It is the crucial question. How will the publication and interpretation of the 2010 Census results impact Hispanic advertising and marketing budgets. “I believe the data will speak for itself and “sell” itself. We are in new times and this is a “New America”. When you see the numbers, the changes in demographics, the shifts and, most importantly, where the growth will continue to come from; there is no question that every CMO who wants to grow their business needs to do so by reaching, connecting and converting multicultural consumers into their customers”, says Jacqueline Hernández, Chief Operating Officer of the Telemundo Communications Group, Inc.
But how do multicultural marketing directors see this? How are they going to “sell” the census results to their CMO's (Chief Marketing Officers)? Portada asked the following questions to four major clients:
1. What are the main factors behind the size of your company's multicultural marketing budget?
2. What do you think is in the way of increasing multicultural marketing budgets in Corporate America?
3. How do you try to convince your company's leadership to increase multicultural marketing budgets?
4. How is Hispanic marketing/advertising embedded into your company's sales and marketing organization?
5. What light do you expect the 2010 Census to shed on the particular audience segment your company targets?
THIS IS WHAT THEY HAD TO SAY:
Multicultural Marketing Manager
STANLEY BLACK AND DECKER
1. The % of Hispanic Contractors in the industry is a major factor – by 2012, 40% of contractors in the US will be Hispanic so we need to make sure we are allocating the right resources to more effectively penetrate this market. The second factor is the lack of culturally relevant communication resources we currently have. We need to bring our communication elements up to par with the general market therefore you will see an investment in developing all the “fundamentals” first before we increase our advertising spend.
Over the last 6 months, we have translated our entire tools lines into Spanish in our system, launched a full size Spanish Catalog and developed an entire line of culturally relevant POP (banners, posters, headers, premiums, etc.).The last factor is the need for bilingual employees that understand the cultural aspects of our target consumers, particularly in the field jobs where they interact with our consumers on a daily basis (retail sales, field and event marketing, service locations, consumer services, etc.).
2. “The globalization of the economy plays a major factor for companies like ours who might see better opportunities outside of the US to invest in, especially with a down economy in the US. There are other markets that are doing better and the market share potential is higher than the US in many cases. Another factor is most companies struggle understanding what is the true profit potential of the Hispanic Market. What can this market deliver to their business? Companies that understand this, have increased the investment in this segment and are doing better than some of their competitors and will come out better after the economy recovers. I also think there is a lack of Hispanics in leadership positions that can be a part of the conversations that go behind closed doors when Senior Executives are deciding where the resources will go to. That's where you have to fight the battle and as more Latinos get into those leadership positions I believe you will see budgets becoming more realistic.”
3. “First, the size and growth of the market in our industry makes it an undeniable proposition. Second, having a comprehensive strategy outside of just promotions and marketing campaigns gives them more confidence in investing the resource: you got to have a long term strategy that impacts all aspects of your business, not just one area. The dollars have to get stretched as much as you can, especially in this space. Put together a 3-5 year strategy that shows how you plan to grow and take share for your company and get a buy in on a long term plan and not a one year plan. Your strategy needs to show year after year growth when you present it. I think a lot of Senior Leaders get shocked when you try to swing for the fence asking for budgets. Lastly, you have to show results. Sometimes its better to do something small really well to show the impact those dollars can have if you amplify them to more markets, to more people, to more promotions, to bigger sponsorships.”
4. “We have a Hispanic Marketing Advertising Budget that supports all key activities: promotions, new product launches, key retail events. This is the first year that we have this and it is now a “fundamental” part of our business as we launch different marketing campaigns and new products.”
5. “That they are a much bigger part of our business than we thought and that they are a much bigger influencer in deciding what products to buy. I think the buying power within our industry will be much stronger coming out of this economy than going into it.
Sprint Prepaid Group
1. Simply said, our organization understands the market place and thus balances opportunities and risks to allocate investments depending on the objective at hand.”
2. “At the end of the day it is about maximizing marketing investments to target the right consumer for the brand and category, so it is about identifying where the growth is.”
3. “Multicultural leaders must leverage consumer data to engage their leadership to build the rationale that a dollar invested in targeting a multicultural consumer delivers x times the investment in revenue. The hope is that the multicultural consumer over delivers when compared to its general market counterpart.”
4. “The Hispanic segment is a top priority that is reflected in our exemplary worth ethic of our sales and marketing organization; from advertising to customer life cycle”
5. “Our organization is well versed in the national population figures, but we'll be sure to review the data to identify any new trends.”
Lesley Mc Norton
Multicultural Marketing & Americas
Corporate Marketing, HP
1. “HP will continue to invest in the multicultural market. We see that it presents tremendous growth opportunities for HP’s consumer and small and medium businesses. Continuing to understand and invest in this market is core to HP’s vision.”
2. “Demonstrating the business opportunity these audiences represent and executing to achieve a strong ROI. HP is the #1 IT company and has the 10th strongest brand in the world, with over 300K employees who are listening to customers, watching trends and partnering to make a difference. HP believes strongly that the trends are being led in large part by Hispanics and African Americans.”
3. “Market data and demonstrating results. HP has been successful with marketing campaigns that include The HP Insider, a first-of-its-kind relationship with the NBA to name one local fan an “HP Insider” and award him or her a week of behindthe- scenes access to a basketball team. The program was implemented with the Miami Heat and the Dallas Mavericks; and HP Digital Assist, a partnership among HP, NBA Cares and ISTE (International Society for Technology in Education) to bring the power of technology and professional basketball to middle school students by providing teachers with interactive and engaging technology opportunities. In addition, we select key industry influencers and partnerships that align with our business strategies to generate awareness, preference and consideration for our products, services and solutions.”
4. “At HP, we fully embrace the concept of diversity, based on the importance of focusing on the possibilities and not the limitations. We think that true capabilities and leadership cannot be defined or limited by gender, race or religion. For all of us to win in today’s fiercely competitive marketplace, we will need to embrace our differences and mirror the diversity of our customers and the world around us.”
5. “The Census 2010 will show new data showing coast-tocoast growth in the Latino population which will further cement the need of companies to aggressively continue approaching this segment of the U.S. population.”
VP Head of Hispanic Markets at
New York Life
1. “An important variable affecting our Hispanic marketing efforts is whether a market is defined as Hispanic or not. We define a market as Hispanic if 50% or more of its customers are Hispanic. We have associates exclusively devoted to the Hispanic market in the following units: New York (two), Fresno, CA, El Paso, TX, Mc Allen, TX, Edison, NJ, Miami, FL and San Antonio, TX. New York Life's Hispanic marketing team increased from 5 to 27 Hispanic marketing associates over the last 15 months. In 2011 we are expecting an additional 11 as we open additional units specifically devoted to the U.S. Hispanic market in San Diego and Tampa.
Our company's multicultural markets unit, which includes the Hispanic marketing unit, generates more than a third of the company's retail revenue and is outpacing the growth of the rest of the company. Most of our ad buys are done on a local level. We partner with our agents to undertake co-op Advertising, mostly sharing the costs by approximately 50%.”
4. “New York Life has two main units: The Retail Marketing Unit and the Multicultural Markets Unit, which includes the Hispanic marketing unit. The Multicultural Marketing Unit has 6 divisions: Hispanic, African-American, Chinese, Asian Indian, Vietnamese and Korean. We have 120 offices around the country; these offices support our more than 10,000 agents. We consider our agents our brand ambassadors. Currently 10% of our agents are Hispanic, while the Hispanic market segment sales amount to 12%-13% of total revenues.”