The Vanishing Mass Market And The Need for AA Targeted Communications May 13, 2005

1. The Vanishing Mass Market And The Need for AA Targeted Communications May 13, 2005

2. 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

3. “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

4. “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

5. 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

6. 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)

7. Anheuser-Busch: Cedric The Entertainer

8. Dannon Yogart: Getting Married

9. 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

10. Advertising 85% TV/other commercials should feature more African-Americans Shopping 74% A lot/somewhat more likely to buy a product that uses African Americans in its commercials AA’s Desire Marketers To Extend An Invitation Shopping 62% Seek products that reflect African culture and heritage Source: Yankelovich Monitor Multicultural Marketing Study, 2003

11. 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)

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Verizon: The Elliott's

19. Verizon: The Davises

20. Verizon: The Sandoval's

21. 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

22. Allstate: Swoop And Squat

23. Allstate: Family Reunion

24. 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

25. Tide: Rooster

26. Tide: Nostalgia Dad

27. 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”

28. McDonald’s: Chicken Selects

29. McDonald’s: Campus

30. Targeted Multicultural Strategic Framework Crossover Inclusive Definition Criteria Comments

31. 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”

32. Concept/Theme Development • Burrell approved the assignment with a set of general hypothesis, including the following: • AA’s are more likely to use the term “dressing” instead of “stuffing.” Therefore, many did not consider the brand when selecting side dishes • 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 • AA’s view stuffing as something made at home and from scratch– not out of the box • There is a traditional aspect to stuffing among AA’s, with recipes being handed down from one generation to the next • Traditional AA holiday meals include stuffing and potatoes, so positioning the product as an alternative to potatoes was an ineffective approach with the audience

33. 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

35. 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

37. Advertising That Offends

38. Twix: Am I Fat

39. T Mobile: Poser

40. 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