COMMENT: Ethnic marketing - say it loud!
The rise of ethnic marketing was one of the hottest marketing trends of the 1990s. In fact, it was so quick that some companies have already been left behind. With expertise in the area developing rapidly, the best companies are already taking the next step: viewing ethnic advertising not a minority issue, but integral to overall marketing strategies.
PepsiCo's search for a new marketing partner exemplifies the rise of ethnic marketing: in 1999, US advertisers spent an estimated US$1.1 billion on advertising to ethnic minorities. While that was less than 1% of the US$215.2 billion total spend, it was an increase of 112% in just four years.
Corporate America's sudden pursuit of the ethnic dollar has been fueled by massive demographic, economic and cultural changes, spurred on by findings in the 2000 census.
The proportion of ethnic consumers is growing - today, everyone in California is a minority, with no group forming over 50% of the population. Ethnic consumers' spending is also on the rise - in 2001, Latino consumers had an estimated buying power of US$452 billion. Perhaps most profoundly, ethnic trends increasingly form the cultural cutting edge, especially in the all important youth market.
Food and beverage producers learned quickly that ethnic advertising means more than simply rewriting current campaigns in foreign languages. When Mars launched its Dulce de Leche flavour M&Ms in 2001, it backed the product with a US$5m advertising campaign aimed specifically at Latino customers.
As ethnic marketing evolves at a dizzying pace, however, the next step is already being taken. While more producers are developing campaigns for ethnic markets, the most insightful, like Pepsi, are tapping trends among minorities to fuel their mainstream marketing.
Through rap, hip hop and urban fashion, African Americans and Latinos are defining youth culture for a generation of American teenagers. At US$10 million, Pepsi's budget for its new partner is relatively modest - but it is money wisely spent. Producers that see ethnic advertising not as a minority issue but integral to their overall marketing strategies, will gain both market share and inspiration.
Related research: Datamonitor, "The American Ethnic Consumer in CPG 2002" (DMCM0095)
(c) 2001 Datamonitor. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.
In the battle of the giants, PepsiCo has stolen a march on Coca-Cola over the last year or so and its performance in the first half of the current fiscal year suggests it is still has the upper hand. ...
A recent report on the UK soft drinks market showed that growth in non-carbonates at the expense of traditional carbonated soft drinks is much less marked in the on-premise sector than in the take-hom...
A departing PepsiCo executive is to be handed a US$4.56m package spread over the next two years for his consultancy services....
The Pepsi Bottling Group has signed a letter of intent to acquire Pepsi-Cola Bottling Company of Charlotte (Pepsi Charlotte) for an undisclosed sum....
The Pepsi Bottling Group today reported second quarter net income of US$148m, or diluted earnings per share (EPS) of $0.59. The results were up on the same period last year as the company grew volumes...
Pepsi-Co. has been removed from a Syrian blacklist of companies which have dealings with Israel, according to a report in the official Syrian newspaper al-Thawra....
Pepsi has launched a new 50cl silver-coloured bottle for its Pepsi light soft drink as part of a major advertising campaign to roll out this summer in Spain....
PepsiCo's president and CFO, Indra Nooyi, has been forced to apologise for remarks she made whilst speaking to the 2005 graduating class of Columbia University's Business School in New York City last ...
- Focus - Edrington's FY Performance by Brand
- Pernod relies on Indian whiskey to crack Africa
- Hail Marie Brizard: But, For How Long?
- 5 reasons why Constellation's Meiomi buy works
- NPD: The Clear Soft Drink Trend is Back
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Diageo sells "non-core" Gleneagles
- Pernod Ricard allays Havana Club shortage fears
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- The IWSR Company Profile 2014 – Remy Cointreau
- Global Tequila insights - market forecasts, product innovation and consumer trends research