POWER IN NUMBERS The portrait of America is more of an ever-evolving landscape now than ever before. The 2010 census statistics are expected to demonstrate the colossal population increase among African-Americans and Hispanics, and now research backs up the growth in affluence and spending power of these populations as well. The Selig Center indicated that in 2009 African American buying power was $910 billion. That same year Hispanic buying power hit $978 billion. These numbers mark the milestone that the above-mentioned markets possess buying power larger than the entire economies of all but fourteen countries in the world (based on the 2008 GDP measured in U.S. dollars). The San Jose Group, an integrated multicultural marketing communications agency, interprets this research to mean that now with the minority being the majority, allocating more marketing dollars to the African American and Hispanic markets is no longer a trend, but a necessity for success. The multicultural market has officially transpired into the new general market. The Selig Center’s further research exhibits astronomical growth and demonstrates that African Americans and Hispanics are about to invigorate the consumer market with their spending power. African American buying power has risen from $318 billion (1990) to $590 billion (2000), then $913 billion (2008) and is expected to hit $1.2 trillion in 2013. The Hispanic market leapt from $212 billion in 1990 to $490 billion (2000), then $951 billion (2008), and is paced to reach $1.4 trillion in 2013. As these populations experience record-breaking surges of growth from a population and a fiscal perspective, it has never been more evident that reaching out to these budding multicultural communities is not only a tremendous opportunity, but a crucial business decision. For more information about this topic please email email@example.com. For more information about the San Jose Group please visit...read more
Multicultural Impact of the 2010 Healthcare Reform Act on the Pharmaceutical Industry: Where will the 33 million insured population derive from?
by Martha Rivera, Director of Insight & Planning The San Jose Group is strategically leading the conversations on this topic. With a background of more than 25 years of strategic marketing and communications for the pharmaceutical industry, with a phenomenal combined experience of providing counsel to more than 50 pharmaceutical and healthcare brands, the team at The San Jose Group gives their perspective on the potential implications of the multicultural market on this national healthcare act. After several months of intense political battle, in March 2010, President Barack Obama signed the Patient Protection and Affordable Care Act – a healthcare insurance coverage for approximately 33 million new consumers in the United States. The San Jose Group asks: What is the impact of their expected massive influx into the pharmaceutical market? How is it going to affect the marketing and communications platforms within the industry? The San Jose Group’s first question to consider how the 33 million newly insured people break down by ethnicity. Statistics strongly suggest that the newly insured will make up more than 43 percent from the multicultural marketplace. Currently, the top-12 pharmaceutical companies are investing less than 1 percent of their total advertising dollars toward multicultural segments at the present time. After 2014, approximately one in four insured people would come from a multicultural background. Not only is there a lack of multicultural marketing investment within the category or few with real future plans to ramp up initiatives, but there also seems to be gap in knowledge regarding how there is a new and growing majority in key U.S. markets. According to 2009 U.S. Census Bureau data, 52 percent of the 18-44 population within the largest top-20 U.S. markets is from a multicultural background. This new majority is critical to embrace as most pharmaceutical brands do not have national budgets and are required to focus their DTC, HCP and DTP efforts into key markets. “Healthcare reform combined with the new majority will create a paradox shift in pharmaceutical marketing. Agencies without...read more