To Target or Not to Target: Are Hispanic Teen Car Buyers a Worthwhile Segment?
February 6, 2006
For companies trying to increase sales by understanding who buys what, analysis of target markets and buying trends is a top priority. The North American automotive industry is no different as it seeks to understand an important and growing market segment: Hispanic youth.
In a study presented at the 2006 ESOMAR Automotive Conference in Lausanne, Switzerland, Anderson Analytics looked at the following key targeting criteria: economic potential, identification of causal differences, and reachability, in order to determine whether or not this segment merits a unique marketing approach. Anderson’s analysis of the quantitative and qualitative data made a strong case in support of targeting the Hispanic Youth Segment with a unique and differentiated marketing strategy.
The research showed that the Hispanic youth segment should be targeted based on all standard targeting criteria. The segment is economically attractive, growing faster than any other demographic group. It is very different in terms of psychological needs and attitudes related to cars. And, while Hispanic youth tend to be bilingual, and it is possible to reach the majority in mainstream English media, they are reachable in other ways, and clearly warrant a specific strategy.
“Hispanic teens are indeed a growing target for car makers,” said Tom Anderson, managing partner, Anderson Analytics. “We found that innovative marketers willing to take advantage of the more creative media channels such as websites or magazines catering to Hispanic Youth or via viral marketing could have much greater success reaching this market.”
“The findings are unique in that they combine advanced research techniques with the cultural awareness and sensitivity needed to truly understand this otherwise hard to reach segment. This study is a perfect example of how to successfully model the impact of cultural differences in today’s multi-ethnic business environment,” said Frank Leinweber, Director, TNS Automotive and co-presenter.
The TNS Teen Auto Survey was conducted by TNS in both English and Spanish in 2004 and was administered to 1,307 US youth, 290 whom identified themselves as Hispanic. In January 2006, Anderson Analytics conducted projective interviews with an additional 236 youth, 12% whom identified themselves as Hispanic.
For more information at http://www.andersonanalytics.com
