Accentmarketing, Chevrolet's new Hispanic ad agency, will develop national ads but will also craft regional promotions for seven key areas: Miami, San Diego, San Antonio, Houston, Dallas, Los Angeles and Chicago.
These cities account for 40 percent of U.S. Hispanic car and truck registrations, according to Cavalier brand manager Steve Wagg.
Last month Chevrolet's ad agency, Campbell-Ewald of Warren, Mich., chose the Miami-based Accentmarketing to hone Chevrolet's ad strategy for the U.S. Hispanic market.
The Cavalier is a natural for Hispanic buyers, Wagg said.
'For the Hispanic community, small cars are king,' he said at the launch of a Spanish-language automotive magazine, Automovil Panamericano, in Detroit last month. He said 37 percent of all cars registered to Hispanic buyers are small cars.
Although Hispanics bought over 11,000 Cavaliers in 1996 - 5.4 percent of the car's total - that is still 'not good enough, by any stretch of the imagination,' said Wagg.
10% OF POPULATION
The U.S. Bureau of the Census estimated the U.S. Hispanic population at 28.6 million on July 1 - 10.7 percent of the U.S. population. By 2010, the group is projected to reach 41 million - almost 14 percent of the population.
With numbers like those, Wagg said, it is a market 'no manufacturer can afford to overlook.'
Wagg said Cavalier has more than doubled its ads for the Hispanic market since 1995, the same model year the car was redesigned. Cavalier will spend 'significantly more' money on Hispanic ads in 1998 than 1997, according to Wagg.
Chevrolet's Spanish-language spots won't just be translated English-language ads. The company should 'not only speak to these communities in their native language, but also speak to them in a culturally relevant way,' Wagg said.
He said that culturally relevant ads result in a 40 percent higher ad recall and 56 percent higher comprehension than those that are not.
Even though Cavalier's market is young, that does not necessarily mean its Hispanic buyers want fast cars for fast lifestyles. According to Wagg, Hispanics are more family-oriented than Anglo-American youths. He said ads depicting family events such as weddings work better than those portraying, say, a ski-bum lifestyle.
Chevrolet declined to pin a dollar amount on the account. The June 16 issue of Advertising Age, a sister publication to Automotive News, reported it at $20 million. Miami-based marketing group Lezcano Associates had pitched Chevrolet to the Hispanic market since 1995, when the division began in earnest to appeal to Hispanic buyers.