Through a special arrangement, what follows is a summary of a current article from Private Label Buyer, presented here for discussion.
Reaching under-30 Hispanic-Americans shares one caveat with selling private label goods to Hispanics over 30 -- lump them all into one demographic melting pot at your own risk. The good news for food retailers targeting their private label offerings to that young Hispanic market is that, at least when it comes to second generation, U.S.-born Hispanics, there's less brand loyalty and more openness to try new alternatives, experts agree.
When it comes to second generation, U.S.-born younger Hispanics, "most categories are pretty open," said Felipe Korzenny, founder and director with the Center for Hispanic Marketing Communications at Florida State University. The younger generation will have taste memories of the ethnic foods they ate as children but often they won't want to do the amount of kitchen work their mothers did to prepare such dishes. So, they're open to convenience-oriented ethnic products such as refried beans in cans, something a recent immigrant Hispanic woman would not consider, Mr. Korzenny said.
Refrigerated and frozen products, another category their immigrant mothers likely seldom, if ever, shopped in, also present opportunities for ethnic private label offerings that can appeal to the under-30 crowd with authentic tastes.
"If it tastes like the real thing, it does well with the second generation," said David Morse, president and CEO with New American Dimensions, LLC, a multicultural marketing research firm. Simply positioning ethnic private label as lower-cost alternatives to name brands is not enough to attract younger Hispanics, he argues.
Rather, it's about el Sabor, the taste. "Taste trumps price. Taste is a pillar of Latin culture. Food and flavor are how they identify themselves."
Unlike earlier immigrant groups whose second generations tended to turn their backs on their ethnic cultures, even changing names to become more Americanized, younger Hispanics want to remain tied to their roots and so continue to eat ethnic foods while at the same time eating more traditional American fare.
As they have children of their own, they teach them about the culture. Third generation Hispanics will stay connected by learning Spanish and learning as much as possible about their cultural heritage, a process known as retro acculturalization, said Mark Ferro, senior account planner with The Integer Group, a brand marketing firm.
For example, Spanish-language marketing is important to the second generation for a different reason.
"It's more than a language issue, it's a cultural issue. They feel that Spanish is important to them," said Mr. Ferro. Spanish can be used selectively on packaging for products aimed at second generation Hispanics. Ingredient lists and other informational communications can be in English, but words that invoke family, motherhood and other emotional touchstones should be done in Spanish. "For the second generation, if you put some Spanish on your package, it says you care about them," says Mr. Morse.
My response to the article follows:
The challenge in reaching the under-30 Hispanic consumer market is not recognizing that this consumer group is very fluid and rapidly evolving.
This means that the "rules" or "axioms" don't necessarily apply. Retailers and brands need to avoid conducting marketing by template. The Hispanic consumer market (or HCM) will respond differently to every category...moreover, the consumer will react differently to segments within the category.
While I appreciate the "insights" provided in the article above, I strongly caution anyone reading them to interpret them as doctrine; the marketing world is littered with campaigns that followed template marketing and failed.
My advice to all is not to apply "Hispanic Marketing." Simply apply the marketing discipline to the HCM in the same way you apply it to your mainstream consumer, learn the true insights, and approach the consumer intelligently.
This means that the "rules" or "axioms" don't necessarily apply. Retailers and brands need to avoid conducting marketing by template. The Hispanic consumer market (or HCM) will respond differently to every category...moreover, the consumer will react differently to segments within the category.
While I appreciate the "insights" provided in the article above, I strongly caution anyone reading them to interpret them as doctrine; the marketing world is littered with campaigns that followed template marketing and failed.
My advice to all is not to apply "Hispanic Marketing." Simply apply the marketing discipline to the HCM in the same way you apply it to your mainstream consumer, learn the true insights, and approach the consumer intelligently.
The second question about food and traditions is very interesting. Convenience is always and attractive option for any cook with limited time, but not all meals are the same. When time exists, tradition takes on a bigger role for ANY ethnic culture.
The interesting aspect of food is how it becomes a part of "American" culture, how it mixes, how it improves with the influence of other cultures. Food marketers need to pay attention to the HCM, but not only as a function of selling Hispanic products, rather as an indication of the changing palate in the country.
When we think of hot dogs and apple pie as typical American fare, we are thinking of German food in the U.S. and decades ago the adage was true. But truly contemporary "American" food is an amalgamation of the cultures that make us "American." I believe truly "American" food is more along the line of chipotle humus, kogi tacos, and Thai pizza. The interesting aspect of food is how it becomes a part of "American" culture, how it mixes, how it improves with the influence of other cultures. Food marketers need to pay attention to the HCM, but not only as a function of selling Hispanic products, rather as an indication of the changing palate in the country.
