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Friday, November 14, 2003

Battle of the Sexes

OK, peep this. Dodge is set to launch a series of racy ads for Durango with the line: "Yeah, Size Does Matter" to be selectivey aired on late-night TV and posted in sport joints across the country. From today's Wall Street Journal:

Ms. Roehm isn't worried that the racy poster ad will be a turnoff for women, although it has scored somewhat more negatively with women than with men in market testing. "There's nothing in here that indicates it's not a home-run advertisement," Ms. Roehm says.

But Dodge has another set of ads for the Durango, aimed at women. In a series of five ads from Omnicom Group's BBDO Detroit, Chrysler's lead agency, Dodge uses a suburban couple to emphasize that the vehicle has the comfort and convenience women want.

Notably, the racy ads were developed by Global Hue, a multicultural advertising agency. Hmm... can this be another example of "crossover creative"?

Posted by Thomas Tseng, 5:30 pm

 

Border Codes vs. Market Values

Now this is fascinating. I've been kinda, sorta following how new security measures required by the Patriot Act would impact U.S.-Mexico border issues. Not surprisingly, I suppose, the new precautionary procedures have been frequently used as justification to impede the tide of illegal immigration coming from Mexico. So what have been the results? Well, according to this Associated Press investigation, tighter border restrictions imposed by the federal government since 9/11 have wreaked chaos for trade and tourism alike. An additional $400 million federal infusion and thousands of new border patrol officers and customs agents later, results suggest they have hardly made a difference.

While the Border Patrol says the fewer apprehensions indicate slowing migration, the number of illegal migrants in the United States doesn't appear to be dropping.

Victor Clark, a Tijuana anthropologist who studies migration, said that if illegal migrants weren't getting in, there would be a severe labor shortage in farms along the U.S. West Coast, where Mexican migrants make up much of the labor force. There isn't.

In fact, some figures indicate the number of illegal immigrants may be rising. The money Mexicans send home from the United States, often used as an indicator of Mexican migration to the north, reached a record $12 billion this year, compared with $10 billion last year.

On a related note, the billions being pumped from Mexican immigrants back home is hardly chump change and mainstream financial institutions are taking notice. Since Wells Fargo announced they would accept identification cards issued by Mexican consulates back in November 2001, they have opened more than a quarter million new accounts. Many other banking institutions have followed suit, including, notably, Bank of America and Citibank---both of whom have acquired major stakes in Mexican banks to capture the lucrative cross-border remittances flow.

In fact, this past summer, the U.S. banking industry furiously lobbied the U.S. Treasury Department to allow them to continue accepting matricula consular cards as a valid form of ID---allowing otherwise undocumented Mexican immigrants the ability to open up bank accounts and operate legitimate financial transactions. All this, despite the heightened security atmosphere. From the Wall Street Journal (9/18/03):

Banking groups insist the consular ID, by creating a paper trail of financial transactions by Mexican workers, ultimately ensures more security, not less.

"You never know with politics, but the facts are clear: If the federal government wants us to know our customer, the only way to do that is the matricula card," said Steve Bartlett, president of the Financial Services Roundtable, a Washington-based organization that represents some of the U.S.'s largest financial groups.

U.S. financial institutions are plowing ahead, not by compromising national security, but simply out of recognition of legitimate market opportunity. By doing so, they are bridging access to mainstream financial services to a burgeoning new generation of consumers. We will continue to track how this gradually enhances their economic choices.

Posted by Thomas Tseng, 5:05 pm

 

Tuesday, November 10, 2003

Crossover Creative

Interesting article from last week's Miami Herald about the push from companies to make their ethnic advertising work for their general marketing campaigns. Relevant grafs:

From Volkswagen to Procter & Gamble to McDonald's, major advertisers are increasingly looking to use their ethnic advertising to reach the mainstream market as the lines among consumer groups are starting to blur, experts said Monday.
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Examples of crossover creative range from Procter & Gamble's airing a Spanish-language commercial on prime-time network television to Subway restaurants reworking a Hispanic ad for the general market. McDonald's expanded the use of a radio ad featuring a black comedian to the mainstream market.

Bonita Coleman-Stewart, director of Chrysler brand communications for DaimlerChrysler, said her company was reviewing all advertising to determine whether any spots can work for other consumer demographics.

"As a marketer, we're looking for good ideas," she said. "It does create a lot of angst for the agencies, but it drives them to creative excellence."

Angst indeed. It will be worthwhile to observe whether this drives a broader trend that creates increasing competition between ethnic and general advertising agencies.

Posted by Thomas Tseng, 3:54 pm

 

Monday, November 9, 2003

Clutterlines: Hispanic, Black, White, or What?

Among the most frequent questions I get after presenting at conferences and discussing the U.S. Hispanic consumer market are of the nature: "Why do you make a distinction between Hispanics and non-Hispanic whites?" "You mean Hispanics are not considered a race?" "How can Hispanics be considered an ethnicity but not a race?"

More often than not, I probably go into far too much detail trying to explicate the complex nature of Hispanic identity and culture--too much detail for marketers seeking a simple solution to their marketing strategies anyway. So, I'm happy to report that yesterday's front page story in the New York Times provides a more than adequate explanation for how America's largest ethnic group identify themselves--and their fluid notions of racial self-identification. Here's a sampling:

Like many Hispanic Americans, Ms. Rodriguez does not think of herself as black or white. "I acknowledge I have both black and white ancestry in me, but I choose to label myself in nonracial terms: Latina. Hispanic. Puerto Rican. Nuyorican," Ms. Rodriguez, 31, said. "I feel that being Latina implies mixed racial heritage, and I wish more people knew that. Why should I have to choose?
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Now members of the United States' largest minority group, the nation's 38.8 million Hispanics, nearly half of them immigrants, harbor notions of race that are as varied as their Spanish and that often clash with the more bipolar views of many other Americans.

White? Black? Try "moreno," "trigueno" or "indio," terms that indicate skin shades and ancestry and accommodate several hues.

The article delves into the imperfect nature of U.S. Census classifications in categorizing a group of people who, though they may share cultural and linguistic affinities, are otherwise not bound by the existing racial taxonomy.

This heterogeneity has stumped the Census Bureau. In its 2000 count, almost half the Hispanic respondents refused to identify themselves by any of the five standard racial categories on the census forms: white, black, Asian, American Indian or Alaska native and a category that includes natives of Hawaii and the Pacific Islands. The agency has since been surveying Hispanics to find a way to pinpoint them racially.

This account clearly demonstrates the conundrum challenging the Census Bureau. But I don't think it will ever clear up the imperfections of racial classifications anytime soon. By definition, the Hispanic population is one that is the most dynamic and continually evolving among all U.S. ethnic groups. For this reason, Hispanics will continue to redefine and jumble America's racial lexicon---which will have a shifting influence in how companies market to them as a consumer segment.

Lastly, the Times article goes even a little further by peering into what the next generation of young Hispanics might look like. Here, these sensibilities echo the "post-ethnic" themes explored in my article earlier this summer.

In Los Angeles, where Hispanics are the largest ethnic group, Ms. Arza-Goderich said she and her husband, who is also Cuban, have never discussed with their three sons "whether they are white, or moreno or what," she said.

"Race takes a back seat to what they listen to on their CD players, what movies they see," she said. "One is into Japanese anime. Another is immersed in rap. Basically it's the ghetto culture, but ghetto doesn't mean poor or deprived, but hip."

Her 16-year-old, Ray, has adopted a hip-hop persona and hangs out with Vietnamese, Indian, Chicano, white and black friends. Ms. Arza-Goderich said most of them had Asian girlfriends.

Read the whole article here (registration required, but it's free). How does this impact ethnic marketing, you ask? Stay tuned, more to come…

Posted by Thomas Tseng, 10:15 am

 

     
 

 

 
     
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