© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT 20/20 for Hispanic Marketing 2020

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com

20/20 for Hispanic Marketing 2020


Northern California LEAD Conference ‘07 by NSHMBA

August 18, San José, CA


Presentation Flow

latinos - the growth opportunity today

best practices In-culture!

GenAge© segments;managing growth and

acculturation


1986 2006

Hispanic Pop 19.4 42.7

Hispanic HH Income 24,156.00$ 34,241.00$

Hispanic HH (N) 5.8 12.4Hispanic Median Age 24.7 26.6

Spanish Speakers 13 MM (68%)28 MM (65%)

1986 vs 2006*

Sources: *(IVC Estimates) Adapted from Edmonston and Passel, 1992,39,44; U.S. Census Bureau, 124bPopulation Estimates Program, Population Division; U.S. Census Bureau, Washington, D.C. 20233Bureau fo the Census 1990a.7; Census Bureau Press Release August 30, 2005Valdes M. Isabel and Seoane, Marta, Hispanic Market Handbook, 1995, Gale Research PublishersValdes M. Isabel, Marketing to American Latinos, Part 2, 2002, Paramount Market Publishers


42.7 + Puerto Rico = 46.7

- 2.1 million new consumers- 65 billion more in income!- half a million new HHs!

projected hispanic

growth every 12 months


in 2007 44 million latinos + puerto rico = 48+million

47 9

15

24 26 2731

3539 41

4854

60

67

73

80

88

95

103

0

20

40

60

80

100

120

Year

Popu

latio

n in

Mill

ions

Projected


total USA from 7 trillion to 9.9 trillion…

African Americans $ 589 billion to $ 853

US Latinos $ 491 billion to $ 926

Asians $ 255 billion to $ 455

American Indians $ 36 billion to $ 57 Source: Selig Center for Economic Growth, 2002 *Buying Power or Disposable Personal Income : Total Personal Income after taxes

exponential disposable income growth

income growth estimates 2000 to 2007


165%

206%

265%

513%($1,087 Billion)

347%($736 Billion)

231%($489 Billion)

100%($212 Billion)

100%

0%

100%

200%

300%

400%

500%

600%

1990 2000 2005 2010

Hispanic Non-Hispanic

exponential disposable income growth Projected Evolution of Hispanic Buying Power through 2010


income by country of origin 2004

Median Household Income by Country of Origin2004

$35,185 $34,092

$38,256

$29,624

$36,369

$43,788

$37,396

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Mexican Puerto Rican Cuban Dominican Non-MexicanCentral

American

SouthAmerican

OtherHispanic

Source: I. Valdes, based on U.S. Census Bureau, 2004 American Community Survey, Selected Population Profiles.


Median Age by Ethnic Group2005

17

27

35

24

31

35 36

40

0

5

10

15

20

25

30

35

40

45

Hispanic -U.S. Born

Hispanic Hispanic -Foreign

Born / 1stGeneration

Other, notHispanic

Black alone,not

Hispanic

Asianalone, notHispanic

TotalPopulationAverage

Whitealone, notHispanic

Med

ian

Ag

e

Source: Pew Hispanic Center tabulations of 2005 American Community Survey

median age by ethnic group 2005


Household income

# of Hispanic households.(in ‘000s)

% of Hispanic households.

% growth 2000-05

100,000+ 1,098 8.8% 97.5 %

75,000-99,999 1,029 8.2 44.9

50,000-74,999 2,159 17.2 28.4

35,000-49,999 2,141 17.1 25.4

25,000-34,999 1,874 15.0 31.8

15,000-24,999 2,031 16.2 15.1

Under $15,000 2,186 17.5 20.0

[i] Source: U.S. Census Bureau

income distribution, hispanic households 2000-2005


Selected Age Groups and Median Age 2004

25.5% 22.3%34.3%

38.0%35.8%

45.3%

24.5%27.3%

15.2%12.0% 14.5%

5.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total US Pop White, non-Hispanic Total Hispanic

Under 18 18 to 44 45 to 64 65 and Older

Median Age: 36.2

Median Age: 40.1

Source: U.S. Census Bureau, 2004 American Community Survey, Selected Population Profiles, S0201.Notes: Data based on sample limited to the household population and exclude the population living in institutions,college dormitories, and other group quarters. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see factf inder.census.gov/home/en/datanotes/exp_acs2004.html, Some percentages do not sum to 100.0 due to rounding.

Median Age: 26.9

median age by ethnic group 2005


latinos by country of origin

Mexico63.9%

Puerto Rico9.1%

Non-Mexican Central America

7.4%

South America5.3%

Dominican2.7%

Cuba3.5%

Other Hispanic8.1%

Mexico

Puerto Rico

Cuba

Non-Mexican CentralAmerica

South America

Dominican

Other Hispanic

Source: IVC, PEW Hispanics at mid-decade, Population by Region, Sex, and Hispanic Origin Type, based on U.S. Census


Hispanic Household Population by State2004

California30.3%

Texas18.9%Florida

8.0%New York

7.4%

Illinois4.3%

Arizona3.9%

New Jersey3.2%

Colorado2.1%

New Mexico2.0%

All other states19.9%

Source: U.S. Census Bureau, 2004 American Community Survey, Selected Population Profiles, S0201.Notes: Data based on sample limited to the household population and exclude the population living in institutions, college dormitories, and other group quarters. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see http://factf inder.census.gov/home/en/datanotes/exp_acs2004.html. Percentages do not sum to 100.0 due to rounding.

geographic distribution


State Hispanic Share of Total Buying Power (%)

New Mexico 29.5%Texas 19.2California 17.2Arizona 15.2Nevada 13.2Florida 14.3Colorado 10.8New York 9.5New Jersey 8.6Illinois 8.1[i] Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, July 2005

ten states with most concentrated Hispanic buying power 2005


Latino Immigrants by Country of Origin and Citizenship Status2004

60.6%

98.7%

36.7% 38.7%32.2% 30.3%

82.5%

8.5%

38.1%28.0%

19.1% 26.2%

8.0%30.9%25.2%

33.3%

48.8%43.6%

9.4%0.7%0.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mexican Puerto Rican Cuban Dominican Non-MexicanCentral

American

SouthAmerican

OtherHispanic

U.S. Born Foreign Born, naturalized citizen Foreign born, not a citizen

Source: U.S. Census Bureau, 2004 American Community Survey, Selected Population Profiles, S0201.Notes: Data based on sample limited to the household population and exclude the population living in institutions, college dormitories, and other group quarters. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see http://factfinder.census.gov/home/en/datanotes/exp_acs2004.html. Some percentages do not sum to 100.0 due to rounding.

% of HispanicPopulation 63.9% 9.1% 3.5% 2.7% 7.4% 5.3% 8.1%

challenges exist!


20%

36%

31%

27%

32%

54%

48%

44%

0%

10%

20%

30%

40%

50%

60%

Math, 4th Grade Reading, 4th Grade Math, 8th Grade Reading, 8th Grade

Overall Hispanic

“The Nation’s Report Card: Reading 2005” and “The Nation’s Report Card: Mathematics 2005”, National Center for Education Statistics

percent of students below basic national achievement levels in math and reading


presentation flow

best practices

In-culture!

GenAge© segmentsManaging growth and

acculturation


culture is the “programming” that sets up our values,

beliefs, expectations, etc. and the chain reaction begins...

Source: Adapted from Fons Trompenaars

culture is…


Culture creates beliefs.

Beliefs create attitudes.

Attitudes create feelings.

Feelings determine actions.

Actions create Results

Culture is our programming


is a marketing approach that …

“capitalizes and leverages cultural differences through-out business planning, value proposition - marketing strategy development and execution. By doing so, we touch and engage consumer’s emotions building “HeartShares for long-term MarketShare™” Source:, I. Valdes, 1995, 2000 , 2002, 2007

“in-culture” marketing works!



1990 2000 2010 2020 2030 2040

0

10

20

30

40

50

60

70

1990 2000 2010 2020 2030 2040

Fourth generation

Third generation

Second generation

Foreign-born

a generational view

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.comSource: Valdes, I., Marketing to American Latinos, 2000

US born• first, second, third generation• brand, category “mature” • marketing savvy

foreign born• recent arrivals vs Long-term• brand heritage/lack off• advertising, information “hungry”

generational diversity


Hispanic Foreign Born (1st Generation) Hispanic U.S. Born (2nd and 3rd Generation)

Universe: 2005 Household Population

Hispanics at Mid-Decade

Table 7a. Population Pyramids for Ethnicity and Nativity Groups: 2005

Total Hispanic White, not Hispanic

10 8 6 4 2 0 2 4 6 8 10

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84 MalesFemales

10 8 6 4 2 0 2 4 6 8 10

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84 MalesFemales

10 8 6 4 2 0 2 4 6 8 10

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84MalesFemales

10 8 6 4 2 0 2 4 6 8 10

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80-84MalesFemales

population pyramids


Less than 9th Grade

9th to 12th Grade

High School Graduate

Some College

College Graduate

Total Hispanic(in ‘000s)

5,446 (24.0%)

3,742 (16.5%)

6,121 (27.0%)

4,577 (20.2%)

2,785 (12.3%)

U.S.-born Hispanic / 2nd Generation, 3rd Generation, and Greater(in ‘000s)

932 (9.8%)

1,432 (15.0%)

2,919 (30.6%)

2,748 (28.8%)

1,504 (15.8%)

Foreign-born / First-generation Hispanic(in ‘000s)

4,513 (34.4%)

2,311 (17.6%)

3,202 (24.4%)

1,829 (13.9%)

1,281 (9.8%)

Total U.S.(in ‘000s)

11,790 (6.2%)

17,990 (9.5%)

55,907 (29.6%)

51,865 (27.5%)

51,378 (27.2%)

Note: “College graduate” refers to a person who has attained at least a bachelor’s degree.Source: Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey.

[i] Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey.

hispanic educational attainment by U.S.-born and foreign-born generations

age 25 and over - 2005


present day Hispanic market is composed of consumers in different stages of acculturation to American mainstream culture

levels and rates of acculturation vary between sub-ethnic groups, (Cuban, Mexican, etc.) generations, regions and even within families!

latinos and “acculturation”


Machismo(Man’s role)

LeadsProvides

Marianismo(Woman’s role)

Keeps family together

Chicoismo(Children’s role)

Family legacy

FamilismoFamilismoFamily Unity is Imperative

(Family Centered)

latino cultural imperatives


Babies: birth, christening

Children: birthday, First Communion

Family: Mother’s Day, Father’s Day

Romance: Anniversaries (20, 25, 50…)

Religion: Catholic Holidays

marketing in-culture


an approach to deliver emotionally relevant messages that build HeartShares™

in addition to the right communications strategy, visuals, tonality, etc. - to touch the “whole person” - not just the mind or pocket!

• Source: Valdes, M.I., Marketing to American Latinos, 2000 , 2002

in-culture and in-language = $$$$!


• “A message must convey the emotional significance of the sentence, in addition to the phonetic message, in order to convey the “full” message.”

language relevance


•English?

•Spanish?

•Bilingual?

•Spanglish?

language value?


Language Spoken at Home and English Speaking Ability 2004

81.3%94.3%

22.8%

10.3%

38.5%

8.4%

38.7%

3.9%1.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total US Pop White, non-Hispanic Total HispanicNon-English at home, English spoken less than "very w ell"

Non-English at home, English spoken "very w ell"

Only English at home

Notes: population 5 and older. Data based on sample limited to the household population and exclude thepopulation living in institutions, college dormitories, and other group quarters. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see factf inder.census.gov/home/en/datanotes/exp_acs2004.html

variations in language usage today


“Marketing In-culture has a measurable effect on the choices

consumers make, the volume they purchase and where they shop!”

Source: Valdes, M.I., Marketing to American Latinos, 2000 , 2002

measurable results


$ Index$ Index

Mexican Tortillas

Brand A

Brand B

Brand C

CTL Brand

100

100

100

100

100

661

2665

115

8895

183

1003

4330

54

18172

211

500

2107

127

3774

100

297

528

207

220

267

NON-HISPANIC TOTAL ------------------- LANGUAGE SEGMENTS --------------- MARKET HISPANIC SPANISH ENGLISH HOUSEHOLDS HOUSEHOLDS ONLY/PREFERRED BILINGUAL ONLY/ PREFERRED

.

ACNielsen Homescan

Delivers Consumer Insights

Hispanic Shopping BehaviorMexican Tortillas: What Do Hispanics Buy?

March-Aug Hispanic Consumer March-Aug Hispanic Consumer Panel - LA MarketPanel - LA Market


“STORE X”

“STORE X” Comp Mkt

Rest of Market Excluding

“STORE X” Nectar Category $1,734.7 $6,409.5 $4,674.7

$ Chg VYA +41.1% +24.4% +19.1%

Goya Nectars $504.3 1,831.4 1,327.1

$ Chg VYA +16.1% +14.0% +13.2%

Libby’s Nectars $486.4 $1,610.4 $1,124.0

$ Chg VYA +159.9% +26.9% +3.9%

Mira Nectars $256.7 $294.9 $38.2

$ Chg VYA 20.0% 21.4% +31.4%

Source: AC Nielsen 52 weeks ending 1/26/02

“store x” nectar category growth


In-culture Brand

Positioningand Value PropositionMerchandising

Distribution

Retailing

IT Database

Affinity/ Cause-Related

Direct Response Promotions

Event Mktg

Public Relations

Grassroots/Guerrilla

Product Innovation

Customer Service / CRM

Loyalty/Winback

OnlineHiring - Training

In-culture Integrated Marketing Model Source: Valdes, M.I., Marketing to American Latinos, 2000 , 2002


presentation flow

GenAge© segmentsmanaging growth and

acculturation


Introducing ….

Hispanic Customers for Life;

a Fresh Acculturation Review

byM. Isabel Valdés

Available Q4 2007

www.isabelvaldes.com


3rd+ Generation 13.6 million

1st Generation / Foreign Born 19.9 million

2nd Generation11.2 million

1st Generation / Foreign Born

2nd Generation

3rd Generation

G3+30%

G225%

G145%

(G1)

(G2)

(G3+)

All U.S.-born55%

24.8 million

“the” generational changes


9%

60%

31%

23%

47%

30%

47%

30%

24%

64%

14%

22%

0%

10%

20%

30%

40%

50%

60%

70%

First Generation/ ForeignBorn

Second Generation Third Generation or Greater

Ages 0-12 Ages 13-17 Ages 18-24 Ages 25 and up

Source: I. Valdes, adapted from U.S. Census Current Population Survey, November 2004

latino age by generation


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Age

Per

cen

tag

e o

f T

ota

l U

.S.

His

pan

ic P

op

ula

tio

n

Foreign Born

US Born

Latinos by Age and Place of Birth 2006 in “Latino Customers for Life; A Fresh Acculturation Approach”


U.S. Hispanic Generational Segmentation by Age - 2006

5%

13%16%

28%

54%

66% 66%

61% 62%

52%

46% 45%

35%

20%

13%10% 9%

13%

43%41%

38% 37%

26%

21%24%

30%

25%

0%

10%

20%

30%

40%

50%

60%

70%

0 to 5 (Los Bebes)

6 to 9 (Los Niños)

10 to 14 (Tweens)

15 to 19 (Teens)

20 to 29 (Twenty-somethings)

30 to 39 (Thirty-somethings)

40 to 49 (Young Boomers)

50 to 59 (Mature Boomers)

60+ (Los Grandes)

Age

Per

cen

tag

e o

f T

ota

l U.S

. His

pan

ic P

op

ula

tio

n

1st Generation

2nd Generation

3rd Generation

Hispanic Population Median Age 2006: 28Total U.S. Population Median Age 2006: 35.5

Source: Isabel Valdes, upcoming 2007 book. ©2007 NOT FOR CIRCULATIONThe 2007 data is consistent with independent estimates including those from the Pew Hispanic Center and the Census Bureau's 2006 MarchCurrent Population Survey, Annual Social and Economic Supplement

Hispanic GenAge® Segments – 2006 in”Customers for Life; A Fresh Acculturation Approach”


12%0 to 5

Los Beb¸ s

7%6 to 9

Los Ni–os

9%10 to 14 Tweens

8%15 to 19 Teens

18%20 to 29

Twenty-somethings

13%40 to 49

Young Boomers

17%30 to 39

Thirty-somethings

8%50 to 59

Mature Boomers

8%60+

Los Grandes

0 to 5 (Los Beb¸ s) 6 to 9 (Los Ni–os)10 to 14 (Tweens) 15 to 19 (Teens)20 to 29 (Twenty-somethings) 30 to 39 (Thirty-somethings)40 to 49 (Young Boomers) 50 to 59 (Mature Boomers)60+ (Los Grandes)

19%Los Beb¸ s

and Los Ni–os0 to 9

17%Generation „

10 to 19

35%Latinos and Latinas

20 to 39

21%Latin Boomers

40 to 59

8%Los Grandes

60+

GenAge™ Segments2006


GenAge® Segmentationby Nine Age -Sub-Segments and Generation 2006

0.6% 0.9%1.4%

2.2%

9.4%

11.4%

8.7%

4.9% 4.9%

6.2%

3.3%

4.0% 2.9%

3.4%

2.2%

1.3%

0.7% 1.0%

5.2%

3.0%

3.4%3.0%

4.5%3.7%

3.2%

2.4% 2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0 to 5 6 to 9 10 to 14 15 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60+

Age

Per

cen

tag

e o

f T

ota

l U

.S.

His

pan

ic P

opul

ati

on

1st Generation/Foreign Born 2nd Generation 3rd Generation

12%

7.2%

8.8%

8.1%

17.3% 17.3%

13.2%

8% 7.9%

GenAge™ Segments2006


0 to 5

6 to 910 to 14

15 to 19

20 to 29

30 to 39

40 to 49

50 to 59

60 to 69

70+

0

20,000

40,000

60,000

80,000

100,000

120,000

2005 2010 2020 2030 2040 2050

0 to 5 6 to 9 10 to 14 15 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70+

Source: I. Valdes, 2007, adapted from U.S. Census usproj2000-2050.xls

GenAge© segments growth


Los Bebès - Ages 0-5GenAge ® Segments

2006

43%3rd Generation

52%2nd

Generation

5%1st Generation (Foreign Born)

1st Generation (Foreign Born) 2nd Generation 3rd Generation


latinos/as - Ages 20-39GenAge ® Segments

2006

24%3rd Generation

16%2nd Generation

60%1st Generation (Foreign Born)

1st Generation (Foreign Born) 2nd Generation 3rd Generation


In sum ….

Latinos 2020;great business opportunity

challenges need to be addressed !In-culture marketing works!

the generational crossover

is here

tools to manage growth, and acculturation exist! e.g.: GenAGe™


by M. Isabel Valdés, IVCParamount Market Publishers. Ithaca, New York

www.Isabelvaldes.com

Documents

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT 20/20 for Hispanic Marketing 2020