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Anne Landman's Collection

A Study of Ethnic Markets.

Date: Sep 1969
Length: 240 pages
501989230-501989469
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Abstract

This R.J. Reynolds marketing document shows how cigarette marketers viewed U.S. ethnic markets in the 1960's. While today cigarette companies are often cagey about admitting they target certain ethnic groups for their products, this document states right up front that "Since 1965, R. J. Reynolds has spent $5,260,000 tailoring advertising to the Negro, Spanish-Language, and Jewish special markets."

The document gives demographic information about the "Negroes, Spanish-Language and Jewish markets" in the U.S. and then makes general assumptions about these markets. In profiling the African-American market, for example, the document contains the following descriptions and conclusions:

"In the typical sociological diagram of American power and prestige, the Negro woman is at the bottom of the heap. Above her is the black male, then the white female, and, at the top, stands the white male. The majority of Negro women are still imitating the styles and attitudes of white women who are considered more sexy and attractive. The white image is deep inside them, planted there by a lifetime of exposure to white standards of beauty as reflected in the media. Now a movement is underway to elevate the Negro woman, to reshape her vision of herself from broad-beamed kitchen laborer and head-of-household to svelte femininity, to make her a target of male desire and to give her a separate identity that is black, warm, and cherishable. Although her role is beginning to change rapidly, today it is the Negro male who dominates the movement, venturing along new paths, and presenting an image of defiance and resolution."

[From page 62, Bates No.5019809291]:

Negro masses are only at a point in time where economic security is a possibility. They have only begun to feel the freedom of economic security. Quality rates as a cherished attribute. Negroes buy the best Scotch as long as the money lasts, most marketers agree.

[From page 64, Bates No. 501989293]:

The strategy for advertising the Negroes through their media is to create "Negro upscale situations" and to make these consumers feel that the advertising is directed to them. Negro principles should be used against the background of identifiable settings and situations in which they might find themselves. When considering settin showing an integrated football team at work). Effectiveness depends upon the degree of Negro realism captured in the situations in which the Negroes are principals. Negroes are primarily urban dwellers, and as such, settings and situations used should reflect this. Examples of urban situations that could be used are:

• A scene outside a telephone booth on a busy street;

• A night out at a cocktail lounge;

• Driving an automobile in a traffic snarl;

• Just missing a bus; and

• Leaving a motion picture theater.

Fields

Quotes

[Preface]:

Since 1965, R.J. Reynolds has spent $5,260,000 tailoring advertising to the Negro, Spanish-Language and Jewish special markets...

[501989259]:

Outdoor advertising is considered an effective medium in the Negro community. It allows for showings keyed to concentrated Negro population centers tailored for desired markets. Generally, transit is not considered an effective Negro-oriented media as seldom do routes have confinement within Negro communities. However, like outdoor billboards, subway station billboards in Negro areas can be very effective.

[501989263]:

Negro radio, of all media directed towards this segment of the population is undoubtedly the best, and most efficient means of reaching the Negro. This medium is universally available with several hundred stations throughout the country programming all or a portion of their broadcast day for the Negro...

In the typical Sociological diagram of American power and prestige, the Negro woman is at the bottom of the heap. Above her is the black male, then the white female, and, at the top, stands the white male. The majority of Negro women are still imitating the styles and attitudes of white women who are considered more sexy and attractive. The white image is deep inside them, planted there by a lifetime of exposure to white standards of beauty as reflected in the media. Now a movement is underway to elevate the Negro woman, to reshape her vision of herself from broad-beamed kitchen laborer and head-of-household to svelte femininity, to make her a target of male desire and to give her a separate identity that'is black, warm, and cherishable. Although her role is beginning to change rapidily, today it is the Negro male who dominates the movement, venturing along new paths, and presenting an image of defiance and resolution.

[Page 62, Bates No.5019809291]:

Negro masses are only at a point in time where economic security is a possibility. They have only begun to feel the freedom of economic security. Quality rates as a cherished attribute. Negroes buy the best Scotch as long as the money lasts, most marketers agree.

[Page 64, Bates No. 501989293]:

But perhaps one of the most important decisive motivatons of the Negro consumer is best reflected in the results of a regional study about beer among white, Negro and Puerto Rican consumers. Reaction to product benefits (lightness, body, color, etc.) were about the same. Difference occurred, however, when personal versus social motivations were considered. Negroes placed very little emphasis on the social interaction associated with drinking although Puerto Ricans placed much emphasis on it. On the other hand, Negroes placed great emphasis on the personal satisfaction of drinking beer and Puerto Ricans did not. Obviously the point here is that the personal satisfaction derived from a product is perhaps one decisive motivation of Negroes and any attempt to sell them had better take this into primary consideration.

The strategy for advertising the Negroes through their media is to create "Negro upscale situations" and to make these consumers feel that the advertising is dir- ected to them. Negro principles should be used against the background of identifiable settings and situations in which they might find themselves. When considering settings, the "outdoors" (hunting, skiing, sailing) is not felt to be suitable, as these are stiil considered unfamiliar to the Negro in general, and .part of the luxu- ries afforded only whites. However, there are settings which could be universal to both white and black consumers (i.e., Pepsi's commercial showing an integrated football team at work). Effectiveness depends upon the degree of Negro realism captured in the situations in which the Negroes are principals. Negroes are primarily urban dwellers, and as such, settings and situations used should reflect this. Examples of urban situations that could be used are:

• A scene outside a telephone booth on a busy street;

• A night out at a cocktail lounge;

• Driving an automobile in a traffic snarl;

• Just missing a bus; and

• Leaving a motion picture theater.

...Any good strategy will create the music for the campaign theme in the sound of rhythm and blues, which is the pri- mary ,format of Negro-oriented radio stations. The beat, the tempo, and the "feeling" of the "Soul" music is almost instinctively identifiable to the Negro ear which is accustomed to this sound...Disc jockeys, who for the most part consider themselves entertainers, often are the best for the delivery of commercials, provided they do not have a "screaming" delivery often associated with Negro announcers...

Company
R.J. Reynolds
Author
Holland, Gehrmann
Recipient
Presumed recipient, R.J. Reynolds
Region
United States
Litigation
Minnesota Selected
Operation/Project
Ethnic marketing
Type
MARKETING RESEARCH
REPORT
Named Person
Reynolds, R.J.
American
BAT
B&W
Liggett
Loews
Lorillard
Philip Morris Inc
RJR
William Esty
Parke Gibson & Assoc
Joesph Jacobs
Cencus Bureau
Fortune
Opinion Research
Black, J.
Harvard Business Review
Proctor & Gamble
Evans, W.L.
Center For Research in Marketing
Crest
Colgate
Commerce Dept
Amsterdam News
Afro American
Pittsburgh Courier
Ebony
Jet
Tan
Sepia
Life
Wook
Tuesday
List of Negro Publications
Business Week
Natl Housing Producers Assn
Greyhound
Basie, C.
WAOK
WERD
WIGO
Atlanta Daily World
New Crusader
Atlanta Inquirer
WENN
WJLD
Birmingham World
Birmingham Times
Birmingham Mirror
True Story
List of Chicago Negro Comm Media
True Confession
Southern Christian Leadership Confe
WCIA
Stokes, C.B.
Call & Post
Cincinnati Herald
WABQ
WJMO
KNOK
Post Tribune
Dallas Express
Fort Worth Mind
In Sepia Dallas
List of Detroit Negroes Media
KCOH
KYOK
Houston Informer
Forward Times
KPRS
Kansas City Call
KGFI
Stokes, L.
Los Angeles Sentinel
Wdia
Memphis World
Milwaukee Courier
Milwaukee Star
La Weekly
Wnjr
Katz
Nj Afro American
List of NY Blacks Media
WRA
WHTH
Norfolk Journal & Guide
Philadelphia Tribune
Philadelphia Afro American
Richmond Afro American
List of St Louis Blacks Media
List of References
Clay, W.
List of Ca Metro Blacks Media
List of Washington, D.C. Negro Media
UCLA, University of Calif. Los Angeles
Mexican American Study
Ted Bates
Needham Harper & Steers
Pepsi Cola
Coca Cola
Shaeffer
Kraft
Dancer Fitzgerald
Compton Grey Young & Rubicam
Louis, D. Albertini
Colgate Palmoltive
Caballero, E.
Petgen, A.
Medmark
Ny Times
Novella
Temas
Pimenta
Sullivan, E.
Velilla, M.
Persuasian Research
Ny Daily News
Ny Subways Advertising
Bacardi
Canada Dry
El Pico Coffee
Campbells Soup
Benton & Bowles
El Diario, L.A. Prensa
Vanidades
Tv Guide
Lis of Spanish Radio Markets
List of Spanish Publications
Gillette
Pulse Study
List of Jewish Publications
Fitzhugh, H.N.
General Longshore Workers Union
Richmond Chamber of Commerce
True Confessions
Consolidated Bank & Trust
King, M.L.
Small Business Administration
Carmichael, S.
Johnson Publishing
First Research
List, O.F. Major Negro Radio Markets
NYC Board of Education
Quaker Oats
Pulse
ABC
Best Foods Hellmans
Pan Am
Pimienta
List of Spanish Television Markets
List of NY Spanish Movie Theatres
Hadassah
Bnai Brith
Subject
Target/ethnic (targeting ethnic markets)
Target/Low-Income (Target Groups)
target market
Ethnic marketing

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~ N W r
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~ PREFACE Since 1965, R. J. Reynolds has spent $5,260,000 tailoring advertising to the Negro, Spanish-Language, and Jewish special markets. The consumers in these markets have grown steadily in numbers, and, collectively, now comprise a potent force of about 38,000,000 potential customers. Together they represent 19% of the total U. S. population. Today's competitive pressures demand that firms become more sophisticated in marketing strategy development and execution. Marketers are required to gain broader and deeper knowledge of each distinctive market segment. Advertisers must become in- creasingly more skillful not only to reach efficiently but also to influence effectively. This document is structured to allow marketing professionals to determine for themselves whether or not they want to direct part of their marketing effort to the Negro, Spanish-Speaking or Jewish consumers. If a decision is reached to establish a franchise in these special markets, this document contains the information necessary - to.develop the required marketing strategy. Quantitatively, this presentation is not intended to represent the actual situation. The accuracy of available standardized data on these groups is hampered by the shortcomings of both research availibility and measurement methodology, as well as by obsoles- cence. However, the figures are the most accurate available. They were gleaned from the best sources available, cross checked, and, in my opinion, can be used to make sound decisions concerning advertising expenditures. Qualitatively, it represents the con- clusions of the leading experts in the field including those of William Esty, D. Parke Gibson and Associates, The Joseph Jacobs Organization, and the WINSTON Brand Group. Finally, since no document with the breadth and depth of this one has ever been compiled for R. J. Reynolds concerning these market segments, this is not a final statement; rather, it is only a beginning. A1V'Vk4LyvV11 Gehrmann Holland September, 1969 ~ 0 .~
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50,98 9233 i J
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R. J. Reynolds L NEGRO MARKET STUDY I. Profile of the Negro Market A. B. C. Population income/Employment Education II. Media Planning A. B. Negro Media Usage Rationale Media Analysis 1. Radio 2. Television 3. Newspapers 4. Magazines C 5. Sunday Supplement 6. Outdoor/Transit 7. Special Publications III. Media Directory IV. Advertising Planning A. Nature of the Market B. Reaching (Strategy Development) 1. Negro-Oriented Advertising 2. Neutral Advertising 3. Integrated Advertising C. Influencing (Execution Development) Exhibits 1. Guidelines for Negro-Oriented Advertisin g .c ~ 2. Guidelines for Integrated Advertising w P (Cont. )
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V. Competitive Advertising Expenditures v V2. MetroMarkets , 2
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R. J. Reynolds ' NEGRO MARKET STUDY I. Profile of the Negro Market A. Population The pre-census forecast shows the U. S. Negro population. . . - totals over 22 million. Since they constitute 11.2% of the total population, up from 10.9% in 1960, they continue -- to be a minority group. However, the Negro population is increasing at a faster rate than the white's. The white population is estimated to have grown 12.6% since 1960, the Negro population by 21.1% during the same period. Β• Birth rates have been declining for both the white and Negro races since 1957. However, while the birth rate was 16.7 babies per thousand population for whites in 1967, it was 25.4 for Negroes. Among Negroes, females out-riumber males 11.6 million to 10.7 million. Looking into the future, the Census Bureau says that there will be about 28 million Negro-Americans by 1980 and more than 35 million by 1990. They will account for 12.4% ofΒ•the total population in 1980 and 13.6% by 1990. The Negro labor force is expected to increase by almost four million from 1965 to 1980, while the total labor force will be adding 23 million. These statistics, as well as other factors, indicate that Negroes are destined to have t~ .
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an increasingly larger role in American life in the future. Although they represent only 11.2% of this country's total population, Negroes make their presence felt because, of the more than 22 million, 90% are concentrated in 78 cities. In these markets, they constitute 25% of the population. Approximately one-half are concentrated in the top 30 U. S. Negro markets. More dramatic is the fact that while 31% live in the top ten Negro MetroMar- kets, only 23% of the total population is contained in these same markets. About one-fourth of the nation's Negroes reside in New York, Chicago, Detroit, Philadel- phia and Los Angeles. The first Census in 1790 counted nearly 700,000 black people, about 1 in every 5 Americans. In 1860 they were about 1 in 7. When America stopped importing slaves, birth became the only basis of population growth. Africans did not voluntarily rush to America as the white European immigrants did, so the white population grew much faster than the black, forcing the earlier high percentage to decline. In the days of slavery, and for many years afterward, most Negroes lived on farms. At the turn of the century 80% of them still were in the rural areas, but then farm- ing changed. Machines began to'replace people on the C 2
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farms and they had to move to new places and to new kinds k.. the white population. of work. In 1940 only about a third of the Negroes lived on farms but in 1960 the proportion went down to 8%. Now it is about 7%, slightly higher than the percentage for Most of them clustered in the central cities of our lar- gest metropolitan areas. From 1950 to 1968 the total Negro population increased by 7 million, and 5 million of the increase was in the central cities of our metro- politan areas. More than half (54%) now live in central cities. So, starting out as farm people they have now become urban residents. The white people who were farmers also moved from the farms to the cities, but then went on to the suburbs. Considering only the metropolitan areas, most of the Negroes are in the central cities and most of the whites are in the suburbs. From 1960 to 1966, Negro metro pop- ulation increased by 21%, almost all of it occurred within central cities. By contrast, metro white population increased 9% and all of it occurred outside central cities and in the suburbs. The most recent figures indicate a continued increase in the number of Negroes in the central cities and a slight increase in their suburban population since -1960. 3
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As they moved from the farm to the city, they also moved from the South to the Nor-th and West. In 1860 the pop- ulation was 4.5 million including 4 million slaves. At that time 92% of all American Negroes lived in the South.* In 1900, 90% were still there, but then they began to spread out. By 1960, this figure was down to 60% and the 1968 estimate is 53%. The South lost a Negro pop- ulation of 4 million between 1940 and 1966. B. Income/Employment It is estimated that the 1970 American Negro's annual purchasing power will be $32 billion. This ranks tenth highest among all nations of the world. Yet as a group, Negroes are in poverty. Even though Negro families have increased'their average annual earnings 60% since 1950, they continue to earn less money than the average white family, although the average Negro family tends to be larger. Nine percent (9%) of all U. S. families are Negro but they receive only about 6% of the aggregate national income. Their pay is lowest in the South and highest in the West and Midwest. Between 1960 and 1966, *The Census Bureau counts Maryland, Delaware,,Kentucky, Oklahoma, West Virginia, and the District of Columbia as "South", along with the states of the Old Confederacy. 4

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