Table of Contents
Introduction
The three ethnic communities namely the African-Americans, the Asian Americans and Hispanic Americans form the three largest minority groups in the US. The three ethnic groups have a significant economic contribution to the economy, as well as a major impact on the business performance, based on their preferences and brand loyalty. Therefore, understanding these minority groups and the strategies that can be applied to target their niche markets is very important for businesses in the US.
Part I
African American
Total numbers in the U.S. – 43,000,691
Information (source) – http://blackdemographics.com/population/
Percent of the total U. S. population – or 13.3%
Information (source) – http://blackdemographics.com/population/
Rate of growth – 1.3 percent
Information (source) – https://www.census.gov/newsroom/facts-for-features/2017/cb17-ff01.html
Average household size – 2.66
Information (source) – https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
Average age – 31.4 years
Information (source) – http://www.targetmarketingmag.com/article/targeting-14-of-the-country-this-month-african-american-buyers/
% with college degrees – 20.2%
Information (source) – https://www.census.gov/newsroom/facts-for-features/2017/cb17-ff01.html
Average or median income levels – $35,255
Information (source) – http://www.targetmarketingmag.com/article/targeting-14-of-the-country-this-month-african-american-buyers/
Geographic location(s) – metro, states, etc. -55% South, 18% Northeast, 17% Midwest, 10% West
Information (source)- http://blackdemographics.com/population/
Brands that have higher than average purchase for each group – Lexus, General Motors, Google, Fidelity, Slim Fast, UPS, Tide, Pampers
Information (source) – http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm
Identify specific products which have above average usage for each group – Lexus cars, Microsoft Office Suite (Word, Excel, etc.), Always, Nike shoes, apparels and clothes, Microsoft Windows
Information (source) – http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm
Best media to use to target each group – Social Networking Sites (such as Facebook/My Space), YouTube, Twitter, Netflix, Hulu
Information (source) – http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm
Asian American
Total numbers in the U.S. – 20.5 million
Information (source) – http://www.apacc.net/asian-pacific-american-stats-and-facts
Percent of the total U. S. population -6%
Information (source) – http://www.apacc.net/asian-pacific-american-stats-and-facts
Rate of growth – 3.4%
Information (source) – https://www.dallasnews.com/business/economy/2016/09/08/latino-population-growth-slips-behind-asian-americans-study-says
Average household size- 3.51
Information (source) – http://goldsea.com/AAD/households.html
Average age – 35.4
Information (source) – https://www.census.gov/newsroom/releases/archives/facts_for_features_special_editions/cb12-ff09.html
% with college degrees – 50%
Information (source) – https://www.census.gov/newsroom/releases/archives/facts_for_features_special_editions/cb12-ff09.html
Average or median income levels – $72,472
Information (source) – https://blogs.voanews.com/all-about-america/2015/05/08/this-us-ethnic-group-makes-the-most-money/
Geographic location(s) – metro, states, etc. –Soth-33%, NorthEast-26%, Midwest-29%, and West-21%
Information (source) – http://www.apacc.net/asian-pacific-american-stats-and-facts
Brands that have higher than average purchase for each group – Costco, Audi, Chanel, Best Buy, outhwest Airlines, and Chase
Information (source) – https://asamnews.com/2013/08/28/media-post-which-brands-attract-loyalty-from-asian-americans/
Identify specific products which have above average usage for each group- fresh produce, nuts, dried fruit, pasta, yogurt, soup and juice and drinks, oral hygiene and skin care products
Information (source) – http://www.nielsen.com/us/en/insights/news/2011/dissecting-diversity-understanding-the-ethnic-consumer.html
Best media to use to target each group- The internet
Information (source)- http://joinville.se/ethnic-consumer-behavior-multicultural-marketing-asian-american/
Hispanic American
Total numbers in the U.S. – 57.5 million
Information (source) – https://www.census.gov/newsroom/facts-for-features/2017/hispanic-heritage.html
Percent of the total U. S. population – 17.8%
Information (source) – https://www.census.gov/newsroom/facts-for-features/2017/hispanic-heritage.html
Rate of growth – 2.2%
Information (source) – https://www.census.gov/newsroom/facts-for-features/2016/cb16-ff16.html
Average household size – 3.87
Information (source) – https://www.pop.org/hispanic-family-size-in-usa-shrinking/
Average age – 27 years
Information (source) – http://www.pewresearch.org/fact-tank/2012/07/02/median-age-for-hispanics-is-lower-than-median-age-for-total-u-s-population/
% with college degrees – 14.8%
Information (source) – https://www.census.gov/newsroom/facts-for-features/2016/cb16-ff16.html
Average or median income levels – $45000
Information (source) – https://www.financialsamurai.com/average-income-hispanic-americans/
Geographic location(s) – metro, states, etc. – California, Florida and Texas, Los Angeles County
Information (source) – https://www.census.gov/newsroom/facts-for-features/2016/cb16-ff16.html
Brands that have higher than average purchase for each group – CNET, McDonald’s, AT&T, Toyota, DISH and Wal-Mart.
Information (source)
Identify specific products which have above average usage for each group – dried vegetables, grains, hair care products, baby care products and baby food, women’s fragrances, family planning and photographic supplies.
Information (source) – https://www.marketingcharts.com/industries/retail-and-e-commerce-21840
Best media to use to target each group – cable TV, Broadcast TV magazines and Newspaper advertisements, mobile-friendly ads and social media
Information (source) – https://www.forbes.com/sites/prospernow/2013/06/28/seeking-to-reach-hispanic-shoppers-traditional-media-influences-this-consumer-groups-purchase-decisions/#1ba9f66432d2
Part 2 – Analysis of Business Potential for Each Group
For each “ethnic” group write a minimum of 2 paragraphs analyzing the business potential using the information found in your research for Part 1 and additional research necessary to complete your analysis.
African American
Comments/rationale narrative
The business potential for the African-American ethnic group lies in its demographic trends, education level, growing income capabilities, the power of the social media and brand loyalty. The African American population is at its prime, with the average age being 41.4 years, an indication that the ethnic group has a relatively higher rate of young generation than the average American population whose average age is 36.7 years. Therefore, brands can tap into the young and millennial generation of the African American ethnic group to increase sales, especially in brand commodities such as cars, i-Pod, iPhone, clothes and apparels (Marketwired.com, 2012).
Additionally, considering that the average African American income is now high at $35,255 and has a combined purchasing power of $1.2 trillion, the purchasing power for this group is huge (Boschma , 2016).The education levels continue to increase for this ethnic group, while the use of technology, social media and cable TV is the highest among the minority groups in the US, thus offering a better potential for advertising and capturing the African-American market through avenues such as Facebook, YouTube, Twitter, Netflix, Hulu and My Space (Marketwired.com, 2012).
Asian American
Comments/rationale narrative
The Asian American constitute one of the ethnic group with both average and household incomes that surpass the average US national average by far, with the household income for some 54% Asian American households surpassing the $100,000 mark annually (Newswire, 2013). Therefore, targeting the Asian American ethnic group requires developing sophisticated branding and premium quality products, which highly attract this ethnic group owing to its income class status.
Additionally, the Asian American is highly tech savvy, with 80% of the Asian American household using the internet, constituting the highest among any of the US ethnic groups, while spending an average of 80 hours on the internet per month (Joinville.se, 2017). Therefore, internet advertising is one of the most effective avenues of targeting the Asian American consumers. Further, the Asian American ethnic group is much attracted to branded commodities as opposed to the generic ones, while also being more attracted to well known brands that are advertised in Asia (Newswire, 2013). Therefore, targeting the Asian American will also require ensuring promoting the brands well known in the Asia pacific region.
Hispanic American
Comments/rationale narrative
The Hispanic Americans ethnic group has registered the highest population growth rate over the years, with an average household size of 3.87 compared to the US national average household size of 3.19, offering a better opportunity for advertising and marketing home use products (Llopis, 2012). The use of the Hispanic language in advertisement is also essential, because a large population of the Hispanic Americans speaks Spanish only (Bishop, 2014).
The Hispanic Americans ethnic group is also better targeted through using the traditional adverting avenues. Therefore it is important to use media such as the cable TV and Broadcast TV as well as magazines and Newspaper advertisements, while also ensuring to use mobile and social media advertising, especially to target the Hispanic Americans millennial (Llopis, 2012).
- Bishop, E. (October 7, 2014). 6 Brands That Succeed At Understanding Hispanic Marketing. Business2Community.com. Retrieved from: https://www.business2community.com/marketing/6-brands-succeed-understanding-hispanic-marketing-01030311
- Boschma J. (Feb 2, 2016). Black Consumers Have ‘Unprecedented Impact’ in 2015. The Atlantic. Retrieved from: https://www.theatlantic.com/politics/archive/2016/02/black-consumers-have-unprecedented-impact-in-2015/433725/
- Joinville.se. (2017). Ethnic Consumer Behavior and Multicultural Marketing Study: Asian American. Retrieved from: http://joinville.se/ethnic-consumer-behavior-multicultural-marketing-asian-american/
- Llopis, G. (May 14, 2012). Don’t Sell to Me! Hispanics Buy Brands that Empower Their Cultural Relevancy. Forbes. Retrieved from: https://www.forbes.com/sites/glennllopis/2012/05/14/dont-sell-to-me-hispanics-buy-brands-that-empower-their-cultural-relevancy/#70903132661c
- Marketwired.com. (August 15, 2012). African-Americans Show More ‘Love’ to Brands Than Caucasians. Retrieved from: http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm
- Newswire. (March 12, 2013). Significant, Sophisticated And Savvy: The Profile of the Asian American Shopper. Retrieved from: http://www.nielsen.com/us/en/insights/news/2013/significant-sophisticated-and-savvy-the-profile-of-the-asian-american-shopper.html