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Multicultural Marketing requires more than insights to action, organizations need to understand the critical factors necessary to create winning platforms for servicing this underserved consumer population
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Mul$cultural)Marke$ng)
Why)should)I)care?)
Lots)to)consider)
Capture)the)power)of)Culture.!
!
What)we)do)• It’s!all!about!selling)more)stuff!to!more!people.!!!
– Shopper)Marke$ng!and!the!path!to!purchase!are!powering!breakthrough!marke8ng!
solu8ons!)
– Mul$cultural)consumers)fueling!US!growth!and!challenging!broadscale!marke$ng)and)
sales!strategies.!!!
• Marke8ng!is!not)just)about)new)TV)adver$sing.!!!
– Innova8on,!digital/mobile,!effec8ve!sponsorships,!inAstore!promo8onal!material!and!
beBer!sales!tools!are!cri8cal!to!a!comprehensive!go!to!market!solu8on!that!helps!
accelerate)sales.!!!
• Marke$ng)and)sales)need)to)be)linked)
– Comprehensive!solu8ons!need!to!align!strategy,!programs,!and!tracking!tools!across!the!
commercial!enterprise!
WHAT)WE)DO)…)
• Commercial!solu8ons!that!fit!with!the!level!of!organiza8onal!development!
– Corporate!Solu8ons!– Marke8ng!Solu8ons!
– Sales!Solu8ons!
‘La8nos!will!deliver!all!the!
popula8on!growth!over!
the!next!decade.!!Reaching
!them!with!culturally!
relevant!solu8ons!at!the!lo
cal!and!store!level!is!the!
answer!and!nobody!knows
!that!world!like!Steve!
Medina.’!!
!
Andy)England)
Execu$ve)Vice)President,)C
hief)Marke$ng)Officer)
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Marke$ng’s)Goal)
• Sell!– more!things!!
– to!more!people!
– more!oKen!!
– for!more!profit!
“If!I!had!an!hour!to!solve!a!problem!I'd!spend!
55!minutes!thinking!about!the!problem!and!
5!minutes!thinking!about!solu8ons.”!
A)smart)man)once)said…)
But…)
Mul$cultural)consumers)R)the)growth)majority)
What’s)underneath)
The)future)in)the)US)
0!
50!
100!
150!
200!
250!
2015!
2020!
2025!
2030!
2035!
2040!
2045!
2050!
2055!
2060!
Popula$on)in))M
illions)
White!
Black!
AIAN!
Asian!
HISPANIC!
Source:!US!Census!
We)are)youthfully)diverse)
Source:!US!Census!–!Ra8o!of!white/non!Hispanic!to!people!of!color!
Births)fuel)growth)
38.0%!
21.0%!
38.0%!
16.0%!
50.5%!
29.0%!
49.0%!
24.0%!
California! Colorado! Texas! US!
Hispanic!Pop! Hispanic!Birth!
Source:!Pew!Hispanic!
Minori$es)will)be)majority)by)2040)
35%!40%!
45%!49%!
54%!
65%!60%!
56%!51%!
46%!
2010! 2020! 2030! 2040! 2050!
Minority! White!(nonAHispanic)!
Source:!US!Census!
Mul$cultural)Buying)power)
1! 0.95!
0.599!
0.083!
1.2!
1!
0.713!
0.096!
1.6!
1.3!
0.962!
0.12!
Hispanic! Black! Asian! Na8ve!Am!
2010! 2013! 2018!
Source:!The!Mul8cultural!Economy!2013!–!Selig!Center!for!Economic!Growth!
In!Trillions!
Buying)power)accelera$on)
70%!
142%!
78%!
160%!
139%!
Total!
Hispanic!
Black!
Asian!
NatAm!
Percentage)growth)from)2000)to)2013)
Source:!The!Mul8cultural!Economy!2013!–!Selig!Center!for!Economic!Growth!
But,)buying)power)under)indexes)
17.0%!
13.1%!
5.4%!
1.2%!
9.6%!8.6%!
5.7%!
0.8%!
Hispanic! Black! Asian! NatAm!
Popula8on! Buying!Power!
Source:!The!Mul8cultural!Economy!2013!–!Selig!Center!for!Economic!Growth!
What)is)your)opportunity?)
Black!
13%!
AIAN!
1%!
Asian!
5%!
Hispanic!
18%!White!
63%!
2015)Popula$on)
Major!Factors!for!determining!opportunity!
• Total!market!value!and!share!
• CDI!vs!BDI!for!consumer!segments!!
Category)Development)
u8li8es!!
used!vehicles!!
alcohol!and!tobacco!!
health!care!!
entertainment!!
electronics!!
u8li8es!!
groceries!!
footwear!!
groceries!!
phone!services!!
apparel!and!footwear!!
used!vehicles!!
tobacco!!
health!care!!
entertainment!!
new!vehicles!!
personal!insurance!
Spend!More!!
Spend!Less!!
Black!Consumers!! Asian!Consumers!! Hispanic!Consumers!!
new!cars!!
alcohol!!
health!care!!
entertainment!!
pensions!!
food!&!clothing!
Housing!!
educa8on!!
personal!insurance!!
Black!Consumers!! Asian!Consumers!! Hispanic!Consumers!!
Source:!The!Mul8cultural!Economy!2013!–!Selig!Center!for!Economic!Growth!
Simple)Fair)Share)
Na8onal!Share!=!Fair!Share! 15!
Mul8cultural!Share!=!Base!share! 4!
Opportunity!share! 11!
Share!Pt!value! X!
Fair!Share!opportunity! 11X!
Auto)Insurance)Example)
Source!2009!Nat!Assoc!of!Insurance!Commissioners!&!Scarborough!2009!Release!
Ave!Ins!spend!($743!per!car*2.17!ave!per!Hispanic!HH)!
Average)Auto)
insurance)spend)
#)Hispanic)HH)that)
have)Auto)Insurance)
Revenue)Pool)
Hispanic)Share)Pt)
Current)Hispanic))
Market)Share)
Current)Total))
Market)Share)
Fair)Share)
Hispanic)Share)OPP)
Go)beyond)the)numbers)
WHAT)MATTERS?)
Speaks)Spanish?)
James!Roday!
(Rodriquez)!
Selena!!Gomez!
Jessica!!
Alba!
Mayor!!Julian!Castro!
Mark!!
Consuelos!
Cameron!!Diaz!
Emilio!!Estevez!!
Demi!Lovato!
Carlos!Pena!Jr!
Naya!!Rivera!
America!!
Ferrera!
Gwyneth!Paltrow!
Chris8na!
Aguilera!
Jack!Black!
Selena!!Will!Smith!
Jeb!
Bush!
Ben!Affleck!
Speaks)Spanish?)
James!Roday!
(Rodriquez)!
Selena!!Gomez!
Jessica!!
Alba!
Mayor!!Julian!Castro!
Mark!!
Consuelos!
Cameron!!Diaz!
Emilio!!Estevez!!
Demi!Lovato!
Carlos!Pena!Jr!
Naya!!Rivera!
America!!
Ferrera!
Chris8na!
Aguilera!
Selena!!
Speaks)Spanish?)
Gwyneth!Paltrow!
Jack!Black!
Will!Smith!
Jeb!
Bush!
Ben!Affleck!
CULTURE)MATTERS)
Cultural)Curtain)
Cultural)competency)
• Cultural!competence!comprises!four!components:!!
– Awareness!of!one's!own!cultural!worldview!– Astude!towards!cultural!differences!
– Knowledge!of!different!cultural!prac8ces!and!worldviews!– CrossAcultural!skills!
• Developing!cultural!competence!results!in!an!ability!to!understand,!communicate!with,!and!effec8vely!interact!with!people!across!cultures.!
Seek)first)to)understand…)
Some)defini$ons)
• Stereotype!–!Percep8on!• Race!–!Categoriza8on!• Culture!–!Beliefs,!values!&!norms!
• Ethnicity!–!Heritage!and!lineage!
Zulu)Coconut)
Chinese)wedding)
Seven)deadly)sins)
1. Ignorance!2. Arrogance!3. Denial!4. Ra8onalizing!5. Fear!6. Ethnocentrism!
7. Intolerance!
Wallet,!heart!&!head!
• Educa8on!• Reward!&!Opportunity!• Honest!&!Genuine!• Curious!&!conscien8ous!• Adventurous!• Respecuul!
Where)are)we)at?)
Mul$cultural)Progression)Green)House)
Germina8on!
• Commercial!valua8on!
• BoBom!up!or!top!down!interest!
and!ac8vity!
• Mul8cultural!s8ll!an!aKer!
thought!to!most!
• Develop!some!capabili8es!base!
on!internal!understanding!
• Ini8al!program!pilots!to!“try!
some!things”!
• Ren8ng!effort!manpower,!!
programming!or!execu8on!
• Investment!high,!ROI!difficult!to!
measure!
!
Growth!
• Leadership!and!broader!org!seeing!value!
• Resourcing!ring!fenced!• Programs!and!structures!to!
develop!exper8se!
• Brands!and!services!showing!growth!with!consumer!base!
• Tracking!and!monitoring!
systems!established!
• Considering!the!rent!vs.!buy!!• Investment!s8ll!high,!but!seeing!
stronger!posi8ve!ROI!changes!
!
Matura8on!
• Organiza8on!fully!engaged!• Funding!first!for!opportunity!• Centers!of!excellence!for!consumer,!channel!and!
execu8on!
• Brands!and!services!gaining!significant!growth!
• Own!cultural!future!vs.!rent!• Cultural!marke8ng!and!sales!
part!of!doing!business!
• ROI!on!growth!paying!out!posi8vely!
!
Denial!
• No!understanding!of!opportunity!
• No!skill!or!will!• No!spending!or!structure!
• Ra8onalized!excuses!• No!funding!• Already!gesng!
customers!
• No!8me!to!examine!
• No!one!else!doing!it!• No!investment!
!
Developmental!accelera8on!!
KEYS)TO)WINNING)
Senior)Team)Champions)
Key)ini$a$ve)
Allocate)Resources)
View)as)emerging)segments)
Clear)ROI)Metrics)
Add)wisdom)
Invest)in)insights)
Innova$on)
Walk)the)talk)
Long)term)view)
Corporate)Mul$cultural)Resources)
Brand)Stewards)
Corporate)Rela$ons)
Diversity)&)Inclusion)
What’s)in)it)for)you!)
Avoid!pain!&!maximize!gain!
Avoid)Pain)
• Out!of!date!capability!• Hit!ceiling!for!advancement!
• Work!in!declining!segment!
• Figh8ng!for!share!
Maximize)Gain)
• Expansive!capability!• Get!promoted!
• Work!in!a!growth!segment!
• Grow!by!gesng!fair!share!
FUTURE)MULTICULTURAL)TOPICS?)
MULTICULTURAL)MARKETING)
WHY)SHOULD)I)CARE?)
