Nissan and the Hispanic Market Segment

By: Daniel Moore, Sarah Cowden, Katie Harker

Introduction
At 16.3%, the Hispanic population currently makes up the largest and fastest growing minority group in the United States. Nissan wants to take advantage of that large market and expand its full-line of vehicles into the fast growing, millennial population. In order for Nissan to globally expand their companys awareness, they need to understand the Hispanic market culturally in order to best appeal to this specific multicultural demographic. More specifically, Nissan seeks to appeal to bilingual Hispanics consuming in-language media by focusing on the value of cultural cues so that they may develop a tactic that will appeal to the desired segment. The cultural cues that Nissans marketers and researchers are to focus on are aspects such as the Hispanic millennials varying styles of living, attitudes, customs, and behaviors that not appeal to them in campaigns but are major considerations for purchasing decisions. The purpose of this study is to identify these cues in the in-language magazines that the millennials often read. By looking at advertisements in Spanish-language magazines, we are able to gather culture-specific insights to appeal to the Hispanic segment. Supplemented with statistical case studies provided by MRI, we are able to better develop a more precise and current Hispanic profile for the advertising and marketing teams at Nissan North America.

Multicultural Millennial
The multicultural millennials are made up of the African American, Chinese, and Hispanic segments. Because all three of the individual markets combined make up a large group, the size of each segment is taken into consideration. The Hispanic segment, the largest of the three, represents 49% of the multicultural millennial mix. The African American segment follows closely behind at 34% and the Chinese, the smallest of the three, makes up 17%. The multicultural millennials among all three segments are generally between 18-29 years of age which makes the Generation Y millennials part of a younger market. Despite age being a more tailored segment, the gender market is not. All three markets see a domination in gender in which males are more represented by making up 57% of the total population. Although various aspects of demographics such as segment size and gender are important, the psychographics of the multicultural millennials are key considerations. Not only does each segment individually have its own way of life and attitudes, but all three markets combined shared common behaviors. Each of the multicultural segments tend to pay attention to aspects such as style and quality when making a big buying decision. A common theme found among the varying segments is that the individual millennial in each market finds importance in identifying ones self with his or her country of origin. This is highly important because the millennial represents a race and ethnicity as opposed to a particular country in which demographics and psychographics differ.

Hispanic millennial
Hispanics are largest minority group in the country, living not only in the West but all over the continental United States. The top 5 Latino markets are Los Angeles, New York City, Miami, Chicago and Houston. The American Hispanic speaks Spanish mostly at home where he or she watches in-language television and reads in-language magazines (even if it is People or Cosmopolitan) Of the in-language media consumption, 75.4% of Hispanics read magazines. Research has found that Hispanic/Latino teens respond best to bilingual advertising messages especially those from English-language celebrities who happen to slip in some Spanish because it mirrors their own usage patterns. The Hispanic millennials are proud people to not only be Latino, but also to be from their country of origin. With 22 major countries represented in the United States, the Hispanic people add their own Latin flair to the American melting pot. The Hispanic Millennial is in the process of growing its young family by spending more per household on groceries, phone services, major appliances, vehicles, childrens clothing, and footwear than non-Hispanic consumers. Proud, bilingual, connected, and family focused are the terms to sum up the Hispanic millennial.

Hispanic Media Consumption

Magazines Provides me with practical advice It makes me smarter 57% 44 TV 51% 37 Radio 42% 34 Internet 47% 36 52

It entertains me 63 72 61 Source: Synovate Research 2006 for Hispanic Magazine Coalition

According to a Mediamark Market report: Nearly three quarters of Hispanics/Latinos say that magazine ads provide them with useful information on new products More than two thirds of Hispanics/Latinos say that magazine advertising gives them good ideas of what to buy More then 60% of Hispanics/Latinos say they like magazine advertising andMagazine advertising entertains me Half of Hispanics/Latinos agree they trust magazine advertising Nearly half of Hispanics/Latinos agree that Magazine ads provide me with something I cant find in other media like TV, radio or the Internet

Cultural Cues
When conducting our research, we noticed recurring patterns of advertisement methods that hinted at cultural cues. For instance, we learned that the Hispanic market segment seeks to be technologically savvy and advanced, along with possessing the newest products. This observation is reflected by the Kia, Ford, and Mitsubishi advertisements we found in Veja: they zoomed in and focused on the new and special features with which the vehicles were equipped. Along the lines of being up-to-date or even ahead on technology, a Nissan advertisement found in Veja focused on the social networking sweepstakes. By featuring social media, Nissan triggered the Hispanic interest in being ahead of the game. Lastly, the teenage Hispanic consumers respond best to bilingual messages. And in the Hispanic magazines we studied, such as Veja, the Jeep advertisements featured both the English and Spanish language.

Separate Key Insights

According to the MRI case study titled, Hispanic/Latino Market Profile, Hispanic Millennials respond best to magazine advertisements, which is why we studied magazine advertisements as opposed to broadcast or online. Other key insights noted are: Nissan wants to be an innovative brand; Nissan wants to establish itself as an indicator of status; and Nissan wants to provide a new identity for Nissan vehicle owners.

Nissan as a Brand
Known worldwide as a car manufacturing company, Nissan makes a variety of vehicles ranging from sedans and sports cars to SUVs, minivans, and trucks. As a popular American brand, Nissan allocates a certain amount of money to the advertising and marketing of their automobiles, particularly their most popular model the Altima. Technology has played a prominent role in almost every aspects of the economy over the past 10 years. The automobile industry has been no exception. Nissan has recognized the prominence of the fast-paced and ever changing technology world and, therefore, had adopted the main theme of innovation for their marketing and advertising purposes. Formally known as Nissan North America (NNA), the company is focused on diversity and is not solely identified with the United States and the American market. Nissan has recognized the importance of multiple multicultural segments and has made it key for their company to expand and extend their commitment of quality and excellence to the international market. The recognition of diversity within the company has placed much importance on the brands communication with all of the multicultural segments.

Nissan Can Move Into the Hispanic Segment

Nissan is the brand of innovation. Understanding that the target wants to identify themselves separately, or are proud of their culture can push Nissan to use innovation as a means of identification or status. Hispanics are interested in the flashy features of a vehicle as well as the specs, looking for an optimum product but at the same time need something to support their young families, not a sports car. Nissans Rogue and Altima fit the category of family car. Knowing that Hispanics/ Latinos are 14% more likely to plan to purchase a new car in the next two years than the general population is key in positioning themselves in the right buying space for the Hispanic Millennial.

Creative brief
Marketing Challenge:
Nissan faces a problem appealing the Hispanic Multicultural Millennials and therefore needs to show how they fit into the interconnect, fastpaced web of the segment.

Communication Purpose:
Nissan is another reflection of the targeted segment and how those members identify within their culture as a Nissan driver.

Target Audience:
Multicultural Millennials, specifically the Hispanic segment. The hip Latino that is generally bilingual, frequently uses magazines for trend insights, and has the scoop before other friends do.

Key Insight:
Latinos trust in-language magazine advertisements and use that to inform themselves about products and trends.

The Creative Idea:

Nissan as a brand elevates your status.

Motivating Support Points:

The research behind the advertisement that shows Latinos of the Hispanic Millennial segment trust magazine advertisements over other mediums.

Brand Character:
Innovative, trustworthy, diverse, sleek, affordable Executional Considerations: Integrated print and social media campaign. Encourages consumers to update their status.

Positioning Statement
To the Hispanic men and women ages 18-29 who are in touch with their self style and appearance and live by current societal trends. Nissan is the brand of a full-line automobile manufacturer competing mainly with companies like Toyota, Honda, Ford, and Chevy as well as other means of transportation such as bicycles and public transit that allows consumers to purchase an affordable and stylish car. The Reason-Why is because it identifies with the status and style of its consumers. The Brand Character is a popular and trendy friend who one goes to for style advice.

References
Dominguez Moreno, Manuel, ed. Cambio 19 Sept. 2011. Print. Hyundai. Advertisement. Cambio 14 Nov. 2011. Print. Magazine.Publishers of America. Hispanic/Latino Market Profile. Mediamark Research Inc. Nissan NSAC Case Study Perin, Katin, ed. Veja July 2010. Print. Perin, Katin, ed. Veja Nov. 2011. Print. Perin, Katin, ed. Veja Oct. 2010. Print. Yuste, Miguel, ed. El Pais Seminal 18 Dec. 2011. Print. Yuste, Miguel, ed. El Pais Seminal 20 Nov. 2011. Print. Yuste, Miguel, ed. El Pais Seminal 22 Jan. 2012. Print.