HispanicTrending

Hispanic entrepreneurs being business savvy to Grand Rapids

October 30, 2005
By Paul R. Kopenkoskey

Sienis Avila has no problem deciding if he would rather stretch his entrepreneurial wings in the United States or his homeland, Cuba.

The land of opportunity wins hands down.

"It's because of the freedom, the democracy and the opportunity to grow and to develop," said Avila, a native of Havana who immigrated to the U.S. in 1997.

Avila and 73 other businesspeople were seeking to fulfill dreams of their own Saturday as vendors at the West Michigan Hispanic Business Expo.

"The United States is not something closed," said Avila, who started a Web design and computer repair business six months ago in Wyoming and employs three.

"You don't have to do what they tell you. There's a lot of freedom here to do your own dream, and not one way but different ways."

The third annual expo, held at the DeltaPlex Entertainment and Expo Center, is an example of new territory Latinos have gained within the mainstream business sector, said Dina Gonzalez, president of the 100-member West Michigan Hispanic Chamber of Commerce.

As proof, Gonzalez noted about half the vendors were not Hispanic businesses.

"They're looking to partner up with the Hispanic community," she said.

Area businesses have demonstrated a willingness to shake off the prejudice Grand Rapids' Hispanics, last counted at 25,720, have encountered, she said.

"As we continue to grow in the community, I see change," she said.

"Welcoming Latinos is all hot right now," she said. "We have a very strong family concept. That really does break down the barriers. It's more, 'What can we do for you?' instead of 'What can I do for myself?'"

Hispanics' presence is growing in local media as well, Gonzalez said.

Four local Hispanic newspapers, three radio stations and four cable TV shows are available in Grand Rapids.

But another media component -- the Internet -- eludes Hispanic-owned businesses, Avila said.

Latinos could gain a bigger market share through Web sites -- a prospect Avila hopes he can help remedy.

"We've got Hispanic businesses that have not integrated their businesses with technology," Avila said. "With a Web page, they got an opportunity to show their business beyond Grand Rapids.

An estimated 800 people attended this year's expo almost doubling last year's attendance, Gonzalez said.

Source: The Grand Rapids Press

Sales lost in translation: Focus on marketing to Hispanic audience presents challenges

October 30, 2005
By Diwata Fonte

When Braniff International Airways translated its "Fly in Leather" slogan for a Spanish-speaking audience, it intended to highlight its high-class interiors and seating.

But instead of conjuring images of luxury, the message caused confusion, humor and a little bit of unease.

"Vuela en cuero," the literal translation, urged customers to fly in their airplane — naked.

Marketing to Hispanic consumers has its history of calamities, as in this 1970s case that is often cited as an example of translation gone wrong. Awkward attempts still abound today as companies experience the growing pains of the new audience.

But executives and consumers say that the results are becoming more sophisticated, specialized and respectful of differences within the market.

"I think we're really learning and taking risks in what works and in what's effective," said Virginia Madrid-Salazar, owner of Madrid-Salazar Marketing & Public Relations in Fresno. "Marketing to the Latino community has really evolved."

Marketing is not just about advertising in Spanish, she said, and companies are paying more attention to the different segments in the community such as first-, second- and third-generation families.

For example, she said she's working with First 5 Tulare County, which helps provide children 5 and younger with a healthy start.

"We're not only talking to new residents," she said, "but we're also talking to middle-class Latinos. There's a broad difference in the community there."

With $1 trillion of purchasing power predicted by 2010, according to the research firm HispanTelligence, companies are spending increasing amounts of resources on reaching the U.S. Hispanic market.

In 2004, advertisers spent about $3.09 billion to market to this group, an 11% increase from 2003, according to U.S. Hispanic Media Markets Report.

In the central San Joaquin Valley, this population is difficult or impossible to ignore, with almost one in two residents claiming Hispanic or Latino backgrounds.

Hispanics or Latinos make up 46% of the population in Fresno, Tulare, Kings and Madera counties, according to the 2000 census. The percentage is highest for Tulare County, where Hispanics or Latinos make up 50.8%.

But with all this interest, leaders in the Hispanic business community are quick to point out the complexity in attracting Hispanic customers, especially regarding the nuances of language and culture.

"What Hispanic market are you talking about?" queries Gil Jaramillo, executive director of the Tulare Kings Hispanic Chamber of Commerce.

"Too often people just think about the Hispanic market, and use too broad a brush stroke."

Using his own family as an example, Jaramillo described the diversity within the Hispanic market, and within individual families.

Jaramillo's family has been in the United States for three generations, he said, and as professionals are just as apt to eat Italian food at Olive Garden as more traditional rice and beans.

"[This month], I took my grandson and a couple of his friends to see the Green Day concert," he said. "We don't just listen to mariachi music."

Jaramillo agrees that he is seeing vast improvements in the way that companies cater to U.S. Hispanics with bilingual signs, with Hispanic faces in English-language commercials, and with hiring Hispanic employees to make their customers feel more welcome.

But language still poses a problem, he said. With the diversity of the Hispanic market, careful decisions must be made between the correct usage of Spanish, English or both.

Translation is especially rife with trouble.

"Typically, the major turnoff to Hispanics is when you have a badly translated ad or a brochure," said Felipe Korzenny, a professor at Florida State University and author of the book "Hispanic Marketing: A Cultural Perspective." "That used to be much more common a few years ago than it is now, but it is still a problem, particularly with smaller businesses."

Mistakes in literal translations, such as the case with Braniff, are common, he said. A hat store might advertise its "head coverings" in Spanish. Another version might include Spanish words around an English acronym, like "PIN" for personal identification number, he said.

"Every day, I see something silly," he said.

Financial institutions have even more trouble with this, because terms such as "escrow" — where a neutral third party holds assets until the transaction can be finalized — do not have literal translations in Spanish, he said.

Korzenny said in his research, he found that Hispanics with weaker English skills would rather see something in English than in confusing Spanish.

But companies that succeed in sending the right message can reap loyal and appreciative customers.

According to Simmons Market Research Bureau, more than half of the predominately Spanish speakers in the United States feel more respect for companies that advertise in Spanish, feel more loyal to companies that advertise in Spanish and remember products that are advertised in Spanish.

"It's kind of neat because it shows they're trying," said Exeter resident Rosa Ruiz, 18, who is bilingual.

Language is just one aspect of marketing, experts say.

Understanding cultural values is becoming even more important, especially with a large portion of the Hispanic population speaking only English, or preferring English.

"You have to market a little bit different, not in a bad way, but in a different way," said Eric Lindberg, owner of the Computer Gym in Visalia.

Lindberg's company is trying to create a program targeting the Hispanics who feel they want to learn more about computers, such as using the Internet, and Microsoft programs.

Besides working with his contacts in the Hispanic business community and running articles in English and Spanish in a business newsletter, he is also considering a marketing strategy that appeals to family bonds and parents' desire to help children with their homework.

But he's also concerned that the advertisements are not condescending, he said.

"I don't want to insult anyone. Intelligence is something we all have inherently. I don't care if you're Hispanic or if you're white," he said.

One way to approach this is to step away from translating and create a distinct Spanish message from the ground up, Korzenny said.

"Now the connection is not so much in language, but in culture," said Korzenny.

In the case of a campaign for pork, Korzenny said that translating the English slogan, "the other white meat" would not make any sense culturally, he said.

Instead, the campaign took a different angle in encouraging Hispanic consumers to eat more pork.

They based it on the misgivings some in the Hispanic community might have about eating pork, such as the fear they might get sick or that it is fattening.

Using these cultural reference points, he said, they used the slogan: "El Cerdo es Bueno," or "The pork is good."

In a local example, Art Reker, owner of Armadillo Advertising in Clovis, said he is working on a project to create a parallel Web site in Spanish for the insurance company Van Beurden Insurance Services.

Instead of just translating the Web site, they are "rebuilding" it, he said. All the photographs will be different, and the material — which has the same basic content — will be presented differently to emphasize some of the values they feel are important to Hispanic consumers, such as family and future and home.

In describing the values they zero in on when targeting Hispanic consumers, he said: "The Hispanic future is one that's brighter and more positive and full of good dreams and our advertising appeals to that."

Ruiz, a student at College of the Sequoias, said she doesn't see a lot of images of Hispanics or Latinos on television, but she agrees that those values are important in her family.

If your family sees you are pushing yourself to the extreme, she said, they will support you. Roots are also key, she said: "Always remember where you came from."

Madrid-Salazar said she knows that images with strong, shared memories and values can be powerful. She described the sensory feelings upon entering a bakery.

"There's something that happens when you walk into a panadería and you smell the sweet bread and you know it," she said. "I don't know if somebody who isn't Latino would understand that and what that means … It's just a part of who you are. There's something about it that's within you."

Despite some misguided attempts that may even offend Hispanics, Cesar Lucio, president of the Fresno Area Hispanic Chamber of Commerce, said it's understandable that businesses need to make their mistakes first.

"It's part of the learning curve," he said. "They're trying to hit different segments of the markets, and they're going to find out what works and what doesn't work. I mean, it's new!"

Source: The Fresno Bee

Survey results show how restaurants can target Hispanic market

October 31, 2005
By Gregg Cebrzynski

Restaurants can generate more business from Hispanic customers by developing family-oriented menus, understanding the separate needs of subcultures in the Hispanic population and building casual-dining restaurants in or close to Hispanic neighborhoods, according to a new study by Advo Inc.

The study — called "El Mercado Restaurante," which is Spanish for "the restaurant market" — surveyed 1,200 Hispanic and 500 non-Hispanic consumers about their dining behavior and attitudes. Woelfel Research of Dunn Loring, Va., conducted the survey by phone in the nation's 10 largest Hispanic markets: Chicago, Los Angeles, Miami, San Francisco, Dallas, San Antonio, New York, Houston, Phoenix and San Diego.

One of the key findings is that Hispanics spend an average of $71 a week eating out or having food delivered, while non-Hispanics spend only $59.

Acculturated Hispanics, defined as those who have adapted fully to mainstream America while retaining their cultural perspectives and values, spend even more: $108 a week, which is about 83 percent more than the general-market consumer.

The higher spending among Hispanics is a result of the importance they place on food and the fact that there are more family members to feed, said Joella Roy, senior manager of marketing research for Windsor, Conn.-based Advo, the nation's largest direct-mail company.

Hispanics consider the family's needs an important factor in choosing a restaurant, Roy said. Although Hispanics and non-Hispanics view cleanliness, taste and value as the most important attributes when choosing a restaurant, Hispanics consider certain "family-oriented" attributes more important than general-market consumers do, according to the study.

When picking a restaurant, 24 percent of Hispanics said child friendliness is important, compared with only 8 percent of the general-market consumers who said the same thing. Twenty-eight percent of Hispanics, compared with 18 percent of the general market, said menu variety is important, and 20 percent of Hispanics compared with 14 percent of general-market consumers said low prices are an important factor.

These attributes show that Hispanics view dining out as a family affair in which the menu variety, low prices and a friendly atmosphere for children are top-of-mind when deciding where and what to eat, Roy said.

As a result, restaurateurs need to have a "basic understanding that when you have a family going out, you need more variety to please everybody," Roy said.

The study showed that Hispanics visit quick-service restaurants more often than other types of restaurants. Hispanics ate an average of 2.2 meals from fast feeders during the week before the survey, compared with 1.5 meals at casual-dining restaurants.

The study showed that Hispanics often choose restaurants based on coupons they received in the mail. By a 2-to-1 margin, respondents said the receipt of coupons for a particular restaurant drove their most recent restaurant choice.

"Hispanics get significantly less mail in general than the general market, so they look very closely at everything they do get, and they have higher recall rates of what they get," Roy said.

More than a third of Hispanic consumers in the survey said the coupon they used most recently came in the mail.

Hispanic consumers also use carryout and delivery service more often than general-market consumers, with 53 percent of Hispanics doing so compared with 44 percent of general-market consumers.

Hispanics visit quick-service restaurants because most of the national chains have restaurants located in Hispanic neighborhoods, Roy said, and they get delivery and carryout meals so that they can eat at home as a family.

For casual-dining meals Hispanics tend to eat at local, independent restaurants instead of chain restaurants because the chains aren't located nearby.

"It becomes an accessibility issue," said Mary Lou Dlugolenski, Advo's director of communications. "That's why there's such a great opportunity for casual-dining restaurants."

Roy added, "The thing to understand is who's near your location and how to reach them." A neighborhood may have fringe areas that are multicultural, making that area a good spot for a casual-dining restaurant, she said.

Advertising is best done in a bilingual format because, "When you're targeting into these areas it's not necessarily 100 percent Hispanic or 100 percent non-Hispanic," Roy said. In fact, the study showed that Hispanics would prefer bilingual advertising and marketing materials that are culturally relevant and that address their traditions and lifestyles.

Findings in the study also showed that acculturation tends to be the factor that segments Hispanic attitudes and behavior. Restaurateurs need to know "where Hispanics are along the acculturation model" in order to craft messages relevant to them, Dlugolenski said. "Advertisers tend to look at Hispanics as a homogenous group," she said. "The study showed they're very heterogeneous."

Understanding the diversity of the market is one of the most important factors in marketing to Hispanics, according to Becky Arreaga, president of Mercury Mambo, a Hispanic-marketing agency in Austin, Texas.

"Ethnographers estimate that there are over 17 different cultures that comprise the U.S. Hispanic population," she said, and each has its own traditions, dialects and colloquialisms.

"When possible, marketers should avoid direct translations of general market campaigns," Arreaga said, because they often lack relevance and can be subject to translation problems.

Advertising that is culturally sensitive works best in targeting Hispanics, she said. "There are cultural nuances you can incorporate into your marketing messages that may be more effective against acculturated Hispanics," she said. "I believe that Hispanics respond to more emotionally driven messages versus rational appeals."

Arreaga agreed that marketers have to understand the emphasis Hispanics that put on family relations.

"Hispanics often shop, watch TV and entertain as families," she said. "It is not uncommon to see mothers, fathers and children doing the weekly grocery shopping. The sense of family holds true to extended family and close friends."

Source: Nation's Restaurant News

Hispanic farmers represent a growing sector of U.S. agriculture

October 31, 2005
Source: Western Farm Press

Hispanic-operated farms comprised more than 20.8 million acres of farmland throughout the United States in 2002, up 23.8 percent from 16.8 million acres five years earlier.

Farmers of Hispanic origin are a significant and growing part of U.S. agriculture, according to data from the 2002 Census of Agriculture.

The 2002 census revealed major increases not only in the number of U.S. farms operated by Hispanics, but in the value of the products produced on those farms, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).

The number of farms with Hispanic principal operators grew 51.2 percent between 1997 and 2002, from 33,450 to 50,592. Of those farms, Hispanic women, the largest group of minority women principal operators, operated 10 percent.

“Hispanic farmers and ranchers are the largest group of minority farm operators in the United States. There are at least twice as many Hispanic farmers and ranchers as any other group of minority operators,” noted NASS Administrator R. Ronald Bosecker.

Hispanic-operated farms comprised more than 20.8 million acres of farmland throughout the United States in 2002, up 23.8 percent from 16.8 million acres five years earlier. The value of agricultural products sold also grew by 39 percent, or $1.3 billion.

In 2002, Hispanic principal operators sold a total of $4.67 billion in agricultural products, including $3.07 billion in crops and $1.6 billion in livestock, poultry and their products.

NASS conducts the Census of Agriculture every five years. It is the only source of consistent, comparable and detailed agricultural data for every county in America. For the statistics reported, Hispanic operators are individuals of Spanish, Hispanic or Latino origin.

“NASS is committed to providing accurate and detailed data on all minority farms and farm operators and we are working closely with minority farm organizations to improve our outreach efforts,” Bosecker said in a release dated Oct. 13.

Beef, row crops Of the 50,592 total Hispanic-operated farms, more than a third, 17,756, were beef cattle ranching and farming operations. The second largest type of operation was “other crop farming” with 8,101. This category includes hay, peanuts, grass seed and farms where no single commodity provided the majority of the income. Third was fruit and tree nut farming with 7,739 operations.

In 2002, Texas led the nation in the number of Hispanic farm operators and acres, followed by California, New Mexico, Florida, Colorado, Oklahoma, Washington, Oregon, Idaho and Michigan.

Data from the 2002 Census of Agriculture revealed some common characteristics among Hispanic principal operators and operations. The percent of Hispanic principal operators who were full owners of the farms they operated was 72.4, and nearly all Hispanic principal operators, 92.4 percent, owned at least part of the land they operated.

More than 90 percent of Hispanic-operated farms – 45,692 – are family or individually owned, rather than partnerships or corporations. More than half of all Hispanic principal operators were between the ages of 45 and 64 years, with 63.2 percent having worked on their current farm for at least 10 years.

The 2002 Census also provided the first facts on computer and Internet use by farmers and ranchers on a county-by-county basis. Census data revealed that 33.7 percent of Hispanic-operated farms use computers for business and 41.7 percent of all Hispanic operations have access to the Internet.

Attend “Selling Consumer Products to Hispanics in the U.S.A.” in La Jolla, CA for Free

Thanks to Nacho Hernandez from iHispanic.com and the Institute of the Americas, Hispanic Trending managed to get a free pass to this roundtable for one of our readers… We know it is last minute, but it is worth jumping through hoops for this one.

The first reader that finds and emails me (click on the “email me” link on the left hand column) the total $$ spent online by Hispanics in 2004, will be the winner of the $975.00 face value ticket.

If you are or can be in La Jolla for this event, November 3-4, 2005… what are you waiting for :-)

Hispanic Dining Habits

October 31, 2005      
Via HispanicAd.com

ADVO, Inc. has major implications for restaurant operators searching for new ways to reach the burgeoning Hispanic consumer market, which has grown in population by 50% over the past decade.

The study, titled El Mercado Restaurante (The Restaurant Market), focused on three restaurant categories-casual/family dining restaurants (with full table service), quick serve restaurants and pizza restaurants-and included take-out, eat-in and delivery. It found that Hispanic consumers spend 20% more per week at these dining establishments than non-Hispanic consumers (general market). The data also shows that Hispanic consumers place different levels of importance on certain restaurant attributes, including family-friendliness, price, service and variety, and illustrates the potential value that bilingual, culturally relevant promotions have in helping restaurateurs market to Hispanics.

"Attracting Hispanic consumers is a major opportunity for restaurant owners, and this research can help them better reach this expanding marketplace to drive traffic and increase sales," notes Thérèse Mulvey, vice president of Market Intelligence at ADVO, which has committed significant resources to helping its 17,000 advertiser clients better understand the Hispanic marketplace. "This study shows that Hispanics have some distinct restaurant dining habits and attitudes that-if tapped by restaurateurs-may offer new ways to cater to this increasingly important consumer demographic."

Hispanics-Especially the Acculturated-Spend More
Overall weekly spending at restaurants is significantly higher among Hispanics, who reported spending an average of $71 per week eating out or having food delivered to home or work-while non-Hispanics reported spending only $59 per week. This disparity is even greater among acculturated Hispanics, who are defined as having fully adapted to the mainstream American culture while still maintaining the perspectives and values of their native culture. This group reported spending an average of $108 per week at restaurants-83% more than the general market consumer.

"This finding underscores how important food is to these consumers, and how willing they are to spend their income on restaurant purchases. Moreover, it serves as a reminder that-as with any consumer group-it's important to avoid making generalities," says Mulvey. "Within the Hispanic consumer audience, there are different segments that sometimes show different dining habits. In these cases, acculturation tends to be a key differentiator, and restaurant owners should take note."

Focus on the Family
Overall, Hispanics and non-Hispanics agree that the most important attributes when choosing a restaurant are cleanliness, taste and value. However, Hispanics consider certain attributes more important than the general market consumer, including child-friendliness (24% versus 8%, respectively), variety (28% versus 18%), good service (39% versus 32%) and low prices (20% versus 14%).

"These qualities relate to Hispanic consumers' preferences for choosing a restaurant where the entire family can eat," observes Mulvey. "Restaurants should consider putting issues like family-friendliness front-and-center in order to draw the attention and dining dollar of the Hispanic marketplace. That means offering more affordable and broad menus that appeal to multiple family members-while enhancing service to meet this audience's expectations."

QSRs, Delivery, Take-Out Popular-While Casual Dining Chains Have Opportunity
The study shows that Hispanics visit quick-serve restaurants more than other types of restaurants, reporting an average of 2.2 meals eaten at or taken from these establishments in the week prior to the survey. In comparison they report an average of 1.5 meals eaten at casual dining restaurants and less than one meal per week at a pizza restaurant.

In addition, Hispanic consumers report an overall higher usage of delivery and take-out than general market consumers (53% vs. 44%, respectively).

When it comes to their choice of casual dining restaurants, the study shows that Hispanics tend to frequent local, independent establishments rather than national chains. This is in contrast with the general marketplace, which tends to favor national chains.

"This difference may be because national and large regional casual dining chains tend to be less accessible to Hispanics," says Mulvey. "Locating new casual dining restaurants in neighborhoods where these consumers can more easily access them could represent an opportunity for casual dining chains."

Coupons Drive Purchase
According to the survey, coupons resonate with Hispanics, who responded-by a 2-to-1 ratio-that the receipt of coupons for a particular restaurant drove their most recent restaurant choice. The paradox, however, is that by a nearly 4-to-1 margin, Hispanics report receiving fewer coupons than general market consumers.

Of the coupons Hispanics did receive and use, more than a third of them were received via direct mail, which far outpaced other forms of media as the most effective vehicle for reaching this group.

"This data means that there's a significant portion of this demographic group that could be enticed to choose a restaurant because of a coupon, yet is being missed in the promotional sense by restaurant marketers," says Mulvey. "Competition is fierce in the restaurant industry, so restaurant owners should strongly consider reaching out more aggressively to Hispanic consumers with coupons and promotional offers. Furthermore, it appears from the study that direct mail is a more efficient way to make sure these offers make it into their hands."

Bilingual, Culturally Relevant Approach is Best
Effectively appealing to the Hispanic marketplace also means communicating to them through marketing vehicles that are both bilingual and culturally relevant.

"The study shows that language preference-English or Spanish-is fairly evenly split among all Hispanics-even among those who are more acculturated, which suggests that a bilingual approach to marketing may be the most effective way to promote restaurants to this population segment," notes Mulvey. "The data also points out that culturally relevant marketing materials make a strong impression with Hispanic consumers, meaning that appealing to them is more than a matter of just translating current marketing materials into Spanish. Reaching out to Hispanics in a way that speaks to their unique traditions and lifestyle is also important."

English Is The Undisputed Language Preference Of US-born Latinos

October , 2005      
Via HispanicAd.com

Confirming a major paradigm shift in the understanding of language preference among US-born Hispanics, a new study finds that English is the overwhelming language choice among 2nd generation Latinos, and becomes nearly absolute among third generation Hispanics. The study, authored by David Morse, President and CEO of the multicultural market research firm New American Dimensions, looks at language preference for TV viewing and commercials, and concludes that U.S. Hispanics overwhelmingly prefer English language TV, and are more inclined to buy a product if an ad featured Hispanics speaking English. The study also finds that, despite their preference for English, many Hispanics still watch certain types of Spanish language entertainment.

The results of the study, “Made in America: Communicating with Young Latinos,” will be released today at a conference on “Marketing to Latinos in English,” held at the Maritime Hotel in New York City. It is among the first studies by an independent research organization unaffiliated with broadcast networks, and one of the largest of its kind. The conference is sponsored by Los Angeles-based New American Dimensions and Tu Ciudad Magazine.

The survey of 1,135 U-S born Hispanics in Los Angeles, New York, Miami, Chicago, and Houston also found:

Acculturated 1st generation Latinos (generation “1.5”) – those who came to the U.S. earlier than five years of age – also prefer English language TV and advertising.

All groups (1.5, 2nd, and 3rd generation) demonstrate a clear preference for English-language TV, though all groups watch at least some Spanish language TV.

TV viewing habits related to language preference are determined by content: “reality” programs and comedies are the biggest draw for English language TV viewing, while Spanish language “soaps” and novelas top Spanish language viewing preferences .
When asked to cite favorite commercials either in Spanish or English, respondents nearly always chose English language commercials.

“Although at one time it was assumed that US-born Latinos were no different than more recent immigrants in their language preference, this study clearly demonstrates that US-born Latinos, like the children of other ethnic groups who have come to this country, prefer English,” said David Morse, President and CEO of New American Dimensions, which provides customized ethnic market and consumer research.

The study focused on acculturated Hispanics 14 to 29. Respondents were all US-born, or else they came to the US when they were 5 years old or younger. Participants responded to a 25-minute survey conducted by phone, in person, and online.

Viacom to Buy Hispanic Youth Music Network

October 28, 2005
Christina Hoag

Media giant Viacom has bought Coral Gables-based Caballero Television's Mas Musica TeVe network and 10 of the company's TV stations in Texas and California. Terms were not disclosed.

Mas Musica Vice President Rosamaria Caballero said the company decided to sell because Viacom, which owns CBS, MTV and a host of other media properties, has the resources to do more with the Hispanic youth music network.

"It's just the opportunity to see it grow more than we can do by ourselves," according to Caballero, who is also president of Caballero Television Texas, the station group.

Caballero Television Texas will keep two TV stations in California, she said, adding that the company did not know yet whether the stations would continue airing Mas Musica TeVe.

Caballero and her father, Eduardo Caballero who heads Mas Musica, will stay on with the network "to help out," she said.

Viacom did not return calls requesting comment.

Eduardo Caballero founded Mas Musica in 1998 as a Spanish-language music and entertainment network that targets 18- to 34-year-old Hispanics.

It airs on the Caballero-owned stations, plus several dozen others throughout the country.

Media analyst Philip Remek said that although no dollar amount was announced, the acquisition seems small for a huge conglomerate such as Viacom.

"Mas Musica does reach 70 percent of the Hispanic market and Viacom has people who know this market," he said. "But it doesn't seem like a very big deal," he added.

Source: Miami Herald via HispanicBusiness.com

Localize to Optimize

October 27, 2005
By Michael R. Cárdenas

Local Concept's Michael Cardenas explains why marketers should localize their material for the growing Hispanic market -- within both North and South America.

It has become painfully clear that the U.S. economy has not rebounded as expected, and the dollar is not performing well. Across the sea in Europe, things don’t look a heck of a lot better. Growth has quite frankly stagnated. And it seems that Japan has yet to wake up from a period of dormancy that began back in 1998. The buzz around the IT industry has now turned to China -- the place to see and be seen.

But as usual, the most obvious hot spot is right under our own noses -- the sleeping giant known as Latin America.

While the United States and other western markets are expected to grow about six percent annually, International Data Corporation (IDC) sees Latin America's growth rate averaging 16 percent annually. It’s anticipated that some of those countries may even grow as much as 20 percent per year.

How is this possible? Growth rates for most Latin American countries are more dynamic given the low saturation point for PC and PDA (personal digital assistant) products, for example. Businesses are more conscious of the benefits derived from an implementation of specialized applications, and local firms are taking advantage of this trend. International software publishers like IBM, Sun, Oracle and Microsoft understand the opportunities that await them in the southern American market and have jumped on them.

Yet there are some key differences between Latin America and other countries that most likely account for their ability to grow quickly. Project sizes tend to be smaller, and the intense scrutiny from U.S. headquarters that requires a quantifiable ROI (return on investment) argument as part of the sales process is not always given the same degree of attention in this region. However, providing an ROI argument can provide significant advantages to software publishers who go to the trouble to provide one. Most companies buying software in the region will tend to look to industry-specific solutions, and thus ROI becomes a very important factor. They seem to have a “sink or swim” attitude towards doing business. In many cases, the best way to market vertical software in the region is through industry, as opposed to using IT consultants.

The most attractive markets today are Brazil, Mexico and, to a lesser degree, Argentina and Colombia. For the software industry, there is a serious need for companies that offer complimentary services that can help them grow. Services like -- localization.

Take Brazil for instance: the biggest population, the greatest area, and the largest and most diverse industrial base in Latin America. Brazil is not only an attractive market, it is also an excellent launching pad for products and for exporting from Latin America.

Latin Americans in the United States
Interestingly enough, few companies are distributing the Spanish version of their localized products in the United States. Although the U.S. Hispanic purchasing purse equals USD 428 billion a year, and the U.S. Hispanic market is the fifth largest in the world, most companies prefer to sell their products only in English. Many of these same companies create a localized product for the Latin American market, but don’t include U.S. Hispanics. This may be because there are few talented Hispanic advertising agencies or localization companies headquartered in the United States.

The convergence of localization and advertising for the U.S. Hispanic market brings together two distinct needs -- education and motivation. Localization companies have experience in helping consumers use products. Branding and advertising appeal to the consumers’ emotions and provide a call to action: “Get up and buy now! After all, you need it!” Very few companies have the experience in both venues. It’s a lot of work with a lot of risk that might not be well compensated -- at first.

For those interested in targeting the U.S. Hispanic market, there are some general marketing strategies to consider. You’re selling to a culture, not selling a language, and this culture thinks differently than the general market. The United States is constituted by Hispanics who speak only Spanish, Hispanics who speak only English but talk, walk and think like Hispanics, and the bilingual (but English-dominant) Hispanics.

A successful Hispanic marketing strategy will cross-pollinate its message in both English and Spanish. The U.S. Hispanic market is more open to using English terms, such as “voicemail,” because they hear these words in English with greater frequency. Another reason is that the longer Hispanic Spanish-dominant speakers stay in the United States, the more comfortable they become using English words.

Musing about losing one's mother tongue

October 27, 2005
By Luis Humberto Crosthwaite

Several years ago, I had the privilege of working with the Mixteco community in San Quintín, Baja California, while doing some research for a book.

I intended to re-create the story of an indigenous Mexican migrant, from his origins in the state of Oaxaca, through his travels to various cities in Mexico, and finally, his voyage to the United States.

The Mixtecos are a brave people who try to survive through the endemic misery that surrounds them. Different organizations, including the Mexican government, have tried to help the Mixtecos hold onto their roots through their voyages and contact with other cultures, especially urban ones. In San Quintín, there are bilingual schools with classes in both Mixteco and Spanish.

A long-standing complaint from many teachers in these schools is that many Mixtecos choose to forbid their children from speaking their tongue. Those parents prefer that their children speak, read and write exclusively in Spanish; they feel that speaking their mother tongue is a step backward, that it will be of no use to them in the future, that the language is just a sad testament to their ignorance and poverty.

I remembered my experiences writing that book because recently, Daniel, an American nephew of Mexican descent, was telling me the reasons he didn't speak Spanish. He told me that his mother, who was born in Mexico and immigrated to the United States as a child, suffered from racial prejudice in California, much of it because she didn't speak English.

She decided that her children wouldn't live through the same humiliations that had hurt her so much; so she made up her mind that her children would speak only English. She saw it as the only way to spare them the pain of being born in a country where skin color and cultural differences were reasons for discrimination.

In retrospect, Daniel understands his mother's love and motivations, but he still regrets that tough sacrifice.

"My mother's decision hurt us in the long run," he told me. "When we started working, we discovered that speaking Spanish would have been an advantage for us in the workplace."

Losing one's mother tongue is not something to be taken lightly. Unfortunately, many Mexican immigrants in the United States, for various reasons, make the same decision many Mixtecos do when they leave their birthplace: that their children speak exclusively the predominant language of their new home.

Sometimes the decision is well thought-out; other times it is because of mere indolence. Parents let the child grow up not speaking Spanish because it's easier for them. They let their children be entirely absorbed by their contact with television, school and their friends, and they make no effort at home to fight what will eventually become a total or partial loss of the mother tongue.

It is ever more common to find young Latinos in the United States who can barely speak Spanish, or indeed, not at all. These young people, in turn, will not have the necessary tools to transmit that language to their children.

Even though there's always someone eager to advocate that English be the only language spoken in the United States, cultural diversity, throughout history, has been one of the strong foundations of this country.

Besides allowing their child to miss out on the great opportunity of being bilingual, parents who don't stimulate the learning of their mother tongue are ensuring that their children lose a valuable cultural heritage, the last and most important connection to their roots.

Source: The Union Tribune