César M Melgoza
Founder & CEO
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Lunch Panel Discussion:
Brand Relevancy in Hidden Markets: The New Focus on Hyper-Segmentation, Multicultural Localization and "Me-Minded" Individualization
Date & Time:
Tuesday, December 8, 12:30 PM
Speaker Agenda >
The New Mainstream America
César Melgoza, Founder and CEO of Geoscape, shares his thoughts on the changing role of the CMO and the importance of tapping into multicultural consumer markets.
After Geoscape was formed, we existed in the international space for five years before beginning to focus on the US multicultural opportunity in 2001. I’ve seen that more and more, America is turning from a melting pot into more of a salad bowl because many people embrace their cultures, and the majority don’t fully assimilate to being American—they celebrate both! I love viewing cultural qualities in terms of how we can bring them into actionable quantitative execution—turning ideas into action—and if we can help marketers succeed, then it’s a win-win situation.
We know that the non-Hispanic millennial population (currently 18-34 years of age) will have grown by 11.4 million between 1990 and 2020, forming 173 percent of that life-stage group’s growth during that period – in other words, the non-Hispanic millennial population has declined significantly while the Hispanic millennial population has surged. At Geoscape, we identify the sources of growth in order to develop a plan for how to connect with those consumers. We have built data resources and analytics to understand these customers at a level of detail that makes sense for brands so that they can develop and execute a plan to target these customers across retail, digital, brand management, product development, contact center management, etc.
To begin this process, we recommend a benchmark study, which shows the rate of penetration for consumer groups in current campaigns. We help measure the progress through metrics that look at brand market share and identify market revenue. Once we have those initial data points from companies’ own databases and culture coding systems, we can determine how the company compares to the benchmark. Then we develop new marketing programs to review their progress and provide a base understanding to help them move toward their goals.
For example, retailers such as Wal-Mart often serve a large, diverse surrounding area and want to stock their shelves with certain culturally specific products—especially when the majority culture isn’t Anglo-American—in order to increase shopping frequency. We are able to achieve the granularity to see how well brands are doing across all markets, right down to the UPC code level.
While some CMOs have embraced multicultural markets with open arms, others still consider them to be niche markets and don’t see the strategic advantage of targeting these consumers. However, if the multicultural market is the bulk of their growth, then it needs to be higher on the priority list. Larger companies like Wal-Mart, Coca-Cola and AT&T all have been expanding considerably because they’ve realized how large the multicultural market is, and they want the competition to stay behind the curve in order to maximize their opportunity with these consumers.
One-size-fits-all advertising for multicultural audiences will not lead companies to growth. Consumers in those markets won’t connect to a message that is too broad and/or too far away from their background. In a world where personalization and relevance are key to creating an engaging customer journey, it’s time to take that idea to a grander scale and think about the opportunities that could await your organization by effectively targeting multicultural consumers.
For anyone whose interested in learning more about how they can effectively reach multicultural consumers, I’ll be at the CMO Summit in Napa beginning Saturday, December 5, and would love to connect with you to tell you more about Geoscape and how you can test-drive our system. I hope to meet you there!
The CMO Council is offering unlimited access for a single user to the 2015-2016 CMO Summit Video Library for $199 USD. The library contains un-edited views of all general session keynotes, panel discussions, as well as the culmination and output of the CMO Summit’s working group sessions that tackled issues ranging from reshaping the role of the CMO to redefining the core KPIs and impact metrics used at the executive level.