Planning to Market to Hispanic’s? Part 4 by Melissa Adams
Ederick Lokpez is a native from Venezuela with more than 17 years of marketing experience. He began his career in the consultancy world servicing Fortune 500 clients in Latin & South America creating and executing CRM (Customer Relationship Management) programs for Trans-national companies. In 2003, Mr. Lokpez immigrated to the United States where he quickly identified the need to better serve multicultural segment.
His professional background and personal experience as an immigrant provide him with the required blend of marketing expertise and knowledge of Hispanic drivers to create and implement strategies designed to succeed in the U.S. Hispanic market. Since his arrival in the United States, Mr. Lokpezhas worked with Fortune 500 companies such as UnitedHealth Group, Wells Fargo and Staples, creating and executing multicultural initiatives.
During Mr. Lokpez’ presentation, we explored some of the most common problems organizations encounter when launching a Hispanic strategy and why it can lead to failure.
The first thing Mr. Lokpez discussed was some important facts that every entrepreneur interested in marketing to the Hispanic community should be aware of. If you want to take a deeper dive into the growth of the Hispanic community then check out my post Collectively Money Is Power . Mr. Lokpez pointed out some interesting fact that’s I didn’t know and I try to stay abreast of the news in this area.
According to Mr. Lokpez “Hispanics in the U.S. make up 16.3% of the population”, he also said “the Hispanic population grew 43% over the last decade.” That is amazing numbers but what I really found amazing was that Hispanic growth is mainly by births. According to Mr. Lokpez “72.8% of Hispanics are born in the U.S.”
Too often I hear about businesses that just want to translate their marketing materials to Spanish but Mr. Lokpez reports that 62.7% of Hispanics are proficient in English.
A couple of other cool facts before we discuss Mr. Lokpez’ presentation:
A. Hispanics average age 28
- Native born average age 17
- Foreign born average is 38
B. Hispanic spending power exceeds $1.3 trillion in 2012
C. 1 in 4 Babies in the United States is Hispanic
D. Hispanic Education attainment has increased in the last decade
- Today 48% are graduating from high school
- 26% achieve a college degree
I also found the the most interesting information to be that
“Hispanics Represent 32% of the 0 – 17 year olds in America, while only 7% of the population are Hispanic and in pre-retirement or retirement ( 55 and older). This means that the Hispanic American consumer actually a young consumer.
How do we put all these facts into perspective? Well I am glad you asked because that is what Mr. Lokpez covered next. He asked the room of executives and marketers “what does it all mean?”
Mr. Lokpez’s answer
- Hispanics will continue to grow at a rapid pace
- Hispanics are spreading out of the “traditional” Hispanic markets, expanding across the nation
- Hispanics are earning more and becoming sophisticated consumers
- With a foot in each culture Hispanic differentiate themselves by maintaining their heritage and adopting Anglo behaviors
- The marketplace will continue to change and evolve as Latinos Americanize and Americans Latinize
- Hispanics are underrepresented in the professional arena
Mr. Lokpez l Hispanics represent the consumer opportunity of the present and future. As an entrepreneur you need to be on the verge of emerging consumer markets. Entrepreneurs should look for opportunities, you also need to be able to recognize when a concept has the potential to become something tangible and turn into dollars. It all comes down to recognizing opportunities. Mr. Lokpez says “it’s important to have alignment ‘be ready’ timing is everything”. “Opportunities are built using a combination of your ideas and entrepreneurial creativity mixed with market need and good situational timing”( Defining the Opportunity).
So “Are you ready?” Mr. Lokpez points out “to achieve long term success, Hispanic strategies must prove their benefits to the organization’s long term growth.” What this means is everyone should be onboard with the idea. Multicultural success requires support and involvement from all departments. If you are an entrepreneur you usually work alone so to you this means incorporating a Hispanic Strategy into your business plan, and marketing plan. Then follow through to build long term relationships with your Hispanic customers.
Mr. Lokpez says most companies that start marketing to Hispanics fail early because they are not ready. He offered us five mistakes we should avoid if we are planning to market to Hispanic consumers.
- Avoid saying “Hey, you speak Spanish! Congratulations on your new job!” Don’t select team leaders based on a language skill. Don’t disregard thier professional skill. Marketers who understand multicultural marketing regardless as to their culture will understand the terrain and it just makes more since. I remember what my mother used to say about her small retail business “if it don’t make money then it don’t make sense”.
- Avoid “Believing it is all about language” Remember marketing to Hispanics is not all about Spanish. He Says “Multicultural marketing is about leveraging cultural and emotional queues to capture your audience’s attention” He says language is very important but do not base decisions solely on language.
- Avoid thinking “because they are Hispanic it mean’s they are the appropriate target audience.” All target markets need segmentation don’t assume they will buy your products because you advertised in Spanish. The advertising, the product, and your marketing strategy needs to be on the mark. You should add Hispanic or multicultural as an additional layer to your existing segmentation. If you are already marketing your product to women what do you need to do to make that same product accessible to Hispanic women?
- Avoid thinking “ all things translate the same”Mr. Lokpez says Do not just translate, Trans-Create when adapting ensure cultural relevance and sound messaging. He says when addressing customers in a foreign language rule of thumb is to keep language at a fifth grade level. This does not mean that the people you are advertising to are ignorant it means you need to make sure that your message can be understood on many levels. He says “Some of marketing’s greatest disasters have been due to inappropriate translations and cultural insensitivity. This is true for all languages not only Spanish Mr. Lokpez showed us some great examples of “Marketing messages lost in translation.” One great example is the 2012, Nike Black and Tan it is named after a black and tan colored alcoholic beverage made by mixing stout and lager–usually Guinness and Harp or Bass–in a pint glass. What “Black and Tan” means to the Irish community is a different story: Mr. Lokpez says “In the 1920s, a British paramilitary group, known as the “Black & Tans,” used brutality to suppress an armed Irish Revolution, and it was known for its ruthless attacks against Irish civilians”.
- Remember “Spanish has legal implications…are you discriminating against your customers?” Before you answer think about this, Mr. Lokpez says “If you service in Spanish, you may need to go to court in Spanish”. He also says it is unfair and potentially illegal to market in Spanish and provide fine print in English. I agree I don’t want to buy a product and get customer service for the product in Mandarin, that’s not fair only because I do not speak Madarin (wish I did BTW). Mr. Lokpez actually offered up some really interesting facts about the legal side of marketing to Hispanics. I found it very interesting to learn that “in some industries it is illegal to create products that discriminate against a specific market segment.” As entrepreneurs it’s important to know or learn about the legal obligations, implications and ramifications of your business. Legal issues also accrue incremental expenses so Mr. Lokpez says adding Legal expense’s to your marketing cost is the best practice.
So are you ready to market to Hispanics?
Mr lokpez says” If you are, remember it is not a short term strategy: it is not a standalone tactic. It is a long term commitment and investment that will help grow your business” I hope you have really thought about “Opportunties in the Hispanic market”
If you have read this far then you are already ahead of your competition keep reading my blog and others like it. Learn about the factors that can impact your business.
So back to the main question “Are you Planning to market to Hispanics?” and if so Mr. Lokpez would ask you “Are you Ready?”
If your Planning to Market to Hispanic’s and you want to learn how let Stanton Adams Consulting introduce you to diverse consumer’s, suppliers and partners Learn More.