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The Vanishing Mass Market And The Need for AA Targeted

Communications

May 13, 2005

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What I will discuss

Is the current advertising trend of “racial utopia” an effective way to reach AA’s?

How do you develop effective AA advertising?

How an untapped segment can generate product growth?

How AA’s insights can create new targets

Ads that offend

The overall opportunity

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“Somewhere there’s an America that’s full of neighborhoods where black and white kids play softball

together, biracial families email photos online, and Asians and blacks dance in the same nightclub – and

that America is on your television.”

- Erin Texeria, AP Reporter

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“The lens through which people learn about other races is through TV – we’re getting a lens of racial interaction that is afield from reality.”

- Charles Gallagher, Georgia State University

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Does TV Mirror Reality?

In the world of TV commercials, Americans are increasingly living together side-by-side, regardless of race

But do these ads gloss over persistent and complicated racial realities?

Though the proportion of ethnic minorities in America is growing, more than superficial interaction between groups is still relatively unusual

Most Americans overwhelmingly live and mingle with people from their own racial background

“Ads would make it seem that race doesn’t matter, when real life would tell you something different.”*

–* Charles Gallagher, Georgia State University

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Does TV Mirror Society?

Only about 7% of all marriages are interracial

About 80% of whites live in neighborhoods in which more than 95% of their neighbors are also white

Data also shows that most Americans have few close friends of another race

“If you look at the United States in terms of where we live, who our friends are and where we go to church, we live in different worlds.” (Charles Gallagher, Georgia State University)

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Anheuser-Busch: Cedric The Entertainer

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Dannon Yogart: Getting Married

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Pulling The Threads Apart

The uniqueness of the AA historical experience has engendered a set of attitudes that affect every aspect of life

AAs differentiate general market advertising from that which is specifically tailored to them via the presence of unique cultural cues

It is these cues which are truly grounded in the "black experience" that make for the most relevant, effective AA targeted advertising

In this highly-multicultural climate when general markets ads are often peppered with AA casting, AA-appealing music and AA originated slang, it is important to go deeper

Use cultural cues in an innovative, fresh way that serves as a personal invitation to the AA market

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AA’s Desire Marketers To Extend An Invitation

Advertising85%

TV/other commercials

should feature more

African-Americans

Shopping74%

A lot/somewhat more

likely to buy a product that uses

African Americans in its

commercials

Shopping

62%Seek products

that reflect African culture and heritage

Source: Yankelovich Monitor Multicultural Marketing Study, 2003

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So What Does An Invitation Mean?

Using AA casting has long been a way to overtly address the AA audience

It is true that recognition in the form of AA talent goes some way to differentiate, but it is not necessarily enough to resonate

In addition, as multicultural communication becomes more prevalent, it loses its rarity value Clear AA-targeted communications become even more

appreciated by the segment

AAs know when you’re not making an honest effort

Reward brands that do it (e.g., McDonald’s)

Walk away from brands that stop (e.g., Dr. Pepper)

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Attitudes About Advertising

AAs generally want to be accepted and acknowledged as important consumers

There is a natural tendency to look at advertisements for a deeper meaning and a hidden message about them as Black people

When they see and hear advertisements, there’s a tendency to evaluate them literally, with a focus on determining if the company acknowledges, respects and accepts their uniqueness and differences as consumers

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Attitudes About Advertising

Observation vs. immersion

There is a difference between advertising that merely reflects the external visage of the AA culture and that which originates from within it

It’s about aspiration and finding a message that will resonate with AAs and be relevant to their lives

Positive Re-affirming: “How did they know this about me?” Empowering: “Give me information that I can use to help

make a decision.”

Negative Patronizing: “Hey black people, I’m doing an ad for you.” Ambivalence comes out: “I don’t need it, you’re singling me

out.” to “I’m glad you’re recognizing me.” Cliché: Too many brands doing it – loses effectiveness

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The Vanishing Mass Market

The mass market as it has been defined, no longer exists

Much more heterogeneous across the board

The key to having sustained branding success is relevance with the consumer’s life

Fragmentation is a key driver, customization is the new standard and technology is empowering consumers to filter out contact from irrelevant marketers

Brands need to be more focused in their communications – one-size-fits-all branding approaches don’t necessarily work

Recognize the differences amongst larger segments of the population

McDonald’s, Allstate, Procter & Gamble

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The Ideal

Effective communication stems from a deeper human truth as applied to a brand or category

For success, an in-depth understanding of the AA audience as well as experience handling brands across time and space (to manage their equity) will be critical

Only with this balance can strategy and executions be highly targeted and on brand

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Only An Expert Can Navigate

It is critical to recognize that the AA community is no more homogeneous than the GM community

Any AA target needs to be recognized for their ethnicity and their demographic and psychographic characteristics within this

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Verizon And A traditional approach

One approach fits all

Develops multiple spots for multiple segments, but based on the same key insight or strategic direction

Executions are differentiated via casting, language and music cues

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Verizon: The Elliott's

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Verizon: The Davises

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Verizon: The Sandoval's

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Key Insights Differentiate MM vs. AA

Great advertising is based on a insight and very often the AA insight is different than that of the General Market

Allstate Brand campaign uses the same AA spokesperson for both

general market and AA, but used targeted insights and execution to connect target and brand

MM Insight: Fear and insurance needs “for yourself” AA Insight: Caring for your families future

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Allstate: Swoop And Squat

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Allstate: Family Reunion

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Key Insights Differentiate MM vs. AA

Launch campaign for Tide with Downy used nuanced AA insight to ladder to a more holistic proposition and a celebratory execution

MM Insight: Fabric softener brings comfort and softness to your life

AA Insight: “Freshness”

The Father/Son aspirational relationship also worked emotionally for AAs

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Tide: Rooster

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Tide: Nostalgia Dad

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Key Insights Differentiate MM vs. AA

Launch campaign for a new McDonald’s chicken product uses the same platform executed differently to address target’s overall view of food and brand relationship

AA Insight: Chicken is a staple food in AA households and chicken from McDonald’s was not believable. Thus taste reinforcement was essential

MM Strategy: “Defend Your Chicken”

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McDonald’s: Chicken Selects

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McDonald’s: Campus

Inclusive Crossover Targeted

Based on GM insight – also relevant to AA or English Dominant Hispanics

Work incorporates broadly relevant AA or English Dominant Hispanic strategy, insight, casting, or subtle cues

Based on AA or Hispanic insight – also relevant to GM consumers

Work incorporates explicitly multicultural strategy, casting and cultural cues – yet is universally appealing

Based on strong AA or Hispanic product appeal and insight

Work is inherently relevant to AA or Bilingual/Spanish Dominant Hispanics based on strategy and cultural cues

GM Brand Champion Growth opportunity to reach

broader consumer base Limited product or concept

appeal to either Hispanics or AA

AA or bi-cultural Hispanic Brand Champion

Multicultural growth opportunity Insight is broadly appealing but

routed in AA or Hispanic cultural insight

Brand wants more contemporary image

Significant consumption with AA or Bilingual/Spanish Dominant Hispanics

High CDI/low BDI with AA/Hispanics A need for more deeply rooted insight

and strategy to reach AA or Hispanic market

Insight is sometimes a universal human truth focusing on commonalities

Often youth/urban-focused or trend-driven

May have limited dialogue, be bilingual or music-driven

Sometimes called influencer or multicultural strategy

Acknowledges unique culture, language, aspirations, habits, and attitudes

Could be used as a primary or secondary strategy

Multicultural Strategic Framework

De

fin

itio

nC

rite

ria

Co

mm

en

tsTargeted

Crossover

Inclusive

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AA Advertising Can Grow Market Share And Renew Stagnant Brands

Kraft Foods wanted to penetrate the AA market with Stove Top Stuffing, a 15-year old product “Stove Top Stuffing”

General Foods pioneered the product category of stuffing mix as a side dish

Target: Women 18-54

Recently positioned as alternative to other side dishes “Stove Top instead of potatoes”

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Concept/Theme Development

Burrell approved the assignment with a set of general hypothesis, including the following:

1. AA’s are more likely to use the term “dressing” instead of “stuffing.” Therefore, many did not consider the brand when selecting side dishes

2. AA’s prefer a cornbread stuffing to the tradition turkey-based product that was the company’s leading seller; black women would have concerns about the taste

3. AA’s view stuffing as something made at home and from scratch– not out of the box

4. There is a traditional aspect to stuffing among AA’s, with recipes being handed down from one generation to the next

5. Traditional AA holiday meals include stuffing and potatoes, so positioning the product as an alternative to potatoes was an ineffective approach with the audience

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What Were The Results

The agency’s basic premises were confirmed, however there were some other key learnings:

The women were resistant to a box stuffing because some feared their children would not eat it

Women expressed concern about “cheating” by serving a product that is usually made from scratch

Differences also emerged between younger and older consumers: Younger women, many who were employed, found the

products convenience appealing

Older women were more likely either to stick with homemade stuffing or to use Stove Top as a foundation to a semi-homemade product

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New Target Identified

The AA market is not homogeneous and thus, we encompass multiple targets

AA consumer research on McDonald’s led to the development of a new target: Single Moms with Kids

More AA’s are single moms than any other ethnic group Developed AA Women 18- 34 target vs. the traditional

Moms target of 25-49 More value conscious than Married Moms

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Advertising That Offends

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Twix: Am I Fat

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T Mobile: Poser

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The Overall Opportunity

AA audiences still give credibility to those who target them and unlike their general market counterparts are still open to aspirational validation

Positive messages around recognition, home and family are still resonant and powerful

Overt/observational targeting can however be a turn off, especially for younger audiences – authenticity is key

For the brands that get it right, the resulting loyalty is stronger with AA audiences