It’s a rapidly growing automotive demographic, and reaching out to a Spanish-speaking customer base requires you to speak their language. Not just linguistically, but also culturally as Hispanics have settled in the U.S. from more than 22 different countries.
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“An Argentinean will not be a regular customer for tacos, and a Mexican will not be a fan of Colombian soccer teams,” notes Jose Luis Valderrama, president and founder of the Miami-based Hispanic Group marketing agency.
“For us, the Hispanic market is really a variety of Hispanic markets; we can segment it according to lifestyles to build stronger emotional ties and create wished-for loyalty between our clients and their consumers,” he explains, describing the term “Bebe Boomer” that he has recently coined for the Latino population whose parents have established roots in the U.S. and are first-generation American citizens.
“With a penchant for the American way of life and core values based on their parents’ homeland, they have the pulse on both cultures and serve as a gateway for either market,” says Valderrama.
After the end of World War II, the U.S. experienced the biggest population explosion in its history – based not on immigration, but rather on new births. “Today, almost 60 years after Baby Boomers redefined American culture, a similar phenomenon is taking place in the U.S., but this time with Hispanics leading the way,” he points out.
“The U.S. is beginning to see the Bebe Boomer cultural phenomenon that will shape the next 25 to 30 years. Now more than ever, marketers need to pay close attention to Bebe Boomers and communicate with them on their level, which goes beyond just translating advertising into Spanish with a one-size-fits-all approach,” Valderrama says.
He goes on to observe that “with a bilingual, bi-cultural demographic enjoying exponential growth, marketers must be keen in addressing their needs in order to build brand ambassadors and develop loyalty among consumers.”
Stacy Jones is taking a similar approach at her California-based Hollywood Branded, Inc., which has just rolled out a new initiative to connect Hispanics with their favorite athletes and entertainers on behalf of her corporate clients. (The agency’s automotive marketing experience includes Freightliner, Dodge, Volkswagen, Toyota, Lexus, Suzuki and AM General Hummer, along with car-buff television shows such as American Chopper, Pink’s and Overhaulin’.)
The agency also assists the clientele in determining opportunities related to the “core marketing attributes” of the product or service and what specific customer segment they’re seeking within the Hispanic demographic: First-generation Spanish-speaking? First-generation Spanish-speakers plus their English-speaking children? Or second-generation Hispanics? “This further narrows the field you have to play within,” says Jones.
“Companies now understand that the Hispanic market is not going to simply assimilate and go away, which means that a targeted approach will deliver long-term benefits,” concurs Roberto Orci, president of the Association of Hispanic Advertising Agencies (AHAA). The organization has recognized AutoZone as a “best-in-class” participant in embracing these types of marketing strategies.
The AHAA research “underscores that companies can’t just pop in and out of the Hispanic market as a fad and see benefits,” according to Orci. “Real bottom-line benefits come from consistent, integrated approaches. Companies must get on the train or risk being left behind and becoming irrelevant.”
If you decide to pursue this populace, the 2011 New Vehicle Experience Study from consulting firm Strategic Vision reveals that price is the key component of the overall Hispanic car-buying market when it comes to selecting the desired model. Other areas of importance include the prestige, image, individuality and esteem that the vehicle conveys – interior and exterior styling plays a large role – along with the “fun, excitement and security” that the purchase provides. Having an advanced sound system onboard is another element.
These trends can be especially beneficial for the aftermarket in generating sales directed at the previously owned segment. “If they’re spending less on a used vehicle, they’ll spend more on aftermarket add-ons to make it more fun and individual for them,” says Alexander H. Edwards, Strategic Vision’s president.
“If I were in the aftermarket, I would aim for the less expensive ways I can style the interior and exterior of the vehicle,” he tells Aftermarket Business World, noting that the $200 range is a suitable price point to consider.
Hispanics do, though, have a penchant for being early adaptors and innovators for assorted auto product lines, according to Edwards. “They set the stage for what’s going to be popular in the future,” he points out. “If you have a design that works well with Latinos, it will work well with all populations.”
A holistic approach
New York’s Vox Collective has just been selected as General Motors’ U.S. Hispanic public relations agency to produce an expanded marketing presence. “At GM we’re focused on making meaningful connections with the Latino community,” says Eric Peterson, vice president of corporate diversity.
Vox will be “developing and delivering an integrated Hispanic initiative that incorporates Chevrolet, Buick, GMC and Cadillac products and brands in a holistic manner that resonates with the Latino community,” Peterson elaborates.
“We’re delighted to be joining a global company that understands how important the Hispanic market is to the future of their business, and we’re ready to help GM expand its efforts to connect with Latinos in a unique and compelling way,” says Roberto Ramos, Vox’s president and CEO.
“A great majority of businesses,” says Tony Malaghan, the CEO at Arial International, which represents the California State Automobile Association, “appear to be overlooking the U.S. Hispanic market with few companies proactively targeting this segment of the market in a strategic and culturally appropriate manner.”
Malaghan cites a report from the Selig Center that describes how Hispanics and their buying power are much more geographically concentrated than non-Hispanics. For example, California alone accounts for 27 percent of this clout. Texas (18 percent), Florida (10 percent), New York (8 percent) and Illinois (4 percent) are other top prospects.
Factors holding firms back include a “fear of the unknown,” along with a lack of management commitment and an adequate marketing budget, says Malaghan. Resistance can also entail concern over the “sheer magnitude of the undertaking. There are a multitude of components that comprise your Hispanic marketing and servicing platform,” he adds. Presenting culturally relevant products and services, Spanish-language marketing collateral, customer communication, a Spanish-language website, plus a bilingual call center and customer service personnel can all be a part of the plan.
