Gustavo Grüber (630) A Presentation for: Chicago, May 13, 2005 Hispanic Marketing Beyond Demographics Direct

Gustavo Grüber  21 Yrs. in Hispanic Marketing  Pioneer of Several D. M. Formats (Bilingual/Gender)  Strong Background in Direct Mail  Database Marketing / One to One / CRM  DMA Directo / CADM / AHAA Alaniz Hispanic Marketing Experience Gustavo Grüber

Banta Overview More than 30 Operation Sites in US, Europe and Pacific Rim. ( Including 10 Fulfillment Centers, 3 Call Centers, 4 Technology Centers and 4 Creative Centers) More than 8,000 employees 103 yrs. old global company $1.5 Billion in Revenue. Publicly Traded – BN One of the largest commercial printers in North America serving publishers and direct marketers More than 37 manufacturing facilities worldwide..

Gustavo Grüber Banta Overview Most Admired Company Fortune Magazine 2005

Gustavo Grüber Banta Relationships

Gustavo Grüber Goal To share practical knowledge that can help you strengthen your marketing curriculums as they relate to Hispanic Direct Marketing.

Gustavo Grüber Who Said… “Spanish…Our future connections with Spain and Spanish America, will render that language a valuable acquisition…” Thomas Jefferson, 1787

Gustavo Grüber Key Definitions Hispanic vs. Latino Hispanic & the Census Assimilation Acculturation Reverse Assimilation ? ? ? ? ?

Gustavo Grüber Hispanic All US residents (legal and illegal) whose background can be traced to the Spanish speaking countries of Latin America and Europe. It includes all races, cultures and nationalities.

Gustavo Grüber Latino A Latino is a person of Latin American heritage. Often the term Hispanic is used synonymously with the word Latino. A Brazilian would be Latin American, but not specifically Hispanic (unless he or she is of Spanish origin as well).

U.S. Census Definition of Hispanic

Spaniard Andalusian Asturian Castillian Catalonian Balearic Islander Gallego Valencian Canarian Spanish Basque Mexican Mexican American Mexicano Chicano La Raza Mexican American Indian Central American Costa Rican Guatemalan Honduran Nicaraguan Panamanian Salvadoran Central American Central American Indian Canal Zone South American Argentinean Bolivian Chilean Colombian Ecuadorian Paraguayan Peruvian Uruguayan Venezuelan South American Indian Criollo Latin American Latin Latino Puerto Rican Cuban Dominican Other Spanish/Hispanic Hispanic Spanish Californio Tejano Nuevo Mexicano Spanish American Spanish American Indian Meso American Indian Mestizo Caribbean Hispanic

Gustavo Grüber Hispanic or Latino? It doesn’t Matter as long as you are referring about US residents whose background can be traced to the Spanish speaking countries. Some regions prefer Latino – i.e. west coast.

Gustavo Grüber Assimilation The cultural absorption of a minority group into the main cultural body. (The Melting Pot)

Gustavo Grüber Acculturation Cultural modification of an individual by adapting or borrowing traits from another culture. (Adaptation)

Gustavo Grüber Reverse Assimilation A process that occurs when assimilated Hispanics engage in activities designed to rediscover their cultural roots.

Why is the US Hispanic Market so Important? It provides an opportunity to: –Increase sales /Increase profits –Expand into new markets / Diversify –Achieve economies of scale –Business survival

Gustavo Grüber A Country Within A Country Country Name Population 2004 Population 2010 Population 2025 Mexico Colombia Spain Argentina Source : Synovate 2003 Latin American Report

Gustavo Grüber A Country Within A Country Country Name Population 2004 Population 2010 Population 2025 Mexico United States Colombia Spain Argentina Source : Synovate 2003 Latin American Report

Gustavo Grüber Hispanic Market Growth Today Tomorrow Million People Source: Synovate 2004 US Hispanic Market Report

Gustavo Grüber Minority Population (% of Total) DECREASE SAME INCREASE Today U.S. Total 296 Million In 2020 U.S. Total 372 Million Source Synovate 2004 US Hispanic Market Report

Gustavo Grüber Hispanic Purchasing Power $653 Billion in 2003 $1,014 Billion in 2008 One Trillion $$ Source: Selig Center for Economic Growth Advertisers spent $3.09 billion in 2004 in U.S. Hispanics, an 11% increase from Advertising will increase to more than $3.6 billion by Source: HispanTelligence

Gustavo Grüber 55% receive six (+) pieces of direct mail a week 30% receive between six and ten pieces 2% did not receive any advertising mail 4 in 10 glance at the direct mail they receive 25% review every page or section 4% usually discards without looking at it DMA Hispanic Market Report (2005)

Gustavo Grüber As a Result, Marketers are Saying… Wake up and smell the… __________________ CAFÉ CON LECHE

Gustavo Grüber Hispanic Budget Allocation PERCENT OF TOTAL T.V. AND PRINT ALLOCATED TO HISPANIC MEDIA (Retailers and Direct Marketing vs. Manufacturers) Source: Association of Hispanic Advertising Agencies – AHAA 2004

Gustavo Grüber Hispanic Market Challenges Despite the huge opportunity, there are many challenges… Especially in Direct Marketing

Gustavo Grüber Main Challenge Demand for Hispanic DM professionals is growing faster than the supply of talent. There are not enough people trained in Hispanic direct marketing.

Gustavo Grüber Formulating a successful plan for the U.S. Hispanic market is almost like developing an international DM plan. Assess Your Potential. Is it relevant? Conduct Marketing Research Select Your Countries Develop DM Plan Implementation of Plan ? ? ? ? ? Only Better…

Gustavo Grüber Assess Your Potential Adequate external resources to assist in penetrating the market –Expert Advice and Counseling. Effective DM is a lot more involved than translating an offer. You need expert advice.

Gustavo Grüber Conduct Marketing Research Direct Marketers must understand: –Cultural / Country Differences –Buying Behavior / Payment Methods

Gustavo Grüber Financial Services Use Source: Synovate 2004 US Hispanic Market Report

Gustavo Grüber Select Your Countries

Gustavo Grüber Develop A Realistic DM Plan Budgets Objectives Metrics Resources – People, Time, Money & Systems Corporate Commitment Hispanic Readiness Assessment ?

Gustavo Grüber Hispanic Readiness Assessment Too Much $ Upfront Billing 100% Spanish or bilingual Create billing and dunnings easy to read and understand Longer service calls answer phone in Spanish Longer payment cycle but they pay COD is prominent - be sure the fulfillment house can do it Outsource if necessary

Gustavo Grüber Implementation Lists Spanish DR Ethnic Surname Next Generation Copy Creative Production English Bi-lingual Spanish ?

Gustavo Grüber Elements of Promotion (Direct Marketing)

Gustavo Grüber Return

Gustavo Grüber We Need You… The company recognizes the importance of the U.S. Hispanic market. There is some internal discussion about this opportunity. However, they are not doing anything right now. The company tried to target the Hispanic market but failed to achieve expected results. The company is doing the right things to effectively penetrate the Hispanic market and has firm commitment to overcome ongoing challenges.

Gustavo Grüber Questions / Preguntas ¿?

Gustavo Grüber ¡Muchas Gracias!

Gustavo Grüber (630) A Presentation for: Chicago, May 13, 2005 Hispanic Marketing Beyond Demographics Direct