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Analyzing Marketing Research On Three Minority Groups Research Paper

Marketing Research on Three Minority Groups Minority Research Paper

The following report is purposed on undertaking marketing research and gaining knowledge regarding different consumer markets. In particular, the report provides information about the size, location, purchasing power, and the market potential for the three largest minority target markets in the United States. These target markets include African-Americans, Hispanic-Americans and Asian-Americans. In addition, the report will expound and give detained analysis information of business potential for each minority target market.

AFRICAN-American

Total numbers in the U.S.

million (United States Census Bureau)

Percent of the total U.S. population

% (Centers for Disease Control and Prevention)

Rate of growth

The U.S. Census Bureau forecasts that by the year 2060 there will be approximately 74.5 million African-Americans comprising those of more than one race in the United States, a figure that will constitute about 17.9% of the total U.S. population (United States Census Bureau)

Average household size

An average of 2.58 people per household (Baker, 2013).

Average age

The average age is about 32 years and statistics indicate that roughly 47% of African-Americans are below the age of 35 (Baker, 2013).

Statistics indicate that between the years 2000 and 2009, there was a significant rise and increase in the number of African-Americans who attended colleges and universities and earned degrees. In the present, this figure has grown to 45% of the men and 54% of the females (Baker, 2013)

Average or median income levels

The average income of African-Americans across the nation is estimated to be $47,290 (Baker, 2013).

Geographic location(s) -- metro, states, etc.

Atlanta, Washington D.C., Houston, Dallas, Miami/Ft. Lauderdale, Raleigh, Baltimore, Memphis, Jackson, Mississippi and Columbia, South Carolina (Nielsen, 2013).

Brands that have higher than average purchase for each group

Lexus, General Motors, Google, Fidelity, Slim Fast, UPS, Tide, Pampers, Jell-O, Doritos, Dawn, Oreos, Ragu, Campbell Soups, Yoplait, Dentyne, Charmin, Bounty, Betty Crocker, Walmart, the Gap, Lowe's, Macy's and Levi's (Market Wired, 2012).

Identify specific products, which have above average usage for each group

African-Americans have immense buying power for several shopping preferences, for the most part, for household, travel, health and beauty, smart phones and child associated items (Baker, 2013).

Best media to use to target each group

Best media to use is by avoiding a mass-market approach and embracing a more targeted strategy using niche media, including African-American newspapers, magazines and radio (Alderton, 2011).

ASIAN-American

Total numbers in the U.S.

The prevailing population of this minority group is approximately 19 million (Nielsen, 2013).

Percent of the total U.S. population

Roughly 6% of the total U.S. population (Nielsen, 2013).

Rate of growth

This minority group has a population growth rate of approximately 58% between the years 2000 and 2013 (Nielsen, 2013).

Average household size

The family unit of Asian-Americans has a greater than average household and every so often has manifold cohorts subsisting together (Nielsen, 2013).

Average age

In 2010, the average age of Asian-Americans in the United States was 35.4 years (U.S. Census Bureau, 2012)

The percentage of single-race Asians 25 years and older who had a bachelor's degree or higher level of education paralleled with twenty-eight percent for all Americans of the ages 25 years and older (U.S. Census Bureau, 2012)

Average or median income levels

The average income for households in this minority target market continues to increase and signifies the uppermost of all multicultural groups. Asian-American households averagely make more than overall U.S. households and are more probable to have earnings of $100,000 or even higher (Nielsen, 2013).

Geographic location(s) -- metro, states, etc.

Asian-American growth is increasing further than the customary hubs of the West Coast and New York City; nevertheless, the general population continues to assemble in town, metropolitan areas (Nielsen, 2013).

Brands that have higher than average purchase for each group

Asian-Americans prefer Costco to Wal-Mart, brand names over generics and are the front-runners in the nation as a demographic in online buying (Do, 2013).

Identify specific products, which have above average usage for each group

Online and e-commerce products. 77% of Asian-Americans made internet buys compared to 61% of overall population (Nielsen, 2013).

Best media to use to target each group

The Asian-American target market are digital innovators and forerunners and adopt technology quicker compared to any other minority group. Having greater usage rates for smartphones, the greatest online video consumers, and internet connectivity, this minority group is altering the manner in which they watch, pay attention, and interrelate (Nielsen, 2013).

HISPANIC-American

Total numbers in the U.S.

The population number of Hispanic-Americans is over 52 million individuals (Nielsen, 2012).

Percent...

population
Approximately 17%(U.S. Census Bureau, 2012)

Rate of growth

This minority target group is projected to grow about 167% in the next 40 years to 2050, in comparison to 42% of the overall population (Nielsen, 2012).

Average household size

The average number of people in the household is 3.87 people per Hispanic family, while the national average for all families is 3.19 people (Population Research Institute, 2010).

Average age

The average age of this minority group is 28 years, which is relatively 10 years younger compared to the overall market average age of 37 years (Nielsen, 2012).

14% in 2013 (Infoplease, 2016).

Average or median income levels

The average income in 2013 was $40,963 (Infoplease, 2016).

Geographic location(s) -- metro, states, etc.

Hispanic-Americans have great concentrations in the states of Texas (38%), California (38%), Florida (22%), Colorado (21%), Nevada (27%), and New Mexico (46%) (Nielsen, 2013).

Brands that have higher than average purchase for each group

Brands such as Procter & Gamble, General Mills, Unilever, Coca Cola, and Walmart have made the Hispanic-American market a domineering for growth (Nielsen, 2012).

Identify specific products which have above average usage for each group

Electronics, groceries and clothing (Bickle, 2013).

Best media to use to target each group

Traditional Media Sources (Bickle, 2013).

Part 2 - Analysis of Business Potential for Each Group

African-American

African-Americans constitute just about 13% of the total population in the United States and is ranked the second largest minority target market in the nation. In particular, the average age is about 32 years and statistics indicate that roughly 47% of African-Americans are below the age of 35 (Baker, 2013). In accordance to Baker (2013), mainstream advertisers have underestimated the purchasing power and most of all the potential of the minority target market. The African-American community's potential and spending power is considerably underestimated and underrepresented. In particular, this minority target market is an economic and commercial force of importance. This is owing to the projections and forecasts undertaken, which indicate that African-Americans will have a significant purchasing power that is worth 1.1 billion dollars by the end of 2015 (Baker, 2013).

In addition, it is imperative to note that the growth of the population of this minority target market surpasses the rest of the populaces by about 30%. In addition, with respect to demographics, African-Americans are significantly younger, have higher educational attainments, and also have higher incomes than is believed (Baker, 2013). Statistics indicate that between the years 2000 and 2009, there was a significant rise and increase in the number of African-Americans who attended colleges and universities and attained degrees. At present, this figure has grown to 45% of the men and 54% of the females. In addition, households earning a yearly income of $75,000 and above rose by more than sixty percent. This rate of growth was faster in comparison to the rest of the target populaces in the United States. The average income of African-Americans across the nation is estimated to be $47,290 (Baker, 2013).

In terms of business potential, the implication is that African-Americans have remarkable purchasing power. In particular, the have immense buying power for several shopping preferences, for the most part, for household, travel, health and beauty, smart phones and child associated items. According to Baker, this is a positive perspective and standpoint for the reason that it is indicative that the African-American target market as a minority group has the business potential to function as a financial asset to the nation and its economic recovery, growth and development (Baker, 2013).

Asian-American

According to Nielsen (2013), Asian-Americans are wealthy, well-educated, geographically concerted, and technologically skilled and aware. Statistics indicate that this minority target group has a remarkable business potential as its purchasing power continues to rise and predicted to reach the 1 trillion-dollar mark by 2017. Exploiting and utilizing their culture, academic accomplishment, flexibility, and increasing spending influence, Asian-American consumers are an influential financial and economic force that can characterize substantial growth prospects for the state's commerce (Nielsen, 2013). The prevailing population of this minority group is approximately 19 million. This figure accounts for a population growth rate of approximately 58% between the years 2000 and 2013. This growth is largely due to immigration. The average income for households in this minority target market continues to increase and signifies the uppermost of all multicultural groups. Asian-American households average more than overall U.S. households and are more probable to have earnings of $100,000 or even higher (Nielsen, 2013).

The increase in population growth of Asian-Americans continues to amass in metropolitan and urbanite expanses. In the past 10 years, numerous counties across more than 10 states in the nation have seen a population increase of more than 200% (Nielsen, 2013), with all states in the nation apart from Hawaii seeing an increase of more than 33% population growth. The family unit of Asian-Americans has a greater than average household…

Sources used in this document:
Bibliography/Citations

Alderton, M. (2011). Marketing to African-American Consumers. Business.com. Retrieved 22 January, 2016 from:http://www.business.com/sales-and-marketing/marketing-to-african-american-consumers/

Baker, C. D. (2013). African-American's Buying Power Projected to be $1.1 Trillion By 2015. Black Enterprise. Retrieved 22 January, 2016 from: http://www.blackenterprise.com/small-business/african-american-buying-power-projected-trillions/

Bickle, M. (2013). Seeking To Reach Hispanic Shoppers? Traditional Media Influences This Consumer Group's Purchase Decisions. Forbes. Retrieved 22 January, 2016 from:http://www.forbes.com/sites/prospernow/2013/06/28/seeking-to-reach-hispanic-shoppers-traditional-media-influences-this-consumer-groups-purchase-decisions/#659cc2d45016

Do, A. (2013). Asian-Americans are the most prolific spenders in U.S., survey shows. Los Angeles Times. Retrieved 22 January, 2016 from:http://www.latimes.com/local/lanow/la-me-ln-asian-american-prolific-spenders-20131205-story.html
Infoplease. (2016). Hispanic-Americans By the Numbers. Retrieved 22 January, 2016 from: http://www.infoplease.com/spot/hhmcensus1.html
Market Wired. (2012). African-Americans Show More 'Love' to Brands Than Caucasians. Retrieved 22 January, 2016 from:http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm
Nielsen. (2012). State of the Hispanic Consumer: The Hispanic Market Imperative. Retrieved 22 January, 2016 from: http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2012-Reports/State-of-the-Hispanic-Consumer.pdf
Nielsen. (2013). The Asian-American Consumer 2013 Report. Retrieved 22 January, 2016 from: http://www.aaja.org/wp-content/uploads/2013/12/Nielsen-Asian-American-Consumer-Report-2013.pdf
Population Research Institute. (2010). Hispanic Family Size in USA Shrinking. Retrieved 22 January, 2016 from:https://www.pop.org/content/hispanic-family-size-usa-shrinking
U.S. Census Bureau. (2012). Asian/Pacific American Heritage Month: May 2012. Retrieved 22 January, 2016 from:https://www.census.gov/newsroom/releases/archives/facts_for_features_special_editions/cb12-ff09.html
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