FEBRUARY 2011
ABOUT ACENTO
Acento is a Full-Service, Fiercely Independent Hispanic Advertising, Promotions and PR agency
headquartered in Los Angeles with offices in Chicago and New York (PR)
EDITOR'S NOTE
Mark Addicks, SVP and Chief Marketing Officer at General Mills said it perfectly at the recent ANA
Multicultural Conference, "If you haven't put multicultural at the center of the plate, if you have not
personally taken that two year board, two year president, two year chairman and really shown them how
multicultural can drive your business, then you have a job to do. Multicultural is mainstream." This
comes from a marketing chief that's reaping the benefits of a 70% increase in Hispanic targeted media in
2009 and yet another increase in 2010. From its multi-brand "Que Rica Vida" website and magazine, to
network integration and sponsorships, General Mills is keeping its pedal to the medal with
capturing its Hispanic shopper share-of-wallet.
INSIGHTS
INSIGHT: CELL PHONE PENETRATION AMONG HISPANICS HITS NEW HIGH
A scan of the most recent Simmons/Experian U.S. national study shows Adult Hispanic cell phone
penetration has hit parity and is starting to surpass that of non-Hispanic. The data also reveals that
Hispanic cell phone penetration has begun to grow at a faster rate. "These dynamics are clearly a
reflection of the Latino market's continued population growth, relative youth and accelerated adoption of
technology and all things digital," says Acento's Leon Potasinski, Director Strategic Planning and
Research. "Needless to say, we can expect the mobile revolution to be led by this coveted consumer
group."
INSIGHT: HISPANICS REACT MORE POSITIVELY TO BRANDS ONLINE
According to a new digital marketing study conducted by comScore and commissioned by Tera reveals
that Hispanics, if spoken to and reached with culturally relevant messaging in English and Spanish, will
react positively to brands online more so than non-Hispanics. While non-Hispanics may tend to look at
interactive advertising as intrusive, Hispanics seem to be appreciative of the brands that are trying to
reach out to them.
INSIGHT: HISPANIC DIRECT RESPONSE SHOPPERS ARE YOUNGER AND SPEAK SPANISH AT
HOME
According to Simmons, 50% of Hispanic families that shop from Direct Response speak Spanish at
home. Additionally, Hispanics are more-likely than Non-Hispanics to buy DR from television. 1.6 million
Hispanics made DR purchases from television advertising in 2009.
INSIGHT: TIME TO MOVE IS NOW. HISPANIC PURCHASING POWER TO GROW ANOTHER 50% IN
5 YEARS!
The purchasing power of Hispanic consumers is expected to grow 50% in the next five years, according
to the latest minority buying power report from the Selig Center for Economic Growth at the University of
Georgia. Latino buying power will increase from $1 trillion in 2010 to $1.5 trillion in 2015, representing
nearly 11% of the nation's total buying power. The report notes that the rate of growth in Hispanic buying
power tops all other racial and ethnic groups as well as that of the overall buying power.
INSIGHT: HISPANICS SPEND NEARLY 48% OF TOTAL GROCERY SPEND ON PRIVATE BRANDS
According to the FMI's "Se Habla Isn't Enough: Private Brands Among Hispanics" report, on average,
Hispanic shoppers spend $85.94 on store brands as a part of their total purchase ($180.85). Men and
shoppers ages 18-24 spend more on store brand products compared to women and shoppers in different
age groups. At an average of $99.41, shoppers between the ages of 18 and 24 outspend shoppers ages
65 and older ($73.71) by more than $20.
INSIGHT: HISPANICS GRAVITATE TO IN-STORE MARKETING COMMUNICATION
As highlighted in the PanaVista 'Nvista and BIGResearch SIMM study, Hispanic chain shoppers appear
more interested in almost all forms of in-store communications and activity than other shoppers, with store
events and contests topping the list. Other areas of strong over-indexing include checkout lane ads, info
kiosks, floor graphics, in-store TV, cart ads, and in-store radio.
INSIGHT: THE FACE OF TRADITIONALLY WHITE SUBURBS RAPIDLY CHANGING
As reported in the New York Times, a Geoscape Report (1/11) shows that more than a third of all 13.3
million new suburbanites were Hispanic, compared to 2.5 million Blacks and 2 million Asians. In all,
Whites accounted for 1/5 of suburban growth. Immigrant populations rose more than 60% in places
where immigrants made up fewer than 5% of the population in 2000.
WHO'S DOING WHAT
BEST BUY'S ONLINE SPANISH-LANGUAGE SHOPPERS SPEND MORE DOLLARS THAN OTHER
CONSUMERS
Shoppers on the Spanish-language e-commerce site operated by Best Buy spend roughly twice as much
money there as do shoppers on the English-language site when measured by average order value, says
Ana Grace, the retailer's global web team site manager. Best Buy launched the site more than three
years ago and has taken advantage of the fact that there was a relative scarcity of detailed consumer
electronics product information in Spanish on U.S.-operated e-commerce sites. Many Hispanic
consumers are more comfortable with Spanish than English, and they are spending more time on the site
reading product specifications and other information. The site's visitor numbers continue to increase by
double-digit rates each year.
POST FOODS TEAMS WITH TELEMUNDO
Post Foods' Honey Bunches of Oats has partnered with Telemundo for its "Pensemos Positivo" initiative.
Telenovela star Jencarlos Canela, who wrote a song about positive thinking and whose face will appear
on millions of cereal boxes, will take the lead role in the campaign which includes TV, a national
sweepstakes and a private concert with Canela as well as an on-product and on-shelf retail promotion.
Jencarlos will also host an episode of mun2's "2RSLVJ" and revel the new "Pensemos Positivo" music
video, as well as behind the scenes video clips on-air on "18 and Over."
GRUPO MODELO STRUGGLES TO REMAIN INDEPENDENT
As reported in Bloomberg Businessweek...While some global brewers are aggregations of local beers
that are strong in their home markets, Mexico's Grupo Modelo is the owner of a true cross-border success
story: Corona. The pale lager's foreign appeal has helped shift more than 40% of Modelo's sales to
markets outside Mexico. And Modelo managers believe there's more growth ahead if they can
continue expanding their brews internationally. "What the controlling families - the Mexican families want today is to keep working to consolidate and strengthen our company," says Chairman and CEO
Carlos Fernandez Gonzalez. Executing that go-it-alone strategy will be tough. Anheuser-Busch
InBev inherited 50% of Modelo plus 9 of its 19 board seats through its $52 billion acquisition. In July,
Modelo lost an arbitration bid to deny board seats to some AB InBev directors. Moreover, the beer
industry's global consolidation has left the giants such as AB InBev, SABMiller and Heineken so big that
it's increasingly difficult for independents such as Modelo to develop the distribution and marketing
muscle to compete.
PRONTO INSURANCE RUNS SPANISH RADIO FOR TAX SEASON
Pronto Insurance produced two TV and radio spots in Spanish and English for the current tax season.
With a humorous slant, the TV ads, which feature Pronto's animated Superhero spokesman, promote the
end result of getting a great return is more money in your pocket.
BUDWEISER AND VICENTE FERNANDEZ RAISE EDUCATION FUNDS
Budweiser and Mexican singing legend Vicente Fernandez are helping raise funds for the Hispanic
Scholarship Fund (HSF) during his 2010 tour. In 2010, 'El Rey' and the 'King of Beers' donated a
scholarship to a local college student for each of Fernandez's 24-performances. Anheuser-Busch
provided $100,000 for the partnership.
TECATE PROMOTED RESPONSIBILITY AT NEW YEARS
Tecate launched a new Hispanic-focused marketing campaign this past December which focused on
social responsibility and safety when celebrating the New Year. The initiative, which ran on Univision
radio stations nationwide, sent humorous text messages to consumers during the holiday season
reminding them to practice self restraint.
COCA-COLA NOW USING 40% OF BUDGET IN NEW MEDIA
As mentioned in Coke CMO, Beatriz Pérez's presentation at this year's ANA Multicultural & Diversity
Conference, Coca-Cola allocated 3% of its media dollars to new media in 2005. Today, new media
accounts for 40% of Coke's media dollars. On the digital front, the company has found success with a
rewards program - originally customers had to register online, but when it was expanded to allow
registration via mobile platforms "the growth was exponential." Today, Coca-Cola is testing the waters
with consumer generated content and an online program targeting 16 to 19 year olds.
LANCE ARMSTRONG FOUNDATION LAUNCHES HISPANIC CAMPAIGN
The Lance Armstrong Foundation is launching a multimedia campaign in Spanish to provide support for
cancer survivors, their families and caregivers within the Hispanic community in the U.S. The campaign
helps put practical tools and necessary information in the hands of the Hispanic community to provide
support for people affected by cancer and those close to them. Campaign elements include online video
miniseries webisodes, audio podcasts, widget, and an intensive social media campaign utilizing Twitter
and YouTube.
KMART TEAMS WITH SOFIA VERGARA FOR NEW CLOTHING LINE
Kmart will introduce a new line of clothing and accessories by actress Sofía Vergara of the hit ABC
comedy "Modern Family." The clothing line will include handbags, dresses, jewelry, sportswear and
footwear. Debuting in the fall, the new brand will be available at over 800 Kmart stores nationwide.
ING SPANISH WEBSITE TO HELP SPANISH-SPEAKERS
The ING Life Companies have launched a new, interactive online tool designed to increase sales of ING
policies, and to make it easier for Spanish-speaking Americans to learn about life insurance. Modeled
after the company's English-language site, "ING for Life en Español" uses Hispanic actors and culturally
relevant language and references. The site was developed in response to a survey that found that while
90% of Hispanic respondents felt they should have life insurance, only 39% actually did.
WENDY'S LAUNCHES HISPANIC CONSUMER CAMPAIGN
Wendy's kicked off a new series of TV and radio commercials targeting Hispanics in the U.S. The
campaign, which focuses on the expanded 99-cent Everyday Value Menu, includes a series of TV spots
airing on national network, cable and local spot TV, plus local radio efforts.
ALLSTATE ROLLS OUT HISPANIC CAMPAIGN
Allstate's new campaign, "Mala Suerte" highlights the protection, value and peace of mind that the insurer
provides when bad things happen. The Hispanic campaign stems from the success of the general market
"Mayhem" campaign. Since there is no literal translation in Spanish for the word "Mayhem," Allstate
created "Mala Suerte" which resonates with Hispanic consumers. Consumer research showed that many
Hispanic consumers blame fate or bad luck for an accident and are more likely to find fault with
circumstances rather than a person who may have done something wrong. The TV campaign is
supported by radio, print, online and social media efforts.
INTERACTIVE / DIGITAL
HOW LATINOS WILL USE SOCIAL MEDIA TO CHANGE THE WORLD
Forget the digital divide. Latinos impressive adoption of social media and mobile phones is having a real
impact on everything from finding a job to running a small business. "Latinos are uniquely positioned to
take advantage of social media because of their cultural disposition," says Joe Kutchera, Acento Director
of Digital Services. "Some cultures prefer an individualistic web experience while others prefer a
collectivistic web experience. In Kutchera's opinion, "Latinos fall squarely on the collectivistic side of the
spectrum." A recent report by the Pew Internet and American Life Project found that while online nonHispanic Whites and non-Hispanic Blacks use Twitter at 5% and 13% respectively, 18% of Hispanics
online are Twitter users, a difference that is statistically significant. When it comes to Facebook, it's more
of the same. According to online marketing company BIG Research, Latinos have taken up Facebook
faster than non-Latinos. In all, 54.2% of Hispanics online regularly use Facebook just above non-Latino
blacks at 47.7% and non-Latino whites at 43%. Latinos are also forging ahead when it comes to using
location-based services like Foursquare and the recently unveiled Facebook Places. Source: Fox News
Latino
MOBILE USE AMONG HISPANICS RISES 26%
According to BizReport, Scarborough Research's "Hispanic Multi-Market Study" reveals mobile phone
usage across the entire U.S. Hispanic population is approximately 82%, on a par with that of the general
population (84%). In fact, overall statistics for mobile usage by Hispanics are higher than the general
population's average. Many Hispanics make their smartphone their first 'computer' purchase, due to
affordability, and bypass the home computer which tends to be a more costly purchase. 64% of Hispanics
with a mobile phone use it to text message, compared to 56% of all mobile users, and Hispanics are also
more likely to download or listen to music on a wireless device (22% vs. 15%), play games (19% vs.
15%), and access social network (12% vs. 10%).
ACENTO NEWS
JOE KUTCHERA, AUTHOR, SPEAKER AND SOCIAL MEDIA EXPERT JOINS ACENTO
Acento welcomes Joe Kutchera as our new Director of Digital Services. Kutchera brings to the agency a
wealth of knowledge and expertise on reaching Hispanic and Latin Americans online. He is also the
author of Latino Link: Building brands online with Hispanic communities and content (Paramount Books);
a go-to book for marketing and media executives. Prior to joining Acento, Kutchera spent 9 years at Time
Warner where he built web properties (such as Warner Bros. Online, CNN Money, and CNNExpansion)
and launched the digital ad sales team for Grupo Editorial Expansion in Mexico City. Kutchera is a
frequent speaker and consultant on marketing to Hispanics online in the U.S., Spain, and Mexico. He will
now lead and further develop Acento's interactive capabilities for its various clients. "Acento's teamwork
and client-driven results very much impressed me. Training workshops for the staff led to a conversation
for me to join the company and build our clients' already strong brands online," Kutchera says. "As the
'minorities' in the U.S. become the 'majority,' Acento's digital team will continue to help our clients adapt
their digital marketing efforts to better reflect consumers' cultural preferences."
SUPERVALU'S ALBERTSONS AND JEWEL-OSCO TARGET LATINO MOMS FOR SUPERBOWL
Albertsons and Jewel-Osco supermarkets are Mom's neighborhood headquarters for Super Bowl
festivities, and will be communicating that message to Hispanic Moms via :60 Spanish-language radio
spots created by Acento. Why Mom? Recent A.C. Nielsen data indicates that ratings for Hispanic
Women 18-49 mirrored those of Hispanic Men and Hispanic Adults during the "big game". The data also
showed that ratings were significantly higher for Hispanic women watching Super Bowl verses Prime
Time and even the World Cup! Radio spots will highlight popular items for game parties like chips,
avocados, popular beef cuts for grilling, plus the Chef's Kitchen department where you can pick-up a
bucket of chicken wings for those last minute guests. In addition to radio, an online banner campaign
from Acento's Digital Services Group will also be activated.
ACENTO LAUNCHES POTTERY BARN KIDS' HISPANIC PROGRAM
Acento recently launched William-Sonoma's Pottery Barn Kids Hispanic marketing program during
Holiday 2010 with a direct mail catalogue, Spanish-language website page, SEM and bi-lingual retail
signage and materials. A dedicated 800# with Spanish-speaking call center representatives was also
activated. This initial effort confirmed that e-commerce is the #1 source of Hispanic sales for Pottery Barn
Kids versus catalogue and in-store by about 5:1. Again, validation that Hispanics are indeed buying
online in droves!
REMINDER - THE GLOBAL RETAILING CONFERENCE IS RIGHT AROUND THE CORNER!
The Terry J. Lundgren Center for Retailing at the University of Arizona will bring together top industry
executives at the 15th annual Global Retailing Conference, April 7-8, 2011 at the Loews Ventana Canyon
Resort in Tucson, Arizona. Fifteen of the world's top retail executives (including Acento president/ceo
Roberto Orci who will present "The New American Mainstream - How The Latino Market Continues To
Transform The Retail World") will help marketers accelerate their businesses in this intensely competitive
marketplace with practical and relevant business models and processes. This year's theme, Inspiring
Innovation, will inspire all with leading-edge knowledge and strategies for success! Be sure to sign up for
the Global Golf Tournament on Wednesday morning and experience one of the most photographed golf
holes in the world! Register at: www.GlobalRetailingConference.org
TASTING AWAY IN MARGARITAVILLE
WINTER MARGARITA
Many of our readers have experienced a long, cold winter, and this is the perfect margarita to help thaw
you out. The cranberry lends tartness, while the Creole Shrubb delivers the flavors of nutmeg, cloves and
burnt orange, and the vanilla balances it all out. When you blend the drink, it cuts the sharpness of the
cranberry. ~ Ingredients: 1 1/2 ozs silver tequila, 1 oz pure cranberry juice (not cranberry cocktail), 3/4 oz
lime juice, 1/2 oz Rhum Clement Creole Shrubb, 1/2 oz vanilla simple syrup. (Note: Rhum Clement
Creole Shrubb liqueur is 80 proof Curacao orange liqueur produced and bottled in Martinique, and has
recently become available in the U.S.) ~ Directions: Combine all ingredients and 1 cup of ice in a
blender. Blend until smooth and serve in a margarita glass. Believe us when we say, this margarita is
worth all the effort, including gathering the ingredients! Salud!