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Archive for 2009
Thursday, July 2nd, 2009
Ralph Lauren and his iconic design sensibilities have become a symbol of classic American fashion and tasteful living. So we are pleased to see his choice of ethnically diverse models from around the globe continuing this year. “All-American” in the good ole Red, White and Blue is certainly showing its true colors in some beautiful shades of brown.
The most well-known of his models is likely Tyson Beckford. Beckford was hired in 1993 to exclusively represent Ralph Lauren’s Polo Sport fragrance and clothing lines. In 2008 we were all introduced to Pierre Woods who was prominently featured in Lauren’s Summer Olympics collection and the preceeding Polo by Ralph Lauren fall campaign. We’ve seen Argentine model Nacho Figueras in ads for Ralph Lauren Black Label and the Polo Black fragrance. And, he was recently named the brand ambassador for all three World of Polo scents. Perhaps the most interesting and heart-warming choice was Mr. Lauren’s decision to feature Somalian refugee, Ubah Hassan, as the face of his Ralph Lauren Collection Spring/Summer 09 Campaign.
A Bronx, N.Y. native, Ralph Lauren is a true American success story and lifestyle brand pioneer. His self-proclaimed “color blindness” is purposeful and evident from the brand’s corporate ranks to its ad campaigns. He has hired and appointed Hispanic and Black executives and board members, instituted diversity initiatives that have impressed even the EEOC, hired human resource managers experienced in handling race-relations issues, and sought advice from ethnic-diversity experts.
His strategies are a good example for any brand trying to increase profit margins through multicultural marketing efforts. Authenticity is key, and it must start from the inside out.
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIn Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: diversity initiatives, ethnic diversity, ethnic models, lifestyle brands, multicultural marketing
Posted in Black Models in Advertising, Effective Multicultural Marketing | Comments Off
Sunday, June 28th, 2009
I’d like to bring to your attention a phenomenon – an African-American woman who owns a major golf resort, a luxury inn & spa and the WNBA’s Mystics.
She is a first lady of sorts: the first certified Black female billionaire (yes, even preceding Oprah); the first  African-American woman to be an owner or partner in three professional sports franchises; and the first African-American woman to own a golf resort. You may not be familiar with her name, but Golf.com recently posted an article about this co-founder of Black Entertainment Television and aspiring golf mogul, Sheila Johnson.
Ms. Johnson is representative of a niche segment of consumers we at Diversity Affluence refer to as Royaltons. Her extensive real estate holdings and portfolio of successful ventures have firmly placed her in the wealthiest stratum of this segment which is a group not even on the radar of most marketers – if their lack of marketing effort toward them is any indicator.
Note her vitals:
· 60 years old
· daughter of a neurosurgeon
· mother of two children
· divorced (after 33 years of marriage)
· accomplished violinist, professional photographer, author, documentary film producer and luxury linens designer
· budding golf enthusiast
· owner of several show horses
· generous philanthropist
That should blow away your notion of the typical African-American consumer. Sheila Johnson may be a first, but she is one of many.
Luxury brands would be wise to follow the adventures and acquisitions of this affluent African-American Royalton (AAR) as well as her peers. In prior years Forbes and Black Enterprise have paid homage to other AARs such as: Renetta McCann, Ann M. Fudge, Marian Wright Edelman, Sharon Sayles Belton, Cathy Hughes and Sylvia Rhone. These black female powerhouses are redefining the landscape of business across industries. Follow them, offer them a seat on your board, invite them to become diversity advisors to your business.
Insanity has been defined as doing the same thing over an over and expecting a different result. In the same way, continuing to target the usual prospects will deliver the usual results.
Do you know where and how to reach the affluent ethnic consumer? Diversity Affluence can help.
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIn Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: affluent african americans, affluent ethnic consumers, powerful black women
Posted in New Prospects for Luxury Marketers | Comments Off
Saturday, June 13th, 2009
Investing in Rare Coins Offers Security in an Unstable Economy
There has been much advice of late regarding non-traditional vehicles as an alternative to traditional retirement funding and investment strategies. From investment pundits like Jim Cramer, to conservative talk show hosts like Glenn Beck, many are touting the undeniable benefit of investing in metals and coins as a balance to other less stable forms of investment.
Most people investing for their future aren’t aware of the potential of rare coins and precious metals to balance a portfolio. And most financial advisers trained in the world of stocks and bonds have little knowledge of investing in rare coins. Finding a true coin expert who is knowledgeable, not just in dealing rare coins but in incorporating them into a viable investment strategy, is key. A collection of rare coins is no longer just a hobby but a strategic and secure investment.
Consider the following:
- The collapse of Indy Mac, Washington Mutual and Lehman Bros caused worldwide concern over our banking system. With that kind of uncertainty many worried investors are converting a portion of their assets into gold.
- Coins are liquid, private and insurable.
- Rare coins have entered a renaissance with new collectors vying for a limited number of rare coins. To paraphrase Mark Twain: “Buy rare coins…they aren’t making any more.”
Kenneth Smaltz, of K. Smaltz Inc., is a preeminent expert and 25-year veteran of this niche industry – and, notably, founder of the first African-American-owned rare coin company in the U.S. He has been featured in More! Rags to  Riches by Gail Liberman and Alan Lavine as well as Crain’s New York, Black Enterprise, Fortune Small Business and The Network Journal’s “Top 40 Under 40” list. Kenneth says his mission is to “change the perception of rare coin collecting from being a hobby to becoming a profitable investment option for investors.” His advice to curious potential investors is to “do your homework, and then find a dealer you can trust. He/she should first listen to your goals and objectives and then put together a program that will work for you. This is the best way for the personal investor and collector to buy coins that will be the most likely to continue to appreciate in value over the years.”
Be aware that rare coins and precious metals are bought and sold differently. They appreciate and depreciate due to varying factors taking place in the market. Wise instruction from an expert can help you minimize your losses and protect your assets in this unstable economy – and maybe even add some unexpected enjoyment to your investing!
For additional information on Kenneth Smaltz visit www.keeperofthecoins.com
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIN Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: investing in coins, investing in gold, investing strategy, investment options, retirement funding, wealthy african americans
Posted in Uncategorized | Comments Off
Thursday, June 11th, 2009
Blacks don’t travel. Blacks don’t like to swim, and so they don’t visit beaches.
Are these statements some of the luggage in your head that needs to be unpacked? Misperceptions such has these are what regularly keep brands and their marketers from the $40 billion in annual revenues this consumer generates for the travel industry. And you may not have even considered the segment of affluent African Americans who frequently indulge in luxury travel.
What is it that you’re missing, you ask? Well, let’s start with the true to life facts and statistics. The fascinating information we’ve gathered from our recent surveys and focus groups with wealthy African Americans will give you valuable insight.
The Definition of Affluence
We ascribe the term affluent to those with annual individual incomes of at least $75,000; though our data demonstrates that AARs (African American RoyaltonsTM) deliver median annual household incomes of $246,000 with many individual incomes exceeding $700,000.
Are You Here for Business or Pleasure?
In an online lifestyle survey Diversity Affluence conducted with UPTOWN Magazine in 2008, a tenth of AARs said they travel on business at least once a week and almost half do so several times a year. When asked how often AARs take a vacation, 67% said several times a year.
We found international travel was common with over 70% of participants owning a passport and having used it in the past year. One third travel internationally at least three times a year, and a tenth every other month.
The purpose of AARs travel ranges from being related to: (business) annual meetings; executive groups; associations; professional organizations; and corporate incentive trips, or (leisure) spa resorts and day spas; weekend getaways; arts, cultural and charity events; charter tours and trips; cruises; anniversary celebrations; destination weddings; honeymoons; holidays; and outdoor activities.
The Lifestyle of Affluence
In both of our recent economic studies, we found the South Atlantic and Middle Atlantic states represented 50% of affluent African American households. Our 2008 focus group participants, representing that same region, revealed luxury travel was #1 on their list of top seven purchasing categories.
These African American RoyaltonsTM had characteristic lifestyle patterns as frequent domestic and international travelers who surround themselves with luxury items and experiences along the way. On the average, 50% purchase luxury items while traveling for business and pleasure. Fine dining and social scenes are of much interest locally and when traveling.
This consumer group is comfortable with treating themselves to the very best, and they research purchases extensively. AARs conduct most of their research online, but word of mouth recommendations significantly influence their choices.
Where Should Your Compass Point?
It is essential for marketers to know where and how to spend their dollars. This is especially true in cost conscious times when every company is scrutinized and accountability takes center stage. The destinations, travel activities, media outlets that attract AARs are distinctive.
Our survey showed leisure travel within the U.S. to be most frequent, as expected, but international destinations like Canada, Europe, the Caribbean and Mexico are also popular. Many African Americans travel where they have familial connections, such as Africa and the Caribbean, and others are attracted to “experience” travel opting to explore exotic locales or visit cultural and historical sites representing their heritage. Since roughly 20% of our survey participants said they run, swim and play tennis regularly, and with the growth of the African-American golf community by thirty per cent in the last decade, destinations offering these activities are quite popular.
Don’t overlook destinations that are all about pampering or those with family appeal. In our findings, AARs nationwide expressed the sentiment that their hard work motivated them to look for ways to reward themselves with exclusive and unique getaways. And remember that many wealthy African Americans families have children to factor into their travel plans. Walt Disney World gets it: they placed a recent ad on BlackNews.com.
Luxury travel resources and those dedicated to the African American community are out there – research them well. Publications, some dedicated to travel such as Odyssey Couleur, and other lifestyle publications with travel features, such as UPTOWN Magazine and The Green Magazine (Golf beyond the links.), offer both print and online advertising and partnership opportunities. For example, the May/June issue of The Green Magazine has an article titled, “Recession Savvy Getaways.”
Have Cash, Will Travel
So which comes first, that AARs aren’t visiting your destination or that you aren’t marketing to them?
Our studies have proven over, and over, that a brand that sends the wrong message – or worse, an offensive one – will immediately lose potential customers and send them to the competition. We believe that any marketer who learns the nuances of this core group of consumers, and the vehicles to properly reach them, will possess the means to unlock their vast buying potential.
For more FREE insight: Sign up to receive our free monthly eNewsletter, the Royaltons Report. Join our LinkedIN Luxury Brand Executives Diversity Marketing Group. Follow us on Twitter. You can also buy our strategic insights papers.
Tags: affluent african americans, African American travel, Luxury Travel, wealthy african americans
Posted in Luxury Travel and Wealthy African Americans, New Prospects for Luxury Marketers | Comments Off
Friday, June 5th, 2009
With spring moving into summer for most of the country, the opportunity to blow off some steam or make a deal outside the boardroom with a golf club is beckoning. And, marketers who are looking for more “green” should be looking on “the green.”
Prominent figures giving credence to this idea are, of course, President Obama and Tiger Woods.  The Associated Press reported this week that the President has had four golf outings in the last five weeks. During Black History Month earlier this year, the PGA of America presented a display at the PGA Historical Center honoring four groundbreaking African-American heroes in the sport. The presence of African Americans in the game is noteworthy.
A Profitable Niche Segment for Golf Industry and Luxury Brands
Statistically, the African-American golf community has grown by thirty per cent in the last decade with interest in the game rapidly outpacing that of Asian American and Hispanic Americans. In fact, the National Golf Foundation reports that a full fifteen per cent of golfers – a stunning 5.5 million people – are minorities, and 2.3 million of them are African American.
Since participation is a function of household income, it stands to reason that gaining the attention of this niche segment of golf enthusiasts will help brands more effectively implement their target marketing strategy of reaching the affluent ethnic consumer – especially, the African-American RoyaltonsTM. Adding 2.3 million people to a list of potential consumers is any marketer’s dream come true.
Participants With Purchasing Power
Based on minority participation reports conducted by the World Golf Foundation and their Golf 20/20 initiative, the industry has been targeting minority groups who are viewed as important to growing interest and participation in the game. African Americans, along with women and Hispanics, are the demographics “with pent up demand” who will help the sport meet its target of having 55 million participants by the year 2020. If Year 2000 census data showed the golf industry having $62 billion in sales – more than the motion picture and sound recording industry and the amusement, gambling and recreation industry – then the currently growing participation of affluent African-American players offers significant purchasing power to be harnessed. That purchasing power has been estimated to become nearly half (45%) of the projected $1.1 trillion of all African Americans by 2012.
With the proportion of African-American female golf participants found to be above average, another potentially fruitful sub-segment is appearing. Many professional black women are taking to the golf course to capture that lucrative business deal often negotiated on the green. In the Spring 2009 issue of Odyssey Couleur, Pam Swensen, CEO of the Florida-based Executive Women’s Golf Association, stated that she is seeing an increase in membership as more African-American women use golf as a business-building tool.
All any luxury marketing executive has to do to potentially gain new prospects is to let go of some assumptions about who the “typical” golfer was in the past and choose to step into the future of the golf market.
Are you a brand marketer or golf industry related business wondering where and how to reach this audience?
Diversity Affluence™ can help you.
For FREE insight:
Sign up to receive our free monthly eNewsletter, the Royaltons Report.
Join our LinkedIN Luxury Brand Executives Diversity Marketing Group.
Follow us on Twitter.
For more information about our consulting & research services visit our website.
Buy our strategic insights papers.
Tags: affluent ethnic consumers, luxury brand marketing, niche marketing, wealthy african americans
Posted in African American Segmentation, Effective Target Marketing for Luxury Brands, New Prospects for Luxury Marketers, ethnic purchasing power | Comments Off
Tuesday, June 2nd, 2009
I ran across a post titled, “Word of mouth still rocks,” on Afrigator (blog.afrigator.com) that made me arrive at a new realization: Bloggers are the new marketers.
Marketing as we’ve known it has taken a dramatic shift because, with the case of bloggers, the consumer is the marketer. Forget the “Big Four” - bloggers are the new power players wielding the mighty power of the mouth…word of mouth, that is – but at lightning speed and almost limitless reach.
So what happens when the consumer becomes a marketer, and the consumer’s “friends” are all of cyberspace? It means the reputation of your product or service – and ultimately your profit margins – can be touted or trashed in mere seconds and that message spread hundreds of times over, to thousands, in mere minutes.
Lester Hein of Afrigator says that “bloggers are changing the way that we access and distribute information meaning that we make decisions faster and according to different rules.” Practically then, I should be able to throw some advertising dollars on a blog and get a huge bang for my buck as that investment will increase exponentially to reach an untold number of prospects.
This example affirms the Diversity Affluence philosophy that smartly reallocating marketing dollars toward affluent ethnic consumers, via new media outlets, with the right call to action, can be more affordable and can deliver prospects instantly. If you can identify, target and attract wealthy minorities, they will help you to survive and thrive – even in this economy.
To gain more insight on affluent ethnic consumers and planning an effective target marketing strategy:
Sign up to receive our free monthly eNewsletter, the Royaltons Report.
Buy our strategic insights papers.
Join our LinkedIN Luxury Brand Executives Diversity Marketing Group
Follow us on Twitter
Tags: affluent ethnic consumers, target marketing strategy, wealthy minorities
Posted in Effective Target Marketing for Luxury Brands | Comments Off
Thursday, May 28th, 2009
Emphatically, I say, “YES!”
I’m sure you’ve heard the American proverb, “He who has the gold makes the rules!”
As we near the end of the second quarter of 2009, marketers would be wise to follow this bit of astute wisdom as they assess their remaining advertising budgets.
Of course, first you’ll need to discover the gold-holding rule-makers: I will tell you they are the affluent ethnic consumers.
Being the savvy marketer that I’m sure you are, it’s likely you’ve read the articles identifying ethnic consumers as viable new prospects. What I’m not seeing much information disseminated about is the affluent segment – not the middle class – but the truly affluent sub-segments within this consumer group. They are a largely ignored and under-served market segment who are patiently awaiting the right marketing approach from you.
The key to your approach is to never make the mistake of marketing to affluent ethnic consumers from your perspective and asking them to come to you. This sub-segment has made their own rules, and they are highly influential in today’s marketplace. Deliberately cater to them by getting on their turf, seeing through their eyes, and speaking their language. You must go to them, and serve them on their terms, in order to build lasting and meaningful relationships. I’m sure their $282 billion in purchasing power is something you want to harness.
Here are a few tips for luxury marketers, or any marketer, to plan a successful target marketing strategy:
• Identify and utilize appropriate ethnicity-based traditional and non-traditional media outlets in your advertising.
• Partner up with membership-based ethnic organizations.
• Consider instituting a Diversity Advisory Board in your company.
• Hire a more diverse workforce.
Now is not the time to cut back marketing expenditures; instead, correctly divert them toward this sub-segment, and I guarantee you will see better ROI in the way of stronger loyalty, broader word-of-mouth, and fresh revenue streams in addition to your general market initiatives.
Sign up to receive our free monthly eNewsletter, the Royaltons Report.
Buy our strategic insights papers.
Join our LinkedIN Luxury Brand Executives Diversity Marketing Group
Follow us on Twitter
Tags: affluent ethnic consumers, Black America Web, diversity luxury marketing, target marketing strategy
Posted in Affluent African American Marketing Research, African American Segmentation, Banking and Marketing to Affluent African Americans, New Prospects for Luxury Marketers | Comments Off
Sunday, May 24th, 2009
According to the US Census Bureau in 2007 there were 40.7 million Blacks in America of the total population of 301.6 million. The black population exceeded 500,000 in 20 states. Blacks were the largest minority group in 24 states, compared with 20 states in which Hispanics were the largest minority group.
By the 1990s middle class Black America was well established as a separate community and was no longer forced to live with lower income Blacks. Communities such as South Dekalb (Atlanta), Prince George’s County (DC/MD), and Baldwin Hills (Los Angeles) sprung up across the country and are still growing today.
Southeast DeKalb County, GA is Americas second largest black middle class community.
As of the 2000 Census, the Dallas Fort Worth metro Black population was 729,772 making it the ninth largest Black metro in the nation. Since then the area has gained more than 150,000 additional African Americans, bringing the Black population to 881,930 in 2007.
Black Middle-Class Dallas
Dallas has a large and growing Black middle-class. This is evident by the number of Black families now enjoying home ownership in the area. Much of the Black population is educated and highly skilled. Although Dallas is not known for its Black entrepreneurship there are several thousand Black owned business and hundreds of top African American executives.
The results of this Growing Black elite can be seen in the majority Black southern Dallas suburbs as well as other areas around the Metroplex. They are building beautiful landscaped developments and demanding the best education for their children. Blacks in Dallas are developing a black Mecca of their own and are soon to change the African American community here forever.
Baltimore has always had a significant African American population. Even though Maryland was a slave state, Baltimore had a larger Black free population than that of the slaves. Baltimores proximity to Washington DC puts it in the same market commercially. It also makes the combined Black population the second largest in the US after New York City with 2.2 million combined. The city itself is steep in Black culture and home to three Historically Black Schools: Morgan State University, Coppin State University and Sojourner Douglas. According to the Census Bureau - 2007 American Community Survey, the income for in the past 12 months the median household income was calculated at $63,699 (vs. $34,169 for Black USA overall).
Tags: black america, black cities and states, black dallas, black demographics, black middle class, black population, cnn black in america, wealthy african americans
Posted in Black Population/Demographics | Comments Off
Sunday, April 26th, 2009
Interesting that of all the models available to MSNBC’s ad agency, they chose a black male model to represent the tag line “we are catalysts for your brand” and “MSNBC Change Makers.” This is fantastic to see.
Tags: Diversity and the media
Posted in Black Models in Advertising | Comments Off
Monday, April 20th, 2009
 This is a reprint of a 1996 article featured in the Atlanta Business Chronicle on how one brand seized a targeted marketing opportunity. I felt that it was important reprint in order to express to marketers what is possible. It’s a brilliant example of how they acted on the opportunity, tracked the results and used every marketing platform from PR to event marketing to execute the plan. And this dates back to 1996. Just imagine the increased significance of the opportunity today.
NationsBank Corp. is pushing into Atlanta with an unusual strategy: The bank has singled out wealthy black professionals as its next round of target customers.
Many banks have pursued niches — such as professional athletes — in private banking. “But I just don’t know of anyone else targeting African-Americans that way,” said a spokesperson with the American Bankers Association in Washington.
NationsBank honed in on the group’s lucrative demographics about a year ago and started looking for ways to hook its members, said Shedrick L. Barber, the national coordinator for a unit the bank calls Professional African-American Market Development.
The market is huge. “We found that this group has an annual purchasing power of $427 billion, and it’s growing,” Barber said. There are more than 1 million black households in which one member makes at least $50,000 a year, and what matters even more to NationsBank, 75 percent of those are in the Southeast, according to its research.
“We found a new customer in our back yard,” he said.
His unit was designed to lure customers to NationsBank through what is increasingly known as “relationship banking.” Barber gathers a team of bankers in each market to work with prospective customers on their specific needs, pulling expertise from different parts of the company’s operations.
But the bank’s strategy has been to work from the top down, rather than starting one-on-one. Barber has gone after deals with larger groups to spread his message more quickly. In fact, one of the unit’s first loans brought the headquarters of Omega Psi Phi, a national black fraternity, to DeKalb County from Washington, D.C.
First Southern Bank, a minority-owned community bank based in Lithonia, actually heard about the deal first. But the $2.5 million loan needed by Omega Psi Phi exceeded the $46 million-asset bank’s legal lending limit, said First Southern CEO James E. Young. So the two banks wound up working together, closing the deal with the fraternity last December.
Since then, NationsBank has concentrated its efforts elsewhere, although it has found Atlanta customers at professional conventions in other cities, Barber said. “Most people assume we’ve been marketing heavily in Atlanta, but we bypassed it during the Olympics. Now, we’re coming back. If not in the fourth quarter, in the first quarter [1997].”
The unit could provide formidable competition. It has booked $148 million in 37 deals through September, and Barber said he has almost $500 million in business in his pipeline, including mortgage loans, franchise financing, securities and other products.
He has found much of that business by marketing the unit at national meetings of black professional associations — often held in Atlanta. In April, NationsBank was the title sponsor of the first Black Enterprise Magazine Entrepreneurs Conference, attended by more than 500 black business owners. The day Barber sent a team of executives into the crowd, he received 84 voice mail messages, he said.
And Barber has reached marketing agreements with several other groups, including the Black Automobile Dealers Association.
The bank has also worked out deals with groups to exchange services for access to potential customers. Its alliance with Meharry Medical College could lure business from alumni of the Nashville, Tenn., medical school — a top producer of black doctors. NationsBank’s private banking unit has offered workshops to alumni in financial planning, and the bank is developing an affinity credit card.
“The people I’m talking to could get their deals done anywhere,” Barber said. But they usually don’t tend to their finances as they should unless a banker seeks them out, he found from observing his and his wife’s friends. The Barbers are black professionals who live in Charlotte, N.C., and Dr. Mary Lindsay-Barber is a pediatrician.
Another part of his job is pure public relations, Shedrick Barber said. “We find we have a lot to overcome in terms of the bank’s reputation for serving African-Americans.” Barber worked in NationsBank’s community investment division, which focuses on low-income lending, before shifting market segments last year. He defends the bank’s new effort as an aggressive way to seek out customers who often are unfamiliar with NationsBank’s products, and he insists that it will not deter community reinvestment work.
Minority-owned banks, such as First Southern, acknowledge their most profitable customers fit the description now wanted by NationsBank. “We recognize that a 200-pound gorilla can sit anywhere he wants,” said First Southern’s Young
Tags: affluent ethnic consumers, Affluent Prospects, African American Consumer Research, African American Demographics, African American Purchasing Power, banking industry and diversity marketing, Black Professionals, diversity case studies, diversity research, luxury marketing during a recession, Marketing to affluent African Americans, retail marketing, wealthy african americans, wealthy black professionals, wealthy blacks, wealthy minorities
Posted in Banking and Marketing to Affluent African Americans | Comments Off
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