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Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
Multicultural Marketing
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Multicultural Marketing
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Multicultural Marketing

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Presentation at the CBI Conference on Multicultural Marketing

Presentation at the CBI Conference on Multicultural Marketing

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  • 1. Alignment of Cultural “DNA” with Brand Attributes  in Marketing Campaigns April 30, 2008 THE CENTER FOR BUSINESS INTELIIGENCE  1
  • 2. Corporate America Recognizes the Potential. Ethnic Markets Are In the Growth Phase Intro Phase Growth Phase Mature Phase Decline Phase General Market SALES & PROFITS Growth Phase Strategies Identify under-served markets Mature Phase segments Strategies Align brand and targeted segment’s attributes (culturally relevant) Leverage attributes to maximize brand consideration (reasons to believe in the brand) Deliver a unique customer Ethnic Markets experience • Hispanic • Asian American Anchor the brand through cross • African American sales and referrals Source: Marketing Management – Philip Kotler 2
  • 3. The US is Now A Country With Different Colors, Tastes and Rhythms Multicultural Penetration 1970 2000 3
  • 4. Multicultural Consumers’ Economic & Geographic Characteristics Are Evolving 4
  • 5. Cultural Consumer Groups Have Different World Views and a Unique “Cultural DNA” 5
  • 6. Macro Differences Among Major Cultural Groups Philosophical Orientations of Different Cultural Groups Cultural Groups Value Orientation Knowledge System of Way of Living World Views Orientation Thought European Person-Object Cognitive: One Dichotomous: Technology: All knows through Either/Or behavior is Euro-American The highest value counting and repeatable and is in objects or measuring. reproducible. the acquisition of objects African-American Person – Person: Affective: One Diunital: The Ntuology: All knows through union of behavior is inter- Hispanic The highest value feeling and opposites. related through is relationship Arabian rhythm. human and between people. spiritual networks. Asian Person – Group: Conative: One Nyaya: The Cosmology: All The highest value knows through objective world is behavior is inter- Asian-American is in group unity. self independent of related in the Native American transcendence. thought and harmony of the mind. Polynesian universe. 6 From Nichols E.J. Understanding the Philosophical Orientation of Different Cultural Groups.
  • 7. It’s not just about a different language, it’s also about a different culture Hispanic Cultural DNA Relationship Oriented Low Reliance on Institutions Inter- Family dependence Oriented Inclusiveness of Extended Family 7 Source; Isabel Valdes
  • 8. Cultural DNA - African-American Consumers African-American The Black Experience Independence (overcoming adversity) Gratification Diversity Slavery Relationships (recognition of uniqueness) Post Slavery Discrimination 8 Source: “What’s Black About It” Miller-Kemp; Yankelovich.
  • 9. Cultural DNA - Asian-American Consumers Asian-American Communication / Non-Confrontation Celebrations Cooperation Group Philosophy / Church Community & Family 9 Sources: Various data sources.
  • 10. . . . And, Multicultural Consumers Have Different Experiences & Attitudes Towards Financial Services . . . 10
  • 11. Multicultural Consumers’ Financial Holdings Proprietary Slide Omitted 11 Source: DataMonitor.
  • 12. Attitudes Toward Insurance Percent of Households Who Agreed In A 2001 Survey: “I buy the minimum amount of (auto) insurance that is required by law” 47 46 44 40 43 Household Income: 38 34 Less than $25K 25 38 34 $25K to $44K 21 44 14 $45 to $75K 23 17 12 More than $75K Ethnicity/Race: Anglo Hispanic African- Asian Am erican 12 Source: Barraza Consulting Group Knowledge Database.
  • 13. Brands, Like Consumers Have Distinct Attributes & Personalities 13
  • 14. Burger King 14
  • 15. Red Robin 15
  • 16. Treo 16
  • 17. iPhone 17
  • 18. Dasani 18
  • 19. Perrier 19
  • 20. . . . Financial Service and Insurance Companies Can Compel Multicultural Consumers To Buy Their Products & Services . . . 20
  • 21. Alignment of Brand and Consumer Attributes Maximizes Business Results Barraza Consulting Group’s Alignment Process 21
  • 22. Case Study:  Brand XYZ Multi‐Line Insurance Company Process to Align Brand XYZ With Target Hispanic‐ Centric Consumers in Major Metro Market 22
  • 23. BCG’s Alignment Process for Brand XYZ DISCOVERY DESIGN DEPLOY DISCOVERY DEPLOY DESIGN • Strategies • Communicate Goals • Assess Current State • Sales Targets/Goals • Build Out Process • Management Interviews • Marketing Plan • Start Creative Development • Distribution Channel • Scorecards • Maintain Org. Alignment Interviews • MarCom Plan • Design Research / Measure • Benchmark • Research Plan • Transfer Knowledge • SWOT • Organizational Alignment • Manage Blind Spots • Situation Analysis • Internal Comm. Plan • Initiate Research • Plan for Design Phase • Operating Budget • Launch Initiative • Measurement Plan • Performance Checkpoint • Populate Scorecards • Strategic Intent • Baseline 23
  • 24. Business Opportunity Analysis for Brand XYZ Population Growth 2006 to 2011 – Selected States • Market Sizing Percentage Change By State (2006 to 2011) White N H on ispanic Black N H on ispanic Hispanic Population • Demographic Trends 40% 35% • Geographic Analysis 30% 25% • Middle Market Estimation 20% 15% 10% • Modeling 5% 0% a tts a ey ni on rk ee o gan gia olin ia ia a a a s s oi lva in se gt xa Yo hi an zon ss -5% rn rs id r r i or di rg hu in ifo Je in O ich eo Ca Te ew i Ill nsy e Fl Vi ac Ar enn al sh In ew G th M a C N s n or as Pe T N W N M Population Growth 2006 to 2011 – Florida Hispanic Household Income 2006 to 2011 - Florida Proprietary Slide Omitted Proprietary Slide Omitted 24 Source: Analysis by Barraza Consulting Group. .
  • 25. Population Growth 2006 to 2011 – Florida Proprietary Slide Omitted Significant Hispanic growth in Florida will continue. Half the Florida population growth from 2006 to 2011 will be Hispanic. 25 Source: Analysis by Barraza Consulting Group. .
  • 26. Hispanic Household Income 2006 to 2011 - Florida Proprietary Slide Omitted There is a sizeable Hispanic middle market in Florida. Over the next five years middle market Hispanic households will increase rapidly. 26 Source: Analysis by Barraza Consulting Group. .
  • 27. Business Opportunity Model Auto Insurance Barraza Consulting Group’s BOMSM 27
  • 28. Intelligence About Brand XYZ • Strengths – 100+ years in business. – Strong bond with its independent agencies. – Claims and customer service are its key differentiators. – Has distribution capability in place to sell to target segment. • Weaknesses – Lack of brand equity and recognition among consumers. • Opportunities – Minimal channel competition for ethnic markets. – Agencies and organization recognize the market opportunity. • Threats – Competitors starting to focus on the value of excellent service. 28 Source: Interviews, data analysis, synthesis by Barraza Consulting Group.
  • 29. Consumer Insight Enabled Alignment With Brand XYZ Attributes Proprietary Slide Omitted 29
  • 30. Brand XYZ Core Strategies • Brand messaging: “….. ”. Promotion • Leverage brand longevity, 100 years of Brand XYZ heritage. • Weak brand equity • Communications technology to drive consumer to distribution channel. among consumers. • Minimal IA channel competition. Placement • Strong bond with agencies. • Align target geographies with best in class agencies. • Agencies recognize market •. Implement agency mentorship program. opportunities. • Existing capability to sell to target segment. Product • Provide In-culture education.. • Claim & customer service are • Build-out infrastructure, based on demand. major differentiators. • Continually assess customer experience to align with growth initiatives. • Competitors are starting to focus on the value of excellent service. People • Brand XYZ commitment to growth markets publicized. • Infrastructure ready to support • Leverage diversity to gain competitive advantage. Hispanic market. • Org. recognizing market opportunities. Pricing • Track segment performance. • Distribution believe the Note: selected strategies. • Adjust targeting as needed. middle market is accessible. 30
  • 31. Brand XYZ: Targeting Hispanic Cultural Centricity (zip+4) Del Rio Del Rio Egypt Lake Egypt Lake SLIG H SLIG H SLIG H West Park West Park Y 41 Y 41 Y 41 US HW US HW US HW WK KK MO HAW MO HAW MO HAWK WK WK own 'N' Country wn 'N' Country East Lake-Orient Park East Lake-Orient Par H H H RO UG RO UG O UG LS BOR 0 HILLSBO LS BO 0 HILLS LS WY 580 HILLS HWY 58 HWY 58 ST ATE H STATE STATE TALIAFE TALIAFER TALIAFE TA TALIAFER Y 574 57 4 57 4 57 57 57 E HW Y E HW Y E HW STAT STAT STAT ERRO RRO RRO RO RO RO RO RO US US U U O STATE HWY 589 STATE HWY 589 STATE HWY 589 STATE HWY 589 40TH 40TH 40TH 4 II 4 I4 4 I4 II 4 HWY 45 Y 45 Y 45 ST AT E HW STATE HW US US STATE CO LUMBUS CO LUMB 39TH 39TH CO LUMB 89 39TH 39TH 589 89 8 Y5 Y5 WY OW ER RR HOW E HOW E WY US HW US HWY US HWY41 US US US US US HW EIS ENH HW Tampa EIS EN EIS EN Tampa EH NE NE N N N E TE AT US HWY US HWY 92 AT US H Y US US HWY 92 BR BR BR STA ST ST ST AS 41BUS AS AS SK SK SK SK W 92 BUS BUS BUS ST ST BUS ST ST A A AA A TA AT AT AT 92 S S TE TE HWY 60 CL EVE LAND Y 60 CLEVELAN D Y 60 CLEVE LAN D CL EVE LAN CLEVELAN CLEVELAN E EH STATE HW STATE HW ST AT E Palm River-Clair Me M HW HW Palm River-Clair Me H HW HW H DY Y EDY DY NED Y YY Y NN E 18 8 NNE 8 8 60 60 60 N 60 6 6 6 6 81 8 61 Y6 1 86 KEN KEN 618 WY 61Y KE Y KE 61 YW HW YW Y6 H 6 EH 676 6 EY HWY 67 HWY 67 HWY TW HW HW TW HE TE STATE STATE STATE EAT EH ST A TTA E AST AT AT AT S ST ST ST ST Overlays Cultural for Classes CULTURE SCORE Centricity CITIES in FLZIPPLUS4 FL ADDRESSES Low 0.0 - 20.3 FLZIPPLUS4 STREETS_E Medium 20.3 - 27.1 MAJ HWY RAM1 27.1 - 67.7 High INTERSTATES Excluded MAJ HWY RAMP Not Selected HIGHWAY(H) AIRPORT PLY HWY (H) STATESBYNAME WATER HYDRO_MJR PL 31
  • 32. Brand XYZ: Measurement of Hispanic Centric Business Brand XYZ Households Brand XYZ Market: Miami Dade Market Segment Baseline Analysis Market Segment: Hispanic Centric Developed by Barraza Consulting Group Brand XYZ: as of 1Q07 Households Households Hispanic Centricity Brand XYZ Market Brand XYZ Score Households Households Share % Auto Only Prop Only Auto & Prop 4.7 10 info. withheld (iw) info. withheld (iw) info. withheld (iw) info. withheld (iw) info. withheld (iw) 8,571 131,693 6.5 5,943 2,217 416 9 7.6 8 i.w. i.w. i.w. i.w. i.w. 8.4 7 i.w. i.w. i.w. i.w. i.w. 0.1 6 i.w. i.w. i.w. i.w. i.w. 15,217 103,907 14.6 6,332 7,062 1,823 5 18.0 4 i.w. i.w. i.w. i.w. i.w. 14,407 83,809 17.2 5,932 6,332 2,143 3 155 3,258 4.8 107 48 - 2 0.0 1 i.w. i.w. i.w. i.w. i.w. Total Market 11.0 i.w. i.w. i.w. i.w. i.w. Total in 76,486 740,890 10.3 38,930 29,358 8,187 Scores 4-10 Barraza Consulting Group, July 2007 NOTES: BRAND XYZ RESULTS INDEXED TO MAINTAIN CONFIDENTIALITY 32 i.w. = information withheld to maintain confidentiality
  • 33. The Power of Differences. The Difference that Makes the Difference. 33
  • 34. Hahns Beer: Gender Video Clip Shown 34
  • 35. Maxima: Anglo Video Clip Shown 35
  • 36. Maxima: African-American Video Clip Shown 36
  • 37. Allstate: Asian Video Clip Shown 37
  • 38. Allstate: African-American Video Clip Shown 38
  • 39. Allstate: Hispanic Video Clip Shown 39
  • 40. “The secret to maximizing the growth potential offered by multicultural markets is an organizational effort that is systematic and holistic.” . 40
  • 41. What Is Organizational Effectiveness in Multicultural Marketing? Organizations evolve from Dormant to Leadership in pursuit of High Growth Market Segments, like the Hispanic market. Leadership Multicultural Marketing strategies “baked in” and fully e ss incorporated into business goals leading to broad organizational accountability for results. ucc Advanced Business unit aligns multicultural marketing strategies with business objectives. &S Emerging Business unit dedicates resources and organizes unique multicultural marketing effort. Awakening Local market leaders (e.g., Brand and Sales Managers) identify opportunities to accelerate growth th by focusing on multicultural market segments. ow Dormant Brand awareness and consideration by multicultural market segments is extremely low or non-existent. Gr 41
  • 42. What are the Dimensions of Organizational Effectiveness? Dormant Awakening Emerging Advanced Leadership Inactive Reactive Pro-Active Strategic Under representation of HGMS Periodic analysis of the book HGMS baseline, within book Measurement system HGMS measurement and Segments (High Growth Market Segments) of business identifies of business, and growth continuously monitors accountabilities integrated into Market within book of business relative opportunities and challenges objectives established. HGMS performance with corporate and business unit to the market opportunity. among HGMS. scheduled updates to metric systems. corporate stakeholders. Distribution channels concerned Unilateral actions by Business Unit provides Strategies developed to Segmentation models identify about missed market distribution channels to marketing support, as needed, systematically provide and support HGMS in a Sales opportunities. address HGMS needs. to distribution channels. marketing support. changing market environment. Poor customer experience with Ad hoc service adjustments Service best practices Broad communication of HGMS customer service Experience Customer underlying service issues by front line employees identified and strategies service best practices with insights and practices unresolved. address unique needs of developed to improve service significant improvement of evaluated for their HGMS to HGMS customer satisfaction. applicability to the broader customer base. Brand awareness and Sporadic participation at Business unit provides funding Community Outreach Community Outreach Community consideration by HGMS is community events to develop for community outreach and strategies developed to strategically aligned with Outreach extremely low or none existent. awareness and consideration. event participation selectively and strategically business objectives and brand engage social-civic leaders participate on selected organizations organizations’ boards of directors Hidden asset and often The brand recognizes that The brand assesses and Sponsorship and mentorship Diverse suppliers strategically Suppliers underleveraged resource. spend is an investment in communicates to leaders of diverse suppliers selected in communities communities' development. (internal and external) the targeted for growth. economic impact of supplier spend Employee complaints lead to Corrective actions developed Work force diversity measured Diverse candidates sought Diverse candidates mentored EEOC investigations. to address complaints. as percent of work force. and selected for leadership and fast tracked into key positions. positions. (Networks) Employee High turnover of diverse Input from diverse employee Employee resource groups are Employee resource groups Employee resource groups are employees. groups is sought. formed and engaged in HGMS are recognized and mentored assigned senior leader insight. for leadership development. sponsors who actively solicit input on employee and business issues. 42
  • 43. Why Does Organizational Effectiveness Matter? The development process from Dormant to Leadership is rigorous, but the rewards are huge providing up to twice the market growth index. 2.00 1.75 Hispanic Growth Index Growth Index 1.25 1.00 Index 0.50 Dormant Awakening Emerging Advanced Leadership 43
  • 44. “Reaching markets with the right voice”…. When the right voice is used, consumers hear, understand, and feel your brand…. you create an emotional reaction that connects and attracts consumers to your brand…. consumers see themselves within your brand characteristics making them feel understood and welcomed…. 44
  • 45. Multicultural marketing forces you to understand your brand from consumers’ or customers’ point of view. Maximum and sustained success is achieved by delivering the essence of your brand broadly/holistically where the targeted consumer sees and engages a seamless organization that values their uniqueness. 45
  • 46. BRAND XYZ In the very end frame you see a table setting with your brand name as the family/familia gathers for the family meal… You are welcomed as a member of the family. 46

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