Value-driven

The Hispanic population in the U.S. is highly concentrated in a few states and metropolitan areas. For high ticket items, like major appliances and furniture where advertising budgets have been limited, this level of concentration can be used to the advantage of advertisers. Although the Hispanic population comprises only about 15% of the population, this group can be reached through less expensive local and regional advertising, and even through sub-branded stores (like Walmart’s Supermercado de Walmart if it was expanded to non-grocery items) in markets with large numbers of Hispanics. The great level of population concentration affords a more cost-effective opportunity than a national campaign. It also allows for effective test marketing. Once a campaign has proven effective in one region, it can be rolled out to other Hispanic markets.

For several high ticket items, both the share of households that purchased the item and the share of households spending at the highest level ($1,000+) jumped significantly at the $50K income level or more. Identifying and marketing to these households should prove fruitful. They are more willing to spend at the highest levels and appear to purchase the item more frequently than one would expect based on income alone.

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