Hispanic 101 —
An Immersion
January 2004
Three Key Themes
1.
Size & Growth

2.
Complexity

3.
The U.S. consumer landscape will never be the
same
Demographic, language and cultural issues
elements call for customized marketing efforts
Financial Business Rewards

Hispanics’ income growth and purchasing
power represent a significant business growth
opportunity
2
Contents
1.
2.
3.
4.
5.
6.
7.
Size
Growth
Composition
Distribution
Age
Households
Language Usage
8. Spanish Ad
Effectiveness
9. Income & Buying
Power
10. Media Dynamics
11. Segmentation: A
Mix Of Lifestyles
And Life Stages
3
1. Size
68% growth in one decade;
largest U.S. Minority segment
Hispanic
9%
22 Million
Hispanic
14%
39 Million
NonHispanic
86%
244 Million
NonHispanic
91%
227 Million
1990
Source: U.S. Census Bureau
2002
4
1. Size
Formulation of a “new America” is
evident
Asian Other
Black 4%
1%
11%
Black
13%
Asian Other
9% 1%
Hispanic
14%
Hispanic
24%
White
53%
White
70%
2000
Source: U.S. Census Bureau
2050
5
1. Size
Diversity exists even within the
Hispanic community
-
-
South American
 Argentinean
 Bolivian
 Chilean
 Colombian
 Ecuadorian
 Paraguayan
 Peruvian
 Uruguayan
 Venezuelan
Central American
 Costa Rican
 Guatemalan
 Honduran
 Nicaraguan
 Panamanian
 Salvadorian
Other Hispanic 6.5%
Central or South
American
14.3%
Dominican
2.2%
Cuban
3.7%
Mexican
66.9%
Puerto Rican
8.6%
Source: U.S. Census Bureau, July 2002 Estimate
March 2002 Current Population Survey
6
1. Size
Comparable in size to key
demographic groups embraced by
the marketing community
26.0%
20.6%
15.4%
13.5%
12.7%
Hispanics*
AfricanAmerican*
Source: Census 2000
* July 1, 2002 Population Estimates
12.4%
Gen Y (14-24)
Gen X(25-38)
Baby Boomers
(39-57)
Mature
Generation
(65+)
7
1. Size
Majority are foreign born and have
been in the U.S. less than 20 years
U.S. Born vs. Foreign Born
Foreign Born Population
Year of Entry
10%
16%
40%
43%
60%
30%
73%
U.S. Born
Foreign Born
1990 - 2000
1980 - 1989
1970 - 1979
Source: Census 2000 Summary File 3. Foreign Born Population Table 8.1: March 2000.
Before 1970
8
2. Growth
Growth throughout the entire U.S.
Source: U.S. Census Bureau
9
2. Growth
The new Hispanic emerging markets
% Growth 1990-2000
2000 Populations >50,000
700%
625%
580%
380%
275%
Greensboro
Charlotte
Source: William H. Frey analysis of 2000 Census
Raleigh
Atlanta
Las Vegas
10
2. Growth
Why the continued immigration &
migration?...




Labor demand in the U.S.
Weak economy in country of origin
Political/social instability
Ties with U.S. residents
11
2. Growth
Projected to grow 68% by 2025
millions
61.4 million
38.8 million
43.7 million
22.4 million
1990
2002
2010
Source: Populations Projections Program, Population Division, U.S. Census Bureau.
Consistent with the 1990 estimates base.
2025
12
2. Growth
The 4th largest market in the Spanishspeaking world... …Second by 2025
Population (millions)
2002
2025
(proj.)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Source:
Mexico
Colombia
Spain
U.S. Hispanics
Argentina
Peru
Venezuela
Chile
Ecuador
Cuba
101.7
43.8
41.3
38.8
36.5
26.7
25.1
15.6
13.0
11.3
Population Reference Bureau, 2002 Population Data Sheet and U.S. Department of
Commerce News June 18, 2003 Release
131.7
59.7
44.3
61.4
47.2
35.7
34.8
19.5
18.5
11.8
13
3. Composition
On Average, the Top 20 Hispanic
markets have a 17% Hispanic
penetration
Hispanic
1
2
3
4
5
6
7
8
9
10
Los Angeles
New York
Miami
Houston
Chicago
Dallas-Ft. Worth
San Antonio
San Francisco-San Jose
Phoenix
McAllen-Brownsville
Source: A.C. Nielsen
Persons 2+
NonHispanic % Hispanic
(000)
(000)
6,473
3,670
1,589
1,450
1,510
1,228
1,008
1,278
936
853
15,779
19,421
3,909
4,975
8,966
5,784
1,960
6,500
3,986
984
41%
19%
41%
29%
17%
21%
51%
20%
23%
87%
Hispanic
11
12
13
14
15
16
17
18
19
20
Albuquerque
San Diego
El Paso
Fresno
Sacramento-Stockton
Denver
Philadelphia
Washington, D.C.
Orlando
Tampa
Persons 2+
NonHispanic % Hispanic
(000)
(000)
602
745
633
750
684
590
467
465
373
376
5,685
1,597
2,705
834
1,613
3,345
3,909
7,171
5,517
2,983
3,719
33,393
38%
28%
76%
46%
20%
15%
7%
8%
13%
10%
17%
14
3. Composition
Hispanics are the market in top
DMA’s
Hispanic % of Total Persons (2+)
Total U.S.
13%
41%
Los Ange le s
Ne w York
19%
41%
M iami
29%
Houston
Chicago
San Francisco
Dallas
17%
20%
21%
51%
San Antonio
Phoe nix
24%
87%
M cAlle n
47%
Fre sno
28%
San Die go
Sacrame nto
20%
76%
El Paso
Albue que rque
38%
15
Source: Nielsen 2003 Universe Estimates (Top 15 Hispanic Markets)
4. Distribution
Geographically
concentrated: ¾ of
Hispanics reside in
the Top 20 DMA’s
Philadelphia , 1%
Washington , 1%
Atlanta , 1%
Denver , 2%
Orlando , 1%
Tampa , 1%
Balance of U.S., 30%
El Paso , 2%
Albuquerque , 2%
Fresno , 2%
Sacramento , 2%
San Diego , 2%
Phoenix , 3%
San Antonio , 3%
Dallas, 3%
San Francisco, 4%
Houston , 4%
Chicago , 4%
Miami, 5%
Base:
U.S. Hispanics Adults
Source: Scarborough USA+ Release 2, 2002
Los Angeles, 18%
New York , 11%
16
4. Distribution
Even more concentrated than the
general population
Hispanic
Adults
Total
Adults
8 DMAs
51%
25%
13 DMAs
61%
30%
37 DMAs
80%
57%
% who live in….
Source: Scarborough USA+ Release 2, 2002
17
5. Age — National
A significant portion of key consumer
segments
Kids 2-11
Teens 12-17
Adults 18-34
Adults 18-49
All P2+
Adults 50+
13%
Source: A.C. Nielsen
19%
16%
15%
13%
7%
18
5. Age — Top 10 Markets
A crucial portion of key Kids and
Teens segments on a market-bymarket level
1
2
3
4
5
6
7
8
9
10
Los Angeles
New York
Miami
Houston
Chicago
Dallas-Ft. Worth
San Antonio
San Francisco-San Jose
Phoenix
McAllen-Brownsville
Source: A.C. Nielsen
Hispanic
Kids 2-11
NonHispanic
(000)
(000)
1,482
665
204
312
326
270
197
259
223
187
2,683
2,784
537
820
1,392
924
315
883
620
198
% Hispanic
55%
24%
38%
38%
23%
29%
63%
29%
36%
94%
Hispanic
Kids 6-11
NonHispanic
(000)
(000)
871
394
125
178
184
151
116
151
126
111
1,638
1,697
331
497
843
554
192
539
372
119
% Hispanic
53%
23%
38%
36%
22%
27%
60%
28%
34%
93%
Teens 12-17
NonHispanic % Hispanic
Hispanic
(000)
(000)
732
363
129
165
165
137
118
132
110
106
1,499
1,608
332
499
816
550
201
522
359
115
49%
23%
39%
33%
20%
25%
59%
25%
31%
92%
19
6. Households
Younger, and larger HH’s
Hispanic
Median Age:
HH Size:
Source: A.C. Nielsen
Total US
27
3.6
Median Age:
HH Size:
37
2.4
20
6. Households
A mix of individuals
Deep
Roots
Born here;
Parents born here
1st.
Generation
Transplants
Transitionals
Newcomers
Born here;
Parents outside U.S.
Born outside U.S.;
½ of life here & ½ of life there
Born outside U.S.;
¼-½ of life here
Born outside U.S.;
less then ¼ of life here
21
6. Households
Over-index versus Non-Hispanics on
children in the HH
147
154
One or more
Two or more
Source: U.S. Census Bureau
163
144
Three or more
Four or more
22
6. Households
Leisure activities enjoyed are
different based on acculturation level
Hispanic
U.S.
Dominant Bicultural Dominant
Going out to dinner
Going to church or religious service
Exercising or playing sports
Going Dancing
Going to the movies
Going to museums
Going to concerts
Going to the theater
Going to bars
Source: People en Español, 2003
77%
76%
73%
57%
52%
52%
44%
35%
13%
75%
71%
82%
65%
65%
65%
65%
59%
26%
92%
65%
75%
60%
74%
59%
74%
68%
23%
23
6. Households
Differing value systems
United States
 Calvinist Values
 Democracy
 Vietnam
 Individual (Me/mine/my)
 Sibling Rivalry
 Youth & “Fun”
 Stable economy
 “No Wrinkles Tomorrow”
Source: TNS Market Development
Latin America
 Catholic Values
 Aspiring Democracies
 No Vietnam
 Group (We/our/us)
 Sibling Cooperation
 Maturity & “Diversión”
 Fluctuating economies
 “Look Good Tonight”
24
6. Households
Life experiences colored by different
milestones
United States
Latin America
Kennedy, Nixon, King
Bay of Pigs
Equal Rights Amendment
Freedom Fighters
Woodstock
Washington Post/ Watergate
B.Friedan, K. Vonnegut,
J. Kerouac
British Invasion, Hendrix, Morrison
W.Chamberlin, Ali, H.Aaron
Castro, Allende, Che Guevara
Bay of Pigs
Instability, Drug Cartels, Inflation
Coup d’etats
White Collar Corruption
Political Activist Literature
O. Paz, G.G. Marquez,
P. Neruda
El Puma, J. Iglesias, E.Guzman
Pelé, R.Duran, R.Clemente
Source: TNS Market Development
25
7. Language Usage
Majority of adults speak Spanish to
some degree
92%
Spanish Mostly
39%
Spanish Only
15%
English Only
8%
Bilingual
20%
English Mostly
18%
Source: A.C. Nielsen
26
7. Language Usage
Use of Spanish will continue





2/3 were born outside the US
Continuing immigration
Preservation of cultural identity
Geographic concentration
Ease of travel and telecommunications
27
7. Language Usage
Hispanics speak Spanish at home
regardless of education, age or HHI
Education
HH Income
Age
2-5
91%
6-11
91%
-$
30
93%
ge
79%
12-17
89%
-$
ol
le
0
C
$3
e
81%
92%
C
50+
87%
0K
+
ra
d+
G
ge
35-49
$4
om
S
76%
ol
le
85%
96%
18-34
40
H
.S
$2
0
.G
ra
d
85%
Source: NHTI Installed Metered Sample, Feb 2002; Excludes English Only Homes; Based on %
of Persons Living in HH’s that Speak Some Spanish
28
8. Spanish Ad Effectiveness
Roslow Research Group
1994 and 2000
Document relative effectiveness of
Spanish vs. English commercials
among Hispanics
 Awareness
 Comprehension
 Persuasiveness
29
Source: Roslow Research Group, 2000
8. Spanish Ad Effectiveness
Spanish-language commercials are...
 61% more effective at increasing
Awareness
 57% more effective in message
Comprehension
 4.5x more Persuasive
Among Bilingual Hispanics, Spanish
commercials are 3.4 times more persuasive
Source: Roslow Research Group, 2000
30
8. Spanish Ad Effectiveness
Spanish ads work best
% of Spanish Dominant Target*
who "agree a lot" with statement
Spanish Ads best source of info
168
I remember more about Spanish Ads
166
162
Find TV ads interesting
157
Enjoy reading ads in magazines
Loyal to companies w/ ads in Spanish
Spanish ads respect my heritage
138
133
Index to Total Hispanic Adults. Base =Spanish Dependent Adults with Bank Account, but no
checking or debit card accounts. Source: Simmons Hispanic Study 2001
31
9. Income & Buying Power
Income level growing faster than
population
$89.5
$55.1
(+49%)
35.0
(+59%)
$36.9
(+62%)
AVG.+
56%
41.5
(+19%)
AVG.
+39%
22.0
2000
1990
Income (Thousands)
Source: A.C. Nielsen, Selig Center
2010
Population (Millions)
32
9. Income & Buying Power
Hispanic HH’s have shifted from
lower to middle and higher income
brackets
Hispanic HH Distribution of Income, 1982-2001
20%
15%
10%
5%
0%
Under
$5K
$5K9.9K
$10K14.9
$15K24.9K
$25K34.9K
1982
$35K49.9K
$50K74.9K
$75K- Over
99.9K $100K
2001
33
Source: U.S. Census, “Money Income in the U.S.: 2001”
9. Income & Buying Power
Buying power will approach
$1.2 trillion by 2012
1,156.0
($ / Billions)
926.0
531.0
2002
Source: Global Insight
2007
2012
34
9. Income & Buying Power
While whites account for the majority of
consumer spending, their share is
dwindling
1990
$317
7%
$118
3%
2007 (est.)
$223
5%
$455
4%
$853
8%
$7,910
79%
$3,739
85%
White
Black
Asian
$926
9%
Hispanic
White
Black
Note: Figures add to more than 100% because Hispanics can be of any race
Source: Selig Center for Economic Growth, University of Georgia
Asian
Hispanic
35
9. Income & Buying Power
Recent Hispanic HH spending
dynamics show largest increases
were in services-related categories
% C hange
in S p e n d in g
E d u c a tio n
In s u ra n c e
C h a rita b le C o n trib u tio n s
H e a lth c a re
C a rs & T ru c k s
C o n s u m e r E le c tro n ic s
H o u s e h o ld F u rn is h in g s
P e rs o n a l C a re P ro d u c ts & S e rv ic e s
A p p a re l
+ 18%
+ 13%
+ 13%
+ 9%
+ 8%
+ 8%
- 33%
- 17%
- 11%
36
Source: “The Hispanic Buying Power Report, 2002”, Target Market News
9. Income & Buying Power
Growth of “affluent” Hispanic HH’s
outpacing general community
 Estimated at 3.7 million
 Nearly two-thirds reside in
CA, TX, NY
 Combined buying power
of $292.4 billion by 2006
 Many are small business
owners that reinvest in
family businesses
“Affluent” = $100,000+ HH Income
Growth in Number of HH's 1991-2000
+126%
+77%
Hispanic
General Market
37
Source: Merrill Lynch, 2003
10. Media Dynamics
English networks under deliver Hispanics
TOP RANKED PROGRAMS
RANK PROGRAM NAME
*% Hispanic based on (000’s)
Source: A.C. Nielsen, Sep-Nov 2003
Total
Hispanic
P18-49
P18-49
%
NETWORK
RTG
RTG
Hispanic*
4%
7%
6%
7%
7%
5%
7%
6%
8%
7%
4%
6%
6%
10%
5%
5%
9%
6%
7%
8%
1
CSI
CBS
9.6
2.6
2
FRIENDS
NBC
9.5
4.3
3
E.R.
NBC
9.2
3.6
4
FOX NFL SUNDAY-NATIONAL
FOX
7.8
3.7
5
WILL & GRACE
NBC
7.8
3.4
6
SURVIVOR: PEARL ISLANDS
CBS
7.6
2.4
7
CBS NFL NATIONAL
CBS
7.4
3.3
8
SCRUBS
NBC
6.9
2.7
9
FOX NFL SUNDAY-SINGLE
FOX
6.7
3.6
10
NFL MONDAY NIGHT FOOTBALL
ABC
6.5
3.2
11
BACHELOR, THE
ABC
6.4
1.6
12
CSI: MIAMI
CBS
6.4
2.3
13
COUPLING
NBC
6.3
2.4
14
NFL MONDAY OVERTIME
ABC
6.2
4.2
15
CBS NFL NATL POST GUN
CBS
6.2
2.1
16
EVERYBODY LOVES RAYMOND
CBS
6.1
2.0
17
SIMPSONS-SUN 8:30P
FOX
6.0
3.5
18
LAW AND ORDER
NBC
6.0
2.2
19
8 SIMPLE RULES
ABC
5.9
2.6
20
FOX NFL SUNDAY-PST GN-NAT
FOX
5.7
3.0
38
10. Media Dynamics
Top programs continue to be on Spanish

1992 season had 14 on English
TOP RANKED PROGRAMS
P18-49
RANK
Source: A.C. Nielsen, Sep-Nov 2003
PROGRAM NAME
NETWORK
RATING
1
NINA AMADA MIA TUE
UNI
14.0
2
NINA AMADA MIA MON
UNI
13.4
3
NINA AMADA MIA WED
UNI
13.1
4
NINA AMADA MIA THU
UNI
12.4
5
NINA AMADA MIA FRI
UNI
11.6
6
VELO DE NOVIA TUE
UNI
10.4
7
VELO DE NOVIA MON
UNI
9.9
8
CASOS VIDA R: ED. ESP TUE
UNI
9.7
9
VELO DE NOVIA WED
UNI
9.7
10
VELO DE NOVIA THU
UNI
9.5
11
MANANTIAL TUE
UNI
9.3
12
DON FRANCISCO PRESENTA-WE
UNI
9.2
13
CASOS VIDA R: ED. ESP FRI
UNI
9.1
14
MANANTIAL THU
UNI
9.1
15
CRISTINA-MON
UNI
9.0
16
AQUI Y AHORA-THU
UNI
8.8
17
MANANTIAL WED
UNI
8.8
18
MANANTIAL MON
UNI
8.7
19
VELO DE NOVIA FRI
UNI
8.6
20
HORA PICO-SUN
UNI
8.5
39
10. Media Dynamics
A very different list of top advertisers
(Ranking Based on 2002 Gross Media Expenditures)
Hispanic
Rank Advertiser
1
2
3
4
5
6
7
8
9
10
Procter & Gamble
Philip Morris (inc. Kraft)
General Motors
AT&T
McDonald’s
Sears, Roebuck & Co.
Coca-Cola
Toyota Motor Co.
Pepsi-Cola Co.
AOL Time Warner Inc.
GM
Rank
3
N/A
1
31
15
9
58
13
21
2
Hispanic
Rank Advertiser
11
12
13
14
15
16
17
18
19
20
Americatel
Vivendi Universal SA
Bally Total Fitness
J.C. Penny Co.
Johnson & Johnson
Burger King
U.S. Army
MCI Worldcom
Colgate-Palmolive
Yum Brands
GM
Rank
N/A
54
N/A
22
8
48
N/A
80
91
40
40
Source: Hispanic Business Magazine 2002
10. Media Dynamics
Nearly half of Hispanic advertising
dollars are on a local market basis
Media Advertising Expenditures
Medium
Network/National TV
Local TV
National Radio
Local Radio
National Newspapers
Local Newspapers
Magazines
Out-of-home
TOTAL
41%
21%
7%
17%
4%
6%
2%
3%
100%
% LOCAL EXPENDITURES
47%
Source: Hispanic Business Magazine 2002
41
11. Segmentation
Background
 Developed by Yankelovich in partnership
with Cheskin
 1,200 in person interviews, P16+
 Seven top + three emerging markets
 Spanish and English interviews
 Weighted for population
42
11. Segmentation
The market can be visualized as
falling into 12 segments based on
Life Stage categories
43
11. Segmentation
Acculturation Definitions
1.
Hispanic Dominant


2.
Bicultural

3.
Persons that desire to retain as much as possible of their
Hispanic culture, while adopting aspects of U.S. Anglo
culture as well
Assimilated

4.
Persons closest to the culture of their country of origin
Choose to retain as much of their Hispanic culture, language
and values as possible
Persons who have moved away from their Hispanic culture
to adopt U.S. Anglo culture, language and family values
Culturally Unique

Persons not yet arrived
44
11. Segmentation
The Segments Defined
45
11. Segmentation
Young Progressives
46
11. Segmentation
Home Builders
47
11. Segmentation
Hearth Hearted
48
11. Segmentation
Prime of Life
49
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