The Latina mom is one of the most sought after shoppers, according to Shayne Walters, founder and president of Aliso Viejo-based Walters Media Group Inc.
“She’s a valuable commodity right now,” Walters said.
Walters’ direct mail business, Carmen’s Cupones y Consejos,Spanish for Carmen’s Coupons, Tips and Advice,helps big consumer products makers reach Latina moms and other Hispanics.
Carmen’s Cupones, an envelope stufyfed with coupons from brands such as America Online and Starbucks, is mailed to Hispanic households in 17 markets in 11 states.
No surprise, California and Texas are Walters’ biggest markets. He also mails to Florida, Illinois and New York, among others. Walters said his database has some 3 million households.
Marketers long have targeted moms because they do much of the buying for their families. With Hispanic moms, it’s even more so, according to Walters.
“Hispanic moms put a priority on their family like no other segment of the population,” he said.
In 2002, 37 million Hispanics made up 13.3% of the U.S. population. The number is expected to reach 65 million by 2010.
Walters doesn’t design or produce the coupon ads he mails out. He likens his business to an airline: “You should show up to the airport ready to fly.”
Advertisers give him prepared ads, which he readies for mailing and sends out.
Staples Inc. started using Carmen’s Cupones as part of its strategy to market to Hispanics, said Kenneth Brooks, regional marketing “champion” for the Framingham, Mass.-based office supply retailer.
“This tactic fits neatly in it,” he said.
Staples’ bilingual back-to-school coupon targeted 500,000 Southland Hispanic households and 300,000 in New York. Companies pay a fee to Walters per each thousand ads sent out.
“It does get opened,” Brooks said of the mailer. “It does get looked at.”
Coupons from Staples were redeemed at an “above average” rate, according to Brooks. The retailer plans to use the program again, he said.
Some ad design basics, according to Walters: design ads in Spanish and English, he said. The Spanish should be proper, he said.
And prepare for a commitment. Advertisers may need to send out coupons three to four times before they work, he said.
“Repetition builds brand familiarity,” Walters said.
Unlike TV or radio, direct mail is one of the most measurable forms of advertising, according to Walters. Walgreen Co. scans barcodes on its coupons to track usage. The Mosaico Book Club, a Spanish-language book club, includes a business reply card that’s linked to the program. And AOL Latino has a toll-free number and Web site set up to track responses from its Carmen’s Cupones ad.
“If it’s not working, they’re going to let us know,” Walters said.
Of course, some advertisers roll their eyes at direct mail, known on the receiving end as junk mail. Usually ads sent via direct mail are one of hundreds and face strong odds of being thrown out.
But the odds are a little better among Hispanic households, according to Walters. They get about 50 direct mail pieces a year, compared to the general population, which gets some 500.
“They haven’t been targeted with this kind of mail,” he said.
Walters said he goes after more acclimated Hispanics: “A new immigrant to this country is not going to use coupons.”
This is Walters’ 17th year in the direct mail business and his second go at his own direct mail business, which he runs from his Aliso Viejo home. Walters contracts out for production of his envelopes and the insertion of the coupons. He declined to say what the company’s yearly sales are.
Walters and his wife, Corrine, started the company in the summer of 2001.
In early 2002, Carmen’s Cupones mailed its first envelope to 500,000 Hispanic families. Carmen’s Cupones uses the back of the envelope as a billboard for the advertisers inside.
Time Warner Inc.’s America Online was one of its first advertisers. Now there are 18 advertisers, including Sears, Roebuck and Co., Unilever NV’s Knorr and the wireless arm of Qwest Communications International Inc.
“The database is key to the business,” he said.
Walters declined to talk about how he builds his database. Many of the ways he used to get names,such as tapping credit and mortgage records,aren’t allowed anymore.
And not everybody likes Walters’ coupons. People will call his phone number on the envelope exclaiming “This is America!” and that they shouldn’t be getting coupons in Spanish.
Some thought a coupon for VF Corp.’s Vassarette lingerie was too racy.
“It’s an eye grabber,” Walters said of the ad, which also appeared on a recent envelope.
VF plans to run an ad again next year, but probably with a different image, he said.
Walters said he got the idea for his business when he saw the 2000 Census data. After several months of research on the Hispanic market, he said he left his job at a direct mailer and struck out on his own with his wife, who takes care of the finances.
Walters’ own home might be a perfect target for Carmen’s Cupones.
“We use coupons on a weekly basis,” he said.
And his wife is the sought-after Latina mom, having been born in El Monte of Mexican descent. Walters isn’t Hispanic but was raised in Latino-heavy South Central Los Angeles.
In 2002, Carmen’s Cupones sent out two mailings. In 2003, there were three. This year there are four. Next year, Carmen’s Cupones is targeting five, with six in 2006.
For now, Carmen’s Cupones isn’t looking to tap new markets. Instead, it’s looking to expand mailings in current areas, Walters said.
Automakers and airlines are potential advertiser targets, according to Walters. He also said he’s exploring a mailing for 18- to 25-year-olds.
The couple came up with the name of the business after consulting two focus groups, Walters said. Some of the names considered were Ruby, Maria and Martha. Carmen overwhelmingly was the favorite, he said.
