Market research plays a key role
Dear Karen: I think our product could appeal to the growing U.S. Latino population, but I’m not sure how to market it to them. Any suggestions?
Answer: Whenever you introduce a product or target a new customer base, it’s important to do solid market research before you start.
Shelley Roth, president and chief executive of Pierre’s Ice Cream Co. in Cleveland, recently launched a new line of sherbet called “¡Hola Fruta!” The product is being marketed to both Latino and non-Latino consumers, she said.
“We held numerous focus groups with a number of diverse consumer groups, including Hispanic consumers, to gauge their interest in different concepts, flavors and product ideas,” Roth said. “Our research findings played a key role in the product’s development.”
Use the research to fine-tune your product, then look into the variety of marketing initiatives you can use to target Latino consumers. A Spanish or Spanish-influenced name and advertising campaign, as well as bilingual packaging, can help.
“I would recommend reaching out to Hispanic media, in addition to mainstream media,” Roth said. These outlets are equally important in promoting your product.”
Hiring a public relations or marketing agency with a Latino division may be useful, particularly if it is very familiar with the Latino media market and community.
“If they can communicate in Spanish and English, they can act as spokespersons for your company if you do not have a Spanish-speaking executive to fill that role,” Roth said.
When you approach potential distributors, make them aware of your extensive research and advertising efforts. Seeing how much work you’ve done will help convince them of your product’s broad and diverse reach.
Schooling doesn’t guarantee success
Dear Karen: I’d like to go into business for myself. Do I need to attend business school?
Answer: Many successful business owners never attended business school. Most of them got an idea, and then they had the courage, conviction and work ethic to see it through. Most of them faced difficult obstacles for many years before achieving success.
Business school rarely teaches how to overcome typical entrepreneurial obstacles, such as poor sales skills or an inability to delegate, said Ken Keller, a business consultant with Renaissance Executive Forums in Valencia. Nevertheless, “business school creates a solid foundation for anyone going into any aspect of business,” he said.
Business school provides an understanding of the complexity of an organization, Keller said.
“A business is not just about money, but people, processes, priorities, execution and growth. By growth, it is not just about sales and profits, but also about the growth of the individual,” Keller said.
Most people would prefer not to spend years learning the details of accounting, finance, production, marketing, sales and human resources. But business school students are required to take these classes so they get the big picture of how a company works and what the people in it have to understand in order to make it operate efficiently and effectively.
The most common obstacles to building a successful business include not having a good business model, not having strong enough cash flow, poor hiring and inadequate capitalization. Many universities, community colleges and nonprofit entrepreneurial centers offer practical classes that address such topics and provide valuable knowledge for entrepreneurs.
Got a question about running or starting a small enterprise? E-mail it to karen.e.klein@ latimes.com or mail it to In Box, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012.