HomeMy WebLinkAboutR-88-1074w 0..
J-88-1112
11/3/88
RESOLUTION NO. SN--1011714
A RESOLUTION ALLOCATING AN AMOUNT NOT TO
EXCEED $25,000 FROM SPECIAL PROGRAMS AND
ACCOUNTS, CONTINGENT FUND, IN SUPPORT OF
TOURISM PROMOTION IN THE SPANISH EDITION OF
CRUISE N' TRAVEL MAGAZINE PUBLISHED BY
INDEPENDENT PUBLISHING COMPANY, INC., FOR THE
PURCHASE OF TEN (10) COLOR PAGES OF CITY
ADVERTISING IN UP TO TEN (10) ISSUES OF SAID
MAGAZINE DURING FISCAL YEAR 1988-89 AT A COST
OF $2,500 PER PAGE.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section I. An amount not to exceed $25,000 is hereby
allocated from Special Programs and Accounts, Contingent Fund,
for tourism promotion in the Spanish edition of Cruise N' Travel
Magazine, published by Independent Publishing Company, Inc., for
the purchase of ten (10) color pages of City advertising in up to
ten (10) issues of said magazine during Fiscal Year 1988-89 at a
cost of $2,500 per page.
PASSED AND ADOPTED this
ATTEST:
.-,A
TY/HIRAI, CI
PREPARED AND APPROVED BY:
OBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
:3r-da day of November 1988.
XAVIER L. SUA Z MAYOR
APPROVED AS TO FORM AND CORRECTNESS:
OR L. MRlqlkNDEZ
CITY ATTORNE
-2-
TO. Mr. Cesar H. Odio
City Manager
FROM:
Commissioner J. P
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
DATE: 00 o�er 2"0 , 1988
SUBJECT:
Agenda Item for the
11-03-88 Commission
REFERENCESMeeting
Jr. ENCLOSURES:
FILE
Please inolude as a discussion item for the November 3, 1988 City
Commission Meeting, an item in referenoe to the Cruise and Travel
Magazine agreement with the City of Miami.
[i
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\fENf[tCR
Independent Publishing Co.. Inc.
Mr. Cesar Odio
Manager, City of Miami
Miami, Florida
Dear Mr. Odio
r i
3; 30
October 19, 1988
As per our previous conversations, I am requesting renewal of
city funding for tourism promotion in Cruise n' Travel - En EspaTol
Magazine, the gateway to the traveling Hispanic market, for the
fiscal year 88-89, an item placed in the Nov. 3 City Commission
agenda by Commissioner J.L. Plummer.
As you know, the city funded the magazine with $17,500 in 86-87
and with $20,000 in 87-88 to encourage increased tourism to the
city from Hispanics who live in the U.S. and in Latin America. This
year, I am requesting $25,000 in city funding to be able to
continue our on -going promotion at the 1988 increased cost levels.
This amount will be used to fund 10 color pages of city advertising
(backcovers and inside covers) in up to 10 issues of the magazine
at a cost of $2500 per page. (See rate card).
In addition to publishing the city ads, the magazine devotes
extensive editorial coverage to city events, conventions, concerts,
restaurants, entertainment, finances, and attractions, pumping
millions of dollars into our city economy from our visiting
readers. During the past two years, we have seen a marked increase
in domestic tourism to Miami and also a resurgence of tourism from
Latin America.
In the past two years, our circulation has nearly doubled to
30,500, including 4,000 travel agents who specialize in the
Hispanic market in the U.S. and 800 others in Latin America who
handle 95% of the international travel from that region. The rest
are Hispanic consumers -business owners, executives and
professionals who travel.
Cruise n' Travel - En Espanol is the only
Hispanic -female -minority owned travel magazine in the U.S. who
addresses this powerful U.S. minority group -the fastest growing in
the nation- includes Latin America at the same time, and promotes
the City of Miami regularly as a favorite destination for both
business and pleasure.
E-n Espanol
_,w.�. �..�. .e..a............... � ill ��I
I as enclosing a package of information as to magazine
circulation, readership, distribution and rates, plus magazine
samples for your perusal. Let me know if you require any
additional information.
Cordially,
�ilda Inclan
Publisher/Editor-in-Chief
Enclosures
cc.: Aurelio Perez Lujones, agenda coordinator
Mayor Xavier Suarez, Vice Mayor Rosario Kennedy,
Commissioners: J.L. Plummer, Miller Dawkins
and Victor de Yurre.
SJ{,
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Independent Publishing Co., Inc.
10371 SW 441h Street,
Miami. Florida. 33165 U S.A.
(305) 221-3186
AS.G49 I":"cueftcl fwfetunt za� arleel
The 17.6 million -strong Hispanic population in the United States - with $94 BILLION U. S.
DOLLARS to spend - Is an economically powerful, fast-growing force - larger In numbers
and purchasing power than many Latin countries - and with one Important advantage:
NO FOREIGN DEBT!
Latest studies and statistics show that this vital market is growing at a faster rate then
the rest ofthe U.S. population, that It Is strongly oriented towards large familygroups, has
more members perhousehold that the average American family, is brand -name conscious,
and to loyal and very responsive to advertisers who cater to their cultural background,
particularly their preference for the Spanish language.
GROWTH: From the 1980 U.S, census to 1985, the U.S.
Hispanic population grew 20%, from 14.6 million to 17.6
mWon, according to the latest report from Strategy
Research Corporation. If is expected to reach 21 mlltidn
by 1990 and 27 million by the year 2000. By contrast, within
the some five-year perlod, the U.S. population grew from
226.5 million to 238.1 million, or only & i %.
N1COM& Aggregate Income for the U.S. Hispanic market
rose from $64 billion In 1979 to $123.4 billion in 1985, After
taxes, savings and other deductions, the remaining
'Purchasing power' or actual dollars available for
consumption AND TRAVEL is listed at $94 BiLLiONI
HOUfEHOLD /Mt The average U.S. Hispanic household
size Is 3.7, while the overage for U.S. households In general
Is 2.7. *Given the importance of the family In the Hispanic
cutture, It should not be surprising to find that the Hispanic
places produc'reputatton and quality (what's best for the
family) ahead of price,' SRC reports.
LOYALTY: 'Hispanic shopping patterns are conditioned
by the need far feeling culturally welcome, by the store
or firm's personnel and by the products offered' SRC
continues.'Loyalty is high among new arrivals... The burying
habits of the Hispanic In terms of brand preference ore
substantially influenced by the Importance that the
advertiser places on addressing the Hispanic... FOR THE
ADVERTISER WILLING To MAKE EVEN A LIMITED INVESTMENT,
USE OF SPANISH LANGUAGE IN PRINT WILL ELICIT A STRONG
HISPANIC CONSUMER RESPONSE from an audience
oppreclatfve of the advertisers effort.'
COHEII r*ff PAD LANGUAGE: This
extended-fomlty-oriented group, mode up of Mexicans,
Puerto Ricans, Cubans and Central Americana, has one
strong unifying force: THE SPANiSH LANGUAGE. Latest
statistics stow Hispanics In the U.S. prefer to read, write and
speak In Spanish. "Every Hispanic group he a purposefully
Insisted on maintaining the Spanish language alive,
particularly in the home. At least nine out of every ten
Hispanics In each market surveyed state that the first
language they learned to speak was Spanish', SRC reports.
'Overall, more than two-thirds of U.S. Latins prefer to speak
Spanish In the home.,.'
it Is for this significant, growing, specialized market that Crvtre n' hovel - En &pvlbl was created. Our
pages are your gateway to this loyal, responsive market. Because we are U.S. Hispanics ourselves,
acUM In/oumallsm in the U.S. formore than 20 years, WO know best how to reach and address our
own people, and how best to market your product among them. We go directly to their homes, to
their cultural heart, on their own terms,
in their own Mnpuaga, and oo* to the Molt o/tfuent.
Try us out/ Cash in qukkly on the bstset growing market In the United Stat", a;%,�rala, //.,f.. !.. a
ft"n counby 1MtINn your own mttMlitnaf, with bNllona of dollars to spend - a nwkot you couldn't
reach before -.now brought to your door oop off w rarev. pla**.
(guise n al'rsat2.1
En Espe. ital
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'THE --,'".WA
0 198* Do" lencJ Cf Cola /felty, Int. 4!1 Riphtr Refr"k►el DAY, MOVA"V 1A, 1411!!
More Firms Court Hispanic Consumers —
But find, Them a Tough Market to Target
ey Jere de CJ1RnnRA
'"ff RCpnrrrr of Trtt WAS -I. SIM V," Jt1VNNAt,
Last year when Campbell Soup Co.
launched it major absault on the Hispanic
market, It used three different Ad cam•
palgns on Spanfsh•IAnguage television: one
aimed at HlspAnlca of Caribbean origin,
another for Mexican -Americans, and it
third that mixed elements from the other
two.
Hispanics, clearly, are not an easy
group to target. Yet an increasing number
of major companies are courting the His -
CNN Seeks Nspark Market
Turner Broadcasting is in the final
out" of talks with Tel mundo Groap
the Hlswit televi" set -
with a nighty lie* i broadcast In
Spanish, t3fory an page 2&
panic consumer. To these companies, His-
panics —the second fastest -growing popula-
tion group in the U.S.—Is a market that
can't be Ignored.
Last fall, the Census Bureau reported
that since 11i60. the country's Hispanic pop-
ulation had Increased by 30%, to 19.8 mll-
ilon from 14.6 minlon—five times the
growth rate of non -Hispanics. And al-
though the Hispanic advertising market is
still small At $491 million, It,grew 23% last
year, according to Hispanic Bustness mag-
azine.
'Have to Be Nuts,
"Anybody who looks at the size of the
Hispanic consumer segment would have to
be nuts not to do business there," says
Charles S. Morrison, a vice president of
Coca-Cola USA, a unit of Coca-Cola Co.
Other companies agree. In the past
year such major marketers as Pillsbury
CO.'s Burger King Corp., Southland Corp.'s
7- Eleven Stores, and Domino's Pizza Inc.
began comprehensive Spanish -language
advertising campaigns for the first time,
Coca-Cola has used such Hispanic celeb-
titles as Loa Angeles Dodger pitching star
Fernando Valenzuela, while Pepsi Cola has
featured the Miami Sound Machine. in Mi-
ami, the wealthlat Latin' enclave in the
U.S.. American xpress Co. plans to fea-
ture prominent Hispanics In a Spanish -lan-
guage version of Its Portraits campaign.
And Campbell. aside from prbmoting Ito
soup, Is making a major push Unto the Hls-
panic market with a line Of Caribbean -type
foods, The company Plana to sell over 50
Items under the CaserA iabel, going head -
to -head with GoyA Foods' Lne., the Se-
caucus, N.J., concern that dominates that
market with estimated 1987 sales of about
S27li million. Campbell also has begun test-'
marketing sore Mexican food Items In
California under the Cases label.
"It's a population whose Importance
can't be denied any Innger," says Lh Cis -
tells, prnditet manager for Carnphell
Scrip's 1ispnnic food onit. "That's the hot -
torn line.''
Spanish-speaking television is finiirlsh-
Ing as Well —providing better opportunities
to reach the Hispanic audience. Sinre last
August, a partnership of Hallmark Cards
Inc. and a unit of First Chicago Corp. have
spent more than S.W million to purchase
10 Spanish -language television stations as
Well as it television network. The acqulsl-
(ion of an eleventh network is pending. A
partnership managed by Said Steinberg's
Reliance Group holdings inc. has spent
around SM million to form Its own rival
network.
Another sign of the emergence of the
Hispanic market Is the interest o/ main-
stream advertising agencies, many of
which are either starting up their own
Spanish -language shops or acquiring exist-
ing agencies. Last December, the British
giant. WPP Group PLC, bought Newport
Targeted .Cities
Biggest markets in terms of money
spent on Hispanic advertisibg, in
millions of dollars
Lee Angeles $103.0
Miami
81.3
New York
66.7
Chicago
28.0
Ban Franciaeo,/San Jose
18.9
San Antonio
18.0
San Diego
10.2
Phoenix
9.2
Ei Paso
8.0
Fresno
?.ti
Senor. I4inpaait Btu{ana avyei+ar
Beach, Calif. -based Mendoza, Dillon & Asn-
clados, the largest Independent Hispanic
ad agency in the country with 1987 billings
of S36 million.
They are getting heat from clients,"
Edward Fitch, a senior editor at Advertis-
Ing Age, says of the agencies. His ma A.
zine recently began a two -page monthly
section on the Hispanic market to satisfy
greater reader Interest.
Still, It's an embryonic market and
some agencies remain unconvinced of Its
Importance. It also isn't an easy market to
understawl—or crack.
The Hispanic population. meanwhile, Is
highly concentrated, which might seem to
make a wide -reaching national ad cam-
paign fairly easy to execute. Fifty-four
Percent live In just two states —Texas and
California, AcrnrrflnR in Sirntrn, Rrsearrh
Inc., a Miami inarkri rrsrirrh firm. 12.R^;
live In seven other states.
Rot the cnticonlralinn Is a hit drrriving.
Mexican-Amerfrans make up ahnnt 61':
of U.S. ffispanlrs and dnminnfe the Markel
In California and the Srnuthwrs;L Cnh7ns
are A far smaller grnnp, hill their htghrr
Income and heavy rnnrenlrnilon hi Smith
Florida make Miami the cnnntry's must
Important Hlspanic media markrl, aftri
Los Angeles. Now York, the nntinn's thud
richest Hlspnnlc market, has slenifirnnt
Dominican and Purrtn niran pnpulatinns.
"We are jest A Minch of srgmpnfed
markets within a large market," says
Carlos Rossi, the Puerto Rlrnn president
of New York based Coniii Advertising Inr.,
who helped to design the Campbell ads.
Some companies lisp one ad for flip rn-
tlre Hispanic cnmmunity. But others, like
Campbell Soup, opt for a varied ad cam-
paign In an effort to reach specific Audi-
ences. What plays to Caribbean Ifispanlcs,
they find, doesn't necessarily work with
Mexican•Ampricans.
Different Details
The Campbell ads, for Instance, all fea-
ture a woman conking hilt differ In such
details as the age of the character, (tie set-
tang and the music. The version for CArth-
bean Hispanics has a grnndmolhpr conking
in a plant -tilled kitchen to the sotinds of
salsa and merengue. The Mexican -Ameri-
can ad shows a young wife, preparing fool
In a brightly colored "southwestern -style"
kitchen, with pop music j laying In flip
backgrnund, according In Mr. Rossi.
The choice of Iangiiagr isn't even a slm-
plil decMnn. Although most Iilspnnlrs prr-
ter in speak Spanish, many ynnnger, more.
Affluent Hispanics prefrr English, whlrh Is
dominant In such key markets as San An,
tonin and Albtiquprqup.
Despite the dlffirullies, lhrnigh, mane
companies are determined to tap the Ills -
panic market. For "igp. In fact, It's hr•
come a necessity, as their prrxiurls have
gone out of fashion in other markets.
Hispanics, for example, lisp Ihrre to
four times as much cooking oil as Inrreas-
Ingiy health-consrlrnis nrurlllspnnics. As
a result. Hispanics account for over 201, of
Mazola's sales. Last year, when ad
budgets were tight, VTC International hie.,
the Englewood Cliffs, N.J.-based company
that makes Mazola, spent more money ad-
vertising the oil In the illspanle market
than In the general market, says fi irhael
Lyons, group product manager for Afazrda
oil and margarine. "tole mllitim dollars In
the Hispanic market," says Mr. I.ynns,
"will lake you further than $10 million in
Ow general market."
N
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I
PRINTINO CORPORATION OF THE AMERICAS, INC.
620 S.W.12th Avenue, Pompano Beach, Florlda 5U*0
(305) 781.8100
26 June 1987
NJ -Ida Inc,lan, PresldentlDIrector
Cruise N' Traver
10371 SW 44th .Street
Miami, FL 33165
Dear N 1 t da,
It was a pleasure talking with you the
other day. I was very pleased with your
positive c3mments about your fast Issue.
We at PCA stII0 feel that we can meet a
seven day turn -around of. your 30,500 copies.
Sinoe we started printing your magazine In
February of 861 It has always been our desire
to meet your schedule.
I remain,
very truly yours,
PRINTING CORPORA T ION
OF THE AMER 1 CAS, INC.
budtuchmantro by: c
Y 7
�iaibrn etc snit or ►tarot
b CO s"101 tip ALI 30,1 W
"M1te I= KKM lost W.
President