This two-part report by IHispanic’s Nacho Hernandez and MarketingProfs is a must-read for anyone who’s serious about marketing to Latino consumers. Here’s a taste, then read on at MarketingProfs.

Marketing to the Hispanic Market (Part 1 of 2)
by Ignacio “Nacho” Hernandez Jr.
April 4, 2006

The US Hispanic population, with its growing purchasing power and impressive growth in media usage, has companies scrambling for ideas and ways to effectively target this barely tapped market. According to TNS Media Intelligence, marketers invested 10.5% more in America’s largest minority in 2005 than they did in 2004. In the US market overall, marketers invested a mere 3.4 percent more from 2004 to 2005.

In 2002, the US Hispanic population officially became the largest minority in the United States, and it will continue in this position through at least 2050. Synovate reported in 2004 that over 43.5 million US Hispanics make up almost 15 percent of the US population—a percentage growing 5 times faster than the general population, which is more than a 70% increase in the last 10 years. By the year 2020, which is only 14 short years away, there will be 1 out of 5 Americans to be of Hispanic origin. This source also tells us that net natural growth of the Hispanic population (births minus deaths) surpassed immigration as the main source of population growth in 2004. This means that each year over 1 million children will be born to Hispanic mothers. Have you ever wondered where they will go to school and grow up learning? Better yet, how companies are marketing to them?

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More Latino marketing? I thought they were doing enough as it is (I mean they did sign Danayara Torres to market their clothes), but apparently the big Dubya wants to do even MÁS. From BrandWeek:

BENTONVILLE, ARK.– As Wal-Mart seeks to broaden its appeal to consumers, one important segment it is hoping to reach is the Hispanic community, the company said Wednesday.

To that end, the retail behemoth is planning upcoming initiatives to reach Hispanics, building marketing programs around major events like Cinco de Mayo and World Cup Soccer.

“We are doing a lot of marketing research and looking at the data very closely,” said Wal-Mart CEO H. Lee Scott at the company’s second annual media conference held this week in Bentonville, Ark.

“We are learning a great deal about Hispanic trends through our stores in Mexico and Central America,” Scott added. “We are also spending about $45 million per year in Spanish-language advertising.

A recent photography project that I wrote about on VivirLatino made me truly aware of the connection between Latino consumers and Wal-Mart — particularly the immigrant community in border towns. The project asked Latino migrant workers on the border to document their everyday lives on film using disposable cameras. How did they guarantee that the workers would follow through? They gave them with the incentive of a Wal-Mart gift card:

We wanted to give migrants an incentive to participate, but the real trick was finding a way for them to remain anonymous. We devised a scheme using gift cards from the largest retailer along the border - Walmart.

Interesting, no?

And according to an article in yesterday’s MarketWatch, Wal-Mart will be tweaking its product offerings to suit a shift towards targeting “ethnic customers”:

When we talk about a ’store of the community,’ it is particularly important when we look at the ethnic customer segments that we have,” said Pat Curran, executive vice president of store operations.

She said that of Wal-Mart’s 3,900 U.S. stores, about 1,500 serve “significant” African-American populations and 1,300 are in heavy Latino neighborhoods. Another 300 have a large concentration of Asian-Pacific-American shoppers, she said.

Those stores will carry items such as ethnic foods and health and beauty aids directed toward the specific populations. Stores in Latino neighborhoods, for example, sell eight varieties of chorizo and a number of tortilla brands, including those produced in local neighborhoods, while also carrying a variety of baby and family products.

Locally produced tortillas? That’s something that just might lure me into a Wal-Mart.

Via Brandweek and MarketWatch

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