports Marketing, a company that was recently named the top sports agency in the world by SportsBusiness Journal.
“It seems to me that the multicultural marketing in general has blossomed in the industry,” Shahum says. “From a business standpoint, they are untapped markets that people are finally taking into consideration. We’re specifically going to them, they now feel appreciated, and I think that’s a positive thing.”
Shahum has taken advantage of the market by creating marketing campaigns around the sport that Latinos most strongly associate with their heritage. “They’re very passionate about soccer,” he says. “That’s what we surround the marketing campaigns on.”
Octagon manages the promotional giveaways for a pair of its clients that are sponsors of the Mexican national soccer team. “We help our clients focus their sponsorship on the Mexican national team and create these products that are useful at the events that helps them resonate their passion for the events, like caps, hats and thundersticks,” Shahum says. “The client felt that leveraging their sponsorship of the Mexican team was an excellent way of reaching the Hispanic demographic. The products used were well received all around.”
Borst has also taken advantage of the Latino soccer craze by giving away mini soccer balls that feature the Mexican national soccer team logo, along with soccer ball-shaped keychains, at swap meets and other community events. Patriot has also advertised with Mexican soccer teams like Club América, “which is like the Yankees or Red Sox of soccer teams in Mexico,” Borst says.
In addition to soccer-related promos, Borst advertises at local soccer matches, where there is always guaranteed to be a heavy Hispanic turnout. “We do a lot of banners around the soccer field,” he says.
Shane Dale is an Arizona-based freelance writer.
