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Javier Delgado

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What: We caught up with industry pioneer Rochelle Newman-Carrasco of Walton Isaacson at the ANA Multicultural Conference and asked her a few questions about the growing momentum of The Alliance of Multicultural Marketing (AIMM).
Why It Matters: Carrasco shared insight from the founding members of AIMM in order to provide a range of perspectives on areas of importance to the industry.

In October 2016, the Association for National Advertisers took an important step in encouraging the industry’s progress when it established the Alliance for Inclusive and Multicultural Marketing to establish a “powerful, unified voice for the advancement of multicultural marketing.” A year later, the group is working cooperatively, transparently, and methodically to set the groundworks for a marketing industry that better reflects today’s diverse audiences.

Industry Must ‘Separate Excuses from Legitimate Concerns’

When the AIMM met in August 2017, it was stated that accessibility, accuracy, and affordability of multicultural-specific data were some of the most significant obstacles in developing effective strategies for advancing Multicultural. But what strategies are in place to tackle these challenges?   

Carlos Santiago, President of Santiago Solutions Group explained: “The Alliance is identifying issues that are standing in the way of progress and then bringing unified industry clout to the table in order to change supplier behavior insofar as diverse consumer groups are concerned.”

There is a tendency (perhaps due to lack of access effective data) to make excuses when it comes to Multicultural, and “the key is spending the necessary time to separate excuses from legitimate concerns – having zero tolerance for cop-outs like ‘it’s too hard’ or ‘it’s too expensive,’” Santiago added.

Santiago explained that the “siloed approach to problem solving” may not work as well as “having diversity of thought come up with innovative solutions,” which is why the Metrics and Measurement Committee, led by Gonzalo del Fa of Group M Multicultural (who is also a Portada Editorial Board member), has “laid out a really robust plan of action, and [the group is] moving into a very exciting stage of implementation that will include a Multicultural Data Roundtable.”

‘It’s No Longer Possible to Keep this Failure Hidden’

This is not the first time that marketers have sounded the alarm and expressed how urgent this Multicultural crisis is. So what’s different this time?

Rochelle Newman-Carrasco, EVP at Walton Isaacson, insisted that “it’s no longer possible to keep this failure hidden, especially from internal and external stakeholders for whom ‘multicultural’ is more than a department.”

Failing to reach and connect with Multicultural audiences has real implications for all serious brands in today’s world, and “for many consumers and employees, multicultural matters are life and death matters — matters of image and identity that can inspire or alienate generations to come,” Carrasco said.

‘Whole Communities of Consumers Are Missing or Minimized’

Perhaps one of the first steps in making real progress is holding brands accountable for their lack of effort. Carrasco explained that “poor performance is directly related to segment-specific neglect, whole communities of consumers are missing or minimized throughout the marketing cycle—missing from staffing, budgeting, and creative representation.”

Poor performance is directly related to segment-specific neglect, and whole communities of consumers are missing or minimized throughout the marketing cycle—missing from staffing, budgeting, and creative representation.

While some more visionary brands are stepping up to make their Multicultural efforts more than a symbolic gesture, “other brands are having their course corrected by consumers who will no longer accept failure at their expense,” Carrasco insisted. “Marketers must understand that culturally-specific marketing is not just a theoretical exercise or something to track in the P&L or on a spreadsheet.”

Brands ‘Discovering Ways to Balance the Benefits of Collaboration with Restrictive Guardrails’

While sharing Best Practices and lessons learned from experiments in Multicultural are key if the industry as a whole is to progress, “certainly there is a natural reticence to share proprietary details” said Lisette Arsuaga, Co-President and COO of Davila Multicultural Insights. But she emphasized that this is changing, and that “brands are discovering ways to balance the benefits of collaboration with restrictive guardrails.”

What do brands get out of sharing and collaborating? “Participation in an exchange that triggers discovery and progress in ways that hunkering down and walling off a brand do not,” Arsuaga said.

Within the framework of AIMM, we see brands seizing opportunities to enter into dialogue with one another and to offer up their processes while taking in the learnings of others.

“Within the framework of AIMM, we see brands seizing opportunities to enter into dialogue with one another and to offer up their processes while taking in the learnings of others.”

Arsuaga also added that making a unified effort to bring in new, diverse talent is key: “Multicultural cannot reach its full potential without filling a pipeline with new talent and joining together to do so.”

The ‘Total Market’ Problem

After the August meeting, Carrasco of Walton Isaacson asserted that the AIMM was exploring the effectiveness of the term ‘Total Market,’ saying that “while the Total Market Committee has not yet repealed and replaced the phrase ‘Total Market,’ there is data to support that its usage, and often random application, has hindered rather than helped marketers to powerfully connect with multicultural communities.” Since then, AIMM’s Total Market Committee, led by David Cardona of Clorox and Javier Delgado of Coca-Cola, has dedicated a significant amount of effort to reaching a definitive conclusion on how well ‘Total Market’ works for the industry, launching a campaign called #TotalMarketDoneRight.

Gilbert Davila, Chair, ANA Multicultural Marketing and Diversity Committee asserted that “AIMM’s aim is to shatter myths and address the many misinterpretations that have occurred since this concept was introduced several years ago.”

Davila explained that “Total Market was intended to level the playing field and bring multicultural marketers to the mainstream marketing table where they rightly belonged…Instead, the concept became a convenient excuse for eliminating resources and budgetary line items in the name of efficiencies.”

While Total Market was supposed to address the “absence of multicultural consumers in what is often referred to as ‘mainstream’ marketing, it was not intended to eliminate culturally targeted marketing nor was it meant to make cultural specialists irrelevant,” Davila clarified.

‘If You’re Not Reflecting Diverse Audiences You’re Rejecting Diverse Audiences’

Where will the AIMM go from here? While Davila reinforced that “AIMM is laser-focused on bringing back the integrity of marketing that is both universal and unique,” the renewed and refreshed commitment to this topic will require concrete actions that the group is ready to spearhead.

Marketers create messages that impact the mirror we hold up to America and the world – if you’re not reflecting diverse audiences you’re rejecting diverse audiences and that’s not solved with casting, it’s only solved with clarity and commitment.

Santiago of Santiago Solutions Group described the AIMM’s approach as “going down a path of disruption and innovation and avoiding the well-worn traditional approaches to quick but unremarkable fixes.”

The intent is there, but hopefully action will follow. “Marketers create messages that impact the mirror we hold up to America and the world – if you’re not reflecting diverse audiences you’re rejecting diverse audiences and that’s not solved with casting, it’s only solved with clarity and commitment,” Carrasco emphasized.

Awards in 8 different categories are up for grabs. Vote now! One of the most coveted categories is the Top Marketer to Hispanic Audiences, with major nominees such as Xavier Turpin, Multicultural Marketing Director Dunkin’ Brands, Julian King, SVP Marketing & Corporate Development, Xoom, Javier Delgado, Marketing Director, Walmart, Alejandro Juarez, Director of Communications and Education – UnitedHealthcare Latino Health Solutions, Trisha Ranes, Sr Marketing Manager, H&R Block and Fabian Castro all running! Check out the nominees and then vote!

2015 Hispanic Advertising and Media Award Nominees

15-logo-hispanic-awards copy

TOP MOBILE MARKETING CAMPAIGN

  • UEFA Champions League Champion the Match Promotion
  • Red Lobster Movil
  • T-Mobile
  • Home Depot/Briabe
  • Avianca Adsmovil Ad Exchange
  • AT&T Mobility

TOP 2015 SPORTS MARKETING CAMPAIGN

  • Coca-Cola/Estadio de Todos
  • ESPN Deportes
  • DishLATINO
  • El Clasificado
  • Coca-Cola/Jersey Exchange
  • Allstate

TOP CONTENT PROVIDER TO HISPANIC AUDIENCES

  • Batanga Media
  • Festival People en Español
  • Mercado Bilingue
  • OLYMPUSAT
  • El Clasificado

TOP HISPANIC ADVERTISING CAMPAIGN

  • Soccer.com/AC&M Group
  • DishLATINO
  • MetroPCS/Richards/Lerma
  • Pizza Patron/Richards/Lerma
  • Coffee-mate/Casanova Pendrill
  • Recreational Boating and Fishing Foundation – Lopez Negrete Communications
  • Coors Light
  • FURIOUS 7 / Universal Pictures

TOP HISPANIC DIGITAL ADVERTISING CAMPAIGN PLAN AND EXECUTION

  • ​​Dias Grandiosos con Kellogg’s and Major League Baseball
  • Coca-Cola and Social@Ogilvy
  • Honda Fit
  • Tampico Moms – Roar Media
  • Kia/Identity
  • Corona Extra/Horizon Media
  • Recreational Boating and Fishing Foundation Hispanic Campaign – Lopez Negrete Communications

TOP INTEGRATED HISPANIC MARKETING CAMPAIGN

  • Verizon FIOS/Mercado Billingue
  • Ortho Nova/Latin2Latin Marketing
  • McDonald’s/D Exposito & Partners
  • Discovery en Español
  • DishLATINO
  • Ford Motor Company / Azteca America
  • Kimberly-Clark/Mindshare
  • Focus Features Insidious: Chapter One/BARU
  • Partnership for Drug Free Kids / Hilary Baris
  • Oscar Mayer Carving Board/SMG

TOP MARKETER TO HISPANIC AUDIENCES

  • Hispanic Heritage Foundation
  • Target
  • Xavier Turpin, Multicultural Marketing Director Dunkin’ Brands
  • Julian King, SVP Marketing & Corporate Development, Xoom
  • Javier Delgado, Marketing Director, Walmart
  • DishLATINO
  • Alejandro Juarez, Director of Communications and Education – UnitedHealthcare Latino Health Solutions
  • Trisha Ranes, Sr Marketing Manager, H&R Block
  • Fabian Castro / Universal Pictures

TOP MEDIA PROFESSIONAL OF THE YEAR

  • Phillip Morales, Editor in Chief, Mercado Bilingue
  • Juan Carlos “JC” Balarezo, ‎Director of Media Relations, EPMG
  • Elizabeth Barrutia, President & CEO, BARU Advertising
  • Gloria Constanza, Partner & Chief Contact Strategist, d expósito & Partners
  • Eder Holguin, Founder and CEO, Ideal Media
  • Pedro Rodriguez, Director of Integrated Marketing, People en Español

VOTE HERE!

Walmart’s Every Day Low Prices (EDLP) policy is having a clear impact on advertising in multicultural media. The Bentonville, Arkansas, retail giant is scaling back TV advertising, newspaper circulars and in-store displays in an effort to refocus on EDLP. What Javier Delgado Granados, Multicultural Marketing Director at Walmart and Hispanic media executives have to say.

Javier Delgado Granados, Multicultural Marketing Director at Walmart, tells Portada that Walmart has reinvigorated its focus on EDLP and that this has the following implications for advertising: “Operating under this model affects all we do at Walmart, including how we negotiate with our suppliers, how we advertise and how we go to market with price. In comparison to last June, we’ll run roughly half of the number of circulars. At the same time, the items and prices that are highlighted will last two weeks vs lasting one week. We’re focused on long-term loyalty, not a weekly sale.” Delgado’s comments refer to Walmart’s newspaper advertising in general, but Hispanic newspapers have also been hit. (Check out our exclusive interview today with Trevor Hansen, CEO of EPMG, the firm that places Walmart circulars in Hispanic print media).

In comparison to last June, we’ll run roughly half of the number of circulars.

Walmart3Delgado adds, however, that digital media expenditures are increasing. “We’ve also increased our digital spend – serving solutions to customers we know are looking for particular products while searching and shopping online.” “Our intention is to follow the customer and the General Market and Multicultural media behaviors are shifting dramatically,” Delgado concludes.

Newspaper Inserts have been a popular vehicle for big box retailers, especially when they are placed in large circulation home-delivered newspapers. Martha Kruse, Multicultural Marketing Director at Rooms to Go, tells Portada that she thinks that “the home-delivery distribution method of Hispanic newspapers can be very powerful.” Rooms to Go places English-language circulars in many Hispanic newspapers including Al Dia de Dallas and La Voz de Houston.

Hispanic Publishers to Walmart: Listen to your Regional Marketing Managers

WalmartNow Hispanic newspaper publishers are encouraging Walmart to bring the creative process and media planning to second and third tier suppliers who are on the ground and understand how the communities engage with print and their brands.
“If Hispanic market is one of their main goals, we hope Walmart will start applying their own retail strategy, visit their stores and listen to employees and local stores managers to media and go and visit the publications and the organizations who place the media,” says Martha Montoya, publisher of Seattle, WA based El Mundo newspaper. I am “very disappointed in Walmart’s short-sidedness in regards to the Hispanic Market. All indicators prove Hispanic Language Consumers are driving retail sales for Walmart and its peer retailers,” says Zulema Tijero, Sales Manager at Washington DC based El Tiempo Latino (owned by The Washington Post).

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Anita Grace, president of Anita Grace Ad Execs, and a sales representative for Freedom Communications, Gannett and AIM Texas Hispanic newspapers, says that “over and over newspaper inserts have been proven effective for retailers. I believe Walmart is getting caught up in the ‘apps and digital is enough and it’s cheap hype’. I would encourage my Hispanic print peers to develop relationships with their regional marketing manager and make sure they are aware of the cut. When they see a dip in numbers they know what to blame. Also we should encourage the regional managers to report back to corporate and ask for this program to be re-established.”
Other Hispanic newspaper publishers point out that it is their experience that their readers want the flyer in hand and that this includes Millennials. In the Hispanic market, there is no digital option to substitute a hand-delivered quality product to the front door that encompasses multiple generations, they claim.

Hispanic: Down in Digital and Mag. Advertising

According to Media Economics Group, overall, Hispanic magazine ad spend in the Department Stores category, which includes Target, Walmart and other big box retailers) is up by about 130% this year. However, so far this year Walmart ad spending in Hispanic magazines is $285,200 down 43% from $500,910 same period last year. This year, Walmart ranks sixth (down from third in the same period last year) among all retailers in ad spending in Hispanic magazines (Macy’s is first with US $2 million in spending).

While, as Delgado points out Walmart may be spending more to reach out to consumers via digital media, its activity “has been virtually non-existent on Hispanic digital properties,” says Carlos Pelay, president of Media Economics Group. .”In contrast, during January – May, 2014 Walmart accounted for 25.8% of all ad occurrences in the department store retail category on Hispanic websites – second only to Target (35.6%).

Hispanic Magazines Spending of Retailers (Jan-Jun 2015)

Company20142015Change
Macy’s, Inc.$383,679$2,004,908422.5%
JC Penney$0$471,081na
Target Corporation$312,257$407,02130.3%
Wal-Mart Stores, Inc.$454,690$285,200-37.3%
Saks Incorporated$9,720$9,7200.0%
Sears Holdings$222,747$0-100.0%
TOTAL$1,383,093$3,177,930129.8%

SOURCE: Media Economics Group

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