Hispanics, as the largest minority in America, have tremendous buying power.  More than a trillion dollars, actually. Many Hispanics love the opportunities that are available in the United States, and embrace a new life they can create. However, marketers must remember that Hispanics also share a sense of pride in their heritage and culture.

Associated Press recently wrote about the rapidly emerging market of Hispanics, which was the focus of one of our White Papers. See how both pieces discuss this expanding group’s attempts to create a new identity as Hispanic-Americans and how marketers struggle with understanding how to sell to them.

Have we gone too far?

A 1978 Virginia Slims magazine ad reads, “Back then, every man gave his wife at least one day a week out of the house.” The ad depicts two very different women: a black and white photograph shows a woman in an apron hanging laundry outside while the other image illustrates a beautifully modern woman showing a little skin in a colorful, flowing dress. The ad continues, “You’ve come a long way, baby.” With feministic undertones, the ad is just one example of a campaign dedicated to the independence, glamour and liberation of women – worlds away from cooking, cleaning and taking care of the children. It illustrates a woman who is free, happy, and most importantly, unattached.

The Virginia Slims campaign, although not the first of its kind, helped pave the way for a critical change in the relationship between men and women, especially in marketing. The past few decades have been a transfer of women gaining authority in the marketplace. Today, role reversal is extremely common in marketing and advertising with many brands opening the door to women in a man’s world of sex, power and money. The surprising part is that women are coming out on top.

It’s no secret that women are powerful shoppers. Did you know they are responsible for 80 percent of all household purchasing decisions? With such a striking statistic, it’s not surprising that a great focus is directed toward women when it comes to marketing, advertising and the media.

How many ads can you think of that directly target men?  Of those,  do you think the modern man is fairly represented? It has been said that men are portrayed as indifferent, egocentric and self-indulgent. We discuss the role of men in the marketplace (or lack thereof) extensively in our Missing Males White Paper. The research here summarizes the idea that marketers and the media depict a man’s role in the household either negatively or not at all.

Today, not only do we notice the “missing male,” but we see a complete role reversal that changes the male / female dynamic even further.  Women are now portrayed as individuals with male characteristics – powerful, dominant and influential – while men are unexpectedly feminine, slave-like or illustrated as sex objects.

A current example of a brand taking advantage of role reversal is Xanté liqueur. With a racy slogan, “Unimaginable Pleasure – Oral Delight from the Country of Europe,” Xanté specifically targets women with sexually charged copywriting and controversial ads. The liqueur itself is described using words like affection, touch, penetration, and ménage a trios, but one phrase sticks out like a sore thumb: “The Golden Age of Women.” It’s ironic, yet playful and fun. The ads are the real catch with women leading sports in which you’d typically only see men participating – hunting, rowing, sledding, and cricket. In each ad, the men are very robotic, playing the role of dogs, servants and even objects.

Xante advertisement

It’s obvious that the women are in charge. The men are just their toys.

Take a look at this recent Marc Jacobs ad. I’ve taken the liberty of transforming the word “bimbo” into “HIMbo” when discussing the role reversal of men and women in marketing and advertising. This himbo fits the mold:

"himbo"

There’s been a 30 – 40 year transfer in how men and women are portrayed. It’s as if they swapped roles completely. Has it gone too far? I’m all for independent and strong women – both in the workplace and at home – and respect the necessary and long-awaited advances made in decades past.

But have the tables turned too drastically, where men lose credibility?

Do the media know they have created a true battle of the sexes? Maybe, but women have officially taken off their aprons to show what they’re really capable of: conquering anything a man can do. From leadership roles and strong opinions to successful careers and sports, women have come a long way (baby).

Gen-Y: The Crystal Ball

On MediaPost Publications’ “Marketing Daily” Scott Galloway, New York University Stern clinical associate professor of marketing, calls Gen-Yers a ‘crystal ball’ when it comes to predicting a brand’s long-term success. Some names that top the list? Chanel, Cartier and, not surprisingly, BMW and Audi. So how do we in the home building industry reach this massive audience? In the retail realm, believe it or not, the physical retail store and print publications still hold sway. Read more at:  http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=127529

Gen-Y to Bring Another Boom?

According to Consumer Specialist Ric Romero, If there is going to be another housing boom it may be because of Generation Y. Those are the people born between 1982 and 1995 and there are about 75 million of them…far outnumbering the first “Baby Boomers.”  To quote Steve Ruffener, President of KB Homes, “They’re really focused on not having rules and not being told how they can live.”

http://abclocal.go.com/kabc/story?section=news/consumer&id=7425318

Marketing home products through olfactories

What do you think of when you smell chocolate chip cookies baking in the oven? What about freshly cut roses?

We all link memories, places or people to certain scents, and they’re different for everyone. Not just in perfumes and colognes, smells occur everywhere. They’re in subways, schools, restaurants and stores. Although it’s no secret that marketers use the five senses to increase their bottom line, scent’s role has changed, showing up in many unexpected places including jewelry, hotels and even bubbles.

It used to be that fragrances had their place in beautiful glass bottles atop a striking vanity. Think about Chanel No. 5, which was initially introduced in 1921. Called “the world’s most legendary fragrance,” most women today wear it because their mothers and grandmothers chose it as their perfume of choice. Many don’t realize that the way you smell is very much another form of expression much like clothing or art. It has been said that you can tell a lot by what kind of music a person listens to or with whom they spend their time. This holds true for scent, too.

The idea that something as simple as perfume can contribute to an identity translates into more than just people. Smells are memorable. They create adventure, change experiences, and express creativity. With that said, many companies are incorporating smell into their products to create experiences that keep customers coming back for more.

Scent in places: Retail locations are increasingly promoting aromas just as much as the products or apparel they sell. Abercrombie & Fitch is an example: If you’ve been to any mall housing one of these teen clothing stores, you can smell it from a mile away. Not only does it promote the company’s signature fragrances, but customers leave with a familiar and tantalizing scent. Anthropologie and West Elm also advertise their collection of scents by burning candles that may be purchased in the store.

Hotels are also catching on, including W Hotel, Westin, and At Four Points by Sheraton, infusing their lobbies with scents intended to make guests feel more comfortable. For example, Sheraton’s Welcoming Warmth aroma was designed “to make guests feel like they belong the moment they enter the hotel.” And because olfactory senses are closely tied to memory, guests will likely recognize a signature scent and immediately recall said hotel.

W Hotel candle

It’s no wonder that scent has become an important role in creating a brand.

Scent in product: Scent is an essential factor when it comes to personal hygiene products.  Taking this success to the next level are some manufacturers who hide scents in unexpected places.

Erica Weiner is doing just that with her Vinaigrette Perfume Locket Necklace. The beautifully crafted locket necklace looks like an antique, but there’s a catch. Each locket is filled with one of two D.S. & Durga oils. Created to mimic 18^th to 19^th century solutions to unpleasant city smells, these necklaces are one of a kind.

In a similar way, Francis Kurkdjian took a childhood activity and transformed it into something more. With his 7-year-old niece as inspiration, Kurkdjian fused three different scents – cold mint, cut grass, and pear – into bubbles. His goal: to pique children’s interest in their sense of smell.

Research has shown that the right smell can definitely bring in the cash. Many are starting to catch on, and scents are being used as sales tools in many retail operations around the world, from magazines to coffee shops. Whether the goal is to set the mood or to drive customers to buy a specific product, scents will create memorable experiences while infusing businesses with the sweet smell of success.

Sources:
http://www.foodarts.com/Foodarts/FA_Feature/0,4041,129,00.html
http://www.trendcentral.com/WebApps/App/SnapShots/Article.aspx?ArticleId=7860

Recently, K&A created a “Marketing to Hispanic Americans White Paper” in order to define the group that is continuing to grow in influence in the home and commercial building products sector. Our goals were to get to know this audience – not just demographically – but to understand their perceptions and behaviors to make home products’ marketing programs more relevant and efficient, and thereby, more successful, for our client partners.

As our team embarked upon this research, the question “are Hispanic Americans a race or ethnic group” frequently arose. After much discussion, we settled on the latter, and further defined this group:

“ . . .  with origins in Latin America and Spain and for which are often divided into sub-groups including Mexican Americans, Puerto Rican Americans, Cuban Americans, Dominican Americans, Central Americans and South Americans, among others.”

Recently, I came across an article in MediaPost (one of my favorite publications for research information), written by Juan Tornoe who authors the blog “Hispanic Trending,” which spoke to our agency debate about the identity of Hispanic Americans.

“The Latino community is nothing short of a genetic kaleidoscope,” he said in the article “What Race Are Hispanics?”

He further pointed out that even the U.S. Census Bureau states “Hispanics can be of any race, any ancestry, any country of origin.” And that the most important thing to remember is that by identifying Hispanic Americans as an ethnic group doesn’t pigeonhole them as a particular race, or set of standards that they can’t move away from, yet “defines a particular outlook in life, a state of mind, a way to interpret and respond to outside situations and stimuli.”

The bottom line is that Hispanic Americans are a diverse ethnic group of individuals with similar heritages, state of minds and outlooks on life. Despite the race versus ethnic group debate, they continue to be a vital component of the success equation for home and building products manufacturers and marketers.

For more information about Marketing to Hispanic Americans, e-mail Steve Kleber at sk@kleberandassociates.com or tweet him at @stevekleber for a complimentary, advance copy. Click here to view Tornoe’s complete MediaPost article “What Race Are Hispanics?”

The major forces that shape our societies—from politics and environmental developments to financial meltdowns—have a major impact on changes in consumer behavior. First, here’s a brief definition…

Macro trends are the broad forces of change that create the future context of today’s world. They represent the sudden appearance and ongoing progress of emerging global phenomena such as market motivators and consumer values. Understanding and utilizing macro trends—and determining their significance to current challenges—is deemed a prerequisite for excelling in business by allowing us to strategically anticipate and adapt to change, while alerting us to the threats and opportunities in the future home and commercial building products business environment.

So what are the most important macro trends for the next 12-18 months? The current top 12 global macro trends, which look beyond the current recession, as defined by Swiss business school IMD and as reported by the Trend Watching Report include:

1.  Economic Power Shifting
The focus of economic power is shifting to Asia and BRIC in terms of investment and output, away from the outdated “Triad” markets of the 1980s and 1990s. The question is how independent the BRIC markets will be in driving global growth and what the role of the Triad will be.

2. Shifting Market Landscape
While developed countries will remain the largest consumer and industrial markets, the rise of a massive global “middle class” in rapidly developing economies (RDEs) will shift the demand landscape radically. The competition for these markets will be intense, but which competitors will succeed?

3. Changing Geopolitical and Security Landscape
Globalization is driving new dimensions of power beyond military might including economics, resources and technology. However, the new global landscape is not stable: risks and nationalism are rising.

4. Fracturing Global Social Fabric
Globally, the population is becoming older, more urban, more Asian and more mobile. At the same time, traditional social structures are fragmenting, shifting notions of personal identity. With demands for greater inclusion by previously isolated segments of society, divides—and associated tensions—are increasing.

5. Growing Stakeholder Demands on Business
More stakeholders—public and private—are actively demanding transparency and accountability from business. Corporations are seen as part of society’s problems. Can they also become critical contributors to required solutions?

6. Changing Consumer Landscape
In more diverse and mobile societies and economies, new consumer groups are emerging. Consumer segmentation now requires new lenses, as new sources of similarity and difference emerge. Consumers increasingly demand more involvement in and customization of consumption experiences.

7. Changing Industry Landscape
Business models must become more flexible. Power is shifting along the value chain and the competition to create and capture value—and profits—is intensifying. The emergence of BRIC multinationals means more intense competition. Flexibility and innovation are critical to avoid being “stuck in the middle.”

8. Changing Nature of Capital
Global financial flows are accelerating, with Asia increasingly funding the deficit spending of the U.S., partly, Europe, leading to global systemic risks now being realized as the current credit crunch redefines the global financial system. New power brokers are emerging, reshaping market dynamics and potentially raising tensions.

9. Changing Labor Landscape
A raging global war for talent for both skilled and “low cost” jobs is increasing. Asia is increasingly important for all types of skills. Partnering and outsourcing is on the rise within and across borders.

10. Growing Pressure on Natural Resources
Basic resources are under threat, including water, energy, food and habitats/climate. Consumption of critical resources is outpacing the rate that the planet can sustain. Public and institutional activism is rising, demanding action.

11. Changing Technology Landscape
A global technology revolution is gaining pace, crossing national borders and scientific disciplines. New technologies, including biotechnology and nanotechnology, will reshape industries and our daily lives.

12.  Changing Economics of Information and Knowledge
Exploding connectivity and channels for information are making knowledge creation a global imperative. Networking is critical! Gaining an advantage in and protecting knowledge is difficult to achieve—and even more difficult to sustain.

Stay tuned for more information about green marketplace trends that look at some of the newer opportunities in the next 12-18 months now that ‘eco awareness’ has been embraced by sizable parts of the global middle classes.

Our diverse population makes the ‘average American’ increasingly harder to define.  Witnessing this shift, marketers have turned away from mass marketing in favor of niche marketing, which consists of a tailored approach to smaller, more targeted markets and attitudinal groups. For those who market home products, we must understand the desires of our audiences and determine how media segmentation can be used to address different groups.

“Non-Traditional” Households are Taking a Leading Position
The growth of “non-traditional” households requires an appreciation for attitudinal market segmentation that addresses each group’s unique preferences and buying patterns.

Single-sex households and Gayborhoods

• Single-sex relationships, gay communities or gayborhoods, and families with single-sex parents comprise a group with great influence in urban renewal.
• This group’s buying power is expected to hit $2 trillion by the year 2012.
• When reaching out to gay consumers, focus on their enhanced affluence and interest in style, brands, luxury and travel.
• Speak to their individual identity, which is oftentimes ignored by mainstream media and marketing.

Mounting Hispanic Population

• The Hispanic population includes 46 million people with more than $700 billion in spending power.
• Industry insiders say U.S. builders are addressing this niche with home designs that recognize Hispanics’ inclination to house multi-generational families living under one roof.  Recent trends in Hispanic home building include greater numbers of smaller bedrooms, convertible garages, generous parking space and easy indoor-outdoor access.
• Savvy home industry marketers can capitalize on this trend by having a clear understanding of the audience and ensuring messages are culturally relevant.

  (See the link below for our white paper on marketing home products to Hispanic Americans.)

Ruppies . . . Shattering Post-Retirement Stereotypes

• Ruppies, or “retired urban professionals” are 40 million strong, with an estimated $2 trillion in annual spending power.
• Ruppies seek high-density, bustling communities in large cities that make them feel young.
• There is emphasis on accessibility and a continued importance on increased informal space in the home including open space layouts and flexible floor plans.
• Consider media segmentation beyond traditional media outlets. Recent studies reveal that Ruppies are attracted to social media and networking sites.

Young Professionals

• Generation X and Generation Y represent the fastest growing homebuyer segment in the country.
• Renovations are popular among younger generations who see an opportunity to personalize their homes and make a statement.
• When marketing to young professionals, know that they are price-conscious, skeptical and sophisticated in their purchasing decisions.
• Use the Internet and online marketing tactics to target young professionals.

What’s Next for the Housing Market?
Successful marketers are making the shift from broad, generic messaging to pointed, targeted communications.

The pressure of a down economy causes a crucial need to connect with each consumer emotionally. Offer them solutions, avoid stereotyping and look to a personalized marketing approach that serves the needs and desires of each cohort.

In the home and building channel, it is critical to remember that the home represents who we are and how we define ourselves.

K&A’s Marketing Home Products to Hispanic Americans White Paper can be seen here.

Think about your marketing campaigns and customer relationship programs. Are loyalty or reward programs in place?

According to a new white paper by the loyalty marketing consultancy, Colloquy, titled “After the Meltdown: Consumer Attitudes and Perceptions About Loyalty Programs in the Post-Recession Economy,” as reported by MediaPost, U.S. consumer participation in rewards programs is on the rise across all demographic segments.

The white paper examined trends in six consumer segments:

• General Population (representing a statistically distributed sample of the U.S. overall)
• Affluent (heads of household with annual incomes of $125,000 or greater)
• Millennials (respondents 18 – 25 years of age)
• Seniors (respondents 60 years or older)
• Core Women (female respondents age 25 – 49 with an annual income between $50,000 and $125,000)
• Emerging Hispanic (respondents age 21 or older of Hispanic origin with an annual household income of $40,000 or less)

Most notable were “Millennial” participants who demonstrated a 32 percent increase since 2007. “Core Women” increased 29 percent and the “General Population” was up 19 percent in the same time period.

In relation to Millennials, 27 percent are actively seeking to enroll in new programs to help expand their budgets. They are also far more likely than any other demographic to enjoy engaging with programs through new media channels than the general population. More than 55 percent appreciate communicating through social networking sites and 52 percent enjoy communication via cell phone or text message.

According to the white paper’s co-author, Kelly Hlavinka, as reported by MediaPost,

“Millennials represent a golden opportunity in a time of economic darkness for loyalty marketers. This demographic is receptive to the wish-list of loyalty initiatives — eager to join programs, eager to build relationships with their favorite brands and eager to engage with new media channels. This shows a powerful opening for loyalty marketers to build sustainable loyalty with the next generation of American consumers.”

Does your company utilize loyalty programs? Why or why not?

For more information about how to market to Millennials, download our free white paper here.

Strategies to Appeal to Current and Prospective Customers

A solid customer base is the backbone of any thriving business. It’s essential that companies effectively tap into their pool of dedicated customers and identify prospective customers’ motivations and purchasing habits to successfully achieve market share growth.

Below are strategies to market home products by reaching your niche audiences, while increasing sales and market share.

Leverage Current Customers to Propel Sales
You’ve already established a strong customer base. They’ve bought from you in the past or are current customers sustaining your sales. Now, what are you going to do to maintain them as current and future customers?

• Instead of sending information out to customers, create a distribution channel where your customers can access your company information when and how they want.
• Offer customer referral promotions and incentives. You can develop a club for high-value customers where they can access discounts on your products or services or retrieve monetary rewards for new customer referrals.
• Provide ways for customers to comment about your company’s products and/or services. Research from MarketingSherpa found that 58 percent of consumers prefer Web sites with peer-written product reviews.
• Create a Facebook business page or Facebook group where customers can interact online.

Giving your customers a voice allows them the opportunity to become influential brand evangelists.

Be at the Forefront of Emerging Demographics
Aside from your existing customer base, it’s important to be knowledgeable about emerging, lucrative demographic groups as they have the potential to alter your business.

Take for example the newest generation to influence the home and commercial building products industry—the tech-savvy Millennials or Generation Y. This group is quickly becoming of first-time homebuyer age, and for those of us in the home and building industry, this is the group to watch closely.

The immigrant population is another vast and influential demographic group that needs to be watched closely by our industry. According to an analysis of census figures released in 2008, racial and ethnic minorities account for 43 percent of Americans under the age of 20, a strong indicator of America’s changing makeup.

Think Strategically, Target Accordingly
Whether you’re marketing to your existing customer base or potential customers, you need to know your target audiences. Ask yourself:

• What is this group like? What defines them?
• What are their likes/dislikes?
• What are their motivating factors to buy?
• How do they buy?
• How do they want to be reached?
• How can my brand target and attract them to increase sales and market share?

The key to marketing home products successfully—whether operating in an economic downturn or not—is reaching out to your customers the way they want to be targeted and in the places they are comfortable.

According to an article in MediaPost, “Today’s luxury industries are confronting a convergence of two trends:

1. Boomers entering a life stage when traditional materialistic values become less important, and
2. A recessionary economy that for many has decimated prospects for retirement.”

So, what does this mean for the luxury home market and how do today’s luxury marketers prevail in this down economy?

MediaPost lists four strategies to aid today’s marketers:

1.  Build communities around your products. The legendary Harley Davidson has always commanded higher prices than foreign motorcycles partly because of HOG (Harley Owners Group), a network providing powerful referential reinforcement.

2.  Differentiate with values that address emerging Boomer needs to seek higher purpose in lifestyle choices. A watch is more than a watch when acquired as a future heirloom for a grandchild.

3.  Make an unassailable quality and durability case. Most Boomers have been burned by shoddy products that seemed like a good deal but broke after purchase. Boomers believe the adage: You get what you pay for.

4.  Consider tiered pricing. Just as airlines such as Frontier are unveiling tiered ticket prices in coach class, luxury-class products can be offered to consumers as good, better and best (not cheap, cheaper, cheapest), without compromising brand stature or differentiation.

For more information on marketing to Boomers and the emerging Ruppies population, click here to download K&A’s free Ruppies White Paper. For more information about luxury marketing click here.