How Companies can Increase Market Share in This Tough Economy

Feb 28, 12 How Companies can Increase Market Share in This Tough Economy

Posted by in CPG

By Keri Shane, Convergent Marketing Manager The best marketers are those who are able to change and adapt their marketing strategy to current consumer demands. Research has shown that the multicultural market has grown enormously over the past 10 years and will continue to grow in the future. In many major DMA’s, multicultural segments have already surpassed the general market. If companies want to succeed today and in the future, marketers should consider broadening their target market to include the multicultural segments. For example, Hormel’s Herdez product line enjoyed over 70% of the market share with its multiple SKUs South-of-the-Border. Hormel wanted to expand the Herdez line of authentic Mexican food products across the border into the U.S., targeting markets in Los Angeles, Dallas, San Francisco, Houston, and Phoenix. Hormel created a culturally relevant brand platform Herdez, Hechos Con Amor (Herdez, Made With Love) giving new life to the brand’s longtime slogan. The new message created an instant association between Herdez products and the Mexican-American consumer’s affection and passion for authentic food. The campaign ultimately generated a 22% sales increase and increased brand awareness by 500%. Inability to adapt – Using a GM Agency to target Multicultural Brands General MarCom agencies, who try to create multicultural messaging, are not as familiar with the lifestyles and cultural differences to effectively communicate inside the multicultural market. Most will simply translate the general market message, causing it to be “Lost in Translation” to multicultural markets. Companies need a multicultural agency on their team that will understand the cultural nuances in translating brand messages. For example, Royal Prestige, luxury cookware products, owned by Hy Cite Corporation, needed to reinforce their distributor sales efforts across the West Coast, and create a solid communication infrastructure model to support this notably high Hispanic DMA. Hy Cite Corporation built a web site incorporating the Spanish language featuring a bilingual speaking woman who introduces viewers to Hy Cite and helps navigate throughout the site, effectively opening communication across the West Coast Hispanic audience...

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ECHO Incorporated Enlists The San Jose Network Ltd. for Brand Building in Latin America

Feb 22, 12 ECHO Incorporated Enlists The San Jose Network Ltd. for Brand Building in Latin America

Posted by in Latin America

ECHO Incorporated has appointed The San Jose Network, Ltd. (SJN) as their agency of record for the Latin American market. SJN was selected for its in-depth knowledge of the U.S. multicultural and Latin-American consumers, in-country channel expertise and its ability to manage an entire scope of marketing communications services from its central location. As a leading manufacturer of professional-grade, high-performance outdoor power equipment for professional and residential use, ECHO Incorporated markets its products under the brand names ECHO, Shindaiwa and ECHO Bear Cat. SJN’s assignment will begin with an extensive brand development exercise of ECHO and Shindaiwa for equity building in Latin America. SJN will develop strategies and insights aiming to improve brand positioning and differentiation, and will look to develop digital assets utilizing new media channels. The group will also provide direction and structure for centralized quality control of a communication platform that will be easily accessed by distributors across 18 Latin American markets. “This is a great opportunity to do work with a company that has set the standard in the landscaping industry, both on the consumer and professional side,” said George L. San Jose, chairman and founder of SJN. “While ECHO has already been successful in generating a presence around the world, we believe this centralized yet locally infused approach will provide greater efficiencies to make the brands stronger and realize their full sales potential in Latin America.” About ECHO For the past 30 years, Echo Incorporated has been a worldwide leader in the development and manufacture of professional-grade, high-performance outdoor power equipment for professional and residential use. Echo prides itself on setting the industry standard with its dedication to new technology, quality products and its strong distribution infrastructure. From establishing technological advancements in premium tools for landscaping and arborist professionals, to expanding its capabilities to meet industrial and consumer demand, Echo has had a heritage rich with accomplishment. About The San Jose Network The San Jose Network, Ltd. (SJN) is the largest independent communications agency network, spearheaded by The San Jose...

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Online Shopping Trends among Latinos

By Tony D’Andrea, PhD – Director of Planning and Research SJG It’s no news that Hispanics are matching and even exceeding the rest of the nation in terms of online engagement. But what is surprising is that they join the Internet at a rate four times faster than the national average. Forty million Latinos will be actively online by the mid 2010s. In fact, 86% of Latinos already have broadband connection at home, and 78% use the Internet as a primary source of information, according to recent research by Google. They read, share and download online content at high levels: 64% watch online videos compared to 50% of the general market. As the youngest ethnic group in America (age 27 versus 37 as the national average), Latinos are rapidly embracing digital media for shopping and entertainment. As a news source, the Internet is already pulling them away from print. About half claim to be watching online news more regularly than in the previous year, even as TV remains the most important news source, followed by radio. According to the Interactive Advertising Bureau, the large majority of Latinos (about 60%) say that the Internet is their first source of information for shopping. These findings are repeated study after study, and show that the “digital divide” between high- and low-income Latinos is rapidly shrinking. Latinos are open to online advertising, particularly Spanish-speaking consumer. 51% of foreign-born Latinos click on ads compared to 41% among English-dominant Hispanics. Moreover, Hispanics are more predisposed to buy a product following an online ad; in fact 22% more likely than the general market, according to studies by Google. Language seems to underlie an important factor driving this behavior choice, as many feel more comfortable using English online rather than over the phone with a customer service representative. While 75% of Latinos are bilingual, only a quarter prefer English over Spanish. Finally, it must be considered that, because the Hispanic media space online is significantly smaller and less congested than the general...

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Goal! Connecting Brands with Hispanics via Sport Sponsorships

Tony D’Andrea, PhD – Director of Research and Planning – The San Jose Group Whenever Latinos gather for a TV party, chances are they are watching a soccer game or a fight (boxing, wrestling or mixed-martial arts). If their background is Caribbean, then they may be up for baseball. As Nielsen ratings demonstrate year after year, three out of the top seven Spanish cable TV channels are sports-only: Fox Deportes, ESPN Deportes and Gol TV, besides Univision’s Galavisión which dedicates a good chunk of its time for sports events. Mexican, European and MLS soccer league games rule on Spanish cable TV, whereas other sports (boxing, MLB, NBA, NFL) are predominantly watched on mainstream TV. It is not just about the convenience of TV. Borrowing from an old homeland tradition, Latinos also glue their ears to the radio to listen to a World Cup match, and are growingly following sports on digital media as well. Sports provide a powerful way for brands to connect with Hispanics, particularly the male population. In any specialized poll, over 90% of Hispanics are sports fans compared to less than 80% of the general population. Yet, what is striking is the passion that Latino males demonstrate toward sports. While half of Hispanic males claim to be “avid fans,” around a fifth are “superfanáticos,” meaning, these are the ones who are regularly playing, watching, and consuming a sport of some kind. An emerging trend among Hispanics is mixed-martial arts (MMA). Fox Sports and UFC have recently announced the broadcasting of MMA fights across 18 Latin American countries. Its growing popularity is not surprising, as recent history indicates. In 2008 AT&T tapped into this relationship and hired Lopez family Olympic Tae-Kwon-Do champions to appear in TV commercials. While resonating with Mexican wrestling tradition’s of boastful competitiveness, MMA actually is a 1960s Brazilian invention. World-renown Gracie family used to promote bear-hand “anything goes” contests to prove the superiority of Jiu-Jitsu, now an almost mandatory modality among octagon gladiators. Leveraging MMA fighters to endorse...

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Multicultural Entrepreneurs: Business Growth and Needs among Hispanics and African Americans

By Tony D’Andrea, PhD – Director of Planning and Research SJG Hispanics and African Americans are increasingly interested in brands delivering on convenience, efficiency and security. This is a reflection of an entrepreneurial boom of business and career development being currently seen among multicultural segments. In fact, the number of minority-owned businesses has been growing twice as fast as the national average. Based on U.S. Census Bureau data, we can conservatively estimate that 2.8 million Hispanics and 2.4 African Americans now own and run business firms, and this trend is likely to continue. While media attention goes to multinational investments and high-tech startups, the fact is that minority-owned businesses now register half-a-trillion dollars in annual revenue. Over 90% of these firms are sole-proprietorships established by professionals who fled the corporate ladder or by technical workers providing services as freelance contractors. Still, the remainder employs over 3 million people, as culmination of a 20% increase in job creation over five years against a near flat national average measured by the U.S. Census Bureau. Reflecting clusters of opportunity and skill culled over time, multicultural entrepreneurs gravitate towards certain industries. Half of all Hispanic-owned businesses operate in construction, repair services, healthcare, and transportation/warehouse. Similarly, half of all African-American-owned firms concentrate in healthcare (a significant fifth of all Black firms), repair services, transportation/warehouse, and technical services. They are mostly located in larger cities and metropolitan areas, in line with the demographic footprint of Hispanics and African American segments which now amass a 2.5 trillion dollar consumer purchasing power. This means new opportunities for marketers catering to small businesses, their managers, owners and families. Hispanics and African Americans are consuming more products and services that help them cope with ever busier lifestyles. They are looking for products that are more convenient, save time, and contribute to a sense of wellbeing and comfort that assuages their stressful schedules. Although marketing of brands for mid-to-high-income, highly-acculturated segments often follows general market approaches, it is also the case that culturally-sensitive marketing, along...

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