In today’s difficult economy many companies are seeing their traditional revenue streams shrinking. If there is one challenge to the sales promotion industry it is how to reach minority markets, currently estimated at about £400billion. Conventional marketing and promotional methods are not enough to capture those hard – to – reach minority markets This is made up of a range of markets including ethnic minorities, seniors and the LGBT community. A lot of the organisations have been unsure how to respond to these changes, opting instead for a, “one a size fits all,” generic approach.
During the recession, businesses should be investing in marketing strategies that target these diverse, groups through targeted products and messages.
An advantage of the promotional merchandise industry is that it provides the perfect platform for this short of approach to our increasingly diverse, cultural society. Promotional products and services can reach and engage with hard to reach audiences.
In terms of cost, promotional items and corporate gifts, can reduce wastage and maximise efficiency. According to the Office of National Statistics and Brand Choice;
1) Disposal income in the U.K ethnic minority market is access of £90 billion.
2) 18.7% of the U.K population is 65 and over.
3) 8% of the population in the U.K are ethnic communities.
4) 1/3 of businesses are owned and run by members of ethnic minorities.
A number of major brands already communicate well with ethnic groups in the U.K as part as their marketing, and PR strategies, such as Tesco and HSBC. They, have conducted specific very successful campaigns and built brand loyalty and revenue. Niche products tailored to meet specific needs, are also doing well.
In the good times, when budgets are generous and targets are perhaps less important, sales campaigns often are characterised by a scattergun approach – throwing spaghetti at the wall and hoping enough of it will stick. Obviously in a recession every marketing pounds or dollar needs to count and promotional items and corporate gifts can prove highly targeted and cost effective; different products can be chosen for each and target market with a range of branding techniques; from jewellery to keyings and flash drives .
