© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT 20/20 for Hispanic Marketing 2020

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Northern California LEAD Conference ‘07 by NSHMBA August 18, San José, CA

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Presentation Flow latinos - the growth opportunity today best practices In-culture ! GenAge © segments; managing growth and acculturation

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT vs 2006*

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Puerto Rico = million new consumers - 65 billion more in income! - half a million new HHs! projected hispanic growth every 12 months

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT in million latinos + puerto rico = 48+million

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT total USA from 7 trillion to 9.9 trillion… African Americans $ 589 billion to $ 853 US Latinos $ 491 billion to $ 926 Asians $ 255 billion to $ 455 American Indians $ 36 billion to $ 57 Source: Selig Center for Economic Growth, 2002 *Buying Power or Disposable Personal Income : Total Personal Income after taxes exponential disposable income growth income growth estimates 2000 to 2007

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT exponential disposable income growth Projected Evolution of Hispanic Buying Power through 2010

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT income by country of origin 2004

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT median age by ethnic group 2005

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Household income # of Hispanic households. (in ‘000s) % of Hispanic households. % growth ,000+1,0988.8%97.5 % 75,000-99,9991, ,000-74,9992, ,000-49,9992, ,000-34,9991, ,000-24,9992, Under $15,0002, [i] [i] Source: U.S. Census Bureau income distribution, hispanic households

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT median age by ethnic group 2005

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT latinos by country of origin

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT geographic distribution

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT StateHispanic Share of Total Buying Power (%) New Mexico 29.5% Texas 19.2 California 17.2 Arizona 15.2 Nevada 13.2 Florida 14.3 Colorado 10.8 New York 9.5 New Jersey 8.6 Illinois 8.1 [i] [i] Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, July 2005 ten states with most concentrated Hispanic buying power 2005

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT challenges exist!

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT “The Nation’s Report Card: Reading 2005” and “The Nation’s Report Card: Mathematics 2005”, National Center for Education Statistics percent of students below basic national achievement levels in math and reading

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT presentation flow best practices In-culture ! GenAge © segments Managing growth and acculturation

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT culture is the “programming” that sets up our values, beliefs, expectations, etc. and the chain reaction begins... Source: Adapted from Fons Trompenaars culture is…

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Culture creates beliefs. Beliefs create attitudes. Attitudes create feelings. Feelings determine actions. Actions create Results Culture is our programming

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT is a marketing approach that … “capitalizes and leverages cultural differences through-out business planning, value proposition - marketing strategy development and execution. By doing so, we touch and engage consumer’s emotions building “HeartShares for long-term MarketShare ™ ” Source:, I. Valdes, 1995, 2000, 2002, 2007 “in-culture” marketing works!

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Fourth generation Third generation Second generation Foreign-born a generational view

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Source: Valdes, I., Marketing to American Latinos, 2000 US born first, second, third generation brand, category “mature” marketing savvy foreign born recent arrivals vs Long-term brand heritage/lack off advertising, information “hungry” generational diversity

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT population pyramids

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Less than 9 th Grade 9 th to 12 th Grade High School Graduate Some College College Graduate Total Hispanic (in ‘000s) 5,446 (24.0%) 3,742 (16.5%) 6,121 (27.0%) 4,577 (20.2%) 2,785 (12.3%) U.S.-born Hispanic / 2 nd Generation, 3 rd Generation, and Greater (in ‘000s) 932 (9.8%) 1,432 (15.0%) 2,919 (30.6%) 2,748 (28.8%) 1,504 (15.8%) Foreign-born / First- generation Hispanic (in ‘000s) 4,513 (34.4%) 2,311 (17.6%)3,202 (24.4%) 1,829 (13.9%) 1,281 (9.8%) Total U.S. (in ‘000s) 11,790 (6.2%)17,990 (9.5%) 55,907 (29.6%) 51,865 (27.5%) 51,378 (27.2%) Note: “College graduate” refers to a person who has attained at least a bachelor’s degree. Source: Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey. [i] [i] Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey. hispanic educational attainment by U.S.-born and foreign-born generations age 25 and over

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT present day Hispanic market is composed of consumers in different stages of acculturation to American mainstream culture levels and rates of acculturation vary between sub-ethnic groups, (Cuban, Mexican, etc.) generations, regions and even within families! latinos and “acculturation ”

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Machismo (Man’s role) Leads Provides Marianismo (Woman’s role) Keeps family together Chicoismo (Children’s role) Family legacy Familismo Familismo Family Unity is Imperative (Family Centered) latino cultural imperatives

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT   Babies: birth, christening  Children: birthday, First Communion  Family: Mother’s Day, Father’s Day  Romance: Anniversaries (20, 25, 50…)  Religion: Catholic Holidays marketing in-culture

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT an approach to deliver emotionally relevant messages that build HeartShares ™ in addition to the right communications strategy, visuals, tonality, etc. - to touch the “whole person” - not just the mind or pocket! Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002 in-culture and in-language = $$$$!

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT “A message must convey the emotional significance of the sentence, in addition to the phonetic message, in order to convey the “full” message.” language relevance

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT English? Spanish? Bilingual? Spanglish? language value?

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT variations in language usage today

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT “Marketing In-culture has a measurable effect on the choices consumers make, the volume they purchase and where they shop!” Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002 measurable results

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT $ Index Mexican Tortillas Brand A Brand B Brand C CTL Brand NON-HISPANIC TOTAL LANGUAGE SEGMENTS MARKET HISPANIC SPANISH ENGLISH HOUSEHOLDS HOUSEHOLDS ONLY/PREFERRED BILINGUAL ONLY/ PREFERRED. ACNielsen Homescan Delivers Consumer Insights Hispanic Shopping Behavior Mexican Tortillas: What Do Hispanics Buy? March-Aug Hispanic Consumer Panel - LA Market

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Source: AC Nielsen 52 weeks ending 1/26/02 “store x” nectar category growth

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT In-culture Brand Positioning and Value Proposition Merchandising Distribution Retailing IT Database Affinity/ Cause-Related Direct Response Promotions Event Mktg Public Relations Grassroots/ Guerrilla Product Innovation Customer Service / CRM Loyalty/Winback Online Hiring - Training In-culture Integrated Marketing Model Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT presentation flow GenAge © segments managing growth and acculturation

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Introducing …. Hispanic Customers for Life; a Fresh Acculturation Review by M. Isabel Valdés Available Q

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT “the” generational changes

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT latino age by generation

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Latinos by Age and Place of Birth 2006 in “Latino Customers for Life; A Fresh Acculturation Approach”

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Hispanic GenAge® Segments – 2006 in ”Customers for Life; A Fresh Acculturation Approach”

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT GenAge™ Segments 2006

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT GenAge® Segmentation by Nine Age -Sub-Segments and Generation 2006 GenAge™ Segments 2006

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT GenAge © segments growth

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT Los Bebès - Ages 0-5 GenAge ® Segments 2006

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT latinos/as - Ages GenAge ® Segments 2006

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT In sum …. Latinos 2020; great business opportunity challenges need to be addressed ! In-culture marketing works! the generational crossover is here tools to manage growth, and acculturation exist! e.g.: GenAGe™

© M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT by M. Isabel Valdés, IVC Paramount Market Publishers. Ithaca, New York