prepared for: client or contact name title or additional names authors: stephen palacios executive...

Prepared for:

Client or contact name

Title or additional names

Authors:

Stephen Palacios

Executive Vice President

Strategic CSRMarket creation for multicultural consumers

Date: 25 Sep 2008

Cheskin Added Value255 Shoreline Dr., Suite 350Redwood Shores, CA 94065650-802-2100

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© 2008 Cheskin Added Value

Why should Meeting Planners care about CSR?

CSR is exploding rapidly

• of the 250 largest multinational corporations, 64% published CSR reports in 2005*

• there is rising expectations from consumers, employees and regulatory agencies

• CSR is increasingly a C-suite initiative

Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility, HBR 2007

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CSR is increasingly embedded in fundamental corporate strategies

2005: Ford Motor Co. plant in DetroitPresident proud of ecologically powered roof (highly innovative, sustainable and cost effective) but NOT consumer facing while TOYOTA was winning the mindshare of American consumers with a limited release, but heavy advertising of the Prius.

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CSR is increasingly embedded in fundamental corporate strategies

2008: Companies are becoming more explicit with Consumers in their CSR initiatives and efforts

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NGOs are employing free market principles toward poverty alleviation – market making

“Washington Consensus”: post Cold War notion that deregulation, privitization and open trade is the dominant economic global paradigm

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CSR is more than Sustainability, particularly for Emerging markets

“Bottom of the Pyramid” global opportunities, efforts to sell goods and services to the near lowest economic strata, can often feel like CSR activities

In the U.S., similar dynamic for multicultural markets, particularly the U.S. Hispanic market due to its size and trajectory

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Corporations are reverse engineering the free market principle approach into more strategic CSR and for profit models - also market making

$$

$$

For Profit

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© Cheskin 2006

African American Segment Hispanic Segment Asian Segment

Total 37,502,320 Total 41,322,070 Total 12,326,216

% of

State

% of

Segment

% of

State

% of

Segment

% of

State

% of

Segment

New York 17.5 8.9 California 34.7 30.1 California 12.0 35.0

Florida 15.7 7.3 Texas 34.6 18.8 New York 6.5 10.1

Texas 11.7 7.0 Florida 19.0 8.0 Texas 3.2 5.8

Georgia 29.5 6.9 New York 16.0 7.4 New Jersey 6.9 4.9

California 6.8 6.5 Illinois 13.9 4.3 Hawaii 41.7 4.3

Illinois 15.1 5.1 Arizona 28.0 3.9 Illinois 3.9 4.1

Maryland 29.1 4.3 New Jersey 14.8 3.1 Washington 6.2 3.1

1 in 3 U.S. consumers are AA, Asian, or Hispanic

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© Cheskin 2006

Ratio of Non-Hispanic Whites to Other Races/Ethnicities by Age

Source: US Census

0-9(1 : 1.5)

10-34(1 : 1.7)

35-49(1 : 2.5)

50-64(1 : 3.4)

65+

(1 : 5.0)

Age

Non-Hispanic White Other Races/Ethnicities

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Hispanic population moving from minority to plurality means new thinking about targeting the general market.

Redefining the Marketplace

0

40

80

120

160

1990 2000 2010 2020 2030 2040 2050

Popu

lati

on in M

illio

ns

Source: US Census

0%

10%

20%

30%

40%

50%

His

pan

ic P

erc

en

t of

Tota

l Popula

tion

Source: US Census Projections 1990-2050

TOTAL U.S. HISPANICS POPULATION

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Current Confusion: CSR and Multicultural Marketing in Health Care

Director under Social Responsibility

Individual policy sales team

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Define the issue appropriately: disassemble first

Strategy bridging the two is where success lies

Confusion comes with most multicultural initiatives

• Commercial actors can be skeptical of efforts as non revenue enhancing.

• Non commercial actors can place all emphasis on social benefit goals.

• Clear distinctions, goals, and metrics are required for both to succeed.

• With immigrant markets, the opportunity to bridge both is greater (market creation function).

Social Responsibility/

Good Citizenship

Commercial Successvs.

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Commercial Realm

Corporate Social Responsibility

Program Goals

Profit goals are the same as for other markets.

Conforms to certain systems and processes.

Focuses on improving current business.

Servicing existing members and attending to prospective, qualified members.

Program Goals

No profit

Enhance corporate reputation

Education focused

Mitigate negative criticism from social/political entities

Assistance for those that cannot afford healthcare.

Market Development

Program Goals

Focus is on self-sustainable initiative; little profit.

Experimentation with new programs, products.

Membership/market development by transitioning people to transactional economy. Transition them to become viable commercial members in future.

Creating An Offer by Aligning CSR and Multicultural Marketing

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Case Study: Aligning CSR with Non Profits to Build Multicultural Markets

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Going Forward: How will CSR continue to evolve?

-Organizational Structures will change to reflect Strategic CSR with Marketing and market building

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- Consumers expectations for corporations will continue to rise

- Employees, particularly Millenials, increasingly will include CSR efforts in their employment decisions

- Companies in the services realm in the U.S. will increase their CSR and Multicultural marketing alliance

- Companies that are serving emerging markets will increasingly employ Strategic CSR efforts to build markets

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- Companies are more holistic in their strategic CSR


Thank You

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Program Goals

No profit

Enhance corporate reputation

Mitigate negative criticism from social/political entities

Program Goals

Little to No profit

Education of emerging consumers

Experimentation of new programs, products.

Membership.

Corporate Social Responsibility +

Corporate Social Responsibility

Program Goals

Profit at a certain level

Conforms to certain systems and processes

Commercial Realm

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SC Johnson

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SC Johnson

prepared for: client or contact name title or additional names authors: stephen palacios executive...

Documents

value slide

csr initiatives

csr activities

hispanic slide

racesethnicities slide

profit slide

regulatory agencies

trajectory slide