Article originally published on Orlando Business Journal
Many decision makers struggling to increase sales and stay ahead of their competition don’t understand how impactful the Hispanic market could be for their businesses.
Some executives feel that since they haven’t done any outreach in the past and they have low market penetration, it’s not necessary to invest in this target audience.
However, Hispanics are emerging as a powerhouse of economic influence.
The success of any business will depend on how open-minded executives are in reacting to market challenges and trends, finding new opportunities and embracing new audiences. For example, a combination of innovation, creativity and adaptable leadership made companies like Apple and Starbucks who they are today.
So, if you multiply your profit margins by the amount of Hispanic customers living within a 5-mile radius from your stores, how much money are you leaving on the table?
Here are three helpful tips to help you better target the Hispanic market:
- One size doesn’t fit all: Most firms approach the Hispanic market as an outreach of general market business practice or an extension of a brand or business unit-specific strategies. Worse still, they have their agency simply translate their Anglo campaigns into Spanish. Instead, develop culturally relevant messages that relate to the Hispanic audience. Prove that you understand their needs and they will become your brand evangelist. A great example of this is the Toyota “Somos Muchos” campaign, which was designed to link Latinos’ pride in their heritage with pride in being a Toyota owner.
- Complexity is unique: The Hispanic market is complex. But, it is no more complex than developing a strategy for the other 260 million people in the U.S. who live in different regions, have different cultural influences, dialects and accents. We manage to target them just fine. The good news is what Hispanics have in common and bonds them together as a strong group is they share one language — Spanish. Plus, they all want the American dream — to work hard, raise a family and fulfill their dreams. So, your marketing efforts should appeal to their cultural nuances. Be a part of their community. Get to know them so you can gain their trust. For example, JC Penney’s “Pulse” campaign did a great job showing U.S. Latinas embracing soccer, which is highly popular in South America. In Latin America, soccer is viewed as a sport played by males, compared to the U.S., where females play this sport as well. The idea was to embrace millennial Latinas through soccer and appeal to the passion that Hispanics have for this sport.
- Make the right investment: To grow your business, you have to expand to new markets. Did you know that Hispanics represented more than 47 percent of the growth in consumer spending across categories in 2013? Hispanics are a long-term investment that will pay off with greater return on investment. The first step is to be committed. Set up a reasonable budget and a Hispanic marketing plan. Stick to it and grow it from there.
The future of your company is in your hands. Invest in research and analyze what your competition and industry are doing. Make sure you know how to introduce your brand to the Hispanic community the right way and have the right resources to respond to this demand.
People will remember how you presented your brand and the impact you produced in their community. Sales will increase and they’ll be knocking on your door, with a very large community family in tow, in the blink of an eye.