Minority Target Markets in America - Coursework Example

Introduction According to the projection of the American population, by 2030, the population of the three minority groups among other minorities, will make up one-third of the American population, and by 2050, Hispanic and Asian are expected to double their population size in America. These results demonstrate that the rise of the minority groups is greatly changing the American’s consumption patterns, therefore, influencing the marketing strategies. Companies are, as a result developing strategies to communicate with these groups through programs, marketing and advertising, diversity initiatives, and segmented communication. This paper is, therefore set, to discuss the size, location, purchasing power, and market potential for the three largest minority target markets in America, which are Hispanic Americans, African Americans, and Asian Americans. Hispanic Americans The Hispanic Americans market has a wide variety of segments, approximated to be two dozen nationalities among them being Dominican, Cuban, Mexican, and some central and South Americans. Hispanic Americans have become the largest minority group in American with an annual purchasing power approximated $1 Trillion in 2010 (US Census Bureau). According to population statistics as of 2010, the Hispanic Americans population was estimated 52 million, with 63% of Hispanic-origin people in the United States with a Mexican background. Additionally, their rate of growth in the 2008-2009 period was, in every two people added to the American people, one was a Hispanic American, thus during that period, over 1.4 million Hispanics were added in the American population (Passel, Livingston and Cohn). According to their average age estimation, 27 years is approximated to be the median age for the Hispanic Americans by the years 2012, this is in comparison to the 36 years median age for the complete American population. However, their education level is lower, since only 13% of the Hispanic Americans population of the age bracket of 25 years and older, have attained a bachelor degree or higher (Farley, Reynolds, 190-193). Therefore, they suffer from high level of unemployment and diminished disposable income (Hispanic households median income is $37,760), but despite this situation, they are still an attractive target. This is because they have lower credit card debts, lower mortgage, and a superior tendency to purchase advertised products. According to the 2010 census in America, California, Texas, and Florida was a home to 50% of Hispanic Americans population. In which, 14 million Hispanics lived in California; Texas was approximated to hold 9.5 million Hispanics, while Florida held 4.2 million people. Additionally, there are also some other states that hold at least half a million Hispanics’ households; they include Georgia, Colorado, New Jersey, New York, New Mexico, Texas, Washington, Virginia, and Pennsylvania (Demetrios Papademetriou). Unlike other minority groups, Hispanic Americans disposable income is spent differently, since while spending on beauty products and clothing, they spend more of their average income on food. They spend on average, 17.5% of their income on food. For instance, America’s largest Hispanic food company sells 1,600 food products, such as beans, rice, ready-to-eat, and frozen empanadas. A report released by Food marketing Institute indicates that the groups tend to purchase fresh produce in groceries more than other groups, since they prefer preparing their own meals traditionally. Meaning that, food products are the main brands that have the higher purchase for the Hispanic Americans. Asians Americans While the population growth of other minority groups is slowing, Asian Americans continue to grow with an approximate of 50% population growth since 2000. The Asian Americans market represents a considerable growth opportunity for several businesses. According to the 2012 statistics, the Asian Americans population is approximately 18.2 million representing the highest growth rate of minority groups in America (US Census Bureau). Thus, businesses are no longer keeping them under the radar since the group is important to the several business growth and growth. According to the American economic reports, Asian American’s median household income is estimated to be 28% higher, amazingly, higher that the total American median income. Asian Americans demographics offers an attractive potential market growth, since 50% of the Asian Americans of age bracket 25 years and older, hold a college degree or higher compared to the 28% of the same age bracket in America. In the recent years, the population of the minority group has grown with double digit in more than 50 states, while some other states have experienced a 200% increase in the number of the Asian Americans. Despite their increase in population in other states, New York, Los Angeles, and San Francisco are home to 40% of the Asian Americans population (OHare and Judy). Additionally, while television is providing a dominant medium of communication thus businesses are finding it cost effective to reach consumers through the television and other alternative resources such as radio and print media. This is because 60% of the Asia TV households reside in the top 10 designated market areas and 85% living in 33 television markets. Moreover, Asian Americans frequently use multiple digital screens to view videos and programs thus building a good platform for advertisement of products (Pallas, Gary and Edward, 16-22). According to market research in ten clothing companies, clothes have become of the products that the Asian Americans purchase more. Several Asian Americans designers have achieved significant success, for example, the Hanae Mori couture designer, Vera Wang, and Anna Sui are among other designers who have experienced success in the industry. However, Asian Americans have been overlooked to purchase cosmetics and beauty kits with only few suppliers in the market, for example, Zhen Cosmetics and Skinlight Cosmetics. This is contrary to the attention they offer to their traditional food products with the majority of the supermarkets stocking not only the Asian foods but also carry particularly labeled packages in several Asian languages. African Americans According to 2012 statistics, African American population reached 43million, approximately representing 13.7% of the American population. Since the year 2000, the population of the African American has increase by 17.9% of the total population in America, 6.6% greater than the total population growth thus becoming the largest racial minority in America (CDC). Therefore, understanding shopping decisions and the media habits at different age bracket can help businesses optimize important advertising strategies and promotion. In this case, younger people are the driving force for several cultures, thus tend to adopt technologies at an early stage. Statics shows that African American population is 14% younger that the America population with a median age of 32 years (Shavers‐Hornaday, 31-45). Also, significance noting, the population of the African Americans market growth exceeds the rest of the population by 30%. The demographic of their population is younger, educated, and earns higher incomes. Since the year 2000-2009, they experience an increase to 45% men and 54% women achieving a college degree at the age bracket of 25 years and above. In addition, their median household income grew by 60% faster than the rest of the population in America. Over the years, it has been noted that African Americans make more shopping trip but spend less money per trip compared to the other groups (Saffron and Nazroo, 624-631). South and Southeast, and Mid-Atlantic regions, particularly in big cities, metropolitan, suburban, and town and country are homes to the African American in all states of Unites states. According to the technology industry, 23.9 million African Americans were active internet user with 76% visiting the social networking sites (Perenson). Thus, the internet becoming one of the highly used products by the African Americans, they also use double mobile voice minutes compared to the other groups, meaning that the communication industry has achieved success due to the African Americans. Therefore, most businesses have opted using the internet and television to advertise and make product promotions (Perenson). Conclusion Conclusively, in the recent past, the composition of the American population is significantly changing, and as the American population continues to increase, consequently does the purchasing strength of the minority groups. Hispanic Americans, African Americans and Asian American have now become the majority minority groups, thus being the target of the different emerging markets in America. In the current set up of the American population, the minority groups coexist in the mainstream population with the majority groups, therefore, this leads to predicting that, if companies use ethnicity as criteria for segmented markets, it will increase the minority groups’ importance. References CDC. Black or African American Populations. 10 February 2014. Web. 17 April 2014. Demetrios Papademetriou. Immigrants in the United States and the Current Economic Crisis. 1 April 2009. Web. 17 April 2014. OHare, William, P. and C., Felt Judy. Asian Americans: Americas fastest growing minority group. 1991. Web. 18 April 2014. Pallas, Aaron M., Natriello Gary and L. McDill Edward. " "The changing nature of the disadvantaged population current dimensions and future trends." Educational Researcher (1989): 16-22. Document. Passel, Jeffery, Gretchen Livingston and DVera Cohn. Explaining Why Minority Births Now Outnumber White Births. 17 May 2012. Web. 17 March 2014. Perenson, Melissa J. Microsoft Debuts Minority Report-Like Surface Computer. 30 May 2007. Web. 18 April 2014. Saffron, Karlsen and James, Y. Nazroo. "Relation between racial discrimination, social class, and health among ethnic minority groups." American journal of public health (2002): 624-631. Document. Shavers‐Hornaday, Vickie L., et al. "Why are African Americans under‐represented in medical research studies? Impediments to participation." Ethnicity & health (1997): 31-45. Document. US Census Bureau. 2008-2012 American Community Survey 5-Year Estimates. 2012. . US Census Bureau. 2010 Census. 2011. Web. 18 April 2014. Read More