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The Younger, Hipper Hispanic

The younger, hipper Hispanic target is most likely native-born in the US and differs greatly in their consumer behavior from older/immigrant Hispanics – they speak English fluently and tend to be familiar with main-stream American culture and have similar buying habits to whites, AA and other non-Hispanics.

The Younger, Hipper Hispanic

The Younger, Hipper Hispanic

Young blacks and Hispanic college graduates are reviving cities.  They live in funky row houses and apartments in old neighborhoods that have been spruced up.  They’re part of the ‘Bohemian Mix,’ a cluster that has a substantial percentage of blacks and Hispanics.  It’s the most affluent of the racially and ethnically diverse groups.  Bohemians socialize across racial lines, jog, shop at Banana Republic, read Vanity Fair, watch Friends and drive Audis.

Of note regarding youth in general: “Youth Digerati” (as opposed to the old nickname “Youth Literati”), an ethnically mixed group, is the most affluent urban cluster.  Young Digerati tend to live in fashionable neighborhoods and are now more affluent than “Money & Brains” – older professional couples who have few children and own homes in upscale city neighborhoods.
Source: TIA

Publix tries to appeal to Hispanic market in Georgia

Hispanic buying power in Georgia has grown by 1037% since 1990, No wonder Publix tries to appeal to Hispanic market in Georgia!

Norcross store gets makeover with focus on items from Mexico

“Do you have the sombrero? Has it arrived yet?”

It’s not the kind of question a grocery store manager overseeing the final details of a renovation would normally expect from a contractor. But for Marco Guillen, it’s just all in a day’s work.

Guillen is the point man on Publix Super Markets newest experiment — the first store outside of the company’s home turf in Florida designed to appeal to Hispanic shoppers.

The store, located in a heavily Hispanic neighborhood that Census records show is predominantly Mexican in origin, features bilingual signs and shelves stocked with more than 1,500 new Mexican and Central American items brought into the store in recent months.

Where Hispanic foods were once isolated in a single aisle, they’re now spread throughout the store. Dried guajillo chiles are piled up in a box in the produce section. Jarritos soft drinks take up shelf space near Coke and Pepsi products. Foca powder detergent is near the Tide. Colorful pinatas are scattered throughout.

“We really had to go out and challenge our suppliers to go out and get us items that are traditionally Mexican. Not Mexican-American, but Mexican,” said the company’s Atlanta spokeswoman, Brenda Reid.

The store also features a salsa bar, deli items meant to appeal to the Hispanic palate and an expanded number of Western Union terminals, popular with Hispanic immigrants sending money home. About half of its employees are bilingual, recruited from Publix stores all over metro Atlanta, Reid said.

The store has been slowly rolling out the changes for months. It formally debuts Thursday with a grand opening featuring a mariachi band and other festivities.

The effort is rooted in rising Hispanic buying power and increasing competition from ethnic groceries that cater to the fast-growing Hispanic and Asian communities, Reid said.

Hispanic buying power in Georgia has grown by 1037 percent since 1990, outstripping the 194 percent growth for the overall market by more than five times, according to the Selig Center for Economic Growth at the University of Georgia.

Hispanics now account for 5.1 percent of Georgia’s buying power and are projected to outpace the growth by all other ethnic groups, according to the center.

A spokesman for Kroger, metro Atlanta’s leading grocer, said his company hasn’t explicity labeled any one store to appeal to a specific demographic. But Glynn Jenkins said the company adjusts each store’s product mix to appeal to local tastes.

Publix tries to appeal to Hispanic market in Georgia

Guillen said the changes at his store have gone over well with both Hispanic and non-Hispanic customers. The store’s bright new color palette and the fact that the store only eliminated a handful of unpopular items to make way for its new Hispanic product mix continues to bring in customers of all stripes, he said.

Source: The Atlanta Journal-Constitution – Michael Pearson

Today’s Hispanic Consumer

When targeting the multicultural market, race and ethnicity are becoming less important than education, income, home ownership, age and lifestyles.  Hispanics, African-Americans and Asian-Americans are moving to middle-class suburbs and prosperous neighborhoods, and are identified more by their lifestyles and spending habits than by their ancestry.

Today's Hispanic Consumer - Hispanic Marketing Basics

Today’s Hispanic Consumer – Hispanic Marketing Basics

The composition of the Hispanic population is shifting.  Hispanics now account for 13.7% of the total population.  The “new dynamics” of the Hispanic market hinge on the emerging second and third generations, native- and foreign-born differences, and broad geographic growth.

According to a Census Bureau report released in June 2004, an estimated 39.8 million Latinos live in the U.S., an increase of almost 13% since the 2000 Census. It projects Hispanics will increase their ranks by 188% to 102.6 million—or roughly one-quarter of the population—by 2050.  Hispanics will count for nearly one out of every five U.S. residents by 2012 if current growth rates continue.

The Hispanic Consumer now constitutes the largest minority group in the United States, according to the U.S. Census Bureau, comprising 13 percent of the population, or 39 million people. Moreover, their buying power has nearly tripled, from $222 billion in 1990 to $653 billion in 2003, according to a University of Georgia report.

The spending power of the U.S. Hispanic Consumer is also increasing.  The median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001, while the median for all U.S. households climbed just 6 percent.

“Whether a Latino household wants to buy a lawn mower has less to do with their ethnicity than if they happen to be homeowners,” says Michael Mancini of Claritas. The two great forces, age and diversity, have rendered the traditional marketing categories irrelevant in many cases.

One of the most common mistakes advertising executives make when marketing to a Hispanic consumer is assuming that the U.S. Hispanic population is homogeneous.
Source: TIA

Watch Out! Hispanics Rate Products Significantly Higher

I find it interesting that some market research agencies recently discovered what Hispanic marketers have known for quite some time. Give Hispanics a product to be rated, and you will get much better marks than with non-Hispanics. Ask them to tell you what is wrong with it, and you may end up getting a list longer than a mile! That is the reason many good Hispanic Market research specialists will add open-ended questions to help qualify the close-ended ones or take different approaches to research altogether.

Why the contradiction? It’s in the culture. Read more about it in the following article:

Results Could Have a Significant Effect on the Products Targeted to Hispanics in the Future.

Hispanics, especially those who are more recent arrivals, give higher ratings in product surveys than their non-Hispanic counterparts, according to a study designed by Jeffry Savitz, President of Savitz Research Companies and Professor of Marketing Research at the University of North Texas. The study found that Hispanics rate products significantly higher than what they may actually feel. In the study, Hispanics and non-Hispanics were asked to assign a numeric value to five rating labels using a scale of 0-100 with 100 being the best. The rating labels, “Excellent,” “Very good,” “Good,” “Neither Good nor Poor” and “Poor” are common in survey research. Hispanics consistently gave higher marks than their non-Hispanic counterparts to each label except “poor.” The average difference was 5.9 making it statistically significant.

In this landmark study, Professor Jeffry Savitz a graduate of Columbia University, found that Hispanics rated Tylenol 85.7, significantly higher than non-Hispanics at 80.6 implying Hispanics favor the brand. However, after the adjustment of 5.9 points, the ratings were at parity. Among cellular providers, ratings of Verizon, 65.4 and 68.1, were similar. After the adjustment was applied, however, the ratings indicated that Hispanics do not like this provider nearly as much, 59.5 versus 68.1. In the soft drink category, Hispanics rated Fanta 80.0 versus non-Hispanics at 57.6, a highly significant difference. Even after the adjustment the result was still significant implying Hispanics are more favorable toward Fanta.

Hispanics Rate Products Significantly Higher than non-Hispanics

The results of the study have significant implications on multicultural advertising and marketing as well as which products and services should be offered to Hispanics. “This study finally sheds light on the reason some Hispanic research ends up with faulty conclusions or results. This ‘cultural lift’ must be taken into account,” says Juan Faura, author of two books on Hispanic marketing. “Hispanics are taught from an early age that it is in poor taste or inappropriate to openly criticize or berate when asked their opinions.” Savitz says, “The article discusses levels of acculturation, consumption of Hispanic media and country of origin, but more research is needed to measure the effect of the ‘cultural lift’ on various categories and other factors.”

Uncovered Facts About Online Hispanic Women and their Media Usage
72 percent of Hispanics use their mobile devices for overall movie planning | Hispanic mobile Consumers Study
Estimates of the Unauthorized Immigrant Population 2010 - Pew Hispanic
Elianne Ramos is the principal and CEO of Speak Hispanic Communications and vice-chair of Communications and PR for LATISM.
Do you know about people from Ecuador?

Source: Savitz Research Companies

The Younger, Hipper Hispanic

The younger, hipper Hispanic target is most likely native-born in the US and differs greatly in their consumer behavior from older/immigrant Hispanics – they speak English fluently and tend to be familiar with main-stream American culture and have similar buying habits to whites, AA and other non-Hispanics.

The Younger, Hipper Hispanic

The Younger, Hipper Hispanic

Young blacks and Hispanic college graduates are reviving cities.  They live in funky row houses and apartments in old neighborhoods that have been spruced up.  They’re part of the ‘Bohemian Mix,’ a cluster that has a substantial percentage of blacks and Hispanics.  It’s the most affluent of the racially and ethnically diverse groups.  Bohemians socialize across racial lines, jog, shop at Banana Republic, read Vanity Fair, watch Friends and drive Audis.

Of note regarding youth in general: “Youth Digerati” (as opposed to the old nickname “Youth Literati”), an ethnically mixed group, is the most affluent urban cluster.  Young Digerati tend to live in fashionable neighborhoods and are now more affluent than “Money & Brains” – older professional couples who have few children and own homes in upscale city neighborhoods.
Source: TIA

Publix tries to appeal to Hispanic market in Georgia

Hispanic buying power in Georgia has grown by 1037% since 1990, No wonder Publix tries to appeal to Hispanic market in Georgia!

Norcross store gets makeover with focus on items from Mexico

“Do you have the sombrero? Has it arrived yet?”

It’s not the kind of question a grocery store manager overseeing the final details of a renovation would normally expect from a contractor. But for Marco Guillen, it’s just all in a day’s work.

Guillen is the point man on Publix Super Markets newest experiment — the first store outside of the company’s home turf in Florida designed to appeal to Hispanic shoppers.

The store, located in a heavily Hispanic neighborhood that Census records show is predominantly Mexican in origin, features bilingual signs and shelves stocked with more than 1,500 new Mexican and Central American items brought into the store in recent months.

Where Hispanic foods were once isolated in a single aisle, they’re now spread throughout the store. Dried guajillo chiles are piled up in a box in the produce section. Jarritos soft drinks take up shelf space near Coke and Pepsi products. Foca powder detergent is near the Tide. Colorful pinatas are scattered throughout.

“We really had to go out and challenge our suppliers to go out and get us items that are traditionally Mexican. Not Mexican-American, but Mexican,” said the company’s Atlanta spokeswoman, Brenda Reid.

The store also features a salsa bar, deli items meant to appeal to the Hispanic palate and an expanded number of Western Union terminals, popular with Hispanic immigrants sending money home. About half of its employees are bilingual, recruited from Publix stores all over metro Atlanta, Reid said.

The store has been slowly rolling out the changes for months. It formally debuts Thursday with a grand opening featuring a mariachi band and other festivities.

The effort is rooted in rising Hispanic buying power and increasing competition from ethnic groceries that cater to the fast-growing Hispanic and Asian communities, Reid said.

Hispanic buying power in Georgia has grown by 1037 percent since 1990, outstripping the 194 percent growth for the overall market by more than five times, according to the Selig Center for Economic Growth at the University of Georgia.

Hispanics now account for 5.1 percent of Georgia’s buying power and are projected to outpace the growth by all other ethnic groups, according to the center.

A spokesman for Kroger, metro Atlanta’s leading grocer, said his company hasn’t explicity labeled any one store to appeal to a specific demographic. But Glynn Jenkins said the company adjusts each store’s product mix to appeal to local tastes.

Publix tries to appeal to Hispanic market in Georgia

Guillen said the changes at his store have gone over well with both Hispanic and non-Hispanic customers. The store’s bright new color palette and the fact that the store only eliminated a handful of unpopular items to make way for its new Hispanic product mix continues to bring in customers of all stripes, he said.

Source: The Atlanta Journal-Constitution – Michael Pearson

Today’s Hispanic Consumer

When targeting the multicultural market, race and ethnicity are becoming less important than education, income, home ownership, age and lifestyles.  Hispanics, African-Americans and Asian-Americans are moving to middle-class suburbs and prosperous neighborhoods, and are identified more by their lifestyles and spending habits than by their ancestry.

Today's Hispanic Consumer - Hispanic Marketing Basics

Today’s Hispanic Consumer – Hispanic Marketing Basics

The composition of the Hispanic population is shifting.  Hispanics now account for 13.7% of the total population.  The “new dynamics” of the Hispanic market hinge on the emerging second and third generations, native- and foreign-born differences, and broad geographic growth.

According to a Census Bureau report released in June 2004, an estimated 39.8 million Latinos live in the U.S., an increase of almost 13% since the 2000 Census. It projects Hispanics will increase their ranks by 188% to 102.6 million—or roughly one-quarter of the population—by 2050.  Hispanics will count for nearly one out of every five U.S. residents by 2012 if current growth rates continue.

The Hispanic Consumer now constitutes the largest minority group in the United States, according to the U.S. Census Bureau, comprising 13 percent of the population, or 39 million people. Moreover, their buying power has nearly tripled, from $222 billion in 1990 to $653 billion in 2003, according to a University of Georgia report.

The spending power of the U.S. Hispanic Consumer is also increasing.  The median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001, while the median for all U.S. households climbed just 6 percent.

“Whether a Latino household wants to buy a lawn mower has less to do with their ethnicity than if they happen to be homeowners,” says Michael Mancini of Claritas. The two great forces, age and diversity, have rendered the traditional marketing categories irrelevant in many cases.

One of the most common mistakes advertising executives make when marketing to a Hispanic consumer is assuming that the U.S. Hispanic population is homogeneous.
Source: TIA

Watch Out! Hispanics Rate Products Significantly Higher

I find it interesting that some market research agencies recently discovered what Hispanic marketers have known for quite some time. Give Hispanics a product to be rated, and you will get much better marks than with non-Hispanics. Ask them to tell you what is wrong with it, and you may end up getting a list longer than a mile! That is the reason many good Hispanic Market research specialists will add open-ended questions to help qualify the close-ended ones or take different approaches to research altogether.

Why the contradiction? It’s in the culture. Read more about it in the following article:

Results Could Have a Significant Effect on the Products Targeted to Hispanics in the Future.

Hispanics, especially those who are more recent arrivals, give higher ratings in product surveys than their non-Hispanic counterparts, according to a study designed by Jeffry Savitz, President of Savitz Research Companies and Professor of Marketing Research at the University of North Texas. The study found that Hispanics rate products significantly higher than what they may actually feel. In the study, Hispanics and non-Hispanics were asked to assign a numeric value to five rating labels using a scale of 0-100 with 100 being the best. The rating labels, “Excellent,” “Very good,” “Good,” “Neither Good nor Poor” and “Poor” are common in survey research. Hispanics consistently gave higher marks than their non-Hispanic counterparts to each label except “poor.” The average difference was 5.9 making it statistically significant.

In this landmark study, Professor Jeffry Savitz a graduate of Columbia University, found that Hispanics rated Tylenol 85.7, significantly higher than non-Hispanics at 80.6 implying Hispanics favor the brand. However, after the adjustment of 5.9 points, the ratings were at parity. Among cellular providers, ratings of Verizon, 65.4 and 68.1, were similar. After the adjustment was applied, however, the ratings indicated that Hispanics do not like this provider nearly as much, 59.5 versus 68.1. In the soft drink category, Hispanics rated Fanta 80.0 versus non-Hispanics at 57.6, a highly significant difference. Even after the adjustment the result was still significant implying Hispanics are more favorable toward Fanta.

Hispanics Rate Products Significantly Higher than non-Hispanics

The results of the study have significant implications on multicultural advertising and marketing as well as which products and services should be offered to Hispanics. “This study finally sheds light on the reason some Hispanic research ends up with faulty conclusions or results. This ‘cultural lift’ must be taken into account,” says Juan Faura, author of two books on Hispanic marketing. “Hispanics are taught from an early age that it is in poor taste or inappropriate to openly criticize or berate when asked their opinions.” Savitz says, “The article discusses levels of acculturation, consumption of Hispanic media and country of origin, but more research is needed to measure the effect of the ‘cultural lift’ on various categories and other factors.”

Uncovered Facts About Online Hispanic Women and their Media Usage
72 percent of Hispanics use their mobile devices for overall movie planning | Hispanic mobile Consumers Study
Estimates of the Unauthorized Immigrant Population 2010 - Pew Hispanic
Elianne Ramos is the principal and CEO of Speak Hispanic Communications and vice-chair of Communications and PR for LATISM.
Do you know about people from Ecuador?

Source: Savitz Research Companies

Emerging U.S. Hispanic Market Brimming with Opportunity

The rapid expansion of Hispanics into American suburbs presents sizable opportunities for marketers who understand the rich cultural diversity and purchasing attitudes of this segment, according to the latest Consumer Dynamics study from Acxiom® Corporation.

The study, titled “Getting Into the Market Share Race With the Emerging Hispburbanite Market,” taps into the explosive growth centered in 10 markets.

Emerging U.S. Hispanic Market:

  • Charlotte, NC
  • Nashville-Davidson, TN
  • Raleigh, NC
  • Memphis, TN
  • Greensboro, NC
  • Little Rock, AR
  • Indianapolis, IN
  • Birmingham, AL
  • Minneapolis, MN
  • Aurora, CO

The study reveals:

  • Hispanic suburban expansion is projected to continue.
  • The Hispanic market encompasses four distinct Hispburbanite groups.
  • Marketers have above average growth opportunities in areas with high concentrations of Hispanics.
  • Marketers should segment this culturally diverse group for maximum marketing impact.

The study shows Hispburbanites differ from Hispanics living in the main port-of-entry cities of New York, Los Angeles and Miami as they tend to be younger, more acculturated, single and wealthier. They tend to fall into four distinct groups:

  • Upstarts and Upbringing – Made up of some of the younger Hispanic households, this is the most acculturated of all groups. They primarily speak English away from home and are a mix of singles and recently married couples, some with young children.
  • Trendy Traditions – A somewhat younger mix, this group is mostly single and childless. Though slightly less acculturated than Upstarts and Upbringing, this group prefers American name brands and brand-name bargains.
  • Recent Arrivals –The least acculturated of all groups, these households more frequently comprise immigrants who have resided less than 10 years in the United States. They prefer to speak Spanish at home and away, and are primarily single renters with low to middle incomes.
  • White Picket Fences – A married and single mix of adults with above-average income makes up this group. Often owning their own homes, these households are more comfortable with financial institutions than other groups and are building net worth. This group is primarily English speaking and while they do save, their incomes allow for plentiful shopping, especially for jewelry and business clothing.

Overall, Hispburbanites tend to be mostly second- and third-generation Hispanics with increasing consumer buying power. “This market represents tremendous opportunity for companies across industries,” said the Acxiom’s senior manager for analytic, geospatial and segmentation products. “Segmentation allows marketers to target initiatives that encompass cultural preferences based on the characteristics of the defined consumer groups.

“Intelligent marketing decisions will maximize results, greatly improving return on marketing dollars spent,”  he added. “At a time when marketers are under intense scrutiny to produce measurable results, this study provides invaluable consumer insights.”

Source: Acxiom