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Building a Business Case for the Ethnic Markets:

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Title: Building a Business Case for the Ethnic Markets:


1
Building a Business Case for the Ethnic
Markets Servicing a Broadening Customer Base
2
Whats happening in the demographic U.S.
3
U.S. Population 295,292,828
  • Hispanic Population
  • 42,850,201 (14.51)
  • African-American Population
  • 38,123,935 (12.91)
  • Asian-American Population
  • 13,249,051 (4.5)

Source U.S. Bureau of the Census, August 2005
4
U.S. Population by Race
2005 Total White Black Asian Hispanic
Population by Race 295,292,828 236,619,412 38,123,935 13,249,051 42,850,201
2010 Total White Black Asian Hispanic
Population by Race 307,825,552 244,109,693 40,244,239 14,176,663 50,031,411
Percentage Change Total White Black Asian Hispanic
Population by Race 13 12 13 15 20
5
Households by Race
2005 Total White Black Asian Hispanic
Households by Race 112,077,900 92,775,274 13,369,000 3,801,935 11,130,453
2010 Total White Black Asian Hispanic
Households by Race 118,166,443 96,961,939 14,426,694 4,276,861 12,966,296
Percentage Change Total White Black Asian Hispanic
Households by Race 5.43 4.51 7.91 12.49 14.16
6
Median Income by Race
2005 US White Black Asian Hispanic
Median Income by Race 48,300 50,982 35,988 60,852 44,110
2010 US White Black Asian Hispanic
Median Income by Race 54,447 57,432 40,874 69,459 52,348
Percentage Change US White Black Asian Hispanic
Median Income by Race 12.73 12.65 13.58 14.14 18.68
7
Hispanic Demographics
8
Population by Race and Hispanic Origin
  • National Origin of Diversity
  • Mexican oldest, newest, nearest, most
    dispersed, increasing diversity
  • Puerto Rican dual nationality, citizenship,
    urban concentration
  • Central Americans refugees, nationality
    pockets, proximity to Mexicans
  • Cuban multiple waves, generational shifts
  • South American Peruvians, Colombians, etc.
  • Others - New Mexico, Colorado, Texas, Arizona,
    Dominican enclaves

Source Current Population Survey, 2005
9
Total U.S. Hispanic Population for Top Twenty
U.S. Markets
Market Total Population Hispanic of DMA
Los Angeles 17,519,792 7,810,446 45
New York 20,700,787 4,355,376 21
Miami- Ft. Lauderdale 4,243,305 1,900,353 45
Chicago 9,500,028 1,780,090 19
Houston 5,594,922 1,775,534 32
Dallas-Ft. Worth 6,481,681 1,517,284 23
San Francisco-Oakland-San Jose 6,772,728 1,459,648 22
San Antonio 2,198,348 1,207,240 55
Phoenix (Prescott) 4,538,285 1,191,460 26
Harlingen-Weslaco-Brownsville-Mc Allen 1,139,915 1,013,941 89
Fresno-Visalia 1,841,523 931,892 51
Sacramento-Stockton-Modesto 3,928,142 918,659 23
San Diego 3,002,406 915,687 30
El Paso (Las Cruces) 915,631 730,462 80
Denver 3,732,239 725,748 19
Albuquerque-Santa Fe 1,722,780 687,843 40
Washington, D.C. (Hagerstown) 6,154,393 579,959 9
Philadelphia 7,720,332 547,033 7
Atlanta 5,803,176 475,489 8
Orlando-Daytona Beach-Melbourne 3,313,629 475,066 14
Tampa-St. Petersburg (Sarasota) 4,037,324 471,267 12
Source U.S. Bureau of the Census, 2005 Series
10
Demographics
  • Younger population than US overall
  • 2/3 of Hispanic Population (19 million) are less
    than 35 years old.
  • 38.7 are under the age of 20
  • By 2010, nearly 18 million Hispanics will
  • be in the 25-44 age group.

11
Asian Demographics
12
Asian-American Demographics
  • U.S. Population 295,292,828
  • Asian-American Population 13,249,051
  • Asian-American Population as
  • a Percent of Total U.S.
  • Population
  • 4.5

Source U.S. Bureau of the Census, 2005
13
Population by Race and Asian Origin
U.S. Bureau of the Census, 2005
14
Asian-American Demographics
  • 52 of Asian households are owner-occupied
    (Census 2005)
  • Asian/ Pacific Islanders have the highest median
    home values of any group in the U.S.
  • Asian/ Pacific Islander median home value in the
    Western U.S. is 86 higher than the median value
    for all homes in the West.

Source U.S. Bureau of the Census, 2005
15
Asian-American Demographics
Asian households are the most likely of all
groups (including White households) to be in the
75K or above income range
Source U.S. Bureau of the Census, 2005
16
Total U.S. Asian Population for Top Twenty
U.S. Markets
Market Total Population Asian of DMA
Los Angeles 17,519,792 1,951,719 11.1
New York 20,700,787 1,815,998 8.8
San Francisco-Oakland-San Jose 6,772,728 1,569,599 23.2
Honolulu 1,291,401 554,523 42.9
Chicago 9,500,028 484,967 5.1
Washington, D.C. (Hagerstown) 6,154,393 461,202 7.5
Sacramento-Stockton-Modesto 3,928,142 378,886 9.6
Seattle-Tacoma 4,473,061 357,659 8.0
Houston 5,594,922 307,348 5.5
Philadelphia 7,720,332 299,946 3.9
Boston (Manchester) 6,186,618 296,270 4.8
San Diego 3,002,406 282,568 9.4
Dallas-Ft. Worth 6,481,681 275,661 4.3
Atlanta 5,803,176 196,906 3.4
Detroit 5,012,175 170,218 3.4
Minneapolis-St.Paul 4,300,475 161,064 3.7
Portland 2,954,987 124,919 4.2
Fresno-Visalia 1,841,523 108,019 5.9
Denver 3,732,239 106,345 2.8
Phoenix (Prescott) 4,538,285 101,613 2.2
Las Vegas 1,747,383 96,721 5.5
Source U.S. Bureau of the Census, 2005
17
African-American Demographics
18
African-American Demographics
  • U.S. Population 295,292,828
  • African-American Population 38,123,935
  • African-American Population as
  • a Percent of Total U.S.
  • Population
  • 12.91

Source U.S. Bureau of the Census, 2005
19
African-American Population for Top Twenty U.S.
Markets
Market Total Population Black of DMA
New York 20,700,787 3,986,496 19.3
Chicago 9,500,028 1,721,086 18.1
Atlanta 5,803,176 1,542,549 26.6
Philadelphia 7,720,332 1,452,845 18.8
Washington, D.C. (Hagerstown) 6,154,393 1,416,595 23.0
Los Angeles 17,519,792 1,363,723 7.8
Detroit 5,012,175 1,082,065 21.6
Miami-Ft. Lauderdale 4,243,305 1,000,807 23.6
Houston 5,594,922 910,885 16.3
Dallas-Ft. Worth 6,481,681 872,148 13.5
Memphis 1,787,068 764,892 42.8
Raleigh-Durham (Fayetteville) 2,579,435 751,037 29.1
Baltimore 2,841,558 744,354 26.2
Norfolk-Portsmouth-Newport News 1,923,333 645,475 33.6
New Orleans 1,795,837 616,793 34.3
Cleveland-Akron (Canton) 3,885,387 557,425 14.3
St. Louis 3,111,140 524,975 16.9
Charlotte 2,627,261 520,359 19.8
Orlando-Daytona Beach-Melbourne 3,313,629 473,811 14.3
San Francisco-Oakland-San Jose 6,772,728 469,057 6.9
Birmingham (Anniston And Tuscaloosa) 1,781,558 462,483 26.0
Source U.S. Bureau of the Census, 2005
20
Buying Power
21
Buying Power
Consumer-buying power in this segment will triple
what it was in 1990, indicating major economic
strides among Asians, African-Americans and
Hispanics, according to a the University of
Georgia Selig Center.
22
African-American Buying Power
African-Americans buying power will rise from
316.5 billion in 1990 to 723 billion in 2004,
and to 965 billion in 2009.
A 203 increase over 19 years
1990 2004 2009 316.5
723 965
23
Asian Buying Power
Asian buying power will rise from 117.6
billion in 1990 to 363 billion in 2004, and to
528 billion in 2009 .
A 347 increase over 19 years.
1990 2004 2009 117.6
363 528
24
Hispanic Buying Power
Hispanic buying power will rise from 223 billion
in 1990 to 686 billion in 2004, to 992 billion
in 2009.
A 347 increase over 19 years
1990 2004 2009 223
686 992
25
Emerging Opportunities
26
Emerging Opportunities
  • Children and young adults account for nearly
  • half of the EM population.
  • The next generation-
  • The children of immigrants
  • Are avid media consumers,
  • Comfortable with computers and
  • Connected to the Internet

27
E-merging Opportunities - Hispanics
Internet usage among Hispanics jumped 7.4 in
2004 after an 8 rise in 2003.
Source emarketer 2004
28
E-merging Opportunities - Hispanics
It is projected that 13.3 million Hispanics were
surfing the Internet in 2004, up from 12.4
million in 2003 and 8.7 million in 2000.
Source emarketer 2004
29
E-merging Opportunities - Asians
By comparison, the number of Asian Internet users
rose to 6.7 in 2004.
Source emarketer 2004
30
E-merging Opportunities African-American
African-American surfers increased by 5.7 in
2004.
31
E-merging Opportunities White
White Internet users increased by 4.2
32
5 Simple Rules to Reaching the Ethnic Markets
33
Rule No. 1 Integration is the key!
  • In the past, the process for reaching
    multicultural
  • markets was often limited to one dimensional
    efforts
  • such as the literal translations of general
    market
  • campaigns.
  • Today organizations are developing new products
  • designed specifically to meet the needs of this
    new
  • America. Companies are
  • Creating separate multicultural departments
  • Allocating marketing budgets by segment,
  • And most important, setting measurable goals for
    each segment.

Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
34
Culturally Diverse Companies
  • Implement an integrated year-round out reach
    campaign to the ethnic markets.
  • Provide high level customer service in multiple
    languages from end-to-end.
  • Become valuable corporate citizens in the ethnic
    communities.
  • Offer culturally relevant products and services
    at competitive prices.

Source Valle, F.J., Madel, J.M., (2003) How to
win the Hispanic Gold Rush
35
Rule No. 2 Do your research!
  • It may cost you a little upfront, but it is
    critical to
  • your success. Carefully study your market and
  • its relationship with your product or services
  • prior to launching a diversity initiative.
  • Understanding the cultural nuances of a market
  • before you start is important.

Dont assume everyone who speaks Spanish is
Mexican and everyone Asian is Chinese
Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
36
Rule No. 3 Cultural Connectivity!
  • Cultural Connectivity is the ability to reach a
    consumer
  • through their cultural context. A few cultural
    connectors to
  • consider include
  • Values
  • Community
  • Religion
  • Lifestyles
  • Ethnicity
  • Race
  • Sexual orientation
  • Country of origin
  • Degree of acculturation
  • Language

The goal is to connect in an intimate way with
both communities and individual simultaneously
through effective cultural context.
Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
37
Rule No. 3 Cultural Connectivity!
  • Do new ethnic customers receive a welcome or
    thank you written in their language at the time
    service is delivered?
  • Does your brokerage or firm conduct post-closing
    satisfaction surveys with ethnic customers?
  • Is diversity a strategic objective in your
    business or strategic plan?
  • Is there a senior level position with the proper
    authority to implement this initiative?

Source Valle, F.J., Madel, J.M., (2003) How to
win the Hispanic Gold Rush
38
Rule No. 4 Perception is Reality!
  • How communities see a company is how an
    individual
  • will see the company. This basic marketing
    concept is
  • critically important to the multiethnic
    landscape.
  • Many successful companies launch cause related PR
  • strategies that put the ethnic community and its
    needs
  • at the center of its communications.

Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
39
Freddie Mac
40
Fidelity National Title www.fidelityhouston.com
41
Fidelity National Title www.micasaenhouston.com
42
Fidelity National Title www.micasaenhouston.com
43
Rule No. 4 Perception is Reality!
  • The best way to conduct these efforts with
    credibility
  • is to partner with national or local ethnic
    organizations
  • (i.e. AREAA, NAHREP, and NAHREB)

Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
44
Rule No. 5 Partner with the experts!
  • Dont try and go it alone. When planning a
  • campaign, identify the appropriate resources
  • and consider hiring an agency.
  • Lastly, Identify a multilingual spokesperson
  • who can champion and be the voice for the
  • initiative.

Source 2004 Public Relations Tactics. Via
ProQuest Information and Learning Company
45
Building Diversity Into Your Business Model
46
Building This Emerged Market Into Your Business
Model
  • Through a referral arrangement
  • Recruiting an agent at a time
  • Keep tabs on agents on the other side of your
    transactions
  • Buying a company and merging it into your
    existing operation
  • Merging disparate cultures
  • Buying a company or a joint venture and leaving
    it as a stand alone
  • Bring more than money to the table

47
Hispanic Business Magazine October 2005
48
Diversity Checklist
  • The only way to know if a diversity
  • initiative is effective is to monitor and
    evaluate it.
  • What is being expended on the initiative?
  • What is the return?
  • How many more customers were gained?
  • What is the companys market share and
    penetration?
  • What elements of the campaign worked well and
    which did not?

Source Valle, F.J., Madel, J.M., (2003) How to
win the Hispanic Gold Rush
49
The Bottom Line
  • Your emerging market initiative success
  • will ultimately be determined by
  • Your effectiveness in developing and being able
    to offer culturally relevant products and
    services.
  • Your ability to brand products and implement
    culturally relevant marketing strategies.
  • Your skill in providing a high level of customer
    service in multiple languages.
  • Your aggressiveness in positioning and pricing
    quality products.

Source Valle, F.J., Madel, J.M., (2003) How to
win the Hispanic Gold Rush
50
Its about..
  • Building your economic as well as your social
    equity with Ethnic homebuyers!

51
Contact us at
Houston Office Austin
Office 14090 Southwest Freeway 1615
W. 6th Street Suite 300 Suite A Sugar Land,
TX 77478 Austin, TX 78703 Phone   
281-277-7784 Phone 512-450-0553 Fax
281-277-8167 Mailing Address 17424
W. Grand Parkway, 405 Sugar Land, TX
77479 www.thegonzalesgroup.com
52
Building a Business Case for the Ethnic
Markets Servicing a Broadening Customer Base
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