AMPS Marketing Week Meeting Handout

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EVENTS SCHEDULE Learn. Compete. Network.

Come Join the Fun by Forming a Team…or by Just Attending! Friday, March 8 (ACR Ballroom) 6:00 PM-12 midnight: “Idea Zoo” Target case competition; 3-person teams in lock-down to finish a project plan; iPads to the winners; friends/families cheer on the “wild animal teams” through the glass Wednesday, March 13 (ACR 155/165) 4:30 PM: “So You Think You Can Innovate?” 2-person teams compete live with audience text votes for eliminations each round 6:00 PM: Networking reception; Super Bowl TV commercials Thursday, March 14 (ACR 155/165) 11:00 AM: Brown bag lunch with keynote speaker 12:00 NOON: Hot topic marketing workshops by top professionals 5:00 PM: Networking reception; TV commercials around the world Friday, March 15 (ACR Ballroom) 12:00 NOON: Awards ceremony for the “Idea Zoo” and “So You Think You Can Innovate?” competitions; cool swag for the winners! March 11-15 (Cafeteria) Dining and decoration themed with your favorite brands; funny TV commercials on the big screen; games, contests treats and prizes

The 1st Annual Marketing Week is a campus-wide event for all students from all majors to participate. See the Rules and Deadlines for important team competition details. (Posted on the AMPS Facebook group and at

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Team Competitions Rules and Deadlines AMPS invites student teams from all across campus to join in the fun of the Marketing Week competitions. You don’t have to be a marketing major! Below is important information about how to get involved and when things are due. TARGET CORPORATION CASE COMPETITION • Three-person student teams are invited to prepare and present a case analysis centered on the creation of a marketing plan for the Target business scenario presented in the case. Case materials and all other relevant content will be emailed to teams and posted on the AMPS Facebook group page found at: • The general case topic is Target’s effort to expand its brand reach within several multicultural shopper segments that are fast-growing consumer markets in the U.S.: Hispanics, AfricanAmericans, and Asians. The case directs the team to create innovative marketing and merchandising strategies to attract and retain loyal customers within these ethnic American markets. • The three team members must be current BYUH students and may be from any major or program—they do not need to be marketing majors or AMPS club members. Teams are encouraged to select members who bring the knowledge and skills necessary for success in this case. • Teams wishing to participate in the competition must send an “intent to participate” email message to [email protected] by 12 midnight on Friday, March 1. This email must identify each team member by full name, student ID number, email address, and major of study. The message should include a brief introduction that states why the team should be considered for entry, and why they are qualified. • A maximum of eight qualified teams will be selected from among all the applying teams to participate in the “Idea Zoo” scheduled for 6:00pm-12 midnight on Friday, March 8 in the Aloha Center Ballroom. Food, beverages and treats will be provided, work stations with power and printers will be set up, and the event and room will have a wild animal zoo theme. Each team is required to name itself after a wild animal and encouraged to decorate its workspace accordingly. Best Decoration, etc., awards will be given to teams. • In the weeks leading up to the Idea Zoo, teams will be given a variety of case content to use as references while doing research and preliminary plan development. At the Idea Zoo the teams will be provided with additional Target case information that is vital to its successful completion. • Faculty mentors will assist the teams with guidance and direction through the evening, and by 11:30pm each team must deliver three printed copies of the plan document. From 11:30pm to midnight, teams will video record a 5 minute summary of their plan that will be used to pitch their ideas to the panel of judges. • Plan documents and videos will be posted on Facebook for students to view and participate in a popular vote. The judges will review submitted materials throughout the week and render their decision at the March 15 awards ceremony. Team entries will be judged based on strategic appropriateness, soundness of plans, creativity of ideas, and quality of printed/recorded presentation. • Each member of the First Place team will receive a free iPad Mini. Second Place team members receive an iPod Nano, while Third Place team members receive a $50 gift card. Members of the remaining five teams will receive a $20 gift card.


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“Prepare students for successful careers in marketing by sharpening marketing knowledge and skills, and building meaningful relationships with fellow students and business professionals.” AMPS Mission Statement

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SO YOU THINK CAN INNOVATE? COMPETITION • Two-person student teams are invited to participate in a live-onstage marketing innovation competition that rewards quick-thinking and creativity. Similar to popular TV talent show competitions, this improvised performance will be held on Wednesday, March 13 in Aloha Center 155/165 beginning at 4:30pm. • The two team members must be current BYUH students and may be from any major or program—they do not need to be marketing majors or AMPS club members. Teams are encouraged to select members who bring the knowledge, skills, and personality necessary for success in this event. • The event begins with five teams together on stage where the rules are clarified. Four of the teams are taken to a separate room, and the event moderator introduces a simple marketing-oriented innovation scenario to the remaining team. The two team members have three minutes to come up with the most innovative marketing solution possible, and then two minutes to pitch their innovation to the audience in an entertaining manner. • This process is repeated with each of the other teams, after which the audience is asked to vote via SMS texting for their favorite team with the most innovative solution. The voting results are displayed in real time, and the team with the fewest votes is eliminated from the next round. A single winning team is left standing after four rounds of competition. • There is no advance preparation required nor are the teams required to submit any materials at the competition. This is a totally impromptu exhibition of business-focused creativity. • However, AMPS has established an event audition process in order to ensure the teams are qualified to participate, and to optimize event entertainment value for the audience. Below is the audition process: o Teams wishing to participate in the competition must produce and submit an audition video that is between 30 seconds and two minutes—no shorter and no longer. o The video must be an “advertisement” for Brigham Young University–Hawaii targeted at high school students considering where to apply for college. The theme for the advertisement is “actions speak louder than words,” and the video is restricted to using a total of only five (5) words (verbal or written). You may use the BYU-H logo and mascot which will not count toward the five words. Be creative, be wacky, and remember this competition is all about innovation, so we are looking for something unique. HAVE FUN! o The video must be posted to YouTube or another free video posting site, and the link must be sent in an email message to [email protected] by 12 midnight on Friday, March 8. Submissions received after that date will not be accepted or considered. o This email must identify each team member by full name, student ID number, email address, and phone number. The email message should include a brief introduction that states why the team should be considered for entry. Marketing knowledge, innovation/creativity. and stage presence will be important judging considerations. o The five finalist teams will be notified via email on or before Friday, March 8. Each team is required to respond via email to accept the invitation, and they will be expected to arrive at Aloha Center 155/165 by 4:00pm on Wednesday, March 13. Dress should be in keeping with the BYUH Honor Code. • Each member of the First Place team will receive a free iPad Mini. Members of the remaining four teams will receive a $20 gift card.

Contact AMPS leadership via email at [email protected] if you have any questions. JOIN AMPS! “Prepare students for successful careers in marketing by sharpening marketing knowledge and skills, and building meaningful relationships with fellow students and business professionals.” AMPS Mission Statement

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Connecting with Multicultural Shoppers Developing Target Corporation Strategies Tailored for a Diversifying Marketplace

Situation Analysis The multicultural shopper wields tremendous influence in the retail marketplace and represents a meaningful growth opportunity for many retailers. In 2010, the Hispanic population’s purchasing power was $1 trillion, African-American was $957 billion, and the Asian population’s was $718 billion. Not only is this shopper typically a member of a larger-than-average household, each of these minority segments is growing at a faster rate than the general U.S. population, further amplifying their growing economic importance. And while Hispanics, Blacks and Asians clearly buy most of the same consumer goods as the racial majority, they often make purchases based on unique cultural characteristics and are attracted to products and services tailored to their segment.

Expect More. Pay Less.

To win this diverse and growing market of shoppers, successful retailers must effectively target their merchandising and marketing strategies to appeal to an increasing array of different customer needs.

Project Scope In the context of a competitive retail environment with shifting demographics, how can Target grow its share of the multicultural marketplace? How can Target continue extending its unique Expect More. Pay Less. brand promise to effectively reach more multicultural shoppers? What product, price, promotion, and in-store presentation strategies will make these customers view Target as the U.S. upscale discount retailer who best executes multicultural merchandising initiatives? This case project combines the strategic elements of market segmentation with the execution of specific promotional tactics required in the plan.

Project Deliverables The team must develop and present a strategic marketing plan focused on one of the three identified segments (Hispanic-Americans, AfricanAmericans and Asian-Americans). However, which of the three cultural segments the team’s plan must target will be revealed at the “Idea Zoo” event on Friday, March 8. The executional element of this recommended marketing strategy is comprised of three specific promotional tools: 1) digital/social media, 2) an offline/online promotion designed to build digital/social media traffic and engagement, and 3) a high-profile launch event designed to get attention and fit the interests of the cultural target. It is suggested that your team skill set include the ability to create these kinds of executions.


The two-part structure of this case project allows the teams some time before to the Idea Zoo event to conduct research on the retailing market, multicultural segments, the Target brand and competitors; identify best practices and generate preliminary ideas for digital/social media campaigns and special promotional events that support the launch of such a segment-focused strategy. At the highest level, the plan must discuss all three large multicultural segments: Hispanics, AfricanAmericans and Asians. Indeed, it is important to point out the differences (and similarities) between these shopper groups and their digital/social media behavior. The plan must identify key trends within the multicultural consumer base, and show how it leverages them to Target’s advantage with an innovative strategy that is well-integrated with Target’s broader marketing effort. However, when designing and demonstrating recommended objectives, strategies and tactics of the digital/social media plan and special event, the team will be directed create these elements for only one of the three segments. The team will be informed which segment to focus their plan on at the Idea Zoo event. The plan must illustrate in detail how the team will effectively appeal to and attract this target segment. Specific deliverables expected to be in the written plan document and highlighted in the verbal presentation include the following—and all plan materials are due at 12 midnight on March 8 at the Idea Zoo event: •

Executive summary. Briefly but comprehensively summarize the entire digital/social and special event marketing plan, ensuring that all major issues, trends and recommendations are concisely covered. Assume the reader only has time for this short section and must draw conclusions from its content. Make it a powerful stand-alone document that introduces the full plan.

Background and situation analysis. This should be a concise summary of the marketing/retailing environment, an overview of target market trends, a competitive assessment, a SWOT analysis (Internal: Strengths/Weaknesses, External: Opportunities/Threats), and include any other relevant content that provides context or sets up strategic recommendations. It would be wise to assess how Target is currently trying to reach these multicultural segments with its products and promotions.

Marketing objectives. Include a set of clear objectives on which your strategies and programs are focused. Consider these goals as desired outcomes of your marketing efforts—what will change in the organization, among customers, or in the marketplace as a result of strategy implementation? Use the SMART principle (Specific, Measurable, Achievable, Relevant, Timebound) as a way to ensure the clarity, strength and integrity of the plan’s objectives.

Marketing strategies. Lay out a powerful set of strategies designed to reach the marketing objectives. These strategies articulate precisely how Target will grow its multicultural market share with the tools of the marketing mix being used in this case: digital/social media and special events promotion. It is highly recommended that the plan include some basic marketing budget projections to ensure a realistic strategy—it is acceptable to make reasonable cost assumptions using media/production/implementation information available to the team.

Marketing tactics/executions. This is an opportunity to visually and audibly express the marketing plan to consumers. The offline/online communications and promotional events detailed in this section must tie back to the stated objectives and strategies, as well as reflect the unique profile and characteristics of the multicultural market segment being targeted. These various executional elements must be presented as part of an integrated marketing communications effort that ensures consistency of brand image and message across platforms. The team must include actual creative executions for each media channel recommended. These executions should be presented as professionally as possible, but the judges recognize that student teams have limited production resources. For example, if TV/video is recommended as an executional element, the team should produce at least a multi-frame storyboard that demonstrates the final video production with visuals and text.


Company Information Who is Target? Target Corporation (NYSE:TGT) is the nation's #2 discount chain (behind Walmart). The fashionforward discounter operates about 1,765 Target and SuperTarget stores in 49 U.S. states, as well as a robust online business at Target and its larger grocery-carrying incarnation, SuperTarget, have carved out a niche by offering more upscale, trend-driven merchandise than primary rivals Walmart and Kmart. One method used to accomplish this differentiated strategy has been to establish exclusive affiliations with well-known fashion and home goods designers. Target also issues its proprietary Target credit card, good only at Target. The first Target store opened in 1962 in the Minneapolis suburb of Roseville, Minn., with a focus on convenient shopping at competitive discount prices. After a reversal in fortune that coincided with the onset of the deep recession, Target is growing its grocery business, aggressively remodeling and expanding stores, and—in 2013—venturing into the Canadian market. New stores range in size from approximately 127,000 square feet to approximately 174,000 square feet. Additionally, Target operates 37 distribution facilities nationwide. Target opens new stores three different times each year—in March, July and October—to align with the major merchandising themes that set in our stores: Spring, Back-to-School and Holiday. As a publicly-owned, U.S. company based in Minneapolis, MN, Target has a global presence with a headquarters location in India and sourcing offices around the world. In addition, the company operates a credit card segment that offers branded proprietary credit card products and rewards programs. Since 1946, Target has given 5% of its income through community grants and programs; today, that giving equals more than $3 million a week. You can learn more about the organization, its products lines and merchandising, and its brand messaging on the corporate website, YouTube channel, Facebook page, and Pinterest site What is the role of Target in the community? Since 1946, the corporation has given 5% of its income to communities through grants and a variety of programs like Take Charge of Education®. Today, that giving equals more than $3 million a week, largely directed towards supporting education. As one of America's largest corporate philanthropists, volunteerism is at the heart of Target. Since Target first opened its doors, team members, retirees, family and friends have volunteered millions of hours to community projects. Additional information regarding Target’s commitment to corporate responsibility can be found at What is the Merchandising Strategy? The merchandising mission of Target is to drive profitable market share growth by fulfilling its Expect More. Pay Less. brand promise. Target is dedicated to providing guests with the right merchandise mix, from everyday commodities and grocery offerings to trend-right home and apparel lines. To remain relevant to its guests over time, Target merchandising is focused on the following areas: •

Differentiation is about the unique and compelling merchandise guests can only find at Target – from exclusive merchandise by top designers, to our industry-leading list of signature national brand, to our exclusive owned-brand portfolio.

Value and low price promise is a balance of design, quality and affordability.

Reliability is about having what our guests’ want, when they want it, where they expect to find it.

Frequency is about increasing our guests’ visits to our stores by creating a convenient shopping experience that meets their lifestyle needs. 3

Who is the Typical Target Guest? We work to appeal to a range of guest segments, including women, kids, teens, young singles and families. Our guests are young, well-educated, moderate-to-better income families who live active lifestyles. The median age of our guests is 41, the youngest of major discount retailers. They have a median annual income of $63,000. 56% have completed college and 44% have children at home.

Market Information and Resources Retail USA: What's in Store 2016 (Source: Nielsen Research) Traditional mass merchants and supermarkets have yielded share to value channels (club, dollar, and supercenter) and drug stores, prompting a series of changes running the gamut from format blurring to new marketing outreach techniques to shopper-tainment. Key retail trends include: •

Go micro or macro. Store footprints either get supersized for one-stop-shop convenience or downsized into smaller stores for quick grab-and-go trips.

That’s shopper-tainment! For people who view shopping as entertainment that engages all the senses, lifestyle outlets blur the line of demarcation between traditional formats, merging restaurants with food markets, serving up food and wine tastings, providing live music and movies, and creating places for friends and co-workers to gather and socialize.

Technology brings consumers into the shopping experience via options such as touch screen ordering, QR code advertising, mobile coupons and shopping lists.

What’s in a [brand] name? Enough to see store brands mushroom to include super premium offerings joined by an increasing number of restaurant and celebrity-chef brands, while a few consumer packaged goods brands transitioned onto restaurant menus.

Expect the Big 4 technology companies [Amazon, Apple, Facebook, Google] to establish beachheads outside the tech world, challenging conventional players to re-think their business models and forge new alliances or chance seeing themselves become less relevant.

Deep discounters continue to keep the cap on operating costs in order to maintain their price edge, but low prices alone have not been enough to guarantee sales success.

Retailers will be challenged as never before in the next five years to differentiate from an everexpanding competitive set that brings novel ideas and fresh perspective to the marketplace. Using historical trends in retail channel sales and store counts, along with a select number of macroeconomic variables, Nielsen predicts above average compounded annual dollar sales growth (CAGR) for the ecommerce, club, dollar, pet store, supercenter and drug channels ranging from 8.5 to 2.7%. It should come as no surprise that ecommerce tops the list of growth channels. During the 2011 holiday season, retailers across different channels touted free shipping and big discounts, attracting consumers eager to save time and gas money by shopping at their fixed and mobile keyboards. 4

Responding to sales gains made by online competitors, brick-and-mortar retailers are evolving their business models to add more choices for online and offline ordering as well as delivery and pick-up options. Black Monday (the big day for online holiday shopping) appears to be garnering media coverage equal to the historical coverage of Black Friday (the day after Thanksgiving). 2010 Population Census Summary (Source: More than half of the growth in the total population of the United States between 2000-2010 was due to the increase in the Hispanic population (15.2 million), growing by 43% (four times the growth in the total population). The total U.S. population grew by 9.7%, from 281.4 million in 2000 to 308.7 million in 2010. The Black population increased at a faster rate than the total population, growing by 12% from 34.7 million to 38.9 million. The Asian population increased more than four times faster than the total U.S. population, growing by 43% from 10.2 million to 14.7 million. The non-Hispanic White population share of the total population decreased. While the non-Hispanic White alone-or-in-combination population increased numerically from 198.2 million to 201.9 million, it grew by only 2% over the decade. This, coupled with the tremendous growth in other groups such as Hispanics and Asians, contributed to the non-Hispanic White alone-or-in combination population’s proportion of the total population to decline from 70% to 65%. The Changing Demographic Profile of the United States (Source: Congressional Research Service) The United States, the third most populous country globally, accounts for about 4.5% of the world’s population. The U.S. population—currently estimated at 308.7 million persons—has more than doubled since its 1950 level of 152.3 million. More than just being double in size, the population has become qualitatively different from what it was in 1950. As noted by the Population Reference Bureau, “The U.S. is getting bigger, older, and more diverse.” The objective of this report is to highlight some of the demographic changes that have already occurred since 1950 and to illustrate how these and future trends will reshape the nation in the decades to come (through 2050). The United States Is Getting Bigger. U.S. population growth is due to the trends over time in the interplay of increased births, decreased deaths, and increased net immigration. The United States Is Getting Older. Aside from the total size, one of the most important demographic characteristics of a population for public policy is its age and sex structure. This report illustrates how the United States has been in the midst of a profound demographic change: The rapid aging of its population, as reflected by an increasing proportion of persons aged 65 and older, and an increasing median age in the population. The United States Is Becoming More Racially and Ethnically Diverse, reflecting the major influence that immigration has had on both the size and the age structure of the U.S. population. This section considers the changing profile of the five major racial groups in the United States. In addition, trends in the changing ethnic composition of the Hispanic or Latino origin population are discussed. Although this report will not specifically discuss policy options to address the changing demographic profile, it is important to recognize that the inexorable demographic momentum will have important implications for the economic and social forces that will shape future societal well-being. There is ample reason to believe that the United States will be able to cope with the current and projected demographic changes if policymakers accelerate efforts to address and adapt to the changing population profile as it relates to a number of essential domains, such as work, retirement, and pensions; private wealth and income security; the federal budget and intergenerational equity; health, healthcare, and health spending; and the health and well-being of the aging population.


The American Hispanic Consumer Market (Source: Nielsen Research) The U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred in the most populous states and is beginning to occur among the U.S. baby population. The future U.S. economy will depend on Hispanics by virtue of demographic change and the social and cultural shifts expected to accompany their continued growth. Over 52 million strong, Latinos are impacting every aspect of the national landscape including popular culture, the workforce, consumerism, politics and American national identity. The Hispanic market’s size, growing clout, and buying power of $1 trillion in 2010 and $1.5 trillion by 2015 require thoughtful understanding about what the market represents to a company’s bottom line. It has become increasingly important to challenge commonly held misconceptions about the Latino market that undermine the importance of its size, uniqueness, and value. The topics of this report draw on compelling evidence of market change and the perspective of marketers who have proven success in the Latino marketplace: •

Latinos are a fundamental component to business success, and not a passing niche on the sidelines.

Rapid Latino population growth will persist, even if immigration is completely halted.

Latinos have amassed significant buying power, despite perceptions to the contrary.

Hispanics are the largest immigrant group to exhibit significant culture sustainability and are not disappearing into the American melting pot.

Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics.

Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market.

Hispanics already account for an important share of consumer expenditures and given their youth, educational advances, and increasing spending capacity, Hispanics are fast becoming preeminent drivers of growth and likely trend setters in the marketplace. Marketers will need to understand the what, where, how and why of their role in tomorrow’s consumption space. In forecasts of future consumption growth, the Hispanic share is significantly greater than that of nonHispanics. The evidence for the distinctiveness and sustainability of Hispanic culture is convincing and implies a future American culture with a strong Hispanic flavor. Finally, it is instructive to recognize that unique and useful vehicles for reaching Hispanics exist around language, media consumption, and technology adoption. Given the total market’s dependence on Hispanics for future growth, tapping Hispanic preferences and purchasing behaviors is essential for any strategy or marketing plan to be successful. The U.S. African-American Consumer Market (Source: Nielsen Research) The African-American consumer population continues to be a vibrant and dynamic market segment, providing both emerging and mature market attributes. Still the largest racial minority group in America, its buying power reached $957 billion in 2010 and is projected to be $1.1 trillion by 2015. Below are some key facts about the Black consumer market: •

Total advertising spent in Black media totaled $2.10 billion in 2011, compared to $120 billion spent with general market media during the same period.

91% of Blacks believe that Black media is more relevant to them.

Brand name products represent 82% of Black households' total purchases compared to 31% for private labels. 6

81% of Blacks believe products advertised on Black media are more relevant to them.

54% of African-Americans own a smartphone, an increase from 33% last year.

54% of the Black population is under 35; compared to 47% of the general population.

48% of Black grandparents live with their grandchildren and serve as primary caregivers.

African-American Baby Boomers (45-64) spend more time at the stores or grocers, fast food restaurants and the gym; and prefer television and print as primary media sources.

Generation Y (18-34) are more likely to spend time at someone else's home; and selected radio, mobile phones and gaming consoles are their media of choice.

Black consumers remain at the forefront of social trends and media consumption. This increasingly diverse and complex consumer segment is comprised of important sub-sectors: Millennials, Baby Boomers, urban and suburban dwellers, single mothers and grandparents. There is a disparity in advertising dollars spent with African-American media, suggesting a need for more fair methods of administering advertising spending to better reflect and align with Blacks’ preferences and the media environments most trusted by Black consumers. Companies should seek to better understand their unique lifestyles, habits and shopping patterns to enhance their chances of creating better connectivity with Black consumers. The U.S. Asian-American Consumer Market (Source: Nielsen Research) The Asian-American market represents a significant growth opportunity for the nation’s businesses that sell goods and services. Asian-American consumers provide growth opportunity to businesses by appealing to a consumer base that is growing, affluent, well-educated, technologically savvy and has a tremendous buying power that continues to soar. The Asian American population is approximately 18.2 million and has increased over 50% since 2000, the highest growth rate of any multicultural segment in the U.S. You cannot afford to keep Asian Americans under the radar any longer. This is a segment that is vital to your business growth and success. Asian American median household income is 28% higher than the total U.S. median income. Fifty percent of Asian Americans age 25+ have a Bachelor’s degree, compared to 28% of this same group nationwide. This demographic offers an attractive potential market growth. Over the past decade, the Asian American population has grown at double-digit rates in 49 out of the 50 states. In fact, a dozen states have counties that have seen growth rates of over 200%. Although growth is occurring throughout the nation, almost 40% of all Asian Americans can be found in three Designated Market Areas (DMAs) – Los Angeles, New York and San Francisco. In addition, 60% of Asian TV Households reside in the top 10 DMAs, and nearly 85% of all Asian Americans live in 33 of Nielsen’s 212 media (television) markets. By focusing on a targeted set of geographies, reaching Asian American consumers is very cost effective. While television is still a dominant medium for Asian Americans, the digital space is rapidly providing additional consumer touch points for advertisers. In-language print media and radio are also popular and effective alternative resources. When compared with other multicultural segments, Asian Americans more frequently utilize multiple digital screens to view programming and videos. Asian Americans are a powerful consumer base with $718 billion in 2010 buying power that is expected to reach $1 trillion in just five years, equal to the 18th largest economy in the world.


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