Brand-Building Cultural Insights for Successful Hispanic Marketing

Hispanic marketing is a targeted approach that customizes advertising and promotional strategies to efficiently connect and engage with the Hispanic or Latino consumer demographic.

Reading Time: 15 minutes

January 11, 2024
Victor Paredes – Executive Director of Multicultural Strategy

At 67 million people, the Hispanic population is responsible for 75% of population growth in America in the last two years, according to research by Collage Group. If the US Hispanic market were a nation, its $2.1 trillion dollar contribution to the economy would make it the 5th largest economy in the world. As such, their share of the consumer market has more than doubled since 1990. Therefore winning the hearts, minds, and dollars of Hispanic consumers is mission critical for the growth of brands in the U.S. Brands must develop culturally fluent marketing strategies and communications that reach, resonate, and convert Hispanic consumers.

Collage Group is dedicated to empowering brands in this endeavor. With this in mind, this article equips you with valuable and actionable insights to strengthen your connection with Hispanic consumers through your marketing initiatives. Drawing from Collage Group’s latest report, ‘The Top Brands for Hispanic Consumers: Insights from CultureRate,’ standout performers that successfully capture the Hispanic audience are identified.

By delving into the success stories of two top brands, this article offers key insights and strategies to support you in replicating this success.

But that’s not all – Collage Group’s revolutionary fluen.ci model is also presented as an essential tool that will guide your brand in aligning with the Hispanic consumer group, as well as other diverse demographics that constitute multicultural America.

With Collage Group, you have the means to not only understand the pulse of Hispanic consumers but also ignite powerful connections and drive brand growth. Get ready to unlock a world of possibilities and win the hearts of this vibrant, influential demographic.

    • How Do We Measure Cultural Fluency at Collage Group? Apply the Brand Cultural Fluency Quotient (B-CFQ) Metric
    • Create Marketing Campaigns That Utilize the Halo Effect
    • Top Brands for Hispanic Consumers: Discover How to Craft an Effective Hispanic Marketing Campaign
    • Six-Step Summary Guide: Utilize Key Insights to Drive Growth in the Hispanic Consumer Market
    • Transform Your Brand Strategy With Collage Group’s fluen.ci and Achieve Cultural Fluency

Connect With the Hispanic Community: What Is Hispanic Marketing?

Hispanic marketing is a specialized approach that tailors advertising and promotional strategies to effectively reach and engage the Hispanic or Latino consumer demographic. Hispanic marketing requires cultural fluency in brands to ensure that marketing efforts are authentic. 

What Is Cultural Fluency?

The success of Hispanic marketing relies on a brand’s cultural fluency. Cultural fluency refers to a brand’s ability to effectively and authentically engage with and appeal to consumers from diverse cultural backgrounds. Brands must leverage cultural intelligence to strategically redefine conventional norms, placing multicultural and diverse segments at the core of their operations. These brands leverage data and analytics to decipher and navigate cultural complexity and nuance.

Culturally fluent brands can understand the values, beliefs, traditions, and preferences of different cultural groups. These brands then use that knowledge to create effective advertisements and marketing campaigns.

Culturally fluent brands enjoy an elevated brand reputation, nurture customer loyalty, attain remarkable success in multicultural markets, and realize increased returns on investment from their marketing efforts. And these advantages become even more pronounced when marketing for the American Hispanic consumer group.

Indeed, the Hispanic community constitutes 19% of the U.S. population, wielding a substantial purchasing power of $1.9 trillion (as of 2020). This figure has surged by 87% from 2010 to 2020. Consequently, the Hispanic demographic emerges as a prominent consumer group in America, demanding the focused attention of every brand.

Recognize the Hispanic Community as a Diverse Consumer Segment

Collage Group’s American Community Survey highlights the diversity of the Hispanic consumer segment. That is, within this segment: 

    • 16% identify as White.
    • 1% identify as Black.
    • 2% identify as American Indians and Alaska Natives.
    • 1% identify as Asian.
    • 35% identify as some other race.
    • 44% identify as two or more races.

Plus, Hispanics also show various degrees of acculturation, with three primary categories:

    1. Acculturated: These individuals identify more closely with their American identity over their Hispanic heritage. They conduct affairs in English, they converse with their doctor in English, and they primarily engage with the world in English.
    2. Unacculturated: These are Hispanics in America who come from a more recent immigrant experience. They identify more closely with their specific country of origin and tend to use Spanish more frequently in family interactions, as well as when speaking on the phone or in other preferences.
    3. Bicultural: Bilingual Hispanics, live and interact in two different worlds. They identify as both Hispanic and American equally, seamlessly navigating both cultures.

How Do We Measure Cultural Fluency at Collage Group? Apply the Brand Cultural Fluency Quotient (B-CFQ) Metric

Collage Group assesses the cultural fluency of a brand by evaluating consumer sentiment across six fundamental dimensions: Fit, Relevance, Alignment, Nostalgia, Trustworthiness, Advocacy, and Values.

    • Fit: Fit pertains to how well a brand’s product or service matches the needs and wants of the consumer. A key question to ask yourself when it comes to assessing brand fit is: ‘Does your brand meet specific needs that align with the consumer’s cultural life?’
    • Relevance: Relevance refers to a brand’s ability to deeply resonate with a group’s identity. A key question to ask yourself is: Does your brand connect with the consumer’s specific cultural group traits and passion points?
    • Memories: Memories refer to whether a brand leaves a significant impression and delivers a lasting experience.
    • Values: Values refer to a brand’s commitment to supporting and upholding the core beliefs and principles of the communities they serve. Is your brand an ally in the key social issues affecting your consumers’ lives?
    • Trust: Trust refers to whether a brand is reputable and reliable. A key question to ask is: Has your brand earned the credibility to warrant the consumer’s loyalty?
    • Advocacy: Advocacy refers to a brand’s power to foster positive word-of-mouth endorsement. A key question to ask is: Are consumers willing to recommend your brand to their peers and community?”

These dimensions are carefully analyzed and integrated to generate the Brand Cultural Fluency Quotient (B-CFQ) score. This score provides Collage Group members with invaluable insights into their brand’s impact on various consumer segments and offers strategies for enhancing their brand’s performance.

Insights obtained from a B-CFQ score are then combined with two other bodies of work:

    1. Consumer fundamentals: Collage Group’s consumer fundamentals research gives insights into people as ‘cultural individuals.’ This research delves into their values, what their passions are, the special occasions they celebrate, and what makes them favor certain brands based on their feelings.
    2. Category essentials: Collage Group’s category essentials research explores 16 categories to provide insights into culturally preferred products and behaviors. This, in turn, reveals the logical reasons why consumers might want to make a purchase.

Every year, this comprehensive approach has been applied to identify which brands are performing well for a given ethnicity, along with other demographics. Collage Group users can then use these insights to learn from and replicate the success of these top brands, assisted by Collage Group’s fluen.ci product.

This article focuses on key insights gleaned from Collage Group’s research on how to effectively market and succeed within the Hispanic community. This involves creating marketing campaigns that resonate with other ethnic and demographic segments beyond the Hispanic community. Collage Group refers to this phenomenon as the “halo effect”.

Create Marketing Campaigns That Utilize the Halo Effect

The halo effect describes a phenomenon in which a given marketing campaign has a positive impact on consumers not initially included in the target segment. By leveraging the halo effect, a marketing campaign can appeal to a broader audience, bridging the gap between mainstream and targeted marketing.

When considering marketing for the Hispanic consumer group, it’s important to recognize that Hispanic culture is shaping America. For example – and as previously mentioned – 19% of the U.S. population identifies as Hispanic. Therefore, Hispanic themes are starting to influence all U.S. demographics.

Collage Group has identified top brands for Hispanic consumers. These brands effectively harness the halo effect. By studying these brands, this article offers actionable tips, enabling others to achieve similar success.

Top Brands for Hispanic Consumers: Discover How to Craft an Effective Hispanic Marketing Campaign

Collage Group has identified the top 20 brands for Hispanic consumers, as detailed in the report, ‘The Top Brands for Hispanic Consumers: Insights from CultureRate’. This article features two case studies to highlight brands that:

    1. Demonstrate exceptional cultural fluency within the Hispanic community.
    2. Successfully capitalize on the halo effect.
    3. Effectively activate across the six dimensions of Collage Group’s B-CFQ metric, which is explained in detail above.

Each case study identifies what these brands are doing right to resonate and connect with the Hispanic community.

How to Market to the Hispanic Community: Case Study #1 – Target

Target is an American retail corporation that operates a chain of discount department stores and hypermarkets.

In Collage Group’s brand ranking for Hispanic consumers, Target holds the third position. This achievement signifies Target’s successful connection with this specific consumer segment. How does Target accomplish this?

Below, you’ll find critical insights derived from Collage Group’s comprehensive analysis of Target’s marketing strategy tailored to the Hispanic consumer segment. This strategic approach has not only increased Target’s favorability among the Hispanic community but has also significantly boosted purchase intent.

That is, within the Hispanic community, Target’s favorability stands out with an impressive 22% higher score than the typical results found in Collage Group’s analyses. This remarkable accomplishment underscores Target’s deep resonance and enduring connection with the Hispanic audience.

Furthermore, the brand excels with a substantial 20%-point difference from the norm in terms of purchase intent. This exemplifies the extraordinary appeal of Target and the effectiveness of its efforts in nurturing lasting relationships within the Hispanic community.

Moreover, 47% of Hispanic consumers view Target as a brand that is on the rise.

Outlined below are the specific strategies that Target has adeptly employed to achieve these commendable results. Through this analysis, essential actions are detailed for other brands to draw inspiration from and replicate Target’s success.

Marketing to the Hispanic Community: Establish Trust by Reflecting the Bicultural Aspects of Hispanic Identity

Target has fostered trust within the Hispanic community by acknowledging the importance of authentic representation, especially in capturing the essence of the Bicultural Hispanic experience.

For instance, Target collaborated with Mexican poet Vianney Harrelly to create a short feature film that explores her life along the San Diego-Tijuana border.

This resonates with the 46% of the Bicultural Hispanic community who express a desire for increased representation of their race and ethnicity in media, surpassing the 42% figure for the total Hispanic population. Furthermore, an impressive 63% of the bicultural Hispanic community actively seeks out brands that champion Hispanic people, compared to 56% of the broader Hispanic consumer group.

Marketing to the Hispanic Community: Promote Advocacy by Establishing Partnerships with and Endorsing Businesses Owned by Latinos

60% of Hispanic-owned businesses underscore the importance of connecting with individuals who share their racial and ethnic identity. In contrast, 49% of small business owners in the general population share this view.

Utilizing these cultural values, Target has fostered advocacy within the Hispanic consumer segment. The brand strategically collaborated with Hispanic media platforms to promote Latino-owned businesses. As a case in point, Target formed a partnership with Remezcla, a prominent American media company committed to boosting the visibility of Latine-owned brands.

This partnership holds substantial value, resonating not only with the Hispanic community but also strategically leveraging the halo effect. That is, this marketing campaign aligns seamlessly with the values and characteristics of Black Americans and Generation Z.

Marketing to the Hispanic Community: Drive Relevance and Fit by Challenging Stereotypes and Designing Reward Programs with Hispanic Passion Points in Mind

Hispanic consumers have a strong inclination to support products or services that actively challenge stereotypes prevalent in advertising. This includes confronting stereotypes related to race, ethnicity, age, generational differences, and gender. Target has effectively tapped into this passion by incorporating Ulta Beauty products into its stores.

Ulta Beauty is renowned for its product line designed for Multicultural Americans, which actively challenges the conventions of traditional beauty products. In a strategic move, Target not only includes Ulta Beauty products in its stores but has also introduced a rewards program that provides consumers with incentives when they purchase these products from Target.

This initiative aligns with another key preference of Hispanic consumers. 29% (compared to 24% of the total population) of Hispanics express a desire to participate in loyalty or rewards programs that offer special deals and discounts on makeup. Hence Target’s collaboration with Ulta Beauty also provides a significant 5% edge over the total population, effectively capitalizing on the strong affinity Hispanic consumers have for makeup products.

Marketing to the Hispanic Community: Embrace Hispanic Values and Create Lasting Brand Memories by Celebrating Cultural Holidays That Hold Significance in This Community

Another crucial element of Target’s successful engagement within the Hispanic community is its skillful handling of cultural holidays and its remarkable support for the values and memories associated with these celebrations.

A noteworthy 56% of Hispanics (compared to 46% of the total population) express a strong desire for brands to incorporate cultural holidays into their advertising campaigns. Therefore, Target’s commitment to honoring cultural holidays is a gesture that forges a deep and authentic connection with the Hispanic community.

For instance, in Target’s ‘Welcome To’ series, the brand partnered with Mexican American Dr. Linda Parra, offering insights into how she and her family celebrate Dia de los Reyes with traditional food and customs. Considering that 48% of Hispanics (and 62% of Unacculturated Hispanics) actively participate in Dia de los Reyes celebrations, Target fulfills a profound need within this vibrant and diverse community. This demonstration of cultural understanding and appreciation further solidifies Target’s resonance with Hispanic consumers.

Marketing to the Hispanic Community: Align Brand Values with the Hispanic Community in Mind and Offer Year-Round Support for Social and Political Issues

87% of Hispanics believe that brands and companies should be involved in social and political issues to some extent. However, 43% express that only brands with a history of supporting the Hispanic segment should celebrate Hispanic Heritage Month.

This perspective highlights the importance of a year-round approach, a concept skillfully embraced by Target through initiatives like the “Mas Que” campaign.

In this campaign, Target made a substantial commitment to the Hispanic community by pledging $5 million as a founding donor for the National Museum of American Latino. Through this generous support, Target strengthens the museum’s efforts to promote the representation, understanding, and appreciation of Latino history and culture in the United States. Target’s significant year-round support will play an integral role in assisting the museum in curating content as it evolves and takes shape over the next decade.

This initiative reflects Target’s deep dedication to fostering a more inclusive and culturally rich society while solidifying its position as a steadfast advocate for the Hispanic community. Target underscores its dedication to being a brand that deeply resonates with the values and aspirations of this diverse and engaged audience.

How to Market to the Hispanic Community: Case Study #2 – Fabuloso

Fabuloso manufactures concentrated disinfectant solutions and sprays designed for household cleaning. Founded in Venezuela in 1980, the brand expanded to Mexico in 1983 and eventually made its way to the United States in 1996. As a result, Fabuloso has maintained a meaningful connection with numerous Hispanic communities throughout its history.

Fabuloso exhibits high levels of cultural fluency when assessed using our B-CFQ metric, ranking the brand as the 19th top brand for Hispanic consumers. As a culturally fluent brand, Fabuloso’s marketing efforts have won the hearts of the Hispanic community, and the brand reaps the financial rewards of this success. For instance, brand favorability is 25% higher for Fabuloso than most brands assessed by Collage Group. Plus, purchase intent is 29% higher than the norm. Once more, the brand has a strong Hispanic following, with 49% of Hispanic consumers perceiving the brand as being on the rise.

Listed below are the pivotal strategies and initiatives that have driven Fabuloso’s success within the Hispanic community.

Marketing to the Hispanic Community: Use Key Marketing Channels to Engage the Senses to Cultivate Advocacy and Create Lasting Brand Memories

Fabuloso infuses a feeling of joy into its marketing campaigns, cultivating advocacy and crafting positive brand memories for Hispanic consumers by engaging various senses, including smell and sound.

When it comes to digital marketing, focusing on social media is an effective approach to reach the Hispanic community. That is, a remarkable 61% of Hispanics actively follow influencers, celebrities, and other prominent social media channels, surpassing the 53% figure for the general population.

Consequently, Fabuloso has tailored its digital marketing strategy to craft engaging and impactful social media campaigns. To do this, Fabuloso focuses on the brand’s iconic product scent as a powerful identifier to use in its social media marketing efforts. A notable example is Fabuloso’s collaboration with Hefty, a leading trash bag provider. In this inventive campaign, Hefty trash bags were infused with the distinctive fragrance of Fabuloso, creating a product feature that garnered enthusiastic sharing across social media channels and generated substantial engagement. This engagement helped cultivate advocacy for Fabuloso as well as Hefty within the Hispanic community.

Moreover, Fabuloso harnesses the power of music to tap into people’s memories. The brand’s Spotify playlist is thoughtfully curated with tracks that evoke nostalgia and joy within the segment, creating a musical connection that harmonizes with the brand’s essence.

Showcasing the success of such marketing efforts, one consumer shared a TikTok video of their morning routine with the comment “When you wake up to loud music and the scent of Fabuloso“. Such brand advocacy reinforces Fabuloso’s memorable presence in the lives of the Hispanic community.

Marketing to the Hispanic Community: Create a Business and Marketing Campaigns That Fit with the Values and Needs of the Hispanic Community

Fabuloso aligns with Hispanics’ desire to maintain a clean home. For instance, 66% of Hispanics agree that the cleanliness of a person’s home is a reflection of them as a person, compared to 60% of the total population. This sentiment is even more prevalent among Unacculturated Hispanics, with 71% in agreement.

Unsurprisingly, 73% of Hispanics emphasize a clean home is a top priority for them, compared to 64% of the total population. Once again, Unacculturated Hispanics lead the way, with a significant 76% prioritizing home cleanliness.

Hence, Fabuloso’s entire business model strongly aligns with the values of the Hispanic community. This brand fit also complements another Hispanic need: To host friends and family in a clean and welcoming environment. Notably, 28% of Hispanics host family reunions every week during the summer or multiple times throughout the season, in contrast to 16% for Black and Asian individuals and 10% for White individuals. Fabuloso takes this insight into account when crafting its marketing strategies. For instance, the brand launched a compelling social media campaign with the message, “Families who Fabuloso together, thrive together”.

Marketing to the Hispanic Community: Uphold Hispanic Values of Family Traditions to Drive Trust and Relevance

71% of the Hispanic community state that they actively participate in the traditions and culture of their family’s heritage. This percentage is even higher among Uunacculturated Hispanics, with 79% in agreement.

Fabuloso has successfully aligned with this Hispanic value of preserving family traditions, which includes the continuity of using cleaning products across generations. A testimonial from Writer L. Daniela Alvarez for The Kitchen exemplifies this connection:

“The scents, sounds, and textures of the tools and products I use for cleaning are deeply ingrained, serving not only to keep my kitchen spotless but to reconnect me with my Mexican heritage and uphold my family’s traditions. A few cleaning and smart organizing tricks, in particular, instantly link me to my culture: a Talon scrubby sponge, Fabuloso, and a traditional mop, and the oven.”
– L. Daniela Alvarez, Writer for The Kitchen

Marketing to the Hispanic Consumer Insights: Design Distribution Channels with Hispanic Shopping Preferences and Behavior in Mind for an Improved Brand Fit

One noteworthy aspect of Fabuloso is its remarkable adaptability across various parts of the distribution landscape. This adaptability helps the Fabuloso brand better meet the needs of Hispanic consumers.

We asked consumers whether they purchased their cleaning products in-store. From our results, the Hispanic segment stands out with a particularly high agreement rate at 67%. This surpasses other segments (Black, Asian, and White consumers) that range from 55% to 59%. As a result, Fabuloso ensures product presence across a diverse array of retail environments, including large retail chains, regional stores, discount stores, wholesale clubs, and home improvement retailers.

This, in turn, has a very powerful halo effect, especially regarding Asian consumers who favor bulk purchases and have a higher likelihood of shopping at wholesale clubs. Additionally, it resonates with Black consumers, who demonstrate a higher preference for discount stores.

Summary Guide: Six Strategic Opportunities to Drive Resonance with Hispanic Consumers

Using the insights from the above case studies, detailed below is a summary guide on how you can drive brand growth within the Hispanic consumer market, building cultural relevance and securing the corresponding halo effects.

    • Maximize Fit: Meet the needs of the Hispanic consumer segment. This might be their desire for a clean home, a love of fashion, or a desire to uphold family traditions.
    • Drive relevance: Celebrate the unique aspects of Hispanic culture, especially the importance of tradition and how your brand has played or can play a role.
    • Partner with influencers to build trust: Partner with individuals who are well-known to many Hispanics and can speak to the segment’s rich cultural heritage.
    • Align brand values with those of the consumer: Introduce new product offerings and marketing campaigns that meet the values of the Hispanic consumer. Make sure you learn from any failures and try again.
    • Build positive brand memories: Use music to effectively connect to Hispanic heritage and the past. Recognize the importance of nostalgia, with many Hispanic consumers doing things the way their family members used to.
    • Drive advocacy: Speak to group traits that matter to the given segments, which includes cultural duality and positivity. Authentically support the segments through diversity and inclusion efforts, prioritization of representation, and partnerships that matter to them.

Transform Your Brand Strategy with Collage Group’s fluen.ci and Achieve Cultural Fluency

Unlock your brand’s full potential with Collage Group’s cutting-edge platform, fluen.ci.

With fluen.ci you can delve deep into different consumer demographics, including age, gender, and ethnicity, and gain a granular understanding of their preferences and needs.

The fluen.ci platform uses Collage Group’s B-CFQ (Brand Cultural Fluency Quotient) score to pinpoint specific areas for improvement, whether that’s enriching brand memories for Asian consumers or fostering trust within the Hispanic audience.

But that’s not all. fluen.ci tailors the most up-to-date and relevant research to each demographic segment based on your brand’s results. You will gain a wealth of knowledge that helps you uncover the strategies capable of skyrocketing your brand’s appeal within each unique demographic.

With fluen.ci, you have the power to create detailed profiles based on the diverse interests and attitudes of your target audience. This means you can fine-tune your marketing strategies and activations with laser precision.

fluen.ci is your key to achieving cultural fluency and success in multicultural America. Appeal to the Hispanic consumer group and beyond.

Other Recent Multicultural Research Articles & Insights from Collage Group

Victor Paredes

Victor Paredes

Victor leverages his expertise in inclusive marketing and advertising in combination with Collage’s proprietary data and insights, to support clients. He is a successful marketing and advertising executive with proven experience in building practices that drive brand equity, sales, traffic, and qualified leads. His marketing experience spans sectors such as entertainment, hospitality, healthcare, consumer packaged goods, retail, and direct to consumer services.

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