Marketing to Affluent African Americans
Strategic Insights for Reaching an Untapped Market
Published September 2008


This groundbreaking Strategic Insights Paper is a collaborative effort between Diversity Affluence and UPTOWN Magazine. It serves to provide expert insight into how to market to the affluent African American consumer segment, also known as African American Royaltons™ (AARs). Its purpose is to educate and validate those who will benefit most from the information: luxury marketers and retailers; brand managers; agencies; and the media.

These insights give the reader a clear and authentic view into this powerful group of consumers’ attitudes and opinions, media and marketing preferences, and shopping and buying habits. Primary data was gathered through the following methods:

  • Focus groups and online surveys
  • Broadly sourced statistical data
  • Case studies of successful diversity campaigns executed by luxury brands
  • Royaltons Report™ interviews with AAR executives

The paper will ultimately aid the reader in making strategic decisions that translate into profitable and relevant marketing communications plans, marketing tactics, brand plans, sales strategies, retail stores, pilot programs and beyond.

The first section of the paper presents the case for targeting this wealthy consumer population who alone represent well over $29.8 billion in purchasing power and who individually earn annual baseline salaries of $75,000. It continues with an analysis of value and attitudinal drivers to unfold into a genuine profile of the AAR segment.

The second section of the paper assesses national and regional marketing efforts and opportunities. It displays the common traits, characteristics, behaviors and trends of the U.S. AAR population as a whole and also pinpoints the regional differences. There are separate sub-sections representative of the four primary geographical centers of the AAR population. Included are suggestions on how to develop diversity campaigns to target each regional demographic.

The third section of the paper discusses how to best reach AARs at the retail sales and service level and how to avoid common pitfalls. Sub-sections contain key insights from high-profile interviews, case studies, online survey respondents and focus group participants from Atlanta, Chicago, New York and Miami to help dispel the assumptive and stereotypical practices that commonly thwart diversity initiatives within the luxury industry.

The last section helps marketers form a picture of what a successful diversity plan could look like, and a separate sub-section presents key takeaways for brands to employ at any stage in the development of their own diversity campaign. The final sub-section concludes with a summary of suggested tactics companies should consider in order to successfully engage AAR consumers and capture a greater share of their economic clout.

Who Should Buy This Paper:

The following professionals who are in the exploratory, conception or early stages of a diversity initiative, or those who want more insight on AARs will benefit from this paper. Brands and businesses with advanced diversity initiatives should contact Diversity Affluence for an in-depth consultation and a marketing audit.
  • Marketing Managers - to identify opportunities and develop targeted marketing plans in order to reach affluent AARs.
  • Brand Managers and CRM Directors - to better understand what it takes to appeal to AARs and gain their loyalty.
  • Sales Professionals - to help identify new business and close sales.
  • Research and Development Professionals - to stay on top of current and emerging diversity trends and understand what AARs demand as consumers.
  • Advertising Agencies - to work better with their clients or to develop more relevant messages and images that compel AARs to purchase products or services.
  • Business Development Experts - to better understand the market and identify strategic alliances.
  • Information and Research Center Librarians - to provide market researchers, brand and product managers, and other colleagues with the vital information they need to do their jobs more effectively.
Methodology:

In order to formulate and recommend the most viable options to reach these powerful consumers, Diversity Affluence conducted both primary quantitative and qualitative research between March and July 2008. Quantitative research involved close-ended questionnaires with AARs nationally. Qualitative research consisted of conducting in-depth focus groups with individuals who met the target demographics in Chicago, Washington, D.C., Atlanta and Miami. Qualifiers included requiring African American participants to be at least 25 years of age and earn a minimum of $75,000 annually as an individual. The paper also highlights several case studies of luxury brands making strides in targeting affluent African Americans and insights from interviews with successful AAR executives.

Table of Contents: Overview
Methodology
Introduction
The Landscape of Opportunity
  • A New Customer Base With Purchasing Power
  • What You Should Know About AARs
Reaching Prospects on a National and Regional Level
  • Nationally
    • Case Study: Iconic French Luxury Brand
  • Regionally
    • Atlanta
    • Washington, D.C.
    • Chicago
    • Miami
Integrated Marketing Communications Planning
Reaching AARs at Retail
  • Common Pitfalls at the Retail Level
  • Insights from Interviews with Executives and Influencers
  • Success Stories
    • Case Study: Harley-Davidson Motorcycles
    • Case Study: Marketing Audit for a Luxury Automaker
    • Case Study: Mercedes-Benz
Leading a Successful Diversity Campaign
  • Key Takeaways for Marketers

Cost: $895 (Includes 30-minutes of phone consulting.)

Pages: 39 (Includes charts and statistics.)
This paper will be delivered within 24 hours of payment. For quicker delivery, questions or more information, contact Andrea Hoffman at (973) 846-0155 or email her at andrea@diversityaffluence.com.


Copyright © 2006 Diversity Affluence