In market research, we often segment any population into distinct areas based on their shopping habits and views. The Hispanic market also requires smart segmentation, but the segmentation strategy is often different from the general market-- and may surprise you.
These Hispanic consumer segments come from and are defined by research done by Culturati Research and Consulting. In this post, we will give an overview of these segments so that you can learn how to best market to them. The marketing data used below comes from famed market research company Nielsen.
This segment makes up 37% of Hispanics. They are defined by their traditionalism. They value their Hispanic culture and have little desire to blend in with American culture. This segment is more likely to speak Spanish over English. Latinistas tend to be first-generation immigrants.
Because of this strict adherence to Hispanic culture, this segment can be the hardest to market to. They will prefer businesses that have predominantly Spanish speaking staff, carry a large variety of Hispanic brands and are either Hispanic owned, or make a strong effort to embrace Hispanic culture. Latinistas are also the most brand loyal of all of the Hispanic segments.
This group of shoppers embraces a mixture of both Hispanic and American cultures. They make up 44% of the Hispanic population. Because attitudes vary amongst those who embrace both cultures, this segment is actually split into two subdivisions: Heritage Keepers and Savvy Blenders.
This is the segment of the bicultural Hispanics that is open to American culture, but places a stronger emphasis on their Hispanic heritage. Like the Latinistas, Heritage Keepers tend to be first-generation immigrants and prefer to speak Spanish. They make up 11% of the Hispanic market.
Although they are less brand loyal than the Latinistas, the Heritage Keepers still prefer to purchase the brands that they know. Similarly, they prefer stores that sell Hispanic products but are more willing than the Latinistas to shop at other stores. Social interaction is a big deal for this segment, and they'll prefer stores that foster environments where they can connect with other shoppers and the staff.
These are the second and third generation immigrants of the bicultural segment. They are far more culturally diverse than the previous segments and are likely to care both about preserving their own culture and blending in with American culture. Savvy Blenders are fluent in both Spanish and English and have no strong preference for either one. This segment makes up 33% of Hispanic shoppers.
This segment is less brand loyal than their Heritage Keeper counterparts and less likely to seek out stores that sell Hispanic products. In addition, they are the segment that is the most likely to shop around a wide variety of retail outlets.
This group makes up 19% of the Hispanic population and cares more about American culture than Hispanic culture. They are predominantly second and third generation immigrants who prefer to speak English. Because of their American-centric culture, Ameri-fans aren't very likely to seek out stores that sell Hispanic products.
This segment is very price-conscious compared to the other segments. They are likely to say that price is more important than brand. This also means that the Ameri-fans are not very brand loyal. Efficiency is very important to this segment of the Hispanic population, so they are likely to shop at large retail outlets.
These insights into the various types of Hispanic shopper should give you some clues as to how to tailor your message to the target demographic. But the key takeaway should be that Hispanic shoppers are not a monolith. There are a wide variety of different values that exist within the Hispanic community and a one sized fits all approach will not work.
To take advantage of our expertise in marketing to the Hispanic population, please contact us today.