ASRW 2010 - Kelly McDonald General Session by Hanley Wood Exhibitions

Diversity & Inclusion in America: The Growing Impact on Work, Organization & Consumers October 11, 2010

Our Culture Has Changedâ&#x20AC;Ś No Longer a Melting Pot, but a Salad Bowl

OLD

NEW

What Does Diversity Look Like?

Diversity Comes in Many Forms •

Gender

•

Religion

•

Age/Generation – Matures (seniors) – Boomers – Gen X – Gen Y

•

Gay/Lesbian

•

Physical abilities

•

Rural / Metro

•

Political beliefs

•

Military / Civilian

Diversity Comes in Many Forms • Racial – White, African-American, Asian, Native American

• Ethnic/Linguistic – Hispanic, Indian, etc.

• Nativity – Foreign-born or U.S. born

• Lifestage – New moms/dads, retirees, college students, empty-nesters

• Lifestyle/Affluence – Working poor, middle class, wealthy

• Core values – Environmentalists, vegetarians, home schoolers

And there is diversity within diversity…

U.S. Asian Composition

Chinese

15%

22%

Filipino Asian Indian Vietnamese

10%

18% Korean

11%

16%

Japanese Other

Source: U.S. Census 2000

Country of Origin for U.S. Hispanics

Mexico 11% 9%

Puerto Rico

4% Cuba

9% 67%

Central America Other

Source: Synovate US Hispanic Report

In the U.S., 1 in 9 are Foreign-Born

Composition of U.S. Workforce

49.83%

50.17%

Men

Women

Understanding Someone Different Means Understanding Their Life Their priorities Their values The experiences that define them

Try This Exercise! • When asked to name how Kennedy died… • Matures & Boomers – Gunshot in Dallas

• Gen X – Plane crash near Martha’s Vineyard

• Gen Y – “Kennedy who?”

Matures, Boomers, Gen X, Gen Y Key emotional drivers and icons

Matures (age 65 and older) • • • • • • • • • • •

Iconic entertainer: HHI: Defining Idea: Style: Work is: Education is: Reward because: Home stuff: Money: Family: Technology:

Frank Sinatra $40,400 Duty Team player an inevitable obligation a dream you’ve earned it Timex, milk and cookies put it away, pay cash traditional nuclear slide rules and rotary phones

Boomers (age 46-64) • • • • • • • • • • •

Iconic entertainer: HHI: Defining Idea: Style: Work is: Education is: Reward because: Home stuff: Money: Family: Technology:

Mick Jagger $59,800 Individuality Self-absorbed an exciting adventure a birthright you deserve it Casio, milk and Oreos buy now, pay later disintegrating calculators, touchtone phones

Generation X (age 33-45) • • • • • • • • • • •

Iconic entertainer: HHI: Defining Idea: Style: Work is: Education is: Reward because: Home stuff: Money: Family: Technology:

Madonna $49,500 Diversity entrepreneur a difficult challenge a way to get there you need it Swatch, milk and Snackwells cautious conservative: save, save latchkey kids spreadsheets and cell phones

Generation Y (age 19-32) • Iconic entertainer: • HHI: • • • • • • • • •

Defining Idea: Style: Work is: Education is: Reward Home stuff: Money: Family: Technology:

Black-Eyed Peas control $160 B in spending Authenticity Worldly a chance to do some good an incredible expense because you can share it iPods, Xbox, Wii, organic earn to spend merged families all access, text messaging

Why Does Diversity Matter? Your Long-Term Survival Depends on It

It’s Business Evolution • Your communities are changing • Your customers are changing • Your workforce is changing

A Quick Peek into the Future

The Two Biggest Diversity Forces: Gen Y Hispanic Market

The Gen Y Market

Business is Drooling over Gen Y • Over 70 million strong – 2nd only to Boomers in size

• $$$ – Projected to be the wealthiest generation in American history

Gen Y is Unique • Racially diverse: 1 in 3 is not White • One in four lives in a single-parent household • Media habits have shaped expectations significantly – “now” means “right now” • More connected than any previous generation – To friends, to news, to the world © 2010 McDonald Marketing ALL RIGHTS RESERVED

Gen Y & Media Influences • More information instantly in their bedrooms than at the library • Digital world provides anonymity & freedom to express their opinions about everything • New gaming systems each Christmas made them adaptable and comfortable with technology • Phone calls gave way to texting • Trained to multi-task, not focus

Opportunities for Service Repair • Provide education and advice about what they need to know to maintain their vehicle • Utilize existing customers to expand – Gen Y is more likely to seek information and referrals from their network of friends than anywhere else

What Gen Y Cares About & Expects • Demonstrated commitment to diversity • Demonstrated social consciousness – Green efforts – Community involvement

• Provide education and advice – “companies should help people”

• Personalized everything – Personalized welcome screens online

Don’t’s • Don’t utilize traditional marketing techniques to reach Gen Y – they’re not there • Don’t try to be “hip” or “cool” – be clear, real, and straightforward. Use easy to understand language • Don’t use high pressure sales tactics – use education and information • Don’t underestimate the power of their social networks: respond to every question or comment, no matter how small

The Hispanic Market is “el futuro” the future

A Country within a Country • 48.7 million Latinos in U.S. • • • • • • • •

Mexico U.S. Colombia Spain Argentina Peru Venezuela Chile

108.7 MM 48.7 MM 44.4 MM 40.4 MM 40.3 MM 28.7 MM 26.0 MM 16.3 MM

Source: Synovate 2010, CIA World Factbook

More Latinos than Canadians in Canada!

Hispanics Are The Fastest Growing Key Ethnic Group U.S. Population Growth Rate (2000 â&#x20AC;&#x201C; 2008)

4.5%

Hispanics Asian-American African-American Total U.S.

3.5% 3.1% 3.5%

2.5% 1.3% 1%

1.5%

0.5%

Source: Synovate 2008

A Population Trend that Can’t Be Ignored… 2010

2020

16%

20% Hispanic

14%

A-A

14% 66%

Asian

5% White

61%

Source: Synovate 2010

Top 10 U.S. Latino Markets by Population - 2010 Market

Latino Pop.

Latino Rank

% Latino

Los Angeles

8,106,800

43.8%

New York

4,588,100

20.6%

Houston

2,063,900

32.1%

Miami

2,033,600

45.0%

Chicago

1,985,100

19.2%

Dallas-Ft. Worth

1,846,900

25.7%

San Francisco

1,570,400

21.8%

Phoenix

1,455,200

27.4%

San Antonio

1,318,000

53.6%

McAllen-Browns

1,161,400

88.1%

Source: Synovate 2010

Fastest-Growing Latino Markets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Top 15 Hispanic DMAâ&#x20AC;&#x2122;s - % Growth Greensboro-High Pt.-Winston Salem, NC Charlotte, NC Ft. Smith, AR Chattanooga, TN Atlanta, GA Wilmington, NC Harrisonburg, VA Florence-Myrtle Beach, SC Sioux City, IA Greenville-Spartanburg-Ashville, SC-NC Huntsville-Decatur, Florence, AL Raleigh-Durham, NC Bowling Green, KY Nashville, TN Sioux Falls (Mitchell), SD

Source: U.S. Census 2000

Hispanic 673.8% 623.9% 621.7% 420.6% 404.9% 393.4% 382.6% 379.1% 368.8% 365.9% 364.8% 354.9% 351.3% 329.6% 316.9%

Non-Hisp. 13.6% 20.8% 24.7% 11.8% 31.9% 29.6% 14.4% 15.9% -0.4% 15.1% 12.7% 21.9% 15.9% 21.1% 6.0%

Growth Extending North & East

MPC # 102127

From U.S.A. Today Source: U.S. Census July 1, 2006 County Estimate (Growth 2000-2006)

Growing in Size, Growing in Affluence â&#x20AC;˘ Latinos now have the greatest purchasing power of any minority â&#x20AC;˘ Average Latino HHI:

$52,725 Source: Claritas 2009

Acculturation, Not Assimilation • Assimilation: – Forfeiting one’s culture and adopting another

• Acculturation: – The acquisition of a second culture while retaining one’s first culture

Latino Acculturation Stratification™ UNACCULTURATED CULTURAL LOYALIST™

CULTURAL EMBRACER™

ACCULTURATED CROSS CULTURER™

CULTURAL INTEGRATOR™

• Foreign Born

• U.S. Born

• Recent arrival

• U.S. is home now

• First generation

• 2nd, 3rd Generation

• Spanish

• Bilingual &

• English Preferred

dependent • Traditional values

• Latino Proud

preferred

Bicultural

• Aspirational

• Professional

• Retro-acculturation

• In touch with roots

• Influential

U.S. Hispanics Acculturation

8% Partially

23% Unacculturated

69% Acculturated

Why Diversity is a Business Opportunity

3 Reasons • Opportunity for incremental business growth – New customers

• New employees – Improved employee retention

• Higher satisfaction and loyalty rates – Internally and externally

Diverse Employees = Better Customer Retention • Toyota dealer reported that affluent Hispanic customer asked to “see a manager” before agreeing to buy expensive Land Cruiser • Sales Manager greeted customer and the deal was done – Verbatim: “I wanted to make sure this was a dealership that had Hispanics in management”

Diversity Efforts Won’t Just Happen You Must Plan for Diversity

Planning Diversity Efforts • The first step is always representation • In a truly diverse workplace, many employees feel challenged and fulfilled in ways that weren’t possible in their grandfather’s workplace: – Rigid toward female advancement – Unaccommodating to disabled workers – Racially stratified – Hostile to openly gay employees

Strategies for Success

Strategy #1: Be Relevant • Identify what people want, then give it to them • Example: Target vs. K-Mart – Relevance: “Style on a budget” • Benefit: value with dignity

Strategy #2: Be Authentic • Get to know your customer, get involved in their life • Bad example: – Bridal image of Indian woman without henna

• Verbatim: – “She looks naked to me”

Strategy #3: Build Your Infrastructure • Diversity efforts require examination of infrastructure • Principal Financial Group – Spanish call center significant difference in length of calls • Angelica theatre in Dallas:

Strategy #4: Know Thy Target • Bad example: Wireless company: – Cinco de Mayo themed ads in Miami

• Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population – Open a new checking account, get AT&T prepaid calling card good for calls to Asia – AT&T customers received free checking at B of A

• Goal: • Actual:

1,500 new accounts 22,000 new accounts

Strategy #5: Train for Cultural Sensitivity • Law firm partner took young associate out to lunch as part of mentoring program. Partner is older white gentleman, associate is African-American. • “Where are your people from?”

• “Talking louder does not make me bilingual”

Strategy #6: Pay Attention Internally • Bank of America found that Asian employees often would not voice opinions in meetings • Employee focus group found that many were embarrassed by their accents • B of A developed and offered accent reduction course for employees

#7: Recognize Different Needs •

CVS Pharmacies: 110,000 employees

•

Stores staffed with diverse employees – Not just racially – Students, senior citizens, working mothers in their 30’s, 40’s

•

Managers taught to understand differing values and motivations

•

Students: desire for pocket money

•

Senior workers: desire for health benefits

•

Working moms: desire for flexible work schedules

Industry Insights from Your Peers

Keenan Auto Body, Inc., Clifton Heights, PA Mike LeVasseur, Vice President, COO • 9 shops in the Philadelphia area • Large Russian and Korean communities • “We use the specialty newspapers for both recruiting and marketing to these communities.” • “We work with an insurance agent who is Korean and she is great about suggesting us to her clients because she knows we can work with her clients in their preferred language.”

Mike LeVasseaur on Recruiting “We hire on skill, of course, but we also look for techs who can speak these languages or are part of these communities.” • “Some of the techs we want to hire don’t have their immigration documents in order. We have an immigration attorney who helps get them on the right path and then when their paperwork is ready, we’re ready to hire them.”

Autobody Masters, Culver City, CA Norman Larson â&#x20AC;&#x153;Having diverse employees, especially those who speak another language, is definitely a plus. Presently, insurance companies inquire about whether we have staff who speak languages other than English to help them communicate with their insureds. We have technicians and estimators who are bilingual and our ability to serve ALL of our customers is critical to the future of our business.â&#x20AC;?

Lehman’s Garage, Minneapolis, MN Darrell Amberson “While diverse customers only comprise about 5% of our business today, it’s 5% we didn’t have even a few years ago. It’s a growing aspect of our business. I think every repair shop needs to figure out how their local community is changing, who their customers and prospects are and figure out how to reach and serve them.”

It’s Worth It

“Don’t be afraid of taking steps toward diversity efforts. It’s extra work, but it results in greater loyalty, with both your employees and your customers.” Mike LeVasseaur

Final Thoughts • Diversity is here and it’s good for business. – Revenue growth and customer retention • It’s not a fad. • Pay attention to the shifting demographics of the community you live and work in – Your labor force – Your customers • The 2010 Census will be published in Q1 and it will be a game-changer. Get your business ready now and you will have a significant competitive edge

Thank You

For more information about multi-cultural consumers, marketing and trends, contact Kelly McDonald at 214-880-1717 or kelly@mcdonaldmarketing.com

ÂŠ2010 McDonald Marketing 2909 Cole Avenue Suite 115 Dallas, TX 75204 214-880-1717, Fax 214-880-7596 www.mcdonaldmarketing.com All rights reserved. No part of this material may be reproduced In any form without permission by the author.