Small Business Plan:
Periódico Bilingue La Comunidad
The Potential for a Triad Bilingual Newspaper
(PowerPoint is a project for LIS 613)
Our Goal
Our goal is to establish a Piedmont-Triad newspaper with articles in both English and Spanish, modeled from other successful bilingual newspapers. It will aim to serve both as an educational tool and an informative reading source for an otherwise untapped bilingual market. Revenue will be obtained through both advertising and subscription.
Our Objectives
The newspaper will serve as an educational tool for both classroom teaching and for community members learning a second language It will transcend ethnic barriers by acting as a voice for both Hispanics and other Triad residents With time and financial backing, we hope to make the newspaper accessible online as well as in print
La Voz: A Bilingual Newspaper Success Model
La Voz (The Voice) is based in Santa Rosa, CA, and is Northern California’s foremost bilingual publication, with a circulation of approximately 30,000 and a revenue of about $500,000-$1 million a year (1).
Published monthly Reaches all population demographics in its distribution range of 6 counties Supplies educators and school libraries with discounted issues Obtains most of its non-subscription revenue from advertising Other possible income is from promotional items such as gift-cards, posters and other merchandise Has a street rack pick-ratio of 90% Joined forces with the Spanish Los Angeles paper La Opinion in a special edition publication to encourage more Hispanic parent involvement in the Santa Rosa school system (2).
1. ReferenceUSA. La Voz profile. Retrieved November 20, 2006, from ReferenceUSA. 2. T. Morse, personal communication, October 23, 2006.
Why the Same Strategy will Work in the Triad
The Hispanic population in Greensboro alone has grown to 5.7% from 4.4% in 2000, and is still growing rapidly (1). In Forsyth County, the percentage of Spanish speakers who do not speak English well is higher than the percentage of Spanish speakers who do speak English well (2).
5 Years and over Population who Speak Spanish and who Speak English "Very Well" as a Percent of the 5 Years and over Population 5 Years and over Population who Speak Spanish and who Speak English "Not Well/Not at all" as a Percent of the 5 Years and over Population
2000
Forsyth County, North Carolina Guilford County, North Carolina
Rank*
2.20% 2.00%
3.20% 1.70%
1 2
* Ranked by 5 Years and over Population who Speak Spanish and who Speak English "Not Well/Not at all" as a Percent of the 5 Years and over Population
1. U.S. Census Bureau. North Carolina Fact Sheet, American Fact Finder. Retrieved on Nov. 4, 2006 from http://factfinder.census.gov/servlet/ACSSAFFFacts?_event=Search&_lang=en&_sse=on&geo_id=04000US37&_state=04000US37 2. Statistical Warehouse. (2006). 5 Years and over Population who Speak Spanish and who Speak English "Very Well" as a Percent of the 5 Years and over Population: RegionalOneSource based on data from the Census Bureau, U.S. Department of Commerce, 2000. Retrieved on Nov. 8, 2006.
Why the Same Strategy will Work in the Triad (cont.)
We will target three main markets:
1. All Triad residents, with a particular focus on educators 2. The Triad’s increasing Hispanic population 3. Triad residents learning a second language
We will accomplish this by studying financial benchmarking ratios, industry trends, and each demographic market in detail
Financial Benchmarking: Newspapers
SIC Code 2711, NAICS Code 511110
Asset Range--$500,001-$1,000,000
Dun and Bradstreet (2006). Ratios for SIC 2711. Retrieved Nov. 13, 2006, from Duns Key Business Ratios database.
Industry and Population Trends
The newspaper industry is not projecting growth in revenue, mainly due to a saturated market. More newspapers are targeting niche population groups such as Hispanics (1).
Newspaper Market Projected Industry Revenue
Papers directed at Hispanics are more likely to survive the expected lack of industry revenue growth over the next decade due to the increased Hispanic population (2).
Hispanic Population Increase
1981 Hispanic Population in North Carolina 1990 2000
56,956
77,491
384,910
1. 2.
IBISWorld. (2006). US Newspaper Publishers Industry Market Research Report. Retrieved Nov. 5, 2006, from IBISWorld Industry Market Research. Statistical Warehouse. (2006). Hispanic Population: RegionalOneSource based on data from the Census Bureau, U.S. Department of Commerce. Retrieved on Nov. 22, 2006.
Hispanic versus Non-Hispanic Populations: Income (Triad) and Age (U.S.)
Total Income Of White Households Forsyth County, North Carolina Guilford County, North Carolina 1989 $3,595,974,438 $4,396,610,976 1999 $5,605,790,100 $7,527,922,300
Total Income Of Hispanic Households Forsyth County, North Carolina Guilford County, North Carolina
1989 $22,485,335 $25,804,356
1999 $185,463,500 $193,019,200
Income data:
Statistical Warehouse. (2006). Total Income Of White and Hispanic Households: Census Bureau, U.S. Department of Commerce. Retrieved on Nov. 22, 2006.
Age data:
Mintel (2006). Hispanic Shopping and Spending Patterns – US. Retrieved November 22, 2006 from Mintel Market Reports Research Database.
Hispanic Consumer Spending: Larger Households, Lower Incomes
Although they have larger households than average, the incomes of Hispanics are lower than average.
In 2004, the median household income for Hispanics was $34,241 compared with $44,389 for all households.
Data from the Bureau of Labor Statistics’ Consumer Expenditure Survey shows the result of the lower incomes of Hispanic households: lower expenditures.
In 2004, Hispanics spent, on average, $37,578 compared with $43,395 for all consumer units (consumer units are roughly equivalent to households).
Mintel (2006). Hispanic Shopping and Spending Patterns – US. Retrieved November 20, 2006 from Mintel Market Reports Research Database.
Hispanic Consumer Spending in Detail
Given the increase in census projections, the Hispanic share of consumer spending is expected to rise and become a more important economic factor
Paulin, G.D. (1998). A growing market: expenditures by Hispanic consumers. Monthly Labor Review 121, 3-21, 19. Retrieved on Nov. 5, 2006 from Consumer Expenditure Survey website.
Hispanic Marketing Potential
Regarding media, it is dangerous to automatically default to language because Hispanics are not a homogenous group (3). Thus, the following should be taken into account:
Only one quarter of Hispanics said they do not like advertising in general compared to 39% of non-Hispanics (1). Hispanic consumers often shop in groups. Thus, a group opinion can overrule an individual opinion (2). Behavior is not driven by cost, but by trust of name brands and other Hispanics (3).
1. Mintel (2006). Hispanic Shopping and Spending Patterns – US. Retrieved November 20, 2006 from Mintel Market Reports Research Database. 2. Armbruster, A. (2006). Add Hispanics Into Your Add Mix. Television Week, 25 (36), 11. Retrieved Nov. 21, 2006 from Business Source Premier Database. 3. Burleson, D. (2006). Spanish 101. MediaWeek, 16 (21). Retrieved Nov. 5, 2006 from Business Source Premier Database.
Relevant Hispanic Psychographics and Consumer Lifestyles in the Triad
Hispanic psychographics:
They are prone to high referral rate tendencies They are family-centric (they seek the opinions of family and friends) (1). Hispanics tend listen to radio more often than they watch television, and internet use is growing (2).
Triad Consumer Lifestyles: 39% are avid readers 21.8% are interested in self-improvement (3).
1. Armbruster, A. (2006). Add Hispanics Into Your Add Mix. Television Week, 25 (36), 11. Retrieved Nov. 21, 2006 from Business Source Premier Database. 2. Burleson, D. (2006). Spanish 101. MediaWeek, 16 (21). Retrieved Nov. 5, 2006 from Business Source Premier Database. 3. SRDS (2004). Lifestyle Market Analyst. Des Plaines, IL: SRDS.
Second-language Learners and Educators
North Carolina has 171 language schools that make up 10% of 1,710 schools total (1). The Triad has a total of 192 schools where we could potentially market our bilingual newspaper for a discount (2).
Number of Establishments in Educational Services (NAICS 61)
North Carolina
2004
1,710 76 116
Forsyth County, North Carolina Guilford County, North Carolina
1. U.S. Census Bureau (2006). 2003 County Business Patters for North Carolina. Retrieved Nov. 7, 2006 from http://www.census.gov/epcd/cbp/map/03data/37/999.txt
2. Statistical Warehouse. (2006). Number of Establishments in Educational Services (NAICS 61): Census of Employment and Wages, Bureau of Labor Statistics, U.S. Department of Labor. Retrieved on Nov. 8, 2006.
Our “Competition”
Since there are no other bilingual newspapers or other media available in the Triad; our competition will be media that is Spanish-only Spanish radio stations will be especially formidable competition, and we need them on our side Like La Voz before us, we will collaborate with Spanish-speaking media instead of trying to compete with them
Spanish Media Currently Available in the Triad
Que Pasa Media Network
Que Pasa is the leading Spanish language newspaper and radio station in North Carolina. They serve the Charlotte Metro, Raleigh/Durham/Chapel Hill and the Greensboro/High Point/Winston-Salem areas, serving the nation's twelfth largest Hispanic Market (1).
La Noticia: the Spanish-Language Newspaper
La Noticia is based out of Charlotte has more than 1000 points of distribution and more than 105,000 readers weekly. It is also available online (2).
1. Que Pasa media network. Retrieved on November 22, 2006 from http://www.quepasamedia.com/web/ 2. La Noticia: the Spanish-language newspaper. Retrieved on November 22, 2006 from http://www.lanoticia.com/index2.htm
Promotion and Advertising Channels
Spanish and English-speaking radio stations available in the Triad (1).
Winston-Salem: Que Pasa Media Network: 336-714-2892 La Movidita: 336-759-0524 WKZL-FM: 336-605-5200
Agencies that work with Latino Immigrants in North Carolina (2).
Greensboro: Amistad de Guilford: 336-286-3998 Casa Guadalupe: 336-286-3998 Winston-Salem: Hispanic Coalition: 336-768-0714 Hispanic League of the Triad: 336-775-4578
1. Gale directory of publications and broadcast media. Detroit, MI: Gale Research, 1990-present. 2. Latin Organizations in North Carolina/Organizaciones Latinas en Carolina del Norte. Retrieved on November 24, 2006 from http://www.realcrisis.org/Lation%20org.htm
Keys to Success
Increased Hispanic populations will create further demands for bilingual media Triad psychographic data indicate that our newspaper would be a welcome addition We will offer a product discount to Secondlanguage educators We would be able to collaborate instead of compete with our competition