Ever since the 2000 Census data broadcasted the estimated 44 million Hispanics living in the United States, there has been a surge in advertising in Spanish to target this growing market. Furthermore, marketers’ hunger for Hispanic customers has grown in step with each new demographic report predicting that the population of Hispanics, currently accounting for 15% of the total population,  will comprise nearly a quarter of the United States population by the year 2050. As a result, there has been an increase in the use of Spanish-language campaigns which has proven to be an effective tool to target this lucrative market.

A trend-setter in this field is Hershey Foods with its television, radio and magazine advertisements in Spanish to promote its chocolates and candies. In fact, they even chose the Latina pop star Thalia to be the celebrity endorser of their products. Thalia appeared in numerous television commercials promoting caramel kisses and white chocolate Reese’s peanut butter cups. Other examples of campaigns translated into Spanish in an effort to target Latino consumers include:  McDonald’s Me encanta (“I’m lovin it”), Chevrolet’s Súbete (“Get in”), and T-Mobile’s Estamos juntos (“We’re all together”) among many others.

Though some question whether the use of Spanish-language advertising is a fruitful investment, it has proven to be an effective tool to target the Latino population. A recent study from ad agency Marketing Bodega found that 64 percent of over 750 people surveyed were more likely to purchase a brand that advertises in Spanish. This is one of the many studies that support the idea that Spanish is the most persuasive language for the majority of Latinos. For this reason, new developments in the field of advertising in Spanish and an increased prevalence of Spanish campaigns will yield higher sales for companies in years to come.

By Karina Lairet

Many retailers throughout the country currently purchase products in bulk directly from manufacturers and distribute them using their private brands. One example is Wal-Mart’s Great Value line which offers hundreds of household consumable items including sliced bread, frozen vegetables, frozen dinners, canned foods, light bulbs, trash bags, and many other traditional grocery store products. Recent market trends indicate that Hispanic consumers are purchasing these private brand products more and more frequently in comparison to well known national labels. In fact, their lower prices and consistent quality make these products a “great value for the money”, a statement that 7 out of 10 Hispanic consumers agreed with in a recent survey.

The business of selling private brand products has grown primarily due to the benefits for both retailers and consumers. Selling these products gives retailers more freedom and flexibility in pricing, higher profit margins, and more control over quality. A new study by the Food Marketing Institute (FMI) Private Brands Group presented statistics regarding increased consumption of these by the Hispanic community. According to the report “Se Habla Isn’t Enough: Private Brands Among Hispanics 2009”, 37 percent of Hispanic shoppers are purchasing more private brand products this year and 25 percent plan to buy more in 2010. The report also found that private brands account for 31 percent of household grocery expenses among Hispanics, averaging $85.94 every two weeks out of a total of $266.63.

The most popular private brand categories for Hispanic shoppers include: dairy products, paper products, carbonated beverages or bottled water, and cleaning supplies. Nearly two thirds of all the individuals surveyed agreed that “private brands are just as good as national or international brands.” The increased consumption by Hispanic consumers and increased profits for retailers will surely contribute to an increase in demand for private brands in the years to come.

By Karina Lairet

In line with the strategy presented at the Consumer Analysts Group of New York Conference earlier this year, General Mills is expanding several initiatives to target multicultural consumers. The Minneapolis-based packaged food company intends to focus on three consumer groups; the largest of which is the Hispanic market. Last year alone, the company increased its Hispanic-targeted media spending by 70%, which fueled the expansion of marketing initiatives already in place and venturing into the world of digital media.

Que Rica Vida, which translates to What a Rich and Wonderful Life, is the company’s landmark Spanish-language advertising magazine. This publication features content devoted to education, health and wellness. With an overall quarterly circulation of over 350,000, Que Rica Vida is distributed free of charge via direct mail, as well as at grocery stores and community-based venues. This year, the once exclusively print campaign transitioned online launching various Spanish-language micro websites within www.QueRicaVida.com. The website is enhanced by state-of-the-art graphics, podcasts and articles written by the magazine’s regular contributors. It has quickly become an important resource for Hispanic mothers struggling to balance their multiple roles in the home and workplace.

As a result of its increased investment in Hispanic-targeted efforts, the General Mills has experienced substantial sales growth for several product lines. The most popular of these among Hispanic consumers include Cinnamon Toast Crunch Cereal, Yoplait yoghurt, and Nature Valley, which experienced a 19% growth in the past year. Motivated by Census data predicting that Hispanics will drive 53% of the population growth between now and 2015, the company is expected to continue to increase its investment to appeal to this growing consumer segment.

By Karina Lairet

Simply put, if you are going to succeed in the beer industry, you need to succeed in the Hispanic market. With nearly 70 varieties of beer marketed to Hispanics, major brewers are using novel approaches to attract potential consumers. One such example is the launch of MillerCoors’ new Hispanic tailored advertisements, which attempt to secure its place as the second-largest beer company in America.

MillerCoors is partnering with Latin superstar Daddy Yankee to promote his new album and new single at a series of sponsored events throughout the country. The campaign includes a text-based raffle where individuals text a special promotional number for a chance to attend one of six En Exclusiva events. These are a series of VIP events where fans have the opportunity to meet and greet the reggaeton singer. Daddy Yankee’s immense popularity among consumers in their twenties allows the brand to reach out to the younger generation. Most of the advertisements are broadcasted on Hispanic-targeted radio stations and in-store promotions.

Given the remarkable growth of the Hispanic market in comparison to the general market, MillerCoors’ marketing efforts have not gone unchallenged. Shortly after their new campaign aired, Heineken USA launched a Spanish Language advertising campaign for Tecate Beer. Simply titled Anthem 3, the series of three 30-second advertisements depict the journey of immigrants seeking a better life in the United States. No matter what angle each beer-producing giant has chosen, both are trying novel approaches to become the “beer of choice” of the Hispanic consumer.

By Karina Lairet

Having already established lucrative partnerships with companies like T-Mobile, Subway, Toyota, Ford and Clorox, Telemundo Communications Group is delving into the jewelry market by using a novel approach to market consumer products. Commonly known as “branded entertainment”, this form of advertising incorporates products into the plot line of a television show and subsequently gives viewers the opportunity to purchase them. The leading Spanish-Language television network is in the process of signing deals with manufacturers to integrate products specifically into their popular prime-time soap operas better known as telenovelas, which have a loyal following of Hispanic viewers.

The first line of products to be part of a pilot program includes selections jewelry manufactured by the Richline Group. Several pieces of jewelry made their debut in episodes of “The Clone”, a story of forbidden love that transcends boundaries of time and culture. Thus far, the intent is to include a variety of products into 16 of the episodes including the ones aired this summer. Additionally, Telemundo launched a website called telemundojewelry.com to give viewers the opportunity to choose from the selection of necklaces, earrings, rings and bracelets made of different metals and adorned with unique stones.

This significant marketing shift reflects the increasing prevalence of marketers seeking to reach the Hispanic community. According to a study by the Jewelry Consumer Opinion Council that interviewed a group of Hispanic consumers regarding the topic of jewelry, 75% of the respondents owned fine jewelry and more than half intended to spend over $500 on fine jewelry purchases in the following months. Given their significant purchasing power and high-end tastes, it is a wise choice for retailers to focus their efforts on this ever-growing segment of the population that purchases several million dollars in fine jewelry every year.

By Karina Lairet

Fast-food giant Wendy’s International announced that the Miami-based Bravo Group will be the company’s agency of choice for its future Hispanic-targeted advertisement campaigns. While working with the Vidal Partnership, the company spent a massive $25 million in Hispanic media last year.  In line with its brand-building strategy, Wendy’s executives selected the Bravo Group after evaluating several leading multicultural marketing agencies, all of which participated in a rigorous review process.

The Hispanic market is an important consumer segment for fast-food chains. Wendy’s aims to expand current targeted marketing efforts to gain an edge in this competitive industry. The Bravo Group has been given the task to engage and attract the more than 45 million Hispanic consumers in the country to the Wendy’s brand. This will require an integrated campaign with new television commercials, Hispanic specific website content, and an investment in the increasingly lucrative field of social media.

It is estimated that within the next ten years the purchasing power of the U.S. Hispanic market will grow to over a trillion dollars. In fact, Hispanic consumers have become one of the most important demographic growth drivers in the food and beverage industry as a whole. As a result, it is becoming increasingly important for fast-food chains to recognize the potential of this market segment and capitalize on its growth to gain long-term and loyal customers.

By Karina Lairet

With the exception of holiday promotions or the translations of general campaigns, the sector of Hispanic consumers has long been ignored by the wine industry. As a result, Beringer, one of the most prominent vineyard brands in the United States, is implementing a novel marketing strategy to expand its brand appeal.  By contracting Baru Advertising in Los Angeles to launch an innovative multi-platform advertisement campaign aimed at Hispanics, Beringer has become the first wine brand to actively target this market segment.

Simply titled “Invita El Sabor”, which translates to “Welcome the Flavor”, the campaign incorporates elements of Hispanic culture into advertisements. These advertisements are then broadcasted on Spanish-language TV, displayed in stores, and included in sales promotions. Promotional programming showing how wines can be paired with different Hispanic dishes is set to air on Univision, a popular Spanish-speaking network. Similarly, Telemundo will intermittently air segments showing how restaurant chefs incorporate Beringer wines into their recipes. To complement the television programming, retail locations will distribute promotional materials and host a “wine wheel” with suggestions for wine pairings.

This strategic move is a wise investment given recent statistics showing that wine consumption within the Hispanic community has grown approximately 35% in the past 3 years; nearly three times the rate of the general market. Future plans include launching a Spanish-language web page within Beringer.com and the addition of Spanish language wine tastings to their Vineyards. Through this creative mix of marketing media, Beringer will continue to further develop this pilot campaign in efforts to become the Wine of Choice in Hispanic homes.

By Karina Lairet