How to win the heart of the Latin American market?

Public Relations Branding and Creativity Corporative

Jaspar Eyears

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Latin America is an enormous contrast region and is involved in a cultural revolution that offers great challenges for brands. Nowadays, we may see that the Latin American population is young in general, that several countries in the region are on the way to becoming power countries, that Internet use and connectivity are growing rapidly, that technology is more accessible and that the economies, in general, are healthy.

Therefore, it is a fact that several foreign companies are increasingly focusing on our subcontinent, which, as well as having many attractions, also has enormous challenges that are exacerbated if we mistakenly see the region as a uniform whole: it's true that Latin Americans have things in common, but each country is different and requires a particular communication strategy so your brand doesn't suffer an irreparable setback when going to market.

One of the keys to making an effective entry into Latin America is to use the common elements of the region, but at the time of the message spreading, it will be necessary to incorporate the particularities of each country.

In this article, we will talk about the particularities of the Latin American audience, its press, the famous "tropicalization" and other aspects to take into account to make the region fall in love with your brand.

How do Latin the American market buys?

According to a NSB, report, these are 5 insights about the Latin American consumer behaviour, which, as you will see, have to do not only with the economy but also with culture and technology:

The need for quick options

Do you think it's a coincidence that in recent years that small businesses and other fast food and drink chains have multiplied exponentially, like Starbucks or McDonald's? The business of consumer franchises is very lucrative in our region because there is a growing need for quick options, not only to eat or drink but also to have fun, get dressed, reload your cell phone, etc.

Fact: in Brazil, small supermarkets, and convenience stores grew 6% in 2015 and in Mexico 19%.

E-commerce strengthen.

Although most people still prefer to go to the store, the growth of internet penetration has caused more and more Latin Americans to go to online stores to buy everything.

Local brands preference.

Whether it's because of its price, freshness or national pride, Latins prefer to buy local brands, that's why it's so important that if you're going to the region through a purchase, merger, joint venture, etc., you know that change the local brand's name is not an intelligent movement. It's worth mentioning that for buying electronic products, cars, and health products, Latin Americans still prefer foreign brands.

Search for healthier products.

Latin America has very high rates of obesity, so its inhabitants are becoming increasingly aware of that.

The population aging.

It is true that, nowadays, Latin America is young subcontinent, but that will change radically in the coming decades. Today, people over 65 exceed 40 million, is 7% of the total population, but it's estimated that this segment will increase to reach 83 million in 2020.

In addition, other characteristics of the Latin American consumer that you must take into account are:

Proclivity to the novelty: many Latin Americans are daring to buy and try things and experiences for the first time, especially luxury items, gourmet and airline tickets to distant destinations.
Flexible life and trust economy: Uber, Airbnb, all-inclusive rentals and indefinite-time contracts, individual service payments, etc.
Flexible price and benefits: latins no longer go with the first offer, but compare and seek discounts, now they go with the brands' competition. Therefore, it's common for people to change their "favorite" brand constantly.
Status: While it is true that luxury products are no longer "forbidden" for many Latin Americans, people also look for status by engaging in altruistic activities.
Autonomy: they no longer want anyone to make the decision for them, but to receive all the necessary information so they can decide the purchase, individually.

Latin American society formation by age

To join with firm step any market, it is important to know how its population is in order to establish objectives and a coherent communication tone with the target audience. This is how the Latin American society is composed:

Millennials: 24%
Baby Boomers: 24%
Generation Z: 20%
Generation X: 16%
Silent generation: 12%

Latin American press particularities

Surely you are aware that press is a key to successfully undertake your communication strategies, in case you want to address the mass audience. Working hand in hand with journalists will not only allow you to spread your messages organically and coincident with the tone and needs of the brand, but you will also have the necessary feedback to know the concerns of your audience.

The first thing you have to take into account is that the Latin press most of the time prefers to do all their coverage in person, as well as agreeing on interviews in informal preference contexts. In other words, they prefer the proximity and put a face to the "cold" emails they receive every day. It's important you consider in your public relations plan some events, presentations, and conferences to show you close to the journalist.

Now, we will talk about some formal aspects of the Latin American press status so that you consider it in your introduction strategy:

In recent years the number of readers has increased, especially due to the appearance of free newspapers and the increasing internet use. From 2002 to 2010 it went from a reading of 6.2 newspapers per 100 people to 6.7 for the same number of people, according to data from the consultancy PwC.
The Latin press is highly mixed, that's why it's convenient for you to detect one that is specialized. However, popular and traditional presses are the ones that have the most influence.
The consolidation of the large publishing groups has led to the press exerting a great influence on society, politics and the economy of the countries. An example of this is Grupo Imagen in Mexico, Grupo Santo Domingo in Colombia or Grupo Clarín in Argentina.
The trend for the following years is that the printed press will not disappear in the region, but will be complemented by digital.

Storytelling and Latin society

Storytelling is one of the most effective techniques not only to tell stories about your company but to make them transcend and stay in the mind of your target audience in order to make them do a concrete action.

To make your storytelling effective, it's very important you connect with your audience at an emotional level, and to achieve this you must know your audience. Some of the stereotypes that define the Latin American societies (according to the same population of the subcontinent) are:

Cheerful
Sympathetic
Hospitable
Nationalists
Hard-working
Supportive
Friendly
Easy
kind
Warm
Passionate
Party-going

Additionally, these are some characteristics that get closer to all the Latin Americans:

History
Language
The ability to join when they are abroad, even if they are from different countries
Sense of humour
Solidarity

So, when you think about doing storytelling, use these elements into your communication efforts, but beware: it's not about changing your brand personality just to please or "merge" with the Latin American audience. Your essence must remain intact, but it is essential that you be aware of how "the rules of the game" are in the region you are going in order to adapt to them.

Steps to follow to conquer to this new market

Once you have all these aspects clear, it's time to develop your plan to introduce your company to the region. Follow these steps:

Watch, investigate and learn

Before launching your communication campaign, take into account that your best weapon is education. Study your next new market, no matter how many times you have to ask yourself questions. Base your actions on hard data and, if possible, hire native communication executives to give you effective insights.

Ask yourself the right questions, for example:

How can I make my product or service attractive?
Will the language be a barrier?
Does the name of my company give rise to some misunderstanding or mockery when a Spanish speaker reads it or hears it?
What legal aspects of the country should I take into account?

Try to create profiles of your target audiences and find out how to reach them, which channels are the most appropriate according to the country you are going to penetrate, and what type of content will leave a mark on your audience.

Brand building

No matter how big or long-standing your brand is, when you enter a new market you will have to start practically from scratch.

Lean a lot on your marketing team so that your audience begins to recognize you clearly and concisely. Then your communication agency should expand and amplify your messages using other channels, such as the press.

Hire recognizable and trustworthy spokespersons for your target audience, that will always be a great help to "land softly" in an unknown place. Imagine that the spokesperson will be your "tourist guide" or that friend who lives in another country and introduces you some friends so you don't feel excluded when you visit.

Organize or take advantage of third party events

Before going with everything to this new region, organize one or several events that bring you closer to key agents of your target audience to make them see you and that you have many plans for the future.

Now, if you want to go a little slower, look for presence in events organized by third parties, so you will get many insights and will make key contacts to make everyone starts to see you.

Don't forget to invite the journalists! Send them emails or contact them in advance to create expectation. Deal exclusively with key media in the region.

Tropicalization importance

If your company is about to enter Latin America, surely you have heard a lot about tropicalization, which is defined as the adaptation of an idea or campaign according to the place where it will be implemented.

But in the tropicalization, we cannot remain only with the product or service adaptation, but we must also consider all the brand communication efforts (from the slogans), taking into account the culture, the use of the language, the customs and habits of this new audience.

There are several "masters" in tropicalization that we should mention as an example of what you should do when entering a new market:

When McDonald's came to Italy, a wine-consuming country, it implemented the possibility that people in its restaurants could buy wine with their hamburgers. In addition, it withdrew all the beef from India to respect the beliefs of its audience.
Starbucks always incorporates local ingredients and flavors to their drinks.
Absolut Vodka produces bottles designed by local artists and even "changes" its brand depending on where it is sold, such as Absolut Los Angeles, Absolut Istanbul, Absolut Mexico, etc.
As part of its international expansion, CEMEX has acquired local construction companies but has not changed their names, so the public doesn't change their perception of them.

Now, who has done it wrong? There are many funny stories of companies that when entering the hispanic-speaking market fall into embarrassing situations because they don't consider an adequate communication strategy. Let's see some examples:

The airline Braniff had a slogan in English that sought to promote the luxury of the seats in their airplanes, saying "Fly in leather", but it was translated into Spanish as "Vuela en cueros", something that was associated with the nudity.
The Coors beer translated its slogan "Turn It Loose" as "Suéltate" into Spanish, something that can be interpreted as having diarrhea.
The agricultural products brand Frank Perdue translated its phrase "It takes a tough man to make a tender chicken" to a very strange thing that had to do with a sexually aroused man who seduced a chicken...
The Parker pens brand arrived in Mexico saying “no chorrea en tu bolsillo para embarazarte” ("do not drip into your pocket to get you pregnant") when the original slogan was "It will not leak in your pocket and embarrass you".
The American Dairy Association wanted to replicate its famous, "Got Milk?" Translating it into Spanish as “¿Estás lactando?” ("Are you nursing?").

And an example of something that is not Latin American, but that perfectly demonstrates the importance of tropicalization is when Gerber started selling food for newborns in Ethiopia, left on the labels of its packaging the famous face of the baby that appears on its logo, but it had no idea that the products sold in that African country display photos of what the product content, since a large part of the population does not know how to read. Do we need to say more?

The importance of a public relations agency in the process of entering the Latin market.

As you saw in all the subjects discussed, undertaking the adventure of entering the Latin American market is not simple but neither is it impossible. However, one way to ensure good results is to have an agency that gives you certainty and supports you throughout the process, which not only includes the execution of your communication campaigns but also before (the planning) and after (monitoring).

A public relations agency can help you with the following aspects at the moment of going into a Latin American market:

Knowing from inside the media work and behavior.
Tropicalize your messages considering not only the spelling, writing, and idioms, but also the country's culture.
Be your contact with key agents, opinion leaders and influencers of the region.
Inform you about the socioeconomic situation of the country or countries.
Investigate and perform all the market studies, marketing plans, and public relations necessary.
Organize events such as press conferences, interviews, conferences and presentations to get in touch with local journalists.
Manage your presence in events organized by third parties that could be useful as an introduction to the market.
Come up with appropriate storytelling products to the context and that use the most effective features to provoke the target audience.
Identify suitable spokespersons to meet your brand objectives.

We can guide you throughout this process to ensure excellent results and a smooth and painless "landing" in the Latin market. Let's talk about it!