F e b r u a r y Simplified Understanding
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1 New Consumer Insights & Best Practices For Reaching the Ethnic Market in BC F e b r u a r y 2013 Simplified Understanding
2 Key Insights Secondary Research British Columbia s growth is coming from international immigration: Vancouver is already among the most multicultural cities in the world. Over the next twenty years, the ethnic population is expected to become even greater, with international immigration projected to account for between 60%-70% of British Columbia s population growth. By 2031, nearly twothirds (63%) of the Vancouver population is expected to be a visible minority. Educated immigrants are settling in the Lower Mainland: Nine-in-ten (90%) immigrants to British Columbia settle in the Lower Mainland and Southwestern region of the province. These immigrants are educated, with 70% having at least a post-secondary degree or diploma. English is a second language for many: While most (96.6%) of the British Columbia population knows English, only 71.7% of the population speak it as their primary mother tongue. Within Metro Vancouver, only 57.5% speak it as their primary mother tongue. Outside of English, the top 4 languages (Punjabi, Cantonese, Chinese, and Mandarin) account for ~469,000 Metro Vancouver residents, presenting a significant marketing opportunity for businesses. 2
3 Vancouver is already one of the most multicultural cities in the world. Foreign-Born as % of Metro Population % 39.6% 36.5% 34.7% 31.7% 28.9% 27.9% 20.6% 19.9% Source: Stats Canada 2006: 3
4 Nearly two-thirds of the BC population is projected to be a visible minority in 2031 Foreign-Born as % of Metro Population 50% 46% 40% 44% 20% 26% Visible Minority % of Metro Population 59% 42% 43% 63% 16% 31% Toronto Vancouver Canada Toronto Vancouver Canada Source: Stats Canada: 4
5 The majority of BC s population growth is coming from overseas % Contribution to Population Growth by Component: BC, 2006 to % 19% Natural Increase International Migration Interprovincial Migration 66% Source: 2011 Census: Statistics Canada Demography Division 5
6 Thousands Growth projections show even greater migration to BC Components of BC Population Change Net Migration Natural Increase Census Year Source: BCStats:, Overview of the BC and Regional Population Projections 2011 to September
7 The majority of immigrants in BC are in the Lower Mainland Southwest Destination Region of Immigrants to BC, % 10% Mainland - SW, 90.2% Vanc Is - Coast, 5.1% Thomp - Okan, 2.7% Kootenay, 0.8% Cariboo, 0.6% North Coast, 0.2% Nechako, 0.1% Northeast, 0.3% Region not stated, 0.2% Source: Citizenship and Immigration Canada 7
8 Immigrants coming to BC are educated Level of Education of Immigrants to BC by Development Region, Mainland - SW (124,158) Vanc Is - Coast (7,587) 29% 25% 18% 23% 52% 52% High School or less Post-Sec CF/DP University Degree Thomp-Okan (3,892) 34% 29% 37% Kootenay (1,126) 27% 28% 45% Cariboo (875) 31% 26% 43% North Coast (321) 31% 18% 51% Nechako (180) 28% 27% 45% Northeast, (366) 30% 26% 44% BC Total, 138,505, age 25+ Source: Citizenship and Immigration Canada 8
9 While the majority of BC adults know English, for many it is not their primary language Knowledge of the English Language English 96.6% 94.3% British Columbia Metro Vancouver Primary Mother Tongues English English 71.7% 57.5% Language Most Spoken At Home English - English English 84.2% 74.2% Source: 2011 Census, Statistics Canada 9
10 The top 4 languages (Punjabi, Cantonese, Chinese, and Mandarin) account for ~469,000 Metro Vancouver residents Top 10 Primary Mother Tongues Non English Punjabi Cantonese Chinese n.o.s. Mandarin German Tagalog French Korean Spanish Persian (Farsi) 4.3% 6.2% 3.1% 5.7% 2.8% 5.0% 2.2% 4.0% 1.7% 1.2% 1.5% 2.6% 1.3% 1.1% 1.1% 2.0% 1.0% 1.4% 0.8% 1.5% British Columbia Metro Vancouver Source: 2011 Census, Statistics Canada 10
11 Primary Research - Insights West Between Feb 12-17, 2013, Insights West surveyed 25 of BC s top marketers. Marketing budgets range from <$500K - $10 Million+ Total marketing budgets represent ~$75 Million. 11
12 Key Insights Primary Research Spending on ethnic marketing is relatively low, but is deemed important: 90% of marketers feel ethnic marketing is very/somewhat important relative to other marketing activities. However, currently 62% of marketers are spending less than 10% of their budget on ethnic marketing. There s still room to improve: Only 10% of marketers rate their company s ethnic marketing as being very effective. Among the most effective means of communication are participation in multicultural events, translating signage, and interacting in the preferred language. More marketing is coming: More than two-thirds (68%) of marketers expect their company to be doing more ethnic marketing over the next two years. Knowledgeable staff are needed: The top barriers to conducting more ethnic marketing are a lack of understanding about the ethnic communities and staffing issues (not enough staff/not the right people). 12
13 Most marketers are doing some ethnic marketing; few are doing a lot Amount of Ethnic Marketing Conducted 20% 16% 8% A lot of ethnic marketing A good deal of ethnic marketing Some ethnic marketing None 56% Base: n=25 Q. How much ethnic marketing does your company do? 13
14 More than half are spending less than 10% of their marketing budget on targeting ethnic communities Percentage of Company s Marketing Budget Spent on Targeting Ethnic Communities in BC. None 5% 10% or less 57% 11%-25% 29% 26%-50% 5% 51%-75% 76%-99% 0% 0% 100% 5% Base: n=21 Q. What percent of your company s marketing budget is spent on targeting ethnic communities in British Columbia? 14
15 Advertising in ethnic newspapers, participating in multicultural events, and being on ethnic radio stations are commonly used marketing activities Marketing Activities Currently Used Advertise in language/ethnic newspapers Participate in multicultural events Advertise on language/ethnic radio stations Work with agencies that have ethnic market... Translate signage or other customer-facing... Advertise on ethnic websites Translation of corporate website into othe... Deal with customers over the phone or in-p... Targeted direct mail to ethnic communities Other 70% 60% 55% 50% 40% 40% 35% 30% 30% 15% Base: n=20 Q. Which of the following marketing activities does your company use to communicate with different ethnic communities? 15
16 Participating in multicultural events, translating signage, and interacting in the preferred language are among the most effective means of communication Effectiveness of Marketing Activities Participate in multicultural events Translate signage or other customer-facing materials to ethnic groups 42% 38% 42% 38% 17% 25% Very Effective Deal with customers over the phone or in-person in their preferred language Work with agencies that have ethnic marketing expertise 33% 30% 50% 50% 17% 20% Somewhat Effective Advertise in language/ethnic newspapers 29% 50% 14% Advertise on language/ethnic radio stations 27% 64% 9% Advertise on ethnic websites 25% 50% 25% Targeted direct mail to ethnic communities 50% 50% Translation of corporate website into other languages 86% 14% Q. How effective do you think your company is at communicating with different ethnic communities using each of these activities? 16
17 Most feel that ethnic marketing is somewhat/very important relative to other marketing priorities Importance of Ethnic Marketing Relative to Other Marketing Activities Very Important 60% Somewhat Important 30% Not very Important 10% Not At All Important 0% Base: n=20 Q. How important do you personally think ethnic marketing is relative to other marketing priorities (i.e., staffing, budget issues, day-to-day execution, digital marketing, etc.)? 17
18 Few marketers feel their ethnic strategy is Very Effective Effectiveness of Company s Overall Ethnic Marketing Strategy Very Effective 10% Somewhat Effective 65% Not Very Effective 10% Not At All Effective 15% Base: n=25 Q. Overall, how effective do you feel your company s ethnic marketing strategy is? 18
19 Not enough understanding of the ethnic community and staffing issues are among the top barriers to conducting ethnic marketing Barriers to Conducting Ethnic Marketing Agree strongly Agree somewhat Not enough understanding of the ethnic community 36% 48% 84% Not the right staff to support the activity properly 32% 48% 80% Not enough staff/manpower to support the activity 28% 52% 80% Not enough budget 40% 32% 72% Not enough time 16% 28% 44% Too many ethnic communities to target 16% 24% 40% Not enough return on investment 12% 28% 40% Senior executive/decision makers do not support it 8% 12% 20% The ethnic communities are not big enough to target 8% 4% 12% Base: n=25 Q. Following are some possible barriers for conducting marketing activities with different ethnic communities. Please indicate if you agree or disagree with each of the following statements as it applies to your company. 19
20 Marketers expect their company to be doing more ethnic marketing in two years Amount of Ethnic Marketing Two Years From Now Significantly more 28% Somewhat more 40% About the same 24% Somewhat less 4% Significantly less 4% Base: n=25 Q. Looking forward two years from now, do you think your company will be conducting more, less or about the same amount of marketing to ethnic communities that it does today? 20
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