Marketing to the Hispanic Language Split

The current and anticipated growth in the Hispanic-American population and their estimated $580 billion in purchasing power have triggered a marketing boom. Major manufacturers are reaching out to this emerging hot market with high-impact campaigns featuring 'cross-over' celebrities like bombshell Salma Hayek (Lincoln Navigator), music sensation Shakira (Pepsi), and Latina cartoon heroine Dora the Explorer (in the Crest and Teddy Grahams sponsored "Dora The Explorer Live" tour). Advertisements targeted at Hispanics are crossing traditional language barriers, too, most notably in the case of the Spanish-language Crest advertisement during this year's Grammy Awards. Thus, when marketing to Hispanic-Americans, is language an issue? Based on research conducted by Ipsos-Insight and a major consumer goods manufacturer, the answer is-emphatically-yes!

Hispanic Demographics

An examination of the most recent census projections illustrates that the proportion of Hispanics within the U.S. is increasing; recent census information reveals that Hispanic individuals currently make up 13% of the U.S. population, and are expected to comprise 17% of the population by the year 2020. Currently, 67% of U.S. Hispanic households are Spanish speaking and 33% are English speaking. Interestingly, the proportion of Spanish-speaking Hispanics is increasing at a faster rate than English-speaking Hispanics, and is expected to grow to a 70/30% split. As Spanish-speaking Hispanics will have increasing influence, the Ipsos-Insight study of this group investigated the attitudinal and behavioral differences between English-speaking and Spanish-speaking Hispanics and its implications on future strategies to target the Hispanic market.

Methodology

In order to improve the understanding of the Hispanic market, and more specifically, the growing Spanish-speaking demographic, the Ipsos-Insight study used the correct proportion of Spanish-speaking and English-Speaking Hispanics. The research conducted included both attitudinal and behavioral questions and measured reactions to a new concept. The research involved two separate comparisons. The first phase compared the responses of Hispanics as part of a representative sample study. The second compared the response of Hispanics as part of a Hispanic-only study.

Representative Sample Findings

The first phase of the study measured purchasing and usage habits and brand attitudes of a sample of 3,425 U.S. households (of which 13% were African-American, 3% Asian, 9% Hispanic, 74% Caucasian, and 1% other). The study compared key measures from the U.S. sample with 1) 100% English-speaking Hispanics and 2) 67% Spanish-speaking and 33% English-speaking Hispanics. Given that Hispanics make up only 9% of the sample, the expectation was that there would be little effect from including Spanish-speaking Hispanics. Accordingly, the results revealed no significant differences in responses to behavioral questions (such as purchase frequency) or attitudinal questions.

For example, when asked about purchase frequency, 27% of respondents from the group made up of only English-speaking Hispanics indicated they purchased "category A" about once every two weeks. Nearly the same percentage (27.5%) of the proportionate Hispanic sample (33% English-speaking, 67% Spanish-speaking Hispanics) indicated they purchased "category A" about once every two weeks. The conclusion that might be drawn from a representative sample study is that there is little difference in behavior and attitude between English-speaking and Spanish-speaking Hispanic-Americans.

Research with a Hispanic Focus

The second phase of the study involved a Hispanic-only sample. The study measured the difference between a group comprised of only English-speaking Hispanics with a group correctly proportionate to the current language split amongst Hispanic-Americans (33% English-speaking and 67% Spanish-speaking). When comparing the 100% English-speaking sample to the Spanish-dominant sample, there were significant differences in stated behavior and attitudes.

For example, when the Hispanic-only sample was asked about purchase frequency, 40% of the proportional group indicated they purchased 'category A' about once every two to three weeks. This compares to 34% of the group comprised entirely of English-speaking Hispanics, (and the first phase of the study, which showed only 27.5% of the Spanish/English speaking group indicated the same purchase frequency). In testing the Hispanic-only sample, the Spanish/English speaking sample scored significantly higher on purchase frequency and brand loyalty and had greater agreement on many category attitudes. For the specific concept tested, there were also different levels of interest to purchase and liking. Clearly, to correctly identify and understand Hispanic consumers requires studying a sample divided proportionately across the demographic language split and with the appropriate ethnic focus.

The company that wants to successfully market to the Hispanics should not consider Hispanics a homogeneous group. As the results of Ipsos-Insight's research show, different consumer reactions are likely to exist between English-speaking versus Spanish-speaking sub-segments. The findings raise significant issues for both strategic decision-making concerning the Hispanic market and the research that accompanies it. Implications of this may include the following:

• A single marketing message may not be sufficient
• Research to understand these category differences will be important for marketers as the population grows
• Products within specific categories can be developed for ethnic specific populations

As Spanish-speaking Hispanics become an increasingly influential consumer group, it will be critical to understand ethnic population trends and consumer understanding not only about that group, but within that group. These differences will affect how market research will be conducted and how products and marketing strategies will be developed. Research methodologies among Hispanics must continue to be developed to improve the consumer understanding needs marketers have about this diverse population.