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Direct. Hispanic Marketing Beyond Demographics. A Presentation for:. Chicago, May 13, 2005. Gustavo Gr über (630) 575-2038 Ggruber@banta.com. Hispanic Marketing Experience Gustavo Grüber. 21 Yrs. in Hispanic Marketing Pioneer of Several D. M. Formats (Bilingual/Gender)
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Direct Hispanic MarketingBeyond Demographics A Presentation for: Chicago, May 13, 2005 Gustavo Grüber (630) 575-2038 Ggruber@banta.com
Hispanic Marketing Experience Gustavo Grüber • 21 Yrs. in Hispanic Marketing • Pioneer of Several D. M. Formats (Bilingual/Gender) • Strong Background in Direct Mail • Database Marketing / One to One / CRM • DMA Directo / CADM / AHAA Alaniz
Banta OverviewMore than 30 Operation Sites in US, Europe and Pacific Rim. ( Including 10 Fulfillment Centers, 3 Call Centers, 4 Technology Centers and 4 Creative Centers) • 103 yrs. old global company • One of the largest commercial printers in North America serving publishers and direct marketers • $1.5 Billion in Revenue. • Publicly Traded – BN • More than 37 manufacturing facilities worldwide. • More than 8,000 employees
Banta Overview • Most Admired Company Fortune Magazine 2001 2002 2003 2004 2005
Goal To share practical knowledge that can help you strengthen your marketing curriculums as they relate to Hispanic Direct Marketing.
Who Said… “Spanish…Our future connections with Spain and Spanish America, will render that language a valuable acquisition…” Thomas Jefferson, 1787
Key Definitions • Hispanic vs. Latino • Hispanic & the Census • Assimilation • Acculturation • Reverse Assimilation ? ? ? ? ?
Why is the US Hispanic Market so Important? • It provides an opportunity to: • Increase sales /Increase profits • Expand into new markets / Diversify • Achieve economies of scale • Business survival
A Country Within A Country Source:Synovate 2003 Latin American Report
A Country Within A Country Source:Synovate 2003 Latin American Report
Hispanic Market Growth Tomorrow Million People Today Source: Synovate 2004 US Hispanic Market Report
Minority Population (% of Total) INCREASE DECREASE Today U.S. Total 296 Million SAME SAME In 2020 U.S. Total 372 Million SourceSynovate 2004 US Hispanic Market Report
Hispanic Purchasing Power $653 Billion in 2003 $1,014 Billion in 2008 Source: Selig Center for Economic Growth • Advertisers spent $3.09 billion in 2004 in U.S. Hispanics, an 11% increase from 2003. • Advertising will increase to more than $3.6 billion by 2007. One Trillion $$ Source: HispanTelligence
DMA Hispanic Market Report(2005) • 55% receive six (+) pieces of direct mail a week • 30% receive between six and ten pieces • 2% did not receive any advertising mail • 4 in 10 glance at the direct mail they receive • 25% review every page or section • 4% usually discards without looking at it
As a Result, Marketers are Saying… Wake up and smell the… __________________ CAFÉ CON LECHE
Hispanic Budget Allocation PERCENT OF TOTAL T.V. AND PRINT ALLOCATED TO HISPANIC MEDIA (Retailers and Direct Marketing vs. Manufacturers) Source: Association of Hispanic Advertising Agencies – AHAA 2004
Hispanic Market Challenges Despite the huge opportunity, there are many challenges… Especially in Direct Marketing
Main Challenge • Demand for Hispanic DM professionals is growing faster than the supply of talent. • There are not enough people trained in Hispanic direct marketing.
Formulating a successful plan for the U.S. Hispanic market is almost like developing an international DM plan. • Assess Your Potential. Is it relevant? • Conduct Marketing Research • Select Your Countries • Develop DM Plan • Implementation of Plan Only Better… ? ? ? ? ?
We Need You… • The company recognizes the importance of the U.S. Hispanic market. There is some internal discussion about this opportunity. However, they are not doing anything right now. • The company tried to target the Hispanic market but failed to achieve expected results. • The company is doing the right things to effectively penetrate the Hispanic market and has firm commitment to overcome ongoing challenges.
Direct Hispanic MarketingBeyond Demographics A Presentation for: Chicago, May 13, 2005 Gustavo Grüber (630) 575-2038 Ggruber@banta.com