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More than 800 marketing, advertising and media executives are gathering in Los Angeles for the Multicultural Marketing & Diversity Conference organized by the Association of National Advertisers (ANA). To include ethnic insights into overall (total) marketing strategies is crucial, many marketers noted. Pepsico’s Carlos Saavedra presented Pepsi’s cultural fluency marketing approach.

An overarching theme of Day 1 of the ANA Multicultural Conference taking place yesterday and today in Los Angeles, is that (multi)cultural relevant insights need to lead Corporate America’s marketing strategies.  “Our creative begins with a culturally relevant insight”, noted presenter Marlena Peleo-Lazar, Chief Creative Officer of McDonald’s Corporation. Peleo-Lazar highlighted the importance of integrating the main four elements of a marketing plan: Insights, Plan, Creative and Media.

Association of National Advertisers“You can not think about growing the US $2 billion Huggies business without leading with ethnic insights first,” said Lizette Williams, Senior Brand Manager, Kimberley-Clark Corporation. Williams, an AfroLatina, claimed that she has found success in implementing a total market strategy with strong multicultural elements by having CMO level support and elevating the conversation. Elevating the conversation means to transition from a silo-marketing situation in which marketing dollars are fought for, to discussing an overall total market company strategy. Williams added that a strong collaboration between multicultural and general market agencies is a strong prerequisite for a succesful total market strategy.

Jori Hartwig, CMO, Amway North America, noted that 54% of Amway U.S. based members are Hispanics. She stressed that direct sales, which Amway relies on, are not based on a door to door model anymore but a virtual communication network. Hartwig expects that more than half of Amway’s growth over the next decade will come from the Multicultural space.

The former Multicultural team is now the Culture and Music team.

 

Pepsi calls for a cross cultural mindset

Carlos Saavedra, director of Multicultural Marketing at Pepsi, gave a presentation about Pepsico’s Cross Cultural Marketing journey.
“By 2042 there will be a majority of minorities (Hispanics, African-Americans, Asians etc.) in the U.S. Minorities now account for USv$3.2 trillion dollars in spending power,” Saavedra noted. That is why  “brands must rethink the way they connect with consumers. Traditional multicultural marketing is not sustainable in the long-term. Ethnic culture is a part of how consumers identify themselves. A more dynamic cross cultural mindset is called for. It is called Cultural Fluency.”

Cultural Fluency means to market at intersection of interests (e.g. Fashion, Sports etc), rather than to one group in particular. “It is about being inclusive about the entire texture of multicultural consumers.” Pepsi transitioned from having a multicultural team to have multicultural marketing objectives be included in each brand’s goals. “The former Multicultural team  is now the Culture and Music team,” Saavedra said. “Brand managers are accountable to connect with the multicultural consumer. They need to know the multicultural consumer as well as general market consumers.”

Saavedra claimed that  Hispanic focused executions are not necessarily wrong.  But he said that by taking a cross cultural approach , Pepsi discovered that the NFL is attractive to Hispanics. Before, by having an only Hispanic approach, Hispanic campaigns only revolved around soccer,
Critical to the success of Pepsi’s Cultural Fluency project are the “Need to invest to build cross cultural insights and execution infrastructure as well as razor-sharp regional execution.”

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Hispanic market and/or targeting Hispanic consumers right now.

  • Cricket Communications
    Cricket Communications, Inc. announced a new advertising campaign that challenges wireless giants Verizon and AT&T. The campaign entitled ‘Half is More’, urges consumers to ask themselves why they are spending more for the same thing and is aimed at those who are looking for a better deal on wireless but not willing to compromise on great devices and service. The launch of the Half is More campaign demonstrates that Cricket is out to prove that most wireless customers are simply overpaying. Cricket just announced the addition of the Samsung GS4 to its line-up of popular smartphones. The ‘Half Is More’ campaign is rolling out across digital, print, retail, out-of-home and social media, with television advertising beginning June 3, 2013. Each campaign element will bring to life the affordability message throughout the summer. Online videos, TV, radio & cinema demonstrate the “moment of truth” when real people in everyday scenarios realize that Half is More.  Along with out-of-home, the retail experience – both online and in-store – will further drive home the comparison to AT&T and Verizon, and highlight the breadth of Cricket’s devices and other products and services customers want and need. Social media engagement via Facebook and Twitter (#WhatsYourMore) will spark online conversation; and local market activations in Cricket markets across the country will connect consumers directly with the campaign.
  • Mc Donald’s
    McDonald’s USA launched an online sweepstakes engaging soccer-loving Hispanics with the brand and have them compete for a Grand Prize: Three VIP trips for 2 people to the soccer tournament in Brazil next year. The sweepstakes, which launched last week  consists of a bilingual website, which is supported by social media avenues, including a Twitter sweepstakes/ In addition to the sweepstakes, McDonald’s will be airing a soccer-themed commercial (below) developed by Alma DDB, which is airing in English and Spanish nationwide. (Read more at Hispanic led Hispanic-Led Effort Becomes Systemwide Activation for McDonald’s)
  • Walmart
    Walmart announced that Dan Bartlett, 41, will become the company’s new executive vice president of Corporate Affairs in late June.  Bartlett was most recently president and CEO of the U. S. arm of Hill+Knowlton Strategies, a global business advisory firm serving corporations, non-profits and associations in 52 countries. Bartlett will report to Mike Duke, Walmart’s president and CEO, and will serve as a member of the company’s executive council.  His responsibilities will include oversight of external communications, government relations and sustainability, as well as the Walmart Foundation, which contributed more than $1 billion in cash and in-kind donations last year.
  • Brendpak
    Looking to better serve a growing Latin customer base, BendPak-Ranger recently launched a Spanish language website. BendPak’s Spanish website – bendpak.com.mx – is a direct adaptation of the company’s English-language site, BendPak said. To produce the site and keep it updated regularly, BendPak said it has hired a “dedicated Spanish-language marketing staff to oversee content creation and adaptation.” “Whether a prospective customer is building a new shop or updating their current workplace with new equipment, we know that the Internet is often the first resource he or she will turn to for guidance,” said Jeff Kritzer, senior vice president of sales and marketing. “Our goal with the new Spanish website is to provide efficient, native language guidance and easy-to-find information for the most common needs of our Spanish-speaking site visitors.” The expanding Hispanic market in the United States and further expanding Latin markets are important business segments for BendPak-Ranger.
  • Mission Foods
    Mission Foods and Wounded Warrior Project (WWP) are teaming up to encourage family mealtime as a way to re-connect, strengthen bonds and facilitate the healing process for those wounded veterans re-entering civilian life. The partnership includes a $350,000 donation from Mission Foods to WWP. For every bag of Mission Tortilla Chips purchased from May 6, 2013 through March 31, 2014, 10 cents will go toward the WWP donation. This donation will help support WWP programs and services, specifically structured to engage warriors, nurture their minds and bodies, and encourage their economic empowerment. “At Mission Foods, we believe family mealtime is fundamental to building relationships and creating strong communities. By partnering with WWP, we are able to continue this mission by honoring our heroes and their families,” said Courtney Bohrer, senior brand manager at Mission.
  • Master Your Card
    Master Your Card, a public education program sponsored by MasterCard, has introduced Master Your Card: Oportunidad, a coalition that aims to help the Latino community understand the full value of electronic payment technology to promote upward mobility and further financial inclusion for families and small businesses in the United States. The Master Your Card: Oportunidad Coalition advisory board will provide learning opportunities for Latino communities on how the use of electronic payment cards, credit, debit and prepaid, can help them prosper through increased convenience, transparency, affordability and consumer control, according to a Master Your Card press release.
  • The Army
    The Army and its media agency Universal McCann are trying to reach potential soldiers in 16 large markets such as Chicago, New York and Washington through a series of reality TV show-type ads. A new set of 30-second spots for the campaign, “Starting Strong,” airs Sunday mornings on Fox stations beginning June 2 until August 4 and will be available after that at the Army’s YouTube channel.
  • Amazon
    Amazon has selected Interpublic Group of Cos’ Initiative following a global media agency review that began earlier this year. WPP’s  Mindshare handles the e-tail giant’s offline media work and sibling agency MEC supports digital media. Digital media was not part of the review, according to people familiar with the matter.

GET ALL THE LEADS YOU NEED WITH PORTADA’S INTERACTIVE DIRECTORY OF CORPORATE MARKETERS AND MEDIA BUYERS! For detailed contact information on Hispanic Corporate Marketers at these companies and the decision makers at their Advertising Agencies, get access to Portada’s Interactive Directory of Corporate Marketers and Agencies targeting Hispanics of more than 3,000 Leading Agency and Marketing/Advertising Directors who are targeting Hispanics. (Downloadable into an Excel Spreadsheet for seamless integration into your own database!). If you are a Subscriber to the Directory login and access the Directory.