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Walmart’s Every Day Low Prices (EDLP) policy is having a clear impact on advertising in multicultural media. The Bentonville, Arkansas, retail giant is scaling back TV advertising, newspaper circulars and in-store displays in an effort to refocus on EDLP. What Javier Delgado Granados, Multicultural Marketing Director at Walmart and Hispanic media executives have to say.

Javier Delgado Granados, Multicultural Marketing Director at Walmart, tells Portada that Walmart has reinvigorated its focus on EDLP and that this has the following implications for advertising: “Operating under this model affects all we do at Walmart, including how we negotiate with our suppliers, how we advertise and how we go to market with price. In comparison to last June, we’ll run roughly half of the number of circulars. At the same time, the items and prices that are highlighted will last two weeks vs lasting one week. We’re focused on long-term loyalty, not a weekly sale.” Delgado’s comments refer to Walmart’s newspaper advertising in general, but Hispanic newspapers have also been hit. (Check out our exclusive interview today with Trevor Hansen, CEO of EPMG, the firm that places Walmart circulars in Hispanic print media).

In comparison to last June, we’ll run roughly half of the number of circulars.

Walmart3Delgado adds, however, that digital media expenditures are increasing. “We’ve also increased our digital spend – serving solutions to customers we know are looking for particular products while searching and shopping online.” “Our intention is to follow the customer and the General Market and Multicultural media behaviors are shifting dramatically,” Delgado concludes.

Newspaper Inserts have been a popular vehicle for big box retailers, especially when they are placed in large circulation home-delivered newspapers. Martha Kruse, Multicultural Marketing Director at Rooms to Go, tells Portada that she thinks that “the home-delivery distribution method of Hispanic newspapers can be very powerful.” Rooms to Go places English-language circulars in many Hispanic newspapers including Al Dia de Dallas and La Voz de Houston.

Hispanic Publishers to Walmart: Listen to your Regional Marketing Managers

WalmartNow Hispanic newspaper publishers are encouraging Walmart to bring the creative process and media planning to second and third tier suppliers who are on the ground and understand how the communities engage with print and their brands.
“If Hispanic market is one of their main goals, we hope Walmart will start applying their own retail strategy, visit their stores and listen to employees and local stores managers to media and go and visit the publications and the organizations who place the media,” says Martha Montoya, publisher of Seattle, WA based El Mundo newspaper. I am “very disappointed in Walmart’s short-sidedness in regards to the Hispanic Market. All indicators prove Hispanic Language Consumers are driving retail sales for Walmart and its peer retailers,” says Zulema Tijero, Sales Manager at Washington DC based El Tiempo Latino (owned by The Washington Post).

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Anita Grace, president of Anita Grace Ad Execs, and a sales representative for Freedom Communications, Gannett and AIM Texas Hispanic newspapers, says that “over and over newspaper inserts have been proven effective for retailers. I believe Walmart is getting caught up in the ‘apps and digital is enough and it’s cheap hype’. I would encourage my Hispanic print peers to develop relationships with their regional marketing manager and make sure they are aware of the cut. When they see a dip in numbers they know what to blame. Also we should encourage the regional managers to report back to corporate and ask for this program to be re-established.”
Other Hispanic newspaper publishers point out that it is their experience that their readers want the flyer in hand and that this includes Millennials. In the Hispanic market, there is no digital option to substitute a hand-delivered quality product to the front door that encompasses multiple generations, they claim.

Hispanic: Down in Digital and Mag. Advertising

According to Media Economics Group, overall, Hispanic magazine ad spend in the Department Stores category, which includes Target, Walmart and other big box retailers) is up by about 130% this year. However, so far this year Walmart ad spending in Hispanic magazines is $285,200 down 43% from $500,910 same period last year. This year, Walmart ranks sixth (down from third in the same period last year) among all retailers in ad spending in Hispanic magazines (Macy’s is first with US $2 million in spending).

While, as Delgado points out Walmart may be spending more to reach out to consumers via digital media, its activity “has been virtually non-existent on Hispanic digital properties,” says Carlos Pelay, president of Media Economics Group. .”In contrast, during January – May, 2014 Walmart accounted for 25.8% of all ad occurrences in the department store retail category on Hispanic websites – second only to Target (35.6%).

Hispanic Magazines Spending of Retailers (Jan-Jun 2015)

Company20142015Change
Macy’s, Inc.$383,679$2,004,908422.5%
JC Penney$0$471,081na
Target Corporation$312,257$407,02130.3%
Wal-Mart Stores, Inc.$454,690$285,200-37.3%
Saks Incorporated$9,720$9,7200.0%
Sears Holdings$222,747$0-100.0%
TOTAL$1,383,093$3,177,930129.8%

SOURCE: Media Economics Group

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The jury about the viability/success of sites targeting Hispanic (women) in English is still out (e.g. see the recent closures of CNN Latino and NBC Latino). Portada asked  media buyers at corporations and agencies about their views. What media buyers at Maybelline, Rooms to Go and Haworth Marketing and Media have to say.

Acculturated Latinas

Moguldom Media Group just introduced LatinaMadre.com a bicultural site targeting acculturated Hispanic moms. The rationale for the launch  seems pretty understandable when explained by Moguldom Media Group Chief Revenue Officer Christian Gonzalez: “There is a lack of information  for US-based Latinos/Hispanics,  but more so in the useful/factual information arena – Information people can use in their day-to-day lives. As far as LatinaMadre.com is concerned, we have a fair amount of content targeting Hispanic women.”

Quite a few media properties have been betting on reaching and engaging acculturated Hispanic moms. Demographic facts support  their efforts: Hispanic women are the growth engine of the U.S. female population and are expected to represent 30% of the total female population by 2060, while the non-Hispanic white female population is expected to drop to 43% according to a recent Nielsen study. But what do media buyers have to say? Are acculturated sites reaching the Latino population good enough? Is English-language  content targeting Hispanics still too scarce?

When it comes to digital media reaching out to the bicultural Latina, very few sites update their content often enough, particularly if you compare it to general market sites.
Daisy Terrazas-Cole
Daisy Terrazas-Cole, Multicultural Media Strategist, Haworth Marketing and Media


Daisy Terrazas-Cole, is  a Multicultural Media Strategist working at Haworth Marketing and Media
in Minneapolis, MN. Terrazas-Cole works on the multicultural strategy for Target whose main objective is to reach bilingual Hispanic women  that are milennials and navigate between both cultures. Terrazas-Cole notes that some sites do a good job, including some Spanish-language sites who provide international news and sites targeting the general market in “pure” English,  but that “there seems to be a big gap when it comes to content targeting the bicultural Latina.”
Daniel Villaroel, Director Multiethnic Marketing at Maybelline New York and Garnier, says that “for the general market, there continues to be a growth trajectory for digital content. In comparison to the Hispanic market, some content produced in English is meeting the needs of some Latinas.  However, I think more content that’s of better quality is necessary for Latinas in both English and Spanish. I’m seeing a huge appetite for Spanish language/bilingual content.” (BTW: the data on the table at the end of this article supports Villaroel’s view). He adds that his brands “have fully robust Spanish language web and mobile sites.  We utilize a variety of tools at our disposal to reach Latinas digitally that include standard display, branded content and video among other tactics.”

Martha Kruse
Martha Kruse, Senior Director Multicultural Marketing, Rooms to Go

Martha Kruse, Senior Director Multicultural Marketing at Rooms to Go, notes that “there is a good amount of media content targeting women in my opinion. Depending on the category you can find from well-established publishing house to bloggers, etc. Now, in turn when it comes to targeting Hispanic women, digitally, I think no one owns it yet.”

As for targeting Hispanic women, digitally, I think no one owns it yet.

The costly need to update

“When it comes to digital media reaching out to the bicultural Latina, very few sites update their content often enough, particularly if you compare it to general market sites,” says Haworth’s Terrazas-Cole. It is a Catch 22 issue: If digital properties do not have enough good quality and frequently updated content they may not attract enough advertising dollars, which in turn are not sufficient to finance the editorial operation. Enedina Vega-Amaez ,Vice President/Publisher at Meredith Hispanic Ventures Group, contends that frequent updating  “is a question of resources and having the staff necessary to respond to what is current and trending since the web is so immediate.  In the magazine publishing world you are publishing for a monthly or a weekly, on the web it’s daily, if not hourly.”

The table below shows that English-language (general market)  sites in the beauty, lifestyle, fashion and style categories  are most visited by Hispanic women rather than sites that specifically target acculturated Latinas. It will be interesting to see if in the next 10 years this pecking order can be changed by new start-ups within media that exclusively targets acculturated Latinos.

General Market sites  lead when it comes to target acculturated Latinas

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Properties

Total unique visitors (000)

Lifestyles – Beauty-Fashion/ Style

6914

Glam Style

1067

Stylelist Sites

875

TotallyHer – TheFashionSpot

626

ComplexStyle

481

Hearst Beauty & Fashion Network

468

Livingly: Style

378

Enfemenino.com Sites

297

POPSUGAR Fashion Beauty

292

Refinery29

280

Glo

266

Source: comScore – December 2013

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Hispanic market and/or targeting Hispanic consumers right now.

      • Human Care HSP
        Two agencies are partnering to introduce a Pharma Marketing unit. McCann  Human Care and sister agency Casanova Pendrill  (both owned by Interpublic)  are introducing HumanCareHSP. HumanCare claims to be very  knowledgeable about the regulatory environment associated with pharma advertising.  Advertisers have often found regulatory hurdles to the  efficient deployment of Hispanic pharma advertising (including issues such as  the translation of indications).

 

      • Walmart
        Wal-Mart Stores plans to focus more on reaching the Hispanic consumer, the Citywire reports. Stephen Quinn, executive vice president of marketing for Wal-Mart, told suppliers at the beginning year meeting 10 days ago in Orlando that the retailer’s marketing focus this year is in step with the merchandising goals of localization, being more competitive locally and more keenly focused on Hispanic shoppers. The retailer said last year it planned to ramp up that investment by 100% in the next year or so.The majority of Wal-Mart’s Hispanic stores are concentrated in 8 states including 171 in Texas, 126 in California, 50 in Florida, 36 in Arizona and 33 in New Mexico. More than 800 Walmart Stores across the United States are deemed Hispanic.

 

      • Rooms to Go
        Rooms To Go has entered into a multi-year licensing agreement with Hispanic actress and businesswoman Sofia Vergara and plans to launch a home furnishings collection in her name in late fall. According to Furniture Today,  the 130-store Top 100 company plans to start “smallish,” said CEO Jeff Seaman. While he declined to disclose the number of pieces or SKUs in the contemporary line, he said it will include living room, bedroom and dining room furniture along with accessories.Seaman said the line should appeal to shoppers across many cultures, not just Hispanic consumers.Terms of the deal were not disclosed.”True to the retailer’s strategy, the Sofia Vergara Collection will be merchandised and displayed in complete room groupings designed to provide customers with inspiration, affordability and ease of shopping,” RTG said in a statement.Vergara will be appearing in RTG’s commercials and other marketing material as well as visiting stores, Seaman said. The retailer – with dual headquarters in Seffner, Fla., and Atlanta and estimated 2012 sales of $1.61 billion – hasn’t chosen all the suppliers for the collection yet, something Seaman said it wants to accomplish at the April High Point Market.

 

      • American Honda Motors
        American Honda Motors has concluded its Media Review which began in December.  MediaVest was selected as the media agency serving both brands, with  RPA selected as the creative agency for the Honda automobile brand and  Mullen as the creative agency for the Acura brand.  La Agencia de  Orci & Asociados will continue to be Honda’s Hispanic creative agency.

 

        • Bashas
          As part of Bashas’ Family of Stores’ ongoing restructuring efforts and to position the company for rapid growth, the company has named Edward Basha III as president, CEO and chairman of the company. Jim Vaughn, who recently served as a division president of Albertsons, is joining the company as senior vice president of procurement and marketing.

 

      • Amigo United Supermarket
        The Amigo’s United Supermarket franchise is adding a new location in Hereford, Texas, its fourth in the Lone Star State. The new location will bring 125 new jobs to the area when completed by 2014.Amigo’s also has stores in Lubbock, Plainview, and Amarillo, Texas, according to ConnectAmarillo.com.”We know two things. Number one, the population of the state of Texas is growing. Number two, the fastest growing part of that population is the Hispanic population, and that’s especially true in West Texas,” said Amigo’s United Director of Communications Eddie Owens.

 

      • Kia
        Kia Motors wants to become the number one brand among North American Hispanics. To achieve that goal, the firm is increasing its presence in Latino media, Kia’s U.S. marketing director, Tim Chaney, said in an interview with Efe. One sign of this is the recent agreement with Univision to sponsor the beauty competition program “Nuestra belleza latina,” one of the most successful reality shows on Hispanic television in the United States. Chaney told Efe that the South Korean manufacturer is fully immersed in the process of revamping its multicultural communications strategy and emphasized the importance Kia places on the Hispanic community in North America.“The Univision agreement is part of the plan to invest much more money and effort in Hispanic media,” Chaney said. “There’s a great growth opportunity. You can’t be part of the current predominant cultural trend if you don’t invest in the Hispanic market,” he added.

 

      • Target
        Rick GomezRick Gomez is Target Corporation’s new senior vice president of brand and category marketing. In 2011, Target ranked 29th among the 50 largest advertisers in Hispanic media, spending $45.6 million, according to Advertising Age.  The retailer recently partnered with music produce Emilio Estefan to curate a special selection of movies, music, and books called “Emilio Estefan’s Picks.” Target also tasked Estefan with signing exclusive partnerships with Latin music artists.Gomez used to run marketing at beer giant MillerCoors.

 

      • Crown Imports
        Crown Imports toasted another year of strong growth as it outlined its 2013 sales and marketing plans to its U.S. distributor network and select retailers at the Gold Network Summit, its recent annual meeting in Fort Worth, Texas.Last year proved to be a good year for the company, which saw 4.7 percent growth. Its flagship brand Corona Extra increased 2 percent and exceeded annual sales of 100 million cases. Modelo Especial broke the 40-million case mark, up 20.6 percent, and Pacifico was up 8.5 percent, according to the company. The stability and long-term line of sight that our 2012 performance gives our business is exactly what we’ve worked so hard to achieve. And, very importantly, it provides a far clearer roadmap to guide us on our march to fulfill our vision — to capture 20-percent dollar share of the U.S. beer business,” said Bill Hackett, president of Crown Imports.On tap for 2013, the importer will launch new creative campaigns for all the Crown brands, including new Corona Extra “Find Your Beach” TV ads, new creative for Corona Light, and new general and Hispanic market TV ads for Modelo Especial. Pacifico and Negra Modelo will see new TV advertisements in 2013 as well, the company added. (Read our Interview with John Alvarado, Senior Director of Marketing at Crown Imports)

 

    • Phoenix Suns
      The Phoenix Suns  have launched a Spanish-language website aimed at Hispanics fans. The site features translated content from the English-language Suns.com website.Market estimates show Hispanic fans make up as much as 30 percent of Suns supporters as well as the fan bases of the Arizona Cardinals and Arizona Diamondbacks.“We have received an incredible amount of support from our Spanish-speaking fan base over the years,” said Suns President Jason Rowley. “The new website offers our loyal fans a new channel and a new way to follow the team, in addition to providing our marketing partners a platform to connect with the Hispanic community here in the Valley.”

 

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