The Transformation
of America
Playing to Win in a
Multicultural Nation
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No More “Joe Consumer”
Hiya!
In the nation’s
10 largest cities
no racial or
ethnic category
describes a
majority of the
population.
Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009
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Concept of “Average American” Is Obsolete
The iconic
American family
– married
couple with
children – will
account for a
mere 22% of
households.
Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009
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3
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Diversity Is the Norm for Young Americans
Only 54% of
people under
age 18 are
non-Hispanic
whites
Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009
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Definition of “Mainstream” Has Changed
I have a
feeling we’re
not in Kansas
anymore!
5
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TRANSFORMED
NATION
TRANSFORMATION
6
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A Closer Look at Multicultural America
7
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Top
The Food We Eat
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Fashion
The Clothes We Wear
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Top
The Music We Listen To
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Top
The Movies We Love
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Top
The TV Shows We Watch
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Top
The Athletes We Cheer
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Top
The News We Trust
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Top
The Neighbors We Live Alongside
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Top
The Leaders We Elect
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Change
We Can
Believe In
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Change
We Must
Believe In
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Growth
You Can
Count On
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Hispanics Are Largest & Fastest-Growing Segment
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Hispanics Are Leading Multicultural Growth
+40%
+35%
% Population Growth
2000–2010
+10%
+3%
Hispanic
Asian
African
American
Non-Hispanic
White
Source: U.S. Census Bureau Interim Projections August 2008. Asian American includes Asian, Hawaiian, Pacific Islanders. Other includes Native American, Aleut,
Eskimo, 2 or more races or some other race.
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Your Growth Engine
Hispanic Share of Total U.S.
Population Growth 2009-2015
Hispanic
Non-Hispanic
Source: U.S. Census Bureau National Population projections August 2008
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Hispanic Consumers Are Essential for Success
1 of 5
1 of 5
1 of 4
Moms
Young Adults
Births
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Can’t Win In The U.S. Without Hispanics
WithoutYou
Hispanics,
the Math Doesn’t Work
Hispanic Share of Adult 18–34 Population
SF
31%
LA
55%
CHI
28%
DEN
27%
PHX
38%
NY
27%
DAL
36%
HOU
43%
MIA
51%
Source: Nielsen Universe Estimates, 2010, A18-34
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A Country Within a Country
2009 Population (in millions)
Source: U.S. Census Bureau Interim Projections Released August 2008 (U.S. Hispanics based on 2009 population estimates).; U.S. Census Bureau International Data Base Division (population estimates by
country based on 2009 estimates and 2050 population projections)
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An Economy Within an Economy
2008 HH Consumption
Expenditures ($ in billions)
Source: 1) Global Insight – 2007 Hispanic Market Monitor based on 2008 consumer spending. 2)United Nations, National Accounts 2008 Country Profiles.
3) U.S. Census Bureau Current Population Survey 2008.
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A Growth Engine Here at Home
Russia
U.S.
Hispanics
China
India
Brazil
B
I C
+H
BR- R
IC
H=
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Your Inner Voice
Is this really
happening to
Why did I take me?
French?
I don’t have
enough
resources
I guess I
can’t put this
off any
longer
Aren’t all
Hispanics
assimilating?
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My budget is
already
stretched
too thin
Where
do I even
start?
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TRANQUILOS
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No
MoreApproaches
“Joe Consumer”
Three
HEAD IN THE SAND
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CHECK THE BOX
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No
More
“JoeWater,
Consumer”
Toe
in the
But…
…still a separate,
below-the-line,
LIFO,
nice-to-have
niche,
afterthought
“project” that
you give to the
Hispanic intern to
work on after
5:00PM!
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No
MoreApproaches
“Joe Consumer”
Three
HEAD IN THE SAND
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CHECK THE BOX
TOTAL MARKET
PLANNING
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Key Principles For Success: Total Market Planning
1
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Make It a Strategic Business Imperative
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It’s Time to Jump the Line
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Integrate Hispanic At Every Stage of Business Planning
What
About
Hispanic?
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What
About
Hispanic?
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Key Principles For Success: Total Market Planning
1
Make It a Strategic Business Imperative
2
Identify Right-To-Win Brands and Best
Approach To Go To Market
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Defining Your Hispanic Brand Strategy
B
A
HIGH CDI
Drive Brand Awareness
Increase Loyalty
• Generate trial of product to
boost position within
category
• Fuel frequency of brand usage
• Maintain/strengthen
leadership position within
category
HIGH BDI
“First Mover Advantage”
Grow Category
• Opportunity to break into
Hispanic market ahead of
category
• Expand category awareness
among Hispanics to generate
further sales growth
D
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C
Confidential and Proprietary
Key Principles For Success: Total Market Planning
1
Make It a Strategic Business Imperative
2
Identify Right-To-Win Brands and Best
Approach To Go To Market
3
Ensure Focus & Consistency Over Time
4
Concurrent Launch of New Initiatives
5
Engage Consumer At All Touchpoints
6
Drive Overall Relevance In Your Communication
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Acculturation
“Salad Bowl”
Hispanics Are Acculturating Not Assimilating
Assimilation
“Melting Pot”
TIME IN THE U.S.
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Spanish Is Here to Stay
Source: Global Insight, 2009 Hispanic Market Monitor (language usage based on population 5+)
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Spanish Is The Language Of The Heart
Culture
Spanish
Spanish
Connects
Content
Connects
Country
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Community
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Spanish-Language Content Increasingly Popular
Top TV Shows Among Hispanic Adults 18–49
Among BILINGUAL
Hispanic Adults 18–49
1993-94 Season
2008-09 Season
2008-09 Season
37
49
46
Top 50
Top 50
Top 50
in
in
in
of
of
of
Spanish Spanish Spanish
Source: The Nielsen Company, NPM-H. All Ad-Supported broadcast & cable networks. All programming excluding breakouts and programs under 30 Total Day M-Sun 7a2a. 2008-2009 Season (09/22/08-09/20/09) and 1993-1994 Season (09/20/93-09/18/94). Live+SD. *Bilingual includes Demo Lang Spoken = Mostly Spanish, Spanish English
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Spanish Connects With Consumers
July 2009: Target
Now You’re
Speaking My
Language
“The bilingual
consumer’s
appreciation for inlanguage experiences
results in a more
favorable impression of
those commercials
which deliver them.”
Source: http://en-us.nielsen.com/main/insights/consumer_insight/July_2009/now_youre_speaking
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Spanish Extends an Invitation
Source: MadLogic Qualitative Consumer Research 1Q, 2003
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Spanish Creates Motivation
Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006
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Spanish Demonstrates Respect
Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006
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Spanish Establishes Trust
Source: MadLogic Qualitative Consumer Research 1Q, 2003
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Marketing in Spanish Helps Grow Businesses
Automotive
Movies
Packaged
Goods
Restaurants
Retail
Telecom
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No
More “Joe
Leading
theConsumer”
Way
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It’s Not Just the Marketers With the Largest Budgets
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No More “Joe Consumer”
Leading With Multicultural
Ethnic Insights form Foundation
of McDonald’s Marketing
By Emily Bryson York
November 6, 2009
Neil Golden
CMO, McDonald’s USA
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Leveraging Hispanic for Growth
“The Hispanic
market today is a
huge opportunity. I
would challenge you
to find another
dollar opportunity
that’s as big and as
promising.”
Mark Addicks
CMO, General Mills, Inc.
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Benchmarking Success
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Demography Is Our Destiny
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Can I afford to
invest money and
resources in the
Hispanic market?
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Can I afford
NOT to?
Could I be
doing more?
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Sí Se Puede
geleta@univision.net
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