Procter & Gamble Takes a Familial Approach in Efforts to Reach Latinos
Procter & Gamble Co. has long been the largest advertiser in Spanish-language media; in 1998, it outspent No. 2 Sears, Roebuck & Co. by 40%.
But money hasn’t bought P&G; love in such key markets as Los Angeles, where its Charmin bath tissue, the top-selling brand nationally, is an also-ran among Latinos. P&G; faces a similar challenge with its Bounty paper towels.
So P&G; is fine-tuning the tactics it has been using to reach the fast-growing Latino population. It isn’t abandoning TV, which will continue to account for most of its spending. But it is shifting a portion of its marketing dollars into an unusual grass-roots campaign aimed at transforming the $38-billion consumer products giant into a trusted friend.
At the heart of the effort is a magazine called Avanzando con tu Familia--progressing with your family--that mixes advertising with everyday advice. P&G; said Avanzando targets recent immigrant mothers hungry for information about life in the U.S.--and unsure about where to find it.
The first issue, delivered to 4.5 million households in September, had tips on wiring money, an ode to ethnic pride and a soup recipe--along with ads for 11 P&G; products. Distributed free with coupons and product samples, Avanzando fills a void for Spanish-speaking consumers underserved by traditional media.
P&G;’s goal is to build a relationship with Latino consumers, said Graciela Eleta, P&G;’s manager for multicultural marketing.
The magazine “stems from a desire of consumers to have a company teach them about getting ahead in North America,” Eleta said. “Many are new immigrants and face barriers in terms of accessing education, medical services and social services.”
Avanzando “is not just to sell the brands,” said Eleta, who is based in Puerto Rico. “We want to go beyond that and help communicate how to get ahead.”
The magazine, printed in English and Spanish, should resonate with immigrants, marketing consultants say. “Hispanics are looking for information--tips, tricks, useful information to help them get through their lives,” said Burbank marketing consultant Carlos E. Garcia.
And by linking P&G; with upward mobility, Avanzando raises the status of everyday brands.
“They are connecting with the emotional side,” said Los Altos marketing advisor Isabel Valdes.
But marketers warn that the venture will fail if the information isn’t consistently useful. And Garcia questioned whether a program developed in Puerto Rico would be overly influenced by that island’s culture.
“It was good to get it out of Cincinnati”--where P&G; is based--”and into a Hispanic setting,” he said. “It will be interesting to see how it plays out.”
P&G; said the program arose from research into how to reach Latino consumers--an expanding market that represents a coveted source of growth for a company with mature brands.
Besides Avanzando, P&G; is taking other steps:
* Nudge retailers to use bilingual signs. Spanish-speakers tend to choose Pantene shampoo for normal hair, P&G; found, because “normal” means the same in English and Spanish. They may not understand words used to describe other choices, dry and oily.
* Develop separate ads for Latino consumers. P&G; recently hired Latina Yamila Diaz as its spokes-model for Cover Girl makeup. Eleta said P&G; previously dubbed general market ads.
* Emphasize scents. P&G; learned that Latinos prefer perfumed products more than consumers in general. So the September Avanzando package pitched Tropical Bloom Downey fabric softener and included a sample of Mountain Spring Tide.
In Los Angeles, P&G; is putting extra advertising dollars behind Charmin and Bounty in hopes of snatching sales away from Kimberly-Clark Corp.’s Scott brand. Scott has the edge here in part because its packaging is similar to Kimberly-Clark brands sold in Mexico. P&G;’s top brands are not available in Mexico, Eleta said.
And in the case of Charmin, a premium label, P&G; further is disadvantaged in that it is competing against a lower-priced brand.
Consequently, P&G; finds itself in the unfamiliar role of challenger in Los Angeles’ Latino community. Charmin, for example, is the nation’s best-selling bath tissue, with 30% of sales. But among Latinos in Los Angeles, Scott claims 30% of sales. Nationally, Scott accounts for 12% of the bath tissue market, according to Information Resources Inc.
Not that P&G; lacks success. It is the dominant player in laundry detergents, with Tide capturing 35% of the Latino market. But it isn’t satisfied. “We are missing the other 65%,” Eleta said. Although other marketers have launched grass-roots efforts, P&G;’s is the broadest yet, marketers say. And it’s unlikely competitors will duplicate it. That’s because P&G;’s singularly wide product mix--ranging from bath tissue and shampoo to detergents and household cleaners--allows the company to spread the costs of Avanzando across many brands.
P&G; declined to specify the cost of its grass-roots campaign, which includes radio ads touting Avanzando and a Web site for the magazine. But Marcelino Miyares, president of Numex Corp., a Los Angeles marketing company, estimates that the door-to-door portion of P&G;’s campaign costs $600 to $700 per thousand households--or as much as $3.5 million for each Avanzando issue.
According to Hispanic Business magazine, P&G; spent $42 million to advertise in Spanish-language media in 1998.
