Article originally published on Orlando Business Journal
A lot of companies are wondering if the Hispanic market should be a part of their 2018 marketing plans or if they should wait another year or two.
If you’ve decided to give it a try, here are a few things you need to know.
You do not have to increase your marketing dollars to reach the Hispanic market. You just need to reallocate a good portion of your existing budget to areas or markets you haven’t reached before. That way, you can gain new clients, create a new revenue streams and consequentially generate more sales.
Typically, executives want to test the water first to decide if they are going to commit to this market or not. They call this attempt a “small pilot campaign.” It basically goes like this:
They allocate a small budget for a campaign that usually lasts one to three months. They ask their current agency to translate their current Anglo campaign into Spanish, usually with the help of the Hispanic media. They engage one Hispanic media station for this effort. They run the campaign and then they expect a high response from Hispanics.
This effort consistently will fail for the following reasons:
- You have to be committed: One to three months is not enough time to obtain a strong response from Hispanics, especially if you haven’t reached them in the past. You have to have a plan, a strategy and a strong budget for an ongoing campaign. When you do a “small pilot campaign,” you basically are testing marketing variables, for example: to see if the media or offer resonates with them. You basically are throwing something on the wall to see if it sticks. This is a waste of valuable marketing dollars you could have invested toward a proper strategy.
- Cultural relevancy is king: A marketing plan will be successful if it has a culturally relevant strategy and messaging. Let’s say you want to reach millennials and you develop a strategy based on the fact that they are the “me generation.” This strategy will not resonate properly with Hispanic millennials when you translate it into Spanish. Even though they are bilingual and you might be reaching them with your English campaign, you are not engaging them properly with your brand. Here is one reason why: Hispanic millennials have not been raised based on the fact they were given a prize when they achieved or tried for something. They grew up seeing their parents work hard to achieve the American dream, not having it handed to them. They have being inspired by this. So understanding their culture and how to influence them will be crucial for your business success. It is not just about language. It is about culture and how to appeal to them and trigger a positive behavior toward your brand.
- Don’t put all your eggs into one basket: You have to have a strong multimedia Hispanic plan to assure a successful outcome. Each media has their weaknesses and strengths. Putting all your efforts into one station doesn’t mean you are reaching the entire Hispanic market of a specific designated market area. People have different preferences in how to obtain information and consume media.
- Be patient and stay focused: Since you haven’t reached the Hispanic market in the past or you haven’t been fully committed yet, what makes you think they will respond faster than the general market? Just because you have been in the market for decades and invested 100 percent of your marketing dollars doesn’t mean they know what you are all about. Let’s put it this way, if you lived in a neighborhood for many years, but you never socialized with your next-door neighbors or invited them to your house for special occasions, how would you expect them to know who you are?
Hispanics are driving the growth of this nation. According to Nielsen, their purchasing power will reach $1.8 trillion by 2021. Also, one in four millennials are Hispanic. According to the Geoscape report “American Marketplace Data Stream 2017,” Hispanics with a household income of $100,000-plus are projected to grow 23 percent versus 12 percent non-Hispanics between 2017-2022.
Getting to know your Hispanic audience has to be a part of your priorities today. You have to earn their trust and make them feel welcome when you want to gain or retain them as clients. Remember, Hispanics prefer brands that empower their cultural relevancy.
If you want to assure a sustainable growth in your company, you must challenge your competition, influence the way your shareholders think and own that piece of the market that is becoming the new mainstream.