Targeting the Hispanic Consumer through Corporate Social Responsibility or Cause Marketing

Hispanic millennials which as of 2017 figures  are 57 million strong, and  represent  18 % of the population, Latinos represent one of the fastest growing minority groups with an expected purchasing power of 1.8 trillion by 2021.

And although these figures are astounding, it is quite baffling how Hispanics as a market segment are still so undeserved with the total market approach applied to their marketing plan.

 

The total market approach tries to set a large net and see how many people it can reach while minimizing cost and maximizing profit.  It has been proven that this structure does not work with the Hispanic market because this group does not like to be sold to but will demonstrate brand loyalty if the brand caters to their cultural identity and identifies their needs.

For example, among millennials as a whole and Hispanic millennials included corporate responsibility or cause marketing rates very high on the list of priorities at work and as shoppers.

 

 Their employment decisions and shopping habits are centered on how much the company they work for or the products they sell are in some way “giving back” to a cause.

Corporations also know this and as part of their incentive to lure millennials to their business are establishing a platform for corporate responsibility. They realize that it is good for business as well.

The incentive to buy a product or be employed by  a company increases when the company is associated with corporate social responsibility.

The Renewal Project which studied studied thoroughly a group of 3,000 millennial respondents (all ethnicity and races) about their activism and the causes they support, The Latino group which totaled 19% of the total, mentioned immigration as the number one cause and civil rights and discrimination second.

So, how do you reach these millennial Hispanics?  By partnering with companies that practice social responsibility. 

 

  • As I see it, I find that every generation has the young, idealistic perspective of wanting to change the course and improve the world around them. Millennials are not different; what differs is that they are connected and for that matter highly connected to their smartphones able to research, disseminate news, make purchases button, and writing reviews on company forums.

 

  •  Their dependence on social media is especially true among Hispanic millennials where they can and do make decisions based on what they read online. They research and their purchases are highly influenced by what the read online, so it is not surprising that they are the biggest consumes of cause marketing far more than any other group.

 

  • On the other hand, Hispanic donors give more to “charitable” causes such as the church and to families back home in the form of remittances and culturally speaking they do not see donations to family or church as charitable, they see it as are responsibility towards community and family.
  • Given that not much money has been given to the institutions to advance their communities, they see these donations as a “giving back” to its community.  Partly the reason, why in the study mentioned above, immigration and education were the primary interests in social responsibility.

What motivates Hispanics to give and support Corporate Social Responsibility?

  • Many contributions are made with the desire to give back to the Latino community.
  • Including religious organizations and family, their interest are education and youth.
  • Donors give back to advance opportunities for Latinos and strengthen the American society.

 

Examples of Corporate Responsibility

  1. Univison Foundation

      http://univision.org/

      UNIDOS

  1. https://www.hispanicfederationunidos.org

 

 

 

 

Will This Anti-Immigration Sentiment Affect the Hispanic Consumer?

To answer this question, the simple answer is yes and it affects  everyone in the Hispanic community.

This anti-immigration sentiment and raids have made the Hispanic consumer a bit cautious about their spending and avoiding altogether places and situations where they may be subjected to raids or being perceived as an undocumented immigrant.

Will this Anti- Immigrant Sentiment Affect the Hispanic Consumer?

After Trump’s victory in 2016 and his campaign promise of curbing illegal immigration, the large majority in the Latino community has scaled back in discretionary spending and is saving their income due to fear and anxiety about their future in the US.

So, to answer the question “Will this Anti- Immigrant Sentiment Affect the Hispanic Consumer? The simple answer is yes and it affects everyone in the Hispanic community; documented or non-documented and Hispanic and non-Hispanic owned businesses alike.

This anti-immigration sentiment and raids have made the Hispanic consumer a bit more cautious about their spending habits in fear that they might be the subjects of deportation; they keep a low profile and refrain from spending or even going on job searches.

 They purposely avoid places that can be subjected to raids or where they are perceived as an an undocumented immigrant, such as local restaurants, bars and other local businesses, in turn creating a great economic strain on the local businesses where the Hispanic community once thrived.

This decline in spending has not only affected the small Hispanic communities in border towns, but Hispanic marketing as a whole.

Given the importance of family in Hispanic culture, and that a large number of families have 2 or more members in the household, the 2nd    and 3rd   generation Hispanics, which are US born and part of the demographic that marketers love because it is a young growing demographic, social media savvy, have a big disposable income, and are eager to spend.

However, they themselves are ultimately affected and linked in one way or another, to a family member or someone’s family member that might be undocumented and need satisfy the needs of a person and the result is also to cut back back on spending. Ultimately for them, in these times the family oriented consumer stick to what is important: relatives and family. Its mistrust in the system, particularly with immigration, clusters them together as a whole.

By mid-2017, the retailers began to see decline in sales in certain products mostly purchased by the Hispanic consumer.

Industries most affected by the Hispanic consumer spending

  • Sportswear
  • Apparel
  • Footwear
  • Financial Services
  • Auto Sales

 

Companies that have seen sizable decrease in Hispanic spending.

  • Target
  • Walmart

 

On the flip side of things, Amazon has seen a large number of sales from this demographic and although the slow foot traffic to main stores like Target have been a factor, Amazon as a whole are taking steps to  attract this group. For example they have opened up Prime subscriptions in Mexico and have the Amazon interface in both Spanish and English.

 

Yet, although not mentioning the Trump administration per se and the immigration crackdown, Target CEO has seen a decrease in sales from the Hispanic consumer. Target is a variety store model and although they are not a food seller, nor a home goods store but 20% of it sales does go to food sales and most importantly the Latino consumer.  It also finds it hard to compete with Amazon and Walmart two of their main competitors in the home delivery. With the acquisition of Whole Foods and Walmart’s delivery, Target was poised to have a disadvantage, however, with their diverse model, not exactly a retailer, a food retailer nor a electronics department store (although they do carry all brands), they are poised to be the one stop for all.

 

 

 

 

 

 

 

 

 

 

Hispanics under the Trump Administration

 

 

Today we swear in a president that throughout his campaign has demonstrated extreme dislike  for the Hispanic population(immigrants and US born Hispanics). His rhetoric on immigrants and emphasizing the border wall was enough to make you shudder.

 

Hispanic and minorities were supposed to be the core of the election and turned out not to be true. Although the census and studies state otherwise, will the results of  the Hispanic vote on this election affect the marketing strategies? Will it be believed that it is such an influence as once thought.

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Targeting Multi- Generational Hispanics Through TV and Media

 

We have more than covered the Hispanic  millennial’s use of social media and  their hyper connectivity with the internet  and smartphones. However, traditional mediums like television and radio still remain constant with their demographics particularly station like Univision that although it is slowly changing, still have a problem connecting with the acculturated Hispanic. Catering to this group involves more than the Spanish language  .

 

II is  all about cultural relevancy.   Time and time again research has  shown  this is what this group seeks. In my earlier post , I discussed 10 of the most important factors important to this group and although they are an acculturated group, they are still proud of their heritage.

 

They still seek that connection or that identity that binds them to something that if not preserved they  lose part of themselves.

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Why Are Minorities So Misrepresented In the American Media?

 

There are many problems with misrepresentation of minorities in film and TV.  The reason behind this lack of diversity is basically that the majority of  entertainment executive and studio’s CEO are overwhelmingly white and male.  It is a very competitive field and most of the decision makers are overwhelmingly white male seeking the best profit in film.  The bottom line is that  movies are costly to produce and Hollywood is big business. It is  highly motivated by consumerism  and the marketing dollar,  and the result of the limited analytics and demographics about television media.

 

The lack of minority writers is also a factor. For the past 20 years the writer rooms have been staffed mainly with overwhelmingly white writers and if a Latino role gets written in at all it is portrayed as the stereotypical over sexualized Latina and the Latin macho.

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