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New Co-Op Targets Hispanics
Nov 1, 2002 12:00 PM , Patricia Odell
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A co-op mail program seeking to reach Hispanics will be rolled out this month to 1.3 million households.

The mail package, Carmen's Cupones y Consejos, isn't just filled with coupons. It also offers advice to Hispanic consumers seeking acculturation in the United States, said Shane Walters, founder of the year-old Walters Media Group Inc., which publishes the co-op.

About 14 advertisers will appear in the mailer — double those of the test mailing sent out this summer to 500,000 households.

America Online, which also participated in the test mailing, will insert its ubiquitous CD offering 1,000 free hours. Kraft Foods will make its first appearance with a 12-page booklet under the product name Comida y Familia (food for the family). The bi-lingual booklet contains recipes and nutritional information as well as cents-off coupons for Kraft mayonesa, a Hispanic product combining mayonnaise with lime juice. It also contains coupons for Ritz crackers, Oreo cookies and Jell-O.

Also joining the mailing are the Columbia House Latin Music Club, Latina magazine, Disney Home Video, Grolier children's books and Oreck vacuum cleaners.

Packed in a 6-inch by 9-inch glossy envelope, the co-op targets Hispanic-American households with females aged 25 to 40, and children up to age 18. The average income is $25,000 per year, but could skew higher in households with multiple families, Walters said.

Walters feels the Hispanic market is not well served by direct marketers.

The Census Bureau reported that 35 million Hispanics — 13% of the population — live in the United States. By 2010, that number is expected to increase to 65 million. Hispanic purchasing power is estimated at $452 billion per year, yet only 2% of the average U.S. marketing budget goes toward serving them, Walters said.

He added that Hispanics receive an average of 20 direct mail pieces a year, compared with about 300 for the general U.S. population.

“There's no mailbox clutter, thus a greater response,” Walters said.

To find its target, Walters Media Group tapped its proprietary database of around 5 million names. The records in the compiled file were identified by unique last and first names. Geographic mapping helped Walters confirm the locations of the target populations. The names are updated quarterly and verified with random telephone calls.

The first test was mailed in June and July to 500,000 households in 25 markets. The results of the test were strong enough to attract several repeat advertisers.

The rollout mailing, scheduled to begin Nov. 4, will hit seven markets: Chicago, Houston, Los Angeles, Newark, New York, Phoenix and San Antonio.

Carmen's Cupones y Consejos co-op program shares a business-to-business Web site (www.ethnicprograms.com) with Imani, an African-American co-op. That mailing program is expected to relaunch to coincide with Black History Month next February.

Advertisers pay $35 per thousand or 3.5 cents per home. Ad size is 8-1/2 inches by 5-1/2 inches. Ads on the outer envelope are $45 per thousand, and a combination of outer envelope plus an insert is $60 per thousand.

Walters plans to mail the co-op four times per year and reach 10 million households in 2003.

The next mailing is scheduled for March to 2.5 million Hispanic households.



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