Direct-Mail Firm Tries to Bring Advertisers Closer to Home

Salesman and marketing veteran Vincent Andoloro saw opportunity in the Latino market and decided to start a direct-marketing company to help businesses reach this growing base of consumers.

His company, Latin-Pak, uses door hangers, newspaper inserts and direct mail to deliver ads, coupons and samples right to the doors of Latino families across the country--the only California business specializing in this direct-marketing niche.

Andoloro started Latin-Pak out of his Malibu home a year ago after coming up with the idea during a stint as a consultant to a small national Latino magazine, Mundo Deportivo.

“I realized that one reason advertisers aren’t coming into this market is there aren’t affordable direct-marketing vehicles,” Andoloro said.

Companies targeting Latinos typically use Spanish-language television and radio ads. But they can be expensive for cash-strapped medium and small businesses, which have had few other options in marketing to Latinos.

Latin-Pak’s more affordable, customized programs help these businesses zero in on Latinos in their immediate areas. “Micro-advertisers,” as Andoloro calls them, can put coupons in door hangers for 3.5 to 4 cents per household. For 40 to 80 cents, they can advertise in a Latin-Pak mailer--akin to a Spanish-language Val-Pak--personalized with the family’s name.

Latin-Pak conducts similar promotional campaigns for bigger companies that want to reach a larger audience. The door hangers or mailers go out in several cities with large Latino populations, such as Los Angeles, New York and Chicago. The newspaper inserts can be placed in 42 Latino publications nationwide.

For many businesses, marketing to Latinos is no longer a luxury but a necessity.

This diverse ethnic group spent $228 billion nationwide last year--an average of $30,000 per family, according to Strategy Research Corp., a consumer-research firm in Miami. This represents a 10% increase from just two years earlier.

“Hispanics are not only important in terms of the number of people, but also because of their buying power,” said Dick Thomas, senior vice president for Strategy Research. “These dollars can influence the success of a brand.”

As advertising to this group of 29.3 million consumers grows, so has the need for different ways to reach them. Latin-Pak’s own rapid growth is evidence that the need is great. Andoloro started his operation with a $40,000 investment and said he expects sales to reach $400,000 by the end of his first year in business in September.

Much of his day is spent on the phone, trying to convince advertisers to spend part of their budgets on this market. The New Jersey accent of this fast-talking Italian-American bleeds through his conversations.

“I’m getting a lot of people saying ‘OK, let’s give it a shot,’ ” Andoloro said. “Most of these businesses have never marketed to Latinos before.”

Armed with updated census information, Andoloro breaks down ZIP codes, tracking high concentrations of Latino families that earn $20,000 or more per year.

As a small-business owner, Andoloro is always on the lookout for deals to reel in clients or to save money. Right now, he’s offering three 30-second spots on Spanish-language Channel 52 for free. In exchange, Channel 52’s name is printed on the plastic bags delivered to every door. He also provides free coupons for his clients on Latin-Pak’s Internet site: https://www.LatinPak.com

In the short time he’s been in business, Andoloro has attracted clients such as Columbia House, Sea World, Tropicana and Gerber Life Insurance Co.

Another customer, Pied Piper Pizza, increased its business at two locations with coupons distributed door-to-door by Latin-Pak.

“Overall, it does better than the mail,” said Pied Piper’s marketing director, Don Pijut, “because you can target the customer a little better.” The neighborhoods around the two pizzerias, Bell and Pacoima, are 80% Latino.

Before starting Latin-Pak, Andoloro was running a small direct-marketing business for the general market, Malibu Shopping Network. He saw greater potential, however, in specialized marketing.

So he sought out a Malibu investor to provide the start-up money, in exchange for a 50% share in the business. He hired a translator and a couple of office assistants and developed publicity materials.

Outside his front door, he set up shop in a tiny office, outfitting it with computers, fax machines and phones. Latin-Pak doesn’t need a lot of space. The printing and mailing service is contracted out to other businesses. Andoloro hires a subcontractor whose workers fill the plastic bags in warehouses and then deliver them.

Already, Latin-Pak has grown from three salespeople--including Andoloro--to five. They all work on commission, as does Andoloro.

While Latin-Pak specializes in delivery, not the advertisements themselves, Andoloro will have the ads printed if requested. The advice to his customers is always the same: go bilingual.

The reasons are that many members of these Latino families speak English and, in addition, there may be a few families of other ethnic groups within the targeted neighborhoods.

“This way you are not going to insult anybody,” said Andoloro.

Despite past emphasis on television and radio, print advertising may be even more successful in reaching Latino buyers because the customer can actually study the ads, said Andrew Erlich, an ethnic marketing consultant for national companies.

“These populations that are not primarily English-speaking are information-seeking. When you give them information, you are giving them the tools to participate,” Erlich said.

“These markets,” he said, “have not been saturated yet.”