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HISPANIC	
  CONSUMERS	
  	
  
IN	
  MI	
  RETAIL	
  
Mario	
  Kauachi	
  
Develop	
  Cultural	
  Competency	
  	
  
and	
  Gain	
  Market	
  Share	
  	
  
Presenta0on	
  Objec0ves	
  
Mario	
  Kauachi	
  
	
  
Ø  Define	
  key	
  characteris0cs	
  of	
  culturally-­‐competent	
  
marke0ng	
  and	
  adver0sing	
  strategies	
  
Ø  Describe	
  steps	
  to	
  effec0vely	
  address	
  cultural	
  
differences	
  and	
  overcome	
  barriers	
  
Ø  Recognize	
  the	
  posi0ve	
  impact	
  that	
  beCer	
  Hispanic	
  
outreach	
  could	
  have	
  for	
  your	
  business	
  
The	
  Hispanic	
  Popula0on	
  
•  La0nos	
  are	
  the	
  2nd	
  largest	
  ethnic	
  group	
  in	
  the	
  U.S.	
  (55M)1	
  	
  
–  2/3	
  of	
  the	
  popula0on	
  is	
  U.S.	
  born,	
  1/3	
  are	
  foreign	
  born1	
  
–  2/3	
  are	
  of	
  Mexican	
  origin,	
  1/3	
  from	
  20	
  other	
  countries1	
  
–  Average	
  age	
  is	
  27	
  (vs.	
  age	
  42	
  for	
  non-­‐Hispanic	
  Whites)2	
  
–  Almost	
  30%	
  of	
  all	
  U.S.	
  Millennials	
  (ages	
  18-­‐29)	
  are	
  La0no2	
  
	
  
•  The	
  La0no	
  popula0on	
  will	
  grow	
  faster	
  than	
  the	
  total	
  U.S.	
  
popula0on,	
  and	
  is	
  expected	
  to	
  reach	
  112M	
  by	
  20501	
  
–  One	
  of	
  every	
  four	
  births	
  is	
  a	
  Hispanic	
  baby;	
  by	
  2050,	
  it	
  will	
  be	
  more	
  than	
  one	
  in	
  three3	
  
	
  
•  The	
  buying	
  power	
  of	
  La0nos	
  is	
  es0mated	
  to	
  be	
  $1.7	
  trillion	
  	
  
by	
  20174	
  
	
  
	
  
1.	
  U.S.	
  Census	
  Bureau	
  Popula0on	
  Projec0ons	
  2014,	
  2.	
  Pew	
  Research	
  Center,	
  3.	
  Federal	
  Interagency	
  Forum	
  on	
  Child	
  and	
  Family	
  Sta0s0cs	
  2012,	
  4.	
  Selig	
  Center	
  for	
  Economic	
  Growth	
  
Mario	
  Kauachi	
  
Geodemography	
  
Mario	
  Kauachi	
  
States	
  with	
  >30%	
  	
  
Hispanic	
  Residents:	
  
•  New	
  Mexico	
  47%	
  
•  California	
  38%	
  
•  Texas	
  38%	
  
•  Arizona	
  30%	
  
	
  
Over	
  50%	
  of	
  the	
  total	
  U.S.	
  
Hispanic	
  popula0on	
  resides	
  	
  
in	
  3	
  states:	
  
•  California	
  (14M)	
  
•  Texas	
  (10M)	
  
•  Florida	
  (4M)	
  
Other	
  states	
  with	
  over	
  1M	
  
Hispanic	
  residents	
  include	
  
Arizona,	
  Colorado,	
  Illinois,	
  	
  
New	
  Jersey	
  and	
  New	
  York	
  
	
  
Source:	
  U.S.	
  Census	
  Bureau	
  2010	
  
Mario	
  Kauachi	
  
“Musica”	
  in	
  Hispanic	
  Culture	
  
•  Regional	
  Mexican	
  is	
  #1	
  genre	
  among	
  Hispanics1	
  
–  Instruments	
  Include:	
  
•  Norteño:	
  Bajo	
  Sexto,	
  Drums,	
  Accordion,	
  Bass	
  
•  Banda:	
  Percussion,	
  Woodwind,	
  Brasswind	
  
	
  
•  Spanish	
  Contemporary	
  is	
  #22	
  
–  Instruments	
  Include:	
  	
  
•  La0n	
  Pop:	
  Electric	
  and	
  Acous0c	
  Guitars,	
  Keyboards,	
  Bass,	
  Drums,	
  Percussion,	
  etc.	
  
•  Bachata	
  (Dominican	
  Republic):	
  Acous0c	
  Guitars,	
  Tres,	
  La0n	
  Percussion,	
  	
  
Keyboards,	
  Bass	
  
•  Reggaeton	
  (Puerto	
  Rico):	
  DJ	
  Gear,	
  Keyboards,	
  Samplers,	
  Electric	
  Guitars,	
  Bass	
  
	
  
•  Other	
  important	
  Hispanic	
  music	
  genres	
  are:	
  Afro-­‐Cuban/Salsa	
  
(Cuba),	
  Merengue	
  (Dominican	
  Republic)	
  and	
  Cumbia	
  (Colombia)	
  
	
  1.	
  Nielsen's	
  Audio	
  Today	
  Report:	
  State	
  of	
  the	
  Media:	
  Audio	
  Today,	
  A	
  Focus	
  on	
  Black	
  &	
  Hispanic	
  Audiences.	
  2.	
  Nielsen	
  Second-­‐Quarter	
  Audio	
  Today	
  Report	
  
Mario	
  Kauachi	
  
	
  
	
  
“Become	
  part	
  of	
  
the	
  family”	
  
-­‐Esteban	
  Mon0lla	
  
American	
  Counseling	
  Associa0on	
  Member	
  and	
  Director	
  of	
  Clinical	
  Pastoral	
  
Educa0on	
  at	
  Driscoll	
  Children’s	
  Hospital	
  in	
  Corpus	
  Chris0,	
  Texas	
  
Hispanic	
  consumers	
  will	
  demand	
  
specifics:	
  “Do	
  you	
  like	
  the	
  music	
  I	
  
like?”,	
  “Do	
  you	
  speak	
  my	
  preferred	
  
language?”	
  
	
  
The	
  Hispanic	
  MI	
  Retail	
  Experience	
  
Is	
  this	
  your	
  store	
  today?	
  
•  Adver0sements	
  in	
  English	
  
through	
  mass	
  market	
  channels	
  
•  Minimal/no	
  adver0sing	
  
through	
  popular	
  Hispanic	
  
channels	
  
•  Store	
  may	
  lack	
  proper	
  
inventory	
  
•  Staff	
  may	
  not	
  engage	
  	
  
La0nos	
  op0mally	
  
•  Customer	
  may	
  exit	
  with	
  a	
  
small	
  cart	
  or	
  no	
  purchase	
  	
  
Opportunity	
  
•  Communica0ons	
  that	
  connect	
  
with	
  Hispanics	
  
•  Adver0sing	
  through	
  popular	
  
Hispanic	
  media	
  
	
  
•  Offer/stock	
  desired	
  
instruments	
  and	
  accessories	
  
•  Train	
  and	
  staff	
  for	
  proper	
  
cultural	
  engagement	
  
•  Make	
  the	
  sale,	
  sell	
  more,	
  	
  
gain	
  a	
  new	
  customer	
  	
  
Mario	
  Kauachi	
  
How	
  to	
  Reach	
  	
  
the	
  Hispanic	
  Consumer	
  
•  Local	
  Marke0ng	
  and	
  Adver0sing	
  Strategies:	
  
–  Territory	
  Evalua0on	
  
–  Demographics	
  (Cultural	
  assessment	
  —who	
  is	
  around	
  you?)	
  
–  Adver0sing	
  
•  Direct:	
  Radio,	
  TV,	
  Newspaper,	
  Magazines,	
  Flyers,	
  etc.	
  
–  Radio:	
  94%	
  of	
  La0nos	
  listen	
  to	
  radio	
  (vs.	
  90%	
  of	
  the	
  general	
  public)	
  1	
  
–  TV:	
  2	
  major	
  US	
  networks	
  account	
  for	
  90%	
  of	
  Spanish	
  programming2	
  
–  Newspaper:	
  On	
  average,	
  La0nos	
  spend	
  about	
  50	
  min/day	
  reading	
  newspaper3	
  	
  
•  Online:	
  Website,	
  Online	
  Promo0on,	
  Emailing,	
  Couponing	
  (Tracking),	
  etc.	
  
–  La0nos	
  are	
  50%	
  more	
  likely	
  to	
  access	
  the	
  internet	
  through	
  their	
  mobile	
  devices1	
  
•  Insights:	
  (a)	
  A	
  Spanish	
  version	
  of	
  your	
  English	
  commercial	
  will	
  raise	
  ad	
  recall	
  by	
  as	
  much	
  
as	
  30%,	
  (b)	
  Spanish	
  ads	
  are	
  preferred	
  by	
  over	
  50%,	
  (c)	
  Commercials	
  by	
  Spanish-­‐speaking	
  
talent	
  will	
  resonate	
  30%	
  beCer	
  with	
  La0nos	
  
–  Cultural	
  Competency	
  programs	
  –	
  Start	
  with	
  “Bienvenidos”	
  on	
  your	
  store-­‐front	
  
–  Staff/Call	
  Center	
  Training	
  in	
  efficient	
  cultural	
  engagement	
  	
  
•  Don’t	
  just	
  communicate…	
  Connect	
  
	
  
1.	
  Nielsen	
  Company,	
  “A	
  Look	
  Across	
  The	
  Media:	
  The	
  Cross-­‐Plaworm	
  Report	
  2013,	
  2.	
  Sam	
  Thielman	
  “Hispanic	
  Networks	
  Bring	
  In	
  Auto	
  Dollars	
  In	
  A	
  Weak	
  Year	
  For	
  Broadcast	
  Telemundo	
  And	
  
Univision	
  Write	
  Increase”	
  Adweek	
  2013,	
  3.	
  Hispanic	
  Fact	
  Pack	
  2013,	
  Adver0sing	
  Age’s	
  Annual	
  Guide	
  To	
  Hispanic	
  Marke0ng	
  And	
  Media	
  2013	
  
Mario	
  Kauachi	
  
Mario	
  Eduardo	
  Kauachi	
  
Axer	
  being	
  raised	
  and	
  educated	
  in	
  Mexico,	
  I	
  worked	
  in	
  the	
  corporate	
  world	
  before	
  dedica0ng	
  my	
  
career	
  to	
  suppor0ng	
  clients	
  with	
  Hispanic	
  marke0ng.	
  I	
  have	
  a	
  degree	
  in	
  law,	
  music	
  business	
  educa0on,	
  
experience	
  in	
  business	
  management,	
  and	
  an	
  extensive	
  background	
  in	
  music,	
  marke0ng	
  and	
  product	
  
adver0sing.	
  I	
  am	
  also	
  an	
  professionally	
  educated	
  and	
  experienced	
  drummer	
  and	
  hand	
  percussionist	
  
who.	
  I	
  have	
  a	
  strong	
  and	
  varied	
  skillset	
  that	
  allows	
  me	
  to	
  guide	
  my	
  clients	
  towards	
  strong	
  business	
  
strategies	
  and	
  marke0ng	
  decisions.	
  
	
  	
  
I	
  created	
  The	
  Hispanic	
  Way	
  to	
  advise	
  clients	
  who	
  want	
  to	
  access	
  the	
  	
  
Hispanic	
  market.	
  As	
  an	
  experienced	
  musician	
  and	
  a	
  member	
  of	
  the	
  	
  
Hispanic	
  community,	
  I	
  can	
  provide	
  you	
  with	
  real-­‐life	
  insights	
  	
  
and	
  exper0se	
  into	
  La0no	
  culture	
  	
  
and	
  the	
  wants,	
  needs	
  and	
  demands	
  	
  
of	
  Hispanic	
  consumers.	
  
	
  
Contact:	
  
The	
  Hispanic	
  Way	
  
(512)	
  900-­‐6087	
  
mario@thehispanicwayconsul0ng.com	
  
linkedin.com/in/mariokauachi	
  

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Hispanic Consumers in MI Retail

  • 1. HISPANIC  CONSUMERS     IN  MI  RETAIL   Mario  Kauachi   Develop  Cultural  Competency     and  Gain  Market  Share    
  • 2. Presenta0on  Objec0ves   Mario  Kauachi     Ø  Define  key  characteris0cs  of  culturally-­‐competent   marke0ng  and  adver0sing  strategies   Ø  Describe  steps  to  effec0vely  address  cultural   differences  and  overcome  barriers   Ø  Recognize  the  posi0ve  impact  that  beCer  Hispanic   outreach  could  have  for  your  business  
  • 3. The  Hispanic  Popula0on   •  La0nos  are  the  2nd  largest  ethnic  group  in  the  U.S.  (55M)1     –  2/3  of  the  popula0on  is  U.S.  born,  1/3  are  foreign  born1   –  2/3  are  of  Mexican  origin,  1/3  from  20  other  countries1   –  Average  age  is  27  (vs.  age  42  for  non-­‐Hispanic  Whites)2   –  Almost  30%  of  all  U.S.  Millennials  (ages  18-­‐29)  are  La0no2     •  The  La0no  popula0on  will  grow  faster  than  the  total  U.S.   popula0on,  and  is  expected  to  reach  112M  by  20501   –  One  of  every  four  births  is  a  Hispanic  baby;  by  2050,  it  will  be  more  than  one  in  three3     •  The  buying  power  of  La0nos  is  es0mated  to  be  $1.7  trillion     by  20174       1.  U.S.  Census  Bureau  Popula0on  Projec0ons  2014,  2.  Pew  Research  Center,  3.  Federal  Interagency  Forum  on  Child  and  Family  Sta0s0cs  2012,  4.  Selig  Center  for  Economic  Growth   Mario  Kauachi  
  • 4. Geodemography   Mario  Kauachi   States  with  >30%     Hispanic  Residents:   •  New  Mexico  47%   •  California  38%   •  Texas  38%   •  Arizona  30%     Over  50%  of  the  total  U.S.   Hispanic  popula0on  resides     in  3  states:   •  California  (14M)   •  Texas  (10M)   •  Florida  (4M)   Other  states  with  over  1M   Hispanic  residents  include   Arizona,  Colorado,  Illinois,     New  Jersey  and  New  York     Source:  U.S.  Census  Bureau  2010  
  • 5. Mario  Kauachi   “Musica”  in  Hispanic  Culture   •  Regional  Mexican  is  #1  genre  among  Hispanics1   –  Instruments  Include:   •  Norteño:  Bajo  Sexto,  Drums,  Accordion,  Bass   •  Banda:  Percussion,  Woodwind,  Brasswind     •  Spanish  Contemporary  is  #22   –  Instruments  Include:     •  La0n  Pop:  Electric  and  Acous0c  Guitars,  Keyboards,  Bass,  Drums,  Percussion,  etc.   •  Bachata  (Dominican  Republic):  Acous0c  Guitars,  Tres,  La0n  Percussion,     Keyboards,  Bass   •  Reggaeton  (Puerto  Rico):  DJ  Gear,  Keyboards,  Samplers,  Electric  Guitars,  Bass     •  Other  important  Hispanic  music  genres  are:  Afro-­‐Cuban/Salsa   (Cuba),  Merengue  (Dominican  Republic)  and  Cumbia  (Colombia)    1.  Nielsen's  Audio  Today  Report:  State  of  the  Media:  Audio  Today,  A  Focus  on  Black  &  Hispanic  Audiences.  2.  Nielsen  Second-­‐Quarter  Audio  Today  Report  
  • 6. Mario  Kauachi       “Become  part  of   the  family”   -­‐Esteban  Mon0lla   American  Counseling  Associa0on  Member  and  Director  of  Clinical  Pastoral   Educa0on  at  Driscoll  Children’s  Hospital  in  Corpus  Chris0,  Texas   Hispanic  consumers  will  demand   specifics:  “Do  you  like  the  music  I   like?”,  “Do  you  speak  my  preferred   language?”    
  • 7. The  Hispanic  MI  Retail  Experience   Is  this  your  store  today?   •  Adver0sements  in  English   through  mass  market  channels   •  Minimal/no  adver0sing   through  popular  Hispanic   channels   •  Store  may  lack  proper   inventory   •  Staff  may  not  engage     La0nos  op0mally   •  Customer  may  exit  with  a   small  cart  or  no  purchase     Opportunity   •  Communica0ons  that  connect   with  Hispanics   •  Adver0sing  through  popular   Hispanic  media     •  Offer/stock  desired   instruments  and  accessories   •  Train  and  staff  for  proper   cultural  engagement   •  Make  the  sale,  sell  more,     gain  a  new  customer     Mario  Kauachi  
  • 8. How  to  Reach     the  Hispanic  Consumer   •  Local  Marke0ng  and  Adver0sing  Strategies:   –  Territory  Evalua0on   –  Demographics  (Cultural  assessment  —who  is  around  you?)   –  Adver0sing   •  Direct:  Radio,  TV,  Newspaper,  Magazines,  Flyers,  etc.   –  Radio:  94%  of  La0nos  listen  to  radio  (vs.  90%  of  the  general  public)  1   –  TV:  2  major  US  networks  account  for  90%  of  Spanish  programming2   –  Newspaper:  On  average,  La0nos  spend  about  50  min/day  reading  newspaper3     •  Online:  Website,  Online  Promo0on,  Emailing,  Couponing  (Tracking),  etc.   –  La0nos  are  50%  more  likely  to  access  the  internet  through  their  mobile  devices1   •  Insights:  (a)  A  Spanish  version  of  your  English  commercial  will  raise  ad  recall  by  as  much   as  30%,  (b)  Spanish  ads  are  preferred  by  over  50%,  (c)  Commercials  by  Spanish-­‐speaking   talent  will  resonate  30%  beCer  with  La0nos   –  Cultural  Competency  programs  –  Start  with  “Bienvenidos”  on  your  store-­‐front   –  Staff/Call  Center  Training  in  efficient  cultural  engagement     •  Don’t  just  communicate…  Connect     1.  Nielsen  Company,  “A  Look  Across  The  Media:  The  Cross-­‐Plaworm  Report  2013,  2.  Sam  Thielman  “Hispanic  Networks  Bring  In  Auto  Dollars  In  A  Weak  Year  For  Broadcast  Telemundo  And   Univision  Write  Increase”  Adweek  2013,  3.  Hispanic  Fact  Pack  2013,  Adver0sing  Age’s  Annual  Guide  To  Hispanic  Marke0ng  And  Media  2013   Mario  Kauachi  
  • 9. Mario  Eduardo  Kauachi   Axer  being  raised  and  educated  in  Mexico,  I  worked  in  the  corporate  world  before  dedica0ng  my   career  to  suppor0ng  clients  with  Hispanic  marke0ng.  I  have  a  degree  in  law,  music  business  educa0on,   experience  in  business  management,  and  an  extensive  background  in  music,  marke0ng  and  product   adver0sing.  I  am  also  an  professionally  educated  and  experienced  drummer  and  hand  percussionist   who.  I  have  a  strong  and  varied  skillset  that  allows  me  to  guide  my  clients  towards  strong  business   strategies  and  marke0ng  decisions.       I  created  The  Hispanic  Way  to  advise  clients  who  want  to  access  the     Hispanic  market.  As  an  experienced  musician  and  a  member  of  the     Hispanic  community,  I  can  provide  you  with  real-­‐life  insights     and  exper0se  into  La0no  culture     and  the  wants,  needs  and  demands     of  Hispanic  consumers.     Contact:   The  Hispanic  Way   (512)  900-­‐6087   mario@thehispanicwayconsul0ng.com   linkedin.com/in/mariokauachi