Latin-Pak Launches Co-op Mailings

Posted on by Chief Marketer Staff

Latin-Pak and two sister firms expect to pull in $4 million in revenue by the end of next year from new co-op mailing programs aimed at Hispanics and African and Asian Americans.

Latin-Pak, which has specialized in freestanding inserts and solo mailings, will start the Hispanic co-op this fall. The other two are slated to begin early next year.

The Hispanic package will be mailed each quarter to about 2.2 million names from the company’s database. These consumers responded to solo mailings to the Latin community over the past eight years, says Vincent Andaloro, CEO of the Los Angeles-based company.

The co-op will feature inserts from about 11 advertisers in fields like recorded music, consumer packaged goods and financial services, as well as a sweepstakes offer for a vacation in Cabo San Lucas, Mexico. The pack will go to households in several California cities, as well as to Austin, TX, Chicago, Dallas, Fort Lauderdale, FL, Phoenix, and towns in Hudson County, NJ.

The census bureau notes that 35 million Hispanics — 13% of the overall population — live in the United States. By 2010, that number is expected to grow to 65 million. Hispanics command purchasing power of an estimated $452 billion per year, yet only 2% of the average U.S. marketing budget reportedly goes toward serving them.

For example, Hispanics generally receive an average of 20 direct mail pieces a year, compared with about 300 for the general U.S. population.

Andaloro feels this is a good time to start the co-op.

“We tried this three years ago but it was premature,” he says. “But recent census information led us to believe that the time is right now.”

The Asian-American co-op will be mailed by sister company Asian-Pak to some 1.5 million with Chinese, Japanese, Korean, Vietnamese, Filipino and Indian backgrounds living in such cities as New York and San Francisco.

At the same time Black-Pak, another sister company, will roll out a co-op targeting 2 million African Americans on Latin-Pak’s house file. Black-Pak president James Scott says he plans to mail to Atlanta, Detroit, Los Angeles, New York, Philadelphia and Washington. He hopes to attract as many as 20 advertisers.

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