In the past, most of America was white and European. As people immigrated to this land (either on their own will or in chains as slaves), America grew to be “a great melting pot” of cultures. Ethnic groups were expected to assimilate into the “mainstream.”
Nobody was supposed to rock the boat.
I suppose that theory works great if other than their religion or maybe an accent, everyone looks pretty much the same. The problem is that by the mid-1800’s immigrants to this country were looking different than the white majority. Freed slaves were black. Laborers from the orient were from a variety of Asian cultures. Hispanics came from a tremendously diverse array of countries and cultures. And none of these groups wanted to melt into the American culture and lose their identity in the process.
By the time of the civil rights movement of the 1960’s, it was pretty clear that America was moving from “melting pot” to “multi-cultural society.” But by the time of the riots and protests about and for civil rights, much of the white population of America decided to ignore the situation, safe in the assumption that they would always be in the majority.
Well, that equation is about to change.
According to the US Census bureau, the US Hispanic population is growing at a rate that will make it the number two population group by 2010. By 2040, the US population will be so ethnically diverse there won’t be a majority race. Whites will be in the minority just like everyone else.
Economically speaking, minority households are catching up to white households as well. According to the US Small Business Association, African Americans, Hispanics and Asians currently represent about $600 billion in annual buying power. Minority-owned businesses are growing faster than the national average, as well. Sales dollars for minority businesses grew by 24% each year according to a study conducted by Conning & Company.
The market is growing. That much is clear. But why and how does a business engage in a campaign directly aimed at this market? Let’s start with “why”:
The growth of minority businesses and affluence in minority markets is appealing, yes, but businesses often raise concerns over the fragmented nature of the minority market and the many, many languages that pose a barrier to clear confusion and work towards understanding.
The fragmented nature of ethnic markets in the United States can actually work to a marketer’s advantage. In many cases, the specific market in question often has one or more media serving it. Although finding the media might be a bit of a challenge, working with the media to gain coverage (editorial) and to purchase space (advertising) should be relatively easy. Once you’re partnered with the media, you are in position to get the market’s attention. All you have to do is make sure your message is relevant.
Andrea Ogunkoya, a business writer and author of the book “Minority Marketing” adds emphasis to the idea of relevance:
“…marketing agencies have largely got no idea how to target this sector and have been getting it wrong for years. In order to understand this market, you have to be willing to invest in them. Not dusting off the crumbs from your marketing budget, but breaking bread with them.”
The good news is that media placements in media owned and targeting ethnic minorities has higher viewership/readership numbers inside their community. More than 70% of ethnic minorities polled recently, said they considered their community paper/media outlet to be their local news as opposed to the mainstream networks.
As you work towards establishing a clear idea of where the market sits and the unique obstacles it faces when it comes to forming a relationship with your brand, you’ll see opportunities to reach out and connect with this market. Here are some examples of what other companies have done to establish a connection into the ethnic market (courtesy of the SBA):
- Carnival Cruise Lines has dedicated an entire cruise ship called the Fiesta Marina to the Hispanic Market.
- J.C. Penney offers linens with bold African prints and cosmetics designed for women of color.
- General Mills became the first cereal company to introduce a product specifically for Hispanic consumers. It’s called Bunuelitos after a sweet Mexican pastry.
- Several insurance companies worked with their minority agents to develop products and services specifically for those markets.
And the list goes on. What are you going to do to get your brand on the list for next year?
Technorati Tags: Marketing, Advertising, B2B Marketing, Ethnic Advertising, Minority Marketing, Client Management, Leadership, Creative Thinking, Culture, Cultural Diversity
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