— 21 May 2007
Latino soup for the General Market soul: Leveraging “the Latino” as a strategic tool for general market marketing
Not long ago, the Hispanic market was considered marginal by many businesses, being perceived as a largely immigrant group with income, language, and educational limitations. Today, with the commoditization of the concept of acculturation and the emergence of bicultural TV networks, no one argues that Hispanics are an appealing market segment that goes beyond the classic preconceptions to encompass more affluent, hip, bilingual and bicultural consumers. While this shift from low value to high value is important, there is an emerging shift that promises to elevate the role of Hispanics even to a higher level: Hispanics are moving from being a market in itself to being a strategic tool for competitive advantage in the general market. Those who chose to leverage the influencing power of “The Latino” in the crowded general market will profit from the next in strategic marketing.
The influence of Latino culture in food, youth, entertainment and media are increasingly changing the overall American experience. This influence extends to different ages and ways of living. For boomers aspiring to retire, a house in Mexico is an appealing option. For American youth, Latino teens are providing much inspiration and leadership in the never ending pursuit of coolness and uniqueness. Latino stars have stolen the hearts of many, and we hear everywhere Spanish words being incorporated into the daily American lexicon. Unquestionably, this influence equates to business opportunities of all sorts. The key to tapping into these opportunities lie in understanding biculturalism as this is the true engine of the Latino influencing power, as well as understanding interrelationships between Latinos and general market consumers-from both sides.
Understanding the role of biculturalism
Biculturalism has worked as a bridge between foreign Hispanics and Americans, providing the context where Latino elements are recreated to meet the American culture in a way that appeals general market consumers, as well as adapting American culture to the Latino reality. In this sense, bicultural Latinos influence their less acculturated counterparts as well as general market consumers. In addition, Bicultural Hispanics also act as “media police”. Since this group consumes media in both Spanish and English, they are keen to observe discrepancies when companies approach segments with inconsistent messaging and tone. Since bicultural Hispanics and general market consumers are exposed to English channels, marketing tapping into Latino influence must be guided by cultural authenticity and relevance.
In our experience, the best way to understand bicultural Hispanics is by studying all Hispanics across the acculturation scale. This allows for understanding their values, sources of inspiration, and self- perceived role within their nuclear and community circles. In practical terms, addressing their influencing and culture policing roles can be accomplished through integrated marketing campaigns where messaging and tone consistent across both English and Spanish channels.
If this sounds too far out, consider the multi-level campaign from The Home Depot, featuring an identical TV spot in Spanish and English with something appealing to all levels of acculturation. In the TV ad, a bicultural Hispanic is featured finding a product from Mexico from The Home Depot. For foreign born Hispanics, it helps reconnect to his native country, for US born Hispanics it helps to reconnect with their heritage. This is an excellent example of how finding a story and imagery that resonates at all levels of acculturation is viable. Now, in an example like this where ads are available in both Spanish and English channels, there is an opportunity to reach general market consumers in a unique and differentiated way if the messaging and imagery provided taps into positives associations derived from general market perceptions of the Latino. This we call interrelationships.
Understanding interrelationships between Latinos and general market consumers
Once a solid understanding of the bicultural Hispanics within the context of their Latino life and relative to a product category-what “the Latino” brings to the table- it make sense to take a close look at general market consumers and understand what perceptions they have of all those factors that comprise “the Latino”. The result can be a list of interrelationship between both segments. A good example is the iTunes Latino, which taps in the enormous popularity of Latino music among both Hispanics and general market consumers. The opportunity to create integrated marketing strategies to attract general market consumers and bicultural Hispanics through Latino starts and themes become apparent. iTunes could go as far as to sponsoring new Latino singers, stars, events to add color and sizzle to the general market mix- or simply put leveraging positive interrelationships.
An even more recent example is the new Goya marketing campaign with a consistent message in both languages. The campaign tries to reach both Hispanics at all levels as well as non-Hispanics. The strategic objective is to leverage the increasing interest in Latino foods by general market consumers. And while Goya is a Latino brand, the same principle of leveraging “the Latino” to appeal general market consumers holds true.
We cannot ignore that bicultural Hispanics are exposed to English media, and that they increasingly influence general market consumers through various cultural manifestations. By addressing these two realities through integrated marketing strategies a differentiation point can be attained, and “The Latino” all the sudden becomes strategic to marketing efforts. This intersection of “the Latino” and American mainstream provides endless possibilities for new business concepts, and marketing efforts. The challenge is finding positive interrelationships, themes, and imagery that resonate across segments. It will require finesse in consumer insight, strategy formulation, and execution, but the hard work should pay off.
Comments
Adrian
I think that is not anymore about levels of acculturation or even biculturalism, what we are seeing is the new american culture, brands need to start understanding that is not longer about hispanics or generalmarket, this is the new market
Targeting, segmentation and positioning needs to be done basse on the different life styles of the members of the market
Question How many Guys do you know that eat tacos, drink Corona, listen to shakira music and like soccer..Are they Gringos or Hispanic?
Un abrazo
Posted by CARLOS ULIBARRI on May 24, 2007 09:43 PM | Permalink to Comment
Adrian:
I like your take on biculturalism. Latinos are nowadays not only a market target, but the Latino culture is a market tool. Well said!
However, beyond assimilation or acculturation, the role of the Hispanic culture in today's America has a merely "soft" leverage. The Latino influence is of the affective nature. Granted, Latino ethnic food, music, and other life-essential elements of spiritual or leisurely character have an undeniable influence in America’s markets. Hopefully these elements will lead to a more significant Hispanic presence in areas such as politics, science, finance, and the corporate and academic worlds someday. Only then, a truly strong Hispanic-American biculturalism could be proudly be proclaimed. The soft leverage is a slow but good start.
Posted by Miriam Fay, Ed.D. on May 31, 2007 05:10 PM | Permalink to Comment
Thank you for your insight and perspective. While there is and will always be a need for target marketing. General market agencies are resistant to the opportunity to build meaningful advertising and messaging by increasing the Hispanic talent pool to create and direct their general market efforts. The article adds to the discussion and hopefully will help to get advertising agencies to aggressively recruit and build a staff that is more inclusive of the cultures that drive popular culture.
Posted by Carol-Tangerine-Watson, Inc. on June 2, 2007 02:13 PM | Permalink to Comment
Post a Comment
© 2008 Cheskin Added Value
A simply spot on assessment of the growing influence of the bicultural Hispanic segment - Hispanics don't live in a box, they have real impact on mainstream culture! Given that roughly half the entire US population increase last year was attributable to Hispanics, this trend is likely to become even more pronounced in the future. Marketers would do well to take notice, and adopt strategies that utilize Latino motif in both Hispanic AND general market messaging.
Well done, Adrian! - Drew Vinton, SVP Research, VOY
Posted by drew vinton on May 22, 2007 08:16 AM | Permalink to Comment