BUILDING BRANDS THAT CROSS CULTURAL BARRIERS: ENTERING THE HISPANC MARKET WITH A GENERAL MARKET BRAND A Master’s Project Presented to The Graduate Faculty of Fresno Pacific University In Partial Fulfillment of the Requirements for the Master of Business Administration: Global Business Degree By Sara Mendez March 21, 2012
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
BUILDING BRANDS THAT CROSS CULTURAL BARRIERS: ENTERING THE HISPANC MARKET WITH A GENERAL MARKET BRAND
A Master’s Project Presented to The Graduate Faculty of Fresno Pacific University
In Partial Fulfillment of the Requirements for the Master of Business Administration: Global Business Degree
By
Sara Mendez
March 21, 2012
ii
Accepted in partial fulfillment of the requirements for the Master of Business Administration: Global Business Degree at Fresno Pacific University.
___________________________________
Committee Chair
___________________________________
Committee Member
___________________________________
Dean, Graduate School of Business
iii
Permission to reproduce this thesis in its entirety must be obtained from the author.
___________________________________
Signature
___________________________________
Date
iv
ACKNOWLEDGEMENTS
I would like to thank the staff of Univision in Bakersfield, California, for
their assistance during this study, as well as everyone who took part in the
studies. I would also like to thank my husband Robert, and my two children,
Aydin and Blake, for all of the love and support they have given me since I began
this long journey. They have helped make this experience a wonderful one. To
my family, I love you with all my heart. To all of the professors throughout the
MBA program, thank you. Your encouragement and continued support was very
much appreciated.
v
I grant Hiebert Library permission to make this thesis available for use by its own patrons, as well as those of the broader community through inter-library loan. This use is understood to be within the limitations of copyright.
___________________________________
Signature
___________________________________
Date
vi
ABSTRACT
Brand value is a quality that companies use to cause consumers to
purchase a product, as well as set the value as to what people are willing to pay
for that product. Brand value is important because it sets the value of the
company and the overall success of the brand. Appealing to consumers' values,
beliefs, cultural relevance, and tastes create this value. Because these values
and tastes differ within cultures, specifically within the Hispanic culture, it has
become increasingly difficult for brands to successfully cross cultures and
maintain value between Caucasians and Hispanics. Brands must reflect a
detailed list of values before they can effectively cross into the Hispanic market.
The research in this study sets out to find what items are in the specific list
that companies must use in order to create a brand image that can cross and
appeal to both cultures simultaneously. The study focuses on three main areas:
how brand value is created, what consumers and Hispanic consumers value, and
how to create and manage brands based on these diverse values from the two
cultures: general market and Hispanic.
This study will be conducted in Bakersfield, California. The primary
research will include feedback from Hispanic women, who will provide responses
to questions on various values in brand decision-making. The conclusions will
determine what factors must be used and considered in order to have a brand
successfully enter the market, using secondary data and a qualitative survey
analysis.
vii
TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................. vii
childhood, and memories of some of their fathers drinking coke with a raw egg in
it, as was common to do in Mexico. (That concept was something that appeared
strange to the Hispanic women from countries of origin other than Mexico). The
feedback given when shown the Pepsi logo was much different. Comments
included Brittney Spears, the Pepsi Musica Party on Telemundo, parties in the
US, and the fact that Pepsi tastes better in the US than coke, because they
cannot use real cane sugar. The last logo shown, Fanta, evoked memories of
drinking in Mexico and in other Latin American countries, in a bag with a straw,
as it is served in those countries, memories of drinking it as a child, and giving it
to
fe
o
m
C
o
w
N
p
s
b
s
p
o their child
eel that dar
The seco
ver the oth
more for one
Coke over th
thers chose
would like C
None of them
arties. All r
Figure 4.
Figure 4.
The fourt
chool of yo
uy?” The a
upport a pr
riority.
0
5
10
15
20
E
dren and co
k soda is fo
ond and thir
ers if prices
e product o
he others b
e Pepsi; the
Coke better,
m chose Fa
espondents
.1 Sale Pre
.1 Data focu
th question
ur choice, w
nswer was
roduct that g
ffect of Sale
ousins. This
or adults an
rd question
s were all e
over the oth
because of h
ey said if th
but in the
anta, but sa
s said they
ferences
us group su
asked “If P
would that
overwhelm
gave back
Buys won sale
Does nbuy whon sale
48
s product is
nd clear or f
ns were abo
equal and if
ers? The M
how it make
hey were in
US, they w
aid they do
would buy
urvey result
Pepsi gave
impact you
mingly unan
to their kid’
whatse
nothatse
seen as a
fruit colored
out which p
f they would
Mexican His
es them fee
Mexico, or
would all pur
periodically
what is on
ts, Decemb
50% of pro
r buying de
nimous, with
’s schools,
child's drin
d soda is fo
roduction t
d be willing
spanic wom
el when the
r in any othe
rchase Pep
y for their c
sale.
ber 2011.
ofits back to
ecision on w
h a yes. Th
as family a
k, as Hispa
or children.
hey would
to pay 10%
men all said
ey drink it. A
er country,
psi over Cok
children at
o the local
which brand
ey would a
and kids are
anics
buy
%
All
they
ke.
d to
all
e a
S
g
h
u
re
A
q
W
fa
F
fi
e
Figure 4.
Figure 4.Source: Dat
The fifth
randparent
alf off prom
nanimous i
eminded of
Automotive
The three
uestion ask
With Toyota
amilies had
Ford, receiv
restone tire
xpensive, h
No0%
.2 Effects o
.2 How muca focus gro
question as
ts, time toge
motion, wou
in that all re
f the good t
e
e comparab
ked which w
, feedback
used forev
ed more ne
es, and pref
high mainte
Ye10
on Sales if B
ch companoup survey
sked, “If Co
ether, and
ld you buy
espondents
imes that C
ble brands
what comes
included: d
ver, Tsunam
egative feed
fer Chevy to
enance, and
es0%
49
Brand Gives
y “good wilresults, De
oke in the fo
kids and gr
that over P
s said they w
Coke is a pa
chosen we
s to mind w
durable, mil
mi, and adv
dback such
o Ford. BM
d shows a s
s Back to L
l” has on pcember 20
ocused on
randkids, pl
Pepsi?” Onc
would buy C
art of.
ere: Toyota,
when shown
leage, low m
vertisement
h as: needs
MW evoked
sign of wea
Local Schoo
urchase de11.
family – sh
lus did a bu
ce again, th
Coke if they
, Ford, and
n logos for e
maintenanc
ts. The seco
improveme
feelings of
alth.
ols
ecisions.
owing
uy one get o
he answer w
y were
BMW. The
each brand
ce, high qua
ond brand,
ent, problem
status,
one
was
e first
d?
ality,
ms,
B
re
c
g
w
in
Figure 4.
rand Perceptio
Figure 4.esults, Dec
The seco
hose Toyot
Figure 4.
Figure 4.roup surve
The third
would you s
nteresting. T
0
10
20
Toyo
P
.3 Brand Pe
ons To
Saf
Re
Va
.3 Automotember 201
ond questio
ta, no one c
.4 Preferen
.4 Automoty results, D
d question a
till buy it ov
The respon
ota Ford BM
Prefer to
erceptions
yota
fe
liable
lue
ive Brand P1.
on asked wh
chose Ford
ces of Own
ive brand HDecember 2
asked, “If th
ver the othe
ndents agre
MW
o own
Prefeown
50
For
Bre
Preferences
hich brand
, and only a
nership – A
Hispanics p2011.
he brand yo
er two brand
eed that if th
er to
d
aks all the tim
s. Source: D
each partic
a few chose
Automotive B
refer to ow
ou chose wa
ds?” The fe
hey were lo
BMW
e Expe
Statu
Data focus
cipant prefe
e BMW.
Brands
n. Source:
as 10% mo
eedback thi
ooking at a
W
ensive
us
group surv
erred. Most
Data focus
ore expensi
s time was
Toyota Cam
vey
s
ve
very
mry
b
d
lu
Pr
Rage
Lath
3 To
fo
B
T
b
h
w
w
v
fa
th
eing 10% m
ownsize to
uxurious Fo
Figure 4.
rice effect
ather downsizet a nicer Ford
arge Ford/Luxuhan Toyota Cam
Series BMW –oyota Camry
Figure 4.ocus group
The fourt
BMW for the
The answers
ecause the
alf said no
The last
were “tough
would that in
ast majority
amily is a p
hey know a
more expen
a Toyota C
ord.
.5 Price Eff
ze Toyota car td
ury car cheapemry
– same price as
.5 Pricing esurvey res
th question
e same pric
s were eve
ey could affo
because it
question as
er” than Fo
nfluence yo
y said they
riority, and
nd with wh
nsive than a
Corolla, to s
fects on Pu
Agree
han 67%
er 0%
s 33%
effect on ausults, Decem
asked, “If
ce as a Toy
nly split. Ha
ord it and w
is still too e
sked, “If To
ord, and had
our decision
would buy
only a few
ich they are
51
a fully loade
say within b
rchase Dec
tomotive pumber 2011.
BMW adve
ota Camry,
alf of the gr
would like th
expensive t
oyota trucks
d more room
n on buying
the Toyota
said they w
e familiar.
ed Ford Fus
budget, than
cisions
urchase de
ertised that
, would that
roup said th
he status of
to fix.
s showed in
m for kids a
a Toyota t
a that had ro
would stick
sion, they w
n buy the la
Disagree
33%
0%
67%
ecisions. So
you could b
t influence
hey would b
f driving on
n commerci
and family s
truck over a
oom for the
to Ford bec
would rathe
arger and m
ource: Data
buy a 3 Ser
your decisi
buy the BM
ne. The othe
ials how the
space insid
a Ford?” Th
e family, as
cause it is w
er
more
ries
on?”
W
er
ey
de,
he
what
Ef
Toin
Fo
S
B
C
b
a
st
a
a
o
m
N
Figure 4.
ffect on AD me
oyota Truck – nside for family
ord Truck ‐
Figure 4.Source: Dat
Beer
The three
Corona. The
rand logo?
nd easy ac
tared blank
greed on M
nd billboard
r Latin Ame
The seco
majority said
None of the
.6 Effects o
essage
more room y but still a tru
.6 Effects oa focus gro
e brands ch
e first quest
” With Budw
ccess as it i
kly, and a fe
Mexico, the
ds, and “I li
erican coun
ond questio
d Corona, b
responden
of Advertisin
Agree
uck 89%
11%
on automotioup survey
hosen for c
tion asked w
weiser, res
s served ev
ew said tha
beach, lime
ke it in the
ntries, then
on asked wh
but it had to
nts said Coo
52
ng Message
ve purchasresults, De
omparison
was, “What
pondents s
verywhere,
t it is a “cou
es, Cinco d
US but don
I drink the
hich brand
o have a lim
ors.
e
ses from adcember 20
were Budw
t came to m
said college
and cheap
untry” brand
de Mayo, fa
n’t drink it w
local beers
they prefer
me in it, and
Disagree
11%
89%
dvertisemen11.
weiser, Coo
mind when s
e parties, Am
p. With Coo
d. With Cor
amily events
when I’m in
s there that
rred to buy/
d a few said
nt message
ors, and
shown each
merican bra
ors, they all
rona, they a
s, ads on T
other Hispa
are better.”
/drink. The
d Budweise
e.
h
and,
all
V
anic
”
vast
r.
s
th
w
h
th
C
w
re
d
tr
th
Figure 4.
Figure 4.urvey resul
The third
han the oth
whatever the
ad to buy w
hey may no
The fourt
Cup, and wa
would that in
espondent
id not have
ried it at the
he fair.
0
10
20
Budw
.7 Brand Hi
.7 Brand oflts, Decemb
d question a
er two, wou
e price for t
what they k
ot like.
th question
as the beer
nfluence yo
gave the ex
e her prefer
e fair, liked
weiser Coors
Prefe
ispanics Pr
f Beer Hispber 2011.
asked, “If th
uld you still
the brand th
new they lik
asked, “If C
r that you al
our decision
xample of a
red brand c
it, and pick
Corona
er to Dri
53
refer to Drin
panics prefe
he brand yo
buy it?” All
hey liked, b
ked and did
Coors beca
lways saw a
n?” The ans
attending th
choices, so
ed some up
ink
Prefer to
nk
er to drink.
ou chose wa
l responden
because wh
d not want t
ame the off
at parties, f
swer was ye
he local Ker
she had to
p at the sto
o Drink
Source: Da
as 10% mo
nts said the
hen it came
to risk buyin
ficial beer o
fairs, wedd
es for every
rn County F
o drink wha
ore on the w
ata focus br
ore expensi
ey would pa
e to beer, th
ng somethi
of the World
ings, etc.,
yone. One
Fair, where
t they had.
way home f
roup
ve
ay
ey
ng
d
they
She
rom
p2
w
th
w
a
th
w
Figure 4.
Figure 4.referred bra011.
The last
working con
he other two
were no. Ma
bout it muc
hey only rea
would not su
Advertisin
Friend
Event
H
.8 How Con
.8 How mosand of beer
question as
ditions and
o brands, w
any agreed
ch or see it,
act if it affec
upport a co
0% 50
ng
ds
ts
ow wereto t
nsumers W
st Hispanicr. Source: D
sked, “If Co
d treating em
would that im
that even t
so they do
cts them lo
mpany that
0% 100%
e you intthe bran
54
Were Introdu
s in the USData focus
orona got in
mployees b
mpact your
though thing
o not feel lik
cally. Some
t treated em
troducend?
How wereintroducebrand?
uced to Bra
S were introgroup surv
n trouble for
badly, but th
r decision?”
gs like that
ke it really i
e of the res
mployees in
d
e youed to the
nds
oduced to thvey results,
r having po
hey were $3
” The major
t happen, th
mpacts the
spondents s
n that way.
heir currentDecember
oor employe
3 cheaper t
rity of answ
hey do not h
em. They sa
said yes, th
ee
than
wers
hear
aid
ey
S
C
a
T
th
w
p
c
Figure 4.
Figure 4.Source: Dat
Cheese
Three ch
major ingr
Tillamook, a
hey were sh
was a health
erceptions,
heese excl
0
5
10
15
20
Effcon
.9 Labor Co
.9 Effects oa focus gro
heese brand
edient in H
and El Mexi
hown each
hy cheese t
, every resp
usively in th
fect on poor wnditions on decstill buy a bra
onditions Im
of purchasinoup study s
ds were sel
ispanic dish
cano. The f
brands log
that was all
pondent in t
heir homes
workingcision toand
55
mpact on Pu
ng decisionsurvey resul
lected for th
hes. The th
first questio
o. With Kra
natural, an
the survey
s, which ans
No
Yes
urchase De
s from comlts, Decemb
he respond
hree brands
on asked w
aft they all t
nd had no o
preferred to
swered que
ecisions
mpanies labber 2011.
ents to view
s chosen we
what came t
talked abou
oil’s. Becau
o buy and u
estion numb
or condition
w, as chees
ere: Kraft,
o mind whe
ut the fact th
use of these
use Kraft
ber two.
ns.
se is
en
hat it
e
p
e
y
tw
w
c
p
th
lik
Figure 4.
Figure 4.
urchasing d
Question
xpensive th
es, becaus
Question
wo, would t
was an unfa
The last
heese taste
rice as the
his idea, an
ked it, espe
Health
Co
Tast
.10 Reason
.10 Determ
decision. S
n number th
han the oth
e it is healt
n number fo
hat make y
amiliar bran
question as
ed better an
other two,
nd said they
ecially if it w
0%
hy
ost
te
Decisipu
ns Hispanic
inant Hispa
ource: Data
hree asked,
er two, wou
thier for the
our asked, “
you purchas
d and Kraft
sked, “If Til
nd had less
would you
y would try t
were health
50% 100
ion usedurchase
56
cs Purchase
anics in the
a focus gro
, “If the bran
uld you still
eir kids.
“If Tillamoo
se it?” Agai
t was health
lamook adv
s fat and wa
try it over K
the brand a
ier than Kra
0%
d to
Decision usedpurchase
e Cheese B
US used to
up survey r
nd you cho
purchase i
k was $.75
n, respond
hier.
vertised tha
as better fo
Kraft?” Res
as an option
aft.
d to
Brands
o make che
results, Dec
ose was 10%
it?” All resp
5 cheaper th
ents said n
at they had
r kids, but w
pondents w
n to see if t
eese-
cember 201
% more
pondents sa
han the oth
no, because
proof that t
was the sam
were open t
heir childre
11.
aid
er
e it
their
me
to
en
M
s
c
re
fo
J
th
R
m
b
o
S
th
Make Up
The fourt
elected we
ame to min
esponses in
oundations/
ennifer Lop
he most bea
Revlon, rem
make up, an
etween the
ver the oth
Figure 4.
Figure 4.Source: Dat
The third
han the oth
0%
50%
100%
C
th industry
re Cover G
nd when ea
ncluded low
/compacts.
pez, endors
autiful wom
minded them
nd was Hisp
ese three br
er two, ans
.11 Brands
.11 Brand Ha focus gro
d question w
er two, wou
Covergirl L'Or
Pre
used in the
Girl, L’Oreal,
ch logo wa
w budget, e
The secon
sements fro
men, all fam
m of Halle B
panic appea
rands only,
swering que
of Make U
Hispanics inoup survey
was, “If the
uld you still
real Revlon
fer to us
57
e analysis w
, and Revlo
s shown. W
xpensive, t
nd brand, L’
om celebritie
ous, using
Berry, nail p
aling. From
all respond
estion numb
p Hispanics
n the US prresults, De
brand you
purchase i
se
Prefer t
was make u
on. The first
With the firs
teenagers u
’Oreal, mad
es, and all a
their produ
polish, reds
m this feedb
dents said t
ber two.
s Prefer to
refer to usecember 20
chose was
it?” The res
to use
up. The thre
t question a
t brand, Co
use, and
de respond
agreed tha
ucts. The la
and bright
ack, and ch
they would
Use
e for make u11.
s 10% more
spondents p
ee brands
asked what
over Girl,
ents think o
t this brand
ast brand,
colors, hea
hoosing
use L’Orea
up products
e expensive
provided
t
of
d had
avy
al
s.
e
fe
im
o
a
m
a
o
S
h
T
h
w
th
d
Deon
Co
Co
Fri
Ce
Im
eedback tha
mportant to
rder to be b
nd who the
make up, no
nd was mo
ther option
The fourt
Salma Haye
ad ever use
They all pau
ow hard it i
would possib
hey liked it,
Figure 4.
Figure 4.ecisions. S
ecision makingne)
ost
olors
iends
lebrity endors
mage
at make up
Hispanic w
beautiful. B
ey want to lo
ot included
ore expensiv
s.
th question
ek, and Nine
ed and noth
used for a m
is to switch
bly buy one
they would
.12 What D
.12 FactorsSource: Data
g (pick more th
sement
p is used to
women, me
uying make
ook like, no
in the surve
ve than all
within this
el Conde a
hing made
moment bef
from a bra
e product fr
d try more.
Determines
s Hispanics a focus gro
han Agree
0%
22%
0%
100%
83%
58
enhance b
aning they
e up is base
ot simply pr
ey, because
three in the
industry su
ll used Rev
them feel m
fore saying,
and once the
rom the bra
the Brand H
in the US uoup survey
eauty, and
would pay
ed on color
rice. Many a
e the brand
e survey, bu
urvey asked
vlon and sa
more beaut
, maybe or
ey have trie
and to see h
Hispanics B
use to makresults, De
7
0
outer beau
what they
r selection,
agreed they
d had these
ut cheaper
d, “If Sophia
id it was th
tiful, would
possibly. T
ed it and lik
how that we
Buy for Mak
ke make-up cember 20
Disagree
100%
78%
100%
0%
17%
uty is very
need to in
eye shado
y use Mac
e color optio
than many
a Vergara,
e best line
you try it?”
They mentio
ked it. But th
ent, and the
ke Up
purchase 11.
ws,
ons
y
they
oned
hey
en if
c
w
a
th
th
th
g
B
e
L
th
o
lo
The last
ame out tha
was popular
gainst the b
hat. A coup
heir children
he animals
Figure 4.
Figure 4.roup surve
Banking
The final
specially as
atin Americ
he US amo
ver the pas
ocal or had
E
question as
at they wer
r and cheap
brand?” Th
le of the wo
n to the circ
are treated
.13 Effects
.13 Effect oy results, D
subject ma
s it pertaine
can and His
ng Hispanic
st five years
branches i
Effect of negative
sked, “If L’O
re brutally k
per than oth
e responde
omen broug
cus anymor
d.
of PR on S
of negative December 2
atter chose
ed to the Hi
spanic coun
cs, and has
s or so. For
n Kern Cou
No100
Yes0%
PR on current braproduct ‐ wou
59
Oreal was m
killing the an
her brands,
ents said th
ght up the f
re because
Sales
PR on purc2011.
n was bank
ispanic mar
ntry of origi
s become s
r this study,
unty, Baker
o%
and? If animals weuld you buy?
made from
nimals to m
would that
ey would n
fact that the
they have
chase decis
king. This w
rket becaus
n. Trust in
slowly a trus
, the three i
rsfield, and
ere kill to create
parts of an
make the ma
t impact you
not support
ey would no
seen on th
sions. Sour
was a difficu
se of histor
banking is v
sted source
institutions
included B
animal, an
ake up, but
ur decision
a business
ot even take
he news how
rce: Data fo
ult subject,
ries in each
very limited
e for finance
chosen we
ank of
nd it
t it
s like
e
w
ocus
d in
es
ere
60
America, Rabobank, and Kern Schools Credit Union. The first question asked
respondents what they thought when they saw each brand's logo. For Bank of
America there were many responses given, including mortgage, recognized,
easy access, send money to Mexico and other countries easily, expensive fees,
best bank, trusted along with Wells Fargo as the best banks in the US, family
bank, and long lines. When Rabobank came up and the logo was shown, there
were blank looks on faces and question marks. Rabobank owns the local arena
in Bakersfield where all major concerts are held and the local hockey team plays;
most of the feedback given was about the arena. A few respondents even asked,
“They are a bank?” What is interesting about this response is that Rabobank has
many locations in the county, and stated in the beginning of 2011 that it would be
focusing on this market. With Kern Schools Credit Union, feedback was personal
banking, cheaper, higher interest on money in the bank, lower interest for loans,
and community oriented, as they have been seen to sponsor local events.
The second question asked with which one of the three they would prefer to
bank. There was a 50/50 split between Bank of America and the Credit Union.
They ones who selected the credit union said it was because it was cheaper, and
the people who chose Bank of America said it was more trusted because it was
bigger, and all of their loans, even for their homes, were with that bank.
S
c
s
u
re
re
n
c
th
e
p
a
Figure 4.
Figure 4.Source: Dat
The third
hecking ac
aid they wo
The fourt
sing the ex
eferring a fr
esponse the
ot the one
hecking, th
hem want to
Question
ach child u
lus each ch
n account t
Bof
Rabo Ban
KSFC
.14 Kern Co
.14 Preferrea focus gro
d question a
count, wou
ould stay wh
th question
xample: “If R
riend, would
e researche
time only g
e cash bac
o switch ba
n five asked
nder 18 ye
hild got a $5
there over a
0%
fA
nk
CU
Ban
ounty Bank
ed banking oup survey
asked, “If B
ld that mak
here they a
asked wha
Rabobank g
d that make
er would ha
ift that mak
ck on a cont
anks.
d, “If Bank o
ars of age
50 savings
anywhere e
50% 100
k utilize
61
k Preferred
in Kern Coresults, De
ank of Ame
ke you not w
are.
at could cau
gave you $2
e you want
ave imagine
kes them wa
tinued basi
of America
if the paren
bond, wou
else?” The a
0%
d
Bank utili
by Hispani
ounty, Ca. bcember 20
erica charge
want to ban
use them to
20 for signi
to sign up?
ed. The res
ant to move
s, or contin
gave a free
nts signed u
ld that mak
answer to t
ized
cs
by Hispanic11.
ed $10 a m
nk there?” A
o switch ba
ing up, and
?” This did n
spondents a
e, but it is t
nued incent
e checking
up for an ac
ke you want
this questio
c population
month to hav
All responde
nking facilit
d $20 for
not receive
agreed that
he free
tives that m
account for
ccount there
t to sign up
on was
n.
ve a
ents
ty by
e the
t it is
make
r
e,
p for
u
o
g
a
tr
st
nanimous,
ffering a pr
Figure 4.
Figure 4.roup surve
Because
dditional fiv
rusted bank
tarting to, b
Would a new kids w
as they all
romotion lik
.15 Effects
.15 Savingsy results, D
e the bankin
ve question
ks. The ans
but their par
Yes100%
you move from ybank offered savi
with the move? (Evbank)
agreed this
ke this.
of Offering
s bond offeDecember 2
ng industry
ns were ask
swer was th
rents and g
%
our existing bank ngs bonds for youven with unknown)
62
s would ent
Savings B
r on bankin2011.
is much mo
ked on this s
hat as a cult
grandparent
No0%
if ur n
tice them to
onds
ng decisions
ore comple
subject. Qu
ture they fe
ts, the olde
o move to a
s. Source:
ex to Hispan
uestion six
elt like they
er generatio
any institutio
Data focus
nics, an
asked if the
are just
ons still do n
on
ey
not.
Re
Fr
Lo
H
Lo
Sa
Fr
fo
c
m
o
c
Figure 4.
eason for choo
ree Checking
ow loan rates
igh saving rate
ocations
ave money
ree gift/refer a
Figure 4.ocus group
Question
redit over c
more accultu
Question
nline banki
omfortable
.16 Reason
osing bank (ca
es
a friend
.16 Primarysurvey res
n seven ask
cash. This is
urated were
n eight aske
ng. They a
putting the
ns for Choo
n choose more
y reasons fosults, Decem
ked if they u
s still a stra
e using the
ed if they us
ll agreed th
eir personal
63
osing a Loca
e than one)
or choosingmber 2011.
used debit c
ange conce
debit card
sed online b
his seemed
information
al Bank
Agree Disag
100% 0%
22% 78%
11% 89%
11% 89%
100%0%
0%
100%
g banking c
cards over
pt to many
more often
banking. Ag
too untrust
n online.
gree
%
company. S
cash. None
, but it was
n.
gain, none
tworthy and
Source: Data
e of them u
noted that
of them us
d they were
a
use
the
ed
e not
D
o
o
th
a
a
fo
a
fo
th
Figure 4.
Figure 4.December 2
Question
r if they had
rigin other
hose from M
ccounts, on
ccounts. Th
or personal
The last
nd if they u
or the most
he same ba
Trust Ban
Used decards mo
Online bankused
.17 Current
.17 Service2011.
n nine aske
d many and
than Mexic
Mexico said
ne for the w
he family ac
spending a
question as
used differe
part, they a
ank as wher
0%
nks
bitore…
ing
Bank Se
t Banking S
es used. So
d if their ho
d separate
co, said they
d they had o
wife and one
ccount was
and savings
sked if they
nt banks fo
all had limit
re their che
50% 100
ervices U
64
Services Us
ource: Data
ousehold ha
accounts. T
y had one a
one family a
e for the hu
s the one bi
s.
y used diffe
or those thin
ted number
ecking was.
0%
Used
Bank Services U
sed
focus grou
ad one acco
The Hispan
account and
account, an
usband as s
ills came ou
rent accou
ngs (like ho
rs of accou
. Most hom
Used
up survey re
ount as a s
nics from co
d shared th
nd then two
separate sp
ut of, and th
nts for diffe
ome loans,
nts, most o
e loans we
esults,
shared acco
ountries of
hat account
o separate
pending
he others w
erent things
car loans, e
of which we
re through
ount
t, but
were
s,
etc.)
ere at
65
Bank of America, and most auto loans were through the credit union. Both banks
chosen for each type of loan was due to interest rate incentives.
The findings from the banking industry were of most interest and had the
most complex answers from respondents. Trust, values, family, experiences,
country of origin history, and family hierarchy all play a large role in how many
Hispanics determine which bank to choose.
Conclusions
From the soft drink category, there were a few values that played a role in
how the brand was selected for purchase. Many shared that family values had
much to do with their decision, from childhood memories, to family gatherings.
The holidays, Christmas memories specifically, resulting in a focus on religion,
also played a role. From this analysis, it is clear that family values should always
be considered in the image a product will be portraying as part of its brand
image. What Hispanic family values will be portrayed in the brand image through
advertising, messaging, and communications?
Within the automotive category, there were fewer values that played a role in
decision-making, and it was noted that this decision was much more widely
based on functional facts. In this category, Hispanic women were found to place
higher value on cost and quality than anything else. With regard to cost, this
includes financing, interest rates, and cost to fix the vehicle or maintenance
costs. Much of the reasoning behind placing value on cost and quality comes
from experiences in their past with parents who kept vehicles for much longer
than people in the US, causing a much higher need for quality and reliability. The
66
cost component also comes from past experiences with family, whereas vehicles
were typically paid for in full and in cash, without financing. The takeaway for
companies is to take into consideration what Hispanics will use from past
experiences in their country of origin when viewing and experiencing this brand.
What can be communicated to overcome any of the potential concerns or values
within those concerns?
The beer industry emphasized the importance of culture, gatherings, music,
and emotion that plays a role in how Hispanics determine what to buy or drink for
gatherings, parties, or for their homes. The number one way that Hispanics are
exposed to new beer is through events. Hispanics typically attend more events
than Anglos, they stay longer, and according to local distributer information, drink
more beer at events and attend them with more friends and family than non-
Hispanics. The values used to determine brand purchase are all related to
cultural values and emotional connections. When Hispanics drink, they like to
spend time with family and friends and reminiscence about the past. They are
very emotional as a culture, and when it comes to some purchase decisions,
these elements play a role. Companies must ask how they can form an
emotional connection with the Hispanic consumer and how, using elements from
their culture, this can be accomplished in the messaging of the brand.
In the cheese industry, it was very clear that health and family were the two
key values in determining what kinds of food will be purchased, including what
kind of cheese. One hundred percent of respondents said they purchased Kraft
because it had no oil in it and was all natural and healthy for children. All
67
respondents noted that they always buy the healthiest option for their children as
Hispanics, historically, have some of the worst known health issues. They have
become a very health conscious consumer group. Businesses must include how
their product and brand positively impacts the health and well being for Hispanics
and their families, specifically elders and children, the two most coveted age
groups within the Hispanic market. Why is the brand good for Hispanic
consumers, what does the brand do for them or prevent them from?
The make up category spoke to Hispanic women and their personal values.
The values here were overwhelmingly unanimous about image. Hispanics care
very much about image and the perception of themselves in the communities in
which they are a part. Hispanics, being group oriented and family oriented,
rather than an individualistic culture, care about fitting in, looking good, and being
respected. This value of image is the result of why Hispanic women place such
high regard for the make up they use and the way they dress. This value also
explains why Hispanics put such trust in endorsements and hold what celebrities
say in high regard. With make up, specifically, Hispanic women are likely to use
what it appears other beautiful women use. Fitting it matters, and being beautiful
and accepted is very important. Companies should always consider how their
brand is helping the self-image of Hispanics. How does the brand make
Hispanics look or feel better about whom they are?
The banking industry is a complex subject with convoluted issues. Ten
years ago, banking for Hispanics was almost nonexistent as trust in financial
institutions was low. This came from past experiences in their countries of origin.
68
Previously, banks had gone bankrupt and taken the money people had put in
them and disappeared. Banks in other countries were never or rarely insured, so
there was little to no trust placed in them. Cash was the means for paying for
things, even homes and vehicles. Financing was never an option, as banks were
not reliable or experienced enough to secure them. Savings, interest, online
banking, debit cards, credit cards, and ATMs are not common terms for many
Hispanics, even today, though many third and younger generations are
becoming more familiar with these options. The more acculturated Hispanics are
open to these features and banking, but still have a learning process to go
through. The number one way that Hispanics end up banking at one facility over
another is because their parents go or went there. In this survey, all 18 women
currently bank where their parents do or did when they first opened their
accounts. The answers provided to the banking questions have given companies
two important values to consider when branding to the Hispanic market: always
consider family input in the decision to purchase the brand and how experiences
from their country of origin will impact these decisions. Companies must ask what
influence will other people have on the Hispanic consumers' decisions? Meaning,
will the mother, father, or anyone else have a say in this decision? This will help
determine if perhaps the brand will need to also speak to this demographic.
Lastly, like the automotive subject, how will the past experiences of the Hispanic
market influence how they feel about the brand, and how can the company
position the brand in such a way to overcome any of these potential issues?
69
As a result of the six industries surveyed, there are many important values
that have come forward. There are five primary questions that companies should
ask before creating a brand that enters the Hispanic market:
1. What Hispanic family values will be portrayed in the brand?
2. What experiences from Hispanics' past or country of origin will play
a role in developing a brand image?
3. What elements within the Hispanic culture will be used to develop
the brand's emotional connection with the consumer?
4. What does the brand do for the Hispanic consumer, or what does it
prevent for them? (Regarding health or impact on children, family or
elders). How does the brand help Hispanics show a better image of
who they are or who they would like to become?
5. Who are the likely influencers for views of the industry’s brand?
How does the brand appeal to the various decision makers within
the Hispanic market?
The tool kit listed above will provide a solid foundation for developing a brand,
which has already been established within the general market to cross over into
the Hispanic market. The brand will become a culturally relevant, successful,
bicultural brand that has created one brand name, logo, and recognized image,
with a different emotional connection from one culture to the other.
70
REFERENCES
Ailawadi, K. L., Neslin, S. A., & Gedenk, K. (2001). Pursuing the value-conscious consumer: Store brands versus national brand promotions. Journal of Marketing, 65(1), 71-89.
Bahadir, S., Bharadwaj, S., & Srivastava, R. (2008). Financial value of brands in
mergers and acquisitions: Is value in the eye of the beholder? Journal of Marketing, 72(6), 49-64. doi:10.1509/jmkg.72.6.49
Brown, Millward, Univision Inisghts (2011). Univision study reinforces deep
emotional connection bilingual Hispanics have with language and culture. New York, NY: Univision Insights.
Cobb-Walgren, C. J., Ruble, C. A., & Donthu, N. (1995). Brand equity, brand
preference, and purchase intent. Journal of Advertising, 24(3), 25-40. Crimmins, J. C. (2000). Better measurement and management of brand value.
Journal of Advertising Research, 40(6), 136-144. Fischer, M., Völckner, F., & Sattler, H. (2010). How important are brands? A
cross-category, cross-country study. Journal of Marketing Research (JMR), 47(5), 823-839. doi:10.1509/jmkr.47.5.823
Gobe, M. (2009). Emotional branding. New York, NY: Allworth. Goldfarb, A., Lu, Q., & Moorthy, S. (2009). Measuring brand value in an
equilibrium Framework. Marketing Science, 28(1), 69-86. Grover, R. (2009, April 9). US marketers say Hola! to Hispanic consumers.
Business Week. Keller, E. B. (1994). How emerging trends will shape the marketplace (Vol. 2).
Journal of Advertising Research, 34(6), 70. Keller, K., & Lehmann, D. R. (2003). How do brands create value? Marketing
Management, 12(3), 26-31 Lindstrom, M. (2010). Buyology truth and lies about why we buy. New York, NY:
Random House Lucas, L., & Aguilar, J. (2009). Goya is big, but not great (yet). Retrieved from
Agency website, http://www.prophet .com Madruga, M. (2003, April 7). Hispanics’ brand loyalty is markets’ dream. Miami
Herald, p. A1.
71
Sundaram, D. S., & Webster, C. (1999). The role of brand familiarity on the
impact of word-of-mouth communication on brand evaluations. Advances in Consumer Research, 26(1), 664-670.
Temporal, P. (2010). Advanced brand management. Singapore: John Wiley &
Sons. VanAuken, B. (2003). Brand aid. New York, NY: AMACOM
Valdes, I.M. (2000). Marketing to American Latinos. New York, NY: Paramount
Market Yankelovich, (2010). Research data design, Hispanic Monitor. Yankelovich
Research. Young, A. (2010). Brand media strategy. New York, NY: St. Martins Press. Youn-Kyung, K., & Jikyeong, K. (2001). The effects of ethnicity and product on
purchase decision making. Journal of Advertising Research, 41(2), 39-48.
72
APPENDICES
Appendix A - Survey
Survey – October 2011 Brand Values in the Hispanic Market: A Research Study Brands to be compared: Coke Pepsi Fanta Budweiser Coors Corona Toyota Ford BMW Kraft Tillamook El Mexicano Cover Girl L’Oreal Revlon Bank of America Rabobank Kern Schools Credit Union Soft Drinks/Soda 1. What comes to mind when you see the logos for: Coke Pepsi Fanta 2. Of the three brands above, which do you prefer to buy? Why? 3. If the brand you chose were 10% more expensive than the other two, would you still buy it? If it were 15% more expensive would you still buy it over the other two? 4. If Pepsi gave 50% of profits back to the local school of your choice, would that impact your decision on which brand to buy? 5. If Coke focused on family - grandparents, time together with kids and grandkids, and did a buy one get one half off would that influence your decision?
73
Automobiles 1. What comes to mind when you see the logos for: Toyota Ford BMW 2. Of the three brands above, which do you prefer to buy? Why? 3. If the brand you chose was 10% more expensive would you still buy it over the other two? 4. If BMW advertised that you could buy a 3 series for the same price as a Toyota Camry, would that influence your decision? 5. If Toyota Trucks showed in commercials how they were “tougher” than Ford, and had more room, for kids, and family space inside, would that influence your decision on buying a Toyota truck over a Ford?
74
Beer 1. What comes to mind when you see the logos for: Budweiser Coors Corona 2. Of the three listed above, which do you prefer to buy? Why? 3. If the brand you chose was 10% more expensive than the other two would you still purchase it? 4. If Corona became the official beer of the World Cup, and was the beer that you always saw at parties (weddings, babies being born, all celebrations) would that influence your decision? 5. If Coors got in trouble for having poor employee working conditions and treating employees badly, but they were $3 cheaper than the other two brands, would that impact your decision?
75
Cheese 1. What comes to mind when you see the logos for: Kraft Tillamook El Mexicano 2. Of the three listed above, which do you prefer to buy? Why? 3. If the brand you chose was 10% more expensive than the other two would you still purchase it? 4. If Tillamook was cheaper than the other two, by $.75 would that make you purchase it over the others? 5. If Kraft advertised that it had ads out that showed proof that their cheese tasted better, and had less fat and bad ingredients for kids, but was the same price as the other two, would that make you want to buy Kraft?
76
Make-Up 1. What comes to mind when you see the logos for: Cover Girl L’Oreal Revlon 2. Of the three listed above which do you prefer to buy? Why? 3. If the brand you chose was 10% more expensive than the other two would you still purchase it? 4. If Sophia Vergara, Salma Hayek, and Ninel Conde came out with ads for Revlon saying it was the best line of product they had ever used and nothing made them feel more beautiful, would that impact your decision on which production to buy? 5. If L’Oreal was made from parts of an animal, and it came out that they were brutally killing the animals to make the make-up, but it was popular and cheaper than other brands, would that impact your decision against L’Oreal?
77
Banking 1. What comes to mind when you see the logos for: Bank of America Rabobank Kern School Credit Union 2. Of the three, which would you prefer to bank with? Why? 3. If Bank of America charged $10 a month to have checking there, would that make you not want to bank there? 4. If Rabobank gave you $20 for signing up, and $20 for referring a friend, would that make you want to go sign up at that bank and refer a friend? 5. If Kern Schools Credit Union was giving a free checking account for each child under 18 years of age, if the parents signed up for a checking account, plus they gave each child a $50 savings bond, would that make you want to sign up for an account there, over the other two? Do you trust banks? Do you use Debit Cards more than Cash? Do you use online banking? Do you use more than one bank (for checking, savings, loans)? Does your household share one account? Do you use different accounts for different things (i.e. Checking, savings, investing, etc.) or just one or two accounts?