Summer - InsideOutdoor Magazine

More documents

Recommendations

Info

Minority Report LUCRATIVE HISPANIC MARKET STILL UNTAPPED by Tony Jones The minority population in the United States just topped 100 million. Think about that for a moment. Minorities comprise roughly one-third of the nation’s population today. One in three. Is it any wonder marketers have been falling all over themselves trying to woo minorities and sway them into buying or trying their particular goods or services? The buying power of 100 million (100.7 million if you want to get technical) people is enormous, and the influence minorities have on marketing plans and promotions will only increase as their percentage of the total U.S. population continues to rise. Consider that the U.S. minority population grew at a rate of 2.4 percent between July 2005 and July 2006. During that same period, the non-Hispanic white population grew just 0.3 percent. “To put this into perspective, there are more minorities in this country today than there were people in the United States in 1910 (92.2 million),” says Louis Kincannon, Census Bureau director. “In fact, the minority population in the U.S. is larger than the total population of all but 11 countries.” It’s a staggering number with enormous potential, and yet minority participation in outdoor recreation and minority representation inside outdoor retail stores remains extremely low. GOLDEN OPPORTUNITY Of all the minority segments, the Hispanic market is perhaps the most compelling. It is the largest and fastest growing, reaching 44.3 million people last year — 14.8 percent of the total U.S. population. Moreover, the economic potential of the Hispanic community continues to intrigue and confound marketers the most. The buying power of this market is expected to exceed $1 trillion by next year, according to Nielsen Media Research, a 55 percent increase from 2003. The growth is such that in May the Nielsen Co. announced it was launching a national Homescan Hispanic Consumer Panel, with a research sample of 11,000 households. Nielsen also said it 34 | InsideOutdoor | Summer 2007
will expand its existing Homescan Hispanic Panel in Los Angeles from 1,500 to 2,500 households to provide Fast-Moving Consumer Goods (FMCG) manufacturers and retailers with more detailed views of the needs, preferences and shopping habits of Hispanic consumers. “Now marketers will be able to measure detailed purchase patterns within the Hispanic population and translate those insights into brand-specific plans,” says Tim Kregor, president, Nielsen Homescan & Spectra, North America. “This $1 trillion market is an undeniable opportunity that demands unique strategies for all leading brands.” So while Hispanics accounted for almost half (1.4 million) of the national minority population growth of 2.9 million between July 2005 and July 2006, “the economic influence of Hispanics is growing even faster than their population,” writes Ryan T. Callahan, director, account services, for Cohorts, a marketing information company. This is particularly significant for retailers and other companies that conduct business in areas with a high concentration of Hispanic consumers. According to U.S. Census data released in May, there are now 15 states with more than 500,000 Hispanics and seven with at least 1.3 million. California, not surprisingly, leads the way with more than 13 million Hispanics, followed by Texas (8.4 million), Florida (3.6 million) and New York (3.1 million). New Mexico has the highest proportion of Hispanics to its total population at 44 percent, followed by California and Texas, both at 36 percent. By 2020, the U.S. Census Bureau expects the Hispanic population to reach 60 million, representing about 18 percent of the total U.S. population. Yet, for all of its intrigue as a market, the Hispanic population remains largely undermined by mainstream manufacturers and brand marketers. One simple explanation is it is unlike any other major marketing segment in America. For starters, it is the only minority with significant population whose majority of households do not speak English as the primary language and in which bilingualism is the norm. According to Synovate, 56 percent of all Hispanic households speak predominantly Spanish, while 26 percent are equally Spanish and English bilingual. Just 18 percent are English only or more than Spanish. Similarly, Simmons Market Research says 82 percent of Hispanics use at least some Spanish at home, and 81 percent do the same at work or school. CULTURAL DIVERSITY But winning business from Hispanic consumers is more complicated than simply marketing to them in Spanish. There are cultural distinctions and diversities that make the Hispanic market complex and difficult to define or target with singular campaigns or sweeping assumptions. An understanding of household dynamics and cultural preferences is necessary to craft effective messaging and methods of communication. In terms of social structure, Hispanic households tend to be larger and younger than non-Hispanic households and are more likely to have both multi-generational and non-related family members living together, says Callahan. In addition, 57 percent have children living at home, compared to 35 percent of the general U.S. population, according to Cohorts. Naturally, Hispanics are focused on family, home life and staying socially connected with family members and relatives, notes Callahan. In addition, he says, they tend to hold traditional values. However, beyond these types of basic characteristics, marketers need to also understand the Hispanic community’s “widely varying income levels, age groups and degrees of acculturation,” notes Callahan. “While it might be tempting to assume that cultural heritage is a key determinant of Hispanic diversity, the vast majority of consumer behaviors are determined by current needs and wants — not by historical cultural ties,” he continues. “One of the biggest mistakes marketers make in trying to reach Hispanic consumers is to simply translate existing marketing messages into Spanish.” The key, he says, lies in the “household-specific economic and acculturation circumstances that drive consumer behavior.” To make things more complicated, Callahan says an extensive study done three years ago identified 19 distinct household types within the Hispanic marketplace. OUTDOOR INTEREST The outdoor industry is certainly among those trying to understand these nuances. Last year, the UCLA Anderson School of Management presented a white paper to the Outdoor Industry Foundation that examines the Hispanic community and outdoor recreation. Much of the authors’ research echoes the sentiments put forth by Callahan and Cohorts. “Generally speaking, it is a common mistake for marketers to treat Hispanics as a homogenous population,” the authors write. “Not all Hispanics are the same.” Nevertheless, “while it is apparent that cultural boundaries have weakened over recent years, there remain subtle differences in the leisure time preferences and availability of Hispanics, which help to distinguish them from other ethnicities,” the UCLA/OIF paper says. “Understanding these differences is a critical factor when attempting to market outdoor activities to this segment.” According to the UCLA/OIF research, among the biggest hurdles marketers face in getting Hispanics to participate in outdoor recreation is available time and effective communication strategies. Only 34 percent of Hispanics are spending greater than four hours per week on physical activities, according to the OIF report, while the majority (61 percent) spend between one and four hours being physically active. And although core outdoor recreational activities were not listed among Hispanics’ favorite physical activities (running/jogging topped the list at 48 percent), 89 percent of those surveyed by the UCLA team indicated they find outdoor activities fun. Summer 2007 | InsideOutdoor | 35
Page 1 and 2: www.insideoutdoor.com Summer 2007 R
Page 3 and 4: During the “Golden Age” of Nort
Page 6: Editor’s Letter Inside the Big Bo
Page 9 and 10: PLAN NOW TO ATTEND THE LARGEST TECH
Page 11 and 12: Retailers Report ROCKY MOUNTAINS Bo
Page 14 and 15: Gas OR Exhibitors Targeted by Adver
Page 16 and 17: Gas The Zip Line BIG PICTURE Consum
Page 18 and 19: Gas An estimated 60,000 people turn
Page 20 and 21: Gas Data Points NUMBERS WORTH NOTIN
Page 22 and 23: Word Up IT’S TIME TO CONSIDER HOW
Page 24 and 25: Wireless in the U.S., December 2006
Page 26 and 27: average, and he knew SMS was someth
Page 28 and 29: Giving Credit 28 | InsideOutdoor |
Page 30 and 31: than the promotional period to pay
Page 32 and 33: about five minutes. As soon as the
Page 36 and 37: The primary reason for the lack of
Page 38 and 39: Gear SPRING/SUMMER 2008 Product Sho
Page 40 and 41: Gear Buck Knives Buck Knives has ad
Page 42 and 43: Gear Coleman Coleman’s new Expone
Page 44 and 45: Gear Ecowood Based on the original
Page 46 and 47: Gear automatic leap year adjustment
Page 48 and 49: Gear printing and low-impact garmen
Page 50 and 51: Kayland Kayland has expanded its hi
Page 52 and 53: Gear Lowa Boots Lowa introduces its
Page 54: • Sized for saddlebags • Packs
Page 57 and 58: www.zooom.at TOP OF YOUR WORLD Juli
Page 59 and 60: 2008 SHOT SHOW • FEBRUARY 2-5, 20
Page 62: Gear Suunto Suunto has a new ABC (a
Page 65 and 66: Our full-service Marketing and PR f
Page 67 and 68: Areas of Concentration: CORPORATE L
Page 69 and 70: Now You See It... Now You Don’t.
Page 71 and 72: Back Office Earthster also enables
Page 73 and 74: Back Office pro-competitive objecti
Page 76 and 77: Gorp on) as well as traditionally m
Page 78: Gorp out of step with society and,

Summer - InsideOutdoor Magazine

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?