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En Español: Retailers Clamor for a Growing Critical Mass

1 May, 2012 By: Alex Agurcia Response

Alex AgurciaHispanics have larger and younger families with a greater amount of their disposable income being spent on discretionary home, health, beauty and entertainment purchases compared to the general market. The growth rate of this segment by far exceeds that of the general market, their buying power is increasing exponentially with the largest retailers in the country, and the relevance of Latino pop culture is mounting.

When you couple this with the fact that industry studies have proven an overall increase in sales when a Spanish-language campaign is running simultaneous to its general market campaign, it is becoming bad business not to purposely market to Hispanics.

Big Box Retailers Take Action

A recent article in Ad Age highlighted big discount retailers investing notably in the Hispanic market, not only with their Spanish-language ad dollars (see chart at right) and Latin celebrity product lines but also by incorporating multi-cultural messages into their general advertising campaigns.

Kmart launched a Sofia Vergara clothing and accessory line in third-quarter 2011 with TV and print advertising in both Spanish and English; Kohl’s recently introduced a clothing line with both Marc Anthony and Jennifer Lopez; and Wal-Mart, at the Association of National Advertisers (ANA) multicultural conference in November, announced a plan to “blow up” its corporate multi-cultural marketing silo and move that budget into each of the individual business units, implying a concerted effort to drive Hispanic marketing competencies into all areas of the business.

Retailers ChartDR’s Unique Retail Advantage

With direct access to this segment’s buying patterns and behaviors, DR marketers have a unique opportunity to capture real-time feedback and utilize original and tested, high-impact messages to successfully urge the Hispanic consumer to buy. We’ve seen the pay off come back in multiple ways for marketers who strategically invest in this segment and bring together an expert team to reach this market via DR. Results span from higher success rates for retail placement and sales to a lift in overall general market sales as well as increased inbound conversions.

A long-form campaign launched in 3Q 2011 had been running successfully for quite awhile in the general market. The housewares product was in most retail stores already. Since running the Spanish-language show, product sales at retail increased threefold with statistically significant lift in highly concentrated Hispanic markets. Direct sales objectives were surpassed and Web activity showed increases, particularly in Hispanic-concentrated markets.

A Hispanic Marketing Team: Critical to Success

The key to successful Hispanic campaign is to tailor the messaging, offer, sales script and media plan to the Hispanic consumer. When any campaign is developed without the viewing audience in mind and executed with a team that has inadequate knowledge of the market and limited visibility to all components, it is less likely to succeed. The biggest discount retailers and the best DR marketers that are succeeding in this space are investing original production with customized messaging targeted specifically to this consumer and working with an expert team to guide them to success.

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