Branded Marketing

Branded Marketing, LLC was founded by Richard Jackowitz, Mark Colyer and Anthony Uva in April of 2007 in Haskell, New Jersey, United States. Branded Marketing offers general purpose network branded, reloadable, prepaid spending cards targeted to the Latino and Hispanic ethnic groups. As Pr1macard, the first Branded Marketing product launch enters the market in April of 2008, its market entry mirrors the focus and importance of the growing Hispanic and Latino immigrant market, and the unique needs of that community. Research and national press about the immigrant market and economy has demonstrated its importance. Recently, the Hispanic Information and Telecommunications Network (HITN) has expressed a strong interest in forming an alliance with Branded Marketing to further its Community Based Organization (CBO) efforts. This network and the Pr1macard initiative will teach Hispanics how to manage their money properly and avoid onerous debt.

Pr1macard is a MasterCard® branded, integrated prepaid, stored-value card that allows customers to use the card for telephony and general purpose payments. Rewards are offered in the form of free domestic and international telephone calling, a feature that targets the main demographic and its significant use of telephone calling cards. The executive team believes that this ethnic group is underserved and that its integration of prepaid calling and rewards will be attractive to Latinos and Hispanics who incur significant telephone charges to stay in touch with family and friends in other countries. Branded Marketing drives product acceptance through its partner and distribution channels. Distributors include check cashing businesses and other money services business. These partners sell the Pr1macard in markets and communities like Union City, New Jersey, United States, and Miami, Florida, United States, where the Hispanic and Latino market has grown exponentially. Brand loyalty is strong in this ethnic market segment where services and dependability are important to users.

Business strategy and model

Branded Marketing will offer the Pr1macard and Pr1macard Elite, with remittance functionality. The products leverage independent research within the ethnic communities, with large populations of immigrants. These ethnic groups are dependent on telephone calling cards to stay connected to friends and family. Branded Marketing products target this ethnic group which is currently underserved by traditional financial products. The product integrates telephone calling and financial services through a prepaid card. Branded Marketing has also purchased a telephone switch that allows card users to leverage inexpensive calling to Latin America. The Branded Marketing product Pay per Spot was designed to deliver targeted information in the form of audio messages along the Interactive Voice Response (IVR) chain. Based on spending data and research, these messages target the Hispanic and Latino cardholder demographic and their spending behaviors and allow advertisers and partners to reach the right demographic. The Branded Marketing product and service strategy includes a process to analyze cardholder financial transactions, creating a usage history that will be used to build a financial profile and payment history and to develop new products. The company plans to magnify word of mouth and viral marketing by IVR and a live operator platform hosted at the company toll-free vanity phone number.

Research within Latino and Hispanic market segment

According to The Prepaid Press, a study done in 2006 in the Miami Dade, Broward County and Palm Beach County revealed that first generation immigrant residents ages 18 to 65 who had lived in the U.S. for at least six months liked the ease of use and convenience of prepaid calling cards, and the ability to place a call from anywhere. According to this study, Latino consumers associate calling cards with economy, and this is an advantage that is not usually associated with other international communication alternatives.
The study found that these ethnic consumers considered the price vs. available minutes, good connection quality and no connection fee, as well as a redial capability and shorter Personal Identification Numbers (PIN) when they made the purchasing decision.

This independent face-to-face study also found that loyalty to a particular brand of cards was an issue. Customers are loyal to some brands, and this loyalty is based on their satisfaction with the use and experience with the card. As an alternative to calling cards these customers used virtual rechargeable calling cards or access numbers that do not require PIN numbers. The least popular services were dial around (1010 XX) and Voice over Internet Protocol (VOIP) services. Latin America telecom providers have recently begun to show an interest in the South Florida Hispanic calling market, and now offer international long distance services.

Latino and Hispanic market conditions

A July, 2007 BusinessWeek article revealed that the Hispanic and Latino calling card segment of the market is embroiled in controversy, as major suppliers do not provide the services this segment expects. Recent allegations of fraudulent marketing of phone cards confirm suspicions among users that these companies are shortchanging vulnerable customers.

The prepaid phone card market is now a four billion dollar industry and its customer base is comprised of poor immigrants, the elderly, and other low-income consumers who are unable to afford typical phone service or those who do not have valid U.S. documentation and therefore cannot register for service.

Hispan Telligence® says that Hispanic and Latino buying power has grown to almost $750 billion, and it is projected to reach $1 trillion by the year 2010. eMarketer research estimates that the U.S. Hispanic internet user base will reach nearly 21 million users by 2010. These estimates translate into a number that is equal to that of the African American user base by the year 2010.

Product integration

The Latino and Hispanic market will benefit from integrated products that offer them a way to fund, pay for and manage all types of expenses, including their telephone card calling charges. Branded Marketing targets the ‘unbanked’ funds available to many undocumented and/or underserved immigrants, and offers general spending and alternate payment vehicles for pharmaceutical disbursements, payroll, direct deposit, gift card verticals, healthcare, and other expenses. These prepaid, stored-value cards provide the expected functionality in the form of Automated Teller Machine (ATM) access and signature-based purchasing and also include bill payment and reward features. The product is integrated with a toll-free number with a live operator, and a recall feature that encourages usage and provides subsidized telephone calling services combined with a prepaid general spending financial debit card.

Business differentiation in ethnic market

Traditionally, companies have done little to educate the U.S. targeted Hispanic and Latino group in financial systems and flow. Branded Marketing has developed an educational and social networking system to introduce its products and educate users on the use of the card and on financial systems in the U.S. These knowledge-based articles and artifacts are available on the 1800tarjetas.com web portal and through webinars, podcasts and YouTube videos. Additionally, the company plans to take the educational process into the targeted communities. Research in the Latino and Hispanic buying market and buying behaviors has illustrated the need for education and information so that immigrants and new U.S. residents can effectively participate in the U.S. economy and understand the flow of money and finances. The combined social networking aspects, and portal use will assist customers in leveraging the prepaid financial tool and help them to develop financial literacy.

Summary

The Branded Marketing executive team will leverage research and studies of these behaviors to better understand and serve the market. It is critical to the Hispanic and Latino ethnic community that U.S. based businesses recognize and serve their unique needs and the way in which its people spend and interact. As businesses enter this burgeoning immigrant and ethnic-based market niche, their product and service success will be dependent upon their ability to serve the market with a full understanding of cultural and financial needs and of their buying preferences and behaviors.

Main Menu

See Also

Main Menu