Uncorking the $1.6 trillion multicultural opportunity: marketing to African-, Asian- and Hispanic-Americans

Cheers, April, 2004

African-Americans, Asian-Americans and Hispanic-Americans account for 1/3 of the US population and have buying power of $1.6 trillion, so learning about their food, beverage and lifestyle preferences is important, said three speakers from the Bravo Group, Kang and Lee and Mosaica, all part of worldwide marketing, pr and advertising firm Young and Rubicam.

Marketers Larry Moskowitz, Jose Arandia and Fernando Fernandez said that 24% of all US buying power comes from these growing groups. Moskowitz pointed out how changes in host state California may set the stage for a national change. In 1970, non-Hispanic whites accounted for 77.3% of the market; by 2010, the amount will sink to 44.8%.

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Unlike past groups, today's minorities aren't interested in assimilation, the marketers said, as much as acculturation, meaning that they retain aspects of their culture while adding aspects of average American culture.

HISPANICS AT THE TABLE

Hispanic culture, the group said, tends to be inclusive and hospitable. Socializing with family and friends is very important. "We don't eat or drink alone," said Arandia. Hispanics are more likely to have a "live for today" approach to life, realistic for people who have sacrificed to come to the U.S where they aspire to better lives. In general, they tend to drink in groups, are image conscious and drink later in the evening, after nine pm. Sunday is their key party day. Pride in their culture AND a desire to be part of the mainstream are both important.

Twenty three states have experienced a recent increase of 100% in their Hispanic population, and soon, 1 in 5 restaurant customers will be Hispanic.

But tastes differ depending on country of origin. Mexico is an interracial culture, reflecting Indian and Spanish influences, while what many Americans consider Mexican food is really Tex-Mex and not a favorite of recently arrived Mexicans. Caribbean and South American tastes are different, they said, and recognizing the differences is important when marketing to these various groups.

BLACK POWER

Among African-Americans, the marketers reported that key attitudes include a preference to buy from manufacturers who support their community, brand-consciousness and an inclination to purchases smaller units but at greater frequency. Home, family, church and education are important parts of life.

African Americans are style-adapters and setters, and frequently the first group to try new products, especially those that reflect their culture. They like to see African Americans in advertisements that show well-known African Americans.

African-Americans tend to drink earlier in the evening, right after work, the marketers said. Cognac and cordials are the preferred spirits, and Thursday night the big night out. Spirit brands have benefited from association with Rap and Hip-Hop culture.

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THE EAST IS WEST

Asians today make up 4.2% of the US population. In the US, the majority of Asians are either Chinese, Filipino, Asian Indian, Vietnamese or Korean. Asian consumers have the highest average level of income, home ownership, and education among ethnic groups.

Asians have strong work ethic and sense of family, and tend to be savers and long-term planners. Brands are important when they reflect signs of upward mobility. Entertaining is important in showing success, and word of mouth is important. Asian-Americans seek affirmation that their decisions are correct. "If an Asian guy tells another Asian guy that he went to a restaurant to celebrate, the worst thing that could happen to him would be if the guy he told says, "Where is that?" said Moskowitz.

Asian-Americans find dining out integral to their personal and business lives. They're also extremely loyal to companies that take time to "invite me to American experience."

Asian-Americans consume 90% of their alcohol on-premise, the marketers said. Beer, cognac and other dark spirits are popular, as is bottle service in bars and clubs.

RELATED ARTICLE: TEN IDEAS FOR MULTI-CULTURAL MARKETING

While non-Hispanic whites spend more on food and beverages away from home than minority groups, those groups are more likely than whites to be restaurant patrons on any given day and are more likely to explore a larger variety of restaurant experiences. These markets are available to the average restaurant. Here are some tips from the Cheers Beverage Conference presentation.

10. Add appropriate ethnic ambiance to your place through bar design, music mix, snack foods (pork rinds, wasabi peas, banana chips), and beverages. Learn to say "Hello and thank you" in neighborhood ethnic language.

9. Mini happy hours at times preferable for the ethnic group in the neighborhood.

8. Use appropriate glassware that makes customers feel they're being respected, like chilled Pilsner glasses for beer, stemware for Margaritas, quality brandy glassware.

7. Drink selection. Include Mojitos, sake, country-of-origin beer, fruit-infused spirits, and exotic drinks and juices.