Going Beyond Spend: A New Way of Looking At Best-In-Class Hispanic Marketers

We are a society that is fascinated by lists. From Letterman’s “Top Ten” to the Fortune 500, it seems that any time information is presented in list form, we find it easier to digest. Of course, the Hispanic marketing industry is no different. Compliments of AdAge, we have our annual “Hispanic Fact Pack,” which includes the “Top Advertisers In Hispanic Media” – a who’s who of big spenders in Spanish-language media. An initial review of the list reveals the names of some heavy hitters in the marketing world: P&G, AT&T, McDonald’s – many organizations that are indeed highly sophisticated marketing machines. After reviewing the list, we at the San Jose Group began to wonder: does top spender mean best spender? While big advertising budgets are certainly a luxury that can allow an organization to do more advertising, does it necessarily mean that these organizations do the best job of reaching and connecting with the Hispanic consumer? To address our curiosity, we have created our own “Best-In-Class” model, looking at factors beyond overall advertising spend. We identified the following three key areas that guided our thinking: commitment to the Hispanic consumer, effective use of multiple consumer touchpoints and what we refer to as going above and beyond marketing efforts. Below is a further break-out of factors we took into consideration. Commitment of Spend We decided that share of total marketing spend is a more indicative measurement of commitment than gross marketing spend. Commitment Percent of Spend: We decided that share of total marketing spend is a more indicative measurement of commitment than gross marketing spend. Internal Commitment to Multiculturalism: We evaluated how open and deliberate organizations are about including the Hispanic voice at multiple points in their organization, from management to policies and practices. Multiple Consumer Touchpoints Event Sponsorship Footprint: After all, advertising is a great way to communicate, but is the brand really connecting with the consumer? Dedicated Spanish Customer Service: One of the most frustrating experiences for many Hispanic consumers is to be lured in by an ad in...

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What Economic Crisis? A Glimpse of Economic Hope from the Hispanic Consumer

Can you think of the last time that you turned on the news and didn’t hear a mention of the “economic crisis”? It’s certainly been a while. You can imagine our excitement when we heard about a company that was having tremendous success in this difficult economic environment – driven predominantly by the Hispanic consumer. We contacted Chris Hartmann of Midway Importing, a Houston-based company founded 20-odd years ago. They have found a successful niche in importing brands that are popular in Latin America and marketing them to the U.S. Hispanic consumer through distribution deals and brand development. Midway Importing has reached licensing agreements to import health and beauty care products with numerous multinational companies, including Bristol-Myers and GlaxoSmithKline. Remarkably, Midway Importing is projecting 15% growth this year! Below are some of the key factors and observations that Chris noted are helping to drive this growth. “The Hispanic consumer is very resilient” –Chris believes that the following factors help fuel this resilience: – Less invested in the stock market – Less credit card debt – Fewer mortgages – Less of a new phenomenon – likely experienced economic challenges in Latin America Question to consider: Is the Hispanic consumer exhibiting resilience in spending in your category? If so, what can you do to take advantage of the opportunity to grow with them? “Growth coming from quality products that offer good value” – While this may seem obvious on the surface, I found it to be noteworthy because he conscientiously did not say the lowest priced goods – he deliberately chose the words quality and value. Even more interesting is that the top three retail channels that are driving growth for Midway (Wal-Mart, Target, and CVS) all stand for quality and value, but each one in its own unique way. Question to consider: What type of value does your brand offer the Hispanic consumer? Just as importantly, how do you communicate it? “We have been increasing our ad dollars, as now is a great time to...

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Adelantando – Perspectives on the Hispanic marketing landscape

It’s February and we are all well on our way to keeping our New Year’s resolutions – we are all going to lose weight, exercise more and quit smoking. We’ll look fantastic by the end of the year! But what can we do to make sure that our beloved Hispanic marketing world looks as great as all of us at the end of the year? Let’s put forward some resolutions! As one of the pioneers in the Hispanic marketing and advertising world, having opened our doors for business more than 27 years ago, we at The San Jose Group have an inspiring mix of experience and talent. Lately, we have had a lot of conversations about the countless changes that have occurred in the Hispanic marketing world and hurdles that need to be overcome for the industry to evolve to the next level. In the spirit of collaboration, we have decided to share our thoughts with the hopes of a beautified, even healthier industry at the end of the year. With no further ado, here is what we propose: 1 – Unearth new insights – In his AdAge article entitled The Problem With ‘Hispanic Insights’, Tommy Thompson provokingly began by saying “All Latinos love music, soccer and food, don’t they? These seem to be the ‘insights’ all marketers have been leveraging into their Hispanic advertising approach for years now.” While this is certainly an oversimplification, there is a bit of truth to it. Let us continue to make the case for Hispanic research dollars, let us continue to encourage industry-wide projects like AHAA’s Latino Identity initiative. Heck, let’s all spend a couple of hours each week away from our desk and on the street. 2 – Commit to more enhanced measurement – According to a study commissioned by Heidrick & Struggles, 84% of marketers that target the multicultural market believe that multicultural marketing is critical to their business. However, almost 40% of respondents said they don’t know the financial value of multicultural groups to...

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