LUCY, YOU HAVE SOME ‘SPLANIN TO DO!

By Pedro de Cordoba | Chief Strategy Officer –  Eventus

Such a classic line. Just picturing Desi Arnaz’ character intone these words in his heavy Cuban accent demanding accountability from his rascally wife is engrained in our popular lore. I’m not sure what’s funnier, the Latino guy demanding accountability or Lucy’s mischief, but the combination works enough to keep the series airing after more than 60 years. In TV land, reruns are a sign of success, it means longevity. In life, repeating history is a sign of lessons not learned.

When you work in the multicultural marketing arena, you get used to the Sisyphean chore of needing to constantly sell the market. On the plus side, it means that those of us who do this for a living have a lot of tela para cortar. On the downside, it can get tedious. But we still encounter it all the time. At its worst, it’s flat out ignorance. Most likely, it’s either fear of the unknown or simply neglect. One thing is for certain, there is an extraordinary amount of malpractice happening in the halls of American businesses every day. Taking a stoic view, least I be called too passionate, this is what I’ve discerned. 

There’s basically two ways to grow most businesses. You either sell more to your existing customer base or you look for new markets. Typically when you’ve maxed-out your existing customer base, it should be time to set sails for distant shores and plant your flag.

Before you go, you need to quantify the opportunity. Besides market potential, you would look for proximity, social and political stability, cultural affinity, good infrastructure, and the strength of the legal system, to mention a few. Add to that a predictable and stable currency and the ease to repatriate profits.

So when you identify an opportunity market that meets (and exceeds) all these basic requirements, and is fueled by a young, energetic population to boot, it should be a virtual no-brainer. The response should be a loud… “Send me in coach”!   

But here is where business malpractice is committed every day. When this opportunity actually exists right here, without leaving the friendly confines of these United States, you have to ask yourself… REALLY?

No matter if it’s a privately held or publicly traded company, maximizing shareholder value is the name of the game. Clearly this can’t be happening when such a plum opportunity market isn’t being pursued consistently and aggressively. Somebody at the C-level or more importantly the board of directors should, in the immortalized words of Ricky Ricardo, “have some serious ‘splainin to do.”  

Empirically, it’s hard to fathom a better opportunity market than our US Hispanic market. By now, everyone should be aware of the litany of mind-blowing gains by the Hispanic community. 55 million+ strong, an average 7 years younger than the general population, higher than average domestic birth rates. All of this fueled by an unmatched optimism that drives this population to thrive despite the consistent head winds and hostile environment faced by many.

The facts should have shaken every corner of the business and marketing establishment from their stupor a few census readings ago (and by that I mean in the 90’s at the latest). While some are “all in”, the levels of commitment of most varies widely, no matter the empirical evidence as to the potential of the opportunity.

Half-Hearted Efforts

Years ago I had a senior executive of an established, venerable brand voice disappointment when he didn’t see the return he had expected based on what he considered was a sizable bet on the Hispanic market, why wasn’t it paying off? My question back to him was, how long have you been at it? A couple of years was the answer. Enough said. It was as if investing in the Hispanic market was a short term tactic that didn’t pay off. Something akin to a media buy, not an attempt at developing a long term relationship with new consumers. It had taken the brand decades to establish itself in the market. The expectations of an immediate return from this initial foray into the Hispanic market was unreasonable, to say the least. The real problem was looking at the Hispanic opportunity as tactic, and not a long-term strategy to build the brand. Marketing is a courtship, and courtships that lead to real relationships take time to develop.

The facts should speak for themselves, it’s just apparent some don’t want to listen. Incredibly, companies risk lavish amounts of resources to set up shop on foreign soil, looking for emerging markets while they continue to ignore the untapped opportunities here. It defies logic that this continues to happen at individual companies and across entire industries (Pharma, Healthcare and Real Estate come to mind). Why aren’t their boards of directors holding anyone accountable? Where are the activist investors? To me it is the definition of malpractice.

Tried as I have to channel my inner Mr. Spock and keep dispassionate about this, there comes a time where the inner Ricky Ricardo from my Cuban soul screams in exasperation… “Lucy, somebody has some ‘splainin to do!”