How to Create Meaningful Bonds with Hispanic Consumers

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How to Create Meaningful Bonds with Hispanic Consumers AN INTERVIEW WITH: Linda Gonzalez President/CEO, The ViVA Partnership June 01, 2010 Linda Gonzalez has worked in Hispanic marketing for more

1 How to Create Meaningful Bonds with Hispanic Consumers AN INTERVIEW WITH: Linda Gonzalez President/CEO, The ViVA Partnership June 01, 2010 Linda Gonzalez has worked in Hispanic marketing for more than 20 years. At ViVA, she provides the direction for all facets of research, creative, account services, media and integrated marketing strategies. She has spearheaded award-winning work for BJ s Wholesale, Entenmann s, Foot Locker, Hallmark, Neutrogena, Presidente and Smuckers. Ms. Gonzalez spoke with emarketer s Tobi Elkin about creating genuine connections with Hispanic consumers emarketer: The VivA Partnership conducted a two-year research project examining the ways marketers interact with Hispanic consumers. What were the key findings? Linda Gonzalez: It was amazing how much of a difference there was not only between Spanish-dominant Hispanics and English-preferred or the more acculturated. Of course, the differences depended on geography, on country of origin, socioeconomic status, education level and language proficiency. We spoke with Hispanic predominantly female consumers in Miami, Houston, Chicago, Los Angeles, San Diego and other top Hispanic markets. It was interesting, because in the Miami and New York markets, the Hispanic population is using Facebook but is not using Twitter as much. They ve heard of it, but we didn t hear that lot of them who are using it. They re using Facebook and Skype. They re interacting with friends and family across town and across the world. We spoke to first-, second- and third-generation Hispanics. When we talked to

2 the first-generation Hispanics, even those who had been here for seven to 10 years, they predominantly came from lower socioeconomic backgrounds than did the Hispanics from Miami or New York. Less than 10% of the Hispanics we spoke with on the West Coast were using social media. They re aware of social media but they haven t really interacted with it much. We spoke to hundreds of people in small groups of families and friends, women ages 21 to 45. emarketer: A fairly common assumption is the more acculturated, the more interest in social media, right? Ms. Gonzalez: Yes, but it s important to acknowledge that, among acculturated Hispanics, online social networks haven t replaced offline social networks. emarketer: How are marketers missing the mark with Hispanic consumers? It looked like things were getting better and that they understood that language is a component of culture. We ve taken a few steps backward... And view communications with Hispanics as a language issue. But it s more than that. Ms. Gonzalez: Marketers, particularly the consumer package goods marketers, are looking for ways to simplify their processes and cut costs. This is definitely driven by the recession. It looked like things were getting better and that they understood that language is a component of culture. We ve taken a few steps backward, not so much the Coca-Colas and McDonald s of the world that have millions to spend on the Hispanic market and know what that value is but some of the midsized companies, which are still rather huge and view communications with Hispanics as a language issue. But it s more than that. emarketer: Can you offer an example? Ms. Gonzalez: If you re talking about banking, you translations of materials aren t going to work as far as their relationship with the category. If you have somebody who is from Mexico and they ve been here for three or four years, their relationship with that bank is one of distrust. They ve already gone through a peso devaluation, they remember their parents lost all their money in the early 80s, and so their relationship is one of distrust. They probably have never had a checking account in Mexico or, if they did have one, they haven t used any other kind of financial products. So you have to speak to them a little bit differently and not condescendingly. You need to educate, them but you can t also just translate the collateral material speaking to them as if they have the same level of education on financial products and services as general market consumers. Everybody says We re adapting it to Hispanics, and maybe what they re doing is adapting the language and adapting a little bit of what s going on, but they re really missing an opportunity to take into the cultural subtleties. emarketer: As an example, what brand comes to mind?

3 Ms. Gonzalez: Meow Mix hadn t done advertising since the brand was sold to Del Monte a couple of years ago. One of the things that we did when we were developing creative for them was to use the Meow Mix jingle: Meow, meow, meow, meow. Meow, meow, meow, meow. You know it. But it s a very Englishlanguage meow. The Hispanic target s reaction was, Oh, that s a gringo cat! We developed a campaign for Magnolia, Smuckers brand of condensed milk. Magnolia doesn t really do much in general market, so we developed everything with a Hispanic tone, because condensed milk is used much more among Hispanics than in the general market. We use it in baking, for smoothies and a lot of Hispanic kids love to just eat it by the spoonful. We developed a promotionally based campaign and did a lot of shopper marketing research. Whether acculturated or less acculturated, there are Hispanic women who find a way to look for recipes using condensed milk online. We came up with the recipes that would be relevant to the Hispanic mom. We used Hispanic sites like Univision.com and sent blasts with recipes. We made everything bilingual because we were communicating with multigenerational homes. We did signage in parking lots, in major grocery retailers, in-store demonstrations, and sampling and gave away recipe cards. We provided alternative ways that you can use Magnolia condensed milk apart from using it for baking. emarketer: What role does mobile marketing play for your consumer clients? Ms. Gonzalez: Mobile is huge and growing. It s not growing among Spanishdominant consumers but among bilingual and English-dominant Hispanics. But these second-generation kids are growing up fast. In five years, they re all going to mobile so we can t discount it. Every single client talks about mobile; every single one wants some type of mobile campaign. emarketer: What are some of the methods within mobile that are best to reach acculturated Hispanic consumers? Ms. Gonzalez: With Presidente, for example, the target is multicultural, second-generation Hispanics and the general market. The campaign starts online with display ads, a new corporate site, a Facebook page and contests. We have mobile promotions and coupons via text message. We take the campaign online, then offline, and back online again. We re planning to gather people together for reunion parties or for Presidente parties. They ve met as Presidente fans on Facebook and began posting and sharing party ideas. The Presidente campaign launches in mid-june. The general market won t know that there will be cultural cues that are Hispanic. The general market won t even see it because you re speaking to an English-speaking market. Hispanics will gravitate toward it because of the way the creative is built. emarketer: When it comes to consumer packaged goods, shopping for household, beauty brands and food, who is the decision-maker in a Hispanic household with young children? Ms. Gonzalez: It s usually the moms, but they are very heavily influenced by their kids. And they re even influenced to a certain degree by their husbands. The husbands want to make sure that the wives are buying the right brands.

4 However, the mom is the ultimate decision-maker. When she gets there, she s making lots of in-store decisions. But whatever her kids are asking for, she s going to buy. emarketer: Do Hispanic families shop together? Ms. Gonzalez: Absolutely. For moms, it s not just a burden: Shopping is a way of taking care of the family. They re also not looking for convenience in the Anglo sense of the word. They want to go somewhere where it s comfortable for them to go as a family, where the aisles are wide and easy to shop and the signs bilingual. Shopping is an experience and an opportunity to be with the family. emarketer: If you re a marketer or the retailer, whether a dollar store, a grocery chain, pharmacy chain or warehouse club, what opportunities should marketers be looking for? Retailers and marketers need to get out into the community and do their research among real families and communities. They need to go to fiestas and events, stroll markets and shop Hispanic-dominant stores. Ms. Gonzalez: The marketer and the retailer s marketing teams need to get together. Retailers have always been so merchandise- and sales-focused, because there s a lot that they can do in tandem. We ve worked with a lot of retailers to help them with what we call the Hispanic-friendly experience. This involves things like making sure shopping carts are large enough, having infant seats in stores, composition of end caps and even choosing the right music. Retailers and marketers need to get out into the community and do their research among real families and communities. They need to go to fiestas and events, stroll markets and shop Hispanic-dominant stores. You don t want to cannibalize your non-hispanic core consumer, and you re walking a kind of tightrope, but it can be done. emarker: How do Hispanic women research food products, nutritional information and beauty? Ms. Gonzalez: They still get most of their information by word of mouth. This hasn t changed that much. They re talking to their family. For the lessacculturated, their disposable income is very limited. They don t have the luxury of making a mistake, so they may find out something online or they may find new information from traditional advertising, product placement or product rep. But before they buy something that they re not accustomed to, they will talk to their friends and family. Now, they may have added Facebook to say Hey, you guys. What do you think about this? They re going to accumulate more methods, but they re still basing their purchase decisions on many factors. emarketer: Do brand marketers take Hispanic consumers level of brand loyalty for granted?

5 Hispanic consumers will be more brand loyal than the average general market consumer, but they re expecting something in return. Ms. Gonzalez: I think they do. Hispanics have always shown this propensity for being more brand loyal, and marketers have jumped on this, but it s not slam dunk anymore. Brands have to consistently show them that they re just as loyal to the consumer as the consumer is to them. Hispanic consumers will be more brand loyal than the average general market consumer, but they re expecting something in return, and if they don t get it, they re ready to move on. They don t mind paying a little bit more for things if the product gives them what they need. For example, laundry detergent for getting whiter clothes the marketer might offer a buy-one-get-one-free offer or something similar. Lessacculturated Hispanic consumers are more willing to try new products or brands emarketer Inc. All rights reserved.

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