Go West Summit

1. Go West Summit Latin America Marketplace Today Pete C. Garcia Consultant U.S. Hispanic and Latin American Marketing Las Vegas, Nevada 2.6.2012

2. Latin America

3. The Latin America Marketplace • So where do you start ? Mexico? Brazil? USA ???

4. First let’s talk culture Latin American culture is the formal or informal expression of the peoples of Latin America, and includes both high culture (literature, high art) and popular culture (music, folk art and dance) as well as religion and other customary practices

5. Historically speaking Starting in the late 16th century, a large number of African slaves were brought to Latin America, the majority of whom were sent to the Caribbean and Brazil. Today, this ethnic group makes up the majority of the population in most Caribbean countries. Many of the African slaves in Latin America mixed with the Europeans thus the Mulattoes.

6. History Large amounts of European immigrants arrived in Latin America as did in the USA in the late 19th and early 20th centuries. Most of settled in the Southern Cone. Nowadays the Southern Cone has a large majority of people of European descent and in all more than 80% of Latin America's white population, which is in turn more than 90%composed of the top five groups of immigrants, which were: Italians, Spaniards, Portuguese, Germans and, to a much smaller extent, Irish, Poles, Russians, Welsh, Ukrainians, French, etc.

7. More on the history of Latin America • In this same period, many immigrants came from the Middle East and Asia, including Lebanese, Syrians, and, more recently, Koreans, Chinese and Japanese (mainly in Brazil). • This racial diversity has profoundly influenced religion, music and politics. This opaque cultural heritage is (arguably improperly) called Latin or Latino in United States' English. Outside of the U.S., and in many languages "Latino" just means "Latin", referring to cultures and peoples that can trace their heritage back to the ancient Roman Empire. Latin American is the proper term.

8. Where are the Latin Americans in the USA?U.S. Hispanic Market at a Glance

9. US Hispanic/Latin American Marketplace According to a recent Fox News article, the U.S. Hispanic market will soon be the 11th largest economy in the world , putting it in the same category as Brazil, Russia, India, and China . In fact, U.S. Hispanics actually have more per capita purchasing power than the BRIC countries, as well as the G-20 member nations South Africa, Mexico, Argentina, Korea, Indonesia, Saudi Arabia, Turkey, and Australia.

10. Growth 1990 to 2013 by Ethnicity/Race “The Non-Hispanic White population is forming a decreasing proportion of the U.S. population while Asians, Blacks and especially Hispanics are forming a larger part of our nation.” *Source: Latin Force Group LLC, American Marketscape DataStream: 2008 Series

11. The Hispanic Boom in the USA • From 2000 to 2010 • Nearly 14 million additional Hispanics • 34% growth during period • 50% of the total USA population growth • 2010 Census 51 million = 16.3 % of 311 Million USA total population • From 2008 to 2013: • 1,440,087 new Hispanic Americans per year • 120,073 per month • 3,943 per day • 164 per hour

12. Mexicanos in the big Manzana(Apple)?

13. Chiflando(Whistling) Dixie

14. Hispanics in Florida are Cuban, right?

15. Population by State in 2008: Top 25 States NH-White is Minority in the two largest states “The Non-Hispanic White population is the minority in CA, TX, NM, HI plus DC.”

16. Language Use in 2008: Hispanic “The vast majority of Hispanics are Bi-Lingual to some degree; and nearly equal quantities are dependent on either English or Spanish.” *Source: Latin Force Group LLC, American Marketscape DataStream: 2008 Series

17. Hispanic Income by Ranges: 2008 “Over one-third of Hispanic households earn over $50,000 per year and two-thirds earn over $25,000 per year.” *Source: Latin Force Group LLC, American Marketscape DataStream: 2008 Series

18. Hispanic Consumer Expenditures: 2008 “Hispanic spending is quite substantial in all major categories, especially due to their relative youth and larger average household size.” Annual Expenditures Per Household in USD *Source: Latin Force Group LLC, American Marketscape DataStream: 2008 Series

19. Latin America Market at a Glance

20. GLOBAL POPULATION- 6.6 Billion Top 15 countries of the globe’s population include : • Two in Latin America: Brazil, Mexico • 572 MILLION LATIN AMERICANS , GROWING AT 9% EACH YEAR • MEXICO 110 million in population • Central America 84 million population, 6 countries • South America 375 million • 186 million population Brazil – 20 million in Sao Paolo alone • 40 million population Colombia and another • 40 million population in Argentina • Caribbean 30+ Million population in the market

21. How to Market to Latin Americans? • Story of Continental Airlines, the Latinization of its product and services • Identify what Latin Americans prefer and don’t prefer • What was discovered & what was done to react to marketplace Clients prefer to speak their own language ..AHA ! The airline chose to make changes by having TRI-LINGUAL • flight attendants • airport service representatives • signage at airports • reservation centers • screens e-Kiosks • Website in español • Dedicated Sales Staff throughout USA

22. Is language enough ? – Translation alone will not get you there! • How much should you know about your Latin Customer? • Who in your organization should know what they prefer and more importantly what they don’t prefer? • How can you spread this knowledge?

23. How to Market to Latin Americans? (cont.) • Clients prefer their regional cuisine • Created a congress of chefs • Continental Airlines counts with awarded culinary chefs for the Latin, Asian and European markets • Clients prefer personal touch and understanding of their culture • Created training courses of our customer service, in-flight, reservation services to address not only differences with the Anglo markets, but most importantly differences amongst Latinos themselves.

24. How to Market to Latin Americans? (cont.) • Latinization also required specific advertising and public relations campaigns to let Latinos know that Continental understood their needs and was now providing services especially designed for them.

25. How to Market to Latin Americans? (cont.) • Latinization was a marketing concept that could enhance not only customer services, but revenues and profits • In 10 years Continental grew from $250 million in revenues to $2.5 billion and from serving 25 destinations to serving 75 destinations • Providing a product and service that communicates speech, taste, sound, touch and visibility meant that the could touch on all their five senses • The Latinization program provided the guideline as Continental grew globally thus..the Globalization marketing concept

26. How to Market to Latin Americans? (cont.) • Not only Continental, look at AT&T’s experiences with new stores in Hispanic neighborhoods and in a few countries in Latin America • In Texas, HEB stores now markets “Mi Tienda” just like Central Markets in upscale neighborhoods • Toyota chose to market its Scion product to Hispanics right in their own neighborhoods and choosing selected locations where young Hispanics chose to congregate

27. How to Market to Latin Americans? (cont.) • Marketing to US Hispanics and Latin Americans requires an understanding of the languages and cultures, but most of all ensuring your leadership understands the value of marketing to them • We must first understand the Latin American, then ensure organizational understanding • This is accomplished by learning to respect differences and then embracing the differences • Marketing diversity makes dollars and sense • So teach your staff how to say “Hola” and “more”

28. So how much do I spend on this market? Take a look at your overall budgets and determine what gives you the most return on your investment? What is the percentage of your overall spend for the Latin Ameircan market? What is the airlift capacity from the global markets you need to invest in? What is the proximity to my market? What do other cities do to garner the Latin market?

29. Future of Latin American Market Place • ALTA, the Latin American Association of Airlines reports quarterly growth in the 9-11% ranges on a consistent basis • Latin America is the one place in the world where air travel continues to grow • Latin countries continue to grow politically and financially as amongst the most successful emerging markets on the globe • There is much opportunity today to continue developing ties with this huge marketplace • BUT, do your homework, FIRST! • Then make the decision on where to place your bet!

30. Thank you ! Muchas gracias ! Muito Obrigado !

31. Pete Garcia International Inc pete@petegarciainternational.com 1-713-854-1577 www.petegarciainternational.com www.airlinemarketdata.com www.extreme-blue.com www.usmcocgc.org Facebook and LinkedIn