P&G is a multinational company that manufactures a variety of products ranging from personal care, laundry detergents, household care, disposal nappies, and prescription drugs. This depicts the fact that this company deals with a large number of client base all over the world. In this case, the paper attempts to know the business potential of the minority market for P&G. The paper in an outline form describes the three minority market, which is the Hispanic Americans, African Americans, and Asian Americans.
Hispanic Americans
Hispanic Americans is a group of people in the US who originated from Latin America, Spain, and Portugal. They are also referred to as the American Latinos. Based on the US Census bureau, the population estimates of the Hispanic Americans is roughly 52 million as at July 2011. This represents approximately 16.7 % of America’s total population which implies that they form the largest ethnic minority. The Hispanic Americans are estimated to grow to 132.8 million by July 2050 and will be representing 30 % of the total population at that time. It is also specified that the highest median age of this minority race was 34 years back in 2011. The average size of Hispanics households in the US is estimated to be over 3.92. In 2010, over 3.6 million Hispanic Americans had at least a bachelor’s degree. The median income level for the Hispanic household in 2010 was $37,759. The state with the largest population of Hispanics is California with a population of 14.4 million in 2010.
The state with the highest percentage of Hispanics is New Mexico with 46.7% of the population being Hispanics in 2010. The states with over 1 million population of Hispanics include; California, Florida, Arizona, Colorado, New York, Illinois, Texas and New Jersey. The Hispanics are believed to have a higher purchasing preference on groceries, household products and appliances, telephone services, alcoholic beverages, furniture and apparel (Selig Center for Economic Growth 34). The Hispanics are believed to be more than average consumers of perfume, cosmetics, shampoo, and children products like diapers and food. Research has confirmed that to get the attention of Hispanics, companies would make significant use of radio, television and the print media in their advertisements (The Nielsen Company 11). The Hispanics therefore presents a minority group that has a higher potential as a market for the company’s products. The Hispanics are big time shoppers and it is believed that they have a significant purchasing power.
African Americans
African Americans are a minority group in the US whose origin can be traced back to Africa during the 16 - 18 century slavery years. They originate from countries in Africa and the Sub-Saharan Africa whereas others have origins from the Afro-Caribbean countries such as Haiti and Jamaica. The population of African Americans in 2010 was estimated to be over 42 million people. This represents 13.6% of the total population in the US. The US Bureau of Census estimates that there will be over 65.7 million inhabitants of the African American origin by 2050. This will comprise 15% of the total American population. African Americans in the US have an average age of 32.1 with over 47% below 35 years. It is asserted that the average size of their households is 3.2 persons which is quite higher than the US average size of households which stands at 2.6 persons. In 2010, only 18% of the African Americans had acquired a bachelor’s degree. The median income of the African Americans per year in 2010 was estimated to be $32,068. This portrayed a 3.2% decrease from the 2009 projections.
The state with the largest population of African Americans is New York with over 3.3 million black people. The state of Mississippi has the highest percentage of African Americans in its total population which stands at 38%. Other states where there is a large number of African Americans include; Georgia, Illinois, California, Texas, Maryland, Chicago, Ohio and North Carolina. African Americans are believed to be a population that loves keeping up with the new fashion and technology. For this reason they can more than average purchase brands that are fashionable, technologically enhanced, and brands that symbolize prestige (Burnett 124). The African Americans are believed to have more usage of groceries, trendy clothes, vehicles and technology appliances. The best media to use in order to trap the African Americans market would be the community newspaper, use of internet, television and radio because they show a great usage of these media types. The African Americans have a high purchasing power because they shop to show off their social status thus they become a potential market to the company.
Asian Americans
Asian Americans are people living in the US who originated from the Asian continent. These people includes; Indians, Chinese, Koreans, Japanese, and other people from Asian countries. In 2010, it was estimated that there were 17.3 million Asian Americans in the US. This minority group represents 5.6 % of the total population in the US. The rate of growth of Asian Americans from year 2000 to 2010 was estimated to be 46%. The average age of the Asian Americans population was estimated to be 35.4 years. The median household income per year for the Asian Americans was projected to be $67,022. It is also revealed that 50% of the Asian Americans have attained at least a bachelor’s degree in their educational capacities. The state with the largest population of Asian Americans is California with over 5.6 million persons.
Other states with a significant number of Asian Americans include New York and Hawaii. The Asian Americans have been found to purchase more than average on food products, financial products, education, and housing. Asian Americans are also believed to be the highest consumers of rice in the US; they also consume much of the educational services and household products (The Nielsen Company 15). It has been proved that over 80% of the Asian American population access the internet regularly. It would be prudent to use the internet as media to get their attention or the print media since most of them are elites who go through newspapers much often. Due to the fact that most of the Asian Americans are well educated, they have a good income level and consequently a higher purchasing power. For this reason, they become a potential market for a company like Procter and gamble.
Works Cited
Burnett, Leonard. Black is the new green: marketing to affluent African Americans. New York: Palgrave Macmillan, 2010.
Selig Center for Economic Growth. The multicultural economy report 2006. Athens, GA: Selig Center for Economic Growth, 2006.
The Nielsen Company. State of the Hispanic Consumer: The Hispanic Market Imperative, New York: Nielsen, 2012.
The Nielsen Company. State of the Asian American Consumer: Growing Market, Growing Impact, New York: Nielsen, 2012.
