gustavo grüber (630) 575-2038 [email protected] a presentation for: chicago, may 13, 2005 hispanic...
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Gustavo Grüber
(630) 575-2038
A Presentation for:
Chicago, May 13, 2005
Hispanic MarketingHispanic MarketingBeyond DemographicsBeyond Demographics
Direc
t
Gustavo Grüber [email protected]
21 Yrs. in Hispanic Marketing Pioneer of Several D. M. Formats (Bilingual/Gender)
Strong Background in Direct Mail Database Marketing / One to One / CRM DMA Directo / CADM / AHAA
Alaniz
Hispanic Marketing Experience Gustavo Grüber
Banta OverviewMore than 30 Operation Sites in US, Europe and Pacific Rim.
( Including 10 Fulfillment Centers, 3 Call Centers, 4 Technology Centers and 4 Creative Centers)
• More than 8,000 employees
• 103 yrs. old global company
• $1.5 Billion in Revenue.
• Publicly Traded – BN
• One of the largest commercial printers in North America serving publishers and direct marketers
• More than 37 manufacturing facilities worldwide.
Gustavo Grüber [email protected]
Banta Overview
2001200220032004
• Most Admired Company Fortune Magazine
2005
Gustavo Grüber [email protected]
Goal
To share practical knowledge that can help you strengthen your marketing curriculums as they relate to Hispanic Direct Marketing.
Gustavo Grüber [email protected]
Who Said…
“Spanish…Our future connections with Spain and Spanish America, will render that language a valuable acquisition…”
Thomas Jefferson, 1787
Gustavo Grüber [email protected]
Key Definitions
• Hispanic vs. Latino• Hispanic & the Census• Assimilation• Acculturation• Reverse Assimilation
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Why is the US Hispanic Market so Important?
• It provides an opportunity to:– Increase sales /Increase profits– Expand into new markets / Diversify– Achieve economies of scale– Business survival
Gustavo Grüber [email protected]
A Country Within A Country
CountryName
Population2004
Population2010
Population2025
Mexico 104.9 112.9 130.2
Colombia 42.3 50.0 59.8
Spain 40.3 40.5 42.0
Argentina 39.1 41.5 47.2
Source: Synovate 2003 Latin American Report
Gustavo Grüber [email protected]
A Country Within A Country
CountryName
Population2004
Population2010
Population2025
Mexico 104.9 112.9 130.2
United States 43.5 56.0 93.8
Colombia 42.3 50.0 59.8
Spain 40.3 40.5 42.0
Argentina 39.1 41.5 47.2
Source: Synovate 2003 Latin American Report
Gustavo Grüber [email protected]
Hispanic Market Growth
38.6 43.556
67.780.4
93.8107.4
120.5132.7 143.2
154.5
0
20
40
60
80
100
120
140
160
2002 2004 2010 2015 2020 2025 2030 2035 2040 2045 2050
TodayTomorro
w Milli
on
Peopl
e
Source: Synovate 2004 US Hispanic Market Report
Gustavo Grüber [email protected]
Minority Population (% of Total)
Gen. Pop.68% Hispanic
14%
African Amer.13%
Asian Amer.5%
Gen. Pop.61%
Hispanic21%
African Amer.12%
Asian Amer.6%
DECREASE
SAME
SAME
INCREASE
Today U.S. Total 296 Million
In 2020 U.S. Total 372 Million
Source Synovate 2004 US Hispanic Market Report
Gustavo Grüber [email protected]
Hispanic Purchasing Power $653 Billion in 2003
$1,014 Billion in 2008
One Trillion $$
Source: Selig Center for Economic Growth
• Advertisers spent $3.09 billion in 2004 in U.S. Hispanics, an 11% increase from 2003.
• Advertising will increase to more than $3.6 billion by 2007.
Source: HispanTelligence
Gustavo Grüber [email protected]
• 55% receive six (+) pieces of direct mail a week
• 30% receive between six and ten pieces
• 2% did not receive any advertising mail
• 4 in 10 glance at the direct mail they receive
• 25% review every page or section
• 4% usually discards without looking at it
DMA Hispanic Market Report(2005)
Gustavo Grüber [email protected]
As a Result, Marketers are Saying…
Wake up and smell the…
__________________CAFÉ CON LECHE
Gustavo Grüber [email protected]
Hispanic Budget Allocation
7.36.9
5.5
5.1
3.33.5
3.8
4.8
0
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2000 2001 2002 2003
% o
f Bud
get A
lloca
ted
to H
ispa
nic
Ret/DM
Manuf,
PERCENT OF TOTAL T.V. AND PRINT ALLOCATED TO HISPANIC MEDIA(Retailers and Direct Marketing vs. Manufacturers)
Source: Association of Hispanic Advertising Agencies – AHAA 2004
Gustavo Grüber [email protected]
Hispanic Market Challenges
Despite the huge opportunity, there are many challenges…
Especially in
Direct Marketing
Gustavo Grüber [email protected]
Main Challenge
• Demand for Hispanic DM professionals is growing faster than the supply of talent.
• There are not enough people trained in Hispanic direct marketing.
Gustavo Grüber [email protected]
Formulating a successful plan for the U.S. Hispanic market is almost like developing an international DM plan.
• Assess Your Potential. Is it relevant?
• Conduct Marketing Research
• Select Your Countries
• Develop DM Plan
• Implementation of Plan ?
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Only Better…
Gustavo Grüber [email protected]
We Need You…
• The company recognizes the importance of the U.S. Hispanic market. There is some internal discussion about this opportunity. However, they are not doing anything right now.
• The company tried to target the Hispanic market but failed to achieve expected results.
• The company is doing the right things to effectively penetrate the Hispanic market and has firm commitment to overcome ongoing challenges.
Gustavo Grüber
(630) 575-2038
A Presentation for:
Chicago, May 13, 2005
Hispanic MarketingHispanic MarketingBeyond DemographicsBeyond Demographics
Direc
t