Kathleen Haley, Hispanic marketing manager for Hewlett-Packard
Kung Fu Panda, DreamWorks Animation's recent animated joyride through ancient China, may not seem to have an immediate connection to the US Hispanic population. But, that didn't stop Hewlett-Packard Co., a DreamWorks partner, from using Kung Fu Panda tie-ins, such as online games, to boost Hispanic consumer engagement with its brands and Web site. TV spots featuring Po the Panda, in which Po explains how he uses his HP computer, aired in Spanish on Spanish-language stations Univision and Telemundo, and in English on English-language stations.
“It really showed that Hispanic marketing is becoming an ongoing, integrated part of our overall marketing,” says Kathleen Haley, Hispanic marketing manager for Hewlett-Packard. “We [also] had more than 20 family-oriented Kung Fu Panda activities online, because we know that Hispanics who go online are more engaged with online media than non-Hispanic US consumers.” She points out that a similar online promotion, with DreamWorks' Shrek the Third, measured four times as many downloads from Hispanic consumers as from non-Hispanic.
There is no question that the Hispanic population is booming: The US Census estimates that as of July 1, 2007, the US Hispanic population totaled more than 45.5 million — an increase of more than 1 million from the previous year and of more than 10 million since the April 2000 Census. The group's spending power has also grown considerably, hitting $1 trillion in 2006. Such growth represents a huge opportunity for marketers who are looking to expand their customer base with new, untapped buyers.
Hewlett-Packard is not new to Hispanic marketing. The company first made efforts to reach out to the burgeoning Hispanic population soon after seeing the results of the 2000 US Census, which revealed just how quickly the US Hispanic population was expanding.
Marketers have taken the census data to heart. “The Hispanic market represents a tremendous opportunity to increase market share and create a new and extended customer base for your product,” says Paul Stringer, EVP of Hispanic-focused agency Aspen Latino, about marketers' increased efforts to reach Hispanics. “The 2000 Census showed Hispanics inching towards surpassing African-Americans as the largest [US] minority, and that knowledge drove a lot of action.”
Large market requires segmentation
The Hispanic market is growing so much, in fact, that marketers must consider further segmenting their messages to address different types of Hispanic consumer. Besides the usual demographic differentiators such as age, household income, gender and family size, Hispanic-focused marketers should also consider acculturation levels, primary language and countries of origin when creating ads, notes Barbara Nelson of Acxiom Personicx Hispanic.
“The Hispanic population no longer [is] a niche market, where everyone gets the same message,” she says. “It's not a homogenous group.”
Within the Hispanic market, HP focuses heavily on small businesses for its b-to-b efforts, and on families and youth for its b-to-c. Haley explains that children play a large influencer role in Hispanic families that shop for technology, so campaigns have to communicate the benefits of a product to discerning parents while showing off the “cool” factor to kids.
Maria Lopez-Knowles, SVP at MRM Worldwide's arm for second-generation US Hispanic focus, agrees that today's Hispanic youth represents a key demographic for marketers.
“From 2000 to 2020, the most growth in the market is going to come from children of immigrants,” she says. “There are key differences between these consumers and their parents.”