The Next 25 The Next 25 YearsYearsAmerican American

DemographicsDemographics

2025 Forecast2025 Forecast

In 20 years…..In 20 years….. People over 65 years old People over 65 years old

will dominatewill dominate the populationthe population White population majority willWhite population majority will

come closer to being a minoritycome closer to being a minority More niche marketing campaignMore niche marketing campaign

opportunities – as ethnic groupsopportunities – as ethnic groups

grow in numbers grow in numbers

U.S. Population U.S. Population ProjectionsProjections

2000: 2000: 280 million people 280 million people 2025: 2025: 350 350 million peoplemillion people

Growth rates will mirror the Baby Boom era Growth rates will mirror the Baby Boom era during the during the 1950s & 1960s after WWII1950s & 1960s after WWII

25% population increase25% population increase Growth rates are rising due to people living Growth rates are rising due to people living

longer,longer,

birth rates holding steady and continued birth rates holding steady and continued immigrationimmigration

States’ Growth RateStates’ Growth Rate

States’ Growth Rate con’tStates’ Growth Rate con’t

Population GrowthPopulation Growth

Marketing AnalysisMarketing Analysis

Every market segment will expand Every market segment will expand and it will be difficult to target groups and it will be difficult to target groups with a single marketing strategy, as with a single marketing strategy, as niche groups of today become the niche groups of today become the mass markets of tomorrow providing mass markets of tomorrow providing greater marketing opportunitiesgreater marketing opportunities

Niche Advertising Niche Advertising OpportunitiesOpportunities

Euro RSCG LatinoMission: Innovate marketing to Latinos in the U.S. and Latin America by applying a contemporary understanding of the marketplace, a simplified approach, and the full resources of a global communications agency.Auto Industry Tailoring Ads to Minorit

y GroupsToyota Ad

"Tooth Art" Postcard • The postcard featured an African American man with a large

smile and a gold RAV4 emblem on his tooth. • It was part of a "buzz" campaign using postcards distributed to

hip urban nightspots and coffee houses • Recognizing that the card might offend, Toyota pulled it from

the marketplace prior to hearing of Rev. Jackson's concerns. • The company has apologized publicly for the postcard and is

taking steps to ensure that future marketing materials are appropriate for all audiences.

Auto Industry Tailoring Advertising for Auto Industry Tailoring Advertising for MinoritiesMinorities

Detroit - Automakers increasingly are targeting the Black, Detroit - Automakers increasingly are targeting the Black, Hispanic and Asian-American communities with tailored Hispanic and Asian-American communities with tailored advertising, advertising, as the purchasing power of minorities as the purchasing power of minorities grows.grows.

Whether they're selling a Toyota Camry or a Jaguar S-Type, Whether they're selling a Toyota Camry or a Jaguar S-Type, companies are companies are no longer taking a one-size-fits-all no longer taking a one-size-fits-all approach to marketingapproach to marketing. Instead, they are creating ads . Instead, they are creating ads that speak to specific groups and placing them in that speak to specific groups and placing them in targeted media outlets. The increasing awareness of targeted media outlets. The increasing awareness of diversity sometimes trickles down into the way cars are diversity sometimes trickles down into the way cars are designed, as automakers seek to fit the product to the designed, as automakers seek to fit the product to the consumer's lifestyle.consumer's lifestyle.

"Just about every major auto company has begun to realize "Just about every major auto company has begun to realize it makes perfect sense to have it makes perfect sense to have culturally specific culturally specific advertisingadvertising," said Randi Payton, chief executive of On ," said Randi Payton, chief executive of On Wheels, which publishes the magazines African Wheels, which publishes the magazines African Americans on Wheels and Latinos on Wheels.Americans on Wheels and Latinos on Wheels.

The share of such targeted marketing in overall marketing The share of such targeted marketing in overall marketing budgets has grown about 11% over the last five years, budgets has grown about 11% over the last five years, said Art Spinella, president of CNW Marketing Research said Art Spinella, president of CNW Marketing Research in Bandon, Ore. Companies spend about 9.8% of their in Bandon, Ore. Companies spend about 9.8% of their marketing budgets on blacks, 16.2% on Hispanics and marketing budgets on blacks, 16.2% on Hispanics and 3% on Asians, he said.3% on Asians, he said.

Auto Industry Example Auto Industry Example con’tcon’t

According to the 2000 census, 12.3% of the population According to the 2000 census, 12.3% of the population identified itself as black, 12.5% Hispanic or Latino, and 3.6% identified itself as black, 12.5% Hispanic or Latino, and 3.6% Asian.Asian.

Automakers say they try to Automakers say they try to create ads that target a group's create ads that target a group's valuesvalues, rather than simply placing their general-population , rather than simply placing their general-population ads in black-oriented newspapers or translating TV spots for ads in black-oriented newspapers or translating TV spots for Spanish-language stations.Spanish-language stations.

"The overarching goal, which is true for all of our initiatives, is "The overarching goal, which is true for all of our initiatives, is we're meeting customers on their terms," said Nathaniel we're meeting customers on their terms," said Nathaniel Mason, a Ford spokesman.Mason, a Ford spokesman.

At Toyota, diversity marketing translates into more family At Toyota, diversity marketing translates into more family oriented ads for both Asians and Hispanics, said James oriented ads for both Asians and Hispanics, said James Lentz, the company's vice president for marketing in the Lentz, the company's vice president for marketing in the United States. The company's Hispanic advertising is United States. The company's Hispanic advertising is generally "much more emotional," he added.generally "much more emotional," he added.

In the Chinese community, "the entire family is involved in the In the Chinese community, "the entire family is involved in the purchase decision," Lentz said. "So in the advertising, you'll purchase decision," Lentz said. "So in the advertising, you'll see not only parents and children, but also grandparents."see not only parents and children, but also grandparents."

Advertising geared at Blacks tends to feature celebrities, Advertising geared at Blacks tends to feature celebrities, Spinella said, citing a recent Jaguar print ad with singer Spinella said, citing a recent Jaguar print ad with singer Natalie Cole.Natalie Cole.

Population GrowthPopulation GrowthThe population growth will increase The population growth will increase

demand on natural resources causing demand on natural resources causing

them to be stretched out, possibly them to be stretched out, possibly

leading to shortages in land, water, leading to shortages in land, water,

power etc.power etc.

Marketing AnalysisMarketing Analysis

Products and services will be analyzed on Products and services will be analyzed on

their environmental impact and marketing their environmental impact and marketing

advertisements must take that into considerationadvertisements must take that into consideration

| \/

Graying of AmericaGraying of America

Largest growth will be seen in those Largest growth will be seen in those 65 and older65 and older

20002000: : 35 million35 million 12% pop12% pop 20252025: : 70 70 million 25% popmillion 25% pop

>100% increase in ages:

• 65-69• 70-74• 85+

Graying of Graying of AmericaAmerica

Marketing AnalysisMarketing AnalysisShift from youth focused advertising to brands that Shift from youth focused advertising to brands that

attract older generations and ads tailored to attract older generations and ads tailored to adult preferencesadult preferences

- Marketers have to create an ageless society, since - Marketers have to create an ageless society, since people want to be defined by their activities people want to be defined by their activities rather than their agerather than their age

Example: Carnival Cruise Line TV adExample: Carnival Cruise Line TV ad

Featured an older couple getting up from dinner to Featured an older couple getting up from dinner to go dance along with go dance along with the younger crowd - showing the younger crowd - showing activities suitable for all age groupsactivities suitable for all age groups

Ethnic GroupsEthnic Groups

Non-Hispanic Whites will still be Non-Hispanic Whites will still be the majority - barelythe majority - barely decrease from 70% to 60% of the decrease from 70% to 60% of the population by 2025population by 2025

Hispanic population nearly doublesHispanic population nearly doubles 20002000: 35 million : 35 million 20252025: 68 million: 68 million

12%12% 19% 19% Asian population will doubleAsian population will double

20002000: 12 million : 12 million 20252025: 24 million: 24 million 4%4% 7% 7%

60.1%13.0%

6.7%

0.08%

19.4%White

African American

Asian

Native American

Hispanic

Percent of Total Percent of Total PopulationPopulation

Ethnic GroupsEthnic GroupsMarketing Analysis Companies must develop multicultural

marketing strategies to address the diversity of their consumers. Ethnographic research will help them understand the culture of the emerging ethnic groups and help in identifying how to market to each group’s particular identity.

Bank of America defines "home" with families of color

Summary Summary The next 20 years…..The next 20 years….. Will open up doors to marketing opportunities Will open up doors to marketing opportunities

directed at the segmented markets resulting directed at the segmented markets resulting from the changing age and ethnicity from the changing age and ethnicity demographics demographics

The growing population will increase group The growing population will increase group representation and create markets that were representation and create markets that were not considered large enough to be profitable not considered large enough to be profitable beforebefore

Marketing will need to be more multicultural, Marketing will need to be more multicultural, age sensitive and environmentally consciousage sensitive and environmentally conscious

SourcesSources Alison Stein Wellner, “The Next 25 Years,” Alison Stein Wellner, “The Next 25 Years,”

American DemographicsAmerican Demographics, 2003., 2003. http://www.carnival.comhttp://www.carnival.com http://www.census.gov/population/www/http://www.census.gov/population/www/

popclocks.htmlpopclocks.html http://www.eurorscglatino.comhttp://www.eurorscglatino.com http://www.jsonline.com/bym/news/http://www.jsonline.com/bym/news/

jan04/197945.aspjan04/197945.asp http://www.npg.org/popfacts.htmhttp://www.npg.org/popfacts.htm http://www.toyota.com/html/http://www.toyota.com/html/

diversity.html#adsdiversity.html#ads

Interesting Facts Interesting Facts The United States has the highest growth rates of any industrialized The United States has the highest growth rates of any industrialized

country in the world.country in the world.

The U.S. population is growing by about 3.2 million people each The U.S. population is growing by about 3.2 million people each year.year.

Using the Census Bureau's medium projections, U.S. population is Using the Census Bureau's medium projections, U.S. population is expected to grow to 400 million by the year 2050. Eight states have expected to grow to 400 million by the year 2050. Eight states have population growth rates over 2.0%, which means their population population growth rates over 2.0%, which means their population will double in less than 35 years. Florida’s population has grown will double in less than 35 years. Florida’s population has grown from 1.9 million in 1940 to 15 million today. That is over a 600% from 1.9 million in 1940 to 15 million today. That is over a 600% increase in just 50 years.increase in just 50 years.

Along our ecologically fragile coasts, where nearly half the Along our ecologically fragile coasts, where nearly half the population lives, the U.S. is among the most densely populated population lives, the U.S. is among the most densely populated countries in the world. The Northeast averages 767 people per countries in the world. The Northeast averages 767 people per square mile, while Haiti, for comparison, has 580. By 2010, when square mile, while Haiti, for comparison, has 580. By 2010, when California’s population reaches 50 million, population densities in California’s population reaches 50 million, population densities in coastal California will reach 1,050 people per square mile.coastal California will reach 1,050 people per square mile.

Since 1980, the U.S. has converted more than 10 million acres of Since 1980, the U.S. has converted more than 10 million acres of forest to suburb -- an area twice as large as Yellowstone, forest to suburb -- an area twice as large as Yellowstone, Everglades, Shenandoah, and Yosemite National Parks combined.Everglades, Shenandoah, and Yosemite National Parks combined.

Age ReferenceAge Reference

Current U.S. population Percent change in

Age when you were born population since

    you were born

10 248,709,873 13%

20 226,542,199 24%

30 203,302,031 38%

40 179,323,798 57%

50 151,325,798 86%

60 132,164,569 113%

70 123,202,624 128%

80 106,021,537 166%

90 92,228,496 205%