Marketing to South Asians in Great Britain - Essay Example

Running Header: SEGMENTATION SUCCESS Segmentation Success: Marketing to South Asians in Great Britain Introduction and Background. The past twenty years have seen an explosion in both the number of media available to the marketing professional, as well as the sophistication with which marketers approach their potential customers. Marketers can target shoppers based on their gender, age, ethnicity, education level, neighborhood - and even their past shopping history. There is a vast wealth of technology at helping marketers focus specific products toward specific people, with an eye toward maximizing each advertising dollar (Mitchell and McGoldrick, 1994). Segmentation in marketing has a clear logical basis (Green, 1977; Wind, 1978; Kalwani and Morrison, 1977; Mahajan and Jain, 1978). It is "fundamental to successful marketing strategies. Until competitors copy or segment your segmentation, you have a competitive edge"(McBurnie and Clutterbuck, 1988). Why is this study important However, there are some segments of the British consumer public that are not being reached as effectively as others. One of these segments is the South Asian community - those from the Indian peninsula and the surrounding countries - and research shows that this represents half of the British immigrant population (Burton, 2002). Worldwide, immigrants from this region are underrepresented in marketing surveys and journal research (Stern, 1999; Williams, 1995). While 20,000 Indians and Eastern Europeans were recently allowed to immigrate into Germany because of shortages in the computer industry, there is no evidence that German marketers are taking advantage of this new segment (The Economist, 2000). This is a trend that is even more marked in Britain. There are several reasons for this: parts of the South Asian immigrant community are viewed as a sort of underclass (Lash and Urry, 1994); many perceive this group as lacking the purchasing power to join the consumer society (Sivanandan, 1989); there are very few South Asian marketing managers in British firms (Burton, 2002); and there is a confusion in some marketing firms as to how to reach the South Asian community (Gooding, 1998). While there is a growing awareness of this group as a "formidable [segment] as consumers, workers, and investors"(Palumbo and Teich, 2004), there are some areas of debate in just how this group should be reached. These include the rapidity with which immigrants from South Asia will gain consumer values similar to those of British society (Bhugra, Kamaldeep, Mallett, and Manisha, 1999); which consumer values will change at all, or remain the same (Ryder and Paulhus, 2000); whether or not British firms should use South Asian languages and cultural symbols in their marketing campaigns, trying to find a balance between a sense of welcome and a sense of ostracization (Palumbo and Teich, 2004; Koslow, Shamdasani, and Touchstone, 1994; Holland and Gentry, 1999); and at what point segmentation becomes isolation (Briley and Wyer, 2002). What will others learn from this study "There is no such thing as a simple demographic fact in international research" (Bartos, 1989). While research has shown a tremendous growth in technological capabilities of segmenting (Mitchell and McGoldrick, 1994), there is still a significant need for what has been termed a "bespoke" system (Openshaw, 1989) - one that can find target households and target customers efficiently. Some areas of concern that still exist in this area include more precise age targeting, outmoded data, and a way to predict what consumers will buy in the future - not just a list of what they have purchased in the past (Mitchell and McGoldrick, 1994; Openshaw, 1989). Why is this study necessary There is a good amount of research into qualitative characteristics of a successful segmentation strategy. Such concepts as well-designed planning, commitment and participation by senior management, effective selection of segment bases, flexibility with market trends, and marketing creativity have proven quite effective (Weinstein, 1987; Weinstein, 1994; Engle, Fiorillo, and Cayley, 1972; Brown, Shivishankar, and Brucker, 1989; Coles and Culley, 1986). However, there are some glaring holes within the body of marketing research as to how to reach the South Asian immigrant market: quantitative strategies, and quantitative results, associated with the segmentation process (Dibb, 1998), and a lack of detailed consumption studies for this segment of the market (Burton, 2002). Research Aims and Objectives. There is a clear need for a quantitative analysis of the ways in which demographics, psychographics and behavioral differences interact in purchasing decisions for members of the South Asian immigrant community. While there are several industries under consideration, the food/beverage and cosmetics industries, particularly with respect to women between the ages of 16 and 40, will be emphasized. A five-point Likert scale will serve as the basis of surveys of both professionals in the marketing industry as well as members of the South Asian community. The Likert scale has a well-documented history in measuring attitudes. Surveying the marketing industry will establish whether perceived and actual hindrances to reaching the South Asian community still exist, and also reveal the most recent advances in finding customer base within this burgeoning segment of British society. Surveying members of the immigrant community will be used to gauge how effectively these marketing techniques are reaching their target segments, and to formulate recommendations for further refinements to the marketing process. The South Asian community is not just one bloc of homogenous people, with identical wants and needs. There are over 800 languages represented in the Asian immigrant community, and there are also significant differences in how Asians perceive the media (Kaufman-Scarborough, 2000; Piercy, 1992). Familiarity with the English language varies widely, as does religious preference (Taylor and Lee, 1994; Taylor and Stern, 1997; Natividad and Gall, 1996). There are, however, some cultural commonalities that provide the marketer with some starting points. Because of the availability of cheap labor in the Indian peninsula, wealthier Indian immigrants are used to household conveniences and will buy them for their homes. Most South Asians place a high value on the education of their children, and so will likely buy computers. Because saving money is important, this is an excellent segment for stocks, bonds, CDs, and businesses - especially franchises. However, a major difference that some marketers miss is that, in families in this segment, the male head of the household often makes the purchasing decisions. Advertising in Britain often portrays the husband and wife making decisions together - an element that has been known to alienate members of this segment (Kaufman-Scarborough, 2000). Anticipated Findings. I anticipate several conclusions from this research. First, there will be a significant sense of alienation within the South Asian community, that they feel that they are being targeted as an ethnic group rather than as individuals. This sense will come from errors that marketers will make in attempting to reach this segment - incorrectly used cultural symbols, or portraying South Asians in situations that do not reflect the culture's religious and social beliefs. Second, there will be significant unawareness of religious and social practices among many of the marketing professionals attempting to reach this segment. I anticipate that some of my conclusions will square with the existing literature expressing this current gap in the British marketing industry. An excellent example of this gap is the relative unawareness, throughout much of the marketing community, of the South Asian media. There are five Asian channels on British cable television (Gooding, 1998), and the Punjabi print media provide another avenue for marketers to reach their South Asian clientele (Tarla and Singh, 1989). This paper will also answer some of the following questions that need to be answered before the South Asian segment can be fully plumbed: What are the characteristics of the segment as a whole How do women in this segment differ from women in other segments, as far as cultural values and purchasing priorities go How should individual company rank this segment, in terms of marketing priority, against the other segments in the British market (Dibb, 1998) Is the South Asian market large enough for the product the company is trying to market How much is the market expected to grow How does the age structure of this segment compare to other segments (Burton 2002) How does the segment fit within a company's organizational objectives and resources It may be that companies can arrange to pool resources for a synergy that will market both to the South Asian community more efficiently than either of those companies could have done alone (Gooding, 1998). Stereotypes of the South Asian community abound throughout the entertainment world in many Western countries. While these stereotypes may sell advertising time and make networks profitable, they contribute to a sense of ostracization among the minorities represented in those sketches. Marketers have a considerable disadvantage to overcome - to gain the trust of minority segments, marketers must make themselves aware of the culture of their target clients, and of mores within that culture that will make their campaigns not only inoffensive, but appealing. There are members of the South Asian segment with significant purchasing power, and this thesis will bring to light new ways for marketers to bring those revenues into their own companies. Works Cited Bartos, R., 1989. "International Demographic Data Incomparable." Marketing and Research Today, vol. 17, no. 4, pp. 205-212. Bhugra, D., Kamaldeep, B., Mallett, R., and Manisha, D., 1999. 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