Reaching the Hispanic Market

Reaching the Hispanic Market

Sergio Barrientos Founder & Chief Creative Officer

Matias Perel Founder & CEO

We are the leading Digital Marketing firm for Global Corporations catering to Latinos in the United States and Latin America.

Our History

AGENDA

1.  Introductions 2.  The Opportunity 3.  The Market Complexities 4.  Some Examples 5.  Conclusions

1. Introductions

1. Introductions •  Some laws of Hispanic market

1. Introductions •  Some laws of Hispanic market

1. Introductions •  Some laws of Hispanic market

1. Introductions •  Some laws of Hispanic market

2. The Opportunity

SOURCE: Goldman Sachs, October 23, 2007

The US Hispanic population is growing at impressive rates

299 309 322 336

43 48 54 60

2005 2010 2015 2020

(Millions, 2005-2020)

Hispanic Total

43%

Hispanic Population Growth

  Today, Hispanics already represent 15% of the total US population. From 2005 to 2020, Hispanic population will grow 43% vs. 14% for General Market

Hispanic Population as % of US Total (Hispanic population / US total, millions)

6% 9%

13% 14% 15% 15% 15% 18% 20%

22% 24%

30%

25%

20%

15%

10%

5%

0%

Us Population Hispanics

% Hispanic

1980 1990 2000 2005 2007E 2008E 2010E 2020E 2030E 2040E 2050E 227 249 282 299 303 305 309 336 364 392 420

15 22 36 43 45 47 48 60 73 88 103 6% 9% 13% 14% 15% 15% 15% 18% 20% 22% 24%

43 48 54 60

2. The Opportunity

Percentage - 2007 Hispanic Population by Age Group vs. Total US

47% vs. 35%

Population in Age Group

Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 to 74 75 to 79 80 to 84 85 to 89 90 to 94 95 to 99 100+

10% 8% 6% 4% 2% 2% 4% 6% 8% 10.%

Hispanics Non-Hispanics

The US Hispanic population is young, very young… SOURCE: US Census Bureau Annual Update, 2007

  Almost half of US Hispanics are 25 and under, while half of general US is 40 and older. Actually, 1 out of every 5 teens in the US is Hispanic

2. The Opportunity

Source:(USH-INT) CapturaGroup - Connecting US Hispanic Market online – 2006

The US Hispanic population is holistically wealthy

  Hispanic buying power exceeded that of African Americans in 2003 and is expected to represent 9.6% of the total GNI in the US by the end of 2008

AA 2003 8.4% 2008 8.7%

Hispanic 2003 7.9% 2008 9.6%

White 2003 82.4% 2008 80.3%

Other 2003 1.3% 2008 1.4%

Share of Total US Buying Power 2003 vs. 2008

$212 billion

$490 billion

$1,087 billion

413%

1,100

1,000

900

800

700

600

500

400

300

200

100

0

1990 2000 2010

Bill

ions

of D

olla

rs

2. The Opportunity

The US Hispanic economy is the 9th largest in the world

  US Hispanic buying power is expected to exceed Canada’s – and all of Latin America’s save for Brazil’s - GDP, becoming the 9th largest economy by 2010

Source: Global Insights Inc, 2008

US billions Estimated GDP in 2010

13,109

5,273

2,702 2,418 1,984 1,926 1,545 1,230 1,087 1,002

US Japan Germany China France UK Italy Brazil Hispanic Canada

2. The Opportunity

How Hispanics spend their money

  Hispanics spend 9% more of their funds on food than Non-Hispanics

2. The Opportunity

PC with Internet Access in the Home

2. The Opportunity

PC with Broadband Access in the Home

2. The Opportunity

Hispanics are more likely to download video

2. The Opportunity

2. The Opportunity More likely to download music

More likely to download movies 2. The Opportunity

Hispanics Shop Online 2. The Opportunity

Minutes a month on their mobile Phone

2. The Opportunity

Number of cell calls per Day

2. The Opportunity

Average monthly cell phone bill

2. The Opportunity

Use Text Messaging from a cell phone in last 30 days

2. The Opportunity

Access Internet from a cell phone in last 30 days

2. The Opportunity

Use email from a cell phone in last 30 days

2. The Opportunity

PC with Internet Access in the Home and at Work

2. The Opportunity

But… it is not enough to understand the market opportunity.

To seize it, you need to understand the market complexities.

2. The Opportunity

3. The Market Complexities

Even though we all speak Spanish, there are relevant

differences that can help you to make a relevant difference.

Same magazine issue, different cover

You may reach them, but not connect with them…

Reach, but not connect

Connect, but not reach

Neither reach, nor connect

Not necessarily true. Your Hispanic customers may be

behaviorally loyal, due to their lack of integration or access to choices.

Customers integrate, and then migrate to another bank

3. The Market Complexities

Hispanics often pay premium prices to access products and services they need, or simply

want.

Activate your strategy across relevant consumer touch-

points and integrate for a true brand experience.

3. The Market Complexities

A digital camera purchase is not about the pixels, but about the

emotional possibilities

Customer Reviews

Search Engines

Word of mouth

Online Banners

Search engines eMails Radio

TV Ads

Sponsorships Direct Marketing

BTL

Events

Magazine Ads

Newspaper Ads PR WOM

Out-of-Home Billboards

Customer Reviews

Influencers

4. Some Examples

General Mills: Que Rica Vida

Universal Music: Enrique Iglesas

Cingular (now AT&T): World Cup Campaign

Discovery En Español: Travel&Living + Discorvery Kids Launch

5. Conclusions

 Because “Hispanic Marketing” uses stereotypical Hispanic cues and icons…

 Focuses on cultural perceptions…

 Is based on the mainstream brand architecture…

 And is generally ineffective in building brand preference

It Is Not About “Hispanic Marketing” It Is About “Marketing To Hispanics”

 Because “Marketing to Hispanics” uses specific market insights to tell a relevant and compelling story…

 Focuses on specific wants and needs…

 Is based on drivers of purchase and consumption…

 And has proven to effectively build brands with Hispanics

5. Conclusions