Latin_KNOW: The Latino Marketing Report

Article: Accent on Trust; Banks Stress Culture, Communication

The Dallas Morning News featured a story yesterday on the bid banks are making to score Latino customers. According to the article, tactics range from the obvious -- providing bilingual tellers to accomodate Spanish-speaking customers, in the case of Wells Fargo-- to the downright strange. Such is the case of Laredo National Bank. The company appears to be constructing banks in the form of haciendas, complete with mosaic-laden deposit boxes...all because customers want their "pedacito de México".

Last time I checked, banks in Mexico don't look like haciendas. Haciendas are reserved for housing wealthy ranch owners, not financial institutions. Banks in Mexico, and anywhere else in Latin America for that matter, look like banks. Some are housed in big, modern buildings while others do business in more modest constructions.

So why does a bank in the US looking to cater to Latinos need to look like a hacienda? I think you get my point. I would like to know what type of research has been done to support the idea that this is a winning marketing tactic. If it has proven to be effective, my hats off to the "creative minds" behind this, but I cannot help but see this as yet another example of condescending marketing which talks down to Latinos and attempts to tell a whole community what they are and what makes them feel welcome. Personally, this aesthetic reminds me of that used to market "authentic" Mexican cuisine to non-Latinos, like in the case of a Texas fast food favorite, Taco Cabana. That said, one would think it should have the opposite effect on Latinos.

In a very informal study, I asked a few people about this concept. Does the image of a hacienda make them feel more welcome? Across the board they said no, but that it did amuse them. Latino consumers are not children and they will call your bluff. If you want to market to them in their language, marvelous, but leave the stereotypes and the preconceived ideas about what they want at the door.

Who is behind this? According to the article, Spanish bank BBVA. Go figure.

What do you think? Please feel free to leave your comments.

Accent on trust: Latino banks stress culture, communication

06:48 PM CDT on Saturday, July 2, 2005
By DIANNE SOLÍS / The Dallas Morning News

Money is money. Interest rates are interest rates. So why would anyone tailor a bank to one ethnic group?

That's why so many banks are cropping up in Texas and elsewhere that look more like taquerías than finance houses, that sport murals rather than pastel landscapes, and that greet customers with, "En que lo puedo ayudar," Spanish for "How can I help you?"

Laredo National Bank, a unit of the Spanish financial house BBVA SA, has banks that resemble haciendas, with Mexican tilework, bright interiors and Bienvenidos painted over entrances.

Customers walking into Banco Independiente in McKinney, a branch of that city's Independent Bank, will find marigold-colored walls, bowls of Mexican candies and a children's play corner.

San Francisco-based Wells Fargo & Co. is hiring more bilingual tellers. New branches in areas with high concentrations of Latinos have Latin-themed murals.

But more needs to be done, says one market expert. Some banks think it's enough to say, "Here I am. Now open an account," says Dallas Mexican Consul Carlos García de Alba, who has advised dozens of bank executives. But with Latinos, he points out, "it's a matter of trust."

The Latino population numbers 41 million in the United States, and the Lone Star State has the second-largest concentration. In Texas, Latinos number 7.6 million and make up 35 percent of the population, according to 2003 census data.

DallasNews.com            READ MORE

Article: Leagues blossom as number of Hispanics grows

From today's News-Press.com:

Leagues blossom as number of Hispanics grows
Major companies come on board for marketing
By CHRIS UMPIERRE

Los Angeles. Dallas. Miami. Lawrenceville, Ga.

Hispanic adult soccer leagues are flourishing in cities small and large throughout the U.S.

Martin De La Cruz is the tournament director for Copa Tecate, the largest Hispanic amateur soccer tournament in the nation. About 2,500 teams and 45,000 players are participating this year in Copa Tecate, which competes from February to August.

"These leagues are growing dramatically," said De La Cruz, whose tournament competes in 22 U.S. cities, including Bradenton, before its Aug. 28 championship game in San Diego.

"Texas, California, New Mexico. They're everywhere."

The Liga Latinoamericana de Homestead is one of Florida's largest leagues. It began in 1987 with eight teams and has grown to 35 teams and about 455 players, President Eddie Arroyo said.

"We're growing so fast that it's difficult to find parks in Dade County to play," Arroyo said.

In Lawrenceville , Ga., Liga de Futbol has 170 teams and about 3,000 players, up from 25 teams a year ago, President Roberto Vargas said.

The league plays at Silverbacks Park, home of the United Soccer Leagues' Atlanta Silverbacks. Vargas said most of his players come from nearby Norcross, Ga., which is 40.9 percent Hispanic, according to the 2000 Census.

"It's a little Mexico City," Vargas said.

Companies such as Miami-based Soccer Marketing and Promotions have noticed the leagues' growth and its marketing possibilities. Soccer Marketing and Promotions acts as an intermediary between Hispanic soccer leagues and sponsors.

After the company identifies leagues, sponsors such as Anheuser-Busch subsidize uniforms, hand T-shirts to players and sends coaches to training clinics.

"Wherever you find Latinos, they're playing soccer. It's not a maybe," said Tom Mulroy, president of Sports Marketing and Promotions. "Part of the Latino culture is playing soccer. Wherever you go, you bring your culture, right?"

Counter-attack: Latin American Companies Cash-in on US Latino Market

I found this piece of news, from HispanicBusiness.com, very interesting. Thanks to Juan Tornoe from Hispanic Trending for the lead:

Latin American Companies Seeking US Takeovers

June 27, 2005 | Gordon Platt

Companies based in Latin America are seeking to acquire US companies in order to buy into the fast-growing Hispanic market in the US, where 40.4 million Spanish-speaking people control $700 billion in purchasing power.

"The US is the largest Hispanic market outside of Spain," says Jay Garcia, managing director of New York-based investment bank Samuel A. Ramirez.

With revenues of US-based Hispanic companies growing at an average rate of 20% a year, Latin American companies have come to realize that the best way to participate in this market is through corporate acquisitions, instead of just exporting their products, Garcia says.

Samuel A. Ramirez, which specializes in middle-market M&A transactions, has been approached by a half-dozen Latin American companies recently that are actively seeking takeover targets in the US, Garcia says.

A rash of takeovers in the $300 million to $400 million range is likely in the months ahead, according to Garcia, who expects a flurry of cross-border activity in the banking, media and food sectors.

In November 2004 Mexico-based Editorial Televisa purchased a 51% stake in Hispanic Publishing, a Miami-based publisher of Hispanic and Hispanic Trends magazines.

HispanicBusiness.com       READ MORE

Georgia Latinos get their GeorgiaTeVe

I never thought I'd see the day, but that day has come. The deep South, that bastion of all-American tradition, has become an all-American melting pot. Being from the South myself, I remember a time when there were no Latinos in the city where I was born -- a Southern capital city. Now, cities like Atlanta are not only filling up with vibrant Latino communities, but local media and marketers are responding to this new(ish) immigrant group.

According to the Census Bureau, the Latino population in Atlanta more than doubled from 1990 to 2000, with the population number jumping from a modest 7,640 in 1990 to a considerable 18,720 in 2000. In two Georgia cities, Gainesville and Dalton, Latinos make up over 20% of the total population (22.6% of the total population in Gainesville and 20% percent in Dalton). Dawson County's Latino population jumped an amazing 59% between 2000 and 2002. Perhaps the most compelling number floating around: a 348% increase in the Latino population in Northeast Georgia (sources).

With local Latino-targeted magazines, newspapers and web sites, it was only a matter of time until someone would see dollar signs and Georgia would get its very own local Spanish language channel. Enter Georgia TeVe. According to an Atlanta Journal Constitution article, which provides a lot of background on this venture:

This is the latest effort by entrepreneurs to appeal to Atlanta's growing and potentially lucrative Hispanic population, and the station hopes to differentiate itself from competitors in the market "because we're going to bring the local flavor," Georgia TeVe CEO Rafael Ortiz-Guzman said.

Perhaps that "local flavor" will what will convince Latino viewers to lay down that extra $50 per month to have access to the channel (available only via the local Comcast cable provider) instead of just watching their local Univision affiliate.

The following article from today's MediaWeek focuses on the July 1 launch of Georgia TeVe. For more information on this topic, see this post on Juan Tornoe's excellent blog Hispanic Trending.

Georgia TeVe launches July 1.
June 24, 2005

Rafael Ortiz-Guzman, who created ROG Productions six years ago, will launch Georgia’s first local Hispanic TV station on Comcast cable beginning July 1. The station, Georgia TeVe will broadcast 24 hours a day and air about 50 hours of local programming each week, including 12 original productions.

Atlanta is one of the fastest-growing Hispanic markets in the U.S., but is served by only one Hispanic station, Univision’s WUVG-TV. Hispanics make up 7.5 percent of the Atlanta market and number about half a million in the state, according to the U.S. Census.

MediaWeek.com     READ MORE

Spanish Media Invasion

These days, it looks like everyone under the sun wants a piece of the US Latino market pie -- even the Spaniards. Madrid-based Grupo Prisa, publisher of the acclaimed newspaper El Pais and popular radio network Cadena Ser says they are ready to make the jump across the pond and claim their piece of a media market that is ripe for the picking. Some say the quality of what Prisa has to offer is exactly what is lacking in US Latino media.

But, not so fast. Prisa first wants to continue its "invasion" of Latin media by extending their already established influence in Latin America. Prisa just opened new studios for its Caracol radio network in Bogota. And in April, the group jump-started its growth in the US as well, by signing a 28 million dollar deal with Clear Channel, granting Prisa the rights to operate the San Diego Spanish-language radio station XTRA AM 690.

What's clear is that if any European media group is poised to make a mark on the US Latino media market, Prisa is it. They are a powerful media entity with millions of Euros to spend. In addition, Prisa, the Socialist government's media group of choice, is gaining power on its home turf as well. Today, the group is celebrating a huge victory: the Spanish government (much to the dismay of Prisa's competitors) declared that they will be allowed to broadcast their Canal Plus station from a brand new channel on national open (not cable) TV. Prisa calls it better choices for viewers while competitors shriek "monopoly!" (Note: for excellent coverage of this saga and the Spanish media landscape in general, have a look at a blog called Periodistas 21)

Adding to all this power, for reasons of history (good or bad), a shared language and now new Latino immigration to Spain, they innately know the market better than any of their European counterparts.

The following article quotes Juan Luis Cebrián, Prisa's president, as saying the "cracking the U.S. Hispanic market would be the crowning achievement of his long career at Prisa." No doubt.

Prisa Wants To Play Conquistador
The Madrid media group is making a risky move across the Atlantic

By Carlta Vitzthum

Spain's Grupo Prisa has gotten too big for its britches. Its newspaper El País is the country's most widely read daily, while Cadena SER, its chain of 400 radio stations, commands an audience share of nearly 50%. The Madrid media company owns specialty magazines, several television stations, and a leading publishing house. It's also in the movie biz. One of the many hits it has bankrolled was The Sea Inside, winner of the 2005 Oscar for best foreign-language film. Prisa's grip on Spanish media is so tight that competitors have tried to clip its wings by challenging in court its dominant position in radio and pay TV, though without success.

So what's an ambitious media magnate like Juan Luís Cebrián to do? Since 2000, Prisa's chief executive has been patiently stitching together the world's first pan-American radio network, consisting of 450 stations stretching from Miami to Buenos Aires. With sales of just under $66 million last year, Prisa's international radio business is still in its infancy. But Cebrián, 59, is already mulling over a plan to take all of Prisa's 1,000 Spanish-language stations public, before seeking an alliance -- or even a merger -- with a U.S. media group. "We hope to repeat the success of SER in the Americas," he says.

Business Week Online            READ MORE