noviembre 30, 2009

Marketers seldom tried to take advantage of India's diversity

What was the shape of the bindi on Lalitaji's confident forehead? Did you say sprightly red and circular ? Bingo. But can you also describe the 

pendant of the mangalsutra around her neck? Take your time. We'll wait.Tough one? Impossible one! 

Lalitaji always kept the pendant tucked inside her blouse, away from the sight of the viewer. Most married Hindu women, irrespective of the part of the country they belong to, sport a mangalsutra. But it's the design of the pendant that differentiates Mrs Sharma from New Delhi and a Mrs Venkatraman from Chennai. 

In keeping the pendant under wraps, the creative czars at Levers and Lintas, perhaps proved how one-size-fits-all has been the dominant credo of marketers in India. 

In America, consumer marketers such as as P&G and Unilever have created different kinds of utensil cleaners, laundry care products for Hispanics and African-Americans . The reason being that they have different cleaning needs depending on the way they cook and the kind of clothes they wear. One would have imagined given the famed Indian diversity that marketers here would have produced a host of products and product variants to cater to large differences that exist regionally, religiously and not to mention by caste. 

So why have marketers shied away from creating products specifically for them — despite large groupings that have completely different needs? Santosh Desai, MD & CEO, FutureBrands explains that large Indian companies historically only cared about customers in metros and other important cities. According to him it is only recently that they have begun to get out of their shell. 

Think about it, how many mainstream ads have featured Muslim characters ? Or for that matter how many companies have actually devised products that are specific to that community? This despite the fact that they number well over a hundred million in this country . Unlike their counterparts in Gulf (Ilkeon's the most famous), no telecom company has come out with a Quran phone, where the faithful can read the holy book on the go. 

Many marketing experts believe that product designers and marketers in India have traditionally been careful of not courting specific communities, in the fear of distancing themselves from others — a case of what might well be labelled as pseudo secular marketing. However, in not targeting specific ethnicities of the Indian society, national companies are possibly losing a huge opportunity to take their products to the next level of popularity. 

"A niche market only implies that it is focused, it need not necessarily mean, small," says Anand Halve, who runs Chlorophyll, a brand consulting firm. He feels national brands have a mental block when it comes to thinking regionally, as they are constantly searching for the lowest common denominator. 

Parvati Mahadev , a consumer insights consultant with Brandscapes puts it well when she says that by standardising products, one may end up meaning something to everybody, but fall short of meaning "a lot to some people" . 

Some marketing experts say catering to various social segments can take place at several levels. First if the preferences are starkly different, companies will have to design altogether different products (say beef food products for Muslims). Second is where a difference in habit calls for change in design like a spicier wafer variant for Tamilians or Andhraites. 

Another important aspect is communication and marketing for a product to cater to various cultures. Ironically marketers who have chosen to walk this path have been rewarded. Anchor Toothpaste, for example, changed the paradigm for social targeting by the introducing a 100% vegetarian toothpaste in the early 2000s. The Gujarat based Anchor originally had in mind, only Gujaratis and Marwaris, as the key communities for the product. 

Others like South Indians came in course of time. Similarly Big Bazaar has been actively mapping tastes of its customers and uses it for better assortment of products. Rajan Malhotra CEO Big Bazaar points out that the chain actively stocks sticky dal in places where there is a dominance of Gujaratis and spices where it sees Tamilians. 


Rang De Basanti 



Pizzahut, an international brand that believes in uniformity of its products has chosen to do things differently in India. It has special vegetarian outlets in Gujarati towns like Rajkot and Ahmedabad. Its stores in Hyderabad (predominantly Muslim) do not serve pepperoni items. 

There is obviously no dearth of local brands that cater to tastes of a particular section of people. Thousands of restaurants offering Jain food (targeted at Gujaratis and Marwaris) have mushroomed in major metros. Wagh Bakri Chai still boasts of a sizeable following in Gujarat and so do many other tea brands in other parts of the country. 

Mustard oil is largely accepted in the East and mostly local brands dominate the segment. City Mall in Nagpada (a Muslim dominated area in South Mumbai) perhaps stocks more Burkhas than anybody else in the country. But these are mainly regional brands, with only latent aspirations to go national. For national brands, designing products for different communities (or even adapting) has been the proverbial, road less traveled. 

But as far as reaching to the nuanced consumer is concerned, Asian Paints pushed the envelope the most. In the 90s, it put out a series of ads – each of them targeted a specific community like Tamilians or Punjabis. They were mainly aired in the run-up to a festival, like Pongal (Tamil New Year) or Gudi Padwa (dear to Maharashtrians). It helped the brand build a "strong emotional connect" as Amit Syngle, vice president, sales and marketing, Asian Paints put it. 

Strangely enough some Indian marketers are more cognizant of these needs when they go international. A company like Marico does not overtly target Indian Muslims at all. However, in Eqypt the company has a brand call Hamaam Zaita , a special Islamic hair care product for the country. Needless to say that, the Indian Muslim population outnumbers that of Egypt many times over. 

There are some who believe that this is largely attributable to practicality. According to Shiv Vishvanathan, a noted social scientist, uniform product design is more a matter of pragmatism than hypocrisy. "Ethnicity cannot be a core value for a large brand, as much as competency," he says. 

But market watchers say food, media and certain daily utility articles are objects where companies can gain the most by nuanced ethnic targeting. Islamic experts say there is tremendous opportunity in items like alcohol-free perfume, special toothpastes, halal cosmetics , toiletries, customised housing, even Islamic dolls. Consider this. 

There are close to 50 different local agencies that supply Halal products (where the poultry is killed without letting out blood) locally and for export — but barely a couple of national companies. (Venkateshwara, Godrej.) 
"Increasingly brands are trying to iron out the lovely and interesting kinks (in their target audience) and making it one smooth landscape," says Mahadev, "While the net result is beautiful, I wonder whether this helps in creating a more clear identity," she added. 

Most experts say in these days of media explosion, it is relatively easy to reach out to various ethnicities of the country. Regional channels and newspapers are dime a dozen. All it would take is the effort to make a different (and a special) commercial in Bengali or Urdu. Nobody can complain anymore that the costs of popularizing a new ethnic product are inhibiting. 

Hindustan Unilever and its ad agency Lowe broke new ground here when they launched a different set of ads for Surf Excel in the South, where the water is hard and lather limited. Quite contrary to the usual detergent ad with images of frothing detergent. Clearly here was a case of recognising that different consumers have different needs. 

Perhaps like in detergents, when parity products grow and marketers are faced with stagnating volumes, they will take advantage of the diversity that exists in India.

$9.4 billion Buying power of Hispanics growing in Austin

Buying power of Hispanics growing
$9.4 billion up for grabs annually in area
Austin Business Journal - by Sandra Zaragoza ABJ Staff

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In a city where one out of every three Austinites is now Hispanic, marketers are digging into their pockets a little deeper to connect with Hispanics.

The reason is clear: The Hispanic buying power in Austin has grown by 54 percent over the past five years to $9.4 billion, according to research presented at the recent Hispanic Marketing Symposium.

That spending power prompted the Austin Ad Fed and Hispanic Marketing Council to host the first Hispanic Marketing Symposium in Austin geared toward helping businesses develop marketing strategies. About 375 business and marketing professionals attended the sold-out event, which took place on Nov. 11 at the University of Texas.

Population growth is perhaps the biggest factor driving marketers' interest in Austin's Hispanic market, industry experts said.

L.A. at Large: 14th Big Saver Foods Store Opens in Long Beach

      Date Submitted: Fri Nov 27, 2009 

By A.MATTHEWS

LONG BEACH, CA – The latest in the chain of  Big Saver Foods stores opened at a well attended morning reception at the store premises here on Nov 19. This is the second store in Long Beach and the 14th  in a chain that was launched by Uka Solanki and his family 32 years ago.

The store was formally thrown open for business by Long Beach Mayor Bob Foster and Vice Mayor Val Lerch, Council member for the 9th District, who cut the ribbon. Shoppers were lining up since the early hours to take advantage of the opening promotions. Guests at the reception included City Council members, Police, Fire Brigade, vendors, suppliers, bankers, friends and well wishers. It was an ethnically diverse group representing the true face of the community.

Both Foster and Lerch lauded the efforts of Uka Solanki and his contribution to the community. They said though redevelopment is very active in the 9th District, Big Saver was built without use of redevelopment funds.  Harish Solanki, President, Big Saver Foods, said the store was set up to help and improve the community and urged those present to form a partnership to benefit residents of the community.

The new store is completely full service, the only one of it's kind in the north-west section of the 9th District. It is above 45,000 sq. ft with 14 departments including produce, grocery, Liquor, beverages, hot bakery, kitchen, meat, dairy, deli and frozen section.

The stores feature foods and products that are not only popular with the Hispanic community, but also are not usually stocked by most American grocery stores. Many products – including beverages, cleaning detergents and other general products – are imported from Mexico and Central America. Specialty cuts of meat are also available.

In 1973 Uka Solanki didn't know much about running a business. Armed with a bachelor's degree in electronic engineering from Pacific State University and a bachelor's degree in Chemistry from India, he began his career in the food industry when he and a friend bought a drive-thru dairy store on Redondo Beach.

They later went on to purchase a grocery store in Torrance. The store was too large for the amateur businessmen to manage, so they sold it six months later. Solanki took his portion of the profits and took off on his own. He purchased Big Saver Foods, a small, independent grocery market located in Lincoln Heights in 1977,and the rest is history.

To this day the Lincoln Heights  store remains the anchor of the business .The chain largely targets the Hispanic market and has thrived on creating a "back home" experience for Hispanic Americans and their families. This is what helped Big Saver Foods grow from a single store operation to what it is today. Big Saver Foods stores are operating in Los Angeles, Orange, and Riverside Counties with stores in Lincoln Heights, Lawndale, El Serino, Rosemead, Norwalk, Bellflower, Long Beach, Santa Ana, Le Puente, Riverside. 

Uka Solanki is Chairman and is helped by son Harish who is the President and Project Manager. Uka's wife Nalini is the Vice President and also manages the Finance. Daughter Pratima is Director Operations of the Fresh Food Department while her sister Jyoti is Director Corporate Relations.    

The family run business has generated hundreds of loyal customers who enjoy the stores high quality meats, excellent selection of fresh produce and a wide array of hot and prepared foods.

Porter & Sons Funeral Home expands on the family legacy

Porter & Sons Funeral Home expands on the family legacy

New branch opens on Bardstown Road

More than 100 years after its founding in western Louisville, A.D. Porter & Sons Funeral Home has opened a second location, branching out to southeastern Jefferson County.

The expansion to 4501 Bardstown Road is about more than geography, said Dani Porter, vice president of the family-owned company. A.D. Porter & Sons is also stretching beyond its core African-American clientele.

While the new branch will offer more convenient service to the black community in Newburg and other parts of southeastern Jefferson County, it also will help A.D. Porter & Sons reach out to the area's growing Hispanic population.

"Looking at other funeral service providers in the city, no one has really focused on the Hispanic market," Porter said. "And they have special needs and special services that they do, like everybody does."

"Louisville is overdue for a multicultural funeral home where everyone feels welcome and can be accommodated," said Woodford R. Porter Jr., the company's president and chief executive, in a statement.

Established in 1907, A.D. Porter & Sons is one of Kentucky's oldest, continuously operated family-owned African-American businesses.

Its founder, Arthur D. Porter Sr., was the first black person to run for mayor of Louisville, losing heavily in 1921 as a member of the Lincoln Independent Party.

Dani Porter, his great-granddaughter, is a member of the fourth generation of Porters in the business.

The Rev. Walter Malone Jr., pastor of Canaan Christian Church at 2840 Hikes Lane, said it's "wonderful" that the Porter funeral home has established a branch in the area.

"We really celebrate this development" because it brings the rich tradition of A.D. Porter & Sons to a location that's more convenient for many members of his predominantly black congregation, he said.

And the expansion means that the latest generation of Porters will be able not just to maintain the legacy of A.D. Porter & Sons, but "take it to another level," Malone added.

A.D. Porter established the business that bears his name in a small house on 15th Street.

The funeral home expanded over the years to a sprawling city block at Chestnut and 13th streets, where it stands today.

The business draws customers from all over the city, Dani Porter said.

But people increasingly want services closer to where they live, and "we have as many customers on (the southeast) side of town as we do on this (side)," she said.

Porter said the new branch, A.D. Porter & Sons Funeral Home Southeast, is a little smaller than the older home, but "it's all on one level, which is nice for our senior folks."

Its main chapel can seat more than 200 people, and overflow rooms can accommodate another 200 or so.

Louisville Metro Government provided a $150,000 low-interest loan toward the funeral home's construction, said Chris Poynter, spokesman for Mayor Jerry Abramson.

The Metropolitan Business Development Corp. approved the loan last April.

"This is a long-time Louisville company … and now they're expanding into an entirely new part of town, (which) will create new jobs," Poynter said. "So it was a no-brainer from our end to help them out."

Brands Prepare for a More Diverse 'General Market' With Generational Shift Afoot

Brands Prepare for a More Diverse 'General Market'

With Generational Shift Afoot, Ethnic Insights are Standard in Ad Efforts

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With traditional marketers such as McDonald's and State Farm embracing ethnic insights as an integral component of their general-marketing work, it may seem that "ethnic" is finally going mainstream.

MONEY TALKS: State Farm ad
MONEY TALKS: State Farm ad
But marketers shouldn't expect to be hailed as civil-rights warriors. After all, outside of the industry, increasing consumerism isn't exactly a noble pursuit. And ethnic agencies shouldn't expect the dawn of a new era in which they're given a seat at the agency-of-record table. Indeed, there are signs that as "general" comes to mean something other than "white," spending will drop in ethnic niches—and research and ethnic findings will be handed over to traditional general-market agencies.

Whatever the case, it's clear that as the ethnic makeup of the U.S. continues to shift, marketers in certain industries are preparing for a more diverse general market.

"I think industry-wide, as America becomes more multicultural, you will see more ethnic insights across the board," said State Farm VP-Marketing Pam El. "I think you're seeing it already, but I think you'll see it two-, three, four-, five-fold going forward."

One of the key drivers is a generational shift. Younger consumers seem to be blending faster than their older ethnic counterparts. Pepper Miller, an ethnic-marketing consultant, said more marketers are looking for "urban mindset" insights, which come from a blend of African-American and Latino cultures, from big cities. While African-American boomers may be put off by "urban" interests, the segment continues to enjoy aspirational status.

Golden rules
McDonald's does 40% of its U.S. business with ethnic minorities;50% of that group is 13% or younger. 

When McDonald's takes its ads to market, the chain makes sure that spending behind certain spots represents the country's ethnic makeup, such as: 15% behind Hispanic marketing, 12% behind African American and 5% behind Asian.

Ms. El said that State Farm has shifted its marketing based on the understanding that young people across ethnic groups may have more in common than older folks of the same race. That's why State Farm uses Lebron James to communicate with the entire youth demographic, rather than relegating him to campaigns directed specifically at African-American youths. The insurer has also recently chosen animated spots from African-American agency Sanders Wingo for general-market communications.

McDonald's has contemporized its brand over the past five to seven years with help from marketing that incorporates ethnic insights. The chain now does 40% of its U.S. business with ethnic minorities, and 50% of that group is 13 or younger. And so to build its U.S. advertising, McDonald's constructs focus groups with disproportionate minority representation, giving equal weight to Hispanic, African-American, Asian and general markets whenever possible. Neil Golden, chief marketer of McDonald's USA, said the result has been more-entertaining advertising that has helped drive the chain's business well ahead of its competition. Part of the reason it's working, Mr. Golden said, is that "consumers more and more are not only accepting, but embracing diversity and embracing it in lifestyle and in food." He said the company has instituted a performance-evaluation model for all of its agencies, measuring how well each agency's work "delivers against ethnic insights."

Insights gleaned from ethnic research have the added benefit of offering a perspective that is a part of mainstream culture while also being separate from it. Robert Brooks, a consultant and former P&G marketer and longtime champion of Burrell Communications, explained, "African-American agencies had people who were in the minority of society who were always looking up—an 11% minority against 80% of the population—so they lived among us and observed us, so they were keen observers, which led to great consumer insights that led to great advertising ideas"

But it's important for marketers to tread carefully—especially when it comes to executing these insights. One bone of contention is the issue of handing the research over to general-market agencies that have historically woeful records when it comes to their own diversity practices. Hadji Williams, an advertising and social-media consultant who has worked at both general market and ethnic agencies, said that this approach can be seen as disingenuous. It's akin to saying, "We're going to help general-market agencies with their deficiencies and then we're still going to marginalize our ethnic agencies and keep them at the back of the bus. It doesn't make good business sense."

There's also the risk of offending consumers by either playing on stereotypes, or appearing to be inserting actors of color and calling it culture. Ms. Miller noted that a number of marketers still spring for cheap laughs, casting Asians as martial artists, Hispanic women as loose, and black women as mean. Beyond issues of offensiveness, there are matters of cultural cluelessness. She recalled a Joe Boxer commercial with an African-American man bouncing around in a cutesy way. The spot was geared at women, who make a substantial portion of the men's underwear purchases among whites. But the same isn't true in the African-American market, in which men buy their own underwear.

Getting it right means finding imagery both appealing to the general market and believable to the segment in which it is based. Ms. Miller recalled a Tide commercial in which an African-American man, wearing a wedding ring, was drying his son off after a bath. It scored huge with African Americans, and was a hit in the general market as well.

It stands to reason that if ethnic agencies are the source of much of this research, they'd regularly be considered for—and win—agency-of-record status for major brands. But a quick look at most AOR reviews will disabuse anyone of that notion. "That's something ethic agencies struggle with," Mr. Williams said. "Black, Hispanic and Asian agencies may do great work, but you can never be an AOR."

Mr. Brooks added that he has campaigned for ethnic agencies as AOR's for decades, and never gotten a satisfactory answer as to why it wouldn't be considered.

And another issue to consider: As ethnic insights trickle up into general-market work, marketers may cut back on some targeted spending—especially in a recession. Ruth Gaviria, VP-multicultural ventures, Meredith Corp., said that targeted spending, at least on Hispanic advertising, has fallen against general-market spend. In general, she said that ethnic work has been "a luxury." But waiting on the sidelines is a luxury marketers can only afford for another year. "When the Census data is released and we have the come to Jesus meeting, then we all regroup," Ms. Gaviria said. "We have a game-changing opportunity in 2011."

Contributing: Jack Neff

octubre 27, 2009

Televisa venderá productos Star Wars

Televisa Consumer Products pondrá a la venta ropa, DVDs y videojuegos con la marca estadounidense; la empresa obtuvo los derechos de comercialización de las marcas de LucasFilms en julio pasado.

CIUDAD DE MÉXICO(CNNExpansión.com) — TelevisaConsumer Products informó este viernes que colocará a la venta una línea de productos infantiles de las marcas Star Wars y Clone Wars, de la empresa LucasFilms.

Ropa, accesorios, juguetes, DVDs, videojuegos, coleccionables, papelería, alimentos, promociones, son algunos de los artículos que la unidad de empresa televisiva comercializará.

En julio, Televisa obtuvo los derechos de comercialización de las marcas Star Wars y Clone.

Con esta operación, Star Wars se suma al portafolio de la compañía que también representa marcas como Rebelde, El Chavo, Lola, Atrévete a Soñar, Patito Feo, Hablando Sola, AAA, Nickelodeon, Bakugan, Pitufos y Pocoyo.

Star Wars (La guerra de las galaxias) es una las sagas de ficción más rentables, fue creada por el guionista, productor y director estadounidense George Lucas.

En el segundo trimestre, Grupo Televisa reportó una leve baja del 0.7% en sus ganancias, afectada por mayores pagos de intereses y pérdidas cambiarias.

Las ganancias en este lapso de su participación controladora fueron de 1,826.9 milllones de pesos (139 millones de dólares).


octubre 21, 2009

Just who are these LATINAS, anyway?



Just who are these LATINAS, anyway?


The 22+ million Latinas in the US market are becoming a very attractive segment that brands are racing to win over.

Today’s Latina influences fashion, trends and culture, forever changing the consumer playing field on a positive level. She is a complex consumer, who is on a literal and metaphorical journey to explore and re-define her womanhood, her cultural values and her own identity.
SOME QUICK DEMOGRAPHIC FACTS ABOUT LATINAS:

• Population size: 19.3 Million in the U.S.

• Median age: 27.5

• Growth: 4X faster than any other segment

• Business Ownership: 39 percent of minority-owned companies in USA

• Purchasing Power: $735 BILLION in 2008; Over $1 TRILLION by 2011

• Latina women account for one-third of purchasing power for all Hispanics

• Motherhood: From 2000 to 2007, Hispanic population grew 58.6% from births alone

• Future: 1 in 5 school children is now Hispanic. Population is expected to represent 30% of all Americans by 2050.

Such growth and significant contribution to the economy, especially while consumer confidence is historically low, reveal how much positive impact Latinas in general have in America today.

In the next post, we will discuss what makes this segment such a ideal prospect for your direct selling business.

¡Hasta la vista!

~ Elianne Ramos


KEYS TO MAKING YOUR DIRECT SELLING COMPANY LATINA-FRIENDLY

KEYS TO MAKING YOUR DIRECT SELLING COMPANY
LATINA-FRIENDLY
By Elianne Ramos
They’re young, they have $300 billion dollars in spending power and unless you haven’t
been paying attention lately, they’re also wise. They’re Latinas, a 22 million + market
that is growing four times faster than any other, becoming a driving influence in fashion,
trends and culture, as well as the one market segment that direct selling companies are
racing to win over.
What’s not to love? Entrepreneurial and hard working by nature, Latinas own 39% of all
women minority-owned companies in the US. And because they are natural networkers
who love shopping and socializing, they make the perfect prospect for any direct selling
company across any category.
Companies like Avon, Mary Kay, Royal Prestige and many others, have been making
concerted efforts at targeting, recruiting and selling to the Hispanic market for years,
building a solid base in the market. “I think direct selling companies have finally realized
the tremendous growth the market is having not only in numbers but also in terms of the
purchasing and spending power the market has,” says Nelly Sepúlveda-Rathmill, VP of
Sales, Hispanic market at Princess House, a cookware and decorative products direct
selling company. Princess House, she says, has seen their Hispanic market grow from a
few hundreds in the late 80s to a current 12,000 distributors, or around 75% of their total
sales force.
So how does a company go about winning a Latinas heart?

UNDERSTANDING THE MARKET
“Most people think Latinas as a market are very homogeneous, and it’s really not. We’re
incredibly diverse,” says María Eugenia Bermúdez Price, President and founder of Mia
Mariú Cosmetics. “We may all be united through our language and similar values, but we
all come from very different kinds of backgrounds.” Mrs. Price should know. A Mexican-
American, Mrs. Price used her many years of experience in the corporate world to found
the only direct sales company built specifically for Latinas, by a Latina.

The Latina market is a complex one, to say the least. Besides the fact that Latinas comefrom 22 different countries of origin, there are differences within the market in terms of
language preference, geographical concentration, and acculturation levels. To take into
account only one of those factors when marketing to Hispanics is a common mistake.
Many companies, for example, try to go into the market thinking their only barrier is the
language, yet the truth is language preference is differ largely by generation. According
to the Pew Hispanic Center’s latest report, only 41% of Hispanic adults speak mainly
Spanish while 88% of second generation of adults, and 94% among the third and higher
generations speak mainly English.
This means that speaking to the market goes beyond just translating your copy to Spanish
and adding a picture of a Latina to your printed materials or adding a couple of Latinothemed
to your product line. As Mrs. Price puts it, “It’s truly about taking the time to
understand needs, preferences, desires and values of the market. You need to tap into the
experts in the market who can advice and guide you through the potential missteps that
can happen.”

BUILDING YOUR INFRASTRUCTURE
Once you have done your preliminary ‘homework’, it is important to develop your
company’s internal infrastructure, including customer service, sales staff, management
teams, independent distributors, and beef them up as needed to support your field.
According to Mrs. Sepulveda-Rathmill, “you must identify the people you may already
have, both within the sales force and within the company, who not only speak the
language but who are truly part of the culture, who live it and understand it. If you don’t
have anybody who does this, you must find them.”
This cultural connection is very important to Hispanics, regardless of their acculturation
level. Lisa Andrade, a top-ranked San Antonio-based field representative for Mia Mariú
who herself is a second-generation Latina, agrees. “It is very important, whether or not
you may be comfortable with speaking English, to feel that when you do something as
simple as picking up the phone to call the company, the person on the other line can
support you, not just in language, but can understand you from the cultural standpoint.
For this market, familiarity with the culture is essential.”

DEVELOPING A RELATIONSHIPJust as important is to bring everyone on board, including your sales distributors, and
work in a concerted effort with them to help them build a base. Some companies are
doing a very good job at this. Mary Leal, a top-ranked field representative from
Herbalife, says that in her company, some executives go as far as “taking Spanish lessons
just to be able to understand us and help us succeed. For me, it means we are valued, that
they are interested in my success.” Mrs. Leal, who is from Mexico and conducts most of
her business in Spanish, says she translated that company support into earnings of more
than $720,000 last year alone.
For Lilliam Melgar, who is the top-ranked representative for Princess House, says the
company support has been the key to her building a lucrative business that earns her over
$600,000 a year, even in the middle of this recession. “It has to be a team effort, working
together with your field,” says Mrs. Melgar. “The company has to keep the teams
motivated they have to invest in terms of people who understand us, in terms of
promotions and incentives. This partnership between us and Princess House, from
customer service, sales executives and communications teams dedicated to our market, is
what has allowed us more growth, more projection, a lot more success.”
While entering the Hispanic market can seem like a complex proposition for many
companies, at the end of the day, it is quite simple. As it is with trying to reach any other
market, reaching Latinas is about developing a relationship: a relationship with the
culture, a relationship with your employees as well as with your distributors. And just
like any relationship, it requires consistent actions that show your true, sincere
commitment. “A lot of companies are trying to create ‘divisions’, but sometimes it can
feel like the Hispanic division is the step child,” says Mrs. Price. Though she concedes
it’s very tough to gear to an individual market, “the key,” she says, “is finding the right
balance between catering to the needs of this market enough without abandoning your
general market position.”
In the end, it is about having a strategy that truly and actively reflects the diverse,
multicultural dynamic present in America today. Given how much there is to gain, the
key question a direct selling company must ask itself is not “can I afford to market to
Hispanics?” but really “can I afford not to?”

Spain's Prisa acquires 12 pct of V-me Hispanic network

Spain's Prisa acquires 12 pct of V-me Hispanic network

MADRID — Spanish media giant Prisa has reached a deal to acquire 12 percent of the US Hispanic television network V-me Media Inc as part of North American expansion plans, it announced Tuesday.

Prisa did not reveal the cost of the deal, which it said "provides for the future takeover" of V-me, the fourth largest U.S. television network targeting the Hispanic marketplace.

"This operation, a first for a Spanish media company in the United States, is part of Prisa expansion plans in North America, and demonstrates its commitment to the audiovisual sector as a strategic area of growth," a statement said.

"Prisa is the perfect partner for V-me," the statement quoted V-me chairman Carmen DiRienzo as saying.

The deal "offers great opportunities to develop new programmes and channels, both domestically and internationally, and to expand and develop brands through Prisa's radio, publishing and broadcast assets."

Prisa owns the Spanish satellite network Digital+, the television channel Cuatro, the country's leading daily newspaper El Pais, the business paper Cinco Dias, sports daily AS, as well as several radio stations in Spain and extensive interests in Latin America.

It has recently sought to sell stakes in key assets as it struggles with a 5.0-billion-euro (7.5-billion-dollar) debt.

Last month it announced a deal to sell up to 35 percent of its shares in its Portuguese subsidiary Media Capital to the Portuguese investment fund Ongoing Strategy Investments.

The same day it announced an agreement in principle to sell 25 percent of its Santillana publishing unit to equity firm DLJ South American Partners.

Jarritos ‘Biggest’ consumer promotion EXTENDED.

Jarritos 'Biggest' consumer promotion EXTENDED.
Oct-19-2009

Consumers collecting caps for rewards under the Club Jarritos
promotion will be glad to hear they have more time to win great
prizes such as High Definition TVs, MP3 players, money transfers
and soccer balls. The promotion with points under the cap for
Jarritos, Mineragua, and Jarritos Kids has been extended through
next year and now expires in December, 2010.

"Consumers are ecstatic about Club Jarritos with over 100,000
submissions since May when the program was launched. The most
popular prize being the official soccer ball used by the Mexican
Soccer team," said David Flynn, Novamex Marketing Director.

"In its inaugural season Club Jarritos has been a great success",
says Jim Lucero, managing director for Camelot Communications,
Novamex's agency of record. "In addition to radio we've been
pleasantly surprised at the response we've had through our online
and mobile media efforts, proving that we can engage our consumers
in new and innovative ways. That said, it's essential that we
keep our messaging fresh, relevant and exciting."

"Club Jarritos has pushed our sales with grocery stores, restaurant
and lunch trucks, everywhere really! The promotion has been
a relief for many businesses; the consumer is pleased to buy
Jarritos soft drinks plus a chance to cash-in their caps for
prizes," said Ricardo Figueroa, Novamex West Sales Director.

http://www.HispanicAd.com
The Tool for the Hispanic advertising & media professional



octubre 16, 2009

Algo interesante ... Tequila Patron

DE MAQUILADOR A PATRÓN TEQUILERO

Publicación: Mural - Newspaper

14 DE OCTUBRE DE 2009

Crece en ocho años la firma mil 356 por ciento. Proyectan producir 2 millones de cajas de 9 litros de tequila al cierre del año Jorge Velazco. Hace más de 20 años dos empresarios estadounidenses decidieron crear el mejor tequila del mundo. John Paul DeJoria y Martin Crowley lanzaron al mercado Tequila Patrón, una marca que muy pronto se convirtió en el tequila de mayor venta en Estados Unidos en los segmentos superpremium (de 40 a 100 dólares) y ultrapremium (de 100 dólares en adelante).

Inicialmente el producto lo maquilaban en la fábrica de Tequila Siete Leguas, pero en el 2002 comenzaron la construcción de La Fortaleza, su fábrica en Atotonilco, Jalisco.

Resultado de una acertada estrategia en mercadotecnia, Tequila Patrón se convirtió en un fenómeno de ventas y desplazó en EU a otras marcas tradicionales como Don Julio 1800, Selección Suprema y Reserva de la Familia. Los emprendedores encontraron en el segmento de los tequilas más costosos, un potencial crecimiento para los próximos años.

De hecho, en los últimos ocho años la marca creció a tasas superiores al 30 por ciento anual y para este año, aún con la crisis esperan incrementar sus ventas en un 10 por ciento.

En el 2008 la producción fue de 1.7 millones de cajas y para este año esperan llegar a las 2 millones de cajas de 9 litros de tequila. "Ha sido una marca que fue aceptada por el consumidor, porque Patrón fue uno de los tequilas que crearon el segmento ultrapremium y por su calidad y la manera que pudo conectarse con los consumidores", dijo Joe Arellano, vicepresidente para América Latina de Patrón.

La marca se comercializa en los rangos de precios que van desde los 50 dólares y hasta los 500 dólares como es el caso del Gran Patrón Burdeux.

En octubre pasado Bacardí Limited adquirió un porcentaje del capital accionario de Tequila Patrón. El gigante de la industria de vinos y licores compró las acciones de Martín Crowley, uno de los fundadores de la empresa, quien había fallecido.

Paul DeJoria, el socio de Crowley, se convirtió en el propietario principal de la compañía The Patrón Spirits Company, que tiene su corporativo en Las Vegas.

Hace unos meses Tequila Patrón signó un acuerdo con Bacardí para distribuir sus marcas en México, ya que antes solamente se vendía en ciertas ciudades y en tiendas libres de impuestos.

"El principal mercado por el tipo de tequila y el precio siempre fue Estados Unidos y ahora venimos a México de regreso con un mercado más abierto y con una categoría muy posicionada y por eso introducimos el tequila al mercado mexicano", dijo Francisco Alcaraz, director internacional y uno de los maestros tequileros de la firma.

Actualmente la empresa genera alrededor de mil 300 puesto de trabajo en las dos plantas que tienen en Atotonilco, Jalisco.

La compañía realizó una inversión de 6 millones de dólares en una planta de tratamiento de aguas residuales, además la compañía donó un millón de dólares en obras de beneficencia en el municipio.

octubre 14, 2009

Uncovering Steve Jobs' Presentation Secrets For his new book, communications coach Carmine Gallo watched hours of Jobs' keynotes. Here he identifies the five elements of every presentation by the Apple CEO By Carmine Gallo


The Apple music event of Sept. 9, 2009, marked the return of the world's greatest corporate storyteller. For more than three decades, Apple (AAPL) co-founder and CEO Steve Jobs has raised product launches to an art form. In my new book, The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience, I reveal the techniques that Jobs uses to create and deliver mind-blowing keynote presentations.
Steve Jobs does not sell computers; he sells an experience. The same holds true for his presentations that are meant to inform, educate, and entertain. An Apple presentation has all the elements of a great theatrical production—a great script, heroes and villains, stage props, breathtaking visuals, and one moment that makes the price of admission well worth it. Here are the five elements of every Steve Jobs presentation. Incorporate these elements into your own presentations to sell your product or ideas the Steve Jobs way.
1. A headline. Steve Jobs positions every product with a headline that fits well within a 140-character Twitter post. For example, Jobs described the MacBook Air as "the world's thinnest notebook." That phrase appeared on his presentation slides, the Apple Web site, and Apple's press releases at the same time. What is the one thing you want people to know about your product? This headline must be consistent in all of your marketing and presentation material.
2. A villain. In every classic story, the hero fights the villain. In 1984, the villain, according to Apple, was IBM (IBM). Before Jobs introduced the famous 1984 television ad to the Apple sales team for the first time, he told a story of how IBM was bent on dominating the computer industry. "IBM wants it all and is aiming its guns on its last obstacle to industry control: Apple." Today, the "villain" in Apple's narrative is played by Microsoft (MSFT). One can argue that the popular "I'm a Mac" television ads are hero/villain vignettes. This idea of conquering a shared enemy is a powerful motivator and turns customers into evangelists.
3. A simple slide. Apple products are easy to use because of the elimination of clutter. The same approach applies to the slides in a Steve Jobs presentation. They are strikingly simple, visual, and yes, devoid of bullet points. Pictures are dominant. When Jobs introduced the MacBook Air, no words could replace a photo of a hand pulling the notebook computer out of an interoffice manila envelope. Think about it this way—the average PowerPoint slide has 40 words. In some presentations, Steve Jobs has a total of seven words in 10 slides. And why are you cluttering up your slides with too many words?
4. A demo. Neuroscientists have discovered that the brain gets bored easily. Steve Jobs doesn't give you time to lose interest. Ten minutes into a presentation he's often demonstrating a new product or feature and having fun doing it. When he introduced the iPhone at Macworld 2007, Jobs demonstrated how Google Maps (GOOG) worked on the device. He pulled up a list of Starbucks (SBUX) stores in the local area and said, "Let's call one." When someone answered, Jobs said: "I'd like to order 4,000 lattes to go, please. No, just kidding."

5. A holy smokes moment. Every Steve Jobs presentation has one moment that neuroscientists call an "emotionally charged event." The emotionally charged event is the equivalent of a mental post-it note that tells the brain, Remember this! For example, at Macworld 2007, Jobs could have opened the presentation by telling the audience that Apple was unveiling a new mobile phone that also played music, games, and video. Instead he built up the drama. "Today, we are introducing three revolutionary products. The first one is a widescreen iPod with touch controls. The second is a revolutionary mobile phone. And the third is a breakthrough Internet communications device…an iPod, a phone, an Internet communicator…an iPod, a phone, are you getting it? These are not three devices. This is one device!" The audience erupted in cheers because it was so unexpected, and very entertaining. By the way, the holy smokes moment on Sept. 9 had nothing to do with a product. It was Steve Jobs himself appearing onstage for the first time after undergoing a liver transplant.
One more thing…sell dreams. Charismatic speakers like Steve Jobs are driven by a nearly messianic zeal to create new experiences. When he launched the iPod in 2001, Jobs said, "In our own small way we're going to make the world a better place." Where most people saw the iPod as a music player, Jobs recognized its potential as a tool to enrich people's lives. Cultivate a sense of mission. Passion, emotion, and enthusiasm are grossly underestimated ingredients in professional business communications, and yet, passion and emotion will motivate others. Steve Jobs once said that his goal was not to die the richest man in the cemetery. It was to go to bed at night thinking that he and his team had done something wonderful. Do something wonderful. Make your brand stand for something meaningful.
For more of Job's techniques, flip through this slide show. Then catch a video interview with Carmine Gallo about how he researched his book.
Carmine Gallo is a communication skills coach for the world's most admired brands. He is also a popular speaker and the author of several books, including The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience. More of Gallo's columns are available in hisongoing series. .


octubre 13, 2009

Televisa - Oportunidad en mercado hispano en EU


Oportunidad en mercado hispano en EU

Televisa genera alrededor del 11% de sus ingresos por contenido en el
mercado de EU a través de su relación con Univisión, el mayor distribuidor de
contenido hispano. Por suerte parece que los temas entre ambos ya se han
resuelto. Creemos que la oportunidad en el mercado hispano en EU podría ser
una fuente de crecimiento de largo plazo para Televisa. La población hispana
en EU representa aproximadamente el 15% de la población total de EU, pero
se estima que crecerá a 30% para el 2030 de acuerdo con el US Census
Bureau. Dos terceras partes de los hispanos son mexicanos y el 68% está
concentrado en cinco estados de EU.

?ui=2&view=att&th=1244ef7817088ad3&attid=0.1&disp=attd&realattid=ii_1244ef7817088ad3&zw

En términos de ingresos, el poder adquisitivo de la población hispana en EU es
mayor que el de la población mexicana en su totalidad.

Figura 12.jpg

A pesar de las cifras demográficas atractivas, el gasto en publicidad dirigido al
mercado hispano es menor que el del mercado mexicano. Además, el mercado
publicitario hispano representa sólo el 0.46% del poder adquisitivo de la
población hispana en EU, comparado con entre 2% y 2.5% del mercado
promedio de EU. Por lo tanto, creemos que durante los próximos años, el gasto
en publicidad para el mercado hispano en EU debería continuar creciendo. No
obstante, dada la desaceleración en la economía de EU, es posible que el
mercado hispano en EU no presente un desempeño tan fuerte en el corto
plazo.

Figura 13.jpg

Entre los participantes de medios en el país, creemos que Televisa tiene una
habilidad superior para establecer asociaciones de largo plazo con otros
grupos de medios. Esto debe de darle la oportunidad para consolidar su
presencia en el mercado de televisión de paga, invertir en el creciente
mercado hispano de medios en los EU, proteger su posición dominante y ganar
acceso a las producciones de televisión americanas que son de alto interés
para los televidentes mexicanos.

Televisa tiene atractivas oportunidades de crecimiento tanto en el país como
internacionalmente. El gasto en publicidad en México y en el mercado hispano
en los EU, está muy por debajo de los observados en mercados más
desarrollados. Televisa también está invirtiendo en plataformas de distribución
en México para capturar la baja penetración en servicios de televisión de paga
y de Internet.

Valuación

Otorgamos a Televisa un precio objetivo de P$61.2 por CPO o US$23 por ADR
a doce meses. Nuestro punto de vista es que Televisa ofrece una oportunidad
atractiva para los inversionistas que están dispuestos a ganar exposición al
crecimiento y baja penetración en los mercados mexicano e hispano en los EU
de distribución de contenido y publicidad.

Citigroup Global Markets - Equity Research

Language Barrier Suffice to say that Bimbo brand pastries are pitched to the Hispanic market

Language Barrier

Suffice to say that Bimbo brand pastries are pitched to the Hispanic market (truck was in front of a Hispanic market in South Austin or, bodega if you will). I love the name and the little cheery bear.

octubre 09, 2009

Immigrant marches and the backlash “Hoy Marchamos; Mañana Votamos”

Immigrant marches and the backlash

May 4th 2006 
From The Economist print edition

THE images filled the nation's TV screens: a million or more demonstrators, almost all of them Latino, marching peacefully through America's cities on May 1st in the hope that Congress would grant America's 12m or so illegal immigrants a right to reside in "the land of the free". On the same day, hundreds of thousands of poor Latinos forfeited their pay (and risked being fired) to emphasise their economic importance as both workers and consumers. As the banners proclaimed from Los Angeles to New York, "Hoy Marchamos; Mañana Votamos" (Today we march; tomorrow we vote).

The success of the protests was real enough, both in turning out the demonstrators and in boycotting the economy. At the twin ports of Los Angeles and Long Beach, only around 10% of the lorry-drivers turned up for work; in both California and Florida farm workers in their tens of thousands left the fields untended; in the Midwest, meat processors such as Tyson Foods closed shop for the day. Indeed, the economic impact would clearly have been still greater if several Latino leaders, including LA's mayor, Antonio Villaraigosa, had not been lukewarm about it. 

Mexican business invades America

Mexican business invades America

Aug 12th 2004 
From The Economist print edition

WITH around 39m people, Latinos have overtaken African-Americans as the largest ethnic minority in the United States. This has attracted the attention of politicians and academics—such as Samuel Huntington, who fears that traditional American culture is about to be wiped out. But, for the most part, American businesses have been oddly slow to react.

One reason may have been the belief that Latinos were the poorest segment of the population, and so could be safely ignored as consumers—a view increasingly at odds with the data. The Latino population is not only the largest minority, it is also growing by over 3% a year, compared with 0.6% in the rest of the population. Latinos are also getting richer; their income now accounts for about 8% of America's GDP and is expected to reach 10% by 2010. 

The Americano dream on the border between Mexico and Arizona

The Americano dream

Jul 14th 2005 
From The Economist print edition

AMERICA is going through one of its periodic bursts of high immigration. According to the Census Bureau, the country is home to about 34m people born abroad, half as many again as ten years ago. It is also going through one of its periodic panics about the subject.

Self-styled "minutemen" search for illegal immigrants on the border between Mexico and Arizona. Hospitals say they are being bankrupted by the cost of treating illegal aliens. The Republican Party is riven between those who want to crack down on illegal immigration and those who want to regularise it. 

Hispanic immigration is driving the Catholic church in America

Catholics in Texas

Nov 1st 2007 
From The Economist print edition

LAST week Trinity Church, near Dallas, staged its annual "Hell House". The production dramatised "real life situations" such as being controlled by demons. With entertainments like this, it is not surprising that Protestants are the most visible religious group in Texas. But they are not its largest. That honour goes to the state's Catholics: 6.5m of them in Texas today, up from 3m 20 years ago.

Hispanic immigration is driving the growth of the Catholic church in America, particularly in the south-west. According to an April 2007 report from the Pew Hispanic Centre, a third of Catholics in America are Hispanic. Yet most of the country's dozen cardinals are clustered on the east coast. The south-west has never had one though there has long been one in Los Angeles. On November 24th that will change.…

Hispanic families birth rate among unmarried Latinas has risen

Hispanic families

Hispanic families

Mar 19th 2008 
From The Economist print edition

EVERY Sunday Elias Loera stands behind a pulpit made from motorcycle parts and preaches family values to the people of Fresno. He rails against sinful living and neglectful fathers, yet is careful not to offend. Mr Loera reckons more than half of the women in his almost entirely Hispanic congregation are single mothers. He tries to avoid speaking of "father God", so dismal are many people's experiences with fathers in this struggling Californian city.

Whether Cuban, Mexican or Puerto Rican, most Latinos revere la familia. But the Hispanic family is changing. In the past ten years the birth rate among unmarried Latinas has risen from 89 to 100 per 1,000. It is now much higher than the rate among black or white women (see chart). Late last year came a significant but little-noticed announcement: probably for the first time, half of all Hispanic children in America were born out of wedlock. 

An article for you from Jose Arana.

- AN ARTICLE FOR YOU, FROM ECONOMIST.COM -

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THE NEW FACE OF AMERICA
Jul 9th 2009


Texas is the bellwether for demographic change across the country

AT THE age of 34, Julian Castro has pulled off a remarkable feat. On
May 9th, without even the need for a run-off, the polished young lawyer
won the race to become mayor of San Antonio, the largest
Hispanic-majority city in America and the seventh-biggest city in the
entire country. He joins Antonio Villaraigosa, the mayor of Los
Angeles, as one of America's half-dozen most prominent Hispanics.

The curious thing is that Mr Castro is only the third Hispanic mayor
in San Antonio's long history; the first, Henry Cisneros, was elected
only in 1981. America's Hispanics have a long way to go before they
enjoy the influence that their numbers suggest. "We do have a history
of failing to participate," he admits. "But we have been seeing a
series of big advances."

Things are indeed changing. At the national level voter turnout among
Hispanics was 49.9% last year, up from 47.2% in 2004, though still much
lower than the non-Hispanic whites' 66.1%. The body to watch is the
Mexican American Legislative Caucus (MALC), which claims 44 of the 74
Democrats in the Texas House (there is not one Hispanic Republican
there, a gigantic problem for the party). Trey Martinez Fischer, who
chairs MALC, is another young man in a hurry. "MALC is taking over the
Democratic Party here," he says, "and it is time for us to expand our
footprint."

The most pressing issue, he reckons, remains education. "We are
creating a majority population here that is limited in its skill set.
It is up to us: if we don't act, we are heading for disaster." But it
is not just education; Hispanics, he says, are poorly served when it
comes to access to capital, health care and public transport. "This
state", he says, "has not yet atoned for the sins of its past."

You only need to tour the Rio Grande valley, which stretches from
Brownsville in the east up almost as far as Laredo, to see what he
means. The valley includes some of Texas's fastest-growing and most
successful counties, such as Cameron County around Brownsville and
Hidalgo County around McAllen; Brownsville has boomed, thanks in large
part to its port, which serves Mexico's buoyant north. McAllen has also
become a favoured place for rich Mexicans to buy homes, educate their
children and squirrel their money away; its mayor, the engagingly
town-proud Richard Cortes, has big plans for an arts district, upmarket
shopping centres, a huge public library which he says will be the
fifth-largest in the country, and much else.

DOWN IN THE VALLEY
But you can also encounter poverty on a scale hard to find anywhere
else in America. More than 30% of the valley's population still falls
beneath America's official poverty level, according to Sister Maria
Sanchez of Valley Interfaith, a local charity. The poorest among them
are to be found in the COLONIAS, small settlements outside recognised
towns. There are around 2,300 COLONIAS in total, and the worst of them
still have large numbers of houses without running water. In recent
years state money has hugely improved some of them, such as Las Milpas,
outside McAllen. Others, like Los Altos outside Laredo, are a national
disgrace. "We are the richest country in the world, and we still have
this," says Jaime Arispe, of the Laredo Office of Border Affairs, as he
surveys a street that looks as if it could be in Port-au-Prince.

Others echo Mr Martinez Fischer's views, if not quite the passion with
which he expresses them. Rafael Anchia, another House member, was
recently tipped by TEXAS MONTHLY as the first Hispanic governor of
Texas--though not until 2018. He brushes the accolade aside, but like
Mr Martinez Fischer says that the state has systematically underfunded
public education and insists this will have to change.

Health care is another racial issue. Texas has the worst
insurance-coverage rates in America, and Hispanics, as well as blacks,
fare much worse than Anglos; most Americans get their health care
through their companies, but Hispanics and blacks are more likely to
work for employers who provide limited benefits or none, or to be
unemployed.

The flaws in the American health system are mostly a federal matter,
but Texas makes them worse by failing to take up available federal
dollars because of the need for co-finance by the recipient state; by
providing few public clinics; and by refusing to reimburse private
hospitals for the cost of emergency care for people who cannot afford
to pay, forcing them to jack up prices for others. It also operates one
of the least generous subsidy regimes for poor children in the country.

The reason why MALC will have to be listened to on all these counts is
demographic. The Hispanic population is constantly being reinforced by
the arrival of immigrants from across the Rio Grande, though economic,
political and security pressures have started to make the border less
permeable.

But international migration is not the main driver of Texas's booming
population. Texas's Hispanics, on average, are younger than the Anglos,
and their women have more babies. In 2007 just over 50% of the babies
in Texas were born to Latinas, even though Hispanics make up only 38%
of the population. Over the eight years to 2008, reckons Karl Eschbach,
Texas's official state demographer, natural increase (which favours
Hispanics) accounted for just over half the 3.5m increase in the
state's population, and migration from other states for almost half of
the rest.

Even if the border closed tomorrow, Hispanics would still overtake the
Anglos by 2034, reckons Mr Eschbach. Recent trends suggest that this
will in fact happen by 2015. More than half the children in the first
grade of Texas schools are Hispanic. And in the Houston public-school
district the proportion is 61%, notes Stephen Klineberg, of Rice
University. (African-Americans make up another 27%.)

Nor is it only Texas that is undergoing profound demographic shifts,
says Mr Klineberg. Texas today is what all of America will look like
tomorrow. At the moment there are only four "minority-majority" states
(that is, states where non-Hispanic whites, or Anglos, are in the
minority): California, Texas, Hawaii and New Mexico. He expects the
2010 census to show as many as 10-12 states to have passed that
milestone; by 2040, he thinks, America itself will be a
minority-majority nation.

The geographical spread of Texas's Hispanic population has changed in
a way that will change the state's politics. Most Latinos used to live
south of the I-10, the motorway that joins San Antonio to Houston,
notes Mr Anchia. But now Dallas, like Houston, has considerably more
Hispanics than Anglos: a little over 40% of the population against
around 30%. Mr Anchia himself represents a district that includes part
of Dallas and a swathe of prosperous suburbs, including some where
there have been nasty rows about illegal immigration.

Even public schools up in the once lily-white panhandle in the north
of the state are seeing their classes fill up with Hispanic children;
to take a random example, in tiny Stratford up on the border with
Oklahoma some 54% of the children at the local high school are
Hispanic. "Every single institution in this state was built by Anglos
for Anglos," says Mr Klineberg. "And they will all have to change."

COME ON IN
That might be easier than it sounds. Texas has proved far better than
the other border states (California, New Mexico and Arizona) at
adapting to the new, peaceful RECONQUISTA. In California, Proposition
187, which cracked down hard on illegal immigration, was heartily
backed by the then Republican governor and passed in a referendum in
1994, though it was later struck down by a federal court. This kind of
thing has only ever been attempted in Texas at local level, and even
then only very rarely.

Texas has always been a strong supporter of immigration reform that
would offer illegal immigrants (of whom Texas has close to 2m, about 7%
of its population) a path to citizenship. It has also always favoured
NAFTA. Perhaps that is because Texas was itself Mexican until 1836. For
centuries the border, demarcated by the Rio Grande, was entirely
porous, and its very length meant that much of Texas felt joined to
Mexico--a cultural affinity evidenced in the fact that the MARGARITA
and the FAJITA were both invented in Texas.

Only recently, at the behest of distant authorities in Washington, DC,
has this sense of propinquity seemed to weaken. Driven by anger
elsewhere in America, immigration officials raid businesses looking for
workers with false Social-Security numbers. Driven by post-2001 fears,
the number of Border Patrol officers is being increased from 6,000 in
1996 to 20,000.

Texans don't like this much. In April Jeff Moseley, president and CEO
of the Greater Houston Partnership, the city's chamber of commerce,
made a powerful speech to a Senate hearing in Washington in which he
rebutted the notion that undocumented workers are a drain on America's
resources. According to a study he presented, they are more likely to
be net contributors in fiscal terms. He argued that they mostly
complement rather than compete with domestic workers, and that they are
less likely to commit crimes than the native population. And he pointed
out that cracking down on illegals has had a perverse effect, ending a
pattern of seasonal or circular migration that has served Texas well
for many decades. Instead, it has encouraged the use of
people-smugglers bringing across whole families who then tend to stay.
It has fenced people in, not out.

Mr Moseley used the word "fence" calculatedly. Down in southern Texas
there is no five-letter word more likely to provoke anger. The way
Texans see it, the fence that is being built along a third of America's
2,000-mile long southern border is an expensive waste of time. It sends
an appalling signal to a friendly neighbour; it is easy to climb over,
with or without a ladder; it is easy to circumvent; it is bad for the
environment, because it cuts off animals from their water sources; and
it tramples on the rights of landowners, since it has to be built well
back from the riverside so as not to interfere with flood channels.

But if the fence itself is likely to have little effect on illegal
immigration, the fear of terror that gave rise to it, coupled with the
recession on both sides of the border and Mexico's murderous struggle
with the drug lords in its border cities, are certainly affecting both
the legal and the illegal sort of crossing. Everyone along the valley
of the Rio Grande seems to believe that the border is slowly closing.

At the extreme eastern end of the border, Jude Benavides, an ecologist
at the University of Texas at Brownsville, laments how life has
changed. "Three of my four grandparents are from Mexico," he says. "We
used to cross over the bridge to Matamoros just for lunch or dinner.
Now we don't go. We are scared of the violence, and it can sometimes
take as long as two hours in line to get back across."

The economy, too, is a powerful reason why people are crossing less
often. The Mexican peso has fallen by 18% against the dollar since the
beginning of 2008. That has hit retailers on the American side hard.
Mexicans in the northern border provinces have been hurt by the
collapse of America's car industry. Many of the MAQUILADORAS, factories
set up just on the Mexican side of the border to benefit from lower
wages and land costs, have specialised in making parts for Detroit. One
of Texas's main assets is a bit distressed just now.

DON'T MESS WITH TEXAS
So Texas has a huge challenge to cope with. But it seems wrong to end
on a pessimistic note. Texans above all are optimists, and few of them
seem to doubt that Mexico's proximity is a huge long-term source of
strength for the Lone Star state. That optimism, rooted in a profound
sense of local pride that can sometimes jar with outsiders, is Texas's
dominant characteristic.

It is the reason why the wildcatter, the independent oilman whose test
drillings might come up dry 20 times before gushing in the end, is an
enduring Texas symbol. And it explains why risk-taking is admired and
failure no disgrace. Most of the Enron executives who lost their jobs
when the firm went bust in 2001 quickly found new ones. The company's
offices in Houston were swiftly re-let. Enron Field baseball stadium
became Minute Maid Park. "Don't mess with Texas" was once a slogan for
a wildly successful anti-litter campaign. It is now the state's
unofficial motto.

To visit America in the midst of the worst recession for decades can be
a disheartening experience, but a tour of Texas is quite the reverse.
Since suffering that big shock in the 1980s, it has become a
well-diversified, fiscally sensible state; one where the great racial
realignment that will affect all of America is already far advanced;
and one whose politics is gradually finding the centre. It welcomes and
assimilates all new arrivals. No wonder so many people are making a
beeline for it.


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