From professional baseball to fashion to fast food commercials, everything seems to be coming up with a Latino flair. Everyone wants a piece of the pie — or in this case, flan. Until recently, the Latino market virtually had been ignored by corporate America. But the Latino music, entertainment and sports explosion with stars like Ricky Martin, Daisy Fuentes, Jennifer Lopez and Alex Rodriguez have grabbed the attention of sponsors who don’t want to be left out. It turns out there is a great reason for companies to pay close attention. It is called economic spending power.

Spending Power

Hispanic Research Inc. estimates $452 billion in purchasing power is up for grabs. That’s how much Hispanics spend annually on goods and services in the United States. And it is growing. Hispanic spending in San Diego hit $7.7 billion in 2000. It is growing too. Add the $3 billion spent every year by Mexican residents who cross the border to shop in San Diego and other U.S. cities, and you’ve got major buying power. But attracting the Latino dollar can be harder than expected.

Understanding Culture

Understanding how to get the attention of the Latino market means more than just advertising, experts say. It means understanding the people, their culture and their language. One of the biggest mistakes of American companies, says Luis Maizel, president of the Mexican Business Council in San Diego, is not investing in educating themselves to learn more about the Latino consumer.

“It’s not just translating from Spanish to English,” says Maizel. “The concept of family and trust is different. Companies need to experience life. They need an interpreter, not of language, but of culture.”

Maizel is the senior managing director of LM Capital Group, a La Jolla-based money management firm. LM Capital and its affiliate manage about $1.1 billion in five fixed income products. He and members of the Mexican Consulate in San Diego formed the group to foster relationships between Mexican and American businesses. The council’s 40 members meet once a month. The group is comprised of Mexican executives who live in San Diego and conduct business in San Diego, Mexico and across the nation.

Too often American companies miss the boat when it comes to advertising. “When I see some of these ads I laugh,” Maizel says. “The accent is wrong, or they simply try to literally translate English commercials into Spanish.”

No matter what you call them, Hispanic or Latino is not a race, it is an ethnic classification. While it’s true those who originate from Mexico and most of Latin America speak the same language, Spanish, there is vast difference in the way they speak it. Accents, dialects and slang are all different. Culturally, Mexicans, Puerto Ricans, Dominicans and Cubans can be quite different. The food they eat is not the same, nor is the music they dance to. As those families assimilate into the American mainstream, even more differences emerge among the characteristics, needs and desires of the first, second and third generations.

Demographics And Geography

Dr. David E. Hayes Bautista heads the Center for the Study of Latino Health and Culture at the University of California, Los Angeles. His extensive research on the population growth of Latinos in California shows the Latino population nearly quadrupling in size, from 7.7 million in 1990 to 31 million by the year 2040.

What’s more, the 2000 U.S. Census reveals 35.5 million Hispanics now live in the United States. That translates into 12.5 percent of the U.S. population, a tripling from the 1960 percentage. And the 2000 numbers missed about 2.1 million undocumented immigrants. Most of the growth has come from people of Mexican origin, with the majority living in Texas and California.

Learning about Hispanic trends is important for those wanting to tap into this booming market. Hispanic Research Inc. notes most Hispanics of Mexican heritage tend to live in the Southwest. Puerto Ricans tend to live in cities like Chicago or New York, while Cubans tend to reside in Miami.

New pockets of other Latino communities are popping up. For example, a growing community of Salvadorans is emerging in Washington, D.C., and Hondurans in New Orleans. Targeting a specific market is vital.

Loyalty And Habits

In 1996 the Cheskin research marketing group did a telephone survey of 900 Hispanic women. They learned that Latinas are almost always the dominant shoppers in their family and that Latin American traditions contribute to brand preferences, even for those immigrants just arriving in the United States. The Hispanic market, they say, is dominated by a small and select number of brands.

Other important information revealed in the survey surrounds the issue of family, easily the most important value that unifies the Latino community. The research shows Hispanics place a lot of importance on belonging to a group. They are proud, loyal people, often displaying flags or jewelry from their country of origin, a trait on great display in San Diego during the recent World Cup soccer matches.

Reaching Out

One of the biggest problems in tapping into the Latino market is that it almost defies generalizations.

Enrique Morones, former vice president of Hispanic and international marketing for the San Diego Padres, says the one generalization that can be made is the Latino market is not one market. Yet collectively it is one of great opportunity. “If you want to survive in this new millennium and be successful, pay attention to the fastest-growing segment of the population in the country, Hispanics,” Morones says.

The Padres hired Morones in 1995 to head its newly created Hispanic marketing division. Under his leadership the team grew its Hispanic fan base from 50,000 to more than 600,000. With Morones’ encouragement, the team began to sponsor events, such as recognizing that May 10 is Mother’s Day in Mexico and handing out flowers to moms who attended the game. He helped the team open its first Padres store and ticket outlet in Tijuana’s Zona Rio shopping district. To attract fans from Mexico, the franchise created a Compadre program, similar to an airline frequent flyer program. It awarded points and prizes to fans while tracking individual fan profiles.

National Hispanic Stats • Purchasing Power — $452.4 billion in 2001, up 118 percent from 1990. • A 36.4 percent increase in per capita income in the past decade. • Hispanic households had a median income of $33,447 in 2000. • The per capita income of Hispanics in the United States is higher than in any Latin American country. • An estimated 35.5 million Hispanics are undercounted in the U.S. Census, primarily due to illegal immigration. • Half of all Hispanics reside in the states of Texas and California.

Morones says programs like these helped the Latino community on both sides of the border understand the Padres were making an honest effort to court them. “Token events won’t work,” he says. “People need to see a concentrated effort on the part of any company. They need to see Latinos as department heads — not just someone with a Hispanic surname — and they want to see the company taking an active role in the community.”

Although no longer with the Padres, Morones’ understanding of Latino marketing keeps the offers coming. Last month he met with managers of the NFL and the New Orleans Saints. The team is talking about opening up a hospital in Honduras and is seeking Morones’ expertise.

Morones also is on the verge of a new marketing venture with veteran marketing man Tom Di Zinno (See sidebar.)

On the opposite end of the marketing spectrum, Roberto Pozos, creative art director of Pozos Creative Communications, says he lands about 70 percent Latino clientele without even trying. Pozos says his experience, instinct and bilingual and bicultural skills keep his clients coming back. “My reputation is that I do creative graphic design and that I am sensitive to the needs of the client in trying to reach that market,” Pozos says.

In 1999 Ford Motor Co. hired Pozos to create its Millennium Catalog announcing its 2000 line of new vehicles. He chose a celebration theme. “I think the Latino market is very intelligent,” he says. “You don’t have to use Mexican colors and decorative elements to say you’re Latino. We are above that.”

Advertising

So what’s the best way to reach this booming segment of the population? Nielsen Media Research counted 8.94 million Hispanic television households in the U.S. in 2001. While it’s true many Hispanics can be reached directly through Spanish language media, not all Hispanics look for news and information in Spanish.

Experts encourage business owners to do their homework.

“Are Hispanics the same?” asks Walter Meneses of Meneses Research. The answer clearly is no. Meneses recently addressed the topic during a presentation to the Advertising Club of San Diego. His message was simple: “There are different levels of assimilation, communication and language in the Latino community.”

Meneses says companies thinking about branching out to this market should consider hiring a research firm and a professional bilingual, bicultural staff. “Let them help you come up with a logo, and a campaign that works for your individual product or service,” he says. “Don’t just translate what you already have into Spanish.”

Being armed with research and data also is important, Meneses says. Those who don’t might find themselves in a dilemma. “They could be misunderstood, and in some cases, even offensive.”

Industry Division Of San Diego’s Hispanic Businesses Industry Percent Services — 44% Retail Trade — 17% Construction — 9% Others — 8% Communications — 8% Agriculture — 6% Wholesale Trade — 4% Manufacturing — 2% Finance — 2% Source: 2000 U.S. Census, Strategy Research Corp., San Diego County Hispanic Chamber of Commerce

On July 16 Meneses will hold a seminar at Café Sevilla in Downtown San Diego to release the findings of a new study called, “Ask Tijuana Report 2002.” It is based on profiling Tijuana residents who cross into San Diego to purchase goods and services.

Experts also remind companies to ask themselves what they are doing for the community. “Look around,” says Morones, “and don’t forget to inquire how the Latino community feels about you.”

The San Diego Hispanic Chamber of Commerce says it often fields calls from businesses looking for ways to reach the Latino market. Executive Director Robert Villarreal encourages them to network. The Chamber holds monthly mixers and Villarreal says it is one way for businesses to meet Latino business owners and community leaders. “The Hispanic community is not just one mass out there.”

In addition to joining and participating in Hispanic Chamber activities, Villarreal recommends target advertising in the Chamber's upcoming Business Referral Directory & Hispanic Market Resource Guide, and advertising in the San Diego Metropolitan, especially near Patrick Osio's cross-cultural trade column, “The Connection.” Says Villarreal, “Connecting with Latinos and non-Latinos in a mainstream publication like the Metropolitan, which itself is making the Latino connection, will put those limited marketing dollars to maximum use. It’s like killing two birds with one stone.”

Predictions

While it’s true the events of Sept. 11 affected the nation’s economic forecasts, Hispanic Business Magazine says the Hispanic market is certain to greatly expand. Cities in border regions like San Diego/Tijuana also will have to contend with tighter immigration restrictions and a possible slowdown in trade with Latin America. But American products in the eye of the Latino consumer continue to be perceived as better quality. That will surely keep Latino consumers coming back, as long as American businesses know how to properly embrace them.