In my experience working with Fortune 500 companies, I have found 10 reasons why management teams fail to capture a significant share of Hispanic consumers.
1. There is no company-wide alignment on making the Hispanic market a strategic initiative
Halfhearted efforts result in failure because they lack the rigor and discipline applied to every other aspect of the company’s business. For example, when entering an emerging market for the first time, a company conducts qualitative research to uncover customer insights that leads to innovative new products and services, followed by quantitative research to confirm, clarify and measure results.
This is routine practice when deploying a high impact go-to market strategy in an emerging market, yet many U.S. companies today cannot get their minds around an emerging market within their own borders.
2. Companies fail to allocate a minimum level of resources including budgets, people and time
Making this a “nice to have” budget item won’t work.
3. Companies fail to treat Hispanics as a true emerging market
Many Fortune 500 multinationals have invested wisely in pursuing business in Brazil, Russia, India, and China – markets with large populations, growing economies and consumers starving for western products and services. Yet they ignore the U.S. Hispanic market, which will soon become one of the 10 largest economies in the world.
According to the U.S. Census, Hispanic purchasing power will exceed $1.5 trillion by 2015 – only nine economies in the world are larger. If Hispanic-America were a nation, it would be a member of the G-20. In fact, Hispanic-America's purchasing power per capita (at $20, 400) exceeds that of each of the four BRIC countries – Russia ($15,900), Brazil (10,800), China ($7,600) and India ($3,500).
That is an emerging market worth pursuing. READ MORE