HispanicsHispanics

Amanda Hubbard,Amanda Hubbard, Heather Clore, Beth Schwartz, Beckie Heather Clore, Beth Schwartz, Beckie

ImbodenImboden

Interesting FactsInteresting Facts• Hispanics have been around for a long time! In 1609, 11 years Hispanics have been around for a long time! In 1609, 11 years

before the Pilgrims landed at Plymouth Rock, the Mestizo (Spanish before the Pilgrims landed at Plymouth Rock, the Mestizo (Spanish and Indian ancestors) settled in what is now Santa Fe, New and Indian ancestors) settled in what is now Santa Fe, New Mexico.Mexico.

• US Hispanics will spend over $21.3 billion on local, long distance, US Hispanics will spend over $21.3 billion on local, long distance, wireless and Internet services this year, representing over 40 wireless and Internet services this year, representing over 40 percent of the lucrative ethnic telecommunications consumer percent of the lucrative ethnic telecommunications consumer market.market.

• Eight (8) million Hispanics now live in the U.S., with 90% of them Eight (8) million Hispanics now live in the U.S., with 90% of them opting to live in one of four states: California, Texas, Illinois or opting to live in one of four states: California, Texas, Illinois or Arizona. Arizona.

• 69 percent of all Hispanic immigrants send money to their family 69 percent of all Hispanic immigrants send money to their family in Latin America in Latin America

• The younger immigrants (18 to 34 years of age) and those from The younger immigrants (18 to 34 years of age) and those from the lowest socio-economic group (annual income below $20,000) the lowest socio-economic group (annual income below $20,000) are much more likely to send cash remittances than older are much more likely to send cash remittances than older immigrants or those that have achieved middle class status. immigrants or those that have achieved middle class status.

• Food plays an important role in the Hispanic culture, and is eaten Food plays an important role in the Hispanic culture, and is eaten for more reasons than just nutrition. Children are not forced to eat for more reasons than just nutrition. Children are not forced to eat foods that they resist because their preferences are respected. foods that they resist because their preferences are respected.

Hispanic – American EducationHispanic – American Education

It is a proven fact that Hispanic Americans have long lagged behind the It is a proven fact that Hispanic Americans have long lagged behind the National education averages of many existing ethnicities, but to say National education averages of many existing ethnicities, but to say that they are not intelligent is not at all fair! They only lack a formal that they are not intelligent is not at all fair! They only lack a formal

education.education.

In each category, Hispanics have less educated peopleIn each category, Hispanics have less educated people

Education LevelAmerican

s %Hispanic

Americans %

Some school K-12 36,000,000 19.6% 8,000,000 47.6%

High School Graduate 52,000,000 28.6% 4,000,000 22.1%

Some college, No degree 38,000,000 21.0% 3,000,000 15.6%

Associates Degree 11,000,000 6.30% 800,000 4.3%

Bachelors Degree 28,000,000 15.5% 1,200,000 6.7%

Graduate or Professional Degree 16,000,000 8.9% 700,000 3.8%

Education – Facts and InsightsEducation – Facts and Insights

FACTS:FACTS:• Children under 5 are less likely to Children under 5 are less likely to

be enrolled in early education be enrolled in early education than Caucasians or African than Caucasians or African AmericansAmericans

• Today 1/3 of Hispanics are under Today 1/3 of Hispanics are under the age of 18, and by 2025 they the age of 18, and by 2025 they will represent 25% of the K-12 will represent 25% of the K-12 populationpopulation

• The high school drop out rate is The high school drop out rate is higher in Hispanics (according to higher in Hispanics (according to US Dept of Edu.), and in 1998 US Dept of Edu.), and in 1998 30% aged 16-25 were drop outs.30% aged 16-25 were drop outs.

INSIGHTS:INSIGHTS:• The overall lack of formal The overall lack of formal

education in Hispanics is in part education in Hispanics is in part due to their cultural norms and due to their cultural norms and values – a tightly knit family values – a tightly knit family and working to help pay the and working to help pay the family’s bills is more important family’s bills is more important now than slowly getting an now than slowly getting an education.education.

• This does not mean that This does not mean that Hispanics are less intelligent – It Hispanics are less intelligent – It just means they lack the formal just means they lack the formal education that Americans have.education that Americans have.

Hispanics have lagged in schools for many reasons, some of which include:•A strong work ethic that forces them into jobs prior to graduating high school•Families often remain living in Spanish only speaking neighborhoods

Their high school graduation rate has climbed to 57% since 1980, but this is still short of the 88% for Caucasians and 80% for African Americans

Implications:

This lack of formal education makes it difficult for Hispanics to achieve much significant career advancement.

Core ValuesCore Values

•FamilismoFamilismo•Family is at the center of their daily lifeFamily is at the center of their daily life

•PersonalismoPersonalismo•Importance of close interpersonal relationships Importance of close interpersonal relationships and friendshipsand friendships

•RespetoRespeto•Treating others with respectTreating others with respect

•MachismoMachismo•Belief that a man is the head of the familyBelief that a man is the head of the family

•MarianismoMarianismo•Emphasis on the worship to the Virgin MaryEmphasis on the worship to the Virgin Mary

•Hard WorkingHard Working•Strive to create a better life for their family.Strive to create a better life for their family.

Motivators/GoalsMotivators/Goals

•General Life General Life GoalsGoals– close-knit familyclose-knit family

– ReligionReligion

– Group Group vs. vs. Individual goals Individual goals

•As A ConsumerAs A Consumer– Influenced by sale Influenced by sale

items and will by items and will by new brands if they new brands if they are on sale are on sale

– Very price sensitive Very price sensitive

– Hispanic elements Hispanic elements very important very important

LifestyleLifestyle

• Approximately 20% of Hispanic families Approximately 20% of Hispanic families live in povertylive in poverty

• Only 46% have graduated from high Only 46% have graduated from high school; 11% have a Bachelor's Degree or school; 11% have a Bachelor's Degree or higherhigher

• Extremely close knit familiesExtremely close knit families

• Although in the US, Hispanics are very set Although in the US, Hispanics are very set on keeping their culture and languageon keeping their culture and language

Shared Early Life Shared Early Life ExperiencesExperiences

• A lot of struggle for Hispanics in the USA lot of struggle for Hispanics in the US• 1954 – Hernandez vs. Texas1954 – Hernandez vs. Texas• 1959 – Fidel Castro takes power in Cuba1959 – Fidel Castro takes power in Cuba• 1962 – 1962 – CésarCésar ChávezChávez creates United creates United

Farmerworkers of AmericaFarmerworkers of America• 1974 – Congress passes EEOA1974 – Congress passes EEOA• 1994 – NAFTA eliminates tariffs on most imports 1994 – NAFTA eliminates tariffs on most imports

and some exports with Mexicoand some exports with Mexico• 2000 - Elián González was returned to his father 2000 - Elián González was returned to his father

after his mother died trying to escape from Cubaafter his mother died trying to escape from Cuba

Products and Products and ServicesServices• Hispanics often do not make online Hispanics often do not make online

purchases due to lack of trustpurchases due to lack of trust

• Hispanic community’s purchasing power Hispanic community’s purchasing power represents the 9th largest economy in the represents the 9th largest economy in the world world

• High-end electronics: camcorders, High-end electronics: camcorders, computers, DVD player, videogame computers, DVD player, videogame systems, satellite dish, cell phonessystems, satellite dish, cell phones

• Spanish-language radio and televisionSpanish-language radio and television

Spending And Saving Spending And Saving HabitsHabits• Spending Spending

– Buying power at Buying power at $581 billion$581 billion

– High-end electronicsHigh-end electronics

– Cell phonesCell phones

– Children's clothingChildren's clothing

• SavingSaving– 43% of Hispanic adults 43% of Hispanic adults

said that their top said that their top financial priority was financial priority was saving for retirement saving for retirement

– many Hispanics still many Hispanics still believe that the safest believe that the safest place to save their place to save their money is at home money is at home

– Hispanics are Hispanics are newcomers to investingnewcomers to investing

Advertising and MediaAdvertising and Media• OnlineOnline

– Growing market – 1/3 plan to Growing market – 1/3 plan to buy computer in next yearbuy computer in next year

– Face to face contact with Face to face contact with productsproducts

– Credit cardsCredit cards

• PrintPrint– Spanish language = Spanish language =

emotionemotion– All SpanishAll Spanish– Incorporating Spanish Incorporating Spanish

wordswords• California Wellness California Wellness

FoundationFoundation

• RadioRadio– 12 million listeners12 million listeners– 50% between 18-4050% between 18-40– 40% 2 or more children40% 2 or more children

• TelevisionTelevision– Spanish channels – easy to Spanish channels – easy to

reach Hispanic adultsreach Hispanic adults– English channels – reach English channels – reach

more Hispanic youthmore Hispanic youth• WWF SmackdownWWF Smackdown

• CBS Latino Grammy AwardsCBS Latino Grammy Awards

• FOXFOX

• NickelodeonNickelodeon

Companies who Market well Companies who Market well to Hispanicsto Hispanics

• California Milk Producers California Milk Producers BoardBoard– ““Are you Lactating?”Are you Lactating?”– Running out of milk not funnyRunning out of milk not funny– ““Y usted, Y usted, ¿Les dio suficiente ¿Les dio suficiente

leche hoy?” & “Familia Amor leche hoy?” & “Familia Amor Leche”Leche”

• Univision/GalavisionUnivision/Galavision– Hispanic adults/Hispanic youthHispanic adults/Hispanic youth

• Pacific Health Care Pacific Health Care SystemsSystems– Hired a Hispanic to market to Hired a Hispanic to market to

HispanicsHispanics– Latino Health SolutionsLatino Health Solutions

• Procter & GambleProcter & Gamble– $90 million (10% of budget)$90 million (10% of budget)– Gain - “The scent of clean”Gain - “The scent of clean”– Early 2000 – multicultural Early 2000 – multicultural

marketingmarketing– 2003 Grammy’s - Crest Ad2003 Grammy’s - Crest Ad

• KrogerKroger– SupermercadoSupermercado– Buena comida – 105 itemsBuena comida – 105 items

• GerberGerber• SearsSears• Western UnionWestern Union

What to do as MarketersWhat to do as Marketers

• Recognize the Hispanic buying powerRecognize the Hispanic buying power

• Market in Spanish or bilingualMarket in Spanish or bilingual– From manufacturer to sellingFrom manufacturer to selling

• Hire Hispanics for marketingHire Hispanics for marketing

• Not all Hispanics are the sameNot all Hispanics are the same– East coast vs. West coastEast coast vs. West coast

• Further segmentation will be neededFurther segmentation will be needed

Summary:Summary:

• Due to their strong work ethic and their desire to live in closely knit Due to their strong work ethic and their desire to live in closely knit Spanish-speaking neighborhoods, Hispanics have less formal Spanish-speaking neighborhoods, Hispanics have less formal education than Americans. This does not mean they are less education than Americans. This does not mean they are less intelligent, it just hinders their ability to progress to higher levels of intelligent, it just hinders their ability to progress to higher levels of employmentemployment

• Hispanics are very in touch with who they are and where they come Hispanics are very in touch with who they are and where they come from; because of this, they appreciate their heritage and tend to from; because of this, they appreciate their heritage and tend to value the traditional ideas of family and religion.value the traditional ideas of family and religion.

• Hispanics are changing the way America does business.Hispanics are changing the way America does business.• Hispanics' buying power is at $581 billion and they tend to feel safer Hispanics' buying power is at $581 billion and they tend to feel safer

by by not keeping their money in bank accounts. not keeping their money in bank accounts.

• As marketers, it is important not to underestimate the Hispanics As marketers, it is important not to underestimate the Hispanics buying power. It is then vital to find ways to market specifically to buying power. It is then vital to find ways to market specifically to them – Recognize that they are not all the same, hire Hispanics to them – Recognize that they are not all the same, hire Hispanics to market to Hispanics, and market products that we know they desire. market to Hispanics, and market products that we know they desire.

Questions?Questions?