Article originally published on LinkedIn
During times like this — when business slows down for unexpected reasons like the Coronavirus, financial uncertainty, or where it is no longer business as usual, I encourage my clients and business leaders to view it as an opportunity. This is a unique pause that can enable us to review our strategies, put new growth plans in pace, learn more about the communities we serve so we can get ready for a strong comeback. Now is the time to revisit and review consumer market initiatives that you have put on hold because you were too busy or content with the way your business was before Covid-19 or when you didn’t have enough support from your boss, shareholders, or investors to move forward with your vision to strengthen the company.
According to the latest Population Reference Bureau report “America’s changing population. What to expect in the 2020 census”, the number of people ages 65 and older in the United States has increased steadily during the past century. The growth of this age group is unprecedented in U.S. history and has created important challenges and implications for policymakers. Recent declines in fertility and immigration have slowed growth in the share of children in population and accelerated population aging. One of the main concerns is whether the U.S. workforce will be large enough to support future spending on Social Security and Medicare moving forward.
Even though mainstream is getting older, the good news is that in the past few years, the U.S. has been growing more ethnically diverse. This is not due to illegal immigration, as some people might think. It is due to domestic growth of minority groups and interracial marriages.
According to the report, the 2020 Census will show that the U.S. is becoming the most racially and ethnically diverse nation in the world. The growth of the U.S. population is being led by the Hispanic and Asian American ethnic groups. However, the Hispanic population is projected to show the largest numeric gain during this decade. It is estimated that the Hispanic population will grow by 11.8 million (a 71% increase). Meanwhile, the White non-Hispanic population will only increase by 1.3 million people. The Hispanic population is projected to reach 62.3 million people in the USA by 2020. These numbers will continue to grow because of the young age structure of this community.
As business owner, you are always looking for ways to grow your brand and company, gain a competitive edge in the market, innovate your industry, represent and support the different communities you serve to assure a stead-fast growth for your organization. Now more than ever, multicultural marketing will make or break the success of your brand in the marketplace.
The Census Bureau projects that only 50% of the population under age 18 will be non-Hispanic White by 2020. Also, by 2045 White non-Hispanics will no longer account for the majority of the U.S. population.
I still encounter some marketers and executives who believe the Hispanic market is not a top priority for their business success, even though the United States has been known as one of the most diverse nations in the world and the second largest Spanish speaking country around the globe. Taking all these new projections into consideration, if you are not embracing and engaging multicultural consumers with a culturally relevant approach your future success will be uncertain moving forward.
Here are 4 helpful tips for a successful outcome for your 2021 marketing budget and planning:
Embrace diversity: I understand, nobody likes to change. Playing safe might bring you a sense of comfort and accomplishment. The reality is that if you don’t connect and engage with minorities, and in particular Hispanics, you will be jeopardizing sales, market share, and revenue growth moving forward. As the author Roy T. Bennet said, “If you want to fly, you have to give up what weighs you down.” Minorities have a combined buying power of $3.9 trillion dollars in the USA and that number continues to grow. Imagine what percentage you could gain by letting go of past marketing habits and getting to know and embracing this new audience.
Recognize that mainstream is becoming multicultural: As I mentioned before, the U.S. is one of the most diverse countries in the world. The growth in racial and ethnic diversity is driven by two factors: natural increase and immigration. Of the two, natural increase is what primarily drives the growth in racial and ethnic diversity in the United States. As a matter of fact, the Census Bureau projected that between 2010 and 2020, 71% of Hispanic/Latino population growth was due to natural increase. Recognizing that your audience is evolving and changing your approach will be what determines your momentum moving forward.
Create a game plan: The best defense is a good offense. Many times, I encounter executives who tell me, “My competitors haven’t targeted Hispanic consumers yet, so why should I?” The answer is very simple, they haven’t thought about it or they don’t know how to engage with them yet. Act now and take ownership of this fast growing and influential market. This young consumer group is more likely to have a longer consumer lifetime value than other groups. As John Maxwell said, “A leader is one who knows the way, goes the way, and shows the way.” Take the lead in your company and in your industry.
Get help: Hire the right multicultural marketing consultant or agency that can help you and guide you in developing the right culturally relevant strategy and approach. At The Group Advertising, our trans-creational marketing approach creates and implements multiple derivatives from a single culturally relevant strategy across varying channels. This maximizes opportunities to interact within specific Hispanic demographics. Every marketing strategy has its own set of unique keys that trigger motivation and interaction. We understand how to reach into their lifestyle and connect on a genuine level. That’s how you secure loyal brand ambassadors for your business.
Moving forward, corporations and the brands they represent need to be able to communicate to everyone in our nation. To do so, you must have a profound understanding of the communities you serve, and of the consumers’ DNA, culture, wants, needs, and desires. It is the only way you will be able to lead, build progress, and succeed. As Steve Jobs said, “Innovation distinguishes between a leader and a follower.” We need to be constantly reevaluating who we are serving and how we are reaching them. You simply can’t stick with the way you used to market anymore. Your audience is evolving rapidly and they are more difficult to reach than ever.
If you are influenced by what you read and feel there is a broader opportunity to market your brand, please reach out to me at hernan@thegroupads.com and we can further discuss your needs and opportunities. To review some of TGA’s successful case studies, please visit www.thegroupads.com