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It pays to be aware of the similarities and differences when successfully marketing snack and bakery products to America's ethnic demographic.
America's melting pot continues to expand. Hispanic and Asian populations within the U.S. have increased 43% since 2000, according to "Understanding Multicultural Marketing," a recent article by Yahoo! and Mindshare, a global media network. Additionally, seven in 10 ethnic minorities say that ethnicity is a significant part of their identity.
Ethnic minorities also represent trillions of dollars in buying power and that number continues to grow. By 2015, buying power is expected to reach $1.5 trillion for Hispanics, $1.2 trillion for African-Americans, $775 billion for Asian-Americans and $90.4 billion for Native Americans, reports the Selig Center for Economic Growth at the University of Georgia's Terry College of Business, Athens.
Businesses that aren't involved in multicultural marketing, therefore, are missing a lucrative opportunity.
Similarities and differences
Although there are many commonalities in terms of marketing products to multiple cultures instead of a single demographic, there are a number of disparities and intricacies of which businesses should be aware.
For instance, a majority of companies offering ethnic products begin marketing to a niche demographic and then expand to a broader audience. "We worked backwards by beginning our marketing in ethnic stores and crossing into mainstream markets," says Mike Kan, sales manager at Golden Island Jerky Co., a Rancho Cucamonga, Calif.-based company and a division of Formosa Meat Co. The 60-year-old firm, with origins in Taiwan, manufactures more than 20 varieties of beef and pork jerky snacks, including Hickory Black Pepper, Grilled Barbeque, Chili Lime and Kung Pao.
This year, Golden Island is focusing on its national marketing by expanding retail availability in Costco and other major retailers throughout the U.S. as well as launching a new website with e-commerce. "There are several ways to target different demographic groups," Kan says.
In ethnic markets, some customers seek new and innovative products, while others look for authentic brands that remind them of home. The packaging differences reflect each brand's audience.
"In Asian markets, customers are seeking traditional products with a traditional look that may be outdated by today's standards," Kan says. "Many brands that have become obsolete in Asia are successful in the U.S. because of...