The article “Ethnic Insights at the Heart of a Total Market Strategy”1 makes the claim “[s]ometimes when we conduct research focused on one ethnic group, our client realizes that the insights emerging from the research are actually relevant across their entire market[.] This is how “ethnic insights” can actually drive a whole strategy—and not just enable the targeting of a narrow segment.” But to some degree I would have to disagree based on the following reasons that it does not easily comply with the value proposition canvas model and how products and services differentiate upon ethnic markets through points of difference and compare in points of parity.
Two common scenarios to expanding market segments to multicultural lengths is global outreach, where a company strives for growth worldwide. Another instance would be to reach growth within a country through other multicultural markets which have not yet been attained.
A worldwide strategy has worked for some companies, such as McDonald’s. They recently advertised their sponsorship for Fifa World Cup through a commercial that depicts difference of cultures but through a common activity, this being soccer.. But trying to find ways to connect consumers from around the world, on not only a physical level but an emotional level, is difficult. For instance, how can one create an ad that is in a different language, then what is spoken in that region, that connects the consumer emotionally to a product or service without using artificial voice over or subtitles.
The worldwide approach may be too farfetched for some companies. The article states a good remark in one which I can relate. “Canadian consumers, especially youth and urban dwellers who tend to celebrate and brag about cultural diversity, expect advertising to reflect the culturally diverse world they live in. Such advertising is often perceived to be more authentic, aware, and engaging.” There is a sense of nationality that can be focused on to unite many diverse cultures throughout Canada. On a national scale it is easier to differentiate points of parity in a brand and what makes a brand more than mainstream through points of difference. Understanding that these boundaries created by culture, produce ethnic markets which have the ability to be malleable and be used to one’s advantage.