11. 2. The Opportunity
The US Hispanic population is growing at impressive rates
SOURCE: Goldman Sachs, October 23, 2007
30%
Hispanic Population Growth
Hispanic Population as % of US Total
25% (Millions, 2005-2020)
(Hispanic population / US total, millions)
20% Total Hispanic
15%
322 336
299 309
24%
10% 22%
20%
18%
14% 15% 15% 15%
5% 13%
9%
6% 43%
0%
48 54 60
43
1980 1990 2000 2005 2007E 2008E 2010E 2020E 2030E 2040E 2050E
227 249 282 299 303 305 309 336 364 392 420 2005 2010 2015 2020
15 22 36 43 45 47 48 60 73 88 103
% Hispanic 6% 9% 13% 14% 15% 15% 15% 18% 20% 22% 24%
Us Population
Hispanics
Today, Hispanics already represent 15% of the total US population.
From 2005 to 2020, Hispanic population will grow 43% vs. 14% for General Market
12. 2. The Opportunity
The US Hispanic population is young, very young…
SOURCE: US Census Bureau Annual Update, 2007
Hispanic Population by Age Group vs. Total US
Percentage - 2007 100+
95 to 99
Hispanics 90 to 94 Non-Hispanics
85 to 89
80 to 84
75 to 79
70 to 74
65 to 69
60 to 64
55 to 59
50 to 54
45 to 49
40 to 44
35 to 39
30 to 34
25 to 29
20 to 24
15 to 19 Population in
10 to 14 Age Group
5 to 9
Under 5 47% vs. 35%
10% 8% 6% 4% 2% 2% 4% 6% 8% 10.%
Almost half of US Hispanics are 25 and under, while half of general US is 40 and older.
Actually, 1 out of every 5 teens in the US is Hispanic
13. 2. The Opportunity
The US Hispanic population is holistically wealthy
Source:(USH-INT) CapturaGroup - Connecting US Hispanic Market online – 2006
1,100
Share of Total US Buying Power
$1,087 billion
1,000 2003 vs. 2008
900 AA Other
2003 8.4% 2003 1.3%
800 2008 8.7% 2008 1.4%
700
Billions of Dollars
600 Hispanic
413% 2003 7.9%
500 $490 billion 2008 9.6%
400
300
White
200 $212 billion 2003 82.4%
2008 80.3%
100
0
1990 2000 2010
Hispanic buying power exceeded that of African Americans in 2003 and is expected to
represent 9.6% of the total GNI in the US by the end of 2008
14. 2. The Opportunity
The US Hispanic economy is the 9th largest in the world
Estimated GDP in 2010
US billions
13,109
5,273
2,702 2,418
1,984 1,926
1,545 1,230 1,087 1,002
US Japan Germany China France UK Italy Brazil Hispanic Canada
US Hispanic buying power is expected to exceed Canada’s – and all of Latin
America’s save for Brazil’s - GDP, becoming the 9th largest economy by 2010
Source: Global Insights Inc, 2008
15. 2. The Opportunity
How Hispanics spend their money
Hispanics spend 9% more of their funds on food than Non-Hispanics
31. 3. The Market Complexities
Even though we all speak You may reach them, but not Not necessarily true. Your
Spanish, there are relevant connect with them… Hispanic customers may be
differences that can help you behaviorally loyal, due to their
to make a relevant difference. lack of integration or
access to choices.
Reach,
but not connect
Connect,
but not reach
Same magazine issue, Customers integrate, and
different cover Neither reach, then migrate to another bank
nor connect
32. 3. The Market Complexities
Activate your strategy across Hispanics often pay premium
relevant consumer touch- prices to access products and
points and integrate for a true services they need, or simply
brand experience. want.
Out-of-Home Billboards
TV Ads WOM Customer
Newspaper Ads PR Reviews Events
Search engines
Radio eMails
Online Magazine Ads
Banners BTL
Direct
Marketing Sponsorships
Influencers
Word of mouth
Search Engines
A digital camera purchase is not
Customer Reviews
about the pixels, but about the
emotional possibilities
43. 5. Conclusions
It Is Not About “Hispanic Marketing” It Is About “Marketing To Hispanics”
Because “Hispanic Marketing” uses stereotypical
Because “Marketing to Hispanics” uses specific
Hispanic cues and icons… market insights to tell a relevant and compelling
story…
Focuses on cultural perceptions…
Focuses on specific wants and needs…
Is based on the mainstream brand
architecture… Is based on drivers of purchase and consumption…
And is generally ineffective in building brand
And has proven to effectively build brands with
preference Hispanics
