Ethnic Marketing

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Ethnic Marketing DiversityPartners in
Profitability
COMPANY
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WELCOME!
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Why Were Here?

• Understand Ethnic Marketing at Colgate
• Increase knowledge of Ethnic Consumers
• Understand the Similarities between Diversity and
  Ethnic Marketing
• Discuss how Diversity Ethnic Marketing Groups
  can work together

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Colgate-PalmoliveEthnic Marketing Group
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Colgate-Palmolive CompanyEthnic Marketing Group
Mission Statement
Develops/ Executes a strategic plan/vision that
leverages and builds upon Colgate-Palmolives
brand equity and leadership position with
African-Americans and Hispanics respectively,
while maximizing volume growth opportunities via
a well thought out, integrated Consumer, Trade,
Community, and Public Relations Plan.
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Ethnic Marketing Focus

• Recognized the need for multicultural marketing
  many years ago
• Have separate in-house Marketing groups for
  Hispanic and African American markets, but work
  together for an integrated Ethnic approach
• Deep understanding of consumers in these
  segments
• Cultural
• Demographics changes
• Shopper Insight
• Panel Date
• Tracking

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Ethnic Consumer Overview
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Why Address Ethnic Consumer Opportunities Five
Related Forces
Mainstream Media Coverage
Viable Business Opportunity
Cultural Impact
Health of the U.S. Economy
Critical Mass
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The Changing Face of America
Hispanic 2000 Census

• Hispanics in the US 12.5 of Total population
• - at parity with African Americans in 2000
• Growth of 58 in 10 years
• - fastest growing minority group
• 4x faster than the US total Growth Rate
• Surpass previous Census projections 5 years
  earlier

Source U.S. Census 2000
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The Changing Face of America
African-American 2000 Census

• 34.6 Million African-Americans (no racial mix),
  36.4 ( w/racial mix) in the U.S.
• AA total pop. growing, (13 w/mix of US pop.)
  5MM in 10 yr. (16 vs. 11 GM)
• 1 in 2 live in the South with increasing
  migration
• 5 states with largest populations are NY, CA, TX,
  FL, GA
• African-Americans are not a monolithic group,
  growing in diversity and mindsets
• Professionals/Buppies, Urban Youth, immigrant
  population (Afro-Caribbeans, Africans),
  mainstream

Source U.S. Census 2000
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Younger Population

• Hispanics
• Hispanic median age in 2000 is 9 years younger
  than general market26 vs. 35
• Hispanic birth rates have increased (while GM has
  declined)
• Today, 16 of all births are Hispanic
• By 2010, 1 in 4 babies born will be Hispanic
• African-Americans
• African Americans are younger than the General
  Market
• Median age of 30.4 vs. 37.0 for whites
• 1 in 3 are under 18 years of age

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Growing spending power

• Hispanics
• -Hispanic Buying Power of 452 billion in
  2000
• -Hispanic Median HH income has grown, 131
• African-Americans
• -Projected AA Buying power of 572 billion in
  2001
• -AA Median HH income of 27,910, highest ever,
  versus 42,504 GM. up 49.5 vs 1990

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70 of All U.S. Hispanics Reside in 6 States
California
Illinois
Florida
4.3
31.1
7.6
11.3
New York New Jersey
18.9
26.8
Texas
Other States
Source U.S. Census 2000
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54 of African-Americans Reside in South
Source U.S. Census 2000
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Market Synergy

• Hispanic AA shared Markets
• LA
• NY
• Miami
• Houston
• Chicago

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Economic Reciprocity

• Ethnic consumers check into background of
  companies and are more likely to buy from
  companies or stores with long histories of
  supporting community
• Deciding factor on where to shop is atmosphere
  and quality of products, customer service, safety
  of location and a workforce reflective of
  community
• More likely to buy if Ethnic consumers featured
  in ads and in-store promotional materials

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Key Categories Of Interest

• Food
• Music
• Fashion
• Hair Beauty
• Arts
• Sports
• Autos

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Ethnic Key Cultural Triggers

• Family
• Children
• Education
• Community/Giving Back
• Church
• Cultural Pride

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2002 Promotions

• MSS Teen Blitz
• LSS Essence Incredible Women Contest

• Mothers Day
• Fathers Day
• Colgate Power

• Colgate Womens Game
• CIAA Tournament
• VIBE Yardfest
• Urban Leagues Ebony Fashion Fair

• Account Specific Programs
• FC VIBE Ride
• Tom Joyner

• Starlight
• Foundation
• l

Continuity Program Bright Smiles Bright Futures
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Largest National Amateur Track Event
MEDIA TV, Radio,
Newspaper
Public Relations
27 Year Heritage
INTERNET Website Hits
Exciting Kids Carnival
Strong C-P Branding
Community Outreach
360º Marketing
In-store Activation/ On-site Sampling
coupons samples
BS/BF Screenings

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Sweepstakes Giveaway
Growing Finals Attendance (90,000,
30vs YAG)
Sampling Distributed on-campus/ arena
360º Marketing
MSS/ISS Game Contests ISS Laser Sky Show
Retail Support
In-Game Summaries
56 Years of HBCU Basketball History
TV/Radio/Newspaper
Corporate Philanthropy 250,000 College
Scholarship Donation
Jumbotron Branding
Public Relations Grassroots Campaign
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2002 New 360º Marketing Program
1 National Urban Radio Show, reaching 6.5
million African American listeners Daily
360 Marketing
Sampling/Brand Awareness
MEDIA Television, Print
Community Outreach, Philanthropy
Public Relations
Live Sky Shows
Radio Sponsorship
Product Integration/ Endorsement
Retail Support Acct. Radio tags
On-Air scholarship donations
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Fresh Confidence 360º Marketing VIBE RIDE TOUR

• MEDIA
• Magazines ,
• College Newspaper, Radio,
• Wrapped Vans

STREET MARKETING
INTERACTIVE Cyberlounge, Performing music
artists, DJ

• CONTESTS
• Get Fresh Smile,
• Radio Prize Packs

Community Outreach

• HBCUs in the
• South
• students

• INTERNET
• Links to FC and Vibe sites

RESEARCH Consumer research surveys
SAMPLING samples
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Speed Stick 360º Marketing Southern Region Teen
Blitz

• Power of Nature Hits the Road
• Mobile Sampling Van Visits
• M J Movie Theaters
• Shopping Malls
• Record Stores
• High Schools
• Black College Spring Break
• Concerts

• MEDIA
• Magazines
• Radio,

• Market Execution
• Target Markets
• Atlanta
• Memphis
• Houston
• Miami
• Daytona Beach
• Charlotte

SAMPLING Target Reach Teens per market
Fathers Day Colgate Power Sporting Events
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Diversity Ethnic Marketing Similarities

• Key Business Initiatives for Future Growth
  Profitability
• Success Dependent on Senior Leadership
  Sponsorship Middle Management Champions
• Implementation Dependent on Middle Management
  Prioritization
• Acceptance and Integration into Business
  Processes Often Hampered by Misconceptions of
  Exclusion vs Inclusion
• Integration Dependent on Continuous Communication
  Education

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Keys to Success

• Cross-functional Development of Strategies
  Objectives
• Integration into Key Business Plans Processes
• On Going Development of Invasive Champions

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Keys to Success

• Educate!
• Communicate!!
• Participate!!!
• Integrate!!!!
• Validate!!!!!

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Share of Mind Share of Heart Share of
Dollars!!!
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Thank you/Gracias!