Marketing Realities For The Browning Of America
by Lafayette Jones
In 1990, the U.S. Census Report
issued a wake-up call to marketers across the country. The census figures
told us that African Americans, Hispanics and Asians make up the fastest
growing consumer group in the country. In fact, in certain cities-- Washington,
DC, Los Angeles and Miami, for example--the minority now represents the
majority of the population.
This shift in demographics is called
the "Browning of America." But, the shift is not limited to increasing
population numbers; it is cultural.
Afrocentric fabrics and fashions
are being worn by all races and ethnic groups. Mexican food is one of the
most popular foods among Generation Xers. Popular music increasingly is
influenced by rap, gospel, rhythm and blues, and Tejano music. Even the
smallest cities have at least one Chinese restaurant--and some of them
have Vietnamese and Thai restaurants, too. Furthermore, the general
population is now seeking so-called "ethnic products."
The Browning of America has motivated
forward-thinking companies to seek the best and brightest to work in their
ethnic marketing, in their diversity departments, and in other areas. Companies
are offering scholarships and mentor programs to attract new talent in
colleges and universities, and they're hiring minority-owned firms that
specialize in reaching niche markets.
Our company, Segmented Marketing
Services Inc. (SMSi) is part of a group of marketers who grasped the magnitude
of this trend ---- long before the Census report documented it. Consequently,
we've built a successful business helping Fortune 100 companies reach these
consumers.
The company was founded in 1978 by
Sandra Miller Jones, a Dean's List MBA graduate in Marketing from Northwestern's
Kellogg School of Business and former marketing executive for The Quaker
Oats Company. While at Quaker, she realized that marketers were missing
important opportunities in the African-American consumer market.
She found a cost-effective way to
promote products to limited groups of people. Gift bags, filled
with samples and coupons for a variety of brands, were the solution.
I joined the company as a partner
in 1988. As a marketing executive for Hunt-Wesson, I've created successful
strategies for Orville Redenbacher Gourmet Popping Corn and Hunt's Manwich.
I've also worked at other corporate giants such as Lever Brothers, General
Foods, Pillsbury and Johnson Publishing; founded the American Health
& Beauty Aids Institute (AHBAI), the trade association of Black haircare
companies; and founded the Product Sampling Council of the Promotion
Marketing Association.
In 1990 we recruited another partner,
Rodney Lawrence, SMSi's executive vice president. Lawrence's prolific career
has included marketing positions at Sears, McDonalds, Leo Burnett Advertising,
Johnson Publishing and Soft Sheen Products.
SMSi provides marketers with unique
alternative venues that reach consumers who are important to urban retailers
but are not reached by conventional sampling techniques.
For example, according to 1990 U.S.
Census Bureau data, African Americans, Hispanics and Asians now account
for one-fourth of the U.S. population and will represent one-third after
the turn of the century. But, only five percent of African-American and
Hispanic consumers receive samples through traditional programs. This means
the sampling efforts of many manufacturers are failing to reach a significant
portion of the market; especially in inner cities of many markets where
these consumers represent the majority of the population.
SMSi has developed an unusual portfolio
of community-based sampling venues, including churches and beauty salons,
to reach ethnic consumers in urban markets with promotions that work. These
are high traffic areas consumers patronize because they feel a sense of
connectiveness.
In addition to our sampling programs,
we help clients like Procter & Gamble, Kraft, General Mills and
Coca-Cola execute special programs to reach ethnic consumers. We have developed
strategic alliances with companies who are interested in more effectively
reaching ethnic consumers. We're working with HEB a $6 billion, Texas-based
chain of more than 400 food and drug stores to develop programs
to reach its African-American and Latino consumers. We've signed an agreement
with AdvanceStar--a company that produces more than 70 trade magazines
for a number of industries including art, landscaping, hotel/motel and
beauty--to create a magazine for the ethnic health and beauty care, fashion
and music industries. And, for the past two years, we've partnered with
Media General to produce a trade magazine that builds a bridge between
urban retailers and manufacturers interested in reaching America's fastest
growing populations. Media General is an independent, publicly owned
communications company with more than 100 consumer newspapers in the Southeast.
Our clients are committed to doing
the right thing. That's why we've developed special programs to help them
deliver the right products and services to ethnic consumers.
There's no doubt about it. America
is turning brown. If you'll concentrate your studies on building a strong
business foundation and courses that focus on both traditional and non-traditional
marketing, you'll be poised to help these companies reach this lucrative
market.
Lafayette Jones is
the President and CEO of Segmented Marketing Services, Inc., in Winston-Salem,
NC. He is also the Publisher of Urban Call, a popular trade magazine for
urban retailers.
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