CMO Perceptions of Multicultural Talent Opportunities · © Copyright 2007 BRAND iosity 7 …And...

© Copyright 2007 BRANDiosity

CMO Perceptions of Multicultural Talent OpportunitiesSponsored by Heidrick & Struggles

This presentation is solely for the use of client or partner personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client or partner organization without prior writtenapproval from BRANDiosity

February 2008

© Copyright 2007 BRANDiosity 2

Executive Summary

� The vast majority of firms have a multicultural marketing function and recognize the importance of multicultural marketing to their business

� However, executives aren’t satisfied with their multicultural marketing business performance

� Many don’t even have an understanding of the size of the multicultural opportunity for their business

� Many also feel they aren’t effectively organized to go after the multicultural opportunity

� The Latino opportunity is perceived as the biggest opportunity (significantly higher than both African American and Asian)…

� Executives feel that the investment they make on the Latino opportunity is warranted

� However, only one-third feel they are obtaining the required return

� Many feel they don’t have the organizational capability to effectively market to Latinos; despite having increased their investment in Latino focused marketing talent

� Executives feel that hiring Latino talent is difficult, and they are split on whether or not it takes a Latino to market to a Latino

Multicultural Marketing


The Study Focused Primarily On Senior ExecutivesOver Two-Thirds Of Respondents Were Senior Marketing Executives, Most Of Them CMOs

CMO/SVP

66%

VP

5%

DIRECTOR/

MANAGER

9%

OTHER/NR

20%

Title of Respondent


…Across A Wide Variety Of Industries

Retail

11%

CPG

15%

Restaurant/Fast

Food

9%

Telcom

7%

Apparel/Footwear

5%

Hotel/Hospitality

5%

Other

31%

Banking/Financial

Services

16%

Industry/Sector


Two-Thirds Of Respondents Indicated That Their Companies Have A Multicultural Marketing Function

No

33%

Yes

67%

% Companies With Multicultural Marketing Function

� Of the one third of companies that do not have an in-house multicultural function, approximately one third of them were still addressing the multicultural opportunity through other means.

� To a large extent companies are addressing their multicultural marketing needs through general market external resources:

• General market research firm 58%

• General market agency 42%

• General market consulting firm 11%

• Multicultural research firm 35%

• Multicultural agency 51%

• Multicultural consulting firm 26%


…And For Those That Didn’t Have A Function It’s BecauseThey Don’t Target Multicultural Segments, Or Their GM Handles It

Not specifically targeting those audiences

Not enough staff and not a big enough opportunity

Very low percentage of multicultural consumers in our customer base

We handle internally thru total team

We have a very small marketing department. Any multicultural programs are handled within the existing team

Lean staff; no dedicated function fairly young in marketing

Many basic marketing functions are still being established

We're just beginning to understand and implement multicultural marketing initiatives

too small

Multi-cultural marketing is handled by the regular Brand team

We have a Diversity group within HR and we coordinate marketing on a multi-cultural level from within marketing to serve that function

We are not targeting Hispanics or African Americans

Not seen as a priority at this time relative to other investments

It is in its early development stages and very geographically focused

Not our market

We have dedicated resource in our marketing division to address

It is centralized in HQ and little room is available to customize to each market

Too targeted and expensive; not investing enough on core target today


The Vast Majority Of Respondents Are Directly Or Indirectly Responsible For Multicultural MarketingHalf State The Function Is Centrally Organized

Centrally

Organized

51%Business

Unit

38%

Other

11%

Responsibility For Function & How Organized

Directly

51%

Indirectly

33%

Not

Responsible

16%


The Marketing Services Firms Used Most For MulticulturalMarketing Aren’t Necessarily Multicultural FirmsGeneral Market Research Firms Are The Most Utilized

11%

26%

35%

42%

51%

58%

Lrg. Traditional

Consutling Firms

Multicultural

Consulting Firms

Multicultural Market

Research Firms

General Market

Agency

Multicultural Agency

General Market

Resarch Firms

Q. Which of the following types of marketing services firms does your company utilize for its multicultural marketing needs?

Types Of Firms Utilized For Multicultural Marketing


Some Companies Plan On Hiring Multicultural Marketing Firms Over The Next 12 Months, And Some Don’t

Q. How likely are you to hire an outside multicultural marketing services firm over the next 12 months?

46% 46%

Top 2 Box Bottom 2 Box

Likelihood of Hiring A Multicultural Firm In Next 12 Months


The Vast Majority Recognize How Critical Multicultural Marketing Is To Their Business

Q: Multicultural Marketing is Critical To My Business

31%

53%

6%4% 4%

Strongly agree Somewhat agree Neither agree

nor disagree

Somewhat

disagree

Strongly

disagree

84% 16%

Multicultural Marketing is Critical To My Business


…And Hispanics Are By Far The Most Important SegmentNearly Two-Thirds Stated That Latinos Are “Extremely Important To” or “Important To”Their Business vs. 30% For African Americans and 24% for Asians

Q: Importance of each segment to their business

65%

30%

24%

Latino African American Asians

Importance Of Segment To Their Business (% Extremely Important/Important)


Given Its Importance, The Majority Feel That Multicultural Marketing Should Not Be Outsourced

Q: Feel multicultural marketing should be outsourced

4%

24%

16%

27%26%


nor disagree

Somewhat

disagree

Strongly

disagree

28% 53%

Multicultural Marketing Should Be Outsourced


Marketers Aren’t Very Satisfied With Their Organization’s Multicultural Marketing Effectiveness

Q: Satisfied with multicultural marketing effectiveness

2%

29%

20%

24%

20%


nor disagree

Somewhat

disagree

Strongly

disagree

31% 44%

Satisfied With Multicultural Marketing Effectiveness


…And They Don’t Feel They Are Effectively Organized Less Than Half Of The Companies Felt They Were Effectively Organized To Handle Latino Marketing

Q: Effectively organized to handle Multicultural marketing

27%

18%

13%

16%

20%


nor disagree

Somewhat

disagree

Strongly

disagree

45% 36%

Effectively Organized To Handle Multicultural Marketing


Nearly 40% Do Not Even Understand The Size of The PrizeOnly Half State They Understand The Financial Worth of Multicultural Segments

Q: Understand Financial Worth Of Multicultural Segments

22%

27%

9%

27%

9%


nor disagree

Somewhat

disagree

Strongly

disagree

49% 36%

Understand Financial Worth Of Different Multicultural Segments


The Biggest Multicultural Challenges Executives See Are…Senior Level Buy-In/Commitment, Measurement

Measuring specific program results directly measuring success through distribution identifying incremental results

Getting buy-in and support from company leadership

Internal team – seeing the need for specific efforts targeting this key consumer group beyond hiring/recruiting efforts

Understanding from senior leadership of the importance for multicultural marketing

Explaining to management their importance

Fully understanding the protocol of business to business relationships in the Latino market

Maintain focus, while avoiding stereotypes even within Multicultural efforts

Understanding more about the market segments

Tracking of Hispanic customer share

Measuring impact

Internal consideration of the segment in experience design and refinement

Targeting different kinds of Latinos. Tracking the business accurately. ROI on investments behind Latino MKG

Quantifying the impact to sales and profits

….Demonstrate that investments in multi-cultural marketing can deliver decent returns

Getting the proper traction and prioritization within the businesses

Measuring the impact on the business adequately funding

Getting senior level marketers to understand that the world is changing

Commitment and consistency

Failure of upper management to understand the true ROI potential

Connecting with Real Estate Brokers outside of the US and finding large pools of qualified contacts


More Companies Have Professionals Focused On Latino Marketing Than Other Ethnic Segments78% vs. 64% for African American vs. 49% for Asian

Q: How many multicultural professionals (managers and above) within your company are focused on…?

22%

36%

51%

42%

36%

20%

8%4%

7%

2%6%

23%

Latino Professionals African American

Professionals

Asian Professionals

None Less than 3 3 to 11 12 or more

Number Of Professionals Focused On Multicultural Marketing (By Ethnicity)

Latino Marketing/Talent


While Over Two-thirds Of Respondents Agreed That Their Company’s Investment In Latino Marketing Was Warranted

Q: Latino investment is warranted

49%

20%

11%7% 6%


nor disagree

Somewhat

disagree

Strongly

disagree

69% 13%

Latino Investment Is Warranted


…Only One-Third Agreed That They Were Deriving The Required Financial Returns From Their Investment In Latino Marketing

Q: Get required returns from Latino efforts

11%

27%

42%

6% 6%


nor disagree

Somewhat

disagree

Strongly

disagree

38% 12%

Get Required Returns From Latino Efforts


…And Less Than Half Of The Companies Felt That They Had The Organizational Capabilities To Effectively Market To Latinos

Q: We have the organizational capability to effectively market to Latinos

18%

29%

13%

18%

13%


nor disagree

Somewhat

disagree

Strongly

disagree

47% 31%

Organization Capability To Market To Latinos


About One-Third Stated The Number Of Executive Level Professionals Focused On Latino Has Increased In Last 2 Years…And Over 40% Stated The Their Overall Latino Team Has Increased

� Has the number of Latino marketing executives increased or decreased in the last 2 years:

• Increased 29%

• Decreased 2%

• Stayed the same 51%

� Has the size of your overall Latino marketing team increased or decreased over the last past 2 years:

• Increased 42%

• Decreased 6%

• Stayed the same 42%


However, 42% Of Respondents Indicated That It Is Not Easy To Hire Latino Marketing Talent

Q: Easy to hire Latino talent

4%

20%

24%

20%22%


nor disagree

Somewhat

disagree

Strongly

disagree

24% 42%

Easy To Hire Latino Talent


Respondents Are Essentially Split On Whether It Is Really Necessary To Be Latino When Marketing To A Latino

Q: Takes a Latino to market to a Latino

9%

26%

22%24%

15%


nor disagree

Somewhat

disagree

Strongly

disagree

35% 39%

It Takes a Latino to market to a Latino


The Internet Is Seen As A Relatively Important Recruiting Tool When Targeting Latino Talent

Importance Internet For Recruiting Latinos

Not at all important 11%

Of little importance 18%

Moderately important 33%

Important 29%

Extremely important 9%


Job Postings

Job Postings, Mostly

Spanish Website

Web Postings

Special Spanish Product Section Of Our Website. Expanding Our SEO Efforts In This Area.

Establishing Websites

Job Search Site

Website Focused On Attracting Multicultural Agents, Including Latinos

We Use Job Search Websites

Not At All.

Don't Know

Recruiting On General Websites Like ANA, Monster And On Focused Websites.

Job Boards

Bilingual

Job Postings

Online Advertising, Professional Associations Sponsorships, Etc.

Job Boards

Most Companies That Are Recruiting Latino Marketing Talent Are Using Internet Job Postings

Q: How is your company using the internet to attract Latino marketing talent?


Final Thoughts….

� Marketing Is Marketing No Matter Who You Are Marketing To

• Multicultural marketing should follow the marketing management process used for the “general market”– analysis, planning, execution, and measurement

� The Key To Great Strategy Is Insights

• And great insights are hard to get with consumers that are difficult to reach, are reluctant to open up, speak a variety of languages, and have different values and beliefs (even within the “Hispanic”community itself)

• Ensure you have the right partners that understand the cultural nuances and use non-traditional data gathering techniques to reach hard to reach groups

� Don’t Abdicate Your Multicultural Marketing Strategy To Your Agencies

• Agencies should focus on their core competency – communication strategy – and this should only be done after the overall multicultural strategy has been created

� Ensure There Is A Measurement Plan In Place

• …Before execution begins so that you can measure the ROI of all of your multicultural marketing efforts and gather learnings to be reapplied on future efforts

� Your Multicultural HR Strategy Should Flow Out Of Your Multicultural Marketing Strategy

• Structure follows Strategy…


To Learn More ….

For an engaging discussion about the multicultural market and how you might be able to capitalize on this tremendous opportunity, please contact us:

Carla PalazioManaging PartnerMulticultural Practice

Heidrick & Struggles

[email protected]

(305) 262 8356

Juan GarciaPrincipal

BRANDiosity

[email protected]

(404) 509-2209


About Us….

About BRANDiosity

BRANDiosity, based in Atlanta, is a leading brand growth firm focused on helping companies identify, prioritize, and seize untapped growth opportunities from the multi-segment marketplace. Visit our website at www.brandiosity.com.

About Heidrick & Struggles

By focusing on the intersection of marketing and growth, Heidrick & Struggles’Global Marketing Officers practice helps build world-class leadership teams for organizations of all sizes across numerous industries. With a dedicated team of over 60 professionals, the practice has conducted more than 1,500 searches for marketing officers across all four continents over the past 3 years. Moreover, most of Heidrick & Struggles’ Marketing Officers practice members possess deep functional marketing expertise that extends into unique specialty areas such as Digital Marketing, Multicultural Marketing and Innovation.

CMO Perceptions of Multicultural Talent Opportunities · © Copyright 2007 BRAND iosity 7 …And...

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