As I continue my series titled Planning to Market To Hispanics? This post will focus on:
S-M-A-R-T Business Growth Right Sizing the Hispanic Market
Ms. Ramirez is an experienced professional in multicultural strategy development, brand management and marketing communications. She began her marketing career in brand and category management at Nestlé. She specializes in new product development and seasonal executions for impulse-driven products.
In 2001 she chose to focus on the Hispanic market and has since worked for various agencies including Casanova Pendril Publicidad, leading account teams for clients such as The Home Depot, Ferrero Rocher, Wells Fargo and Foster Farms. Since 2003 Ms. Ramirez has been with Santiago Solutions Group, playing an instrumental role in the development and implementation of growth strategies for companies like J&J, Freddie Mac, Telscape, Money Mart, Swiss Colony Companies and Health Net. She also holds an MBA with concentrations in Marketing and Finance from the Kennan Flagler Business School at the University of North Carolina.
Ms. Ramirez presentation titled S-M-A-R-T Business Growth; I mean what entrepreneur doesn’t want to grow their business so I sat at the edge of my seat which was already in the front row. Ms. Ramirez says business leaders need to take a “deliberate approach” when it comes to growing your business. More importantly Ms. Ramirez spoke about Opportunity Right-Sizing .
Looking down the Road
Opportunity Right Sizing An application of forecasting techniques that influence the demand for a product identified as a market opportunity. It is an assessment or test of the market factors that might influence the demand for a product you have already noticed that customers are buying from you.
Another important term is:
Growth Stage: During this stage Sales volumes rapidly rise as word-of-mouth reports and your marketing efforts coax reluctant buyers to give your product a try. Growth is a stage in which rapid market acceptance results in higher profits. Now that you’ve worked the problems out, your new product is receiving substantial profits. However, the Growth Stage can also bring new challenges. Your success may bring new competitors, with the same or similar products. To learn more about what Growth and the other stage’s are click the link to Download the Product Life Cycle from my website.
As if the economic challenges aren’t enough Ms. Ramirez pointed out some of the other challenges business leaders face. She claims now more than ever before changing demographics and multicultural trends are becoming a bigger challenge for business leaders. This coupled with technology and new media, and what she calls “Societal Reset”. Great term by the way, “Societal Reset” simply means people are not spending as much as we used to, and that the workforce has changed. Due to the recession many of us have found the dynamics of our lives have changed in many ways. Well the challenges we face turn into challenges for businesses. It may become more difficult to get consumers to buy during tough times. Many entrepreneurs and businesses leaders find themselves looking for ways to survive so the topic of Growth is on a lot of our minds.
With the news of the emerging or should I say exploding Hispanic Market, many companies are asking how can we capture a share of the Hispanic market? Ms. Ramirez talked about “Go” or “No-Go” Allocation Decisions. It was interesting to learn that successful corporations select which markets to invest in according to how reasonable their Return on Investment (ROI) will be. Therefore many businesses make the mistake of “Super Sizing”.
She offers “Right-Sizing” as a more realistic growth strategy. You cannot market your product to every Hispanic they may not want or need it. You need to focus on Sub-segments, by geo-graphics, Country of origin, Socio-economics, and/or so much more. So she suggests looking at our own customer data. However she points out “many business leaders are using incomplete and inaccurate data”.
Ms. Ramirez says many organizations are “piggy backing on shallow assumptions”. Whats that mean? Businesses are going by industry data rather than conducting their own market research and relying on their own data.
Sometimes businesses are already marketing to Hispanics and they just need to focus on growing the customer base they already have. Why not take time to nurture the customers you currently serve with personalized customer service. This will increase sales through word-of-mouth alone . Ms. Ramirez says, “Hispanics are very loyal customers, of course they take a little extra attention, but once a customer, you can always count on their business.”
She also explained how some businesses use “powerful databases” and that methodologies are only useful if they capture”
Hispanic Demographics that show:
Purchase Behaviors and Motivators
Ms. Ramirez points out that for consumer packaged goods, technology and the Telecom and Entertainment sectors as well as for their retailers, Hispanic Allocation alone explains about one third of the increase in revenue growth. What this means is Hispanic consumers already purchase these types of products in large quantities the challenge is figuring out how many of them are utilizing your product. It’s also important, according to Ms. Ramirez not to “low-Ball” your share of market; it “shortchanges” the needed momentum.
Ms. Ramirez explains that Opportunity Rightsizing takes
Definition of S-M-A-R-T Growth
Sustainable= There should be a long-term view, Consistent investment and resource allocation.
What is your goal and how do you plan to accomplish it. Also who will head up this Hispanic marketing Campaign? Should you contract an expert or should you hire an experienced marketing executive. Effective growth leadership could be counted as the most important step. You also will need consistent investment and resources allocated for sustainability. The campaign needs to be funded so it can run smoothly so it’s important to plan a realistic budget. She also mentioned “malnourishing” initiatives.
For those of you who like to try to predict what the market is going to do this should be right up your alley. Research is important to your business and it’s important to take your own data and see what it says about your customers.
Aligned = Objectives, operations, incentives and accountability
The organization lays out its basic objective in its mission statement. Your objectives should guide development of supporting marketing objectives and plans. Successful entrepreneur’s state specific intentions (for example, generate a 10 percent increase in profits over the next year, or attain a 15 percent share of the market by 2015. Next we look at the company’s operations, everyone should be onboard, and the company’s major departments like production, marketing, finance, technology, and employees. There should also be incentives in place for when goals are met and accountability measures for when goals are not. For the entrepreneurs remember to keep your marketing strategy aligned with your objective.
Responsible = Net growth with revenue profit and ROI goals
Net growth is the amount your company has grown after all your planning comes to fruition. Entrepreneurs and business owners everywhere want to know what the return on investing in marketing will be. Measuring the profits generated from marketing activities can be difficult. The solution is being able to figure out what specific steps to take and getting good data on these steps. Ms. Ramirez also spoke about Social Responsibility in this section of her presentation. Developing a plan which aims to achieve long-term growth without significant or permanent damage to the environment and the economy’s natural productive capacity should be a part of your goals.
Timely = Operationalized opportunity
Again what do you expect to accomplish? Ms. Ramirez says “Pursue a disciplined, long-term outlook. Develop focused not isolated strategies, and develop front-to-back-end strategies.” In Fact she says we should use a dual approach (top-down/Bottom up) to Opportunity Right sizing. Top-Down refers to an environmental forecast of general economic conditions. It’s basically checking the market and the information helps business leaders predict industry sales and in-turn they can predict product sales. The opposite of top-down is Bottom up, which means you start with the sales estimates given to you by each sales person and you analyze. Using both approaches can help you obtain the most realistic forecast. Lastly she also spoke about tying incentives to results, and developing focused not isolated strategies. My favorite tip form Ms. Ramirez was “master Innovation” what great advice…
If you want your company to grow and remain on top it’s going to take long-term planning, and forecasting. If you’re an executive or an entrepreneur I hope you found this post insightful. You won’t learn this in Marketing 01. As entrepreneur’s we need to be aware of what the competition knows so I am grateful to Rick Aguilar and Aguilar Productions for putting together another great learning experience.
I would love to hear from you the readers, what do you think about Opportunity Right Sizing? Are you Planning to Market to Hispanic? Let us help!