Branding Marketing & Selling to Muticultural Audiences

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Presentation by Shawne Howell of Marketing Strategies, for MFHA in 2013. Presents facts and figures on key multicultural demographics in the US and makes a case to businesses on leveraging these findings to connect with multicultural targets.

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Branding Marketing & Selling to Muticultural Audiences

  1. 1. Got Cultural Intelligence? Copyright MFHA 2014
  2. 2. Branding, Marketing, and Selling to a Multicultural Audience Shawne Howell Marketing Stragtegies Copyright MFHA 2014
  3. 3. Outline • Overview of the Multicultural Market • The Business Opportunity • Case Studies • Key Success Factors • Conclusion Copyright MFHA 2014
  4. 4. Cultural Dynamics Have Changed Cultural dynamics have always existed in the U.S.A. but they have changed because the population growth and spending power of people of color have skyrocketed! `` THEN: Melting Pot NOW: Bowl of Gumbo Copyright MFHA 2014
  5. 5. Multicultural Market Growth Multicultural population growth is projected to outpace Caucasian population growth in the next 40 years Source: Nielsen Source: Nielsen Copyright MFHA 2014
  6. 6. What’s Driving Multicultural Population Growth? Non-whites represented almost 37% of the U.S. population in the 2010 U.S. Census; however 50% of all babies born were non-white for the first time in U.S. history Source: The U.S. Census Copyright MFHA 2014
  7. 7. The Tipping Point Based on current projections, after 2040, the U.S. will be majority non- white for the first time in its history! Source: Policy Link Copyright MFHA 2014
  8. 8. Multicultural Buying Power As of 2010, the buying power of the multicultural market at approximately $2.5T was tied with France for the 5th largest Gross Domestic Product (GDP) of the leading countries in the world! 1. U.S.A 2. China 3. Japan 4. Germany 5. France and the U.S. Multicultural Market Source: Washington Post Copyright MFHA 2014
  9. 9. Buying Power Growth • In the past decade, the buying power of the multicultural market has surpassed the majority market buying power • The buying power of people of color is growing at a faster rate than Caucasians (213%) Segment 2010 Buying Power 1990-2015 Growth Rate Hispanics/ Latinos $1 trillion 605% African- Americans $957 billion 294% Asian- Americans $544 billion 571% Native Americans $68 billion 362% Source: Selig Center for Economic Growth Source: Selig Center for Economic Development Copyright MFHA 2014
  10. 10. The Business Opportunity Copyright MFHA 2014
  11. 11. Key Industry Facts • All multicultural consumers over index in the food category. Key food categories – Spices – Extracts – Dried Vegetables – Seasonings – Condiments – Sauces Source: Nielsen 11 Copyright © 2013 MFHA, ALL RIGHTS RESERVED
  12. 12. Key Industry Facts • In recent years, spending on eating away from home in African American and Hispanic households has increased 43.6 % anD 34.3%, respectively Copyright MFHA 2014
  13. 13. Hispanic/Latino Key Demographics • Buying power of approximately $1.3T • Hispanics make up approximately 16 percent of the total U.S. population, representing 50.5 million people • In the last decade, Hispanics accounted for every 1 out of every 2 individuals added to the U.S. • 10 states with largest Hispanic markets: California, Texas, Florida, New York, Illinois, New Jersey, Arizona, Colorado, New Mexico, and Georgia. Sources: Selig Center for Economic Development and The U.S. Census Copyright MFHA 2014
  14. 14. Hispanic/Latino Lifestyle & Culture • Hispanics/Latinos are an ethnically and racially diverse population with the majority being Mexican Americans (65%) • A large majority (76%) of the Hispanic/Latino community speaks English, and 71% speak Spanish at home • Hispanics/Latinos are brand loyal, but tend to be price conscious. • Almost 1/3 of Hispanics/Latinos work in service industries • Hispanics are family-centered – The extended family plays a major role • Religion plays a central role in the lives of Hispanic/Latino Americans Sources: The Pew Center, National Council of La Raza (NCLR) and CEPR Copyright MFHA 2014
  15. 15. African-American Key Demographics • African-Americans have approximately $957B in buying power! • Despite being the hardest hit by the current recession, the African-American buying power is projected to rise to $1.2T by 2015, an increase of 25% • African-Americans represent approximately 13% of the population, or 38 million people in the U.S. • Between 2010 and 2015, African-Americans will grow 38 people/hour • 10 states with the largest African-American markets: New York, Texas, Georgia, California, Florida, Maryland, Illinois, North Carolina, Virginia, and New Jersey Sources: The Selig Center for Economic Growth, The U.S. Census and Geoscape Sources: Selig Center for Economic Development and The U.S. CensusCopyright MFHA 2014
  16. 16. African-American Lifestyle & Culture • African-Americans are brand conscious and the most brand loyal. • African-Americans are consumer trendsetters • The majority of African-Americans are spiritual people • 54% of African-Americans are educated, ranging from some college(34%) and up to a master’s degree (21%) • Most preserve traditions associated with music, culture and food. • African-Americans trust Black media more than any other institution, and many are distrustful of main stream media. • Most prefer businesses that give back to the Black community. Sources: 2008 Radio One/Yankelovich Study and Target Market News Copyright MFHA 2014
  17. 17. Asian-American Key Demographics • Asians have nearly $544B in buying power! • By 2015, Asian buying power is expected to grow 42 percent to $775 billion • The nation's 14.5 million Asian-Americans are nearly 5% of the U.S. population • The majority of the population consists of Chinese/Taiwanese; Asian Indians; Filipino, Vietnamese and Korean • Three -fourths of Asian workers were born outside the United States; but 71.4% of Asian workers are U.S. citizens • 10 states with the largest Asian consumer markets: California, New York, Texas, New Jersey, Illinois, Hawaii, and Washington, Florida, Virginia, Massachusetts • Asians are the fastest growing multicultural race Sources: The Selig Center for Economic Growth, CEPR and The U.S Census Copyright MFHA 2014
  18. 18. Asian-American Lifestyle & Culture • Asian-Americans are more likely to look at products and features before making a purchase (value concious) • Asian American households tend to be larger, with more workers and several generations living under one roof • The largest single industry for Asian-American men is restaurants • • Asian Americans tend to live two distinct socio economic lifestyles among their population – High income earners – Low income earners • The ‘Asian Pacific American’ umbrella includes over 45 distinct ethnicities speaking over 100 language dialects Sources: CEPR, Pew Research Center and Nielsen Sources: The Selig Center for Economic Growth, CEPR and The U.S Census Copyright MFHA 2014
  19. 19. Case Studies Copyright MFHA 2014
  20. 20. Restaurant Industry Case Study Situation A leading fast food chain wanted to feature an award winning African- American singer in a celebrity campaign series to introduce new products Strategy/Execution The company produced a commercial for a new fried chicken wrap product incorporating the melody of the award winning singer’s song An unfinished version got into the hands of the public Results A firestorm of negative publicity from leading magazines, nightly newscasts, daytime shows, blogs, and social media sites that lasted for weeks A barrage of negative feedback and outrage from African-American customers Public apologies had to be issued from the singer, and to the singer and the community A damaged image from negative publicity Wasted resources and lost sales Sources: The Selig Center for Economic Growth, CEPR and The U.S Census Copyright MFHA 2014
  21. 21. Restaurant Industry Case StudySituation A leading fast food chain wanted to give back to the diverse communities of their employees, suppliers, and customers Strategy/Execution The company collaborated with their African-American Advertising Agency of record to develop an African American grassroots program in a low income community, that would have a “fun” element and activities (basketball, local and national entertainment, and prizes), as well as an educational component Results Increased brand loyalty and relevancy Enhanced credibility and affinity Strengthened relationship with community and provided a positive family oriented experience Created educational opportunities for GED completion and attend college attendance in 14 key markets that would impact the community for several generations Copyright MFHA 2014
  22. 22. Food Manufacturer Case Study Situation A leading cookie manufacturer wanted to see if its current advertising campaign resonated with Multicultural consumers Strategy/Execution The brand group collaborated with a national research company to conduct an ad effectiveness study An English language TV ad featuring a familial theme was tested with Caucasians and Multicultural customers The benchmark for a “top” ad was 120 Results The ad received a top ad score of 320 amongst Hispanic customers The index for Hispanic customers was 2.7 times higher than the general market Sales amongst Hispanic consumers increased 41% Insights revealed that multicultural customers respond to certain themes, even when it is a general market ad Spending efficiencies were realized Copyright MFHA 2014
  23. 23. Key Success Factors Copyright MFHA 2014
  24. 24. Key Success Factors Ask yourself these questions before you proceed… • What does your organization already know? • Are you prepared to be the initiative “champion”, or support him or her? • Which multicultural group(s) have a need for your products or services? • What are the key culture and lifestyle elements you can leverage the most for your business? • Are they currently spending money in the category(ies) your business represents • Where is the low hanging fruit? • Are there resources that can be allocated? Copyright MFHA 2014
  25. 25. What Top Performing Companies Do • 100% gather relevant information from different sources so that they can maximize their knowledge • 100% target more than 1 group • 81% feel it’s important to reach multicultural customers • 45% have senior level positions dedicated to multicultural marketing and sales • 40% have a separate budget for multicultural marketing and sales efforts 45% of top performing companies have senior level positions dedicated to multicultural marketing and sales efforts • Make sure you measure results • Learn from your mistakes, and make adjustments as needed • Share best practices • Never stop learning • 45% of top perfoSource: Nielsen • rming companies have senior level positions dedicated to multicultural marketing and sales efforts Copyright MFHA 2014
  26. 26. Perception vs. RealityPerception Asian Americans are smarter than everyone else; all are high achieving; Asians are the “model minority” Reality Many Asians immigrated here because they were able to receive visas due to technical skills; immigrant children of other cultures also have high GPA’s; while high achieving Asians have more college degrees than the average American, more than 1/3 of Cambodians and Laotians do not have a high school diploma and live in poverty Copyright MFHA 2014
  27. 27. Perception vs. RealityPerception Blacks/African- Americans are poor; they are uneducated; they speak English so they don’t need a multicultural marketing focus Reality The Black race is diverse and 1/3 of all Blacks make more than $50,000 a year; 54% of them have some education beyond high school; and although they speak English, they have significant cultural differences that warrant targeted marketing Copyright MFHA 2014
  28. 28. Perception vs. Reality 28 Copyright © 2013 MFHA, ALL RIGHTS RESERVED Perception Hispanics/Latinos are illegal and undocumented; they can’t speak English; they don’t want to associate with American society Reality The majority of Hispanics are in the U.S. legally and 60% were born here; 76% of them speak English, and although they want to preserve their cultural traditions like other ethnic and racial groups, they also want to be a part of American society
  29. 29. Conclusion • There are significant cultural differences that can be leveraged to grow your business for the long-term • Increase your Cultural Intelligence to increase your comfort and knowledge • Strive to replicate the top performers • Invest in multicultural efforts for the long- term • Don’t just focus on one group • If you approach the multicultural market in the right way, there is no way you can go wrong! Copyright MFHA 2014
  30. 30. Resources 2010 Census Data – http://www.census.gov/2010census/data/ Selig Center For Economic Growth – http://www.terry.uga.edu/selig/ Pew Hispanic Center – http://pewhispanic.org/ Target Market News – Targetmarketnews.com Pew Report on Asians – http://www.pewsocialtrends.org/asianamericans Center for Economic and Policy Research – http://www.cepr.net/documents/publications/aapi-2011-07.pdf Copyright MFHA 2014
  31. 31. Contact Information info@mfha.net www.mfha.net 401.461-6342 Copyright MFHA 2014
  32. 32. Meet Gerry A. Fernandez President & Founder Gerry Fernandez is MFHA’s chief visionary and thought leader on multicultural business strategies in the industry. He is the “voice” of MFHA. Copyright MFHA 2014
  33. 33. Copyright MFHA 2014 “The purity of your purpose is evidenced by the quality of your outcome.” -- Gerald “Gerry” A. Fernandez • Nation's Restaurant News “The Power List: 50 Power Players Top Catalysts” February 2014 • Hermann G. Rusch Humanitarian Award from the American Culinary Federation • Nation's Restaurant News “50 Power Players,” January 2000 • Lodging Magazine, One of the “75 Profiles in Leadership” • The Black Culinary Alliance Heritage Award • Rainbow/P.U.S.H. Coalition’s Reginald Lewis Trailblazer Award • Nation’s Restaurant News Innovator Award for founding MFHA • APEX Award for Distinguished Service by Black Meetings & Tourism Magazine
  34. 34. Copyright MFHA 2014
  35. 35. Lead Members/Supporters Copyright MFHA 2014

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