2. Multicultural Consumers Are A Large
and Growing Population
Minorities, now roughly one-third of the U.S.
population, are expected to become the majority
in 2042, with the nation projected to be 54% “minority”
in 2050.
They are the consumers of the future
Source: U.S Census Press Release, 2008
3. Multicultural Consumers Have Considerable
Dollars To Spend…
2008 Buying Power
(billions of dollars)
Country Ranking
African American 913.1 16
Hispanic 951.0 15
Asian 509.1 20
Total Multicultural 2,373.2 7
1 United States 13,751.4
2 Japan 4,384.2
3 Germany 3,317.4
4 China 3,205.5
5 United Kingdom 2,772.0
6 France 2,589.8
7 Total Multicultural 2,373.2
8 Italy 2,101.6
Multicultural Market would rank as
the 7th Largest Global Economy
Source: The Multicultural Economy 2008, Selig Center for Economic Growth; 2007 World Development Indicators Database, World Bank
4. & They Have A Strong Affinity To Brands…
It’s risky to buy a brand you are not familiar with.
I like to buy brands that make me feel I’ve made it.
AA
61%
Hispanic
61%
AA
58%
Hispanic
61%
Once I find a brand I like, it is very difficult to get
me to change brands.
The brands you buy tell a lot about the type of
person you are.
AA
70%
Hispanic
66%
AA
51%
Hispanic
52%
Source: 2009 Yankelovich Multicultural Monitor
7. The Proof Is In The Pudding
…African American Media Spending is down
Source: The Nielsen Company
8. Giant Marketers are spending less
…with a few sustainingSource: The Nielsen Company
Top 10 African American 2007 2008 %
Advertisers ($ mil) ($ mil) Change
Procter & Gamble Co. $99.1 $88.7 -11%
Johnson & Johnson $36.8 $47.6 29%
Wal-Mart Stores Inc. $23.7 $41.1 73%
Verizon Communications Inc. $34.7 $35.6 3%
General Motors Corp. $40.5 $34.9 -14%
McDonalds Corp. $37.0 $31.1 -16%
L’Oreal SA $26.9 $28.4 6%
U.S. Government $27.1 $27.3 1%
AT&T Inc. $26.1 $25.1 -4%
National Amusements Inc. $32.5 $24.0 -26%
Total Top 10 $384.5 $383.8 -0.2%
9. Most categories following the downward trend
Source: The Nielsen Company
Top African American 2007 2008 %
Product Categories $ mil $ mil Change
Quick Service Restaurants $87.5 $77.1 -12%
Department Stores $72.5 $74.2 2%
Motion Picture $90.4 $63.4 -30%
Wireless Telephone Svcs $74.0 $54.0 -27%
Pharmaceutical $57.6 $52.1 -10%
Direct Response Products $42.7 $43.6 2%
Apparel $46.2 $33.8 -27%
Auto Insurance $50.3 $32.8 -35%
Restaurants $31.0 $32.2 4%
Auto Dealerships $40.8 $30.4 -26%
Total Top 10 Categories $593.0 $493.7 -17%
10. As Sam says…
“I’m broke as hell, and I’m not going to take it
anymore!”
11. The Advertising Research Foundation (ARF) is focusing
on the business issues acting as an impediment to the
growth of Multicultural Advertising and Marketing
12. Strategic Structure
Goal | Mission
To establish the ARF as the ONLY organization that is providing
a scientific approach for resolving contemporary multicultural
marketing problems.
Marketing Objective
To position the ARF as the thought-leader for incorporating
multicultural consumers into “mainstream” marketing and
advertising.
Marketing Strategy
To develop ARF initiatives that respect and understand the
contributions, opportunities and importance of cultural consumers to
the future business environment.
14. Strategic Tactics
Develop a 3-year program that:
(a) Show that it is “good” business to invest
marketing dollars to specifically address
multicultural segment opportunities.
-- Share Point Analysis
-- Opportunity Gap Analysis
15. Strategic Tactics
b) Develop algorithms that confirm the value of
multicultural consumers and allow marketers
to determine the ROI of their targeted efforts
-- Measurement “umbrella” issue
• Need uniformity of measurement by vendors
• Better measurement by vendors
• It’s about relevancy not over-delivery
16. Strategic Tactics
c) Illustrate ‘successful’ efforts with great case
studies of brands that have done it “right” and
seize the opportunity
-- Need case studies with great results
17. Strategic Tactics
d) Structure an ARF Multicultural Summer
Intern Program for Juniors in college and first
year graduate school students to replenish,
rejuvenate and refresh the cultural resources
needed to “fuel” cultural growth by marketers
and advertisers.
