stephanie
01-31-2007, 02:46 AM
JJ Hensley
The Arizona Republic
Jan. 30, 2007 07:25 PM
A restaurant chain with a store in Mesa offers to accept Mexican pesos for pizza and receives threats at its Texas headquarters.
The state's largest credit union is bracing for similar fallout as it begins marketing savings accounts to undocumented immigrants.
Officials at Desert Schools Credit Union say the potential reward - thousands of new customers - justifies the risk of angering a few customers. Ignoring the state's fastest-growing population could be the equivalent of corporate suicide, one business expert said.
Pizza Patrón, with one Mesa location, is in the middle of a two-month marketing campaign aimed at customers who traveled to Mexico for the holidays and returned with unspent pesos. It resulted in record sales and an enraged backlash from people who thought the company was pandering to undocumented immigrants.
Desert Schools Credit Union, with nine Mesa locations, is aware of the potential for similar backlash after word gets out about its new marketing effort, which courts immigrants to deposit funds in special savings accounts.
But to the financial institution, just like the pizza vendor, a marketing campaign that targets Mesa's estimated tens of thousands of undocumented immigrants just makes good business sense.
For many Valley companies, it's about a potential profit at the risk of inciting a political debate. As Pizza Patrón found out, it's hard to pursue one without affecting the other.
"Our entire brand is dedicated to making a deeper connection with the Hispanic community. That creates some opportunity for adversity in our business, but we think it's good business," said Andrew Gamm, Pizza Patrón's director of brand development. "Our brand targets the youngest, largest and fastest-growing segment of our population."
Desert Schools is targeting the same group, albeit with a more altruistic approach. It says that the interest-bearing immigrant-savings accounts, which require account holders to sign paperwork acknowledging that they're in the country temporarily, amount to a community service by providing a safe place customers can deposit money.
Emma Garcia, Desert Schools director of community development, said the credit union's savings account program provides a public service, but it is aware of the potential for backlash.
"We know that some of our members will have issue with it," Garcia said. "We think we're doing what's best for the entire community. We think its best for all our members that we do not have large amounts of cash out there. It's not going to in any way impact whether they decide to stay (in the country) or not."
That's not even the biggest hurdle Desert Schools has to clear when making inroads into the immigrant community. As a financial services provider, the credit union has to bridge a fundamental trust gap between a large entity and a population that inherently distrusts such companies, said Ruben Ramos, director of public affairs with Arvizu Advertising and Promotions.
"In many cases, those new immigrants have a distrust about these financial institutions. You've got to overcome this barrier of how do you even get them in the credit union or into the bank," Ramos said. "There's no such thing (in Mexico) as FDIC insurance or deposit insurance. . . . There's this misunderstanding or fear of the institution of the bank."
Ramos, a former chairman of the Arizona Hispanic Chamber of Commerce, worked with Bank One before joining the Phoenix-based marketing firm last summer and said bilingual employees and administrators are the first step in bridging that gap.
Once companies, whether they're selling pizza or savings accounts, cross that divide, they have to convince their existing customers, no matter what their backgrounds, that marketing to the growing Hispanic population is good for the community and good for business, Ramos said.
"We're not in the business of asking people what their immigration status is. We're in the business of providing financial services to individuals," Ramos said.
"Fundamentally, I don't see anything negative that might be associated with what the credit union is trying to do, if people have a broader context about what the alternatives are for this segment of the population."
Ramos noted the abundance of check-cashing and high-interest loan stores that exist in areas with heavy immigrant populations.
"Those alternatives don't serve our community well," he said.
The accounts have existed for years, but the credit union is stepping up the marketing.
"We think it's a benefit for people to have them in accounts instead of at home, or in their cars," said Garcia.
The credit union offers reassurances that account holders will still have access to the funds, even if they're deported, Garcia said, a fear that with the passage of legislation like Proposition 200 is becoming more prevalent within the Hispanic community.
"They're afraid that that institution will partner with the Department of Homeland Security and report to them who's in an undocumented situation or not," Garcia said. "We're not going to be required to notify an agency if we find out they're undocumented. We're not required by law to do that."
For Pizza Patrón, the decision was purely about profits, and by the chain's estimation, the controversial peso promotion ranks among its most successful ever.
The small pizza chain raised its national profile as more news outlets, bloggers and enraged citizens got wind of the story.
"If there wasn't any controversy linked to it, it obviously wouldn't have been as interesting, on the scale that it was," said Gamm, who noted that 31 percent of the stores have set all-time weekly sales records since the campaign began.
"We fully understand the reason it got the attention was because of the connection between Pizza Patron and immigration. We're OK with that. It wasn't our intention, it wasn't by design."
http://www.azcentral.com/news/articles/0130mr-creditunion0131.html
The Arizona Republic
Jan. 30, 2007 07:25 PM
A restaurant chain with a store in Mesa offers to accept Mexican pesos for pizza and receives threats at its Texas headquarters.
The state's largest credit union is bracing for similar fallout as it begins marketing savings accounts to undocumented immigrants.
Officials at Desert Schools Credit Union say the potential reward - thousands of new customers - justifies the risk of angering a few customers. Ignoring the state's fastest-growing population could be the equivalent of corporate suicide, one business expert said.
Pizza Patrón, with one Mesa location, is in the middle of a two-month marketing campaign aimed at customers who traveled to Mexico for the holidays and returned with unspent pesos. It resulted in record sales and an enraged backlash from people who thought the company was pandering to undocumented immigrants.
Desert Schools Credit Union, with nine Mesa locations, is aware of the potential for similar backlash after word gets out about its new marketing effort, which courts immigrants to deposit funds in special savings accounts.
But to the financial institution, just like the pizza vendor, a marketing campaign that targets Mesa's estimated tens of thousands of undocumented immigrants just makes good business sense.
For many Valley companies, it's about a potential profit at the risk of inciting a political debate. As Pizza Patrón found out, it's hard to pursue one without affecting the other.
"Our entire brand is dedicated to making a deeper connection with the Hispanic community. That creates some opportunity for adversity in our business, but we think it's good business," said Andrew Gamm, Pizza Patrón's director of brand development. "Our brand targets the youngest, largest and fastest-growing segment of our population."
Desert Schools is targeting the same group, albeit with a more altruistic approach. It says that the interest-bearing immigrant-savings accounts, which require account holders to sign paperwork acknowledging that they're in the country temporarily, amount to a community service by providing a safe place customers can deposit money.
Emma Garcia, Desert Schools director of community development, said the credit union's savings account program provides a public service, but it is aware of the potential for backlash.
"We know that some of our members will have issue with it," Garcia said. "We think we're doing what's best for the entire community. We think its best for all our members that we do not have large amounts of cash out there. It's not going to in any way impact whether they decide to stay (in the country) or not."
That's not even the biggest hurdle Desert Schools has to clear when making inroads into the immigrant community. As a financial services provider, the credit union has to bridge a fundamental trust gap between a large entity and a population that inherently distrusts such companies, said Ruben Ramos, director of public affairs with Arvizu Advertising and Promotions.
"In many cases, those new immigrants have a distrust about these financial institutions. You've got to overcome this barrier of how do you even get them in the credit union or into the bank," Ramos said. "There's no such thing (in Mexico) as FDIC insurance or deposit insurance. . . . There's this misunderstanding or fear of the institution of the bank."
Ramos, a former chairman of the Arizona Hispanic Chamber of Commerce, worked with Bank One before joining the Phoenix-based marketing firm last summer and said bilingual employees and administrators are the first step in bridging that gap.
Once companies, whether they're selling pizza or savings accounts, cross that divide, they have to convince their existing customers, no matter what their backgrounds, that marketing to the growing Hispanic population is good for the community and good for business, Ramos said.
"We're not in the business of asking people what their immigration status is. We're in the business of providing financial services to individuals," Ramos said.
"Fundamentally, I don't see anything negative that might be associated with what the credit union is trying to do, if people have a broader context about what the alternatives are for this segment of the population."
Ramos noted the abundance of check-cashing and high-interest loan stores that exist in areas with heavy immigrant populations.
"Those alternatives don't serve our community well," he said.
The accounts have existed for years, but the credit union is stepping up the marketing.
"We think it's a benefit for people to have them in accounts instead of at home, or in their cars," said Garcia.
The credit union offers reassurances that account holders will still have access to the funds, even if they're deported, Garcia said, a fear that with the passage of legislation like Proposition 200 is becoming more prevalent within the Hispanic community.
"They're afraid that that institution will partner with the Department of Homeland Security and report to them who's in an undocumented situation or not," Garcia said. "We're not going to be required to notify an agency if we find out they're undocumented. We're not required by law to do that."
For Pizza Patrón, the decision was purely about profits, and by the chain's estimation, the controversial peso promotion ranks among its most successful ever.
The small pizza chain raised its national profile as more news outlets, bloggers and enraged citizens got wind of the story.
"If there wasn't any controversy linked to it, it obviously wouldn't have been as interesting, on the scale that it was," said Gamm, who noted that 31 percent of the stores have set all-time weekly sales records since the campaign began.
"We fully understand the reason it got the attention was because of the connection between Pizza Patron and immigration. We're OK with that. It wasn't our intention, it wasn't by design."
http://www.azcentral.com/news/articles/0130mr-creditunion0131.html