One in six Americans, 53 million people, is Hispanic. The Hispanic population in the United States has grown 43 percent since 2000, and rapid growth will continue. Simultaneously, spending by these shoppers has increased 207 percent since 2000 and purchasing power will total $1.3 trillion by 2015 and continue to grow dramatically over the next five to 10 years as the younger Hispanic population enters prime earning age. For retailers looking to protect and grow share among this valuable market, the time to act is now.
On the surface, connecting with and activating Hispanic shoppers is a daunting task. The population is quite diverse, hailing from more than more than a dozen distinct Hispanic nations. And, within the United States, level of acculturation, the measure of internal conflict when an immigrant's "host" country has very different customs and norms from the "home" country, varies drastically.
And yet, Hispanics are connected by common cultural traits and needs that transcend country of origin and acculturation level differences–commonalities that marketers can target effectively.
To effectively tap outsized growth opportunities in today's multicultural and rapidly evolving marketplace, marketers must adopt a Total Market Strategy. Instead of marketing to a majority group and then duplicating efforts to one or more "minority" groups, Total Market Strategy enables marketers to segment and target consumers once, viewing all consumers as part of a single pie. The result is a more holistic market focus which facilitates integration of planning and agency activities, and removes the silo mentality that can form inside CPG companies. Most importantly, it produces a consistent set of brand values that are represented across segments, regardless of mode, language or platform of messaging.
Four Pillars to Marketing Effectively to Hispanic Shoppers
- Identify high-value shopper groups and gain a detailed understanding of their shopping and consumption preferences.
- Manufacturers: design products and packaging to specifically meet these needs.
- Retailers: adjust planograms and store layouts to facilitate activation.
- Collaborate to create attractive promotions and optimize the retail experience.
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