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...
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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
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R. J. Reynolds
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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
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2. Guidelines for Integrated Advertising w
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(Cont. )
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. •
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%
of•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~ .
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
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
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
the median annual income of non-white** families as meas-
~
ured in constant 1966 dollars by Fortune, increased by
roughly 33%, to about $4,600. The median figure for
white families during this period rose by 20%, to about-
$7,700. Negro income as a proportion of white income
advanced from 55% to almost 60%. The 1969 median income
for Negroes is estimated to be $4,939 and for all families,
$8,017. At the same time, the proportion of Negro fami-
lies below the poverty line has declined significantly.
In 1959, half the country's non-white families lived
below the federal government's line ($3,300 for a non-
farm family of four, with two children). By 1966 the
rate was down to 35%. Meanwhile, in 1950, only 1.6%
of the Negro families had annual incomes of $10,000 or
more but by 1966 this,figure drastically jumped to 12.2%.
One reason their incomes have traditionally been low is
that Negro families are three times more likely to be
headed by a woman, a lower wage earner than men, as are
white families. In addition, the earning power of the
black worker often is lower than that of the white even
**Bureau of Census figures, used by Fortune, refer to non-white
rather than to Negro. The non-white category Included Indians,
, Orientals and others. However, since Negroes make up 92% of this
category, "non-white" data is indicative of their situation. It
is not felt that, statistically, the remaining 8% of the non-white o
population would drastically change•the actual Negro situation. -+
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when they have both had the same amount of schooling.
Another reason for the low`income level is that so many
Negroes have low-paying jobs. About two out of five
Negro men and more than half of all Negro women who work
are service workers, laborers, or farm workers. But the
trend is away from the low-paying jobs. A comparison
of 1960 and 1967 employment figures shows that 169,000
fewer Negkoes worked in household service, 70,000 fewer
were laborers, and 453,000 fewer worked on farms in 1967.
At the same time the number of Negro professional, tech-
nical, and crafts workers increased by about 1.4 million.
However, Negro representation in the professions and in
some skilled areas remains proportionately small. Negro
men represent 10% of the employed males in this country,
but only 2% of the doctors, 2.5% of the dentists, 1.5%
of the electricians, and 0.5% of the engineers. Negro
women represent 13% of the employed women but only 2.4%
of the lawyers, 5.6% of the professional nurses, 6.5%
of the medical-technicians, 2.4% of the telephone opera-
tors, 1.5% of the secretaries, and 8.8% of the elemen-
tary school teachers.
On the other hand, they do have their full share of some
jobs, including clergymen, social workers, cosmetologists,
-and dieticians. They have a higher share of mail carriers,
masons, metal workers, plasterers, service station attendants,
6
furnace men, laundry workers, packers, taxi drivers,
~
,
elevator operators, and practical nurses than do white
people.
While Negro professionals historically have concentrated
in fields serving their race (medicine, law, ministry)
they have begun to move into the "mainstream". Between
1950 and 1961 the number of Negro architects increased
by 77%, and engineers by 200% and this trend has contin-
ued through the 1960's.
There is some black ownership of almost every conceivable
-kind of enterprise, from hotels and radio stations to
banks, insurance companies, management consulting firms,
and supermarkets. Of those Negroes who are self--employed,
178,000 have farms, 1,200 have clothing stores, 400 own
furniture stores, 300 own household appliance stores,
2•,600 have gasoline and service stations, over 8,000 have
trucking services, 4,000 are in-wholesale trade, 13,000
have food and dairy stores, 15,000 have eating and drink-
ing places, and 1,700 have miscellaneous retail stores.
Even though these employment statistics are more encour-
ag_ing now than in earlier years, they are deceiving because
unemployment is still a major problem for'Negro Americans.
An estimated 638,000 Negroes were unemployed in 1967.
This included more than 101,000.married men. Compared
7
with white workers, they are twice as likely to be out
~
of work. Their total unemployment declined slightly
from 7.4 in 1967 to 6.8 for the first six months of 1968.
In ghetto areas, one available Negro worker out of every
three is either unemployed or seriously underemployed
(working for substandard pay or working only part-time).
Nationally, 14% of the Negroes and 3% of the whites are
on welfare.
C. Education
The trend for higher education is definitely up. Each
year there are fewer dropouts and more high school grad-
uates and college students. In 1958, two-thirds were
high school dropouts while in 1968 more than half were
completing the twelfth grade. Girls typically completed
more years of schooling than boys. However, from 1960
to 1966, this pattern reversed. Today, the median number
of years of school completed by non-white males between
the ages of 25 and 29 is 12.1, compared with 11.9 for
females. Only 77% of the young Negro men and women aged
16 and 17 were enrolled in school in 1960. In 1966 that
figure rose to 83%. The proportion of young adults who
have completed high school continues to rise
for both
races, although there is still a gap between black and
, white. However, non-white males are continuing to narrow
the education gap. The difference in median years of
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schooling completed is down from nearly two years in 1960 2
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R. J. REYNOLDS
NEGRO PURCHASING POWER HISTORY
America's almost 23-million Negro consumers live in 5.8 million
households and currently spend more than $30-billion a year for
consumer goods and services. The fact that the Negro market is
a growing market is evidenced by the change in Negro purchasing
power from 1940 to 1970:
1940 3 billion
1950 11 "
1961 20 "
1965 27 "
1966 30 "
1970 32 " (projected)
Source: U. S. Census
CGH:jpg
8/28/69
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R. J. Reynolds
NEGRO MARKET STUDY
II. Media Planning Implications
A. Negro Media Usage Rationale
Most research indicates that there is no quantitative
rationale which demands the use of Negro-oriented media
merely to reach the Negro consumer. However, most media
basically reflect the interests, desires, and aspirations
of their majority audience, which is largely middle-class
white. Classification of these media as "white-oriented",
would be far more accurate and functional than their
most frequent classification as "general" media. To
be effective, advertisers should use customer oriented
media in which over 22,000,000 Negro-Americans, who look
specifically at most situations as "Negroes", can truly
identify with in the same manner as white consumers do
with media oriented to them.
The consensus of opinion today is that if brand awareness
is the primary advertising objective, then national adver-
tising does generally reach this audience in proportion
to their place in the total population. (This is espe-
_cially true of brands that are so heavily advertised as
WINSTON.) However, if the key objective is to sell more
of Product A to more Negroes, then they must be commu-
M.
nicated with, not merely reached. It is quite likely
that there are brands which historically have utilized
only general media but are Number One among Negroes.
However, these brands, more likely than not, achieved
this position in past years. In today's enviornment,
it is doubtful whether brand leadership among Negroes
can be attained, or held,-without the use of Negro media
and specialized advertising. Negroes feel that most ads
placed in general media not only are not directed to
their particular needs but also tend to use appeals with
which they cannot identify. Therefore, Negroes do not
"turn off" advertising in general media; rather, like
all consumers, they respond best to advertising that
appeals to their specific interests.
The point here is that the widespread assumption that
"general" media reaches the Negro consumer anyway and
that special campaigns aimed at Negroes are not neces-
sary is a doubtful premise. Even to the extent that
it is true, "reached" and "persuaded" are two entirely
opposite marketing objectives. Negro media is not neces-
sarily important for coverage. Its strength lies in the
emotional influence it has on its audience. Negro media
should be viewed by marketing strategists on the basis
of "audience delivered" (this one numbers over 22 million)
2
rather than, as often is t-he case, a questionable adjunct
of general media. B: Media Analysis
Negro media provide a platform for specially tailored
appeals to achieve maximum effectiveness in selling the
Negro market. Negro non-broadcast media also provide
almost 100% non-waste circulation by their isolation/
penetration of Negro consumers only. Negro-oriented
vehicles include: radio, television, newspapers, maga-
zines, a Sunday supplement, special publications, and
outdoor. Except for magazines, most of these vehicles
are local in nature, serving the Negro population within
particular markets. Negro consumers are served by four
major consumer magazines, an estimated 172 Negro-oriented
newspapers, about 537 radio stations, and one TV channel.
According to one study, during their leisure time, Negroes
listen to the radio 3'9$ of the time (the figure for whites
is 15%); watch TV 28% of the time (44% for whites); read
newspapers 26$*of the time (37% for whites); and read
magazines 7% of the time (4% for whites). These figures
indicate that radio is potentially a more effective and
efficient medium and television and newspapers less so
among Negroes than among whites. One study indicates
,
that middle-class Negroes react negatively to Negro radio
programming but are avid readers of Negro magazines. On
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the other hand, most consultants and advertisers agree
I-
that Negro programmed radio leads to the heart of the '
Negro mass. With a few notable exceptions, Negro news-
papers generally are not highly regarded and from the report-
ing standpoint do not compete favorably with the white
press. However, it is generally recognized that while
Negro newspapers do not necessarily sell products, they
do a very creditable job of merchandising the idea of a
Washington,
All of the Negro publications combined cannot
come close to covering and influencing the Negro
market as does radio. A recent project by the
Opinion Research Corporation indicated that the
average Negro listened to radio more than, and
company's social involvement. Except in
D.C., there is no Negro TV channel.
1. Radio
was interested in print media less than, the
average white person. A Harvard Business Review
study agreed and indicated that Negroes spend
most of their media time with the radio.
In a survey made by the Center for Research in
Marketing, it was found that Negroes could recall
about twice as many commercials from radio as
whites, particularly if heard on Negro-programmed
stations. Proctor and Gamble, with heavy television
cl
4
advertising, advanced Crest to become the Number
One toothpaste brand in all markets except the
Negro one. Colgate, which was Number One nation-
ally also uses heavy television advertising.
However, through its effectiveness in Negro radio,
Colgate remains the Number One brand among Negroes
although Crest is the national leader.
Negro-programmed stations play soul music or
rhythm and blues. Rock and roll holds a few
charms. Gospel music is for the older folks.
But given rhythm and blues and a Negro disc
jockey, the program is usually a success. Negro
radio means Negro commercials and Negro disc
.jockeys. In addition to music, messages and pro-
grams directed at the predominately Negro audi-
ences consist of daily hot lines or phone shows,
Negro oriented news broadcasts, "Focus" inter-
views with black leaders, church bulletin boards,
obituaries, job-opening directories, lost and
found announcements and Negro variety shows.
Radio has lost much of its appeal for much of
the upper income group. But they comprise only
22% of all Negroes. For the younger Negroes,
and therefore the masses, radio rates tops.
5
2. Television
No national Negro-oriented television vehicles
exist. At this point, only one local television
station is generally programming toward Negroes,
WOOK-TV in Washington, D.C. Being a U.H.F. station,
its potential is limited, of course, to U.H.F.
penetration. There are, however, a number of
black-oriented television shows, and more are
being planned. Thus, within general television,
there will be black-oriented programming.
3. Newspapers
The Commerce Department counts 172 active Negro
newspapers, all but two are weeklies, with a
reported circulation of nearly 2 million. Those
newspapers with the largest circulation are
concentrated in the top 25 Negro markets. The
most highly regarded ones are the Amsterdam News,
the Afro-American, and the Pittsburgh Courier.
The two dailies are in Chicago and Atlanta.
Some marketers sense that newspapers are begin-
ning to compete favorable for the advertisers'
money.
4. Magazines
References to Negro magazines really mean Ebony;
Others include Jet, Tan, and SeRia. F.bon , this
market's showcase medium, claims a subscriber ~
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medium income of almost $7,046 ("middle-class"),
compared with $4,939 for all Negro families.
It is a Life - format monthly national magazine
with a circulation of 1,200,000. It has a broad
mass audience and is published in four regional
editions: Eastern, Southern, Mid-Western, and
Far-Western. Ebony has made an extensive effort
to win advertisers, and within the last few years
has taken great strides in this direction. The
magazine maintains a staff of trained merchandis-
ing men to cover major cities--each with large
Negro populations. These men act as local mar-
keting experts and cultivate contacts for the
jobbers, brokers, wholesalers, and chain and
independent retailers. One marketer says that
"Ebony is for the Negro who has it made".
Jet is a newsweekly magazine in digest form,
which reports news of importance to Afro-Amer-
icans., Circulation is about 400,000. Tan is
a monthly "confession/homemaking" magazine appeal-
ing to women. Its format is similar to that of
True Story or True Confessions. These three
magazines are all controlled by the Johnson
Publishing Company. Se ia like Ebon is a Life
format monthly magazine of good quality. It
7
also is a magazine of general interest to the
Negro community, appealing to a broad mass audi-
ence. While national in scope, its circulation
is small (57,000).
5. Sunday Supplement
The four-year old Negro supplement, Tuesday, is
offered once a month as an Ethnic medium within
the regular Sunday newspaper. It is inserted
into 19 metropolitan newspapers which cover
practically every section of the U. S. Tuesday
has a circulation in excess of two million and
advertising can be bought only on a national
basis.
6. Outdoor/Transit
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 confine-
ment within Negro communities. However, like
outdoor billboards, subway station billboards
in Negro areas can be very effective.
7. Special Publications
There are numerous opportunities within the
Negro.market to take advantage of special issue
8
publications, usually one-time editions. Some
newspapers such as the Afro-American newspapers
schedule regular supplements (i.e., Holiday
Hosting, Beauty, Travel, and other subjects)
which offer some poss--:bility for usage.
R. J. Reynolds
NEGRO MARKET STUDY
Media Directory Index
I. Media Directory Summary
II. Exhibit I
Exhibit II
Exhibit III
Exhibit II/III
Exhibit IV
Exhibit V
Negro Radio Markets
Negro Newspapers in Major Negro Radio Markets
Additional Negro Newspaper Markets
Negro Newspapers, Summary of Group Buys
Negro Magazines
Negro Outdoor
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R. J. Reynolds
NEGRO MARKET STUDY
III. Media Directory
I
A review of the specialized media available for reaching the
Negro market indicates that opportunities exist in all major
media categories, with the exception of television. Aside
from radio, the selection options within each media category
are very limited.
1. Radio
Negro radio, of all media directed towards this segment
of the population is undoubtedly the best, and most effi-
cient means of reaching the Negro. This medium is uni-
versally available with several hundred stations through-
out the country programming all or a portion of their
broadcast day for the Negro. There is evidence that the
effective coverage area of Negro radio stations is gen-
erally greater than comparable power general stations
since the Negro radio listener tends to seek out Negro
programmed stations. Local radio research although of
questionable reliability, particularly in measuring Ethnic
audiences, indicates that the Negro radio share of audience
is generally in proportion to-their share of Metro area
population, i.e., the larger the percent of total market
population represented by the Negro, the larger the share
of audYence attributed to Negro programmed stations.
0
(See Exhibit I-on Negro Radio Markets.) ~
~
. . a~
W
2. Television
Negro television, as such, is virtually non-existent.
Although there are some stations which schedule occasional
Negro discussion programs, for the most part, the only
attempt that television broadcasters appear to have made
to attract the black audience is through the use of Negro
talent in regularly scheduled news, weather and sports
d
features. Network scheduled shows starring Negroes (Jul•ia)
are aimed more at the mass audience than at solely Negroes.
3. Newspapers
Negro newspapers, with some few exceptions, are restricted
primarily to small circulation weeklies. In most instances,
their circulation is not audited, and they provide limited
coverage of the Metro area Negro households. In major
centers of Negro population, the dominant general appeal
newspapers provide better physical coverage of the market
than do the Negro newspapers. Negro newspaper details
are shown on two lists -- a list of Negro newspapers
available in major Negro radio markets and a list of
Negro newspapers available in other markets. (Exhibits
II and III)
4. Magazines
Of the seven national magazines (including one newspaper
supplement editorially aimed at the Negro, the dominant
vehicle is Ebony, with over one million circulation, and
substantial pass along readership. (See Negro Exhibit IV.)
2
5. Outdoor
Outdoor advertising represents another effective means
of delivering reminder impressions to the Negro market.
This medium in the form of three sheet (Criterion) and
six sheet (Junior) posters can be purchased so that show-
ings are confined to locations in areas of heavy Negro.
population concentrations, and is generally available
in most of the larger markets. (Exhibit V)
C~1
3
c®
R. J. .t°`.'NCL7;: T0d.1t;CU COAPANT
t Nf:GRG NSn5FAFIItS IN MAJOR NHCRO RADIO lSAN1E?S
Negro
Netro Area
Negro % Of
Group
L n
ee
Metro Area Population l9tt. Pop. Nrvsyaper C f.dition Circulation L:n
:'ate
San Franeiseo- 3C2,000 9.7 Sun Reporter (Tab.) Sat. 9,549 ABC .18
Caklard, Calif. Voice Tl:ura. 17.,5:A .15
Savannah, 4a. 76,000 35.1 Herald (Tab.) ;:at. 4,000 .15
Shraveport, h. 11-"000 35.1 Sun Tnure. 12,71.8 1U
St. Louis, lf0. 366,000 15.9 Argis Fri. 8,924 .20
East St. Louis :4onitor tu 7,655 XA
Maorican NP. 9.90;) NA
Sampa-St. Petersburi, Pla. 103,000 11.1 Sentinel-Bu11etln (Tab.) Tues. 15.0D3) .30
Sat. 1v,500)
Nevs-Reporter Sat. 1.,520 .15
D. C.
Yashington 588,030 24.0 Afro-AAerican (2) Tues. 8,oJ4)A8C
, ) .35
Sat. 5,35:+)Ax
/Nevspaper can be purchssed as part of a group. - See Drhibit II/III
ABC - ..udit Bureau of Circulation
9/15/E9
w:B:2 ::
P.ie Fccr
.<i11'_ne Color
~ 17.78 Av:ilable
:1.'C :.vLilable
25.57
ELZ6 B6105
S(N:bIT :::
Fa;e :%.e
R. ~. aEYNCUI51•OJ,ACrO
i aL~1TiCNAL h'r.C.2: N'r:41 AFk.1 F;..nYsT`,,
J:eero
Y•etro Area
Segro Z Cf
^aroup
Orer.
!:etro l.res l opulatSon ?9ct. Fop, IKVey~er Codo/ k:oltlon Circulation J.ir.e rtate
Tcleco, Chio 5J,300 7.7 Bronze Naven J:R 7,900 S. w
Tulsa. (7kla. )3,100 7.3 Olcl.ahotna lhgle NA • 8101.9 NA
:aco. Tex. 0,600 16.9 lSea5enger NA 3,cwo KA
jest Fala Seach, Fla. 63,600 21,1. Fhoto News Thurs. 2,370 .12
iHchita, l(aas. %.1,700 t.G FnliEhtener Sat. 2,400 .15
7filrinaton, N. C. :0,800 221.3 dournal ~ Sat. 6,025 .15
2cunEatovn- 55,600 9.8 Buckeye Review NA 2,836 NA
warren. Chio
Nlbvspapsrs can be parcJrs.d as part of a kraup. - 5.* Fkh1ESt II/III
Y11; ne Color
Avalt.bl.
SLZ6 e6toS
E
h. J. k'FY NuLLA:, 1'ObACCO C0NPANY ' EVIIIIT IV
MAGA%.l bl•S PaE;e One
P
bli
i t
1':,,pe l0l
Pa1'e 4-C
u
cat
on rrcguency Circulation
* Closin
Dates
Cost C~j Cost CFM;i . g
Ebony _bionthly 1,:~Or,CGG(AbC) $ 7,041. $ 5.87 ~P10,890 $ 9.07
. B&W - 26th of 3rd preceding month
4-C - 26th of 3rd preceding month
Tuc~c':~y r.vnWhxy 1,7u0,(XX) 1.1,2cW 6.59 13,600 8.G`0 D&W - 55 days (Sth Mond3y) prior
( hc%s psper
Sun; ~lem~rit)
. to date of issue
Vet
Weekly
400,000 1,025
2.56
1,400(2C)
3.50 4-C - 55 days (8th Monday) prior
to date of issue
BdN - lst Wed, prior to on-sale
an
onthly
50,OU0 750
•00
- 1,166
.77 (iss. Thurs. prec. cover date
2-C - lst Wed. prior to on-sale
(iss. Thurs. prec. cover date
B& - 26th of 3rd preceding month
Pepia
Monthly
55,000(,?,st. ) 500
9.09
NA 4-C - 26th of 3rd preceding month
B&,W' - 18th of 3rd preceding month
4-C - Not Available
*Oprn kate
HCF9: based on circulation
BLZ6 861OS
\0
`I7%
Cc
Ii . J . IFYhVLLiS TOBACCO CVNIl~'ANY
r:r;C: Z1NT5
EXHIBIT IV
Page Twa
t
bli
ti
P _ Page I3&w
F
t
i
l Page 4-C
u
ca
on reguency C
rcu
a
ion Cost* C'Idf C
st CPNW Closin
o F;
Ncrre Traveler - tionthhy 53,000 ~ 762 $14.38 $ 1,115 $21.00 B&W - lst of preceding month
& Cunveuitieniee;r
Crise5
Monthly '115,000
862
7.49
1,65G
14.35
4-C - 25th of second prec. month
BddB - 1st of preceding month
MkCP hb. )
4-C - 1st of preceding month
*Gpen }tate
/lCPYI based on circulation
'i/ 15/w,
6CL6 96L0S
Ir-
R. J. ReYnolds
NEGRO MARKET STUDY
IV. Advertising Planning
A. Nature of the Market
Few fields of marketing are in so pronounced a state of
confusion as that of selling to the Negro consumer. Some
firms even seem uncertain about how to proceed. They
are unsure of choice of media, type of appeal, mode of
presentation, and above all, the element of good•taste.
Systematic market studies are scarce and much of what
is available comes from Negro media and so may serve
specialty interests. In addition, Negro consumers them-
selves are responsible for confusing many potential adver-
tisers in Negro-oriented media. For instance, some demand
to be referred to as black, another group is sensitive
.,
to any name other than Afro-American, another group wants
to be called Negro, and some still insist on "colored".
Despite these handicaps, some guidelines can be set forth
which reveal some very important distinguishing characteristics.
This market can be defined as two predominant groups,
the "haves" and the "have-nots". The Negro middle class,
the haves, is socialogically farther removed from lower
income Negroes, the have-nots, than middle class whites
are from low income whites. The five million Negro mem-
I-
bers of the middle class (often defined as those with
family incomes of $6,000 or more) not only control a large
fraction of Negro discretionary spending, but also are
sensitive to poor taste and willing to do something.about
it. This middle class, while only about 22% of this
Ethnic group, comprises the most influential buyers among
Negroes. Usually, these people are the elders and more
often than not follow the teachings of the late Dr. Martin
Luther King and, in addition, pattern their living on white
norms.
The middle-class Negro has little in common with the
low income one. The gulf between poor and prosperous
widens as white collar and professional jobs open up
faster than the much-needed blue collar jobs. The Negro
market is very young with a median age of 21 as compared
with 29 for the white market. The younger segment of
the Negro population, the low class, is divided. One
group wants only to leave the ghetto. The other pre-
fers to stay in the ghetto and go "militantly Black".
The youngster who idolizes Stokely Carmichael or goes
all out for the "natural Afro look" does not identify
with his elders.
Ln
It should be understood, however, that there is a trend o
~
%0
`_ toward "blacks getting together". This is evidenced °D
N
m
2 C
in some identifiable for-ms. Membership in ethnocentric
L_
organizations is on the-increase. More magazines and
newspapers serving black readership have been initiated
One of the most successful contests held recently was
the "Miss Black America" Contest. This is not to indi-
cate that efforts to eliminate discrimination in the
Miss America Contest are being abandoned, but rather
that the Negro community collectively will accept and
support a Miss Black America. Organizations are being
created, such as the National Housing Producers Asso-
ciation, which is comprised of black contractors, join-
ing together to achieve certain goal-s.
The Negro society today is essentially a matriarchal
one with the woman of the house making most of the deci-
sions. One out of four Negro families has a female
head-of-household as compared with one out of ten white
families. They play a more important role in holding
i
families together than their white counterparts. In
the District of Columbia, 53% of the potential Negro women's
work force is employed; Florida is second with 52% and
the greater metropolitan New York market is third with
50%. With the average employed Negro woman contribut-
ing about 32% of the average median income, her consumer
, .
advice is heeded. However, as employment opportunities
open up for the Negro male, he is beginning to play a
~
0
~
3
more important part in family life.
In addition to the emergence of the Negro male to become
an influential decision maker, is the search of the Negro
female for her real identity. In the typical sociologi-
cal 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.
The Negro market means many things to many people.
To some firms, the Negro is a consumer like anybody else.
To others, he is among many special markets in the demo-
graphic spectrum. But to an increasing number, he is
4
one of several Ethnic groups that deserve special con-
A--
sideration. Mr. H. N. Fitzhugh, Pepsi Cola Vice Presi-
dent for Special Markets says, "If companies treated
Negroes as they do everyone else, there would be no
Negro market". What he means is that the Negro is indeed
a separate and distinct market when seen by a marketer
but not so from the point of view of the Negro himself.
Business Week says it this way, "They just want to be
part of the mainstream. Every guy in the street wants
what whitey has. They want the opportunity to live the
life that TV says everybody lives".
Although Negroes have the same wants, desires, and needs
as any other group, there is one significant difference.
He sees America through a prism of 350 years of discrim-
.ination. As a consequence, he has a great need for
recognition'as part of U. S. society. This makes him
hypersensitive to real or fancied slights, whether in
advertising, the retail outlet, or in employment prac-
tices. As a result of this, Negroes generally express
greater national brand loyalty than do whites. They
are sceptical of private label and associate national
brands with quality. Because of this association, they
put more confidence in these brands thereby attempting
to avoid the embarrassment of "being took". From a o
~
marketing point of view, it is important to remember m
N
m
v
5
that loyalty associated-with quality or brand image is
stronger than loyalty associated with low prices or
bargains; white consumers tend to be low price and bar-
gain shoppers. Another reason Negroes consistently buy
the brands that are nationally advertised is that they
are the ones that have the prestige connotation. Negroes
have deep psychological needs and often feel left out
or forced outside. Often the association of a name
product with themselves provides a lift. However, this
brand loyalty discussion is not intended to imply that
Negroes do not switch brands, because they do. The dis-
tinguishing characteristic is that, rather than their
brand preferences being spread over six or seven brands
in a given category, their selections tend to cluster
ar.,ong two or three brands within a particular product
group. And within these two or three brands, they can
be influenced to switch. Joe Black, former major league
pitcher and now a Greyhound vice president, has stated:
"One can safely say that the Negro market is a general
market in itself. It has teenagers, females, million-
aires, paupers, mass and class facets, and the common
denominator that unites it is the psychological inferi-
ority complex that has been generated through fallacious
and outmoded stereo-types".
B. F.eaching (Strategy Development)
In trying to reach this market, there are three operating
6
modes: Negro-oriented advertising, Neutral advertising,
~_j
and Integrated-advertising.
1. Negro-Oriented Advertising
Negro oriented advertising is that advertising which
uses Negro models in realistic Negro situations,.is
placed in media oriented to Negroes, and is executed
so to primarily establish conviction and believability
in the minds of the Negro audience. This is believed
to be the most effective technique for influencing -
the Negro consumer because it reassures him that the
product is meant for him. Effective advertising should
reflect realistic considerations of the Negro consumer
as a Negro, be placed in media oriented to his inter-
ests, and usually should not be white-orierited cam-
paigns with Negro model substitutes.
2. Neutral Advertising
Product advertising, sometimes referred to as pack-
age advertising, is considered neutral, since it
does not.have people, and it can be used generically
in any customer-oriented media. There is another.
form of neutral advertising which is the use of regu-
lar advertising in all media, white and Negro, count-
ing on the basic appeal of the product to sell it,
wherever it is placed.
Neutral advertising is not as influential with Negroes
7
as Negro-oriented advertising because of its neutrality.
~
Because he is so aware and proud of his highly visi-
ble and different outward appearance, he prefers
advertising keyed to him.
3. Integrated Advertising
There is much debate about whether integrated ads,
no matter what the medium, help sell products to
Negroes. Integrated advertisin2 is that which is
prepared primarily for white-oriented media, that
includes Negroes either in starring, featured, or
walk-on roles. It is more a public relations strat-
egy than a marketing strategy. Negroes and sometimes
other non-white models are used with whites in tele-
vision commeYcials and print ads primarily to "secure
a more realistic portrayal,of the role of minority
groups in our national life" and in the companies
which use them, Its use is primarily to fulfill an
official or unofficial commitment to include Negroes
and iden.tifiable members of other minority groups
in advertising. Although it is doubtful that this
is an effective technique to influence Negro consumers,
white reaction generally has been favorable. How-
ever, W. L. Evans, President and Editor of Tuesday
magazine says that "inclusion of Negroes in TV com-
mercials. was part of a social crusade and political
consideration. There was no thought at the time,
8
nor since--to my knowledge--of any relationship between
the use of Negroes in TV ads and sales stimulation.
What the hell does integrated advertising have to
do with motivation of sales? No one knows. And
there is no evidence that there is any basic increase
because of it".
C. Influencing (Execution Development)
To advertise most effectively to this market the key con-
sideration is to determine the decisive versus the non-
decisive motivations of this segment of the market. It
generally is not as effective to aim at the Negro consumer
as such, as it is to aim at his decisive motivations.
The question, then, becomes what are his decisive moti-
vations.
Newly-acquired pride and self-confidence are changing
his buying habits. Advertising must be structured to
appeal to this pride, keeping in mind that this is a
segment of the population which is only beginning to
emerge out of economic doldrums. General media messages
are aimed at the white masses who have "arrived" at a
comfortable economic level. Negro masses, are only at
a point in time when 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,
marketers agree.
most
9
There are changing moods -in the Negro national community.
In both fashion and outlook, there is no single Negro
market and, as has been discussed, there are attitude
differences between age and economic groups. One of the
most significant changes evolves around the word "black".
Blackness is more of a feeling than color description;
and it is especially felt in major urban markets today
and particularly among the younger Negro. The desire
for blackness, or soul, as part of solving their iden-
tity crisis is something that must be understood. A
sense of identity is being accentuated because today,
as never before, Negroes are taking pride in themselves.
Another.motivatiQn is the emerging images of the dominant
male and the romantically desirable female. As has been
pointed out, Negro society has essentially been a matri-
archial one with the woman of the house making most of
the decisions. However, with more career opportunities
available to the male than ever before, plus his increased
education level, his role is changing and supplanting
that of the dominating female; she is beginning to find
her standards of Negro feminine beauty and has begun to
strive to attain them.
But perhaps one of the most important decisive motivations
of the Negro'consumer is best reflected in the results
of a regional study about beer among white, Negro, and
10
CY
Puerto Rican consumers. -Reaction to product benefits
Differences occurred, however, when personal versus social
motivations were considered. Negroes placed very little
emphasis on the social interaction associated with drink-
ing although Puerto Ricans placed much emphasis on it.
On the other hand, Negroes placed great emphasis on the
(lightness, body, color,'etc.) were about the same.
personal satisfaction of drinking beer and Ruerto Ricans
did not.
Obviously, the point here is that 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 to 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 still 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
11
team at work). Effectivpness 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.
There should be no hard and fast rules for hair styles
and mode of dress. Rather, each execution should be viewed
individually to aetermine which would be most appropriate;
whether models should have "bush", "Afro", or "straight"
hair styles (each of these.are distinctively different);
and whether the models should wear the latest Negro fashion
(currently a dashiki), the latest Mod fashions or some
other style.. The deciding factor in fashion considera-
tions should be "good taste".
Copy strategy should not necessarily be different from
that developed for general media. This is particularly
true as long as the benefits of the product the copy
alludes to have universal appeal (taste, satisfaction,
flavor, etc.). A change in copy is not recommended to
CO
12
s~w
`%J
include slang or "in" expressions unless there is suffi-
cient reason, based on the particular situation developed..
There are different levels of "in" expressions which
ofttimes can have a rapid change in usage, and such expres-
sions could be misread as "patronizing" or have other
negative influences. Rather than using "in" words or
phrases commonly felt peculiar to the Negro, it is more
important to correctly and tastefully execute the Negro's
identification in the setting.
The audio execution should provide the music and talent
reflective of the media used. There are different "sounds"
heard in radio today--rock and roll, semi-classical, top
40, good music, country and western, the British sound
and mixtures of these. Importantly, there is the sound
of the Negro's rhythm and blues, gospel, and the "Motown"
sounds and mixtures of these. Interestingly enough,
the rhythm and blues of Negro artists have been under-
taken by white artists, and while some of this is very
good, music in this "distilled" form rarely is heard on
Negro-oriented radio stations.
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
13
accustomed to this sound, To use radio commercials and
music that does not reflect this has to be less effec-
tive than the blending of campaign theme music with the
"black sound".
However, there can be exceptions to commercials only hav-
ing the "black sound". For example, the mystique of the
Count Basie sound is universally motivating. Paul Moriat's
"Love is Blue", another example, had a good play on Negro
stations. Most important to advertisers was the result
of the "EMBRA" commercial when played for ten Negro-pro-
grammed radio stations in five major Negro markets, to
determine how it might be accepted by the audiences.
Air personalities and station personnel, including men
and women, at each station listened to the commercial
and overwhelmingly approved it. While some felt it was
a good change of pace, others pointed out that the music
to them reflected "Negro upscale", "class", and romance.
They concluded that the EMBRA mood is universally appeal-
ing.
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. Many
` companies provide copy to be read live; others provide
0
only an outline and allow the announcer to use his own -+
m
14 ~
a
EXHIBIT I
R. J. Reynolds
i~_
NEGRO MARKET STUDY
to
Guidelines for Negro-Oriented Advertising
A. Select models with extreme care. Skin tones and facial
features must be given careful consideration.
B. Models must be immediately identifiable.
C. Individuals need not be chosen for their beauty alone.
More important, they must be good representatives of
the community.
D. When preparing group advertising, avoid look-alike models.
E. Circumstances, situations and photographic backgrounds
must be created with realism andy believability to the
Negro.
F. Backgrounds, situations, and models must create a sense
of pride and dignity, especially of the male image.
G. Costuming should be reflective of the consumer whom you
are trying to influence.
H. Slang expressions and phrases, popular in the market,
are not recorrimended but may be used with discretion.
I. Relate product message with minimum copy that is easy
to read and is in understandable terms.
J. Consider image-building in preparing print advertising.
K. Use language that is realistic to Negroes. Avoid expres-
sions sions such as pale, lily-white, light and bright, etc.
L. Once a Negro'campaign has been established, consider
using one advertisement that reflects equal employment
(A)
EXHIBIT I (Cont.)
opportunities.
M. Scheduling radio commercials at key times is of prime
k'-
importance.
N. When possible radio advertising copy should be kept to
• a minimum, allowing the local broadcast personality to
sell the product, in his own way.
0. When selecting music or jingles, avoid stereo-type quality.
Select the "sound" that is reflective of the market.
%O
N
~O
EXHIBIT II
R. J. -Reynolds
k-
NEGRO MARKET STUDY
Guidelines for Integrated Advertising
A. Advertising must portray Negroes and identifiable members
of other minority groups in a realistic manner.
B. Models should be selected with extreme care, especially
when choosing for television commercials. Facial features
and skin coloring should be of primary concern. Extremes
of either "too light" or "too dark" should be avoided.
C. Unless it is a "public service" television commercial,
it should be kept in mind that the primary audience is the
majority population--white.
D. Avoid showing Negroes and other minority group members in
stereo-type settings.
E. Avoid suggestion of "interracial couples" and social
settings that would not be accurate portrayals.
F. Avoid physical contact across male/female lines between
majority and minority group members, unless in realistic
setting (i.e., hand shake, crowded elevator, etc.)
d
0
0
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ao
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0
(B) o
R. J. Reynolds
NEGRO ,~IARKET STUDY
V. Competitive Advertising Fxpenditures
P. Lorillard's 1969 Negro market budget was increased 87%
over 1968. Most of this increase was due to the advertis-
ing entry of Newport in this market and the addition of the
outdoor medium. In 1968, Newport was not advertised to Negroes
and True was spending one-half P. Lorillard's Negro adver-
tising budget. However, in 1969, the Negro market budget was
increased 87%, up to $1,128,000 from $601,000 in 1968. Newport
received 58%, or $658,000, and Kent received 34% or $383,000,
of the 1969 Negro market budget. True, on the other hand,
experienced a 71% budget cut, from $300,000 in 1968 to $87,000
in 1969.
British American also had a spectacular budget increase from
$427,000 in 1968 to $1,139,000 in 1969. This was due primarily
to a 70% increase in Kool's radio effort and the addition
of Viceroy commercials on Negro radio.
R. J. Reynolds had the highest Negro advertising budget in
1968. After reducing it by almost 30% in 1969, Reynolds now
has only about 57% of both P. Lorillard's and British American's
expenditures aimed at this special market.
Total WINSTON's 1969 Negro market budget was decreased by.
$104,000, from $469,000 to $365,000. WINSTON SUPER KING
1
Menthol's budget was reduced -,by over 25% and its radio bud-
get was cut almost in half; WINSTON SUPER KING radio was
dropped completely: also, SALEM's budget was reduced by
$132,000.
In 1968, Marlboro had a Negro magazine budget of $45,000 but
in 1969 they spent only $1,000 in Negro newspapers. Phillip
Morris' only other 1969 expenditure in this market was $90,000
for Benson & Hedges, all in Negro magazines. American Tobacco,
also in 1969, is supporting Tareyon, $42,000 in magazines
and $96,000 in radio, and Pall Mall, $48,000 for magazines.
No company is advertising on the one television station and
only Kent and Newport use billboards.
Negrb Advertising Expenditures
(By Company/By Year)
(000)
1968 1969
Total WINSTON $469 $ 365
R. J. Reynolds 900 640
P. Lorillard 601 1,128
British American 427 1,139
American Tobacco 212 209
Philip Morris 53 100
Liggett & Meyers 25 115
2
ATLANTA, GEORGIA
Atlanta, which is the sixteenth largest Negro market in the United States,
is a "new kind of city", and one of the most rapidly expanding cities in
the nation. The Negro market grows with its expansion.
POPULATION
The total non-white population in metropolitan Atlanta is 277,600, which
represents 22 percent of the total population. In the City of Atlanta, an
estimated 236,072 blacks make up 46 percent of the total city population,
an increase of 5.2 percent since 1960. As is the case in most metropolitan
centers, a large proportion of the non-white population lives in the central
city. Long range trends indicate a continuous and substantial increase in
the non-white share of the City of Atlanta.
Percent Distribution expenditures for current consumption:
WHITE t.
NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 22.6 25.1
Food prepared at home 16.6 19.1
Food away from home 6.0 6.0
Tobacco ' 1.6 2.5
Alcoholic Beverages 1.0 1.4
Housing, Total 30.0 29.5
Shelter 12.5 12.4
Rented Dwelling 4.6 10.2
Ovned Dwelling 7.3 2.1
Other Shelter .6 .1
Fuel, light,refrigeration, water 4.0 5.1
Household operations 7.1 6.3
House furnishings-and equipment 6.0 5.7
Clothing, cloth, materials, services 10.7 13.3
Personal care 3.0 4.5
Medical care 6.4 3.6
Recreation 4.1 2.7
Reading .9 .8
,Education 1.1 1.4
Transportation 16.7 13.8
Automobile 15.4 10.5
Other travel and transportation 1.2 3.3
Other expenditures 2.0 1.4
(Over)
..2.. ATLANTA
INCOME
The average non-white household income in metropolitan Atlanta is $6,700.
In Atlanta, 45,100 households are headed by males, with 20,100 households
headed by females. A total percentage income breakdown for 65,200 house-
holds is as follows:
Under $3,000
$3,000 - 4,999
$5,000 - 6,999
$7,000 - 9,999
MEDIA
Radio Station WAOK
110 Edgewood Avenue, N. E.
Atlanta, Georgia 30303
Radio Station WERD
330 Auburn Avenue, N. E.
Atlanta, Georgia 30303
Radio Station WIGO
Georgian Terrace Hotel
Atlanta, Georgia 30383 .
50.1 % $10,000 - 14,999 1.5 %
25.7 % $15,000 - 24,999 .3 %
12.8 % $25,000 and Over 2.9 %
6.7 %
The Atlanta Daily World
210 Auburn Avenue, N. E.
Atlanta, Georgia 30303
The Atlanta Inquirer
787 Parsons Street, S. W.
Post Office Box 9215
Atlanta, Georgia 30314
>LARKETING CLIMATE
The marketing climate in Atlanta is considered good. More companies are
now using Negro-oriented media, cocrynunications, and sales techniques to
reach the black consumer than ever before. Atlanta is believed to have
more Negro home ownership than any other city of comparable size. Atlanta
has an "Operation Breadbasket", which is the economic arm of the Atlanta-
headquartered Southern Christian Leadership Conference. Many companies now
have Negro sales representatives and employees. Atlanta has a good and siz-
able black business community, and it continues its growth. Widening employ-
ment opportunities assure the Negro community's continuing economic growth.
LM
0
* ~
%0
0
Sources: See Appendix W
~
* w
to
L_
BIRMINGHAM, ALABAMA
Birmingham is the nation's seventeenth largest Negro market. It is, more-
over, one of the largest and fastest expanding markets in the South.
POPULATION
•In metropolitan Birmingham, the Negro population is estimated at 239,000,
comprising apprbximately 28.5 percent of the total metropolitan population.
In the City of Birmingham, there are 148,072 blacks, accounting for nearly
40 percent of the city's population. There are an estimated 77,784 Negro
households in the metropolitan area, 44 percent of which are owned by the
inhabitants.
Percent Distribution expenditures for current consumption:
WHITE
Expenditures for current consumption 100.0
Food, Total 22.4
Food prepared at home 17.1
Food away from home 16.4
Tobacco 2.2
Alcoholic Beverages 2:0
Housing, Total 32.1
Shelter 13.1
Rented Dwelling 7.2
Owned Dwelling 7.7
Other Shelter .7
Fuel,.light,refrigeration, water 3.9
Household operations 8.6
House furnishings and equipment 5.9
Clothing, cloth, materials, services 9.6
Personal care 4.1 ,
Medical care 7.6
Recreation 4.2
Reading .8
Education 2.1
Transportation 17.7
' Automobile 14.3
Other travel and transportation 1.5
Other expenditures -3.1
NEGRO
100.0
27.1
30.1
8.6
2.7
2.5
28.6
13.9
12.7
5.2
.2
6.1
7.9
5.9
15.9
4.9
3.5
1.5
.6
2.7
17.0
11.6
4.8
2.1
(Over)
..2.. BIRMINGHAM
INCO?SE
Estimates show the Negro medium family incbme in the Birmingham area to
have almost doubled since 1950, while the number of black families earn-
ing $4,000. or more annually has increased over 500 percent during the
same period. Ne;roes had an effective buying income of more than $655
million during 1968. Estimated percentages of total income of households
is as follows:
Under $2,000 30.1 %
$2,000 - 3,999 , 33.2 %
$4,000 - 6,999 31.9 %
$7,000 ana Over 4.8 %
4
MEDIA
Radio Station WENN
P. 0. Box 1469
Birmingham, Alabama 35201
Radio Station WJLD
109 North 19th Street
Birmingham, Alabama 35203
Birmingham World
P. 0. Box 1968
Birmingham, Alabama 35203
~tAP.KF.TING CLT*fATE
Birmingham Times
P. 0. Box 1712
Birmingham, Alabama 35201
Birminplham Mirror
1517 North Fourth Avenue
Birmingham, Alabama
T,he climate for market development in Birmingham is considered most favor-
able. Progress in employment and in other areas, including the appointment
of the first Negro city councilman, has had good effect on the black commun-
ity. Half of the Negro families in Birmingham own their owri homes. Over 46
percent of black families own automobiles. They spend an average 80 percent
of their income on consumer commodities and services. There is a "wait and
see" attitude on future progress, but this does not seem to be affecting mar-
keting progress.
Sources: See Appendix
*
%0
O
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CHICAGO, ILLINOIS
Chicago ranks second only to New York City in terms of the Negro market.
i,t far outranks Los Angeles in this respect, although the latter is re-
ported to have supplanted Chicago as the United States' second largest
city in terms of general population. It continues to be a pace-setter
in the black market, whose effects are felt throughout t:.e country.
PUPULATIO:V
Chicago currently has an estimated black population of 1.02 millions;
this represents 30.2 percent of the total population within the city
limits. Of a total metropolitan area population of more than 7.3 millions,
Negroes represent 17.3 percent. Although the City of Chicago has had an
overall population decrease of 2 percent since 1960, the Negro population
hits increased 6.6 percent during the same period.
Percent Distribution expenditures for current consumption:
WHITE NEGRO
l:xpenditures for current consumption 100.0 100.0
Food, Total 24.7 20.8
Food prepared at home 20.0 18.5
Food away from home 4.7 2.'3
Tobacco 1.6 1.8
Alcoholic Beverages 1.8 1.6
Housing, Total 30.1 32.6
Shelter 15.6 19.4
Rented Dwelling 7.0 18.7
Owned Dwelling 7.8 .6
Other Shelter .8 .1
Fuel, light, refrigeration, water 4.1 2.1
Household operations 5.5 6.2
House furnishings and equipment 4.9 4.9
Clothing, cloth, materials, services 9.8 14.9
Personal care 2.8 4.3
Medical care 6.4 3.5
Recreation 3.7 3.9
Reading .9 .7
Education • 1.1 .1
Transportation 15.3 14.7
Automobile 13.0 11.8
Other travel and transportation ' 2.3 2.9
Other expenditures 1.7 1.2
(Ove r )
..2.. CHICAGO
INCOME
In the Chicago Negro community, the average family income, before taxes,
is $5,750 per year. This represents a total annual before taxes income
of 1.4 billion dollars. 26,800 black households have family incomes of
between $10,000 and $15,000 per year; 3.2 percent of all Negro households
have income over $15,000 annually. The percentage distribution of Negro
family income, before taxes, is as follows:
Under $3,000 18.3 % $ 8,000 - 9,999 15.1 '6
$3,000 - 4,999 24.7 % $10,000 -14,999 10.8 %
$5,00U - 7,999 27.9 % $15,000 and Over 3.2 %
~%d
%0
*tEl)IA
Radio Station WBEE
75 East Wacker Drive
Chicago, Illinois 60601
Radio Station WGRT
LaSalle-Wacker Building
Chicago, Illinois 60601
Radio Station WMPP
Lincoln Hwy. at Ellis Avenue
East Chicago Heights, Illinois 60411
Radio Station WVON
3350 South Kedzie
Chicago, Illinois 60623
MARKETING CLIMATE
Chicago Daily Defender
2400 South Michigan Avenue
Chicago, Illinois 60616
(Daily and Weekend)
Chicago Courier
417 East 47th Street
Chicago, Illinois 60653
New Crusader
6429 South Parkway
Chicago, Illinois 60637
The growing affluence of Chicago's Negro market is reflected in the fact
that before 1960, there were only five black families living in 59 predomi-
nantly white suburbs; today, 543 black families are living in these same
suburbs, and most of them are buying homes. This trend will continue as
employment increases through plant relocations, job openings, and with more
lending institutions willing to lend money to Negroes. At present, an esti-
mated 70,000 Negro families are able to afford suburban homes, and will make
this move as housing opportunities open up. The Negro middle class continues
to expand. Chicago is the home of "b peration Breadbasket", economic arm of
the Southern Christian Leadership Conference, which continues to use techni-
ques of the boycott to achieve employment and black business expansion. Super
market chains are upgrading Negroes to management and sub-management.positions
Delivery trucks are either integrated or have black drivers in predominantly
black neighborhoods. Media executives feel that the attitude toward the Negrc
market is improving among marketing and advertising executives. Most of the
downtown stores are now using Negro-oriented media and promotions. 45.5 per-
cent of heads of households have at least high school education, with 18.5
percent of them having one or more years of college. In Chicago, 25.5 per-
...Continued...
,CINCINNATI, OHIO
Cincinnati is the nation's nineteenth largest Negro market. As a market,
Is is felt to be considerably better than other cities of comparable size.
POPULATION
At present, the metropolitan area population of Cincinnati is 13.2 percent
black, nu°iberinR 179,200 Negro residents. The Negro population of the City
of Cincinnati •is an estimated 150,300, comprising 28.5 perct.nt of the total
city population. There are an estimated 47,800 black homes In metropolitan
Cincinnati.
Percent Distribution expenditures for current consumption:
WHITE NEGRO
U
J
Expenditurr: for current consumption 100.0 100.0
Food, Total 25:6 27.6
Fond prepared at home 20.2 21.7
Food away f rom home 5.4 5.9
Tobacco - 2.2 2.1
Alcoholic Reverai;es 2.8 3.2
Housing, Total 27.7 30.6
Shelter 12.9 16.3
Rented hw.'lling 5.4 12.7
Owned Dwelling ' 7.1 3.4
Uther Shelter .5 .1
Fuel, light, refrigeration,•water 4.0 4.1
Household operations 5.5 5.3
House furnishings and equipment 5.2 5.0
Clothing, cloth, materials, services 8.6 12.0
Personal care 2.6 3.1
Medical care 6.1 3.4
Recreation 4.2 3.6
Reading .9 .6
Education .6 .0
Transportation 16.4 12.8
Automobile 14.7 10.3
Other travel and transportation 1.7 2.5
Other expenditures 2.3 .9
~
(Over)
..2.. CINCINNATI
INCO`iE
The estimated median Negro family income is $5,925.00 per year. In the
metropolitan area, blacks have an annual spendable income of $288-millions.
A percentage breakdown of estimated individual annual income is as follows:
Under $3,000 34.8 X
$3,000 - 4,999 33.2 %
$5,000 - 7,999 21.6 %
$8,000 - 9,999 3.5 %
$10,000 and Over 5.7 X
MEDIA
Radio Station WCIN Call and Post
106 Glenwood Avenue Post Office Box 867
Cincinnati, Ohio 45217 Cincinnati, Ohio
Cincinnati Herald
863 Lincoln Avenue
Cincinnati, Ohio 45206' '
HARKETING CLIMATE
The climate for market development in Cincinnati is considered very good.
The stable socio-economic atmosphere of Cincinnati, and the relatively high
median income, together with the low unemployment rate, are reflected in an
increasing interest in', and development of, the Negro market. The city has
an "Operation Breadbasket" program that has focused even more attention on
the Negro market. An estimated 39.3 percent of black families own their own
homes; of these 67.2 percent are valued at $10,000 or more. Over 49 percent
of those employed are in skilled, white collar and professional occupations.
*
Sources: See Appendix
,
*
~
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C,J
t4
CLEVELAND, OHIO
Cleveland is now the nation's fourteenth largest Negro market. Its size,
and the emphatic new "Cleveland Now!" program, of which a pr:me component
is the upgrading of the black community, coutinue to make Clevelci-ld an im-
portant market with exciting potential.
POPULATION
The metropolitan population of Cleveland is 86 percent white and 14 percent
Negro; there are approximately 286,636 Negroes in the metropolitan area. In.
the City of Cleveland, there are an estimated 276,376 blacks, comprising 3s..1
percent of the total city population. In April, 1940, there were 86,504 D'e-
groes in Cleveland, representing 9.6 percent of the total pouulation.
Percent Distribution expenditures for current consumption:
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 23.6 26.6
Food prepared at home 18.9 24.8
Food away from home 4.7 1.8
Tobacco 1.6 2.3
Alcoholic Beverages 1.6 2.9
Housing,. Total 29.2 31.4
Shelter 13.7 20.1
Rented Dwelling 3.5 19.1
Owned Dwelling 9.3 1.0
Other Shelter .8 . .0
Fuel, light, refrigeration, water 3.9 3.2
Household operations 5.7 5.3
House furnishings and equipment 5.8 2.8
Clothing, cloth, materials, services 11.2 11.8
Personal care 2.4 4.0
Medical care 6.0 4.3
Recreation 4.5 4.7
Reading 1.0
~ .9
Education 1.3 1.5
Transportation 14.1 9.0
Automobile 12.0 6.9
Other travel and transportation 2.1 2.1
Other expenditures 3.5 .6
(Ove r )
..2.. CLEVELAND
Vj
INCOME
In the 1965 Special Census of Cleveland, the median family income fcr blacks
was reported at $5,489 per year. An estimated percentage breakdown of
family income is as follows:
Under $2,500
$2,500 - 3,999
$4,000 - 6,999 20.3%
18.7%
48.5% $ 7,000 - 9,999 10.9%
$10,000 and over 1.6%
MEDIA
Radio Station WABQ
2323 Chester Avenue
The Call and Post
Cleveland, Ohio 44114 Post Office Box 6237
Cleveland, Ohio 44101
Rad.io Station WJMO
11821 Euclid Avenue
Cleveland, Ohio 44106
MARKETING CLIMATE
The marketing climate is considered fair in Cleveland. There have been
civil distrubances; there is an active "Operation Breadbasket", and there
are continuing problems. Cleveland, however, boasts the first "big city"
Negra Mayor - Carl B. Stokes, and a Representative in Congress for the
first time - Louis Stokes. In 1960, 98.2 percent of all non-whites in the
Greater Cleveland area lived in restrictedd areas on the East Side. By 1965,
this nu:nber had been reduced to 80 percent, and the trend is continuing.
The percentage of owner-occupied units in 1965 was 16.2. Cleveland business
and industry is making a dete nnined drive to continue opening the job oppor-
tunities to Negroes, which should reflect itself in continuing gains for
black income.
Sources: See Appendix
,
*
*
~
,
DALLAS/FORT WORTH, TEXAS
Metropolitan Dallas/Fort- Worth Is now the nation's ninth largest Negro
market. Illustrating its growth, this market was fifteenth largest in
1960.
POPULATION
The present metropolitan population of the Dallas/Fort Worth area is 83
percent white and 17 percent Negro. Negroes now number an estimated
358,428 in the metropolitan area. As of January 1, 1968, Dallas had a
black population of more than 187,800, and Fort Worth, a 69,100 Negro
population. There are an estimated 61,000 black households in the area.
Percent Distribution expenditures for current consumption (Dallas :
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 22.0 20.6
Food prepared at home 16.6 16.6
Food away from home 5.4 4.0
Tobacco 2.1 2.9
Alcoholic Beverages 1.0 .7
Housing, Total 29.6 34:6
Shelter 13.1 19.6
Rented Dwelling 5.1 10.3
Owned Dwelling 7.4 9.3
Other Shelter .7 .0
Fuel, light, frigeration, water 4.0 4.0
Household operations 6.3 5.5
House furnishings and equipment 6.1 5.5.
Clothing, cloth, materials, services 10.5 12.0
Personal Care 3.2 3.9
Medical Care 6.7 6.2
Recreation ' 4.4 2.8
Reading .8 .6
Education 1.2 .2
Transportation 16.8 13.4
Automobile 15.3 11.6
Other transportation and travel 1.5 1.8
Other expenditures 1.5 2.0
(Over)
V
0
DALLAS-FORT WORTH
INCOME
~L_
The median income for*non-whites in Dallas is $3,166. An estimated 17
percent of Negro families have incomes of more than $5,000 perr year.
For the estimated 45,300 black households in Dallas County, the percent-
age distribution of income is as follows:
Under $3,000 52.8 X
$3,000 - 4,999 30.2'y
$5,000 - 6;999 10.0 %
MEDIA
Radio Station KNOK
P. 0. Box 432
Dallas, Texas 75215
Radio Station KNOK
P'. 0. Box 7116
Fort Worth, Texas 76111
The Post Tribune
3313 Oakland Street
Dallas, Texas 75215
MARKETING CLLMATE
$ 7,000 - 9,999
$10,000 - 14,999
$15,000 and Over
The Dallas Express
2600 Flora
Dallas, Texas 75204
The Fort Worth Mind
805 Bryan Street
Fort Worth, Texas 76104
In Sepia Dallas
2700 Grand Avenue
Dallas, Texas 75215
4.6 2
1.6 X
0.8. %
High levels of economic activity in recent years, and the removal of cer-
tain discriminatory barriers, encouraged government, industry and commerce
to hire minorities in unparalleled numbers. Minority group federal employ-
ment in Dallas, according to figures released in 1967-68, increased from
13.6 percent to 15.4 percent during a three year period. Dallas' black.
community spends an estimated $143 millions annually for goods and services.
Approximately 50 percent of black homes in Dal'as are owner-occupied. The
current marketing climate in the Dallas-Fort Wcrth Negro community is con-
sidered good. More and more emphasis is being placed on community relations
in local Governments. Both cities have black representation on City Councils.
Employment outlook and increased earnings are most favorable.
*
Sources: See Appendix
0
1
u^
0
~
1-
DETROIT, MICHIGAN
Detroit is the fourth largest Negro market in the United States. Compared
with other cities, Detroit has a relatively high concentration of btacks.
In fact, it has proportionately more Negroes than most other N'ethern citi.^s.
In Detroit, moreover, blacks have become even more concentrated in the "in-
ner city".
POPULATION
There are an estimated 738,000 Negroes in the Detroit metropolitan area,
comprising 17.9 percent of the total metropolitan area population. There
are an estimated 196,000 households of black families in the metropolitan
area. In the City of Detroit, blacks comprise 41 percent of the total city
population, with an estimated 600,000 Negroes. In 1940, there were 170,?66
Negroes in the City of Detroit; this represents an increase of more th-+n 3:':
percent in the last two decades.
Percent Distribution expenditures for current conswnption:
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
-Food, Total 22.6 23.6
Food prepared at home 18.4 19.3
Food away from home 4.2 4.4
Tobacco 2.1 1.9
Alcoholic Beverages 1.8 2.4
Housing, Total 28.9 34.2
Shelter 11.3 16.0
Rented Dwelling 3.5 9.4
Owned Dwelling 9.2 6.6
Other Shelter .6 .0
Fuel, light, refrigeration, water 4.4 5.9
Household operations 5.5 5.0
House furnishings and equipment 5.6 7.3
Clothing, cloth, materials, services 10.5 11.4
Personal care 2.7 3.8
Medical care 6.3 4.1
Recreation 3.6 3.8
Reading 1.0 .9
Education • .9 1.1
Transportation 17.0 10.4
Automobile 15.6 7.7
Other travel and transportation 1.4 2.7
Other expenditures 2.5 2.4
(Over)
HOUSTON, TEXAS
Houston has jumped in position to the eighth largest Negro market In the
United States, both in terms of metropolitan area and city populations.
This reflects the general growth of the area.
POPULATION
There are an estimated 378,325 Negroes living in the Houston metropolitan
area, comprising 22.4 percent of the total metropolitan population. Blacks
number an estimated 368,934 in the City of Houston, representing 20.4 per-
cent of the total city population. There are approximately 94,581 Negro
households in present-day Houston.
Percent Distribution expenditures for current consumption:
WHITE NEGRO
Expenditures for current coasumption 100.0 100.00
Food, Total 20.9 22.5
Food prepared at home 16.1 17.3
Food away from home 4.8 5.2
Tobacco 1.7 2.3
Alcoholic Beverages 1.3 2.1
Housing, Total 29.9 32.5
Shelter 13.4 16.5
Rented Dwelling 4.1 12.0
Owned Dwelling 8.4 4.3
Other Shelter .8 .2
Fuel, light, refrigeration, water 4.2 4.7
Household operations 6.9 7.4
House furnishings and equipment 5.3 3.8
Clothing, cloth, materials, services 10.2 11.7
Personal care 3.0 4.4
Medical care 6.5 . 6.5
Recreation 4.2 2.8
Reading .7 .6
Education .9 .8
Transportation 17.7 12.5
Automobile 17.0 10.1
Other travel and transportation .7 2.5
Other expenditures 2.9 1.2
(Over)
.,2.. HOUSTON
I NCOM E
J.-
The Negro median family income in Houston is $4,821 annually, represent-
ing a total spendable family income of more than $455-millions per year.
The percentage distribution of black income is as follows:
Under $5,000
$ 5,000 - 9,999
Over $10,000
MEDIA
Radio Station KCOH
5011 Almeda Street
Houston, Texas 77004
Radio Station KYOK
613 Preston Avenue
Houston, Texas 77002
MARKETING CLIMATE
64 %
32 %
4 X
The Houston Informer
2418 Leeland Avenue
Houston, Texas 77003
The Forwa rd Times
_
4411 Almeda Road
Houston, Texas 77004
The present climate for market development in Houston is considered good.
Employment opportunities-have helped to increase black income. In 1950,
Negro family income was only $1700 per family per year; it is now nearing
$5,000 per year. The petroleum and chemical industries are large employ-
ers of Negro labor, and other industries continue to provide opportunity.
The Houston Negro market represents the "fourth largest total" market in
Texas.
Sources: See Appendix
*
*
40
%0
KANSAS CITY, MISSOURI
Metropolitan Kansas City is the twenty-first largest Negro market in the
United States.
POPULATION
.
There are 156,736 blacks residing in the Kansas City metropolitan area,
comprising 12 percent of the total metropolitan population. There are an
estimated 145,800 Negores living within the city limits of Kansas City,
representing 20 percent of the total city population.
Percent Distribution expenditures for current consumption:
WHITE NEGRO•
Expenditures for current consumption 100.0 100.0
Food, Total 21.7 25.3
Food prepared at home 16.2 22.4
Food away from home 5.5 2.9
Tobacco 1.6 1.4
Alcoholic Beverages 1.4 1.8
Housing, Total 28.8 34.4
Shelter 13.9 13.9
Rented Dwelling 5.7 8.7
Owned Dwelling 7.2 5.3
Other Shelter 1.0 .0
Fuel, lights, refrigeration, water 4.0 7 A
Household operations 5.4 6.8
House furnishings and equipment 5.2 6.5
Clothing, cloth, materials, services 9.2 12.8
Personal Care 2.9 4.2
. Kedical Care 6.5 4.4
Recreation 4.1 4.5
Education 1.3 .5
Reading .7 .4
Transportation 19.1 10.1
Automobile 17.3 7.8
Other travel and transportation ' 1.8 2.3
Other expedditures 2.7 .4
(Over)
u
..2.. KANSAS CITY
L_
The average Negro family income in Kansas City is $4,600 per year. An
estimated percentage breakdown of annual income of black families is as
follows:
INCO'tE.
Under $2,500 27.6 % $ 7,000 - 9,999 6.9 y
$2,500 - 3,999 20.3 X $10,000 and Over 4.0 %
$4,000 - 6,999 41.2 X
V
*
*
0
MEDIA
Radio Station KPRS The Kansas City Call
2301 Grand Avenue 1715 East 18th Street
Kansas City, Missouri 64108 Kansas City, Missouri 64108
MARKETING CLIMATE
The climate for market development in Kansas City is considered good. In
the area, unemployment among Negroes is one-half the national average. With-
in the city, black students make up 48 percent of the total school population.
There are no economic withdrawal programs in the market, and relations seem
to be improving between business and industry and the black community.
Sources: See Appendix
w
. N
~
LOS ANGELES, CALIFORNIA
Los Angeles is the sixth largest Negro market in the United States, and
it continues to increase in population.
POPULATION
The Los Angeles metropolitan area population is 89.8 percent white and 10.2
percent Negro. Negroes number approximately 722,943 in the metropolitan
area. In the City of Los Angeles, blacks, who number an estimated 533,600,
represent 18.9 percent of the total city population. These figures repre-
sent percentage increases of 57 percent and 59.5 percent, respectively,
since 1960.
Percent Distribution expenditures for current consumption:
WHITE NEGRO •
Expenditures for current consumption 1Q0.0 100.0
Food, Total 23.7 21.2
C 1 Food prepared at home 18.5 16.6
) Food away from home 5.2 4.6
Tobacco 1.6 2.3
Alcoholic Beverages 1.7 4.2
Housing, Total 27.9 30.7
Shelter 14.0 13.9
Rented Dwelling 5.9 10.6
Owned Dwelling 7.7 3.3
Other Shelter .4 .0
Fuel, light, refrigeration, water 3:0 2.3
Household operations 6.0 10.6
House furnishings and equipment 4.7 3.9
Clothing, cloth, materials, services 8.6 15.4
Personal care 2.5 3.4
Medical care 7.4 3.9
Recreation 4.5 5.3
Reading .8 1.3
Education .8 .4
Transportation 17.7 11.0
Automobile 16.4. 9.8
Other travel and transportation 1.2 1.2
Other expenditures , 2.9 .9
~
0
~
(Over ) ,o
w
0
..2.. LOS ANGELES L_
INCOME
The average income per black family in the Los Angeles area is $6,448
annually. The percentage breakdown of family income is as follows:
Under $4,000 20 % $10,000 - 11,999 20 %
$4,000 - 5,999 16 % $12,000 - 14,999 20 %
$6,000 - 7,999 5 % $15,000 and Over 9 X
$8,000 - 9,999 10 %
MEDIA
Radio Station KCFJ Los AnQeles Sentinel.
4550 Melrose Avenue 1112 East 43rd Street
Los Angeles, California 90029 Los Angeles, California 90011
,%WRKETING CLIMATE
The marketing climate in Los Angeles is considered very good, and continues
to improve. Over 65 percent of family adults have at least a high school
education or better, with 40 percent of these having some college training.
Sixty-six percent of Negro households have more than one person employed.
Five percent of all workers have additional part-time emol.oyment. Fjfty-
fivt percent of Los Angeles' black families own their owi. homes, with.an
average home value of $18,900. Seventy-seven percent of black households
own automobiles, with eighteen percent owning two or more. Fifty-one per-
cent of Negro families have charge accounts, a'ith nearly ail uf them in
current use. Most major companies have Negro sales and mlrketing represent-
atives in Los Angeles. Sixty-two percent of employed black women are either
professionals or gov.ernment employees.
*
Sources: See Appendix
*
4
MEhIPHIS, TENNESSEE
Memphis is the fifteenth largest Negro market in the United States; it is
the key market to the populous black mid-South.
POPULATION •
The black population of metropolitan Memphis is presently 280,176; they re-
side in some 80,004 households. In the City of Memphis, according to a 1967
Special Census, there are 213,037 Negores, comprising 39.7 percent of the
total city population.
NEGRO SPENDING (By Categories)
Food
Clothing
Housing
Furnishings and Equipment
Fuel and Light
Automobil•e Expenses
Personal Care
Household Operation
Recreation
Medical Care
Tobacco
Miscellaneous
I NCOM E
t
$125,081,214.
$ 48,189,929.
$ 35,433,772.
$ 27,638,343.
$ 18,779,899.
$ 18,425,561.
$ 13,110,495.
$ 13,464,833.
$ 14,527,846
$ 12,047,482.
$ 9,212,781.
$ 18,425,561.
The median family income for Negroes in the metropolitan Memphis area is
$4,429.00 per year. The total spendable income for black families is esti-
mated at more than $355,000,000.
MEDIA
Radio Station WDIA
Post Office Box 12045
Memphis, Tennessee 38112
Radio Station WLOK
363 South Second Street
Memphis, Tennessee 38103
The Memphis World
546 Beale Avenue
.Memphis, Tennessee 38103
The Tri-State Defender
236 Danny Thomas Boulevard
Memphis, Tennessee 38126
(Over)
..2.. ME*tPHIS
MARKETING CLIMATE
The market climate in the metropolitan Memphis area is considered good. Thc•re,
are no current company boycotts extant in the market. What is happening in the
market today is a more concentrated effort on the part of all types of busincs,
both to increase the percentage of their black employees in relation to total
personnel, and to upgrade those jobs currently held by Negroes. This activity
should insure a continuance of the growth and'of the importance of tiit• hlark
segment of the Memphis community.
*
Sources: See Appendix
*
%J
W
O
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MILWAUKEE, WISCONSIN
Milwaukee is the twenty-fourth largest Negro market in the United States.
POPULATION
At present, the metropolitan population of Milwaukee is 93.1 percent white,
and 6.9 percent Negro. Within the City of Milwaukee, however, blacks make
_-up 12.7 percent of the total city population. There are approximately over
100,600 Negroes in the metropolitan area, living in some 25,150 households.
Percent Distribution expenditures for current consu,pti.on:
WHITE NEGRO
;Expenditures for current consumption 100.0 100.0
Food, Total 23.4 25.1
Food prepared at home •18.1 21.1
Food away from home 5.3 4.0
Tobacco 1.5 1.6
Alcoholic Beverages 2.5 1.7
Housing, Total - 29.4 32.2
Shelter 14.6 16.3
Rented Dwelling 5.1 14.9
Owned Dwelling 8.8 1.4
Other Shelter .7 .0
Fuel, light, refrigeration, water 4.6 5.3
Household operations 5.0 5.9
House furnishings and equipment 5.0 4.7
Clothing, cloth, materials, services 9.6 15.5
Personal Care 2.6 4.0
Medical Care 5.8 3.6
Recreation 4.1 3.1
Reacting 1.0 .7
Education 1.9 .9
Transportation 16.0 10.3
Automobile 14.7 8.6
Other travel and transportation 1.3 1.7
Other expenditures 2.1 1.2
(Over)
A--
NEW ORLEANS, LOUISIANA
New Orleans is the tenth largest Negro market in the United States. It
promises to be one of several of the nation's largest cities which will
have black population majorities within the next decade or two.
POPULATION
ln metropolitan New Orleans, there are 339,500 Negroes, living in approxi-
mately 84,500 households. In the City of New Orleans, blacks comprise 41.6
percent of the total city population, numbering 274,500.
RO SPE\I)ItiG (By Categories)
1_J
(0
Food $145,417,533.
Clothing $ 5fi,024,855.
Housing $ 41,194,769.
Furnishings and Equipment $ 32,131,919.
Automobile Expense $ 21,421,280.
Fuel and Light $ 21,833,337.
Household Operation $ 15,654,012.
Personal Care $ 15,242,064.
Medical Care $ 14,006,221.
Recreation and Travel $ 16,889,855.
Tobacco $ 10,710,640.
Miscellaneous $ 21,421,280.
I NC0M E
The median family income for blacks in the New Orleans metropolitan area
is $4,497.00 annually. Negroes have a total spendable family income of
$411,947,685.
MEDIA
Radio Station WYLD
Post Office Box 19124
2906 Tulane
New Orleans La. 70119
Louisiana Weekly
640 South Rampart Street
.New Orleans, La.
Radio Station WBOK
505 Baronne Street
New Orleans, La. 70113
(Over)
..2.. NEW ORLEANS
MARKETING CLIMATE
k-
The climate for market development is considered most favorable in the New
Orleans area. With the general growth and improvement which has taken place
in New Orleans in the past few years, there has also been upgrading in the
black community. Downtown stores have begun to make approaches to the market,
reflecting the increasing importance of the central city's black population.
New Orleans has long had one of the most affluent business communities of any
black community in the United States, particularly in the insurance field.
Home ownership and auto ownership are both good. With a membership of more
than 3,000, the General Longshore Workers Union, Local 1419, is considered
the largest Negro union in the nation. In all, some 30,000 Negroes in the
New Orleans area are members of labor unions.
Sources: See Appendix
*
*
J
I
CIJ
NEWARK, NEW JERSEY
Newark is the thirteenth largest Negro market in the nation. It is one of
the few cities in the United States to have a Negro population definitely
in the majority.
POPULATION
Newark has 209,916 Negroes within the city limits, comprising 52.2 percent
of the total city population. In the metropolitan area, there are approx-
imately 293,355 blacks, representing 42.3'percent of the total population.
There are an estimated 52,229 black households in Newark. In 1965, the
Negro percentage of the city population was 47 percent; this reflects the
rapidity with which this market is growing. 21.7 percent of all Negro resi-
dents over the age of 16 have resided in Newark less than five years.
Percent Distribution expenditures for current consumption:
NORTHEASTERN NEW JERSEY WHITE
Expenditures for current consumption 100.0
Food, Total 25.5
Food prepared at home 19.8
Food away from home 5.7
Tobacco 1.7
Alcoholic Beverages 1.9
Housing, Total 29.9
Shelter 15.2
Rented Dwelling 5.7
Owned Dwelling 8.6
Other Shelter .9
FLel, light, refrigeration, water 4.4
Household operations 5.8
House furnishinf±s and equipment 4.3
Clothing, cloth, materials, services 10.7
Personal Care 2.7
Medical Care 6.0
Recreation 3.6
Reading .9
Education 1.2
TransportAtion 14.2
~ Automobile 12.6-
Other travel and transportation 1.6
Other Expenditures 1.6
NEGRO
100.0
22.3
18.7
3.6
1.7
3.3
31.1
15.2
11.7
2.9
.6
5.2
6.5
4.2
14.4
3.5
4.1
4.0
1.1
.1
13.4
11.3
2.1
1.0
(Over)
..2.. NEWARK
INCOME
Median income in households where males are the head is $6,892 per year.
In households where women are the head, the figure drops to 53,120 per
year. Males head 65 percent of the black households in Newark, with
feraales heading the remaining 35 percent. An estimated percentage break-
down of family income is as follows:
Under $3,000 19.5%
$3,000 - 4,999 22.8%
$5,000 - 6,999 21.5%
$7,000 - 9,999 21.8%
$10,000 - 14,000 11.3%
$15,000 - and over 3.1%
MEDIA
Radio Station WNJR New Jersey Afro-American
Post Office Box 1258 - • 190 Clinton Avenue
Newark, New Jersey 07101 Newark, New Jersey 07108
MARKETING CLIMATE '
The marketing climate in Newark is considered good. Since the civil
disturbances of'1965, the business community of Newark has instituted
many programs that.have resulted in increased employment and the race
relations climate has shown marked improvement. Strong efforts are
being made to help Negroes get into business, and to become a more
important part of the city's economy.
*
Sources: See Appendix
*
~ ~
/
(~d
NEW YORK, NEW ';DRK
.
Metropolitan !-cr,r York remains the nation's largest Negro market,• and, as
such, is the prime market for sales of products and services.
POPULATION
There are 1,4r,fj,700 Negroes in the ::ew York metropolitan area (the
five boroughc;,f New York City, Westchester, Nassau, Suffolk and Rockland
counties. In :;ew York City, there are 1,294,400 blacks, making up approx-
imately 14.7 ;,,:rcent of the total city population. Within two of the five
boroughs of N-,, York City, blacks make up a large percentage of the total
population: i,,;ianhattan they comprise 24.6 percent of the population, and
in Brooklyn tl,,_y represent 23 percent of the population.
Percent Distrtt,ution expenditures for current cinsumption:
NEW YORK WHITE NEGRO
Expenditues for current consumption 100.0 100.0
Food, Total 26.5 26.7
Food pr-l,ared at home 20.3 20.7
Food aw.,y from home 6.1 6.1
Tobacco 1.5 2:2
Alcoholic Bev.•rages 1.7 3.4
Housing, Total 31.0 32.7
Shelter 16.0 17.0
Rented I-welling 9.1 14.6
Owned Dwulling 5.6 2.3
Other SIiclter 1.3 .1
Fuel, light, tefrigeration, water 3.3 2.7
Household opt-,•;itions 6.6 7.0
House furnishings and equipment 5.0 6.0
Clothing, cl.Ith, materials, services 11.0 14.1
Personal Care 2.4 3.1
Medical Care 6.9 3.2
Recreation 3.9 3.8
Reading 1.0 1.3
Education 1.0 .5
Transportatioti 11.0 7.0
Automoblles 8.4 4.3
Other tcavel and transportation 2.6 2.7
Other expenditures 2.1 2.1
(Over )
NEW YORK
ItCCO`IE
In metropolitan New York, the median household income for black house-
holds headed by males is $5,252.00 per year; the median income in black
households headed by women is $3,817.00 per year. A percentage break-
down of income in each of these categories is as follows:
HOUSEHOLDS HEADED BY MALES HOUSEHOLDS HEADED BY FEMALE:S
. .
'
$2,080 or less .7 % 0 %
$2,080 or less 8.
$2,080 - 2,808 2.7 X $2,080 - 2,808 14.4 %
$2,860 - 3,588 4.1 'G $2,860 - 3,588 21.6 Y
$3,640 - 4,368 13.0 ~L $3,640 - 4,368 25.2 %
$4,420 - 5,148 22.5 X $4,420 - 5,148 16.0 %
$5,200 - 6,448 22.7 % $5,200 - 6,448 11.2 h
$6,500 - 7,748 13.6 % $6,500 and Over 3.6 '/.
$7,800 and Over 8.2 %
MEDIA
Radio Station WLIB The Queens Voice
J
310 Lenox Avenue 170-11 Hillside Avenue
New York, New York 10027
Radio Station WWRL Jamaica, New York
The Westchester County Press
Box 1600, Woodside Station
41-30 58th Street
Queens,.New York 11377
The New York Courier 585 Warburton Avenue
Hastings-on-Hudson, New York
315 West 125th Street
New York, New York 10027
The Amsterdam News
2340 Eighth Avenue
New York, New York 10027
~90
MARKETING CLIMATE
The marketing climate in New York is considered very good. 22:7 perCent of
all males heading households earn more than $100 per week, with 8.2 percent
of these earning $150 a week and up. Most companies have Negro sales repre-
sentatives working this territory, and this seems to be a trend in non-tradi-
tional lines (tobacco, liquor and beer companies were the pioneers in this
area) which increases with the continuing growth of the market. Boycott
activity in the New York area is spotty. There is a consumer education coun-
cil which is seeking to help the community to overcome shoddy merchandising
practices. 42.5 percent of families have savings accounts. 35 percent of
the families take extended vacations. Some 89 percent of the families shop
in supermarkets, and 32 percent have department store charge accounts.
*
NORFOLK, VIRGINIA
Norfolk and its surrounding area, including Portsmouth, Chesapeake and
Virginia Beach, comprise the twentieth largest Negro market in the United
States.
P0F'ULATION
At present Norfolk's metropolitan population is 75.5 percent white and
24.5 percent Negro. Blacks comprise 26.4 percent of the total Norfolk
city population, and 34.7 percent of the population of the City of Ports-
mouth. In the metropolitan area there are some 163,433 Negroes, living
in approximately 41,000 households.
INCOME
Norfolk was one city for which no income data was available at the time
of publication. However, all signs tend to indicate a substantial increase
in the median income for Black families over 1960. Employment for both
males and females is at an all-time high; although Negroes comprise 24.5
percent of the metropolitan area's population, they comprise 23 percent of
the area's labor force. The average black family's income in 1960 was
$3,460.00 per year.
MEDIA
Radio Station WRAP
Post Office Box 598
Norfolk, Virginia 23501
Norfolk Journal and Guide
719 East Olney Road
Norfolk, Virginia 23501
Radio Station WHIH
Post Office Box 2640
Norfolk, Virginia 23501
MARKETING CLIMATE
The climate for market development is considered excellent. Negro employ-
ment is good, and earnings have increased. Diversified industry, and the
major naval installat.ions, contribute to an improved Negro market. Urban
renewal has improved conditions substantially, and new projects are still
in the offing. 38 percent of all blacks have high school educations or
better. Virginia State College at Norfolk has nearly 8,000 comr:uter-stu-
dents. 38 percent of Negroes own their own homes, with a mediau house
value of approxi:;;ately $7,000. No r.,njor problems in marketing seem to exist
. (Over)
J-
,
PHILADELPHIA, PENNSYLVANIA
'
Philadelphia is the nation's third largest Negro market. One of America's
oldest cities, it is currently undergoing a period of rejuvenation and thi3
is being keenly felt by the city's black population. •
POPULATION
The metropolitan population of Philadelphia is currently 81 percent white
and 19 percent non-white. There are an estimated 640,000 Negroes within
the city, comprising 32 percent of the total city population. In Phila-
delphia's metropolitan area, there are 926,000 blacks, living in approxi-
mately 195,000 households. They represent 19 percent of the total metro-
politan area population.
Percent Distribution expenditures for curren" consumption:
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 25.6 28.9
Food.prepared at home 20.3 22.2
Food away from home 5.3 6.7
Tobacco 1.9 2.1
Alcoholic Beverages 1.9 3.2
Housing,-Total 27.5 32.5
Shelter 11.7 15.8
Rented Dwelling 3.9 10.8
Owned Dwelling 6.5 5.0
Other Shelter 1.3 .0
Fuel, light, refrigeration, water 4.6 5.0
Household operations 6.3 6.2
House furnishings and equipment 4.8 5.6
Clothing, cloth, materials, services 10.0 11.6
Personal Care 2.8 4.5
Medical Care 5.4 5.7
Recreation 4.2 1.0
Reading • 1.0 1.2
Education 2.3 .5
Transportation 14.8 7.4
Automobile 13.3 3.5
Other travel and transportation • 1.6 3.9
Other expenditures 2.6 .4
i4v°r:
I
j
..2.. PHILADELPHIA
,
INCOME
The median family income for black families in the Philadelphia area has
been estimated at $5,248.00 annually. An estimated percentage breakdown
of Negro income is as follows:
'Under $4,000
$4,000 - 6,999
$7,000 - 9,999
$10,000 and Over
30.6X
59.2%
6.4%
3.8%
MEDIA
Radio Station WDAS
Belmont Avenue and Edgely Rd.
Philadelphia, Penna. 19131
The Philadelphia Tribune
524 South 16th Street .
Philadelphia, Penna. 19146
Radio Station WHAT
3930-40 Conshohocken Avenue
Philadelphia, Penria. 19131
MARKETING CLIMATE
The Philadelphia Afro-American
427 South Broad Street
Philadelphia, Penna. 19147
The marketing climate is considered very good in Philadelphia. There is an
affluent and growing middle class in the black community. There are no major
boycotts going on in the market today, although this is a city in which the
most successful such activity in recent years took place. There is a new
shopping center - Progress Plaza - where stores are either black-owned or
black-managed. Downtown stores are making determined efforts to attract cen-
tral city's black population, using black male and female models in advertise-
ments, Negro mannequins; and through other means. More companies are profit-
ably utilizing localiied follow up to national programs aimed at the Negro
market.
*
Sources: See Appendix
*
YITTSBURGH, PENNSYLVANIA
The Greater Pittsburgh area is the nation's eighteenth largest Negro
market, and is one which is rapidly growing in size.
F'OPU LAT I ON
At present the me,Cropolitan area's population is 91 percent white and •
9 percent Negro. There are an estimated 128,684 blacks within the city
limits, comprising 20 percent of the total population. In Pittsburgh's
metropolitan area, there is a black population of 184,600, residing in
approximately 46,150 households.
Percent Distribution expenditures for current consumption:
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 25 : 6 24.2
Food prepared at home 21.ti 20.9
Food away from home 3.9 3.3
Tobacco 2.0 1.7
alcoholic Bever2ges 1.9 1.8
Housing, Total 26.7 25.7
Shelter 12.3 12.7
Rented Dwelling 4.8 7.1
.Owned Dwelling 6.8 5.4
•Other Shelter .7 .1
Fuel, light, refrigeration, water 4.8 5.0
Household operations 4.6 4.9
House furnishings and equipment 5.0 2.8
Clothing, cloth, materials, services 10.8 12.0
Personal care 2.7 3.8
Medical care 6.0 5.4
Recreation 3.8 6.5
Reading .9 .7
Education 1.2 .0
Transportation 15.6 15.7
Automobile 13.7 13.0
Other travel and transportation 1.9 2.7
Other expenditures . 2.6 2.3.
(Over)
..2.. PITTSBURGH
INCOME
Median income for black families in Pittsburgh is $5,177.00 per year.
The estimated gross spendable income is $300-millions annually. An
estimated percentage breakdown of Negro income is as follows:
Under $4,000. 49.4 %
$4,000 - 6,999 40.0 %
$7,000 - 9,999 6.4 %
$10,000 and Over 4.2 X
j
M Eb 1A
Radio Station WAMO The Pittsburgh Courier
1811 Boulevard of [he Allies Post Office Box 2939
Pittsburgh, Penna. 15219 Pittsburgh, Penna. 15230
Radio Station WZUM
201 Ewing Road
1'itt,burgh, Penna. 15205
MARKETING CLIMATE
ThE• climate for market development in Pittsburgh is considered good. While .
som. local merchants did not reopen following civil disturbances, the over-
all effect has been positive. Food, department and variety store advertis-
ing efforts to the Negro market have been increased, as has automobile dealer
advertising. Arnong the black population there is a 44.7 percent home owner-
ship, with 60 percent.living in single dwelling units; four out of ten home
owners are under age thirty-five. Negro self-help and poverty programs seem
to be producing a favorable climate for black-oriented marketing efforts.
Awareness of company responsibility and action is at high pitch in the black
community, and far-sighted business leadership is making good headway.
*
Sourc es: See Appendix
NO
k--
d
R7CtDi0ND, VIRGINIA
Richmond is now considered the twenty-third largest Negro market in the
United States. It continues to be the hub city of the upper South, ser-
ving as the funnel for the highly active Washington-New York-Boston cor-
ridor.
Pc)YU LAT 1 ON
The present Richmond metropolitan area population is 73.6 percent white
and 2b.4 percent black; this represents a slight increase in the distri-
bution. Negroes are generally acknowledged to represent 50 to 52 percent
of the total Richmond city population. This is an increase of 8 to 10
percent over the 1960 census figures, in distribution. There appears to
have been a decrease in total black population since 1960; presently, there
are an estimated 107,836 persons residing in 23,013 households.
INCOME
`torr than 26 percent of Negro families in the Richmond metropolitan area
earn $5,000 or more per year. 3.3 percent earn in excess of $10,000 per
year. It is estimated that blacks have in excess of $30-millions in sav-
ings, much of it in the black-owned Consolidated Bank and Trust Company.
HEDIA
Radio Station WANT • Richmond Afro-American
Third and Grace Streets 301 East Clay Street
Richmond, Virginia 23219 Richmond, Virginia 23219
Radic Station WENZ
111 North Fourth Street
Richmond, Virginia 23219
MARt;ET ING CLIMATE
The climate for market development is currently considered very good, and
improving. While Richmond represents a highly lucrative black market, it
is also a highly sensitive and selective one. Black consumers question
whether a business is for or against "the movement"; they are alert to the
hiring of black employees on all levels, and respond to black-oriented ad-
vertising in black media.
Race relations are considered to be generally good ana the Atmosphere•has
been relatively tranquil; there have been no incidents that could be con-
sidered riots. There has been an increasing awareness of the black commun-
ity's needs, and positive steps have been taken to begin to mee,`. them.
(Ove r )
..2.. RICHMOND
I-
MARk:F.TING CLIMATE (Continued)
Last Summer, for example, the Richmond Chamber of Commerce sponsored a
job program for the disadvantaged. Ten of the city's banks, including
Consolidated Bank and Trust, recently pooled $5-millions to make loans
available to black businesses, in cooperation with the Small Business
Administration.
%0
Sources: See Appendix
*
*
O
%D
i-
,
ST. LOUIS, MISSOURI
(i
St. Louis is the twelfth largest Negro market in the United States. This
represents a drop in position for the "Gateway City" in its standing among
Negro markets throughout the country. Howevever, this market has actually
grown measurably in this decade, and its potential is excellent.
POPULATION
.
At present, the metropolitan population of St. Louis is 85 percent white
and 15 percent Negro. Within the city limits, blacks constitute 37 percent
of the total city population. The Negro population of metropolitan St. Louis
is estimated to be 319,600; in the city there are approximately 300,000 Neg-
roes. In East St. Louis, Illinois, on the opposite bank of the Mississippi
River, there is an additional 40,000 black population.
Percent Distribution expenditures for current consumption
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total • 25.9 25.1
Food prepard at home 21.2 22.3
Food away from home 4.7 5.8
Tobacco 1.3 2.1
Alcoholic Beverages 1.5 2.4
Housing, Total 29.4 32.7
Shelter 12.4 16.8
: Rented Dwelling 3.9 8.4
Owned Dwelling 7.9 8.5
Other Shelter .6 .0
Fuel, light, refrigeration, water 5.2 7.2
.Household Operations 6.2 4.9
House furnishings and equipment 5.3 3.8
Clothing, cloth, materials, Services 10.3 9.6
Personal Care 2.7 3.6
Medical Care 6.9 4.9
Recreation 3.9 2.3
Reading .7 .7
Education 1.0 .9
Transportation "14.6 11.4
Automobile 13.6 9.1
Other travel and transportation 1.1 2.3
Other expenditures 1.9 1.3
(Ove r )
..2.. • ST. LOUIS
.
INCOME
In metropolitan St. Louis, the non-white median income is $3,034.00 per
year. Between 35-44 years of age, this figure increases to $3,715.00.
An estimated percentage breakdown of black income is as follows:
Under $4,000. 47.1%
$4,000 - 6,999.
$7,000 - 9,999. 41.3%
6.5X
$10;000 and Over 5.1%
MEDIA
Radio Station KXLW The St. Louis Argus
2735 Bompart
St. Louis, Missouri
63144 4595 Easton Avenue
St. Louis, Missouri
63113
Radio Station KADI-FM The St. Louis Sentinel
2735 Bompart
St. Louis, Missouri
63144 3000 Easton Avenue
St. Louis, Missouri
63106
Radio Station KATZ The St. Louis American
St
t ~
3608 C
812 Olive Street.
St. Louis, Missouri 63101 ree
ozens
St. Louis, Mis.ouri 63113
MARKETING CLIMATE
good. '
The climate for market development in St. Louis is considered good. Income
and opportunity are up but, as in other cities, so are tensions. St. Louis
has a large middle-class black population. There is a inov: to the suburbs,
but to existing housing. New sub-divisions are often all black. There have
been more threats of boycotts than actual boycotts, but such threats are ac=
complishing the objective of more jobs for Negroes. ThF rlegro newspaper, the
St. Louis Argus, is the oldest black business venture in the State of Missouri;
it has published every week since 1912. Efforts at minority business c;::velop-
ment are getting underway. St. Louis has its first black Cnng!•essman -Willian
Clay. Local government employment of blacks is up. In general, the outlook '•.s
*
40
Sources: See Appendix
~
SAN FRANCISCO/OAl.ZAND, CALIFORNIA
The metropolitan San Francisco-Oakland area is the nation's eleventh
largest Negro market. It is the second largest black market on the
West Coast, and it continues to expand rapidly.
POPULATION
At present the'metropolitan Negro population, comprising the seven-county
metropolitan area, stands at 332,745, much of it concentrated in Oakland
which has a black population of 134,995, or 34.5 percent. San Francisco
has 93,000 blacks, or 12.3 percent of that city's total population. Berke-
ley has 36,000 (30 percent); Richmond has 34,600 (30.3 percent); and the
balance is In the remaining counties, which are beginning to show some
growth. In San Mateo County, for example, there is a present Negro popu-
lation of 19,840, which represents a 356 percent increase over 1960.
Percent Distribution expenditures for current consumption (San Francisco):
WHITE NEGRO
Expenditures for current consumption 100.0 100.0
Food, Total 23.9 24.1
Food Prepared at Home 18.2 21.2
Food Away from Home 5.8 2.9
Tobacco 1.3 2.8
Alcoholic Beverages 2.4 1.1
Housing, Total 29.0 34.2
Shelter 14.5 18.2
Rented Dwelling 6.5 12.9
Owned Dwelling 7.1 5.3
Other Shelter .9 .0
Fuel, light, refrigeration, water 2.9 3.2
Household Operations 6.2 5.5
House Furnishings and Equipment 5.3 7.3
Clothing, cloth, materials, services 9.0 11.5
Personal Care .2.5 5.2
Medical Care 6.9 7.2
Recreation 5.0 2.6
Reading 1.0 .6
Education 1.2 .4
Transportarion 15.6 8.7
"Automobile 13.4 7.5
Other Travel and Transportation 2.2 1.1
Other Expenditures 2.1 1.6
(Over)
..2.. SAN FRANCISCO-OAKLAND
j
%0
1NCOME
The effective buying income of b]acks in the metropolitan area in 1968
is estimated at $440,444,000. The median Negro family income in Oakland.
is $6,456., while in San Francisco this figure is set at $5,271. Uf a
total 49,131 black households, the percentage distribution of income is
as follows:
Under $5,000
$5,000 -•7,999
$8,000 - 9,999
45.5 %
24.0 2
9.9 %
$10,000 - 14,999 10.7 "!.
$15,000 and over 9.9 %
MEUTA
Radio Station KDIA
P. 0. Box 8432
Oakland, California 94608
Radio Station KSOL
150 Eighth Street
San Francisco, California 94103
The Sun-Reporter
1366 Turk Street
San Francisco, California 94115
?LIRKETING CLIMATE
California Voice
814 - 27th Street
Oakland, California 94607
The Post -
2973 Sacramento Street
Berkeley, California 94705
The marketing climate for the seven-county metropolitan area is considered
very good. Black family income in the Bay Area is considered to be one of
the best in the nation. Negroes are employed in a wide range of business
and industry, and opportunities continue to grow. 43 percent of the Negro
families own their own homes; 68 percent own an automobile; and, 51 percent
have savings accounts. Negroes spend an estimated $317 millions in retail
buying annually. Downtown stores in both Oakland and San Francisco are the
prime areas for shopping by black families. Race relations, for the most
part, have improved in the Bay Area, and local governments are working with
black leadership to improve relations and to continue the current climate,
which is favorable.
Sources: See Appendix
*
hr-
WASHINGTON, DISTRICT OF COLUMBIA
Washington, 1). C., the nation's capitol, is the fifth largest Negro market
in the United States. Its designation as a prime market takes on added
meaning because of the large number of Federal jobs, permanent an3 with
good salaries, which are available. Further, Washington is perhaFs unique
among the nation's major cities in that blacks comprise an overwhelming
majority of the city's total population.
POPULATION
The present black population of the District of Columbia (City of Washington)
has passed the half million mark, with an additional estimated one to two
hundred thousand comprising the total metropolitan area's black population.
There are an estimated 725,895 Negroes in the metropolitan area, comprising
approximately 27 percent of the total metropolitan area population. The
latest, unofficial city government figures show that the non-white population
of Washington is now more than 71 percent, or more than 575,000. The city's
non-white population advanced 4.5 percent over the previous year, as of July,
1967. No other city in the country matches the more than 90 percent that
blacks represent in the District's school enrollment.
Percent Distribution expenditures for current consumntion:
WHITE NEGRO
QVJ
Expenditures for current consumption 100.0 100.0
Food, Total •22.7 25.6
Food prepared at home 17.1 19.5
Food away from home 5.6 6.1
Tobacco 1.4 1.5
Alcoholic Beverages 1.6 2.5
Housing, Total 31.6 34.8
Shelter 16.3 19.8
Rented Dwelling 7.4 10.5
Owned Dwelling 8.3 9.2
Other Shelter .5 .1
Fuel, light, refrigeration, water 4.0 • 4.2
Household operations 6.2 6.9
House furnishings and equipment 5.0 4.0
Clothing, cloth, materials, services 10.3 . 11.0
Personal Care 2.7 3.3
Medical Caire 6.2 4.4
Recreation 3.8 3.8
Reading • .9 .8
Education ' 1.4 .1
Transportation 14.7 10.9
Automobile 12.0 8.1
Other travel and transportation 2.7 2.8
Other expenditures 2.6 1.3
(Over)
RANK OF CITIES SURVEYED - BY METROPOLITAN AREA NEGRO POPULATION
NO. MARKET NEGRO POPULATION PERCENTAGE
1. New Y,ork 1,460,700 10.5 x
2. Chicago 1,262,900 17.3 X
. 3. Philadelphia 926,000 19.0 X
4. Detroit 738,000 17.9 X
5. Washington, D. C. 725,895 27.0 X
6. Los Angeles 722,943 10.2 X
7. Baltimore 457,000 13.7 X
8. Houston 378,325 22.4 X
9. Dallas/Fort Worth 358,428 17.0 x
10. New Orleans 339,500 31.5 X
11. San Francisco/Oakland 332,745 12.0 X
12. St. Louis 319,600 15.0 X
13. Newark 293,355 42.3 X
14. Cleveland 286,636 14.0 X
15. Memphis 280,176 35.0 X
16. Atlanta 277,600 22.0 X
17. Birmingham 239,300 28.5 X
18. Pittsburgh 184,600 9.0 X
19. Cincinnati 179,200 13.2 X
20. Norfolk/Portsmouth. 163,433 24.5 X
21. Kansas City 156,736 12.0 X
22. Boston 130,273 5.0 X
23. Richmond 107,836 26.4 X
24. Milwaukee 100,600 6.9 X
Note: This listing does not include Coluaibus, Ohio or Indianapolis,*Ind.,
since no current, reliable information was available at the time of
publication.
RANK OF CITIES SURVEYED - BY CITY NEGRO POPULATION
NO. MARKET NEGRO POPULATION PERCENTAGE
1. New York 1,294,400 14.7 2
2. Chicago 1,020,000 30.2 X
3. Philadelphia 640,000 32.0 X
4. Detroit 600,000 41.0 X
5. Washington, D. C. 575,000 71.0 X
6. Los Angeles 533,600 18.9 X
7. IIaltimore 382,000 40.0 X
8. Houston 368,934 20.4 X
9. St. Louis 300,000 37.0 X
10. Cleveland 276,376 34.1 X
11. New Orleans 274,500 41.6 X
12. Dallas/Fort Worth 256,900 **
13. Atlanta 236,072 46.0 X
14. San Francisco/Oakland 227,995 **
15. Memphis 213,037 39.7 X
16.- Newark 209,916 52.2 X
17. Cincinnati 150,300 28.5 X
18. Birmingham 148,072 40.0 X
19. Kansas City 145,800 20.0 X
20. Pittsburgh 128,684 20.0 X
21. Norfolk/Portsmouth 123,027 **
22. Boston 104,700 17.0 X
23. Milwaukee 99,822 12.7 X
24. Richmond 92,331 52.0 X
*
**
Dallas/ 187,800 13.1 X
Fort Worth 69,100 10.2 X
San Francisco/ 93,000 12.3 X
Oakland 134,995 34.5 X
Norfolk/ 82,043 26.4 X
Poxtsmouth 40,984 34.7 X
Note: This listing does not include Columbus, Ohio, or Indianapolis, Ind.,
since no current, reliable information was available at the time of
Cj publication.
CJ.
a-
•The following reference sources were generally used throughout the
preparation of the Revised MetroMarkets Report:
Bureau of Labor Statistics, U. S. Department of Labor
Bureau of the Census, U. S. Department of Commerce
In addition, information was garnered from the sources listed below
in each of the following cities:
ATLANTA
The Atlanta Inquirer
The Atlanta Journal-Constitution
The Atlanta Chamber'of Commerce
BALTIMORE
Radio Station WEBB
Radio Station WWIN
The Afro-American Newspapers
Baltimore Chamber of Commerce
The Baltimore SUNpapers
(%0
BIRMINGHAM
Radio Station WENN
Radiq Station WJLD
! Birmingham World
--Birmingham Area Chamber of Commerce
BOSTON
A-
United Community Services of Metropolitan Boston
The Boston Globe
Greater Boston Chamber of Commerce
CHICAGO
Radio Station WBEE
Radio Station WVON
The Chicago Tribune
Chicago Sun-Times
Chicago Daily News
University of Illinois, College of Business Administration
Chicago Association of Commerce and Industry
CINCI2.'yATI ~
Radio Station WCIN
The Cincinnati Enguirer
Greater Cincinnati Chamber of Commerce
CLEVELAND
Radio Station WABQ
The Call and Post ,
,
The Plain Dealer
Greater Cleveland Growth Association
Ohio Bureau of Employment Compensation
City of Cleveland Annual Report, 1967-68
C,j
DALLAS/FORT WORTH
Radio Station KNOK
Dallas Negro Chamber of Commerce
The Urban League of Greater Dallas
The Dallas Morning News
DETROIT
Radio Station WCHB
Radio Station WJLB
The Detroit Urban League
The Detroit News
Detroit Regional Transportation and Land Use Study
C.)
HOUSTON
Radio Station KYOK
The Houston Chronicle
The Houston Chamber of Commerce
KANSAS CITY
Radio Station KPRS
The Kansas City Star
The Chamber of Commerce of Greater Kansas City
LOS ANGELES
Radio Station KGFJ
The Los Angeles Times
Los Angeles Chamber of Commerce
.
MRsexIS
I-
Radio Station WLOK
Radio Station WDIA
Memphis Press-Scimitar
Memphis Area Chamber of Commerce
MILWAUKEE
Radio Station WNOV
`4j
Metropolitan Milwaukee Association of Commerce
NEWARK
New Jersey Afro-American
Greater Newark Chamber of Commerce
NEW ORLEANS
Radio Station WBOK
Total Community Action, Incorporated
The Times-Picayune
New Orleans States-Item
Chamber of Commerce of the New Orleans Area
C~
NEW YORK
Radio Station WLIB
The Amsterdam News
The New York Times
The New York Daily News
NORFOLK
Radio Station WRAP
Radio Station WHIH
The Norfolk Journal and Guide
Tidewater Area Council for Community Improvement, Incorporated
Southeastern Tidewater Opportunities Project
PHILADELPHIA
Radio Station WHAT
Radio Station WDAS
The Philadel.p,hia Tribune
The Philadelphia Inquirer
Greater Philadelphia Chamber of Commerce
PITTSBURG H
The New Pittsburgh Courier
The Pittsburgh Press
Chamber of Commerce of Greater Pittsburgh
C
R I C K<dOND
k--
The Richmond Afro-American
ST. LOUIS
Radio Station KXLW
The St. Louis Argus
The St..Louis Sentinel
St. Louis Globe-Democrat
St. Louis Post-Dispatch
Chamber of Commerce of Metropolitan St. Louis
SAN FRANCISCO/OAKLAND
Radio Station KDIA
Radio Station KSOL
.Oakland Tribune
The San Francisco Chronicle
Greater San Francisco Chamber of Commerce
WASHINGTON
Radio Station WOL
The Washington Post
The Washington Evening Star
Metropolitan Washington Board of Trade
L__
R. J. Reynolds
Spanish-Lancjua2e Market Study
I. The Market - Profile of the Spanish-Speaking Consumer
A. Population
B. Income/Employment
C. Education
D. Language
II. Marketing Results of U. S. Companies
III. Media Planning implications
A. Spanish-Language Media Usage Rationale
B. Media Analysis
1. Radio
2. Television
3. Print
4. Transit
5. Outdoor
IV. Media Directory
V. Advertising Execution
VI. Competitive Advertising Expenditures
~
L_
R. J. Reynolds
Spanish-Language Market Study
. I.
The Market - Profile of the Spanish-Speaking Consumer
A. Population
The Spanish-speaking population in the United States
is estimated at about 10,185,000. The U. S. Census
population projection indicates that by 1975 it will
total 15 million. The current population is more than
three times that of Madrid. About one out of every 17
inhabitants of the U. S. are Spanish-speaking and/or
have a Latin surname. According to the U. S. Census,
the average U. S. Spanish-speaking family has slightly
more than four people per household. These families
have their own traditions and customs influencing their
consumer habits.'
Although representing only about 5% of this country's
total population, they make their presence felt because
most of this group is concentrated in a few sharply defined
areas. Of the more than 10 million, almost half live in
the Southwest (Texas, New Mexico, Arizona, Colorado),
their families having crossed the Mexican border to set-
tle in the area several generations ago.
` The New York metropolitan area, fifth largest Spanish
.~
market in the world, has a Spanish-speaking population
of over 2 million, almost half of which are Puerto
Rican (47$). About 37% are Cuban, 14% are from Spain,
.
12% from the Dominican Republic, and the others are
South American immigrants. This is the only market that
is represented by all major Spanish-speaking nationali-
ties.
Los Angeles, the world's sixth largest Spanish market,
has one and a half million Spanish-speaking Americans,
primarily of Mexican origin, making it the third lar-
gest U.S. area in sizing up this market. Northern Cali-
fornia has another half-million Mexican-Americans.
Florida's Cuban dominated Spanish-speaking market has
grown to almost half a fiillion people most of whom have
settled in Dade County and Tampa.
F.
Chicago has 300,000 Spanish-speaking people made up of
a mixture of Mexicans, Puerto Ricans, and Cubans. There
are other population pockets in Connecticut, Ohio and
other states.
Income/EmploYment
According to a survey conducted by First Research Cor-
poration, the U.S. Spanish-speaking consumers spend 'al-
most a million dollars a day on goods and services alone.
Although most of them may be classified as "lower income"
(the average annual Latin family income in New York is
approximately $4,800, about 10% below that of "all others"),
2
the employment rate is generally high.and both family
income and the number slainfully employed is steadily
rising. The highest average annual family income is
in Los Angeles where it is approximately $5,900 per
year. Because they had more money to spend, national
advertisers were first attracted to this area. Pro-
jecting 1960 U.S. Census figures, Latin American fami-
lies living in a nine-county* Northern California area
have a median income of $5,710 per year. In this area 92%
of the male labor force is employed as compared to 96.7%
of the total U. S. white population and 92.7% of the
total U.S. Negro population. The Latin-speaking fe-
male labor force of 33,258 accounts for 33% of the total
female population.
The Mexican-American Study Project at UCLA reported that
in 1967 the annual median income for Spanish-surname
workers (primarily Mexican-Americans) living in Califor-
nia and the Southwest Cresent totaled $1,000 less than
that for their Anglo counterparts. This difference is
due, in part, to a greater ratio of this population be-
ing concentrated in government work which usually pays
less than a like position in private industry and, in
part, to less experience and seniority in the Spanish-
surname population as a whole.
* T:-:e nine-county area includes A1'emeda, Contra Costa, Marin, San
F:re~ncisco, San Mateo, Solano, San Joaquin, Sacramento, and Santa
C~.ara.
3
In Miami, 92.8% of the tousehold heads are employed,
with an average annual family income of $5,400. Approx-
imately 25% of the family heads earn more than $600 a
month. The Latin population of Dade County has grown
tremendously in the past few years due to the influx of
Cuban refugees. They resisted resettlement in other
areas in the hope that they would return home again.
In the Miami metropolitan area, a combination of Cuban
dexterity and American enterprise has created a big gar-
ment industry. Some 350 clothing factories, from large
technologically advanced plants to small, sparsely
equipped family shops, are operating in the metro area.
They are employing more than 12,000 workers and 85% are
Cubans. Spanish business in New York City also is formi-
dable. There are more than 4,000 bodegas (Spanish grocery
stores), 750 drug stores; 26 theaters, several weekly and
daily newspapers, and at least three radio and two tele-
vision stations fully programmed in Spanish. Spanish
grocery stores serve about 40% of the Spanish market. Only
60% of the Spanish-speaking housewives in New York shop in
supermarkets, though 85% say they prefer-them, reflecting
the non-welcome the Latin groups feel they get.
The'Mexican-Americans in the Southwest Cresent (this
excludes California, whose Latin inhabitants generally
hold more "urban" and higher paying jobs than do their
rural counterparts in "the Cresent") have the highest
4
rate of employment and the lowest median income among
the U. S. Spanish-speaking peoples. As expected, when
they enter the employment world from the unemployed
ranks they fill initial jobs slotted in the lowest-
paying positions.
C. Education
According to the 1960 U. S. census figures, the median
school years completed by Spanish-surname males in the
Southwest Cresent was 8.1 compared with 11.8 for whites.
Seven percent (7%) of the Spanish-surname population in
this area had completed one year of college as compared
with 24% of the white population. Nationwide, 75% of
the white population between ages 25-29 have finished
high school. In New York City, only 2% of those people
who are 18.or 19 years of age are in college and 92.2% of
all Spanish-speaking New Yorkers currently are not study-
ing, learning a trade or being trained. Of these, 31% are
elementary grade dropouts and 18% are high school drop-
outs. While there are no figures currently available on the
educational levels of Spanish-speaking people in the other
locations, the statistics for the Southwest Cresent and
the metropolitan New York area-are indicative of the educa-
tional levels and academic pursuits of these people in
other sections of the country, excluding the Cubans. As
a group, the Cubans were much better educated when they
arrived in the United States and, unlike all other Spanish-
5
V
v
speaking groups, nearly-,80$ of them have been here less
than eight years.
D. Language
The key element that defines a U. S. Spanish market is
language. Clinging to the native tongue by Spanish peo-
ple of all ages in the United States has done more than
anything else to impede their education and, therefore,
their financial progress.
While it is recognized that
there is some spillover from English-language media, it
should be remembered that 38% of all Puerto Ricans (and
there are 950,000) in New York speak no English at all
and bilingualism among the remainder is often of a token
nature. Surpri'sing to most advertisers, the same facts
hold true with the Cubans. There is a misconception that
since they are better educated, they are also bilingual
and therefore are.reached by the general media. However,
these people continue to speak Spanish by choice, although
many are bilingual.
Of 230,000 Puerto Rican pupils in the New York City school
system, NYC Board of Education officials estimate 31% can't
even speak passible English, much less read or write it.
This is true even though most of these students were
born
in the U.S. Teachers say it is hard to instruct Puerto
Ricans in English because most of their parents use Spanisr L.
0
exclusively at home. By the same token, getting Puerto
Rican, Mexican or Cuban adults to use English rather than
~
%o
co
v
C
6
Spanish also has proven<extremely difficult. The
Puerto Ricans in New York, the Mexican-Americans in the
Southwest Cresent, and the Cubans in Florida, all have
varying cultural ties and economic stability, but the
language is the same, and these people are in no hurry
to abandon it through assimilation. Most authorities
agree that it will take generations for the Spanish-
speaking immigrants to become assimilated as the Italian,
Jewish, Hungarian and other immigrants have.
The political, social and economic power structures
around major population centers inhabited by large numbers
of Spanish-speaking people accept the fact that as far as
the language barrier is concerned, it is a fait accompli.
No longer does a Spanish-speaking voter have to know how
to read or write English in order to vote in New York
State. Report cards are now being issued
in Spanish for
the parents of children coming from Spanish households.
The yellow pages of telephone books contain information in
Spanish. The major airlines have recognized the language
situation by printing instructions in both English and
Spanish for emergency procedures, restroom directions and
seat occupied cards. Police and welfare workers in cities
with large Spanish-speaking populations are continuing
to be given instructions in Spanish.
in the mid-1960's, Quaker Oats had a study conducted in
the Southwest Cresent and found that while 70% of the
7
respondents were AmeriQan born, only 24% used English
in the home. About 40% used "only Spanish" at home and
the remaining 30% used both English and Spanish equally.
Pulse Incorporated in New York found that only 7-8% of the
Puerto Ricans use English at home. Another study of the
New York market shows that of the total Spanish-speaking
population, 89% generally think in Spanish, 71% speak
English only enough "to get by," and 91% speak Spanish at
home.
el
8
R. J. 'REYNOLDS
U. S. SPANISH SPEAKING
(By Regions)
MA=.--"_'S
Southwest 4,910,000
Texas 1,920,0C:
Border (Mexico) 1,890,0C:
New Mexico 290,0C:
Arizona 280,OC:
Colorado 260,00:
Other 270,00:
West 2,200,000
California 2,200,00:
Northeast 2,195,000
New York 2,100,00:
Other 95,00:
Southeast 480,000
Miami 275,00:
Tampa 12 5, 0 0 :
Other 80,00r
Midwest 300,000
Chicago 300,000
Other U. S. 100,000
TOTAL • 10,185,000
CGH:jh
8/28/69
R. J. REYNOLDS
SPANISH SPEAKING POPULATION
TOP 17 SPANISH ShAKING METRO MARKETS
New York, New York
Los Angeles, Calif.
El Paso/Juarez, Tex.
San Antonio, Tex.
San Fran., Calif.
Chicago, Ill.
Miami, Fla.
Albuquerque, N. Mex.
Corpus Christi, Tex.
Houston, Tex.
Fresno, Calif.
Phoenix, Ariz.
Philadelphia/Camden
Tampa, Fla.
Denver, Colo.
Dallas, Tex.
Washington, D. C.
2, 100, 000*
1,500,000
700,000
586,600
500,000**
300,000
275,000
200,000
200,000
175,000
175,000
150,000
130,000
125,000
110,000
90,000
45,000
7,361,600
*Metro area.
**A nine county area that includes Alameda, Contra
Costa, Marin, San Francisco, San Mateo, Solano,
San Joaquin, Sacramento, and Santa Clara.
U. S. SPANISH SPEAKING POPULATION ORIGINS
The origin of the Spanish Speaking Population in tY.e U. S. can be
traced to four major countries:
More than 225,000 Spaniards from Continental Spain.
Over 6,000,000 from Mexico, including many second and third gen-
eration Mexican-Americans who continue to speak Spanish, residing
mostly in the Southwestern crescent.
Over a million from Puerto Rico most of whom reside in New York.
Recent efforts have been made to funnel the Puerto Rican migration
away from the New York Metropolitan area.
Almost 1,000,000 from the other Spanish speaking Republics of
Central and South America, including Cuba. Unrest in many Latin
American countries has swelled the number of people from these
countries who now live in the U. S., mostly in Florida and New
York.
Source: U. S. Census
CGF1: i h
A--
R.' J. Reynolds
Spanish-Language Market Study
II. Marketing Results of U. S. Companies
When a good choice is available, reports the Ted Bates
Agency, Spanish-speaking people tend to favor and are in-
fluenced by Spanish-language media: In support of this
position, when brand standings were compared between Puerto
Rico and New York in a recent study by Needham, Harper, &
Steers, some dramatic shif ts were apparent. Advertisers
who paid particular attention to the New York Puerto Rican
market seemed to have received a good return on their in-
vestment while others who took that community for granted
(particularly if they already had a dominant share of the
market in Puerto Rico) have suffered. The Pepsi Cola Com-
pany has always paid a great deal of attention to these
consumers. They have constantly used Spanish media and, as
a result, Pepsi Cola outsells Coca-Cola in the New York
Spanish market, although Coca-Cola outsells Pepsi Cola in
the general market and also in Latin America. Although the
Spanish market is only about 10% of the New York metro-
politan market, sales of Pepsi Cola in the Spanish market
,
account for about 30% of Pepsi Cola's sales in the metro-
politan area.
A similar situation exists with Shaeffer beer, which was
unknown to Spanish-speaking people until they came to New
U.-
York, with the exception af those coming from Puerto Rico,
where Shaeffer has an insignificant share of market. After
four years of unrelenting, effective Spanish advertising
and promotion, Shaeffer is number one in Spanish-speaking
New York and has gained such a position within this market,
that these sales represent about 40% of their total sales
in the me,tropolitan area.
In Los Angeles, there are numerous examples where brands
using Spanish radio topped all competition in the Latin market.
One of the most outstanding examples is the 90% usage of
Best Foods' Hellmann's Mayonnaise, as compared to Kraft
..Mayonnaise which has less than 5% of the Los Angeles Spanish
market.
These are good examples that the buying habits of Spanish-
speaking people can be changed from their traditional buying
habits, but this cannot be done with the English spill-over,
for we are talking about a market with different backgrounds,
environments, personalities, tastes, sense of humor, and
even with different concepts of family and country from its
counterpart, the American market.
2
R. 'J. Reynolds
Spanish-Language Market Study
t%d
III. Media Planning Implications and Advertising Execution
A. Spanish-Language Media Usage Rationale
Most research indicates that there is no mathmatically
impelling reason to use Spanish-language media merely
to reach the Spanish-speaking consumer. However, most
media basically reflect the interests, desires, and
aspirations of their primary audience, which is largely
middle-class white. Classification of these media as
"white oriented" media would be far more accurate and
functional than their most frequent classification as
"general" media. Therefore, to be effective, advertisers
should use customer-oriented media in which 10,000,000
Spanish-speaking Americans can truly identify with in
the same manner as white consumers do with media oriented
to them. There are three clear-cut reasons why Spanish-
language media -is important and influential in the U. S.
Spanish-speaking consumer market. This media
is the only media available on a day-to-day
basis, for the most part, which specif ically
and effectively influences the Spanish con-
sumer,
• supplies the listener with advertising in
which he is confident is meant for him., and
• supplies a ccmununications media which plays
the music they most prefer and apprises them
of daily happenings throughout the nation
and world of particular interest to them as
Spanish-speaking Americans.
t
%4d
The point is that the wide-spread assumption that "general"
media reaches the Spanish-speaking consumers anyway and that
special campaigns directed to them are not necessary, is
a doubtful premise. Although English-language media pro-
bably reach more Latins than the Spanish-language media,.
"reached" and "persuaded" are two entirely opposite market-
ing objectives. Spanish-language media is not important
for coverage. Its strength lies in the emotional influence
it has on its audience. Spanish-language media should
be viewed by marketing strategists on the basis of "audience
delivered" (this one numbers 10,000,000) rather than, as
often is the case, a a~uestionable adjunct to general media.
B. Media Analysis
Significant current developments in the buying, selling
and programming of Spanish-language media include the
~
growing influence of UHF television, niajor inroads at ~
~
the advertiser and agency levels, the more youthful ap- °D
. ~o
pr:ach being taken by radio, and the increased attention ~
be_`:1g given to the major problem of Spanish-language
%0
aL::ience measurement. Many companies employ Spanish-speak-
ir.: salesmen to call on stores in areas heavily populated
by Spanish-speaking customers. Virtually every major
2
advertising agency now~has someone who might be termed
the ethnic market specialist and many have people who can
write commercials in Spanish.
Among the agencies that have formally recognized the
scope and potential of the Spanish-speaking market are
the following: Compton, Grey, Young & Rubicam, Dancer-
Fitzgerald-Sample, and the Louis D. Albertini Agency.
Albertini, a specialist in this field, handles the
Spanish-speaking market advertising for such advertisers
as P. Lorillard and Colgate-Palmolive. Increased aware-
ness among national advertisers may be attributed in
large part to Spanish-language television, which is
spreading throughout the United States.
1. Radio
,
It is an acknowledged fact that Spanish-language
radio is the principal means of reaching and
influencing the Spanish consumer in this country.
It is relatively inexpensive, it can pinpoint
the consumer neatly, and is available on an
around-the-clock basis in many areas. Pro-
grams range from music-and-news shows to soap
operas and increasingly consist of public ser-
vice programs. In New York City, 99.6% of all
the Spanish-speaking families have at least
one radio and 85% have two or more in their home.
The most notable change in Spanish-lanyu~:cv radio
has been i-ts program.format providing for more
and more music and being directed toward the
young adult listener, in contrast to the once
extremely popular novellas (Spanish soap operas)
which appeal primarily to older Latins. Although
novellas are still featured on Spanish-language
radio stations, the trend is sharply toward music.
For years, many Spanish-language radio stations,
wise to the local Latin idiom, have been aiding
local and national advertisers in reaching the
Spanish market effectively. Radio stations such
as KCOR, San Antonio, KWKW, Los Angeles, WADO
and WHOM New York and WMIE, Miami, have been do-
ing on-the-spot adaptations of commercials as
well as recorded spots utilizing the personal
.sell of the local station personality, who still
remains the most effective salesman and adver-
tiser it can have.
Spanish-language radio has shown spectacular gains
in listenership and market penetration. Eduardo
Caballero, a sales executive with WBNX radio, New
York, points up the influence of Spanish media in
the Spanish-speaking market.
"In a recent survey conducted in New York
~
among Spanish-speaking people, results ~
showed that 95% listened "most often" to `p
~
Spanish radio while only 4% listened to ~
4
American rac}-io "most often". The result
~
of this is the fact that in every study
conducted in the Spanish-speaking market,
those products advertised in Spanish media
have a bigger share of the Spanish market
than those not using Spanish-oriented media
This market is highly individual in its
product and brand preferences -- and these
brands, if marketed in the proper way, can
produce very good dividends to smart adver-
tisers."
2. Television
Television possesses great potential for reach-
ing the Spanish population. Although its
growth was initially hampered by its audience's
inability to receive UHF signals, the all-
channel law passed in April, 1964 has given
this ethnic medium the impetus for success.
Nationally there is a 95% TV penetration of
the Latin population, with a range of 57-75%
of all-channel sets in those areas which have
full-time Spanish-language UHF stations.
There are currently four full-time and nine
part-time Spanish-language television stations
%so
in the U.S. While once considered only an
ethnic medium, Spanish-language TV is now co^i-
5
peting in maffy locatio ns, particularly in the
Southwest, on an equal footing with "general"
TV for media dollars. Spanish-language UHF
stations in the country's top three markets re-
ceived consistently higher audience shares among
the Spanish surname population than their VHF
competitors according to findings of Med-Mark,
Incorporated,* a media and marketing research
firm specializing in UHF and ethnic analysis.
Survey results showed that in nearly one-half
the time slots polled for station KMEX-TV in
Los Angeles, the share was double or more than
that of the leading English-language VHF station.
In two-thirds of the time periods polled for
WNJU-TV in New York and WCIU-TV in Chicago, the
audience share was twice as large as the highest
English-language VHF station viewed.
Popularity of these Latin appeal stations was
also indicated by a high degree of UHF penetratio n
in the areas polled. In Los Angeles, UHF pene-
tration is 80% ahead of the national average
while New York supercedes this average by 60%.
Chicago with a UHF penetration of almost'60$,
is 18% more than the 42% national figure recently
released by the U. S. Census Bureau. Al Petgen,
President of Med-Mark, Inc., said that larger
*The New York Times reports that"its reports are accepted
by the television industry and advertising agencies."
6
families and,-nore loyal viewing patterns among.
Spanish-Americans are the two most important
factors in the impressive statistics for Spanish
UHF.
However, while Spanish-language television has
good penetration, its reach figures provide a
different perspective. Med-riark reports
"There are 527, 350 Spanish-speaking households
in the 17 county New York viewing area. Of
these, 501, 458 have TV sets, and of those
with sets, 406, 181 have sets equipped to
receive UHF signals. With four people per
household, the potential Spanish-language UHF
audience is currently about 1.6 million people.
The New York area's two stations are watched
7
e
nightly•by an estimated total of 481,000 Spanish-
speaking people. Therefore, New York's two
stations reach only one quarter of the potential
audience.
The most popular TV show is the Novella. More
than 1,500 half-hour episodes are produced an-
nually... These shows run to a maximum of 60
episodes but usually end after 13 weeks -- the
advertiser's package. They cost an estimated
$1,500 for each half-hour to produce. Like
movies, Novellas have their own theme music, and
7
`0
some become hit records heard over and over
on Spanish-language radio stations. Next in
popularity is the musical variety show -- a
la Ed Sullivan. Folklore programs tend to be
traditional, with the emphasis on the dances
which are as familiar to tourists as they
are to Mexicans. After soap operas and music,
Spanish audiences like sports best. Pre-eminent
are the bull fights taped every week of the year
in Mexico City with an additional 20 weeks from
Tiajuana. Next to bull fighting, soccer is
probably the most popular sport on Latin TV.
It is broadcast from Mexico City, the world's
largest soccer stadium, where 105,000 people can
watch not only the Mexican teams, but also-
visiting stell.ar teams from Russia, Madrid,
Turin, Yugoslavia, Brazil, England, and else-
where. Other programming centers on children's
shows and special news shows.
V
3. Print
William Esty reports that "Most markets are
not adequately covered by Spanish-language
newspapers," and that "There are only two
Spanish magazines worthy of noting in the
entire country." They further state that
"A restricting weakness of the Spanish magazine
8
&
may well be its inability to attract certain
select segments of the Latin audience."
El Diario - La Prensa (78,476) and El Tiempo
(45,000) serve this area. However, since
there are over 500,000 families in New York
City and the combined circulation of these
two publications is 123,476, the Spanish-
language newspapers reach less than 25% of the
potential audience. Other areas have even
Newspapers
New York has the best coverage of all major
Spanish-language population centers. Both
less'circulation per Latin. For instance,
Diario Las Americas (Miami) has a circulation
of 30,265 and La Opinion (Los Angeles) 14,000.
Chicago. has three small weeklies and the "Cresent"
is served by a few small Mexican papers.
Magazines
Temas and Pimienta are the two best Spanish-
language magazines. Temas' total circulation
is 76,140 but 50,600 of it is in the New York
area. Therefore, its ability to reach Spanish-
speaking consumers in other locations is ineffec-
tive. Pimienta has a national circulation of
65,000 and a New York circulation of 20,000.
9
A study by Dr. Martin Velilla, founder of
41-
Persuasian Research, supports Esty's position..
He found that the Spanish-speaking people were
not attracted to Spanish media, when in
search of entertainment or information. Program
quality is the primary factor that determines
their selection. "i have found a strong percen-
tage of people who do not read English but buy
the Daily News three to seven times a week and
regularly purchase Look and Life magazines.
Our research shows that there are not really good
Spanish-language U. S. magazines or newspapers.
They are general.ly poorly edited and printed,
acco`rding to my survey. I recommend that in
advertising in print to the Spanish New Yorkers,
.for instance, advertisers do so in Spanish in
the New York Daily News and TV Guide, as they
have the largest circulation in Spanish house-
holds."
4. Transit
The New York Subways Advertising Company reports
a steady increase in the amount of Spanish-lan-
guage advertising in the Subways. English/ o
..
%a
Spanish ads, all Spanish ads, and split-run ads ~
. .o
(where an advertiser will run three English ads ~
N
to each Spanish ad) are the pattern favored by
such advertisers as Pan American Airways, Bacardi,
Canada Dry, El Pico Coffee and Campbell's Soup
who are out td`influence the 600,000 Spanish-
speaking svbway riders.
5. Outdoor
Billboards are considered an effective medium
especially when used to execute brand awareness
strategy. It allows for showings keyed to
Spanish-speaking areas tailored to specific
markets.
The fact remains that radio is the most effective Spanish
medium. While 75% of the Spanish-speaking New Yorkers
prefer to tune in "Spanish radio only", 81% prefer to
view English-l4nguage TV, only 12% buy "only Spanish"
newspapers, and only 11% frequently buy "only Spanish"
magazines. This is borne out again in a Benton & Bowles
study of the U. S. Spanish-language consumer. It is stated
that the principal and most effective means of reaching
and influencing the Spanish consumer is still Spanish-
language radio, although UHF-TV is becoming an important
factor in reaching this market. The significance of live
media is partly due to the limited availability and
questionable quality of Spanish-language print.
,
11
R. J. Reynolds
Spanish-Language Market Study
Media Directory Index
I. Media Directory Summary
Spanish Television Markets
Spanish Radio Markets
Spanish-Language Newspapers
Spanish-Language Magazines
Spanish Outdoor
Spanish Theaters - New York
A-
R. J. Reynolds
Spanish-Language r4arket Study
IV. Modia Directory_
tiroadcast media represents the most efficient and effective
t;ioans of reaching the Spanish market, with Spanish radio
boi,ng universally available, and Spanish television, although
available to a lesser degree, none the less an important
iactor in certain markets. Spanish newspapers are not an
important media factor, except, perhaps in New York, and
Spanish magazines are limited and questionable because of
non audited circulation. We believe that Spanish-language
Outdoor can be an effective reminder medium.
:elevision
':~here are fourteen S.panish language television stations,
.•leven of which are located in the Southwest and/or on the
West Coast. Of the remaining three Spanish language television
stations, two cover the Metropolitan New York Market and the
third operates in Chicago. Exhibit I outlines by market the
:otal Spanish-speaking population, % of Spanish-speaking
:opulation to total market, the Spanish-language TV stations
• located in the market, as well as their channel nunber, time
- on air and an.estimate of the TV homes able to receive them.
::enerally, the programming on the stations consists of sports
(t'a
rie~;(3oxing, Wrestling, Bull Fights, Soccer), musicals rie~; ar.d
C,.-,edy), novellas (adult soap operas run as serials) and drama,
4; well as Spanish movies,-local live programs, news, public
s,:.rvice and special events (such as live telecasts from Mexico
City).
Si:.ce most Spanish TV stations are UHF transnissions, motivation
foY Spanish-speaking homes to convert to UIIF is significantly
hir~ner than that of the general public. in yew York, for
ey.::.mple, UHF penetration in Spanish speaking homes is estimated
u t 73% compared to 29% for all television homes.
Tt:a•1io represents a primary means of reaching the Spanish
m-arket. Although there are over 250 stations in the U.S.
wih th one. or more. hours of Spani sh-speaking programming
(.ach week, there are 47 stations which can be considered as
a major influence on the Spanish market. Exhibit II shows
})y market the pertinent media information on these stations.
The progra;,iming format of these stations, generally, over the
past few years-has been moving more to music appealing to the
young-adult listener, as compared to the former programming
emphasis which relied heavily on the novella, appealing to
the older age groups.
Nr.wspape:-s
'Spanish-language newspapers, with but few exceptions, are
limited in circulation and provide a relatively low household
coverage in their respective markets.
2
I—
Spanish-language popula'tion in the U. S. El Diario-La Prensa
in New York is the most widely read of all these newspapers,
yet this publication only provides coverage of approximately
20% of the Spanish-language households in the New York Metro
Area.
There are 14 newspapers to be considered in reaching the
Exhibit III lists, by markets, these Spanish language news-
papers.
Magazines
There are only three Spanish-language.publications worth
considering at this time, for providing coverage of the U.S.
Spanish market -- Temas, Pimienta and Vanidades. None of these
has an audited circulation. (Exhibit IV)
Outdoor
Outdoor advertising represents an effective means of delivering
reminder messages to the Spanish market, since showings can be
-tailored to locations in Spanish neighborhoods. (Exhibit V)
Cinema
Cinema advertising opportunities in New York, like outdoor,
can be tailored to specific neighborhoods. However, there
are reservations about the use of this medium due to lack of
demographic data on the movie audiences, and because
tionable verification techniques.
of ques-
3
~•a>tru Area
1
Spanish
+
rc
Upp.
iUi'. ti CCU CG?:k'ANY•
- ----------
~,
-Sganish
;L Uf
i•Lct. coo.
Ple'~-~lJ 2,500 NA
Weekly 18,C+C,0 NA
Daily NA NA
3,9(,S 4, \A ~-
.
Los r.n,--les- , Calif.
:::u:r.i, Fl:a.
'xd York, N. Y.
Fliccnix, Ariz.
~W:t3 ~..CS3, Calif.
F3,::pa , Fla.
J_: 1i. jI.jJ
66,2C0
195,300
7J.,7c)0
905, 5cx~
3,200
29(
1., 800=CO'J
t;:I, - ;)ata :wt Available
1.1
5
32.
38
10
26
15
15
6
12
Open
I;r-wso;i72r Edition Circ. Li .Rate :•Lalinc• Cc- or
.
F1 50-1
,
r-1 Continental
Tim.e s
La (.'Finion
Grafica ('riollywood)
C
,
Daily 19,851 .16 2.51 D:~A
.
Dai 7y 14,539 .26 r "_7.55
NA
D.iorio Las Americas i aily 29,704 NA
El Di ario-La Prensa Dai_ly 81,245 .95 111.49 „v`==:
ia Tj e:apo . Dai1y 42,0W .S0 18.72 !.v:a:
~l Sa1 Weekay :VA NA
Nuev,:s de Nuevo Rajico Weekly 6,736 N A
La Gaceta Weekly 9,825 ItiA
S0ti6 8610S
R. J. Reynolds
S2anish-Language Market Study
V. Advertising Execution
Although the national origin of the Spanish-speaking group
is different in New York, Miami and the "Latin Cresent",
advertising need not be specifically tailored for each
segment. At least the major soap and detergent makers,
and proprietary drug producers (home remedies to this mar-
ket) usually advertise in a generic fashion to all the
Spanish-speaking groups. However, if commercials are
executed to appeal specifically to Cuban/Americans it does
not follow that the same commercial would be effective
with Mexican-Americans. The Benton & Bowles study noted
that "patterns of usage among the Spanish-speaking people
tend to differ from those of the total market, stemming
from a basic reluctance on the part of the Spanish per-
son to surrender his identity or traditions."
Spanish-speaking consumers are extremely loyal to brands
advertised to them. But to win them takes more than
simple translations of product labels from English to
Spanish. It requires regular advertising in order to
build up confidence in the product but once that confi-
dence is gained, they can be expected to be loyal forever.
Several studies indicate that the typical Spanish-speaking
buyer prefers advertising to have copy with colorful
adjectives, presented in a'°-friendly and warm tone; that
use of easily remembered symbols for the products help
sell them; and that he seeks the prestige and confidence of
nationally advertised brand products.
Literal translations or the wrong music can set brand
loyalty back for years. Adaptation, not translation, is
of utmost importance. Copy must be carefully written to
avoid a degenerate Spanish/English idiom. While this is
usually acceptable when spoken, it is objectionable when used
in print ads or as announcer copy. The musical idioms of
the United States and Latin America are poles apart. The
Spanish listener, whose radio or TV dial is loyally fixed
at his Spanish-language station, is responsive primarily to
the Latin sound. American sounds are ineffective.
Finally, to advertise most effectively, the key consideration
is to determine the decisive versus the nondecisive motivations
which influence this segment of the market. It generally is
not as effective to aim at the Spanish-speaking consumer as
such, as it is to aim at his motivation. The question then
becomes what is his decisive motivation. Perhaps this can
best be answered by the results of a beer study among white,
Negro, and Puerto Rican consumers. Reaction to product bene-
•
fits fits (lightness, body, color, etc.) were about the same. Dif-
ferences occurred, however, when personal versus social moti-
vations were considered. Puerto Ricans apparently placed little
emphasis on the personal satisfaction of drinking beer, although
2
Negroes did. On the other &-band, Puerto Ricans placed
great emphasis on the social interaction associated with
drinking beer, and Negroes did not.
Obviously, the point is that "social interaction" is per-
haps one decisive motivation of Puerto Ricans and any attempt
to sell them had better take this into primary consideration.
W
3
k-
R. J. Reynolds
Spanish-Language Market Study.
VI. Competitive Advertising Expenditures
In 1969, P. Lorillard increased their budget by 73% over
1968. This increase was due primarily to the additional
weight they placed in Spanish-language broadcast media
and the use of billboards. On radio, they almost doubled
and on TV they more than tripled their 1968 spending levels
on Kent, Newport, and True.
They reduc4d their Spanish-
language newspaper expenditures by.40°: and continued to have
no advertising in magazines or billboards.
British American also increased their 1969 Spanish-language
market budget. Their increase was 850> over 1968. •Like P.
Lorillard, the increase was in broadcast media. Radio ex-
penditures were increased by about 2000 and then TV effort
was almost quadrupled. Kool's budget was more than doubled
and Viceroy, while not advertised to this market in 1968, re-
ceived the same weight as Kool in 1969.
American Tobacco, while slightly increasing its budget, elimi-
nated its radio effort and put all its 1969 budget in TV.
R. J. Reynolds increased its Spanish-language media budget,
from $277,000 to $296,000. Media weight was redistributed
in 1969 so that Spanish-language radio received the heaviest
weight.
During the same two-year period, total WINSTON's budget in
this market increased by $15,000. The additional money was
placed primarily in TV. Weight distribution among the media
also changed. In 1969, WINSTON spent more in Spanish-language
TV than in radio. In 1968, slightly more was spent in radio
than TV. Also, in 1969, WINSTON Super King media weight was
reduced by 65% and this effort was reassigned to WINSTON 85.
Philip Morris had no 1969 Spanish-language advertising effort.
There were no 1969 expenditures by any cigarette firm in the
magazines and only Kent and Newport utilized billboards. Other
spending in the Spanish-language media appeared to be tokenism.
Spanish-Language Advertising Expenditures'
(By Company/By Year)
(000)
196$ 1969
Total WINSTON $191 $206
R. J. Reynolds 277 296
P. Lorillard 300 521
British American 96 178
American Tobacco 46 54
Philip Morris 20 -
Liggett & Myers 204 23
2
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I-
R. J. Reynolds
Jewish Market Study
I. Profile of the Jewish Market
A. Population
B. Income/Employment
C. Education
D. A Jewish Renaissance
II. Marketing Results of U. S. Companies
III. Media Planning Implications
A. Jewish Media Usage Rationale
B. Media Analysis
1. Print
2. Radio
3. Other
IV. Media Directory
A. Radio
B. Newspaper
C. Magazines
V. Execution Development .
VI. Special Merchandising
VII. Competitive Advertising Expenditures
R. J. Reynolds
Jewish Market Study
I. Profile of the Jewish Market '
The large majority of Jewish people in the United States today
are the progeny of emigrants from central and eastern Europe
who arrived in great waves at the turn of the 20th century.
Like Jews who migrated to many other lands, they possessed
unbounded energy and ambition but no money- a combination
which led them into low-investment business such as food
and drug wholesaling and retailing, real estate operations
and all phases of the garment industry where they and their
families have prospered.
Jewish passion for education and professionalism is, of
course, historical; and as this passion found expression
in their children, the next generation brought forth a
proliferation of lawyers, doctors, dentists, accountants,
and teachers.
A. Population
The latest Jewish population count in the United States
in 1967 was estimated at about 5,800,000. In 1966, the
total Jewish population in the United States was esti-
mated at 5,720,000. The average annual growth rate for
the decade 1956 to 1966 was just under one percent (1%).
This compares with the average annual growth rate of
1.5% for the U.- S. general population in the same decade.
- More than 95% of the estimated U. S. Jewish population
~
is distributed in urban areas. More than a quarter of
the city population of New York is Jewish and over half
(54%) of the estimated total Jewish population in the
U. S. resides in the New York/Northeastern New Jersey
standard consolidated area.* The 971,700 Jewish families
represents 22.8% of the 4,261,800 families in the area
and the largest single cultural group. This huge concen-
tration of Jews - 3,150,000 - is the greatest that has
existed in thousands of years of Jewish history and
accounts for 25% of the world's Jewish population. While'
.the city and surrounding suburban counties together in-
clude over half of the nation's Jews, almost all the rest
have once lived in the city, will at some time live there,
or have parents or children who live there. It becomes
obvious, therefore, that the success or failure of a
brand in the New York marketplace is closely related to
its acceptance within the Jewish community.
Adding this area's population to the estimates for the
nine next largest Jewish communities, we find the com-
bined total to be over 4,934,500 or 85.5% of the total
estimated Jewish population in the United States.
*10-county area (source: U. S. Bureau of Census) New York, Bronx,
Kings, Queens, Richmond, Westchester, Nassau, Bergen, Essex, Hudson.
2
V
JEWISH POPULATION
TOP 10 JEj`'IS*Ii URBAN AREAS
January 1, 1968
Rank Area Pop,_ .
1 New York, N. Y. 3,1'~,,
2 Los Angeles, Cali f. 5G~
3 Philadelphia, Pa. 33(j.
4 Chicago Met ro Are a 269,
5 Boston, Mas s. 185,
6 Miami, Fla. 130,
7 Washington, D. C. 1110,
8 Baltimore, Md. 100,•
9 Cleyeland, Ohio fi5,~.
10 Detroit, Mich. 1f5,(,
Total: 4,u s~1,5
. ~..•.
++ ++ 1~~, ``
attainments and occupational levels l itan the
1"+III,~`~
The latest estimated median income f.,+' Jewish
in 1964, was about $8,500. This, comp:+res wi.11+
median income of $7, 700 for the total U. S. 1'''1'j+
As the Jewish population, in large pc++ r, born and college-oriented, there was .111 uP«a"'
`
their occupational status. Converse]Y, stat_I~1t"'
the U. S. Census show that the forei-W-born 00+` 1"1i have a much larger percentage with 1.iwer
edut•.+l
B. Income/Employment
as reported by Fortune.
~ *See Footnote, Page 2
3
In addition to its size and concentration in the New
L_
York area, the Jewish market is a high income group.
For example, the 1969 Pulse report stated that 29.2%
of the New York Jewish households reported incomes of
$15,000 and over as compared to only 9.6% of the non-
Jewish households; 59.9% have incomes over $10,000 a
year versus 26.8% of non-Jewish families. At the lower
end of the economic span, only 19.7% of the Jewish house-
holds reported incomes less than $7,500 as compared with
49.1% of thosq in non-Jewish households.
U. S. Census tables show that college-educated Jews pre-
fer to enter occupations where self-employment was possible,
e.g. doctors, lawyers, and accountants. Similarly, an
analysis of Jews in the managers, proprietors, and offi-
cials categories as defined by the Census also show a
disproportionately large number o~ proprietors (in many
cases, proprietorship may have been on a relatively modest
economical level, e.g. small retail stores) rather than
managers and officials. However, the distinctions of
occupations preferred by Jews are most significant when
the professional category is separated by "salaried workers"
and "self-employed". In the "employed college graduate"
category 39% of the Jews are salaried professional workers
as compared with 53% of the total population. While 19%
of the Jews were "self-employed" professionals, only 100
LA
O
of the total population was self-employed. Similarly, an ~O
~ m
analysis of the managers and proprietors category showed ,o
a
w
0
4
V
virtually identical proportions of salaried and self-
employed for Jews white for the total population the
salaried proportion was twice that of the self-employed.
The median income figures and the high levels of education
and professional occupations indicate that Jews are a high
income group.
C. Education
A characteristic of Jewish communities, which appears to
be independent of their size or location, is the high
level of secuiar education. As a minority group, they
have perhaps the highest level of educational attainment;
education levels, of course, are highly correlated with
socio-economic status. For the younger age group, which
may be indicative of future trends, Boston estimated that
78% of those between the ages of 21 and 29 have attended
college; Milwaukee estimates that 83% of those aged 20
to 34 attended. In New York, more than 80% of those of
college age are currently enrolled in college, and while
more than 25% of the population of New York's central city
is Jewish, they constitute 50% of all college graduates
in the New York area.
D. A Jewish Renaissance
The founding of the State of Israel 21 years ago was a
L S
profound event which touched off a
"renaissance" in Judaism.
The more recent 6-day war and the continued unrest in the
Middle East have undoubtedly contributed to a further
5
awareness and pride among Jews of their heritage.
~
Significant evidence that Jewish customs and traditions
are undergoing a revival is found in Jewish homes. Thero
has been a vast growth in the enrollment of Jewish school
children which is indicative of a greater involvement by
younger Jewish families with Judaism. In 10 years, Jewi:;i,
school enrollment, estimated to be 600,000 in New York in
1968, has doubled while the Jewish population growth has
been less than 1%. There also has been expanded con-
struction of synagogues and community centers. The latttjl
serves Jewish families from childhood throughout their
adult lives and provides nursery school facilities, reli,1i,ius
education, scouting activities, teenage and young adult,
programs, cultural activities and organizational work in-
volving Hadassah, B'nai B'rith, and others.
The Kosher food business has grown rapidly in the past
few years. This is evidenced not only by the growing
number of supermarket items with various Kosher signs on
the labels but also by a growing number of Kosher caterert,
in the large metro areas.
.
The 1969 Pulse Study also provides some indication of tho
growth/continuation of Jewish customs and traditions:
56.4% of Jewish Families maintain 2 sets of
dishes and utensils for meat and dairy meals.
77.4% purchase Kosher meat and poultry.
6
55.1% observed the lighting of candles on
~
Friday night for the Sabbath.
85.3% light candles in December on Chanukah.
v
There are other trends evolving among American Jews which
at this point, cannot be fully assessed in terms of their
effect on Jewish traditions and religious observances.
The most important change is perhaps the Jewish population
movement from the central cities to the suburbs. Many
feel that it is inevitable that they will assimilate with
the general population through social contacts and inter-
marriage and the old barriers among Orthodox, Conservative
and Reform groups will gradually be eliminated. However,
most feel that the "Jewish spirit" will never be extinct
as Albert Vorspan wrote in the preface of My Rabbi Doesn't
Make House Call's.
"Every few months a national magazine comes out
with a bombshell article on how American Jews are
vanishing. The article always cites the low Jewish
birth rate, the growing rate of intermarriage and
the alienation of Jewish college students. The
reaction is always the same. Jews panic. The
magazine sells out by morning. Jewish masochism
is briefly gratified. For months, the synagogue
pulpits of the land resound with dire sermons on
the imminent disappearance of the Jews while the
congregants, experiencing a mild sensation of
deja vu, sigh sadly, facing the end-once again-
7
d
d
with resigned fortitude. Then the article
k-
vanishes; the Jews plod on.
"This has been going on for three thousand years.
It will go on for another three thousand years. If
you are a gambling man, put your chips on the Jews.
No people has been counted out so often-and always
outlives those who bet against them. Believe it-
Jews are here for the duration. They are the greatest
survivors in history. (Have you seen any Babylonians
lately?)"
,
L"
0
.~
~ , tio
~~„JJ aD
r
cu
c
8
V i~-
R. J. REYNOLDS
JEWISH POPULATION
TOP 30 JEt•JISH URBAN AREAS
Rank Area Population
1 New York, N. Y. 3,150,000*
2 Los Angeles, Calif. 500,000
3 Philadelphia, Pa. 330,500
4 Chicago Metro Area 269,000
5 Boston, Mass. 185,000
6 Miami, Fla. 130,000
7 Washington; D. C. 100,000
8 Baltimore, Md. 100,000
9 Cleveland, Ohio 85,000
10 Detroit, Mich. 85,000
11 San Francisco, Calif. 73,000
12 St. Louis, Mo. 57,500
13 Montgomery County, Md. 52,700
`J 14 Pittsburgh, Pa. 45,000.
~ 15 Cincinnati, Ohio 27,500
16 Hartford, Conn. 26,000
17 Buffalo, N. Y. 25,000
18 Milwaukee, Wisc. 24,000
19 Indianapolis, Ind. 22,900
20 Denver, Colo. 22,000
21 Kansas City, Mo. 22,000
22 Minneapolis, Minn. 22,000
23 Rochester, N. Y. 21,500
24 Prince'Georges Co., Md. 21,500
25 Dallas, Tex. 20,000
26 Houston, Tex. 20,000
27 New Haven, Conn. 20,000
28 Providence, R. I. 19,600
29 Oakland, Calif. 18,000
30 Atlanta, Ga. 16,000
*10 county area - New York, Bronx, Kings, Queens, Richmond,
Westchester, Nassau, Bergen, Essex, Hudson.
Source: U. S. Bureau of Census; 1968 American Jewish Yearbook
R. J. Reynolds
Jewish Market Study
d
WINSTON in New York City bear this out. The following figures
indicate the excellent progress of WINSTON in the Jewish market
duces far better results than general advertising is abl.o to
obtain from those same Jewish families. Pulse figures* on
II. Marketing Results of U. S. Companies
There is, of course, no question that general advertising in
the volume done by WINSTON is seen and/or heard by all yr.oups,
including Jewish. However, there is clear evidence to ::liow
that good advertising aimed exclusively at Jewish people pro-
as compared with the market remainder, as well as showing
WINSTON's overall growth in this area during the last four
years.
TOTAL WINSTON BRANDS
Year Non-Jewish Jewish
1966 6.3% 10.3%
1967 7.2% 11.4%
1968 7.6% 13.4%
1969 8.2% 14.5%
The following
figures from a recent Pulse study show
how other
products merchandised and advertised to the Jewish family do
so much better than their major competitors who do not ufse.
Jewish promotion.
-e figurl,.. I' •+cceptable only when used to indicate market trends
~ .,! brand relation!ships.
Non-Jewish Jewish
V *DiY-T-FINE PUDDING ~ 27.0% 70.0%
Jell-O Pudding 20.1% 14.1%
*MAXWELL HOUSE 32;5$ 52.8%
Savarin 10.4% 11.9%
*ANACIN 35.4% 62.0%
Bufferin 27.8% 30.1%
*C1iUN-KING 8. 1$ 12.5%
La Choy 6.4% 6.8%
*AEROP7AX 4.9% 13.4%
Beacon 20.3% 11.0%
(*Advertised in Jewish Media)
Gillette has been running a series of print ads featuring
well-known personalities. None of the men used are identified.
as being Jewish, nor does the headline or text have any Jewish
connotation. Yet, the ads are credited with helping Gillette
improve its market penetration among the readers of these
papers and magazines. According to~a Pulse report, Gillette
Super Stainless Blades are in 39% of the Jewish homes in the.
New York metropolitan area this year compared with 30% two
years ago. The share of its closest competitor in this market,
Wilkinson, remained constant in this same period at about 25%.
There is definite evidence that those firms which have pur-
posely attempted to*influence Jewish consumers with specialized
advertising and promotion have been successful in reaching and
selling them far more effectively than their competitors who
have been content to reach Jewish_people only through general
0
media and promotion. -
2
U
cr
R. J. Re*ynolds
Jewish Market Study
III. Media Planning Implications
A. Jewish Media Usage Rationale
The 1969 Pulse study indicates that Jewish families watch
substantially less television than do non-Jewish families.
In addition, far fewer Jewish families watch TV at a key
hour of the day. Even more significant, 43% of those
families interviewed spent no time "watching television
yesterday" as compared with only 15.7% of the non-Jewish
families. These significantly lower viewing levels in
Jewish homes.must, to a large degree, be a function of
higher income and educational levels rather than the fact
that they are Jewish. Nevertheless, the absence in 43%
of the Jewish homes of the sight, sound, motion advertising
medium, TV, makes it impossible to rely on TV as the
primary medium of reach or influence.
There is no quantitative rationale which demands the use
of Jewish-oriented media merely to reach the Jewish con-
sumer. However, most media basically reflect the interests,
desires and aspirations of their primary audience, which
is largely white, Anglo-Saxon, Protestant. Reclassification
of these media as "WASP-oriented" would be far more accurate
and functional than their most frequent classification as
"general" media. This is not to imply that Jewish
U
audiences "turn off" general advertising. They don't.
~
But to be influential, advertisers should use customer-•
oriented media in which the 5.8 million American Jews
can truly identify with in the same manner as other con-
sumers do with media oriented to them.
Jewish media serve the special needs and interests of
this Large, culturally distinct and generally affluent
market. It fills the "information gap" which exists in
general market media by providing news, articles and
features.about Israel, Jews throughout the world, polit-
ical news of importance to Jewish families, and Jewish
social news. This is information that Jewish people want
but cannot get from any other media.
Jewish m edia also provide a platform for specially developed
Jewish copy appeals for maximum effectiveness in selling
the Jewish market. More importantly, it provides 100%
non-waste circulation by its isolation/penetration of
Jewish homes only. Jewish consumer media also function
to some degree as "trade" media since a substantial.portion
of the grocery and drug trade are Jewish, especially in
New York; through the pages of the Jewish press they are
alerted to special Jewish promotional efforts.
,
If brand awareness is the primary advertising objective,
then national advertising does generally reach this audi-
ence. ence. This is especially true with brands which have the
media mix and advertising budget of WINSTON. However, if
2
the key objective is t~, sell more of Product A to more
~
Jewish consumers, the:: they must be communicated with, .
not merely reached.
The point here is that the widespread assumption that
"general" media reache= the Jewish consumer anyway and
that special campaigns directed to them are not necessary,
is a doubtful premise. To the extent that it is true,
"reached" and "persua~a=:V" are two entirely opposite
marketing objectives. Jewish media is not important
for coverage. Its str=ngth lies in the emotional in-
fluence it has on its z_idience. It should be viewed by
marketing strategists :n the basis of "audience delivered"
(this one numbers 5,V :,000) rather than, as often is the
case, a non-essential __junct of general media.
Jewish media advertis`_:.=through the use of specialized
copy not only brings t~:.e strongest possible message to
Jewish people, but it _=es so in media where none of the
circulation goes to a-: other group, and in media which
offsets the weakness cf television in Jewish homes.
B. Media Analysis
1. Print
Jewish media is a:- :)st totally print. There are
approximately 100 :~lications and over 90% of them
are printed in Enc_:sh.(10$ are in Yiddish). There
are 69 newspapers serving local audiences on a weekly
basis in 30 diffe==::t. states. Also, there are 31
national publications, mostly monthlies. Since
I—
1948, the year Israel was founded, the combined
circulation of Jewish publications has doubled
every 10 years. This thriving media picture is
a direct reflection of the modern Jewish market
itself, growing in population quantity and in
"Jewish quality", as postwar families were formed
with children to rear in the Jewish tradition and
in a national climate of general religious revival
and mass educational opportunities.
Recent studies have shown that Jewish publications
enjoy high readership and most of them meet the
highest standards of editing as well as printing.
. . . ~
They deal intimately and in detail with the activi-
ties, hopes and aspirations of Jewish people -locally,
nationally and internationally. Jewish print is not
a religious medium; rather, it is concerned with
Jewish culture and Jewish life. It offers Jewish
audiences (about 75% of all Jewish families are
reached with this medium) in a Jewish frame of mind
when they read the publications and who, as a result,
can be sold best with specialized, rather than generic,
print executions.
2. Radio
Jewish *radio programming is available in such cities
as Hartford, Philadelphia, Miami, Boston, and Los
Angeles, but the most effective programming is in
New York City.
4
While two New York stations have Jewish pro-
gramming, WEVD (Alk& FM) does the major share,
about 50%. They have regular Jewish programs
beginning in early morning and ending at 1:30 p.m.
five days a week and other Jewish programs on
Sunday. Daily messages and programs aimed at the
Jewish audience include Jewish music, including
liturgical; Jewish variety/entertainment shows;
women programs which feature Jewish home economics,
entertainment and interviews with people of special
interest to a Jewish housewife audience; and Jewish
talk and record shows.
3. Other
.There areno TV stations with Jewish-oriented pro-
gramming and outdoor/transit efforts are believed
to be ineffective.
5
R. J. Rkynolds
Jewish Market Study
IV. Media Directory
Print vehicles (newspapers and magazines) are the primary media
available to reach this ethnic market.
A. Radio
In broadcast, WEVD, New York is the only station worthy
of consideration, with specific programming directed to
the Jewish market. This station (5,000 watts, 1330 kc)
broadcasts 24 hours daily, with a variety of programming
appealing to all ethnic groups.(excluding Spanish and
Negro). Particular programming emphasis is towards the
Jewish and Italian segments of New York's population.
B. Newspaper
Of the 69 newspapers with editorial directed toward the
Jewish market, 32 of them have a
circulation of under
10,000 and an additional 11 have circulations ranging
between 10,000 to 15,000.
Exhibit I lists, by market, the Jewish population and
the newspapers available, with publication day, circulation,
open line rate and milline rate.
C. Magazines .
There are 31 Jewish magazines published in the U. S.
Most of these publications are issued on a monthly or o
~
bi-monthly basis. ~
~
0
~
v%
Hadassah Magazine is the most powerful single Jewish
~
magazine. It is the official publication of Hadassah,
the largest Jewish women's organization. Hadassah maga-
zine has a national circulation of 349,000 reaching al-
most one out of every four Jewish homes. (Median income
of $12,611 with 62.7% college educated.)
Exhibit II lists the Jewish magazines, frequency of issue,
open rate cost for a page B&W and a page 4-color, as well
as CPM circulation.
aG
2
R. J. MNOIDS TCBACCO COMPANY
.VtGAZI NT~~
Jy7I:*I
McMZT zz
P~~e 1V0
Pa r.~ 1 P.zge 4-C
TVblication FrcGuency Circul:ition Cost,: CoRty- Closing Dates
United S;-n:,gog,te Quarterly z40rOW $ 750 ~ 3.13 ~ X a. $ -
P.: ~:i•:w
:~cr.;••n's .Ls3Cue
Quarterly
165,,000
2S0
1.70
NA -
CLtlook
You.^.;; Israe1
r.onthly
28, s97
450
15.57
NA -
ViNS:point
r
NA - Not Av4i1ab1e '
*Open Hate
ba sed on circulation
?/15/69
William Eaty Corrpany I;edia Dvpartmcnt
tSb6 B6L0S
R. J. Reynolds
Jewish Market Study
V. Execution Development
Advertising to the Jewish consumer can be adapted from most
general media campaigns. It can be used most effectively
by tying in some important facet of Jewish life and culture
to the national campaign.
Today's Jewish market is peopled with a very "in" younger
generation. They have the economic resources to buy and to
do what they wish. They take advantage of the Kosher resort
areas in the Catskills, the Jersey, Florida, and Carribean
beaches, the theater, racetracks and favorite dining spots.
These upscale, social outlets offer a broad advertising envi-
ronment for selling to Jew~sh people.
Settings and situations should be current and "in" and be
readily identified as "Jewish". Photography should catch
reality and conviction. Principals, in appearance and
fashion, should be selected to reflect an upscale and "with
it" atmosphere. They should not be heavy "Jewish" types al-
though people who are obviously "non-Jewish" will be un-
acceptable also. Their.dress should be reasonably high-
styled to fit the situation. Radio copy also should follow
the strategy described above.
d
R. J. Rey nolds
Jewish Market Study
VI . Special Merchandising
Since 1961, R. J. Reynolds has recognized the
existence and
importance of the separate and distinct Jewish market by
advertising its products with specially directed copy appeals,
promotions, sampling, and other merchandising activities.
This has been accomplished through the utilization of the
Joseph Jacobs Organization. While compensated as Jewish
media sales representatives, they have functioned as a
Reynolds advertising agency at no extra cost.
Since 1919, they have served as a Jewish marketing/media
specialist and have worked with manufacturers, service orga-
nizations, and agencies to stimulate sales among Jewish con-
sumers, especially in New York City. They have capabilities
in creative and production efforts relative to distinct Jewish
directed copy appeals. They operate one of two ways:
. Provide advice and counsel on creative approaches
with the regular ad agency producing the ad, or
. Create and produce ads billing regular agencies
for out-of-pocket expenses and taking no com-
mission.
In order to make Jewish media a~lvertising more effective,
Reynolds uses the regular merchandising support offered by
Jacobs. They maintain a fourteen man merchandising force
that covers New York's major Jewish areas on a year-round
basis. They call on grocery and drug chains, co-ops, and
independents to put up display material, maximize distribution,
and to assure consistent and effective promotional cooperation.
This unique manpower is available to all Reynolds products
promoted in Jewish media at no extra cost. Jacobs' services
are available to no competitors. In addition to this regular
support, they offer complete merchandising services for a fee.
Joseph Jacobs men carry and put up regular display material
supplied by the advertiser. However, it is generally more
effective to prepare special display material if the Jewish
media advertising carries a special Jewish theme. This theme
then can be reinforced in special display material which will
be prepared on request. The major Jewish holidays are excellent
subjects for special merchandising activities.
Due to the great volume of media space placed by Joseph Jacobs,
it has excellent relations with the'Jewish publications and
continually gains free publicity. As a result, Jewish media
promoted products receive strong additional publicity, a
service provided by Jacobs at no cost.
2
F:xhibit I
R. J. Reynolds
Jewish Market Study
Jewish Market Merchandising Options
Joseph Jacobs' Regular Merchandising Support
In order to make Jewish media advertising more effective, the
Joseph Jacobs Organization maintains two merchandising crews
who cover New York's major Jewish areas on a year round basis..
Each crew has six men, and a working supervisor. Each man in
his own familiar territory works on a store by store "down-
the-street" coverage of retail outlets, grocery and drug
chains, cooperatives and independents. The men are stra-
tegically routed and closely supervised. This unique manpower
is available to all RJR products promoted in Jewish media at
no extra cost.
More specifically, the Joseph Jacobs merchandising men:
. Check stock.
Rotate older stock.
Pack out back room merchandise.
Check price structure and obtain approval for corrections.
Work for increared facings, floor and window displays. o
. -A
Put up display material. d
.o
Talk up product stories and advertising efforts
z
. .
~
~~
. ~i
Inform outlets of special promotions, features, etc.
Sell dealers on the importance of stocking and displaying
your product.
Exhibit I
(Cont'd)
When stock outs exist in chains or co-ops, attempt
to set orders placed in chain book, or through co-
operative warehouse.
Submit complete reports of all services rendered.
2
Exhibit II
R. J. Reynolds
Jewish Market Study
Joseph Jacobs Full Time D9erchandising/Sales Option
It is possible to obtain the services of Joseph Jacobs mer-
chandising/sales crews on a full time exclusive basis for
special drives in New York's major Jewish marketing areas.
In effect, for the period involved, a firm has a trained
full-time specialized selling organization. There are more
than 3,000 independents
more important than the
in these areas. Many of them are
chains but, because of their size,
seldom receive the merchandising attention that the Joseph
Jacobs men can provide, especially to back up Jewish media
advertising.
The Jacobs men pick up goods from wholesalers and sell for
cash off the car, either obtaining original distribution or
plugging distribution holes in established brands. These
activities are coordinated with the firm's division managers.
They perform a complete merchandising activity - arrange
floor and shelf displays, push preferred stocks, talk up the
Jewish media advertising and put up available display material.
They also may be directed to do special work in chain outlets
in addition to their off-car sales coverage. Here the men
attempt to enter orders into the chain order book, maintain
Exhibit II
(Cont'd)
correct shelf position, increase facings, put up display
material, pack out merchandise and, in general, effect a
better disposition of products. Prior to major Jewish
holidays they assist in erecting Kosher departments. Written
reports of this work are regularly submitted to the client.
The charge for this service is $1,250 a week for six men and
a working supervisor, including automobiles, insurance and
taxes.
Whether or not Joseph Jacobs men are employed for the special
full time services described above, all products promoted in
Jewish media receive the regular Joseph Jacobs merchandising
backup.
,
R. J. Reynolds •
Jewish Market Study
VII. Competitive Advertising Expenditures
Two cigarette firms, Liggett & Myers and Philip Morris,
eliminated their-Jewish advertising budget in 1969. British-
American reduced its budget by two-thirds and is only adver-
tising Viceroy. While American Tobacco maintained its 1968
level, P. Lorillard increased its budget by 43%,
or $26,000.
Advertisements for True were halted and the Kent and Newport
. budgets each were doubled.
R. J. Reynolds increased its 1969 budget by $57,000, most of
which went for-the promotion of DORAL. Total WINSTON in-
creased its budget marginally. Part of the increase was due
to a Jewish radio effort for WSK-M in early 1969.
Marlboro had no Jewish effort and no firm used the outdoor
medium.
Jewish Advertisinc.L Expenditures
(By Company/By Year)
(000)
1968 1969
Total WINSTON •$132 $145
R..J. Reynolds 159 206
P. Lorillard 60 86
British American 70 27
American Tobacco . 20 20
Philip Morris 5 -
Liggett & Myers 48 -