When Craig Gaylord opened Fiesta Foods in Pasco years ago, he knew he wanted to reach out to the Hispanic community even though he wasn't sure exactly how.
"It was a leap of faith," he said.
Even bankers and suppliers didn't recognize the opportunities in marketing to Spanish-speaking consumers, said Gaylord, who's not Hispanic. "We had to invest pretty much what we had."
That strategy of tailoring his grocery business to serve Hispanic customers has brought Gaylord rich dividends, helping him to expand into Sunnyside and Yakima. And he plans to open a fourth Fiesta Foods store in Hermiston this summer.
Success is about understanding what Hispanics want and providing quality products at a good price, he said. It's also about being visible in their community and supporting local events, said Gaylord, who also is involved with the Hispanic Academic Achievers Program that provides scholarships to Hispanic students.
"You need to spend the money where you earned it," Gaylord said.
Now he's looking forward to the Latino Business, Consumer & Career Expo on May 31 for yet another opportunity to connect with the community. "We've got a booth and we'll be sponsoring a breakfast for exhibitors."
Last year, about 135 businesses participated in the expo, which attracted 7,000 to 8,000 visitors, said Blanca Torres, whose company ExpoNW is organizing the event.
More businesses are realizing the benefits of paying attention to the needs of Hispanic consumers, said Uriel Iiguez, executive director of the Washington State Commission on Hispanic Affairs. The Hispanic population of the state, particularly in Franklin County, where the Census Bureau has estimated the Hispanic population at over 48 percent, is increasing and targeting Hispanic consumers is good business strategy, he said.
And that's keeping Gilberto Mendoza busy. His marketing consulting company, New America Marketing of Pasco, helps non-Hispanic Tri-City businesses connect with Spanish-speaking consumers. Mendoza helps them develop a marketing plan by offering insights into Hispanic consumer behavior.
Hispanics have considerable spending power and they mostly use cash to shop, Mendoza said. "It's a nice market to have."
But to cultivate those customers you first have to understand the cultural norms most Hispanics relate to, he said.
Sara Nelson Design recently relied on Mendoza's expertise for one of its clients, said Sara Nelson, president of the Kennewick design, branding and marketing company.
She said her client, Fat Boys Fleet Services, wanted to communicate with independent Hispanic truck operators so they would bring their trucks for repair jobs at the Pasco-based business.
Nelson said she knew simply copying an ad campaign originally created in English would not cut it with Spanish-speaking audiences. "It wouldn't take into account cultural differences," she said. So she worked with Mendoza to develop a radio spot and a flier for the target audience.
The commercial didn't make any assumptions or try to be funny, said Kevin Cole, Sara's husband, who also worked on the project. The flier also was simple and direct, he said. It said "We fix trucks and trailers," he said.
"It was a less subtle approach," Nelson said of the content. But it was critical to relate to Hispanics' cultural values, Nelson said.
"Mendoza kept emphasizing, 'Build trust,' " she said.
"We're seeing where the advertising is starting to work a little bit," said Jim Carter, president of Fat Boys. He said the campaign was a valuable learning experience to be sensitive to cultural differences. And having four of the company's 13 employees speak Spanish makes it easier to relate to Hispanic customers and gain their trust, Carter said.
For Hispanics, shopping is a family activity and they have to feel welcome when they enter a store, said Mendoza. For them, it's like going to someone's home, he said.
Any business owner who acknowledges Hispanic customers with a greeting and makes them feel comfortable will be able to win their trust for a long-term business relationship, said Mendoza, who's a former bank official turned consultant.
And the value of that relationship has been recognized by some of the community's largest retailers.
"Hispanics are our fastest growing customer group," said Lee Boman, manager of the JCPenney store at Columbia Center mall. "They happen to like us. And we love them."
Over the years, JCPenney has increased the number of signs in Spanish within the store and hired bilingual employees to help Hispanic customers, Boman said.
The store also has paid close attention to the merchandise Hispanics prefer, he said. For example, jeans and gold jewelry with religious symbols are popular with Hispanics, Boman said. They also tend to prefer yellow gold compared with the white gold preferred by the area's Anglo population, he said.
Hispanics may have less disposable income than other social groups, but what they have they tend to spend on things they consider essentials, said Iiguez of the state Commission on Hispanic Affairs.
That could be groceries, apparel, music, automobiles or cell phones to stay connected with family and relatives, he said. And Hispanics nationwide are increasingly buying computers and other electronics.
Recently, Verizon Wireless began offering a plan that allows customers to call to and from Mexico without long-distance or roaming charges, Iiguez said.
All of this shows businesses are taking greater notice of Hispanics' buying power, which is expected to increase to more than $14 billion by 2010 in Washington state, he said.
Nationwide, Hispanics' economic clout is expected to rise to almost $1.4 trillion by 2013, according to Jeffrey M. Humphreys of the Selig Center for Economic Growth at Terry College of Business at The University of Georgia.
"In 2008, Hispanics accounted for 8.9 percent of all U.S. buying power, up from only 5 percent in 1990," Humphreys wrote in his report, The Multicultural Economy 2008.
Mendoza also will be among those who have a booth at this month's Latino Expo. "I've got to practice what I preach," he said.
Torres, who's also planning a similar expo in Bellevue in October, said the majority of vendors at the event will be non-Hispanics. But there also will be Hispanic businesses that want to expand their consumer base, she said.
One of those is expo participant Isidro Ortiz, who owns three Fiesta Mexican Restaurants in Kennewick and Pasco. He plans to give out free samples of Mexican food to expo visitors. He believes the expo will help him reach new customers and provide an opportunity to learn from other successful businesses.
About 20 booths are available for exhibitors, Torres said. Each costs $500, and those interested can call her at 308-4505 or Gracie Campos at 438-0781.
Source: http://www.tri-cityherald.com/
"It was a leap of faith," he said.
Even bankers and suppliers didn't recognize the opportunities in marketing to Spanish-speaking consumers, said Gaylord, who's not Hispanic. "We had to invest pretty much what we had."
That strategy of tailoring his grocery business to serve Hispanic customers has brought Gaylord rich dividends, helping him to expand into Sunnyside and Yakima. And he plans to open a fourth Fiesta Foods store in Hermiston this summer.
Success is about understanding what Hispanics want and providing quality products at a good price, he said. It's also about being visible in their community and supporting local events, said Gaylord, who also is involved with the Hispanic Academic Achievers Program that provides scholarships to Hispanic students.
"You need to spend the money where you earned it," Gaylord said.
Now he's looking forward to the Latino Business, Consumer & Career Expo on May 31 for yet another opportunity to connect with the community. "We've got a booth and we'll be sponsoring a breakfast for exhibitors."
Last year, about 135 businesses participated in the expo, which attracted 7,000 to 8,000 visitors, said Blanca Torres, whose company ExpoNW is organizing the event.
More businesses are realizing the benefits of paying attention to the needs of Hispanic consumers, said Uriel Iiguez, executive director of the Washington State Commission on Hispanic Affairs. The Hispanic population of the state, particularly in Franklin County, where the Census Bureau has estimated the Hispanic population at over 48 percent, is increasing and targeting Hispanic consumers is good business strategy, he said.
And that's keeping Gilberto Mendoza busy. His marketing consulting company, New America Marketing of Pasco, helps non-Hispanic Tri-City businesses connect with Spanish-speaking consumers. Mendoza helps them develop a marketing plan by offering insights into Hispanic consumer behavior.
Hispanics have considerable spending power and they mostly use cash to shop, Mendoza said. "It's a nice market to have."
But to cultivate those customers you first have to understand the cultural norms most Hispanics relate to, he said.
Sara Nelson Design recently relied on Mendoza's expertise for one of its clients, said Sara Nelson, president of the Kennewick design, branding and marketing company.
She said her client, Fat Boys Fleet Services, wanted to communicate with independent Hispanic truck operators so they would bring their trucks for repair jobs at the Pasco-based business.
Nelson said she knew simply copying an ad campaign originally created in English would not cut it with Spanish-speaking audiences. "It wouldn't take into account cultural differences," she said. So she worked with Mendoza to develop a radio spot and a flier for the target audience.
The commercial didn't make any assumptions or try to be funny, said Kevin Cole, Sara's husband, who also worked on the project. The flier also was simple and direct, he said. It said "We fix trucks and trailers," he said.
"It was a less subtle approach," Nelson said of the content. But it was critical to relate to Hispanics' cultural values, Nelson said.
"Mendoza kept emphasizing, 'Build trust,' " she said.
"We're seeing where the advertising is starting to work a little bit," said Jim Carter, president of Fat Boys. He said the campaign was a valuable learning experience to be sensitive to cultural differences. And having four of the company's 13 employees speak Spanish makes it easier to relate to Hispanic customers and gain their trust, Carter said.
For Hispanics, shopping is a family activity and they have to feel welcome when they enter a store, said Mendoza. For them, it's like going to someone's home, he said.
Any business owner who acknowledges Hispanic customers with a greeting and makes them feel comfortable will be able to win their trust for a long-term business relationship, said Mendoza, who's a former bank official turned consultant.
And the value of that relationship has been recognized by some of the community's largest retailers.
"Hispanics are our fastest growing customer group," said Lee Boman, manager of the JCPenney store at Columbia Center mall. "They happen to like us. And we love them."
Over the years, JCPenney has increased the number of signs in Spanish within the store and hired bilingual employees to help Hispanic customers, Boman said.
The store also has paid close attention to the merchandise Hispanics prefer, he said. For example, jeans and gold jewelry with religious symbols are popular with Hispanics, Boman said. They also tend to prefer yellow gold compared with the white gold preferred by the area's Anglo population, he said.
Hispanics may have less disposable income than other social groups, but what they have they tend to spend on things they consider essentials, said Iiguez of the state Commission on Hispanic Affairs.
That could be groceries, apparel, music, automobiles or cell phones to stay connected with family and relatives, he said. And Hispanics nationwide are increasingly buying computers and other electronics.
Recently, Verizon Wireless began offering a plan that allows customers to call to and from Mexico without long-distance or roaming charges, Iiguez said.
All of this shows businesses are taking greater notice of Hispanics' buying power, which is expected to increase to more than $14 billion by 2010 in Washington state, he said.
Nationwide, Hispanics' economic clout is expected to rise to almost $1.4 trillion by 2013, according to Jeffrey M. Humphreys of the Selig Center for Economic Growth at Terry College of Business at The University of Georgia.
"In 2008, Hispanics accounted for 8.9 percent of all U.S. buying power, up from only 5 percent in 1990," Humphreys wrote in his report, The Multicultural Economy 2008.
Mendoza also will be among those who have a booth at this month's Latino Expo. "I've got to practice what I preach," he said.
Torres, who's also planning a similar expo in Bellevue in October, said the majority of vendors at the event will be non-Hispanics. But there also will be Hispanic businesses that want to expand their consumer base, she said.
One of those is expo participant Isidro Ortiz, who owns three Fiesta Mexican Restaurants in Kennewick and Pasco. He plans to give out free samples of Mexican food to expo visitors. He believes the expo will help him reach new customers and provide an opportunity to learn from other successful businesses.
About 20 booths are available for exhibitors, Torres said. Each costs $500, and those interested can call her at 308-4505 or Gracie Campos at 438-0781.
Source: http://www.tri-cityherald.com/
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