Capturing the Asian market

Niche marketing is nothing new - marketers do it all the time. We stereotype people and put them into categories: youth, DINKs, empty-nesters, bronze, silver and gold. We hope that in doing so we can hit the nail on the head by offering potential customers their ultimate dreams and in return generate sales.

What is new, though, are New Zealand's rapidly changing demographics, especially apparent in Auckland. This has suddenly got us all talking about ethnic marketing, about our new Kiwi Asian best friends.

Asians in New Zealand already outnumber Pacific peoples, according to Statistics New Zealand. Auckland's population is estimated to be 16 per cent Asian, rising to about 33 per cent by 2021. That makes Asians one of the fastest growing market segments, and a fantastic new revenue stream for many businesses.

Nevertheless, the Asian population is not homogeneous. Census 2001 identified that the largest Asian ethnic groups were Chinese, Indian and Korean. These sub-segments have their own unique languages and cultural preferences.

The market can be further segmented by attributes such as migration and settlement history, country and location of origin, age and gender. There are still further differences in lifestyle, family structures and occupations. All these factors influence individuals' beliefs, values and behaviour.

These differing characteristics create complexities and difficulties for marketers, although with all marketing and advertising, you simply cannot be all things to all people.

Therefore, to tackle this market effectively, the first task is to determine the target market within the ethnic market segment for your products and services.

New Zealand's Asian community is diverse. The settled migrant community consists of people whose heritage in New Zealand tracks back to as early as the 19th century: Chinese during the gold rush; Gujarat and Punjab Indians at the beginning of the 20th century; Fijian Indians; north and Southeast Asians during the wave of Asian immigration in the 1990s, and others. This group of settled migrants is by far the largest in size, and most have been assimilated into New Zealand society. Their tastes and likes can differ quite significantly from the recent new migrants.

Although the international student market has noticeably declined over the past year or so, it remains one of the most important sub-segments for many businesses. It is transient and yet a permanent segment. Some students do become permanent residents and gradually move into the new-migrant category. It is important to create brand awareness early on, and win their interests or loyalty before brand preference is set.

The new migrants are people with residence or visa approvals who have just moved to New Zealand. Most are financially well-established and intend long-term settlement. Recent Chinese migrants are mostly from mainland China.

The so-called 1.5 generation is the young and the energetic who migrated to New Zealand at a young age with their parents. They are the natural bridge between the settled and new migrants, as well as between the mainstream and the minority communities they represent. Language is hardly a barrier for this media-savvy young generation.

After determining the target audience, you need to decide how to engage with them. Simply placing a translated ad in an ethnic newspaper or on an ethnic radio or TV channel just won't cut it.

Bananaworks Communications has been assisting New Zealand corporate and state agencies to create cross-cultural strategies and deliver marketing executions over the past few years. Here is a summary of what we have found works:

* Set up an ethnic marketing strategy that fits with your overarching business objectives.

* An acquisition-oriented marketing programme may be inevitable due to the dynamic nature of immigration and emigration. Retention efforts that build relationships at the personal level, however, will create brand loyalty and may create export opportunities.

* Market insight exercises should focus on gaining useable intelligence. The most important questions are on buying behaviour, the decision-making process and unique needs and wants.

* Research efforts should relate directly to the products and services on offer.

* Integrated public relationship and media programmes work well. Customised channel initiatives are imperative to success, as market relationship and brand preference go hand-in-hand.

* Tailor communications collateral to attract and hold attention across cultures. The headline and imagery have to make sense to the audience.

* Allow sufficient time for a thorough legal check and sign-off for ethnic communications executions. Engage your bilingual front-line staff in the process.

* Demand your channel, sales and communications partners deliver detailed executions focused on communications styles, business protocols and mannerisms.

 

* Winnie Chang is managing director of Bananaworks Communications, an agency catering to Asian markets in New Zealand. She has a Master of Public Health from Otago University, and before going into business, set up Telecom's ethnic marketing programme.