Presentation at the CBI Conference on Multicultural Marketing

1. Alignment of Cultural “DNA” with Brand Attributes
in Marketing Campaigns
April 30, 2008
THE CENTER FOR BUSINESS INTELIIGENCE
1

2. Corporate America Recognizes the Potential.
Ethnic Markets Are In the Growth Phase
Intro Phase Growth Phase Mature Phase Decline Phase
General Market
SALES & PROFITS
Growth Phase
Strategies
Identify under-served markets
Mature Phase
segments
Strategies
Align brand and targeted
segment’s attributes (culturally
relevant)
Leverage attributes to maximize
brand consideration (reasons to
believe in the brand)
Deliver a unique customer
Ethnic Markets
experience
• Hispanic
• Asian American Anchor the brand through cross
• African American sales and referrals
Source: Marketing Management – Philip Kotler
2

3. The US is Now A Country With Different Colors,
Tastes and Rhythms
Multicultural Penetration
1970 2000
3

4. Multicultural Consumers’ Economic & Geographic
Characteristics Are Evolving
4

5. Cultural Consumer Groups Have Different
World Views and a Unique “Cultural DNA”
5

6. Macro Differences Among Major Cultural Groups
Philosophical Orientations of Different Cultural Groups
Cultural Groups Value Orientation Knowledge System of Way of Living
World Views Orientation Thought
European Person-Object Cognitive: One Dichotomous: Technology: All
knows through Either/Or behavior is
Euro-American The highest value
counting and repeatable and
is in objects or
measuring. reproducible.
the acquisition of
objects
African-American Person – Person: Affective: One Diunital: The Ntuology: All
knows through union of behavior is inter-
Hispanic The highest value
feeling and opposites. related through
is relationship
Arabian
rhythm. human and
between people.
spiritual networks.
Asian Person – Group: Conative: One Nyaya: The Cosmology: All
The highest value knows through objective world is behavior is inter-
Asian-American
is in group unity. self independent of related in the
Native American
transcendence. thought and harmony of the
mind. Polynesian
universe.
6
From Nichols E.J. Understanding the Philosophical Orientation of Different Cultural Groups.

7. It’s not just about a different language, it’s also
about a different culture
Hispanic Cultural DNA
Relationship
Oriented
Low Reliance
on Institutions
Inter-
Family
dependence
Oriented
Inclusiveness of
Extended Family
7
Source; Isabel Valdes

8. Cultural DNA - African-American Consumers
African-American
The Black
Experience
Independence
(overcoming adversity)
Gratification
Diversity
Slavery
Relationships (recognition of uniqueness)
Post Slavery
Discrimination
8
Source: “What’s Black About It” Miller-Kemp; Yankelovich.

9. Cultural DNA - Asian-American Consumers
Asian-American
Communication /
Non-Confrontation
Celebrations
Cooperation
Group Philosophy /
Church
Community &
Family
9
Sources: Various data sources.

10. . . . And, Multicultural Consumers Have Different
Experiences & Attitudes Towards Financial
Services . . .
10

11. Multicultural Consumers’ Financial Holdings
Proprietary Slide Omitted
11
Source: DataMonitor.

12. Attitudes Toward Insurance
Percent of Households Who Agreed In A 2001 Survey:
“I buy the minimum amount of (auto) insurance that is required by law”
47
46 44
40
43
Household Income:
38
34
Less than $25K
25
38
34
$25K to $44K
21 44
14
$45 to $75K
23
17
12
More than $75K
Ethnicity/Race: Anglo Hispanic African- Asian
Am erican
12
Source: Barraza Consulting Group Knowledge Database.

13. Brands, Like Consumers Have Distinct
Attributes & Personalities
13

14. Burger King
14

15. Red Robin
15

16. Treo
16

17. iPhone
17

18. Dasani
18

19. Perrier
19

20. . . . Financial Service and Insurance Companies
Can Compel Multicultural Consumers To Buy
Their Products & Services . . .
20

21. Alignment of Brand and Consumer Attributes
Maximizes Business Results
Barraza Consulting Group’s Alignment Process
21

22. Case Study: Brand XYZ
Multi‐Line Insurance Company
Process to Align Brand XYZ With Target Hispanic‐
Centric Consumers in Major Metro Market
22

23. BCG’s Alignment Process for Brand XYZ
DISCOVERY DESIGN DEPLOY
DISCOVERY DEPLOY
DESIGN
• Strategies • Communicate Goals
• Assess Current State
• Sales Targets/Goals • Build Out Process
• Management Interviews
• Marketing Plan • Start Creative Development
• Distribution Channel
• Scorecards • Maintain Org. Alignment
Interviews
• MarCom Plan • Design Research / Measure
• Benchmark
• Research Plan • Transfer Knowledge
• SWOT
• Organizational Alignment • Manage Blind Spots
• Situation Analysis
• Internal Comm. Plan • Initiate Research
• Plan for Design Phase
• Operating Budget • Launch Initiative
• Measurement Plan
• Performance Checkpoint • Populate Scorecards
• Strategic Intent
• Baseline
23

24. Business Opportunity Analysis for Brand XYZ
Population Growth 2006 to 2011 – Selected States
• Market Sizing Percentage Change By State (2006 to 2011)
White N H
on ispanic Black N H
on ispanic Hispanic Population
• Demographic Trends 40%
35%
• Geographic Analysis 30%
25%
• Middle Market Estimation 20%
15%
10%
• Modeling 5%
0%
a tts
a
ey
ni on
rk ee
o gan gia olin
ia ia a
a
a s
s oi lva in se gt
xa Yo hi an zon ss
-5% rn rs
id r
r
i
or di
rg hu
in
ifo Je in
O ich eo Ca
Te ew i
Ill nsy e
Fl Vi ac Ar enn
al sh In
ew
G th
M a
C N s
n
or as
Pe T
N W
N M
Population Growth 2006 to 2011 – Florida Hispanic Household Income 2006 to 2011 - Florida
Proprietary Slide Omitted Proprietary Slide Omitted
24
Source: Analysis by Barraza Consulting Group. .

25. Population Growth 2006 to 2011 – Florida
Proprietary Slide Omitted
Significant Hispanic growth in Florida will continue.
Half the Florida population growth from 2006 to 2011 will be Hispanic.
25
Source: Analysis by Barraza Consulting Group. .

26. Hispanic Household Income 2006 to 2011 - Florida
Proprietary Slide Omitted
There is a sizeable Hispanic middle market in Florida.
Over the next five years middle market Hispanic households will increase rapidly.
26
Source: Analysis by Barraza Consulting Group. .

27. Business Opportunity Model
Auto Insurance
Barraza Consulting Group’s BOMSM
27

28. Intelligence About Brand XYZ
• Strengths
– 100+ years in business.
– Strong bond with its independent agencies.
– Claims and customer service are its key differentiators.
– Has distribution capability in place to sell to target segment.
• Weaknesses
– Lack of brand equity and recognition among consumers.
• Opportunities
– Minimal channel competition for ethnic markets.
– Agencies and organization recognize the market opportunity.
• Threats
– Competitors starting to focus on the value of excellent service.
28
Source: Interviews, data analysis, synthesis by Barraza Consulting Group.

29. Consumer Insight Enabled Alignment With
Brand XYZ Attributes
Proprietary Slide Omitted
29

30. Brand XYZ Core Strategies
• Brand messaging: “….. ”.
Promotion
• Leverage brand longevity, 100 years of Brand XYZ heritage.
• Weak brand equity
• Communications technology to drive consumer to distribution channel.
among consumers.
• Minimal IA channel
competition.
Placement
• Strong bond with agencies.
• Align target geographies with best in class agencies.
• Agencies recognize market
•. Implement agency mentorship program.
opportunities.
• Existing capability to sell to
target segment.
Product • Provide In-culture education..
• Claim & customer service are • Build-out infrastructure, based on demand.
major differentiators. • Continually assess customer experience to align with growth initiatives.
• Competitors are starting to focus
on the value of excellent service.
People
• Brand XYZ commitment to growth markets publicized.
• Infrastructure ready to support
• Leverage diversity to gain competitive advantage.
Hispanic market.
• Org. recognizing market
opportunities.
Pricing
• Track segment performance.
• Distribution believe the
Note: selected strategies. • Adjust targeting as needed.
middle market is
accessible.
30

31. Brand XYZ:
Targeting Hispanic Cultural Centricity (zip+4)
Del Rio
Del Rio
Egypt Lake
Egypt Lake SLIG H
SLIG H
SLIG H
West Park
West Park
Y 41
Y 41
Y 41
US HW
US HW
US HW
WK
KK
MO HAW
MO HAW
MO HAWK
WK
WK
own 'N' Country
wn 'N' Country
East Lake-Orient Park
East Lake-Orient Par
H
H
H
RO UG
RO UG
O UG
LS BOR
0 HILLSBO
LS BO
0 HILLS
LS
WY 580 HILLS
HWY 58
HWY 58
ST ATE H
STATE
STATE
TALIAFE
TALIAFER
TALIAFE
TA
TALIAFER
Y 574
57 4
57 4
57
57
57
E HW Y
E HW Y
E HW
STAT
STAT
STAT
ERRO
RRO
RRO
RO
RO
RO
RO
RO
US
US
U
U
O
STATE HWY 589
STATE HWY 589
STATE HWY 589
STATE HWY 589
40TH
40TH
40TH
4
II 4
I4
4
I4
II 4
HWY 45
Y 45
Y 45
ST AT E HW
STATE HW
US
US STATE
CO LUMBUS
CO LUMB
39TH
39TH
CO LUMB
89
39TH
39TH
589
89
8
Y5
Y5
WY
OW ER
RR
HOW E
HOW E
WY
US HW
US HWY
US HWY41
US
US
US
US
US
HW
EIS ENH
HW
Tampa
EIS EN
EIS EN
Tampa
EH
NE
NE
N
N
N
E
TE
AT
US HWY
US HWY 92
AT
US H Y
US
US HWY 92
BR
BR
BR
STA
ST
ST
ST
AS
41BUS
AS
AS
SK
SK
SK
SK
W 92
BUS
BUS
BUS
ST
ST
BUS
ST
ST
A
A
AA
A
TA
AT
AT
AT
92
S
S
TE
TE
HWY 60 CL EVE LAND
Y 60 CLEVELAN D
Y 60 CLEVE LAN D
CL EVE LAN
CLEVELAN
CLEVELAN
E
EH
STATE HW
STATE HW
ST AT E
Palm River-Clair Me
M
HW
HW
Palm River-Clair Me
H
HW
HW
H
DY
Y
EDY
DY
NED
Y
YY
Y
NN E
18
8
NNE
8
8
60
60
60
N 60
6
6
6
6
81
8 61
Y6
1 86
KEN
KEN
618
WY
61Y
KE
Y
KE
61
YW
HW
YW
Y6
H
6
EH
676
6
EY
HWY 67
HWY 67
HWY
TW
HW
HW
TW
HE
TE
STATE
STATE
STATE
EAT
EH
ST A
TTA
E
AST
AT
AT
AT
S
ST
ST
ST
ST
Overlays
Cultural for
Classes
CULTURE SCORE
Centricity
CITIES in FLZIPPLUS4
FL ADDRESSES
Low
0.0 - 20.3
FLZIPPLUS4
STREETS_E Medium
20.3 - 27.1
MAJ HWY RAM1 27.1 - 67.7
High
INTERSTATES
Excluded
MAJ HWY RAMP
Not Selected
HIGHWAY(H)
AIRPORT PLY
HWY (H)
STATESBYNAME
WATER
HYDRO_MJR PL
31

32. Brand XYZ:
Measurement of Hispanic Centric Business
Brand XYZ Households
Brand XYZ Market: Miami Dade
Market Segment Baseline Analysis
Market Segment: Hispanic Centric
Developed by Barraza Consulting Group
Brand XYZ: as of 1Q07
Households Households
Hispanic
Centricity Brand XYZ Market Brand XYZ
Score Households Households Share % Auto Only Prop Only Auto & Prop
4.7
10 info. withheld (iw) info. withheld (iw) info. withheld (iw) info. withheld (iw) info. withheld (iw)
8,571 131,693 6.5 5,943 2,217 416
9
7.6
8 i.w. i.w. i.w. i.w. i.w.
8.4
7 i.w. i.w. i.w. i.w. i.w.
0.1
6 i.w. i.w. i.w. i.w. i.w.
15,217 103,907 14.6 6,332 7,062 1,823
5
18.0
4 i.w. i.w. i.w. i.w. i.w.
14,407 83,809 17.2 5,932 6,332 2,143
3
155 3,258 4.8 107 48 -
2
0.0
1 i.w. i.w. i.w. i.w. i.w.
Total Market 11.0
i.w. i.w. i.w. i.w. i.w.
Total in
76,486 740,890 10.3 38,930 29,358 8,187
Scores 4-10
Barraza Consulting Group, July 2007
NOTES: BRAND XYZ RESULTS INDEXED TO MAINTAIN CONFIDENTIALITY 32
i.w. = information withheld to maintain confidentiality

33. The Power of Differences.
The Difference that Makes the Difference.
33

34. Hahns Beer: Gender
Video Clip Shown
34

35. Maxima: Anglo
Video Clip Shown
35

36. Maxima: African-American
Video Clip Shown
36

37. Allstate: Asian
Video Clip Shown
37

38. Allstate: African-American
Video Clip Shown
38

39. Allstate: Hispanic
Video Clip Shown
39

40. “The secret to maximizing the growth
potential offered by multicultural
markets is an organizational effort
that is systematic and holistic.” .
40

41. What Is Organizational Effectiveness in
Multicultural Marketing?
Organizations evolve from Dormant to Leadership in pursuit
of High Growth Market Segments, like the Hispanic market.
Leadership Multicultural Marketing strategies “baked in” and fully
e ss
incorporated into business goals leading to broad
organizational accountability for results.
ucc
Advanced Business unit aligns multicultural marketing strategies
with business objectives.
&S
Emerging Business unit dedicates resources and organizes
unique multicultural marketing effort.
Awakening Local market leaders (e.g., Brand and Sales
Managers) identify opportunities to accelerate growth
th
by focusing on multicultural market segments.
ow
Dormant Brand awareness and consideration by multicultural
market segments is extremely low or non-existent.
Gr
41

42. What are the Dimensions of Organizational
Effectiveness?
Dormant Awakening Emerging Advanced Leadership
Inactive Reactive Pro-Active Strategic
Under representation of HGMS Periodic analysis of the book HGMS baseline, within book Measurement system HGMS measurement and
Segments
(High Growth Market Segments) of business identifies of business, and growth continuously monitors accountabilities integrated into
Market
within book of business relative opportunities and challenges objectives established. HGMS performance with corporate and business unit
to the market opportunity. among HGMS. scheduled updates to metric systems.
corporate stakeholders.
Distribution channels concerned Unilateral actions by Business Unit provides Strategies developed to Segmentation models identify
about missed market distribution channels to marketing support, as needed, systematically provide and support HGMS in a
Sales
opportunities. address HGMS needs. to distribution channels. marketing support. changing market environment.
Poor customer experience with Ad hoc service adjustments Service best practices Broad communication of HGMS customer service
Experience
Customer
underlying service issues by front line employees identified and strategies service best practices with insights and practices
unresolved. address unique needs of developed to improve service significant improvement of evaluated for their
HGMS to HGMS customer satisfaction. applicability to the broader
customer base.
Brand awareness and Sporadic participation at Business unit provides funding Community Outreach Community Outreach
Community
consideration by HGMS is community events to develop for community outreach and strategies developed to strategically aligned with
Outreach
extremely low or none existent. awareness and consideration. event participation selectively and strategically business objectives and brand
engage social-civic leaders participate on selected
organizations organizations’ boards of
directors
Hidden asset and often The brand recognizes that The brand assesses and Sponsorship and mentorship Diverse suppliers strategically
Suppliers
underleveraged resource. spend is an investment in communicates to leaders of diverse suppliers selected in communities
communities' development. (internal and external) the targeted for growth.
economic impact of supplier
spend
Employee complaints lead to Corrective actions developed Work force diversity measured Diverse candidates sought Diverse candidates mentored
EEOC investigations. to address complaints. as percent of work force. and selected for leadership and fast tracked into key
positions. positions.
(Networks)
Employee
High turnover of diverse Input from diverse employee Employee resource groups are Employee resource groups Employee resource groups are
employees. groups is sought. formed and engaged in HGMS are recognized and mentored assigned senior leader
insight. for leadership development. sponsors who actively solicit
input on employee and
business issues.
42

43. Why Does Organizational Effectiveness Matter?
The development process from Dormant to Leadership is
rigorous, but the rewards are huge providing up to twice the
market growth index.
2.00
1.75
Hispanic
Growth Index
Growth
Index
1.25
1.00
Index
0.50
Dormant Awakening Emerging Advanced Leadership
43

44. “Reaching markets with the right voice”….
When the right voice is used, consumers hear,
understand, and feel your brand…. you create an
emotional reaction that connects and attracts consumers
to your brand…. consumers see themselves within your
brand characteristics making them feel understood and
welcomed….
44

45. Multicultural marketing forces you to understand
your brand from consumers’ or customers’ point
of view.
Maximum and sustained success is achieved by
delivering the essence of your brand
broadly/holistically where the targeted consumer
sees and engages a seamless organization that
values their uniqueness.
45

46. BRAND XYZ
In the very end
frame you see a
table setting with
your brand name
as the family/familia
gathers for the
family meal… You
are welcomed as a
member of the
family.
46