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Demographic Changes Prompt a Renewed Focus on Marketing Strategies

America's demographic profile is undergoing major changes. By 2050, more than half of the U.S. population will be non-white (African-American, Asian, Hispanic). This dynamic growth represents not only significant cultural shifts, but also one of the more remarkable marketing opportunities in history. By that same 2050 milestone, the economic opportunity for brands in the multicultural CPG space is projected to exceed $500 billion.

Being able to keep pace with these increasingly diverse and demanding segments will require marketers to have a detailed view of what ethnic households buy as well as how they consume various categories of media. When compared against the general population, minority households tend to over-index on some key shopping and media metrics.

Topline Multicultural Buying Insights

When compared to the general population, on average...

Hispanic Shoppers
* Tend to spend more on categories for babies and children -- (Hispanic households represent 11.8% of CPG total spending, but 16.6% of disposable diaper sales.)
* Tend to spend more in traditional mass merchandise and warehouse clubs
* Tend to spend more on food consumed at home

African American Shoppers
* Tend to spend more on health and beauty products, like fragrance (African Americans represent 11.0% of CPG total spending, but 20.3% of dollars spent in beauty supply stores.)
* Tend to spend more in drug and dollar stores
* Tend to spend more on ingredients used to cook from scratch
* Tend to buy fewer items on deals or with coupons
* Tend to spend more on food consumed at home

Asian American Shoppers
* Tend to spend more in club stores (Asian Americans represent 3.0% of CPG total spending, but 5.5% of dollars spent in warehouse clubs.)
* Tend to spend more on categories for babies and children
* Are more likely to eat outside of the home

Topline Multicultural Media Insights

Hispanic Media Consumers
* Strong following of Telenovelas
* On average, watch more broadcast and satellite TV
* Display higher usage of mobile Internet

African American Media Consumers
* Have the highest TV usage of any demographic at nearly 80 hours a week per household
* Have a higher percentage of multi-set households
* Display higher usage of mobile Internet

Asian American Media Consumers
* More likely to have newer technology (DVD, HD, Digital Cable)
* Tend to watch less TV

While each group has many layers of cultural, economic and social diversity within, these broader trends are worth noting, and planning for, if marketers are to meet the needs of their fastest growing consumer base.

(Source: Nielsen Wire, 03/10/10)

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