Diversity in a Diverse Market

Creating Products for Diversity in a Diverse Market Multicultural Markets Do Not Leave Money Not Dilemma The Multicultural The Table Background • The 2000 Census • Immigration • New Generations The Multicultural Metropolis • Los Angeles, CA • New York, NY • Chicago, IL The States Overview WA 7.5 MT OR VT 0.9 ND NH 1.7 ME0.7 2.0 ID 1.2 MN 8.1 2.9 SD WY 7.9 WI MI VT N H NY 15.1 MA MA 6.8 RI 8.7 1.4 NE IA 3.6 2.8 IL 3.3 6.4 NV CA 19.7 UT 5.5 CO IN OH 1.9 KY 1.5 9.0 12.3 KS 3.5 32.4 17.1 MO 0.7 WV 7.0 OK 2.1 AR CT PA 3.2 N J 9.4 NJ MD D E 13.3 DE 4.8 VA 4.7 MD 4.3 N C 4.7 AZ TN 2.2 SC MS DC 7.9 25.3 NM 42.1 TX 5.2 3.3 1.4 LA 1.7 AL GA 2.4 5.3 32.0 2.4 FL HISP 2000 0.00 to 2.00 2.00 to 4.90 4.90 to 12.00 12.00 to 100.00 Other 100 200 300 Miles 16.8 0 Demographics “America is a growing dynamic country whose population will increase 50% over the next 50 years. Almost 90% of that increase will be in the minority community; and this is where the emerging markets will take place in America. It is clear that both Fortune 1000 companies and minority business need to pay attention to this growing population.” William M. Daley U.S. Secretary of Commerce Demographics • U.S. Population: 290 million • Hispanics: 41.3 million – Expected to rise to 102.6 million by 2050 at which point they are expected to be 24% of the population – One language, West Coast, Caribbean • Asians: 13.5 million – Many languages • African American: 39 million – One language U.S. Census as July, 2004 Foreign Population Increasing 32.5 Foreign Born Population in millions Percent of Total Population 19.8 13.9 14.8 13.6 10.3 9.2 8.8 6.9 5.4 4.7 13.514.7 13.2 11.6 14.2 11.6 10.3 9.7 9.6 14.1 11.5 7.9 6.2 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2002 Source: Marketing to American Latinos, 2002 1990’s immigrants and their offsprings drove growth in decade US Pop. Growth 1990’s Immigrants Births to 1990’s Immigrants Share of Pop. Growth 25,572 25,572 11,206 11,206 1,663 44% 50% Source: Marketing to American Latinos, 2002 Hispanics Account for over half of migration Asia Latin America Europe 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1900 1910 1920 1930 1960 1970 1980 1990 2000 Source: Marketing to American Latinos, 2002 Demographics • The median income of Asian-American households is $55,521, compared to $45,904 for non-Hispanic white households and $33,447 for Hispanic households, according to the U.S. Census Bureau. • Median age of overall U.S population: 35 • Median age of Asian-American: 31 • Median Age of Hispanics: 26 U.S. Census Bureau U.S. Hispanics Country of Origin 10% 2% 4% 20% 66% Mexico Dominican Puerto Rico Cuba Other Hispanic U.S. Census Bureau Asian American Segments 88% of total Asian American population accounted for by 6 sub-groups • • • • • • Chinese Filipino Asian Indian Vietnamese Korean Japanese U.S. Census Bureau, 2004 2,432,585 1,850,314 1,678,765 1,122,528 1,076,872 796,700 23.7% 18.1% 16.4% 11.0% 10.5% 7.8% Hispanic Consumer Insight • Hispanics purchase about 22% more on grocery products than non-Hispanics. • Hispanics are the most brand loyal of any consumer demographic. • 67% of Hispanics are more inclined to purchase brands that are advertised in Spanish. • All major brands have developed new products targeting Hispanics. U.S. Census Bureau Selig Center for Economic Growth at the University of Georgia Asian Consumer Insight • Asian American families have larger average family size: – Average household is 3.4 people – 61% of families are married-couple families – 83% children live with both parents – 2 or 3 generations living under the same roof is very common Enduring Values of African Americans • • • • • • • • • Family and Community Heritage and Ethnic Uniqueness Respect Religious Beliefs Personal Achievement Freedom of Choice Individuality Self-Reliance Brands that Reflect an Image of Success Cultural Values Non-Latino Success: Latino Success: Family/Group Satisfaction Class Distinction / Authority Conformists/ Honor Traditions Personal Achievement Equality Nonconformists / Independent Individualism Assertiveness/ Aggressiveness Individual Needs Competition Collectivism Avoidance of Direct Confrontation Family First Cooperation/ Respect Source: Isabel Valdes, Marketing to American Latinos, 2000 Current Numbers • Immigration in 2004 was down 24 percent*. • 6.1% of first-generation Hispanic children ages 6-15 spoke only English**. • Third generation, had lost their Spanish skills, with 71.6% of all Hispanic children speaking only English**. • About 40% of all Hispanics in the U.S. are foreign-born, with 52% of these immigrants arriving between 1990 and 2002. And, the * majority of the immigrants are young. ** Pew Hispanic Center released, "Rise, Peak and Decline: Trends in U.S. Immigration 1992-2004. Published Study, professor of sociology at the University at Albany, State University of New York. Richard Alba, 2005 Hispanics Have Already Become the Majority in California’s Maternity Wards In 2002, 51% of all births in California were to Latinos 2004 Teething 2009 School 2024 Voting 2019 Driving The Projections • “No one can predict what will happen 50 years from now. But the demographics indicate that Spanish will be extremely important for the next decade, and it most likely will remain so for at least 20 years.” David Woolfson, Senior VP of network research, Univision Networks. Media Highlights Hispanic Media Highlights • In Los Angeles, viewers can choose from seven English-language newscasts and three others in Spanish. • San Antonio, Texas: Hispanics are already the dominant ethnic group, comprising about 60% of the Nielsen TV market. Hispanic Media Highlights • This summer, the top 20 programs among Hispanic households in the U.S. were all in Spanish. • Univision was the fifth-ranked U.S. network among all American households this summer. • It did even better in the 18-34 demo, in which it ranked second after Fox African-American Media Highlights • African American households in the U.S. watch more television in Primetime, Daytime and Late night on average than all other U.S homes across, all age groups. • In addition, African Americans are heavy users of Black-targeted programming delivered in cable, and in print. • African American media usage is enhanced when the right advertising creative, using culturally relevant themes, casting, and lifestyle situations is used to connect with the market. African-American Media Usage 11:23 Households 8:02 7:36 9:36 Adults 50+ 5:42 5:19 5:02 Adults 18-49 3:23 3:08 3:13 Teens 12-17 2:02 1:50 4:07 Children 2-11 3:20 3:11 0:00 2:24 All Other 4:48 Total U.S. 7:12 9:36 12:00 African American Sources: Nielsen Media Research – National People Meter Sample, September 1999--May 2000 Asian American Media Highlights • Only one broadcaster in Los Angeles delivers local news in Vietnamese, Mandarin Chinese and Korean. • There are no national networks in the Asian American market. • Only major DMA’s have a a handful of independent Asian American media outlets Reaching Multicultural Markets • Are you ready? – The back office – The front office – Marketing Product/Service Development • Strategy – New, adapted, acquired • Legal – Patents, other • • • • Design Production Distribution Marketing Case Study The H&R Block 2005 Tax Season • Staffing: Tax School • New Offices: Diversity hiring -- 5,000 • Marketing – General Market – Hispanic Market – African American – Asian American The H&R Block 2004 Tax Season • Getting Ready: – Corporate: National – Region: Local • Office Leaders: Grassroots • The Seminars The H&R Block 2004 Tax Season • The Campaign – Advertising – Grassroots – Collateral On the streets • Ambassadors • Support mobile bill boards • High traffic areas • Grassroots marketing • Integrated with other strategies Events • • • • • • On site presence Ambassadors Coupon Distribution Data Capture Branding In-culture & in language Collateral Merchandising New Office Openings General Market Sponsorships AFC Post Season Grammy Awards NFL Wildcard Playoffs Super Bowl Multicultural Sponsorships www.ethosege.com Multicultural Marketing For the 21st Century