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Agenda • Understanding the Asian American Market • Prioritizing Your Market • Motivating Your Market • Promotions in the Asian Market

~ Asian-American Market Presented to Association of National Advertisers Eliot Kang Aug. 20,199 ~

Asian-Arr~ericart emography s3s9 T3zzs

Asian-Americana e Over 9 million in the U.S.- 56% live in the West.l/ * The fastest growing ethnic group with over 250,000 new immigrants annually 9 $100 billion of purchasing power * Most Affluent households $31,184 Korean $36,259, Japanese $41,626 vs. $31,231 White 9 Larger household 3.2 Asian 12.5 White

n le Jung: Love, Feelings, Friendship....

'yof Immigrants JPN KOR CHI IMMIGRANTS i'SE9 TSZZS STUDENTS BUSINESSMEN

ChInese-Arrerican * Chinese-Americans are made up of four distinct groups: Chinese from Taiwan, Hong Kong, Mainland China and Southeast Asia. They are further divided by two major dialects--Mandarin and Cantonese. a Psychographic Profile - Cautious in both personal and business dealings ~ - Price-conscious - Plan for the long-term 8S£9 T9ZZS

Highly urbanized; 93% live in. Metro areas • Highest number of investment immigrants and business owners • Higher Education 21% 4 year College vs. 13% of all Americans • Younger average age due to new immigration (25.2 Viet to 36.6 Japan)

japanesen.American * Japanese-Americans are the only Asian group with significant number of 2nd and 3rd generation members. The current Japanese population is divided into four groups: Assimilated, Shinissei (newly immigrated), Students and Intra-company Transfers/Busi nessmen. * Psychographic Profile - Value cons ILensus over individual opinion ` Name brand over price - Fast assimilation process

~ VI etnartntse-,American • A large percentage of Vietnamese consists of refugees, which peaked at 150,000 per year in the y 980's. They are well educated and have the highest inlanguage preference. • Psychographic Profile - Quality conscious, value seekers - Strong political beliefs - Strong tendency for cultural and community preservation L9fi9 TSZZS

~ Vietnamese-American T on e Respect: Mutual respect and Loyalty 99£9 :4ZZS

~ The most homogeneous group of the three major Asian groups. The majority of Koreans come from similar backgrounds and have similar length of residency in the U.S. ~ Psychographic Profile - Often value emotion more than logic ~- Prefer name brands to lower price - Independent & aggressive

Prioritizing Your Asian American Consumer

C", h I ; Americare e Shin-Joong: Prudence, View in Long Term... LSE9 :yZ:ZS

Japanese-American e Wah: Harmony, In Unison...

\ Selecting Your Target ' Audience • Segmentation Strategies View each Asian "community" separatel an e aware of differences within these "communities" Prioritize each segment based: 1. Potential sales volume per indv. or HH 2. Total market volume 3. Responsiveness to your typical offers 4. Pop. Growth rate

/ Philippine American • Most Western-like Asian Americans due to heavy settlement by Portuguese and Spanish. Low language preference - fewer than 20% prefer to speak in Tagalog. High West Coast concentration. Filipinos are the fastest growing group of Asian Americans. • Psychographic Profile - Strong ties with The Philippines - Less price savvy/prefer brands - Value family gatherings and good times

/ Asian Indian American • Higher concentration in Northeast. Asian Indians are divided into seven major groups based on the Indian states. They have lower inlanguage preference. Very family oriented with large extended families. Asian Indians have the highest reported HHI and percent in professional occupations. • Psychographic Profile - Strong ties with India - Price s ' " value driven - Entrepreneurial - Highest education level among all Asians

/ Creative Philosophy message transcends cultural barriers, but it wo if it is 'in-culture' and •"We believe a unique and relevant marketing • Understanding the changing balance of being Asian and being American among the target audience 9 Believing in the products we sell

1rr~migration by Country ~ < 50000 0 KOR ; 40000 . . CHI~ ~ 30000 ; 20000 ~ ~ -a f -, 10000 --44 84 85 86 87 88 89 90 ESE9 TtZZS

\ Selecting Your Target 14 ' Audience • Assessing Market Potential: Ask the Right Questions What is likelihood of usage among Asian-Americans? Does product/service fit their needs? Ask your frontline people Do some research

Selecting Your Target Audien~e ~ Communication Channels Dependence on ethnic media Are there established media Are there secondary communication medium SLE9 TnZS

Motivating Your Asian American Consumer

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1COre~nm-AIn&M dCa~1 Concentration In the !l,S. * 780,000 reported / 1.2 million estimated Z9£9 LbzCS

Immigrant Consumers • Past Experience • American Experience • Family Influence • Emotional Appeal

Chlnes&American Concentration in the U%S. * 1,645K Reported / 2,300K Estimated

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How it Differs from the General Market • More significant role in the overall communications plan • Supplements relative scarcity of mass media vehicles • Requires leverage within the ethnic community (i.e., speak the same language) • Makes an association between a company and an "ethnic" group • Leverages personal relationships--highly valued in Asian culture

Past: One of the Few • Sponsor's logo on poster, print ads, and V/O mentions • Holiday focus common • Non-Asian company being a sponsor was big attraction • Effective and quick means of increasing corporate / brand awareness • Instant recognition by the community ZE£9 t5ZZ5

Present: Among the Many • Multiple sponsors - Local and National • Sponsorships by major companies can be taken for granted • Limited return for sponsorship dollar invested • Companies focusing on creating sales opportunities

Event Marketing Over 1500 organizations, Everyone has a banquet, Everyone seems to know everyone, Fifteen parades, Beauty pageants, Concerts.... oss9 V6zzs

JapenesemAmerican U%SM ~ 800,000 Permanent with 250,000 additional semipermanent

V1 e-~€~Cl1 A rin Concentration In tUsS.. * 615,000 living in U.S.

Asian American Decision Map NEED PAST EYPERIEICE FAMILY INFLUENCE COMM. / TRADE ENGLISH INFO TRIAL 1 COMMITMENT BRAND LOYAL OPI\ ION ccss :vzzs

Future: Ownership I Leadership . • Creating / organizing / owning an event • Co-sponsoring with non-competitive/complementary partners • Partnering with major Asian media t'ass 3zzs

Keys to The Asian. American Market 1 * Understanding the market dynamics • Using the right media ~• Maximizinq identificat' • Accurate translation / Adaptation • Utilizing trade and community organizations ~ Maximizing PR coverage

Keys to Asian-American Event Marketing • Defining / matching brand personality with specific event and organizer • Expanding exposure by leveraging media • Incorporating sales and / or data capture opportunity • Having ownership and/or leadership of the specific events sss9 .nzs