There was a clear case of “aero-loco” going on last year, and Alex López Negrete set out to do something about it. The president, CEO and chief creative officer of Lopez Negrete Communications coined the phrase to describe how advertisers were crisscrossing the country to attend conferences that rehashed 2010 U.S. Census data about Hispanics, but didn’t add the insights or texture needed to make this information actionable.
“It’s one thing to have a whole bunch of demographic information and numbers in front of you, and it’s quite another thing to say: ‘This is what it means to my business and my brand,’” says López Negrete, whose clients include Walmart, Dr Pepper Snapple Group, Miller Lite, Verizon, Kraft Foods and Bank of America, among others.
The Houston-based agency’s Strategic Planning Unit (incorporating Business Analytics, Research and Account Planning) took a deep dive into the census data and overlaid additional syndicated and proprietary research. Out of this work emerged three key strategic segments: Critical Más, Cultural Freestylers and Matriarchitects.
The youngest of these segments, Critical Más, is composed of the baby boom of Latinos under the age of 18, and is playing a transformational role in society because of its extraordinary 23 percent share of the total population in that age segment.
“These younger Hispanics are growing up in major U.S. cities where they are, in many cases, a majority, or in cities where there is no such thing as a majority,” says Gerry Loredo, Lopez Negrete’s director of business analytics. He notes that this population shift has made Latino youngsters “much more culturally confident” than their parents’ generation. They also live seamlessly in both the mainstream and Hispanic worlds.
That also is true of the second group Lopez Negrete singled out: Latino millennials (18-29 year olds), which it refers to as “Cultural Freestylers,” because they often would rather stand out than blend in. Leonardo Basterra, the agency’s executive director of digital, notes that with the overlay of the Cultural Freestyler algorithm and the Hispanic technographic profile, the agency was able to identify unique trends to shape its campaigns.
“Specifically, for Miller Lite’s target consumer, we uncovered that Hispanic millennials are three times more likely to own a tablet than non-Hispanic millennials, and have an average of 1.5 more digital devices per household,” Basterra says. “Hence, our campaign is primarily based on tablet- and mobile-enabled solutions followed by online.”
The Critical Más and Cultural Freestylers are identified as key growth segments along with a third group, which Lopez Negrete refers to as the Matriarchitects. These Hispanic moms, guardians of passing on Latino heritage, are often working outside the home and are more comfortable with technology than many assume. Most critically, they are currently reinventing their roles as moms and cultural curators, carving out a space for themselves while being true to their Latino roots.
Whether it is engaging with Cultural Freestylers via the partnership of rapper Pitbull and Dr Pepper or connecting with Matriarchitects through contemporary, yet culturally relevant cues in Kraft Singles’ TV and digital campaigns, these segment insights come into play throughout Lopez Negrete’s marketing. López Negrete notes that some of the TV spots are in English, but still stay very much in culture. “Language is part of the equation, but it’s not the single determining factor of their identity and how they make decisions; it’s their passion for embracing both cultures,” López Negrete adds. “And understanding the three critical segments is an important part of what that’s all about.”