Why Hispanic market is so Important?
Hispanic Population is growing every year.
1980 10 million
1990 22 million
2004 40 million
2020 60 million
Hispanic-Owned Businesses: Growth Projections to 2012
The number of Hispanic-owned businesses in the United States is expected to grow 41.8 percent in the next six years to 4.3 million, with total revenues surging 39 percent to more than $539 billion, according to new estimates by HispanTelligence. Spurred by growing entrepreneurial trends and affluence among the nation's largest minority population, the increase is expected to come at a robust rate of 8.5 and 8.7 percent, respectfully, over the next couple years.
As a matter of fact the US Census Bureau project in 2050 24% of the US population will be Hispanic.
Hispanics accounted for one-half of the nation’s growth
Hispanic growth rate (24.3%) was more than three times the growth rate of the total population (6.1%)
Top Five States by Hispanic Population Size: 2006
Rank State Population Size
1 California 13,074,156
2 Texas 8,385,139
3 Florida 3,646,499
4 New York 3,139,456
5 Illinois 1,886,933
Nationally, the 2005 median household income was $46,300—a 1.1 percent gain over the previous year’s median and a 31 percent gain over 1967. The first year these data was collected between 2004 and 2005, real median household income did not show a statistically significant change for non-Hispanic White, Black, Asian, and Hispanic households.
The median for non-Hispanic White households was $50,800. The median for Hispanic households was $36,000. year-average median for non-Hispanic White households. Between 2004 and 2005, the real median incomes for households maintained by foreign-born householders rose 3.3 percent to $42,000. The median for households maintained by naturalized citizens rose to $50,000—5 percent over last year’s median and higher than the median for native householders. At $46,900, the median for native householders was not statistically different from the previous year’s figure.
According to the 2002 Economic Census, the U.S. had 195,659 full-service restaurants. Of this total, 17,415 were Italian restaurants; 17,395 were Chinese; 15,112 were Mexican; and 19,281 were restaurants with some other ethnic specialty.
Among the nation's 186,942 limited-service restaurants, 14,093 were Mexican, 10,996 were Chinese; 5,361 were Italian; and 4,439 were restaurants with some other ethnic specialty.
According to the estimates by Hispantelligence US Hispanic purchasing power will reach $958 billion in 2009 and its projected to reach as high as $1.25 trillion by 2015. During the past decade the rate of growth was more than two times the overall national rate.
The rising affluence of the nation’s 44.3 million Hispanic is increasing at a blistering pace. US Hispanic purchasing power has been growing at a compound annual growth rate 5.8% since 1980, more than twice as fast as the 2.52% rate for total US purchasing power during the same period.
The rising rate of purchasing power is even more impressive over the 10 year period from 1996-2006 during which US Hispanic purchasing power posted a compound annual growth rate of 6.96 % VS 2.8% for total US disposable income.
The Mexicans are important in San Antonio because they are 67% of the Hispanics in US.
- México is one of the 48 countries that lower their economical freedom dropping 49th to 60th
- The perceptions on the economy, the security and politics in Mexico are more deteriorated every year
- The economy continues worrying more than the insecurity.
- President Calderón reaches an evaluation of 61 percent, because the citizens do not blame him for the crisis they are living.
- Before an eventual plebiscite to decide the continuance of Felipe Calderon, we find that 61 percent opts for the continuity.
- Finally, 56 percent of Mexicans see the country by a wrong course.
- Just like all 2008 the levels associated with violence of the crime were maintained very high, it increased at the end of the quarter because of the recognition that the security institutions are infiltrated and the detention of highly federal commands working for cartels of the drug.
- On November 4th. a plane crashes, killing the secretary of state and other 14 Mexicans. The causes of the accident result from inefficiencies, deficiencies and possible corruption in the structures of the government.
- The world financial crisis lands in Mexico as an economic crisis that generates increments in unemployment, inflation, price of the dollar, and deterioration of other variables that the citizen perceives.
- On September 15th Independence Day, Morelia presented their first terrorist attack in many years when two grenades explode and kill more than a hundred assistants during the celebration of the independence. The authors were hitmen of some cartel of the drugs that are already detained.
- Fourth place behind Austin, Miami and San Diego in preference among Hispanics.
- Because construction costs, taxes, services and cost of living is 10% below the national average.
- With a great demand of bilingual professionals.
- More than 500,000 Mexicans visit each year.
- 57.8% of the population is Hispanic. Of this percentage, 75% are of Mexican origin.
- The cost of living is less than in Dallas and Houston.
- San Antonio employers trimmed payrolls very slightly by 365 jobs.
- Despite quarterly losses, annual job growth for the region remains strong. The San Antonio MSA registered a solid 2.6 percent (21,700 jobs) annual growth rate over the third quarter of 2007.
- The Trade, Transportation and Utilities sector posted the largest quarterly job gains, adding 1,367 jobs (0.9 percent) between the second and third quarter of 2008. The sector also boasted a strong annual growth rate of 4.7 percent (6,767 jobs) in the third Quarter of 2008.
- The Construction sector also experienced healthy job growth during the third Quarter of 2008, posting quarterly gains of 733 jobs (1.4 percent), and realizing an impressive 8.1 percent (3,967 jobs) annual growth rate.
The Importance of Culture in Marketing
“Culture is the baggage that humans groups carry with themselves over history, a culture generally is understood to be the cluster of intangible and tangible aspects of life that groups of humans pass to each other from generation to generation”
Lack of attention to cultural aspects can mean the difference between a powerful ad and either an ineffectual or aversive ad
- Nature and Supernatural Control
- Uncertain Future
- Children take care of old
- No savings
- Humans Control
- Plan your retirement
- Old Independent
- Group more Important than Individual
- Loyalty, fear of the unknown
- Good Mother, Past of poverty
- Live for Today
Mexican are Good worker and honest against sports and romantic
However in Mexico City they consider themselves late, law brokers, not very religious, but more sport and romantic.
Mexican are more BEING, meanwhile Americans are DOING persons. For instance the mexicans always introduce themselves as “I am Doctor....” or “I am the son of the owner...” or “I am the manager...” and the americans they say “I do this business”, “I built this building” and so on.
Absolute Values, they are not really clear about the absolute values:
Time; for a mexican an appointment at 4 pm could be 4:30 it is still 4 isn’t it?
Money; they never says it cost me $199 they say it cost me $200
Relations; they can not distinguished the relationship customer - supplier or vice versa, they easily mix it. This could be confused for americans because they have really clear the position and even better they can have a good dinner with some supplier and in the next day they can demand for a better service. The mexicans “think” some mistakes can be tolerated because they are friends.
Cultures are not unique enough; Members can unequivocally be classified, for instance a well educated mexican blond hair and green eyes could be judged as another american but he is mexican.
The mode is the most intuitive measure of central tendency, because Cultures do overlap
Tolerance of Ambiguity is one of the traits that help marketers deal with this anxiety. The marketer needs to spend time analyzing quantitative and qualitative data in order to form a set of initial impressions.
The cultural habits are very different from each segment you want to identify.
Time in USA/ SEL A B c
5 or more years
Based on the socio-economical level they are classified as:
- Small number
- They are here for Security Reasons in most of the cases
- Back and forth between USA and Mexico
- They use to have Servants in Mexico and a lot of people helping them as staff
- Don’t describe the Hispanic Market in USA
- Relatively Small number
- Strongly Attached to their societies and habits
- Much to lose
- Well educated and in most of the cases they have more than a college degree
Working Class Mass
- The bulk of the US Hispanic Consumer
- Many of the are Illegally
- Nothing to lose
Challenge for Hispanic Ad/Marketing Agencies
The Size is a problem because this segment is growing very fast. Besides the Purchasing power is important due to cultural issues as they like to spend for today. Other issues we need to face are shared Perceptions:
The Catholic religion has dramatically influenced the way of thinking and feeling of the continent.
Linguistic elements and values derived from 800 years from Arab domination over Spain. Hispanic heritage combines these and many other aspects of Arabic culture that have important implications for marketing. If the concepts of interest and insurance are problematic in the heritage of the culture the it is reasonable to assume that selling on credit and selling insurance to Hispanics would be more difficult.
Geographic Concentration, they always are to getter in group, if you want to see them visit the catholic church on sunday.
The Homogeneity and diversity of the market is due to historical and cultural roots. Clearly there are dominant tendencies in the market . Mexicans are the vast majority of all Hispanics. Many products categories benefit from attracting the interest of Mexicans first. That is one way of acquiring momentum. There are those who depend on the spanish language for their understanding of basic aspects of shopping and using products; those who can handle english and spanish almost interchangeably; and those who are english dominant.
Implications for Marketers
Right Motivational, the marketer that connects with the consumer at the level of cultural beliefs is likely to reap windfall profits.
They are Smart persons and very clever, and as we describe above they are Being persons, with Acknowledgement and they prefer to establish Relationships to make business.
He controls the situation or the entity, He makes the business but Aspires to get the American way of life, they don’t know how to write a brief, remember they used to have staff and the staff is the one who writes the statements.