LERMA/ has evaluated more than 5,600 brands distributed in the U.S. and measured 8 different data inputs to determine the BIPI score for each brand. 

 

Our goal is for BIPI scores to provide a baseline for helping gauge a brand’s diversity efforts, which can be used to improve upon or optimize diversity- related initiatives and determine long-term opportunities for growth within underserved audience segments. 

 

Scores are intended to be as objective as possible based on multiple data sources used to estimate a brand’s commitment to diversity and how well it is performing among diverse U.S. consumer audiences. All data inputs have been curated from existing publicly available sources and have been manually tabulated to establish benchmarks and ensure standardization, consistency, and appropriate weighting, as well as help ensure quality control. 

 

Brands have been evaluated based on 6 primary considerations:

Serve diverse consumer segments that comprise a notable proportion of the brand’s current consumer base

Commit to diversity and inclusion within leadership teams, employee hiring practices, vendor partnerships, and community outreach initiatives

Prove commitment and advocacy through relevant memberships in organizations focused on diversity and inclusion

Make dedicated financial investments in culturally relevant marketing that targets specific ethnic groups or underserved segments

Consistently maintain targeted advertising for diverse audiences

Maintain established partnerships with advertising and marketing agencies dedicated to cross-cultural and diverse segments

calculation method

BIPI scoring is refreshed annually based on the release of updated data inputs.

 

Brand Selection and Classification

The brands available in our BIPI scoring tool have been initially based on those available through syndicated U.S. data sources, including MRI and Simmons. Both available primary parent brands and their associated sub-brands have been included in the assessment.

 

Diversity Data Inputs 

MRI/Simmons data was used to analyze and determine the estimated multicultural composition of an available brand’s current consumer base, which included an assessment of White non-Hispanics, Black/African non-Hispanics, Other non-Hispanics, and Hispanics.

 

Seven additional data inputs for applicable brands were also included in the analysis, which were focused on at least one of the 6 primary considerations listed above. Data sources include:

 

  1. MRI Brand survey data – contains consumer data
  2. AIMM Members – member companies
  3. CIIM – list of companies running cultural campaigns
  4. Refinitiv – list of diversity and inclusion top 100 most diverse and inclusive companies
  5. Nielsen black marketers – D&I companies
  6. Culture Marketing Council – list of companies that have a dedicated Hispanic agency partner
  7. Dun and Bradstreet data
  8. Forbes – America’s Best Employer for Diversity
 
Scoring
Our team of data scientists developed a customized algorithm to provide a scoring system for each featured brand, which was based on data analysis that was weighted and valued. Brands were first sorted and grouped by Total Audience* (MRI/Simmons) and Sales Volume (Dun & Bradstreet) and divided into four “quartiles” based on their audience size and annual sales volume to ensure that the efforts of smaller brands were equally represented against larger, more established brands. Each quartile contains approximately 25% of the total records and maintains the parameters outlined below. Note that the quartile thresholds delineated may be updated as new brands are added to the list.
 
  1. Small: The first quartile contains brands that have the lowest audience sizes, which included those with less than 1,247. If an audience member was missing, sales volume was evaluated and included those brands with the lowest sales volume, including anything less than $182,104.
  2. Below-Mid: The second quartile includes brands than maintain an audience size between 1,246 and 3,865. In absence of audience size, sales volume was evaluated and included those brands that reported between $182,104 and $529,314.
  3. Mid: The third quartile includes brands that maintain an audience size between 3,865 and 11,171. In absence of audience size, branded included in this quartile had to maintain a sales volume between $529,314 and $2,301,006.
  4. Large: The fourth quartile includes those brands with the highest audience size (above 11,171) or highest sales volume (above $2,301,006).
 
Using MRI data, we then looked at the reported percentages of White non-Hispanics, Black/African American non-Hispanics, Asian non-Hispanics, Other non-Hispanics, and Hispanics.
 
Assuming that White non-Hispanics comprise about 60% of the U.S. population and all other races/ethnicities make up an estimated 40% (based on U.S. Census data), we then calculated a Multicultural User Index.
 
For instance, the multicultural audience for Colgate is estimated to be 48%. Seeing that the overall multicultural population of the U.S. is 40%, the Multicultural User Index was derived as: (48%/40%)*100 = 121.
 
Once a Multicultural User Index was determined, additional data sources from organizations such as AIMM, CIIM, Nielsen, and CMC were used as indicators for how invested a brand may be in diversity efforts. If a brand was included in these additional data sources, they were rated as having a “1” and if not included in the database lists, they were given a “0.” These additional inputs were summed and added to the Media Multicultural Index to each brand as follows:
 
  1. If all indicators were 0, then 70.
  2. If the sum of indicators was less than or equal to 2, then 100 (used as the base).
  3. If the sum was above 2, then 130.
 
The final ranking input included Forbes magazine’s ranking of the best U.S. companies for diversity. Brands were weighted as follows based on the Forbes ranking:
 
  1. If the brand was listed in the Forbes top 500, then 130.
  2. If the brand was not ranked, then 70.
 
Lastly, we gave 20% weightage to media indicators, 30% to Forbes indices and 50% weightage to the MRI brand survey to come up with the final weightage of the brand.
 
In summary, the calculations include the following:
 

Multicultural User Index*0.5 + Forbes Index*0.3 + Media Multicultural Index*0.2

 
If the final score was greater than 100, then brands were found to be more multicultural and assigned an index score accordingly.
 
 
*Total Audience – We aggregated total audience of sub brands in Main brand, there could be a chance of customer overlap.
 

We welcome your questions, suggestions, and even contributions. Please address any inquiries to srubio@lermaagency.com.

 

LERMA/ is a Dallas-based full-service branding, creative, and digital agency with over 50 employees who care passionately about creating insightful and relevant marketing strategies for an ever-evolving America.

 

We were founded in 2009 as a Hispanic-focused agency by Pedro Lerma in response to the evolving U.S. demographic and cultural landscape. Over the years, we have evolved into a lead agency across all consumer segments (African American, Asian, Hispanic, Non-Hispanic White). Part of that evolution has driven steady growth in our agency revenue and the ability to attract the best talent, invest in new technology, and be at the forefront of the changes in the advertising landscape.

 

We remain proudly independent, which allows us to define our own priorities to do great work, take care of our clients, and take care of our people.

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