What are the Hispanic marketing trends for 2005?
The accurate tracking of US Latino customers' behaviour and shopping habits could mean millions of dollars to corporations and to Latino marketers, according to Hispanic marketing agency, Garcia360, which has published its expectations for the market for 2005.
In looking ahead to what will stand out in Hispanic marketing in 2005, Garcia360 highlights grassroots marketing as being the "big thing" most of the firm's clients are looking for. This trend continues to be dominant, which is good news for radio stations, which have a tried and true method of grassroots marketing in 'radio remotes' (live location visits). A push from advertising agencies is expected for increased use of the radio remote, especially in conjunction with community events, as marketers continue to look for ways to have one-on-one interactions with consumers.
One of the newer local one-to-one tools is the mobile marketing unit. Some financial institutions have already tried this tactic by creating mobile banks that enter Latino neighbourhoods and try to educate potential customers on the benefits of banking - and the benefits of their brand. Some companies, such as AOL Latino, have also used this idea for product demonstration. Some brands have been using it for years, such as Nike - you can see the mobile units at the Inner-City Games, showcasing sports products and co-branding efforts with sports celebrities.
Community advertising The crux of the mobile marketing craze for the Latino market is that it allows advertisers to literally enter communities with their message. One of Garcia360's own clients found it an easy and interactive way to get consumers excited about its goals, acting as a moving billboard that can be taken all over a city and be parked in the most relevant and effective locations.
In many ways, the company says, mobile marketing is an evolution of the radio remote. The key difference of course is that these trucks and vans are typically customised and handled by an independent company that gives clients complete control over the appearance, messaging, and route. But this creative and content control costs more than a remote, and are usually not added-value media but are often a stand-alone, out -of-pocket expense.
Other grassroots tactics gaining ground in 2005 are likely to include an increase in Latino oriented event tours. Already we have seen the Latino Book and Family Festival, and the Wal-Mart Health Tour, creating a steady stream of advertisers. Their strength lies in advertisers being able to buy into something that will target multiple markets with consistent messaging and sampling opportunities. The hot topics for such tours in 2005 are expected to be financial services, healthcare, and home improvement.
Not made in the USA? Another trend to watch for 2005 is increased competition from south of the border. Companies will be seeing the entry of foreign brands that appeal to the ever-growing US Hispanic population that grew up either using or watching their parents use such products. The idea is that these brands not only have relevance to the Latino consumer but that they might have residual loyalty to them; cleaning products are a good example of brand loyalties that may be passed in this way from generation to generation.
The other category where foreign brand growth is likely to be continued is food products. Grocery stores in high Hispanic density areas already stock certain Latin American brands (such as Goya, Jumex or Herdez). Latin food products are expected to continue to enter the US and become available in these stores, especially from South America.