marketing to hispanic renters online

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Marketing to Hispanic RentersMarketing to Hispanic RentersOnlineOnline

Where good is not enough!Where good is not enough!

April, 30April, 30thth 2009 2009


• Why is the Hispanic market important?

• Characteristics of your Latino renter?

• How do you market to online Latinos?

• How to retain Latinos and avoid mistakes?

Marketing to Hispanic Renters OnlineMarketing to Hispanic Renters Online

“Hispanics will account for 55 percent of the growth in minority renter households between 2005 and 2015, increasing by 1.9 million and more than offsetting the 1.6 million drop in white renters.”

George S. Masnick and Eric S. BelskyJoint Center for Housing Studies of Harvard University


Why is the Hispanic market important? Why is the Hispanic market important? Because of the Latino Demographics in the U.S.:Because of the Latino Demographics in the U.S.:

"There are between 45 and 55 million Latinos in the U.S. When you think about that, that's the size of the population of Spain. It's a big market!“ Brad Alford, Chairman and CEO of Nestle USA


Because the Latino Population is growing at higher rates:Because the Latino Population is growing at higher rates: Why is the Hispanic market important? Why is the Hispanic market important?


Sources: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050

Population in millions

Why is the Hispanic market important?Why is the Hispanic market important?Because it is going to keep growing:Because it is going to keep growing:

ProjectionsCensus

Hispanics have accounted for more than half (50.5%) of the overall population growth in the United States in this decade, a significant new demographic milestone for the nation's largest minority group.

Hispanic Population Forecast in US: 1980- 2020


Why is the Hispanic market important? Why is the Hispanic market important? Because we know where they prefer to live:Because we know where they prefer to live:

Source: Arbitron Universe Estimates / PEW: The New Latino South


Income Distribution

Sources: U.S. Census Bureau, 2006 American Community Survey

• Most single family housing developments are out of reach to low income families

• Many have problems getting their homeownership applications approved, one-in-ten Latino renters say a home loan application has been denied

• Latino Families often work two or three jobs in order to pay rent, feed their children, as these are their priorities

• Undocumented Latinos are unable to qualify for bank loans

Why is the Hispanic market important? Why is the Hispanic market important? Because Latinos face Homeownership barriers Because Latinos face Homeownership barriers


Median WhiteHousehold Income

$38,679

Median Hispanic Household Income

Hispanic Income

Sources: The Hispanic Market in the U.S: A Generational View/ USA Census Bureau Income Poverty in the USA 2007, Economic and Statistics Administration

Why is the Hispanic market important? Why is the Hispanic market important? Because the Hispanic market’s buying power keeps increasing:Because the Hispanic market’s buying power keeps increasing:

Buying Power $980 Billion

$54,920

Hispanic income as % of the U.S. income Average


Why is the Hispanic market important? Why is the Hispanic market important? Because the foreclosure rate is higher on main Hispanic markets:Because the foreclosure rate is higher on main Hispanic markets:

Percent of housing units under foreclosure 2008

Source: Foreclousure.com; US Census Bureau 2000, map by Jeff Herlitz

NVCO

NM

CA

FL

ILUT

ID


Why is the Hispanic market important? Why is the Hispanic market important? Because Latinos are a younger and growing population: Because Latinos are a younger and growing population:

Sources: U.S. Census Bureau, 2006 American Community Survey / The Joint Center For Housing Studies of Harvard University 2005 / PEW: Latinos Online 2007

• Over 80 percent of all households aged 25 or under are renters, along with two thirds of those aged 25 to 29.

• Hispanic Teen population in 2005 grew by 30%, Non-Hispanic Teen population grew by only 8%

• In USA 6 out of 10 children under the age of 5 are Hispanic

Examples:• In Los Angeles 60% of births are Latinos•In El Paso 85% of births are Latinos

Hispanics Age Distribution


Hispanics exhibit a high degree of brand loyalty. They stick with familiar products and need compelling reasons to justify making a change.

Why is the Hispanic market important? Why is the Hispanic market important? Because Latinos are Ideal Renters: Because Latinos are Ideal Renters: (Cont)(Cont)

Brand Loyalty Among Consumer Groups

Sources: CasaLatino.com



• Characteristics of your Latino renters?




“One of the biggest mistakes that companies make is assuming that these consumers are one monolith." Jennifer Tescher, Director of the Center for Financial Services Innovations


Misconceptions and StereotypesMisconceptions and Stereotypes

Misconceptions and stereotypes1. All Hispanics speak Spanish2. All Hispanics are not well educated3. All forms of communication in Spanish are the

same4. All Hispanic foods are the same5. Hispanics are poor


Characteristics of your Latino Renters:Characteristics of your Latino Renters:What influences Latinos decision making process?What influences Latinos decision making process?

• Acquire a second culture in addition to 1st culture• Closely tied to cultural identities• Highly individual and unique experience• Enlarged “Cultural Inventory”

Hispanics: A people in Motion, evolution, and constant change

• Process of abandoning 1st culture for 2nd

• Stronger ties and identification to new culture• “Cultural Inventory” remains static

Level of Acculturation:

Level of Assimilation:

“The very presence of new immigrant populations means the existence of new social and cultural boundaries.”Professor Nestor Rodriguez, University of Houston Sociology


Characteristics of your Latino Renters: Characteristics of your Latino Renters: Segmentation Proposed ApproachSegmentation Proposed Approach

Traditional Acculturated / Bicultural

Assimilated Culturally Unique

25% of Population 66% of Population 9% of Population Part of B & C

0-10 years in U.S. 10+ years in U.S, or born in USA

2nd and 3rd generation 2nd , 3rd , 4th, generations

Spanish Spanish / English English/Spanish English

Full Latinos Bi-cultural Anglo culture stronger, emotional attachment to Latin culture

Anglo with strong Latin roots

Blue Collar Blue Collar / Grey Collar/White Collar

Grey Collar / White Collar Neuyoricans


Characteristics of your Latino Renters:Characteristics of your Latino Renters:Marketing to New Hispanic Tier RentersMarketing to New Hispanic Tier Renters

Target Segment A Target Segment B Target Segment CLow Income Spanish

Speaking - Foreign LatinosLow Income English Speaking US Latinos

Medium Income Fully Bilingual US/Foreign Latinos

Income 50K or less 50K or less 50K or plus

Age 22- 57 17-27 27 - 37

Country of Origin

Mostly Mexicans, Salvadorians, Guatemalans, Dominicans,

Hondurans, Ecuadorians and Peruvians

Mostly descendants of Mexicans, Dominicans,

Puerto Ricans, Guatemalans, Nicaraguans,

Colombians

Mostly Cubans, Puerto Ricans Venezuelans, Colombians, Argentineans, Panamanians

Language Spanish Spanish / English English / Spanish

Education Less Educated Some Education Young Professionals

Acculturation Not fully Acculturated Fully Acculturated Not Fully Acculturated

Assimilation Low Fully Medium to High

Internet Not Internet Savvy Internet Basics Very Internet Savvy


= Tier 1= Tier 2= Tier 3

Characteristics of your Latino Renters:Characteristics of your Latino Renters:Tier DistributionTier Distribution


Characteristics of your Latino Renters:Characteristics of your Latino Renters:Center for Housing Studies of Harvard University found that: Center for Housing Studies of Harvard University found that:

Sources: The Joint Center For Housing Studies of Harvard University 2005


Characteristics of your Latino Renters: Characteristics of your Latino Renters: Find out what is the background of your Latino renter?Find out what is the background of your Latino renter?

Nationality/Descendants

Language Proficiency

Language of Preference

SegmentationAcculturation Level

Income Level


Hispanics have larger families on average, with 3.5 children, compared to 2.5 in the general population

They like social gatherings, the clubhouse can also be heavily used by them

Culturally, they are excellent communicators, and need to keep in touch with one another

Characteristics of your Latino Renters:Characteristics of your Latino Renters:Latino Renters Profile:Latino Renters Profile:



“To reach Hispanic Consumers online, marketers must take a more nuanced approach, going beyond language preference to target niches within this demographic."

Mike Shields from Mediaweek






How do you market to Latinos online? How do you market to Latinos online? Online Marketing Process Online Marketing Process

Market Research Competitors Analysis Online Market Awareness


How do you market to Latinos online?How do you market to Latinos online?

Sources: PEW Latinos Online 2007

56% of US Hispanics are Online

Online Hispanics Age Distribution Online Hispanics Income

Discover the profile of the Hispanic segments Discover the profile of the Hispanic segments that are online:that are online:


Sources: Forrester Research, 2007

89% of Latinos who have a college degree, 70% of Latinos who completed high school, and 31% of Latinos who did not complete high school go online.

78% of Latinos are English-dominant and 76% are bilingual, compared with 32% of Spanish-dominant Hispanic adults.

76% of U.S.-born Latinos go online, compared with 43% of those born outside the U.S.

52% of Latinos of Mexican descent use the internet.

80% of second-generation Latinos (the sons and daughters of immigrants), and 71% of third-generation Latinos go online

How do you market to Latinos online? How do you market to Latinos online? Discover the profile of the Hispanic segments Discover the profile of the Hispanic segments that are online:that are online:


Online Hispanics by Country of Origin

Sources: PEW Latinos Online 2007

How do you market to Latinos online?How do you market to Latinos online?Discover the profile of the Hispanic segments Discover the profile of the Hispanic segments that are online:that are online:


Sources: Engage Hispanics: Social Media Marketing Is A Multicultural World

How do you market to Latinos online? How do you market to Latinos online?

Discover the profile of the Hispanic segments Discover the profile of the Hispanic segments that are online:that are online:




Planning content/design Messaging Development Web Design Quality Assurance



1. In-Language

2. In-culture look and feel

3. In-culture messaging

4. Access to Spanish site

5. Hispanic URL strategy

6. Comparability to general market site

7. Interactive features and functionality

8. Integrated Hispanic operations

9. Marketing

Planning for content and design:Planning for content and design:


How do you market to Latinos online? How do you market to Latinos online? Website design: Think of a vibrant cultureWebsite design: Think of a vibrant culture

Hispanics respond better to: Warmer colors (favoritism for orange+blue or red+orange combinations that will stand out)

Simple fonts (fonts like Arial, Verdana and Helvetica are the most common)

Clean, organized, fun and interactive (reflecting an in-motion and vivid culture)



Emphasis on family values associated with family ties and the well-being of the family

Family members generally prefer to live in close proximity to one another

Larger families include children and a grandparentsHispanics enjoy entertainment as a multi-generational extended family

Make it culturally relevant – Messages written for Mexican Hispanics will not resonate well in the Cuban community

Security and safety of family members is important

Messaging development: Keeping culture in mindMessaging development: Keeping culture in mind

Fundamental to an understanding of the Hispanic rental market is an awareness of the ingrained cultural values,

attitudes, and motivations




Planning Messaging Development Web Design Quality Assurance

Search Engine Marketing Social Marketing Video Marketing


How do you market to Latinos online? How do you market to Latinos online? Where to advertise online:Where to advertise online:


How do you market to Latinos online? How do you market to Latinos online? Popular Social Online Networking Sites:Popular Social Online Networking Sites:


Advertisements in Spanish language are five times more effective in attracting this market segmentAvailability of fully Spanish website where Hispanics can search for apartments are very limited: www.pezgrande.comConsider modifying your standard apartment guide copy to include a few brief sentences or a short paragraph in SpanishIf having a website in Spanish, go beyond the usual information to mention facts of importance to Latino renters:Culturally relevant information: Advantages to living in the specific area, addressing Hispanics needsProvide the support necessary for financingContracts in Spanish Service guarantee

How do you market to Latinos online? How do you market to Latinos online? Finding effective online resources:Finding effective online resources:




Planning Messaging Development Web Design Quality Assurance

Search Engine Marketing Social Marketing Video Marketing

Traffic Analysis Customer Behavior Usability & Accessibility Testing Conversion Reports


How do you market to Latinos online? How do you market to Latinos online? Website Optimization and PositioningWebsite Optimization and Positioning

Key questions to ask yourself:

• How do you know your Web site is performing correctly?

• Is it meeting customer expectations?

• Is it meeting your sales targets?

• Is it presenting your product and services in the best possible light?

• What is the major source of complaints for online customers?

Recent researches show that currently 99.9% of the websites are obsolete.



"Any opportunity to improve customer service and resident relations, whether doing bilingual fliers for resident events or by sending a resident manager to survival Spanish classes, is worthwhile."

Lesley Brice, Asset Manager of MC Management






By ingraining Latino cultural values, attitudes, and motivations into the everyday design of your property and celebrations

By making sure that your Latino renters have established a network of friends, so that he/she is not inclined to consider moving elsewhere.Offer 24-hour maintenance service, giving great customer services is key

How to retain Latinos and avoid mistakes?How to retain Latinos and avoid mistakes?

Design way to make property residents feel they have a strong sense of community Entice current residents to bring new ones via a an effective word-of-mouth reward systemIncorporate Appealing features in your apartment communities, such as: light interior colors, balconies large enough to hold a number of planters, ceramic tile flooring, ceiling fans, and views of landscaped green areas

By creating a culturally appropriate environment:By creating a culturally appropriate environment:


Why culturally relevant?

How to retain Latinos and avoid mistakes?How to retain Latinos and avoid mistakes?Find specialized support to avoid expensive mistakes:Find specialized support to avoid expensive mistakes:

Tecate’s “Cold Latina” Campaign:This example illustrates the importance of truly understanding Hispanic culture before advertising to reach this demographic. Critics felt “the ad propagates negative stereotypes of Hispanic women as being loose and overly sexual”

Burger King’s “Texican Whopper” Campaign:Mexico has strict laws prohibiting the defamation of the flag and this advertisement denigrates the image of their country.


Is trans-creation really needed?

Hershey’s “Hispanic Milk Candy” Campaign:There wouldn’t be an issue if the product was being marketed in Mexico,

where the word “cajeta” has the G-rated meaning of milk candy (loosely translated). Unfortunately for Hershey’s, in parts of Latin America “cajeta” is also a derogatory slang term for a part of the female anatomy.

How to retain Latinos and avoid mistakes?How to retain Latinos and avoid mistakes?Find specialized support to avoid expensive mistakes:Find specialized support to avoid expensive mistakes:

VW “Turbo-Cojones” Campaign:Billboards for the 2006 GTI with the text “Turbo-Cojones” received objections, and VW went ahead and pulled it out.


ііііGracias!!Gracias!!

QUESTIONS?QUESTIONS?

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