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Geoscape multicultural overview by Arthur Rockwell at Versailles Breakfast Club
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Access the New Mainstream
Capitalizing on a Culturally Diverse America
Accessing the New
Mainstream
Arthur Rockwell, Vice President, Sales
Geoscape
Friday, June 5, 2009
TheVersailles Breakfast Club
Agenda
2 © Copyright Geoscape, www.geoscape.com, 1 (888) 211-9353.
• The New Mainstream
• America‟s Secret Weapon
• Lifetime Profit Margin Contribution
• “The Long Tail”
• AMDS 2009 Demographic Data
• Who is Geoscape?
• Q&A
New American Reality
The face of America…is Multicultural!
Mainstream America
• A new reality and wake-up call
– What it means to be American has changed• Culturally and psychologically we are a diverse nation
• This will continue to evolve towards increasing diversity
• Many corporations still marginalize marketing to diverse cultural
segments
– Yet cultural segments represent fast growing opportunities
• Business is still looking for ways to better-serve and capitalize on this
trend
From 2000 to 2009…
• Nearly 13.4 million additional Hispanics– 38% growth during period
– 51% of the total population growth
• More than 4.1 million non-Hispanic blacks– 12% growth during period
– 16% of the total population growth
• Over 3.7 million more Non-Hispanic Asian-Pacific Islanders– 36% growth during period
– 14% of the total population growth
• 26 million more people overall– Nearly 21.3 million persons and 82% of growth from these 3 minority
segments
Source: Geoscape; American Marketscape DataStream: 2009 Series; Estimates as of July 1 2009.
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 5
HHs Median HH Income Mean HH Income Aggregate HH Income Aggregate Income
Total 118,293,887 $ 53,214 $ 66,338 $ 7,847,322,306,519 $ 8,080,469,566,868
White 97,617,470 $ 55,880 $ 68,468 $ 6,683,637,940,846 $ 6,845,430,654,775
Black 14,362,997 $ 35,843 $ 47,373 $ 680,412,381,876 $ 716,056,511,124
Asian & Pacific Islander 4,324,691 $ 69,654 $ 79,678 $ 344,581,718,498 $ 367,316,430,437
Hispanic 12,987,859 $ 44,073 $ 55,217 $ 717,155,262,027 $ 758,800,826,112
$69,654
$35,843
$55,880
$44,073
$53,214
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Asian Black White Hispanic Total
Household Income in 2009 by Culture Group
“Asians top the list in terms of annual household income, due in part to both the disproportionately large number in working age cohorts and to their higher levels of educational attainment.
Hispanics are about 17 percent below the overall median.”
Source: Geoscape, American Marketscape DataStream: 2009 Series.
Median Household Income
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 6
Hispanic Income by Ranges: 2009
Source: Geoscape, American Marketscape DataStream: 2009 Series.
“Over 37% of Hispanic households earn over $50,000 per year and 69% earn over $25,000 per year.”
less than $15,00016.0%
$15,000 to $24,99915.1%
$25,000 to $34,99913.9%$35,000 to $49,999
17.7%
$50,000 to $74,99918.3%
$75,000 to $99,9999.1%
$100,000 to $149,9996.5%
$150,000 or more3.3%
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 7
-
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
160,000,000,000
Food & Beverages
Shelter & Insurance
Utilities Housekeeping supplies
Furnishings And
Equipment
Apparel Transportation & Insurance
Health Care Entertainment Personal Care Products & Services
Personal Insurance &
Pensions
Hispanic Consumer Expenditures: 2009
“Hispanic spending is quite substantial in all major categories, especially due to their relative youth and larger average household size.”
Source: Geoscape, American Marketscape DataStream and Consumer Spending Dynamix™: 2009 Series.
Annual Expenditures Per Household in USD
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 8
America’s Secret Weapon
• Unlike other developed and developing countries, the U.S. has a history of embracing cultural diversity and this could lead to a strategic advantage in the world economy.
– “By 2030 Europe will have twice as many people over 65 as those under 15.”
– “European and Asian societies do not seem to be able to take in and assimilate people from strange and unfamiliar cultures in an era where their future rides on its ability to take in many more.”
– “By 2010 foreign students in the U.S. will get over 50% of Ph.D.’s awarded.”
© Copyright Geoscape, www.geoscape.com, 1 (888) 211-9353. 10
– “Half of all Silicon Valley start-ups have at least one founder who is
an immigrant or first generation American.”
– “Americans have almost always worried about their immigrants…but
these immigrants have gone on to become the backbone of the
American working class…America has been able to tap their energy,
manage their diversity, assimilate newcomers and move forward
economically. Ultimately, this is what sets [the U.S.] apart from other
historical powers…”
– Fareed Zakaria, The Post-American World
America’s Secret Weapon
Lifetime Profit Margin
Contribution
• LPMC is a metric that can help bring focus into a company‟s
decision to invest behind cultural diversity.
– Lifetime:
• Younger age at initial acquisition leads to potentially more years of relationship
– Profit Margin:
• Cost of acquisition could be lower as under-served consumers’ are acquired in a
less competitive environment, improving ROI and increasing margin
– Contribution:
• Compared to available alternatives, investment in cultural diversity could yield
higher returns
Aggregate Lifetime Spending per Household
0
0.5
1
1.5
2
2.5
3
3.5
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Mill
ions (2008 $
)
Calendar Year - Life Expectancy
Total Expenditures
NH White
Black
Asian
Hispanic
0
50
100
150
200
250
300
350
400
450
500
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Food at Home & Away
NH White
Black
Asian
Hispanic
0
50
100
150
200
250
300
350
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Food at Home
NH White
Black
Asian
Hispanic
0
10
20
30
40
50
60
70
80
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Household Furnishings& Equipment
NH White
Black
Asian
Hispanic
0
100
200
300
400
500
600
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Transportation
NH White
Black
Asian
Hispanic
0
5
10
15
20
25
30
35
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Personal Care Products & Services
NH White
Black
Asian
Hispanic
0
20
40
60
80
100
120
2008 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063
Cu
mla
tive
Ho
use
ho
ld S
pen
din
g
Tho
usand
s (
2008 $
)
Calendar Year - Life Expectancy
Apparel
NH White
Black
Asian
Hispanic
Aggregate spending over the lifespan of a Hispanic or
Asian household is usually greater than that of Non-
Hispanic White households
Median Age Life Expectancy
Non-Hispanic White 40 81
Hispanic 27 83
Asian 33 85
African American 30 77
Source: Geoscape modeling on various data inputs.
Ask yourself….
• How much of your current business is Hispanic? Asian? Black?
• How are you doing with unacculturated Latinos?
• Who might be your best customers?
• What is your true opportunity in culturally diverse segments?
The Long Tail
• The new mainstream is a myriad of niches– In the era of 3-network TV and bricks & mortar shopping, pop-culture meant marketers strived for “bit hits”
– In today’s era of diverse programming and over-abundant 24 / 7 product selection, the mass is made up of niches
• Marketers and business strategists have no choice but to
advance their micro-targeting capabilities to fully exploit the
opportunities
• “Many of our assumptions about popular taste are actually
artifacts of poor supply-and-demand matching—a market
response to inefficient distribution.”– Chris Anderson, The Long Tail
Long Tail Chart on Cultural
Diversity
Mass
Market
Pop
Culture Segmented Markets — Diverse Culture
Uni
t Sal
es
Product Types / Consumer Groups
“The proliferation of product variety and expansion of distribution channels increase
consumer choice and result in a greater complexity of offerings to satisfy a diversity of
needs and wants.:::
The outcome is that the sum of the mass-cultures rivals the size of the mass market.”
© Copyright Geoscape, www.geoscape.com, 1 (888) 211-9353.
Demographic Data and
TrendsThe Emergence of The New Mainstream
Source: Geoscape; American Marketscape DataStream: 2009 Series and the U.S. Census Bureau. * 2000-2009-2014 numbers for Asian and Black are for non-Hispanic; 2009 and 2014
Estimates as of July 1.
Population by Ethnicity/Race 1940-2014
Note: Population in the Commonwealth of Puerto Rico (3.97 million) is not included in Hispanic population figures.
“By 2014 the population in the three largest ethnic groups will be more than 110.4 million and Hispanics will represent nearly half of that population.”
Asian & PI*
Black*
Hispanic
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
1940 1950 1960 1970 1980 1990 2000 2010
Population 1940 1970 1980 1990 2000 2009 2014
Asian & PI* 254,918 980,337 3,500,439 6,994,034 10,410,556 14,133,634 15,694,304
Black* 12,865,518 22,580,289 26,495,025 29,284,605 33,707,230 37,861,980 39,967,766
Hispanic 1,858,024 9,589,216 14,608,673 21,898,546 35,238,481 48,628,991 54,780,913
Total 31,669,275 203,211,926 226,545,805 248,684,787 281,421,906 307,469,178 322,217,026
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 17
Other1
67.3%
Black1
12.3%
Asian & Pacific Islander1
4.6%
Hispanic15.8%
Commonwealth of Puerto Rico add'l 1.3%
U.S. Population: 2009 by Ethnic Group
Source: Geoscape, American Marketscape DataStream: 2009 Series.1 Non-Hispanic portion of race.
About one-third of America’s population is of either Asian, Black or Hispanic origin; these proportions vary dramatically at the state
and metropolitan area levels. Many companies include Puerto Rico within their U.S. marketing efforts, although it is not technically
part of the U.S.
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 18
Increasing Cultural Diversity
0%10%20%30%40%50%60%70%80%90%
100%
1940 1980 2020
Other Asian Black Hispanic
Source: US Census Bureau (1980 & 1990) and Geoscape (2020).
The “Non-Ethnic” market” is shrinking!
Hispanics may be any race, most are White (92.5%), Black (3.8%) or Native American (1.4%).
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 19
Growth 1990 to 2014 by Ethnicity/Race
The Non-Hispanic White population is a decreasing proportion of the U.S. population while Asians, Blacks and especially Hispanics are
forming a larger part of our nation.
Source: Geoscape, American Marketscape DataStream: 2009 Series.
75.8%
69.1%
65.2%63.8%
11.8% 12.0% 12.3% 12.4%
2.8% 3.7% 4.6% 4.9%
8.8%
12.5%
15.8%17.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
1990 2000 2009 2014
N-H White N-H Black N-H Asia & N-H PI Hispanic
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 20
Non-Hispanic Whites are the minority in an increasing
number of counties—316 in 2009—including some of the
largest like LA & Chicago.
Top 25 Counties
(Except Non-Hispanic White)
Los Angeles, CA
Cook, IL
Harris, TX
Miami-Dade, FL
Orange, CA
Dallas, TX
Kings, NY
Queens, NY
San Bernardino, CA
Riverside, CA
Bronx, NY
Bexar, TX
Santa Clara, CA
Broward, FL
Alameda, CA
Philadelphia, PA
New York, NY
Honolulu, HI
Prince George's, MD
Hidalgo, TX
El Paso, TX
Fresno, CA
Fulton, GA
Orange, FL
Shelby, TN
Majority-Minority Counties: 2009
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 21
Acculturation: Hispanicity™
“Acculturation is the process whereby immigrants acquire a new culture through language, customs, lifestyle, media usage and other practices—they retain elements of their home culture as well. For
Hispanics, Geoscape calls this characteristic Hispanicity.”
• HA1: Americanizado– English Dominant (nearly no Spanish)– Born in US; 3rd+ generation– Few Hispanic cultural practices
• HA2: Nueva Latina– English Preferred (some Spanish)– Born in U.S. 2nd generation– Some Hispanic cultural practices
often “retro-acculturate”
• HA3: Bi-cultural– Bi-Lingual (equal or nearly)– Immigrant as child or young adult– Many Hispanic cultural practices
• HA4: Hispano– Spanish Preferred (some English)– Immigrant as adult, in U.S. 10+ years– Pre-dominant Hispanic cultural practices
• HA5: Latinoamericana– Spanish Dominant (nearly no English)– Recent Immigrant as adult (less than 10 years ago)– Primarily Hispanic cultural practices– Identify with home country more so than U.S. Hispanic Source: Geoscape, American Marketscape DataStream: 2009 Series.
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 22
Hispanicity™
in 2009: Top 5 DMAs
Source: Geoscape, American Marketscape DataStream: 2009 Series.
“Recent immigrants have increased the portion of less acculturated HA5 Hispanics, while second and third generation Hispanics have increased the proportion of HA1 & HA2 Hispanics. Although Hispanic
population will increase in all segments, the future trend will have a steady proportion of HA5, increasing HA1-HA2, and decreasing HA3 and HA4.
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 23
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CHICAGO HOUSTON LOS ANGELES MIAMI-FT. LAUDERDALE
NEW YORK
15.3% 15.5% 15.7%
7.3%12.9%
26.8% 27.3% 26.9%
22.4%
27.0%
24.7% 25.9% 25.9%
22.7%
27.3%
17.9%18.2% 18.8%
18.2%
19.0%
18.2% 16.0% 15.6%
32.2%
16.4%
HA1: Americanizado HA2: Nueva Latina HA3: Bi-Cultural HA4: Hispano HA5: Latinoamericana
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Chicago Houston Los Angeles Miami-Ft. Lauderdale
New York
15.3% 15.3% 17.8%
6.2%
12.8%
24.6% 26.4%25.2%
27.5%
27.3%
14.7%15.2% 13.6%
15.8%
15.6%
22.2%19.9% 20.9%
22.6%
22.3%
23.3% 23.1% 22.5%27.9%
21.9%
English Dependent Bi-Lingual English Preferred Bi-Lingual English & Spanish Bi-Lingual Spanish Preferred Spanish Dependent
Hispanic Language use in 2009: Top DMAs
“Spanish language use varies among the top five DMAs, however Spanish is preferred by about half of Hispanics over Age 5 within each of these major metropolitan areas.”
Source: Geoscape, American Marketscape DataStream: 2009 Series.Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 24
Hispanic Origin Pop 2009 % of Hispanic
Cuban 1,233,596 30.4%
Puerto Rican 808,164 19.9%
Mexican 659,476 16.3%
Colombian 278,531 6.9%
Dominican 158,073 3.9%
Nicaraguan 141,304 3.5%
Honduran 104,054 2.6%
Peruvian 100,384 2.5%
Venezuelan 96,099 2.4%
Guatemalan 79,242 2.0%
Ecuadorian 60,524 1.5%
Salvadoran 55,358 1.4%
Argentinean 51,893 1.3%
Panamanian 24,051 0.6%
Costa Rican 19,527 0.5%
Chilean 19,516 0.5%
Other Hispanic 165,392 4.1%
Total 4,055,184 100%
Hispanics in Florida are Cuban, right?
Copyright© Geoscape®, www.geoscape.com, 1 (888) 211-9353. Page 25
Cubans and Puerto Ricans are the Hispanic majorities in only two Florida counties each
whereas Mexican’s are the majority in 31.
Who is Geoscape?
Market Intelligence :: Intelligent Marketing :: Business Advantage
Geoscape Background
• Geoscape International, Inc. founded in ‟95 by Cesar Melgoza
• Geoscape Europe BV founded in „02
• Merged interests with Latin Force and Goldman Sachs and in June
‟07
– Now a Goldman Sachs portfolio company: Urban Investment Group
• Headquarters in Miami
27
Geoscape provides…
• Strategic Analytics
• Consulting Services
• Databases
• Market Intelligence Systems
to corporations seeking growth by capitalizing on opportunities in
culturally-diverse consumer and business segments.
Business Advantage
Intelligent MarketingMarket Intelligence
TransFirmation™
Conclusion
• Inaction could lead to missed opportunities to produce
growth
• Inefficiency is too expensive
© Copyright Geoscape, www.geoscape.com, 1 (888) 211-9353. 29
The Versailles Breakfast Club
• Questions?
• Comments?
Muchas gracias!
!
Access the New Mainstream
Arthur R. Rockwell
Vice President, Sales
arockwell@geoscape.com
1 (888) 211-9353
www.geoscape.com
Capitalizing on a Culturally Diverse America
Accessing the New
Mainstream
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