The Latino population in America is growing at an amazing rate. According to the U.S. census, there are more than 43 million Latinos residing in the U.S., making them the largest minority group in the country and a significant part of the consumer market. Kelly McDonald, president, McDonald Marketing has created specific strategies and tactics for developing effective messages and products geared toward the Latino market.

To capture the business of the Latino market, automotive businesses must understand the culture and recognize the rate at which this culture is impacting the U.S. In 2003 there were 38.8 million Latinos in the U.S. In 2010, the Latino population is estimated to make up 56 percent of the U.S. population and in 2020 the estimate grows to 80.4 million, with one in five U.S. residents expected to be of Latino ethnicity. The population is exploding and it’s here to stay.

According to McDonald, “This [growing Latino market ] is the biggest thing to happen in marketing since the Internet.” And businesses must begin to take action now in order to reap the benefits from this huge consumer group.

The average income for a Latino household is $45,701 and that number is growing. That means that most of the people in this group are middle class and have a considerable amount of buying power. When Latinos buy products, they have the highest percentage of loyalty to brands and service than other ethnic group. The percentage of Latino brand loyalty is 64.4 percent. This loyalty spreads as Latinos tell their neighbors and family about the products they love or about the excellent service they have received.

In addition to loyalty, Latinos have many other attributes that are quite favorable to business owners. McDonald said that Latinos have cash, are brand conscious, place high value on quality products, they value distinction and transactions are not solely defined by price. All of these attributes are good news for the automotive industry because the amount of new car vehicle purchases made in the U.S. by the Latino population has steadily gone up in recent years whereas non-Latino new vehicle sales in the U.S. continues to drop.

In fact, the first purchase that most Latino’s consider a sign of success is a truck. A home comes in second. Nearly one out of 10 vehicles are sold to Latinos and this group typically spends more money on service and parts and accessories than non-Latinos. Latinos spend 22 percent more on parts and accessories, 104 percent more on vehicle audio equipment, 23 percent more on drive shaft and rear-end repair, 19 percent more on steering front-end repair and 21 percent more on vehicle inspections. However, this group spends less than non-Latinos on service and repair (47 percent) and paint work (33 percent).

Here are some examples of marketing strategies provided by McDonald Marketing:

* Learn the Spanish language. Spanish is spoken by 74 percent of Latinos in the home.

* Hire a bilingual staff. A staff with some bilingual members makes Latino customers feel more at ease and word will travel about your diverse staff.

* Recalibrate your product mix. Bright colors and more decoration are appealing to the Latino group.

* ”Put the welcome mat out.” Be Latino-ready and Latino-friendly. Display bilingual signage and display key information in Spanish as well as English.

McDonald Marketing is a full-service marketing and communications firm, specializing in market segmentation and multicultural marketing.