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African American Direct Marketing Presented by: Verdia E. Johnson President, Footsteps February 2005.

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Presentation on theme: "African American Direct Marketing Presented by: Verdia E. Johnson President, Footsteps February 2005."— Presentation transcript:

1 African American Direct Marketing Presented by: Verdia E. Johnson President, Footsteps February 2005

2 Overall African American Market Highlights

3 A frican American Buying Power *Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004 Over the past 14 years, buying power has increased 127% and is projected to increase 203% by 2009

4 A frican American Buying Power *Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004

5 A frican American Population *Source: Selig Center for Economic Growth, Terry College for Business, The University of Georgia, May 2004 The population continues to grow and outpace Non-Hispanic Whites

6 A frican American Population by Region

7 A frican American Population by Age *Source: U.S. Census Bureau, Census 2000 Summary File 1  48 % Male52 % Female

8 H ousehold Size Source: 2004 MRI DOUBLEBASE, Packaged Facts, Marketing to Women, 2004  Women are more prominent in AA households vs. general market households  48.2% of AA households are headed by women vs. 27.6% of non-Hispanic White households  AA women bring in almost half (48.9%) of total income in AA pop. vs.1/3 of the total income for other racial/ethnic groups

9 A frican American Education Attainment Source: Scarborough USA+ Release 1, 2003, 12 month data, 2004 Arbitron, Inc.

10 A frican American Residential Status Source: 2004 MRI DOUBLEBASE STUDY

11 African African Youth Market Demographic/Psychographic Profile

12 T arget Population Profile Demographics:  Age 16-21  Population - Roughly 5.5 million people  Geographic location -South - 58.7 -Midwest -16.9 -Northeast - 14.3 -West - 10.1  Majority live at home  Education - 70.2 % graduated from high school - 32.7% attend(ed) college Source: 2004 MRI DOUBLEBASE STUDY

13 Psychographics: They appreciate…  Speed: Live for the moment – they acquire information and move on, always multitasking  Individuality: It is essential that they retain individuality within a group environment and have the freedom to express themselves and their uniqueness (hip-hop)  Trendsetting: Recognizing the power of being first, they constantly seek the opportunity for newness  Technology: Using technology, to multitask, retain speed and, gather information; is an integral part of their lives  Entertainment: Part of the absorption mentality - in order to get their attention, it has to be engaging T arget Population Profile

14 African Americans are…  Fashion Forward -Spend significantly on clothes and shoes  Hip & Savvy – Internet Activity in last 30 days -Visited chat room - 339 Index -Sports/News & Current Events - Index -Played games online - 207 Index  Financially Independent -Employed - 63.4% -Acquired Savings Account in own name - 157 Index  Vigorous – Sports Played in Last 12 Months -Football - 237 Index -Basketball - 215 Index -Volleyball - 186 Index -Baseball - 174 Index -Softball - 157 Index -Soccer - 150 Index Source: MRI Twelveplus 2004 Psychographics:

15 R ap is the music … H ip- H op is the lifestyle … U rban is the mindset.

16 T he Hip-Hop Universe Hip-Hop...... is a lifestyle of youth that originates from the African American culture... has inspired an entire youth group to embrace its language, fashion and lifestyle... cuts across a rich cultural spectrum encompassing AAs, Whites, Hispanics and Asian Source:“Is Hi-Hop The Future of Rock?” Radio and Records, May 25, 2001  Hence, today’s clothing, sneakers, electronics and entertainment have all been heavily influenced by Hip-Hop music and its artists  According to a study by Edison Media Research, 12-24 year olds prefer Hip-Hop and Rap to any other style of music by an overwhelming margin

17 50% between 12-24 years Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003 T he Hip-Hop Universe Based on USA Today’s radio airplay chart, more than a quarter of the most-heard songs of 2003 were by Hip-Hop artists… Listener Profile:

18 Source: Hip-Hop station in Top 10 Markets, Cume Composition, Scarborough Surveys, Release 1 2003 T he Hip-Hop Universe Listener Profile: Ethnic Composition Gender

19  Television, movies, magazines, and even video games have all attempted to capture the Hip-Hop magic  Television networks like BET, UPN and MTV actively target the Hip-Hop audience  In movie theatres, films starring rappers and Hip-Hop stars have begun to cause major bounces in box office receipts  New book genres like Street Life have shown tremendous growth and are introducing a brand new audience to book publishing  Urban magazines like The Source, Vibe, Blaze, XXL and Rides are some of the fastest growing titles in the industry  Even video games are using Hip-Hop music and stars both on soundtrack and as major characters in storylines T he Hip-Hop Universe

20 Community Involvement:  Hip-Hop stars, DJs and radio stations play very active roles in their communities  Some of the charities and community programs these personalities are associated with are: -African American Leadership Council – Doug Banks (ABC Radio Personality -The Ludacris Foundation – benefiting children -SHINE – P.Diddy/Russell Simmons – empowering young people to promote diversity and end youth violence -Jes Us 4 Jackie – Nelly – benefits leukemia research -Save A Life Foundation – Snoop Dogg -C.A.U.S.E. – Eminem – helping underprivileged children and families -The Hip-Hop Summit Action Network – education and societal advocacy for at-risk youth T he Hip-Hop Universe

21  Hip-Hop fans are extremely loyal individuals  Hip-Hop carries with it a street credibility that young consumers are highly tuned to  Music plays a key part in their lives and they connect to the total lifestyle  That is what makes Hip-Hop music and Hip-Hop stars very effective as advertising vehicles  Fans buy almost anything the Hip-Hop lifestyle endorses  Therefore, strong Hip-Hop marketing can earn sincere brand loyalty from a notoriously fickle consumer group T he Hip-Hop Universe

22 Today’s role models have changed from athletes to Hip-Hop stars and they promote many products. The Gap – LLCool J, Missy Elliot Right Guard – Method Man, Redman Heineken – Jay-Z Coors Light – Dr. Dre Reebok – Jay-Z, Fifty Cent Cadillac – Snoop Dogg Coca Cola – Common Sense, Mya Twix – Usher Verizon – Tweet Lugz – Funkmaster Flex Cover Girl – Queen Latifah Got Milk? – Nelly Pepsi – Beyonce Knowles Dr. Pepper – LL Cool J, B2K T he Hip-Hop Universe

23 S uccess Stories  S. Carter Collection (Jay-Z) sold out in a few hours the first weekend it was in stores, making it the fastest selling shoe in Reebok’s history  When Western Union started using the urban format to promote money transfers, transactions increased 100%  Gillette saw a 14% increase in market share after advertising on Hip-Hop radio in Memphis  After Sprite launched an ad campaign with Hip-Hop stars, Time magazine reported that people who said Sprite was their favorite soda quadrupled Source: The Mercury News, March 2003

24 African Americans and Direct Marketing

25 D irect Marketing Overview  It is estimated that only 30.5% of African Americans are exposed to direct mail  However, more than 75% of this segment read the direct mail received  Historically, the distribution of relevant direct mail has been hindered by a lack of lists that are accurate and reliable  However, today’s technologies allow the extraction of knowledge from general data bases and rented lists in order to identify people by race and ethnicity as well as provide other attributes  There is also a growing number of opt-in lists available  Based on the limitations of direct mail, the most successful direct marketing campaigns in the African American market and among this young target audience are integrated and focused on… -their interests -the media that they consume most often Source: Targetonline.com, Target Marketing Tipline, September 2003, Geospace International

26 R elevant Communications Vehicles  Television: - Good vehicle for broad reach and complete brand communication - Sight, sound and motion provides high visibility and excitement and accommodates direct response mechanism - Cable, network and syndicated TV provide a range of programming for the youth target audience - Ability to extend message with promo announcement at the end of specific programs - Limitations include limited interaction and short format  Spot Radio: - Strong frequency medium that is good for message reinforcement - Deep penetration into communities via local area promotions, sometimes in conjunction with high profile organizations - Best medium in a local area for forming an allegiance with the potential customer; DJs have celebrity status and can hype a product campaign - Delivers local market ratings similar to general market television activity in most markets

27  National Magazines: -Visual message allows for clear registration of products, services and call to action -Format can accommodate complex message -Efficient in delivering the target -Good selection of titles for youth market -Work with publications to distribute information to their subscribers -Limitations - not very accomplished in delivering regional market needs  Internet: -Sight, sound and motion makes message impactful -Interactive (Chat room, etc.) -Can accommodate long format message -Can cross promote with publishing and broadcast vehicles -Can track results daily R elevant Communications Vehicles

28  Events: -One-on-one conversation with consumers that blend fun and exciting activities -Interactive -Collect data base R elevant Communications Vehicles

29 BET’s “Rap It Up” Campaign  BET partnered with the Kaiser Family Foundation to develop a public education and awareness campaign about HIV/AIDS  The objective of the campaign was to get information into the hands of young people  The campaign included television and online components that included AIDS related programming, public service announcements with a toll free hotline and website with AIDS-related information  The campaign also had grassroots components which included: -Teen forums hosted by BET talent -Partners from the local public health departments for on-site testing -“Classroom Connection” curriculum based on the BET documentary series – The Naked Truth

30 BET’s “Rap It Up” Campaign (cont.)  Results were good; as of May 2004: -More than 85% of AAs in the 16-24 age group were aware of the program -900,000 people called the hot line -300,000 people received sexual health information -11,000 participated in on-site tests and forums

31 D irect Response Programs XXL magazine ads featuring urban-to- direct video movies generated $170K in sales for every $100K of ads A client’s response rate in Vibe was 10% on an insert card AOL CD insert in Complex magazine generated a 15% response

32  Short film in movie theatre  Internet videos  CDs inserted in print media  Message on DVDs O ther Relevant Communications Vehicles

33 Recruiting Insights

34 E nvironment Change PeaceWar LifeDeath

35  Majority of African Americans are against the war in Iraq and have been against the war from the beginning -Some AAs feel that they (in addition to Hispanics and poor whites) are bearing most of the burden for fighting and dying in the war  Also, politically, a majority of AAs feel that the current administration is oblivious to its concerns, and the war in Iraq has reinforced this perception  From a youth perspective, perceptions are no different  Hip-Hop artists continue to organize and speak out against the war in Iraq R ecruiting Issues Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004

36  Some of these artists (role models) are:  Some of these artists have lyrics and comedy routines expressing views against the war (i.e. XZIBIT, R. Kelly and Eminem), while others formed a United Against The War Coalition R ecruiting Issues Source: Washingtonpost.com, “Bush, Blacks, and Iraq”, May 20, 2004 R.Kelly OutKast XZIBIT Mos Def Jay-Z Fat Joe Missy Elliott P. Diddy Tweet Busta Rhymes Nas Eminem

37 R ecruiting Issues The most vocal rapper recently is Eminem with lyrics and a video about his views from his song called “Mosh”

38 H istorical Recruiting Continuum Becomes Aware Becomes Intrigued Seeks Info Seeks out Dialogue Wants to Join Affirms Decision Print TV Online Media Radio Direct Mail DRTV - respond Events - get brochures Website Recruiter Materials Recruiter Support Call 800 Number Prospect …

39 N ew Paradigm With a different environment and recruitment issues, prospects will critically evaluate the message and the medium, therefore, the following should be examined:  Message impact in the context of the new environment  Message delivery based on the barriers that exist  Immediately engaging vs. informing/intriguing a prospect  Market segmentation based on profile and geography

40 S trategic Approach  Focus on Influencers -Parents, coaches, teachers, clergy, directors of recreation centers, trade schools, GED classes, etc.  Explore long message formats -Facilitates a more complex message

41 N ew Recruiting Paradigm Influencers Seek Info Prospects Seek Info & Dialogue Prospects Decide to Join Prospects Affirm Decision Direct Mail Print Community Outreach Online Media RadioWebsite Recruiter Materials Recruiter Support 800 Number More human support at all stages … Influencers Become Aware Influencers Engage Prospect Online Media

42 C onclusion  The majority of the target audience (16-21 year old AAs) participates in or is influenced by the Hip-Hop lifestyle  Because of this influence, the Hip-Hop community’s negative views about the war in Iraq are also influencing their thinking on this subject  As a result, there is a need for the military to enlist other influencers and employ the best direct marketing vehicles to engage prospects and help counteract this view

43 Thanks! Any Questions?


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