The New Power Latino

The US Hispanic market is on fire, as the demographic keeps growing it has become the most important consumer opportunity today. Every brand should consider connecting to latinos but not everyone knows how to. There are many misconceptions about how to segment the US Hispanic community with much talk about acculturation levels. However, the Hispanic community is very diverse within itself and it has many more layers than it would appear. Such is the case with the elusive upscale latino segment.

The often mis-targeted upscale latino segment is spending $500B annually, and contribute nearly 40 percent of the $1.5 trillion Hispanic spending power, as reported by Nielsen. The upscale latino has a very different mentality than their Hispanic counterparts. Historically, there has been large socio-economic differences in latin America, that are still deeply ingrained today. There is a very interesting essay written by Simon Bolivar, widely known as "The Liberator", and regarded as the leader of the Latin American Wars of Independence. His essay, written in 1815, explains that when Spaniards appeared in the new world, the natives considered them as a superior species, due to fear of their force and because the natives saw the Spaniards as divine messengers of sorts. The old beliefs are still somewhat present in the modern era, and can be seen through a need to acquire and defend a high standing status.  Research by Nielsen has shown that this segment is more likely to be luxury seekers, compared to upscale non-Hispanics, which would confirm the need to protect status.

Members of the upscale latino segment often enjoy a privileged lifestyle in their native countries and are seen in positions of power, they have a tendency to operate within closed inner circles. However, across all luxury segments, about 60% have strong ties to the latino culture, and 30%-40% voice a strong cultural duality (Nielsen). The research also showed that upscale latinos share similarities with upscale non-Hispanics, yet maintain their uniqueness . This finding would explain why the number one top-recalled ads in Spanish-language magazines was a straight translation of an English-language ad featuring the same (very American-looking model). The conflicting findings suggests that brands seeking to connect to the upscale latino demographic must take on a different strategy than the old tried and true, and seek to make connections with this segment in a deeper more meaningful level.

Call SEED Branding Studio for fresh strategies to connect with the Power Latino. 

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6 Highly Effective Advertising Persuasion Secrets

We are constantly being bombarded with messages imploring us to change our attitudes and buy products. These persuasion attempts can range from logical arguments to graphic pictures, from peers who try to intimidate us to celebrities who try to charm us.

Persuasion involves an active attempt to change attitudes. This is of course Job #1 for many marketing communications. Today we will share some basic psychological principles that influence people to change their minds or comply with a request.

1. Reciprocity - We are more likely to give if first we receive. That's why including money in a mail survey questionnaire increases the response rate by an average of 65 percent over surveys that come without financial incentives in the envelope.

2. Scarcity - Like people, items are more attractive when they aren't available. In one study, researchers asked people to rate the quality of chocolate chip cookies. Participants who only got one cookie liked them better than did those who evaluated more of the same kind of cookie. That helps explain why we tend to value "limited-edition" items.

3. Authority - We believe an authoritative source much more readily than one that is less authoritative. That explains why the American public's opinion on an issue can shift by as much as 2 percent when the New York Times (but not the National Enquirer) runs an article about it.

4. Consistency - People try not to contradict themselves in terms of what they say and do about an issue. In one study, students at an Israeli university who solicited donations to help disabled people doubled the amount they normally collected in a neighborhood if they first asked the residents to sign a petition supporting this cause two weeks before they actually asked for the donations.

5. Liking - We agree with those we like or admire. In one study, good-looking fundraisers raised almost twice as much as other volunteers who were not as attractive.

6. Consensus - We consider what others do before we decide what to do. People are more likely to donate to a charity if they first see a list of the names of their neighbors who have already done so. To illustrate, think about how many brands claim to be "America's favorite (fill in the blank)?"

This principles are applied in most every form of sales, bear in mind that they can also be applied in many settings of everyday life. So next time you need to persuade someone you may be able to pull a new trick from your sleeve. Happy persuading!

Scent: Better Branding Right Under Your Nose

We have all known persons who could be identified by a particular smell - hopefully a good one based on perfume or cologne. We have also all felt our emotions stirred by the faint smell that reminds us of someone or something we love. But have you ever thought about the smell of mundane objects such as scotch tape? a pencil? or new shoes? Each smell is unlike anything else and provides clues about subtle ways scent can be used to manage brand identity.

Smell is arguably the strongest of the senses, yet scent is an oft-neglected tool for providing consumers with engaging and emotional experiences. Much research reveals that odor has the potential to evoke our emotions with more potency than any other senses. Your customer's nose is actually a direct link to their memories and emotions awaiting your stimulation. 

According to Gail Vance Civille from Sensory Spectrum in Chatham, New Jersey "Everybody tells you they hate scented products. They lie. People love scented products and will choose them over other products. People will give scented products other positive attributes based solely on their smell. You can give someone two identical paper towels, the only difference being one is scented, and he or she will tell you the scented one is softer."

Fragrances may be one of the oldest marketing techniques around. Open-air vendors have used burning incense to lure passing traffic over to their wares since ancient times. Today many commercial spaces have jumped on the scent bandwagon, experimenting with branded scent, such as the Massachusetts-based Jordan's Furniture, that uses scents such as bubble gum in the children's section and the smell of pine in the country-style section. They reported a substantial increase in sales since scent was brought into their marketing plan. 

With systems available that can restrict a smell to within eighteen inches of the point of sale, including scent in to your strategy can be highly targeted. According to Alan R. Hirsch, founder of the Smell & Taste Treatment and Research Foundation, "If you're looking to increase sales, the best approach is an appeal based on the emotions, and the quickest way to reach the emotions is through smells." Hirsch also said that clients have seen their profits jump as much as 40 percent by using branded scents. 

Contact SEED Branding Studio to find out how to incorporate scent into your brand experience strategy 

305.454.4106 or visit seedbrandingstudio.com today. 

The Power of Pinterest

Pinterest is a free social media platform that allows users to upload, save, sort, and manage images - known as pins-and videos through collections known as pinboards. It is a personalized social media site where users can browse the content of others on the main page. The site has been especially popular among women, with a global female audience of 83%. The average user spends around 90 minutes per month, and as reported by comScore the site had 11.7 million unique U.S. visitors, making it the fastest site ever to break the 10 million unique visitor mark. The most popular categories are food & drink, DIY & crafts, women's apparel, home decor, and travel. By the end of 2014 Pinterest had grown its active users by 111% in six months, as reported by AdAge.

Pinterest allows brands to peek into the aspirations of consumers, and also offer a highly visual experience of their brand offering. It provides insights into both the behavior of online "window shoppers" and market demand for new products.

Eric Hadley, head of partner marketing, said Pinterest will offer more precise ways to reach audience beyond its 30 different categories including food & drink, hair & beauty & sports, as reported AdAge. Advertisers will now be able to also target users by audience, such as "outdoor enthusiast", said Mr. Hadley.

Pinterest wants to become part of the the main social media platforms, mainly Facebook and Twitter, used by brands to engage consumers. The site offers useful insights on how to best use Pinterest online, for both consumers and advertisers. As the platform continues to rapidly grow and evolve, marketeres should take notice and start harnessing the power of Pinterest.

Follow SEED Branding Studio for more information on how to grow your brand. 

How Starbuck's Became Successful Without Advertising

As a director of a small agency I get to meet with a lot of start-up companies looking to grow their business. One of the things I get a lot is how they want to grow and be successful without any advertising "just like Starbuck's". What blows my mind is that the people I meet are smart and capable, but they are under the assumption that "classic" advertising is no longer needed. They come to our studio with a product or idea seeking to grow. They are looking for the magic formula of getting customers without advertising or by relying on social media alone and hitting it big just like "Starbucks".

Starbuck's success combined with the rise of social media seems to feed the myth that entrepreneurs do not need marketing or advertising to succeed. With this in mind, I'd like to demystify the wonderful brand of Starbucks and the elements that made it successful without the need of investing in advertising:

1. Product 
Howard Schultz managed to transform coffee from a commodity to an upscale experience. He had the vision to create a "third place" for Americans between home and work. In this sense he was an innovator, he did not just sell premium coffee but he sold an experience. His offering completely changed the way Americans consumed coffee and made coffee experts out of his consumers.

2. Experiential Branding
The first component was Starbucks "live coffee" mantra. The company prided in offering the highest-quality coffee in the world and they controlled as much of the supply chain as possible overseeing the bean growers, custom-roasting and distribution.
The second component was service, or what they called "customer intimacy". This is where the barista called you by your name and custom-made your drink.
The third brand component was atmosphere, with comfortable sitting areas that encouraged lounging and an upscale yet inviting environment where people wanted to linger.

3. Core Values
The company culture fostered excellence, joy, innovation, respect, teamwork, social profit and integrity. Schultz believed that employee satisfaction led to customer satisfaction. Employees, called "partners" received health insurance, and stock options at entry level. Partner satisfaction was at 80%-90% range making Starbuck's one of the best places to work according to Fortune Magazine.

4. First Mover's Advantage Immediately after buying Starbuck's, Schultz began opening new stores. He was aggressive in his growth and the company rapidly took over other small-scale coffee chains. Soon after he took the company public, through this move he had a first mover's advantage and quickly locked-in the best locations and distribution channels. By 2002 the company had well over 5,000 stores and opening an average of three new store a day.

5. Marketing and Advertising
North American marketing primarily consisted of point-of-sale materials and local-store marketing and the investment was far less than the industry average. However, having stores located in prominent high-traffic locations doubled as a massive outdoor advertising campaign.

The success of Starbuck's has many components that are not so easy to replicate. The genius of Schultz was to have a vision and be aggressive in pursuing it. He had an idea that completely disrupted the market and he was wise to quickly lock-in distribution channels by investing the most money in getting the best locations for his stores. By displaying the beautiful logo and large iconic green and white signage in virtually every corner, he made sure to create brand recognition and recall. His strategy was simple, clean and smart. It is important to understand that there are many elements leading to Starbuck's success. The complexity of what made this brand successful without any advertising can't be oversimplified, and entrepreneurs looking to follow Schultz steps should carefully evaluate their strategy. In a competitive market the need for marketing and advertising should not be overlooked without deep analysis. What are your thoughts, do you think a company can make it by advertising through social media alone?

Contact SEED Branding Studio to get a free consultation305.454.4106 or visit SEED Branding Studio .

Revealed: Chinese New Year ads that bring prosperity

Companies that conduct or want to conduct business in a global arena can't miss the opportunity to be present during the Chinese New Year. This is a critical period for marketers across Asia and marketers are starting to take notice. As reported by 9 to 5 Mac, for the first time Apple will be releasing an ad specifically made for the Chinese New Year similar to it's Christmas "The Song Ad". 

A report by TNS Global presented insights on what resonates with the Chinese audience during this Critical period for advertisers. Here we share the types of advertising that create short-term involvement and build long-term brand memories during the Chinese New Year: 

1. Don't settle for short-term impact

Focus on delivering your brand's point of difference and making long-term connections. Brands that focus on momentary fun without communicating what makes their brand great tend to be quickly forgotten. 

2. Be relevant to your audience and to the occasion

Address themes and stir emotions that are relevant to the audience of the Chinese New Year. It is not enough to connect emotionally, the connections must be relevant to the festival itself.

3. Don't be afraid to be yourself

Stick to your core values. There is no need to change the brand in order to make it "fit" into the Chinese New Year. Brands should maintain their core values and build meaningful connections from there. As an example Ferrero Rocher did very good by creating a high-end ad with family reunion appeal.

4. Be novel but not irreverent

When creating novelty don't go against the themes of the festival or those celebrating it. The Seaweed brand Gurume, created an ad where people decorated themselves with seaweed, it failed to connect with audiences because it lacked relevance to the festival. 

5. Use symbols but don't rely on them

Focus on values not on symbols. The symbols of the God of prosperity made a couple of cameos on various ads. Using symbols is no substitute for putting the values of Chinese New Year at the heart of the campaign. 

Marketers looking to gain brand equity in Asia can't afford to ignore this event. By sticking to their core values and tailoring a campaign around the themes of  "reunion", "family" or "welcome" brands should be able to connect emotionally and increase their recognition and recall. 

Like what you are reading? Visit SEED Branding Studio 

or contact us at 305.454.4106 

Valentine's Marketing Statistics

Marketers love, love, love statistics. They drive decisions for many successful campaigns and form the basis of effective strategies. When you combine Valentine's with great statistics you have the perfect gift for your marketing geek. To continue with the love celebration we share some interesting statistics on this $18.6 billion event:

- 62% of all consumers celebrate Valentine's Day (Statistic Brain)
- The top gifts, in order from most popular are candy, flowers, jewelry, greeting cards, an evening out, clothes and gift cards. According to Retail Industry Foundation
- Amount spent, per person, for Valentine's Day in the U.S: $126 (Econsultancy)
- Amount spent, per person, for Valentine's Day in Asia: $274 (Econsultancy)
- Amount spent on pets annually in the U.S.: $367 million (Econsultancy)
- The U.S. is behind Spain, France, the U.K., Canada, Brazil and Australia in per-person spending (Econsultancy)
- 53 percent of women say they would end a relationship if they didn't receive anything for Valentine's (Econsultancy)
- 15 percent of women send themselves flowers on Valentine's (Econsultancy)
- It is not the most popular holiday for greeting cards according to the Greeting Card Association.
- Men account for 73 percent of Valentine's Day flower sales (Woman's Day)

Did any of the stats surprise you?

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