Fluency Test

When the 2000 Census revealed that one out of eight U.S. residents is of Hispanic descent, most brands jumped on the bandwagon. “We joked that America in 2000 was coming to its ‘census,’” says Bonnie Garcia, president of San Antonio-based Market Vision, a Hispanic specialty supplier.

Today, Latin influence on the mainstream culture is almost seamless, with Jennifer Lopez at the top of the charts and Dimension Film’s Spy Kids 2 centered on a Hispanic family. Twentieth Century Fox greenlighted the romantic comedy Papi Chulo, and The Kids WB added to its 2002-2003 lineup Mucha Lucha, an English-language cartoon that celebrates Latino culture.

“Hispanic culture is so much a part of pop culture these days,” says Suzanne Kolb, executive vp-marketing at The Kids WB, Burbank, CA. It’s also a big part of corporate culture: Walt Disney World’s internal newspaper is now bilingual.

Hispanics are also making their economic power known. Hispanics bought 2.3 million new cars last year, 13.3 percent of new cars sold — much higher than expected, according to CNW Marketing Research, Bandon, OR.

“Look for a boom in sampling to Hispanics in 2003,” says Jesse Reif, vp-sales at Chicago-based sampling and events specialist Euro RSCG Impact. “That’s where everything is going.”

In a few more years, Hispanic marketing will be mainstream marketing. Then the standard practice of simply translating English-language campaigns won’t work. (Many American-born Hispanics don’t have a good grasp of Spanish anyway.) Even original Spanish-language campaigns sputter without appropriate reference points, since Hispanic cultures can vary dramatically.

Themes important to Hispanic consumers include family, community, and youth.

“If you’ve got tons of cash, then by all means segment,” says Aida Levinson, co-chairman and ceo of Miami-based Publicis Sanchez & Levitan, the Hispanic arm of Publicis. “But you can make an appealing national campaign that has common elements” for all segments of the Hispanic population.

Chivas Regal’s new Spanish-language campaign is “overall the same, but we may tweak it a bit depending on the market,” says brand manager Saul Sola. “We might emphasize something for Mexicans in Los Angeles or Cubans in Miami.”

Walt Disney World has targeted Hispanics for five years with TV spots, direct mail, and on-premise promotions. Last year partner McDonald’s ran vignettes on Telemundo as part of the theme park’s 100 Years of Magic campaign.

“This is a natural market for us,” says Linda Warren, executive vp-marketing and brand management for the Lake Buena Vista, FL-based park.

Kmart Stores ran its Mamá Es Una Estrella (“Mom is a star”) sweepstakes for two weeks around Mother’s Day, with in-language P-O-P at stores in heavily Hispanic neighborhoods in Miami, Houston, Chicago, New York City, and Los Angeles. Shoppers entered their moms in-store or at univision.com to win a trip for two to Miami with a day at the Doral Resort spa, a tour of Univision Studios, and lunch with Univision stars. GlobalHue, San Antonio, handled.

“We’re celebrating moms and how important they are to the Hispanic family,” says Susan Dennis, spokesperson for Troy, MI-based Kmart.

Be careful how you structure prizes, advises Fernando Fernandez, senior vp-group account director at The Bravo Group, New York City: “Offering a trip for two around the world won’t work because they’re not going to leave their families for that long.”

There are 12.3 million Hispanic-Americans under 17 — the biggest group of kids of any ethnicity, per 2000 Census data.

To reach new drivers, Toyota Motor Sales ran El Viaje de Tu Vida (“The journey of your life”), a summer tour that put soap opera stars Paola Rey and Manola Cardona in 2003 Matrix and Corolla car models to hit hot spots in New York City, Chicago, Miami, Dallas, and Los Angeles. The tour — which was broadcast on Telemundo — touted the cars’ youthful image to young Hispanics. Toyota may do a fall tour for its 4-Runner SUV. Conill Advertising, Torrance, CA, handles.

The High Life

Marketers are adopting an upwardly mobile message as the ranks of Hispanic professionals increase. Pernod Ricard, which recently acquired Chivas Regal, teamed up with fashion magazine Glamour en Español in June for the Chivas Regal Fashion Showcase, which pitted Hispanic fashion designers against each other Miami. The winner’s creation was selected as the next Chivas Regal uniform. Chivas is also sponsoring community projects, such as the Young Hispanic Business Leader Recognition program, honoring local businesspeople.

Similarly, beer brand Tecate is sponsoring Adrian Fernandez, a Mexican who is the only driver-owner on the CART racing circuit. “Racing is huge with Mexican-Americans,” says senior brand manager Andres Siefken. “It’s a very expensive sport and it’s very inspirational to have a Mexican driver who also owns his team.” Tecate just wrapped up a July-September sweepstakes that awards a grand-prize trip to a CART race on Nov. 3, including breakfast with Lupe before the race. DVC handled.

In the Bodega

Marketers find independent retailers that Hispanics favor refreshingly accommodating. “When you bring the smaller retailers elements that are typically only found in big chains, you get a fan for life,” says Paul Castillo, managing director at Atlanta-based Panavista, a division of Ryan Partnership. Stamford, CT-based Mott’s introduced Clamato Campestre this summer with sampling at local retailers in Texas and California via Panavista.

This summer, Pepsi-Cola, Purchase, NY, tapped its licensing agreement with Dole Food Co., Westlake Village, CA, to test Dole Aguas Frescas in Chicago, with a possible national rollout in 2003. The drink is based on a juice-and-water recipe that Latinos make at home. Sampling in Hispanic neighborhoods supports, via Market Vision.

Nestlé’s Stouffer’s division in July launched the first Hispanic campaign in its 48-year-history. Hispanics’ low awareness of frozen dinners and tendency to forego brands they don’t know prompted Solon, OH-based Stouffer’s to sample lasagna (and give $1 coupons) in supermarkets in Hispanic neighborhoods via Publicis Sanchez & Levitan.

Hispanic Budgets Lag Behind

Hispanic marketing suffers the same budget crunch as other promotional categories, but spending may rise as early as next year.

“Right after the Census 2000 numbers came out we started getting calls,” says Ingrid Otero-Smart, president of New Port Beach, CA-based promotion shop Mendoza Dillon and president of the Association of Hispanic Advertising Agencies (AHAA). “Then Sept. 11 happened and everything dried up. We could see a big return in 2003 or 2004.”

Hispanics account for 13.6 percent of the population, but top advertisers devote only 2.4 percent of spending to Hispanic campaigns, per AHAA’s spring study “Missed Opportunities: Vast Corporate Underinvesting in the Hispanic Market.”

“Sure, a lot of brands can reach Hispanics with mainstream marketing, but there is a significant portion that doesn’t speak English,” says Otero-Smart. Among the top 60 advertisers, only four — Sears, Colgate, Hyundai, and MCI — devoted at least eight percent of their total marketing allocation to Hispanics, per AHAA. Categories that have invested most in Hispanic campaigns include food and beverages, food services, and personal care. Those investing the least include computer makers, travel/entertainment, pharmaceuticals, the U.S. government, auto makers, securities, and specialty retailers.