To say that the Hispanic population growth is outpacing other groups within the U.S. is a major understatement. The U.S. Hispanic segment as a whole is also becoming more educated which increases employment opportunities for higher paying jobs. This group’s high population numbers and steady income climb make it a highly desirable target market for businesses that provide the right goods and services.
For businesses that can show real value for the product or service, the U.S. Hispanic segment may hold opportunities for a real windfall. The key to gaining access to this lucrative market is to know the target audience. Is the target audience first generation Mexican-American Hispanic households that have strong family values? Is the target audience third or fourth generation Caribbean Latinos who may still have family values but also have a desire to generate wealth through strong work ethics? Those businesses who fail to make distinctions among the various subgroups within the Hispanic market will probably not be successful in the long run.
Products and Services within the Hispanic Community
Some businesses will gain entry into the Hispanic market segment easier than others just because of the types of products and services offered. Although the U.S. Hispanic segment is a diverse group, research is showing that the group as a whole has shown preferences for certain goods and services while traditionally avoiding others. Some industries that show Hispanics as the source of a significant percentage of sales are the food and beverage (reference: “U.S. Hispanics Propel Real Growth in Food, Beverage, and Restaurant Sectors,” Latinum Network, April 2010), automobile, real estate, and insurance markets.
As Hispanic household income rises, these households purchase more automobiles and homes (reference: Census Bureau second and third quarter 2011 Housing Growth). The housing bust and financial crisis in the U.S. was the only thing that seemed to slow the momentum of Hispanic home buying (reference: “Hispanic Homeownership Rate May Influence Housing Market”, thinkglink.com, Samuel J. Tamkin, February 2012). Research has shown that Hispanics have warmed to the insurance market seeing insurance as a way to help protect and provide for their families’ futures (reference: “Latino Market Heats Up”, insurancejournal.com, Kevin O’Reilly, July 2003). Espanol Seguros and the American Family Insurance are two companies who have been executing a Hispanic marketing strategy and are connecting Hispanic consumers with bilingual insurance agents.
Industries that have failed to get a significant foothold into the Hispanic market segment are the financial services and credit card companies. Many first generation Hispanic households have lower income compared to the general population, and may not even utilize banks, financial institutions, or credit cards (reference: “Hispanic Attitude Regarding Financial Services,” Hispanicmarketadvisors.com, 2009). However, there is one credit card company that has a product named 24/7 Card who is actively engaging with Hispanic immigrants and is using the celebrity Manny Pacquiao as one of the faces of the company. More affluent Hispanic households may use financial institutions but still remain aloof to credit card companies because they are educated and are culturally averse to carrying debt.
Marketing to the Hispanic Community
Internet marketing is an effective way to reach both Hispanic and non-Hispanic audiences alike. However, marketing to a targeted Hispanic audience may be a little more complicated than just translating the English words into Latin American Spanish or Castilian. Once the targeted Hispanic audience has been identified, one must develop a website design with powerful graphics as well as culturally, customized content. The visual and written presentation must connect to the targeted audience’s values and distinct language dialect.
Search engine optimization (SEO) and internet advertising must be a part of any business’s marketing strategy upon establishing the right internet presence. SEO is used to improve a website’s search engine rankings. High search engine rankings equate to more targeted internet traffic being driven to a business’s website. Outsourcing the SEO for a Hispanic website to a company like Hispanic Market Advisors℠ that specializes in bilingual internet marketing is probably the easiest and fastest way to increase the website’s visibility among the targeted audience. The use of social media tools is also a good, low investment way to advertise and build company brand image within the Hispanic community.
If you’re interested in a need analysis to determine whether your biz can benefit from our services, contact Hispanic Market Advisors℠ at 1-877-HMA-FITS (462-3487) or by completing this online form: Contact us.
ABOUT THE AUTHOR
Sebastian Aroca is an entrepreneur and a customer centric professional. He co-founded Hispanic Market Advisors, a company that offers Spanish SEO and English to Spanish translation services. Sebastian has over 10 years of professional experience managing regional customer programs and client acquisition strategies in the areas of sales and marketing communications, primarily for the U.S. Hispanic and Latin American & Caribbean markets.