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Report
The Cross-Cultural Report
Jeffrey Bowman
Cross-Cultural Practice Lead
Ogilvy Cross-Cultural Practice
Contents
Introduction 2
Contributors 4
References 36
Introduction
If youve paid even the slightest attention to popular culture in the last couple of years,
youre well aware of the television phenomenon Mad Men, a show about a fictional
advertising agency set 50 years in the past. The story, of course, fills in the timeline of
America throughout the 1960s via one set of highly creative (if also exceedingly hedonistic)
ad men and the campaigns they create. Theres a rich irony to this. At precisely the time
when America is besotted with its past, the future is threatening to run away from us.
Over the last decade, both in the United States and globally, the advertising industry
and marketplace have radically changed. Digital is the norm, social media is changing
the way we reach and have conversations with consumers, and agencies are turning
toward the emerging marketsBrazil, Russia, India, Chinamany believe will be the
engines of global growth for years to come.
At Ogilvy & Mather, we too foresee a bright future for those fast-growing economies.
But were equally excited about business right here at home. Ogilvy & Mather sees
a tremendous domestic opportunityone that doesnt depend on uncontrollable macro-
economic factors or a zero-sum game among advertising combatants. Instead, we see
a whole host of demographic changes in the United States that add up to a fundamental
repositioning of what we call the general marketand that present compelling new
possibilities for growth. We call this new mass market The New General Market (TNGM).
Weve arrived at this important moment motivated by two factors. The first, as we explain
below, is that outside forces are fundamentally changing the advertising world. The way
Don Draper and his Mad Men cohorts did business is surprisingly similar, in some respects,
to how present-day advertising is conductedand that model is dangerously antiquated.
The good news is that were ideally positioned to take advantage of a tidal wave of change:
Ogilvy & Mather has emerged from the global economic downturn in robust health.
That leads us to the second reason for overhauling our model: We continually rethink
the way we do things because we are Ogilvy & Mather. In the year of our founders 101st
birthday, we believe its important to reengage with some of David Ogilvys most enduring
ideas. Specifically, we are driven by what David called Divine Discontent. There is no
good enough, this idea says. There is always a chance to improve.
We have happened upon a major shift in the way we perceive and market to our clients
cherished customers. In the following pages we explain this shift and the manner in
which we need to respond to it. The stakes are high. Its no exaggeration to say that
this is a change-or-die moment for many players in our industry. We believe that with
this blueprint we are poised to prosper rather than perish. And we believe that David,
who had great respect for the consumer and a deeply held belief in constant adaptation,
would have approved.
3
Contributors
Ashley Mackel
Caroline Washington
CarolLyn Colon
Christine Villanueva
Deborah Balme
Dolly Turner and Felicia Walker Benson, NorthStar Group: Jones Magazine
Donna Pedro
Enrique Urquiola
Erin Goldson
Jeremy Katz
John Seifert
Rebecca Clayton
Sacha Xavier
Willow Gross
5
The changes roiling
the industry
The agency model is old
If you watch Mad Men, you may be struck by one remarkable truth: Despite the outdated
social moresthe rampant daytime drinking and womanizing, the blue haze of cigarette
smoke drifting through the officethe fictional characters of Sterling Cooper Draper Pryce
still divide up the marketplace the same way we do. A bit of history: The first ad agency
catering to the general market opened in 1843. A pioneering ethnic agency came onto the
scene in 1956, creating the segmented structure to this day. The advertising industry still
divides itself into general market agencies (GMAs) and multicultural agencies (MCAs),
and our clients generally adhere to this model.
Demographic1980 Note: The population was divided into five ethnic segments
White, Black, American Indian/Aleut Eskimo, Asian
White83.1% American or Pacific Islander, and other racesuntil
Black11.7% March 1989. Beginning with the 2000 census, Hispanic
Asian American 1.5% status was added to census forms, in recognition of
the fact that Hispanics may be of any race. Thus, while
Hispanic6.4% it is now possible to ascertain exact percentages of
non-Hispanic minorities, pre-2000 figures do not allow
2010 this distinction.
White68.0%
Black12.6%
Asian American 4.8%
Hispanic13.9%
Point Change
White-15.1
Black+0.9
Asian American +3.3
Hispanic+7.4
Parts of our model have, in fact, morphed to reflect Americas dramatically shifting
demographics. Our business offerings now reflect the importance of Hispanics,
Blacks, and Asian Americans and the Lesbian, Gay, Bisexual and Transgender (LGBT)
community. However, as these segments have ballooned, the desire among clients for
MCA services has grown as well, and agencies more specifically focused on those markets
have often been better positioned to meet those needs.
But let there be no mistake: As the populations and spending power of minority consumers
continue to grow, the model that divides business between general market and MCAs is
7
increasingly obsolete. If you listen in on the whispered conversations in client meeting
rooms and agency huddles, youll hear people questioning the viability of this 60-year-
old structure.
And for good reason. In a recent survey, we asked chief marketing officers, executive
vice presidents and directors of marketing a few questions about their level of satisfaction
with both the GMAs and MCAs with which they have worked. We found they were
satisfied with neitherprimarily because of the agencies inability to deliver integrated
communications across the two platforms.
Question: On a scale of 1 to 5, with 5 being the highest, how would you rate your general
market advertising and/or marketing agency?
1 Rating: 7.1% The most common comments were Did not bring real breakthrough
2 Rating: 21.4% ideas, Too tied to the process and politics and Did not drive things
across channels to create a holistic, surround approach or really
3 Rating: 42.9% activate the idea. Another was Limited creative thinking;
4 Rating: 28.6% watered-down messaging to appeal to mass audiences.
5 Rating: 0.0%
1 Rating: 50.0% Most respondents did not have an MCA of record and instead used one
2 Rating: 14.3% on a project-by-project basis. One comment was Only focused on
Hispanic market with same/similar messaging as general market.
3 Rating: 28.6% Not truly differentiated to meet the true needs of this target.
4 Rating: 0.0%
5 Rating: 7.1%
Moreover, clients are frustrated that they have to endure multiple and seemingly redundant
meetings and billings in order to solve a single problem: how to build the brand. And that
effort isnt always translating into the proper execution. Clients have responded to the
tremendous growth of the Hispanic market by shifting more of their budgets to focus
on that audience; despite this trend, however, measured media spend for that population
actually decreased from 2008 to 2009 by nearly 5%.
8
The Black community saw even more of a disparity: Media spend for that market is down
by more than 7%.
This has left brands with a dearth of culturally relevant communications for various
communities, and the current agency model is not flexible enough to address the problem.
In theory, GMAs speak to nearly 70% of the marketplace, and MCAs cover the remaining
30%. In practice, overall media spend for the United States is tilted steeply toward
the general market: The media buy for that segment chews up 93% of a $117B industry.
So, not only is the system clunky and frustrating for clients, its also increasingly ill-suited
to the task at hand. In a multihued nation, the advertising business looks alarmingly
monochrome. As presently structured, everybody loses. Clients reach only part of their
audience. Advertisers and marketers fall short of their benchmarks. The good news is that
all of this is avoidable, if we begin targeting The New General Market.
9
is forcing change in the advertising world, whether were ready for it or not. We are in the
midst of one of the largest shifts in population and purchasing behavior in our nations
history. Its time to adapt.
Hispanic 50.0
White 12%
Black 37.6 Hispanic
Black
Asian American 13.6 Asian American 4%
Multiracial 65%
Other 2%
Multiracial 4.8
1%
Other 2.8
It is important to understand not only the demographic changes but also where those
changes have taken place. Below is a look at how the demographics have changed in the
United States since the 1980 census was completed.
19% 14%
8%
West
8%
52% South 42%
Midwest
Northeast
21% 36%
10
Starting with that census, Hispanics began to post record population gains. Growth
in the Black community has been less dramatic, but that market has shifted in terms
of geographic density.
12% 9%
17%
West
23% South
44% 56%
Midwest
Northeast
18%
21%
When we analyzed the numbers state by state to compare the changes, the facts were
arresting. More than 50% of the people now living in California and Texas are firmly in
The New General Market. These are our two largest states in terms of population, and
their impact on elections, retail and education, as well as on media and advertising spend,
should not be underestimated.
We were also struck by The New General Markets prevalence in Americas top 10 most
populous cities. In each of the 10, the combined populations of Hispanics, Blacks and
Asian Americans account for at least 50% of the citys total population. The New General
Market accounts for more than 60% of the population in five of these cities, and in
threeHouston, San Antonio and Dallasit comprises 70% or more of the residents.
11
2010 Census, Top US Cities
Rank City State % Hispanic % Black % Asian American % TNGM
1 New York NY 29 23 13 64
2 Los Angeles CA 49 9 11 69
3 Chicago IL 29 32 5 67
4 Houston TX 44 23 6 73
5 Philadelphia PA 12 42 6 61
6 Phoenix AZ 41 6 3 50
7 San Antonio TX 63 6 2 72
8 San Diego CA 29 6 16 51
9 Dallas TX 42 25 3 70
10 San Jose CA 33 3 32 68
These shifts should fundamentally alter our approach to the marketplace. As an agency,
we can no longer afford to be put into a traditional general market box if we want to
be able to deliver relevant and effective communications and meet all of our clients
needs. In order to serve The New General Market in the United States, the marketing
communications industry must change its service model, starting with the hiring of
a workforce that mirrors The New General Market.
1,400
1,200
1,000
Hispanic
800 Black
Asian American
600 Multiracial
400
200
12
Looking closer, we are faced with an even more surprising realization. On a per-household
basis, The New General Market outspent whats considered to be the general market today
in most categories. While this makes sense once you think about itall of the so-called
minorities combined now add up to a majoritythe sheer size of the market is sobering.
Clients are grasping the significance of this, particularly in the retail/shopper space, where
customer experience is a fast-growing area of interest. Unlike with traditional marketing
communications via television, radio and print, advertisers can improvise a retail display-
and-search model and test its relevance in real time. Todays retailers see firsthand the
effects of shopper marketing and can gauge whether their stores and customer experiences
are speaking to the audiences they serve.
Through the use of heat maps, some retailers and marketers are taking a precise approach
to The New General Market. The maps below illustrate where the most dynamic changes
are occurring across the United States.
13
Asian American Population Density 2010
To amplify this data, OgilvyCULTURE met with the industrys top media and content
partners and formed an alliance aimed at examining best practices and emerging offerings
for The New General Market. One factor stood out above all elsethe impact of these
new demographics on technology, particularly on mobile and social media.
14
Advertisers and clients rightly look to digital as a way to create targeted and effective
communication. As the technology space formed in the 1990s, a digital divide emerged
between the general market and several minority groups. People in the general market
tended to have better connections to the Internet and greater access to email, and
therefore spent significantly more time online.
This disparity persists in traditional Internet use, but has been erased in the realms of mobile
and social media. The New General Market not only has caught up, but is in fact now the
driver of change in technologyone of the forces now shaping our culture. A study con-
ducted by eMarketer found that nearly half of Black and Hispanic consumers reported
having used a mobile device in 2009, versus 28% of Whites. A study by Pew Research also
shows that high mobile usage among minorities is not limited to online content. Black and
Hispanic users were more likely than Whites to participate in every mobile activity, from
sending and receiving text messages to taking pictures to playing games and accessing email.
Mobile and smartphones are now in the vanguard of the new advertising frontier.
Advertisers and marketers are looking to develop relevant content for The New General
Market, paying special attention to foreign-language sports, entertainment and lifestyle
content for Hispanic users.
15
But television remains the king of all media, whether its in the form of traditional digital
black box viewing or online via Hulu, YouTube or one of the other streaming services
now available. One audience in particular leads all ethnic groups when it comes to
television viewing: According to Nielsen, Blacks between the ages of 18 and 49 clock in
at a whopping 7 hours and 12 minutes a day. Thats more than 2 hours per day above the
national rate of 5 hours and 11 minutes and nearly 4 hours more than Asian Americans
watch (3 hours and 14 minutes). In other words, The New General Market can be reached
online, but not through a traditional PC. The best way to connect with them is via the
most traditional channel, the television.
16
Ogilvy & Mathers new
approach: CrossCultural
rather than General Market
or Multicultural
The segment shifts we saw in conjunction with our aging agency model led us to reevaluate
whether Ogilvy & Mather is increasingly trying to fit a square peg into a round hole.
And this led us to consider how to position the agency for the next 50 years. We realized
the question of GMA versus MCA is moot. The answer today is neither.
If we examine why we believe the agency model is broken, we can see that its partly
because of the way agencies and clients began to cheat at gathering insights.
A bit more background: Prior to the 1980 census, the industry was comprised of GMAs
and Black agenciesboth of which were knowledgeable about their segments and thus
successful. Once the 1980 census correctly predicted the ascendancy of the Hispanic
population, the marketing budgets began to follow.
CONSUMER CONSUMER
INSIGHT INSIGHT
GENERAL
MARKET HISPANICS
BLACKS
CONSUMER
INSIGHT
This fully took hold after the 1990 census. The 1990s, of course, saw the introduction of
digital, which cut even deeper into most US brands already shrinking budgets for the
Black segment. By the end of the decade, the line item for Black marketing had fully
vanished into the general market box. This begs the question as to whether brands and
agencies are properly structured and planning correctly for The New General Market.
CONSUMER CONSUMER
INSIGHT INSIGHT
GENERAL
MARKET HISPANICS
18
When it comes to budgeting, most brands today consider only two audiences: General
Market and Hispanics. We believe this approach fails to deliver insights that are culturally
relevant across all segments (White, Black, Hispanic, Asian American and LGBT).
The new approach that Ogilvy & Mather is pursuing is cross-cultural. This new way of
doing business enables us to mine both the general and various multicultural markets for
insights, wants and needs.
Siloed Integrated
measurement measurement
CONSUMER CONSUMER
INSIGHT INSIGHT
GENERAL
MARKET HISPANICS
BLACKS
LGBTs
ASIAN
CONSUMER
INSIGHT AMERICANS
CONSUMER
INSIGHT
CONSUMER
INSIGHT
19
By contrast, our new cross-cultural marketing positioning enables an examination of the
old general market and newly relevant Hispanic, Black, Asian American and LGBT
audiences. This model will serve as a bridge between all marketplaces, leading not only to
a more streamlined business but also to better targeting and product/service positioning.
COMMUNICATIONS PLATFORM
ASIAN GENERAL
BLACKS HISPANICS LGBTs
AMERICANS MARKET
CROSS-CULTURAL STRATEGY
20
How does the
Cross-Cultural model
increase the value of
my brand?
Taking a page out of David A. Aakers book published in 1991, Managing Brand Equity,
weve developed strategic territories for how brands increase their brand value with
The New General Market (See page 25). We asked ourselves two questions: What defines
brand equity? How can brands increase their value?
The question we pose to clients and brands today is: If the demographic landscape has
changed or the customers who have traditionally purchased products have changed or are
changing as we have demonstrated in previous chapters, what is the new way of building
brand equity and increasing a brands value?
Over the last year weve been refining what we believe to be the future of building a brand
and a consumer relationship, and measuring the relevancy of The New General Market.
We analyzed the ways in which more than 100 brands were marketed to Hispanic, Black,
Asian American and LGBT audiences separately. We eventually identified certain patterns
that we refined into five key strategies:
Cultural Community
Cultural Currency
Cultural Authenticity
Cultural Confluence
The Cultural Loop
While we sought to avoid oversimplifying more than 40 years of multicultural and general
market executions, we needed a structured way of looking at how brands increase relevancy
and equity measures over time. These five elements create that framework. Faced with
todays rapidly morphing landscape, in which brands are learning to engage socially and
through new and emerging channels, were still working out how to deploy these tactics as
part of a broad-based cross-cultural strategy funneled through various channels and touch
points along the customer journey.
22
The Cross-Cultural Strategic Territory Framework for Building Brand Relevancy and Equity
23
cultural community
Participating in long-standing community-based cultural events and programs
Within many ethnic segments, people often strongly identify with community-based
events that celebrate a shared identity and carry cultural value down from generation
to generation. Take, for example, Calle Ocho, a street party staged by Miamis sizable
Cuban American population; or the ESSENCE Music Festival, held annually in
New Orleans and widely attended by Blacks.
These for the community, by the community events have traditionally served to
strengthen the fabric of cultural communities, bringing extended families and friends
together around a common celebration to reinforce identity. For some brands, this is
an opportunity to introduce the brand to the community. For others, its a means of
reinforcing their long-standing support. Either way, the barriers to entry are usually low,
opening the door to the longer process of embedding the brand in community culture.
Risk/reward:
Depending on a brands levels of engagementfrom, say, a sponsorship on the one hand,
to dedication of human resources and other forms of more tangible participation on the
otherit runs an expected risk of low initial payoff. Buying sponsorship rights will not
likely translate into deep affinity for the brand, at least in the short term.
When brands invest time and resources, the benefits are often rewarding. The Cultural
Community approach requires a long-term commitment; its the equivalent of the
residents of a tight-knit ethnic segment inviting the brands into their homes and offering
them the chance to prove they want a relationship.
For those brands that invest in the Cultural Community approach over time, the rewards
can be substantial. Demonstrating a commitment to a communitys shared culture signals
that the brand cares and is here to stay. The communitys younger members grow up
with the brand and see it as an allya friendly entity thats investing in them personally.
Long-term brand loyalty often emerges as older generations endorse the products and
services they introduce to their progeny.
24
Calle Ocho
Calle Ocho started in 1978 as a way
to showcase Cuban culture in Miami.
Today over one million people come from
all over the world to attend this street
party, which is covered by press and major
networks and sponsored by many top
brands. Calle Ocho is renowned for its
music, with top Hispanic acts performing
during the weekend festival.
25
cultural currency
A partnership with talent or a prominent figure within the community
Sometimes, affinity by association helps. Prominent figures act not only as cultural icons,
but also as cultural gatekeepers. Brands that build associations/partnerships with talent
whos built up cultural cachet and influence with a segment are borrowing cultural equity
to better reach and connect with that segment of consumers.
The most frequently used model is that of brands that engage talent (entertainment)
that identifies with a particular segment and has special authority to speak on its behalf.
Segments look to such brands for signals on what to trust (and brands to avoid)
a quasilitmus test of trust.
Risk/reward:
As with Cultural Community, the Cultural Currency approach can serve as a needed
introduction between a brand and a communitya point of entry to establish an audience.
Instead of a community-based event, the channel for a relationship is through brand asso-
ciation via talent. Additionally, by borrowing cultural equity, brands may reap a particular
seal of approvalthe equivalent of a reference from a well-trusted source.
But quick entry should not be conflated with low risk. Partnering through brand
association always carries inherit risk. Through association, the brands equity relies,
at least partially, on the equity of the talent. Should the talent lose his or her standing
in the community, so too might the brand.
Croc Vodka
After Diageo partnered with Sean
Diddy Combs, the brand grew 552%
from 2007 to 2010, replacing Belvedere
as the second-ranked vodka in the
ultra-premium category.
26
cultural authenticity
Connecting with The New General Market based on insights driven inward (multicultural) to outward
(general market), or vice versa
Most often, brands are practiced at connecting to a general market audienceone
with which theyre familiarbut face the challenge of building relevance with a specific
multicultural audience. As opposed to making an introduction (say, through an event
sponsorship), the Cultural Authenticity approach is a process of getting to know you.
Brands develop authentic relationships through the process of uncovering and utilizing
relevant cultural insights.
The best examples come from brands that use an insight most relevant to a particular
community. Distilling cultural insights requires heavy lifting by research, influencing
everything from product/service development to communications. Ultimately, the
approach calls for a high degree of insight and a dedication to reflecting that insight
in the marketplace.
Risk/reward:
Using Cultural Authenticity requires deep levels of understanding and commitment.
The best examples come from brands that, in their own way, create an organic bond with
the community. This requires a heavy investment in research or innovation during the
product development cycle, with the particular audience in mind. Sometimes brands
simply get it right from the beginning due to a deep cultural understanding of the total
market. But in general, Cultural Authenticity is not an easy tactic to execute because it
requires a powerful cultural insight rolled out in a holistic manner. The brands, in effect,
become natural extensions of the community. Brands that are successful at executing this
strategy often enjoy a long and profitable tenure with high barriers to category entry.
27
cultural confluence
Turning a segments cultural values into attributes relevant to whats considered the general market
When we reference Cultural Confluence, people sometimes think were suggesting
meshing or watering down the brand, thereby costing the brand its authenticity.
This is far from the truth. This cross-cultural approach is more accurately defined as
taking a holistic approach to the total marketplace.
Usually brands that are successful at this tactic have a high degree of initial trial and usage
measures and get a high degree of repeat usage.
Risk/reward:
This tactic helps brands increase loyalty among a larger base of consumers and establish
higher barriers to entry for competitors. We believe that as we continue to explore the
impact of The New General Market, we will begin to see more Cultural Confluence.
Red Rooster
After a celebrated run as executive
chef at Aquavit Restaurant, the Ethiopia-
born Marcus Samuelsson has built
Red Rooster, critically heralded and
reflective of Harlems many cultures.
The restaurant was named after the
legendary Harlem speakeasy that
was located at 138th Street and 7th
Avenue, where neighborhood folk, jazz
greats, authors, politicians and some
of the most noteworthy figures of the
20th centurysuch as Adam Clayton
Powell Jr., Nat King Cole and James
Baldwinwould converge to enjoy drinks
and music in an inviting atmosphere.
Since opening, it has attracted a world of
patrons. Red Rooster has hosted everyone
from the president of the United States
to Halle Berry. Red Rooster has embraced
todays Harlem with that same spirit of
inclusiveness and community from its
past and present.
28
the cultural loop
Linking a brand with a social cause or purpose
Purpose-driven brandsthose brands that put their capabilities to use in service of
a pressing social problemare sometimes neglected within the context of multicultural
marketing. And yet research definitively points toward the conclusion that multi-
cultural segments respond to and support those brands that address relevant social
issuesoften more so than the general market.
Social issues is a broad umbrella, from sustainability to health to education, and much
in between. The Cultural Loop poses the question: What issues are most important
to the community, and how can brands go beyond business as usual to address them?
This approach, broadly speaking, is about responding to what matters by playing a con-
structive role in cultural communities.
Risk/reward:
Research suggests that affinity and loyalty increase for those brands that effectively go
beyond business as usual. For cultural communities in particular, The Cultural Loop can
work toward building trust, demonstrating the brands commitment to what matters
and conviction to do whats best for the audience it serves.
However, good intentions are not enough. Social issues must be relevant both to the
community and to a brands own capabilities. Putting resources behind a certain social
issue that the brand has little license to address will likely hit a note of dissonance and
risk inauthenticity.
29
Releasing the value of
a Cross-Cultural brand
The term cross-cultural marketing dates back to the 1930s, but circumstances did not
converge in a way that allowed the advertising industry to fully embrace the concept
until now. Because of global and domestic demographic shifts, a cross-cultural approach
is suddenly essential in terms of analyzing the changing consumer and gaining deeper
insights into The New General Market. With current technology allowing us to better
target within this evolving audience, we will be poised to meet the demand for effective
advertising and produce a greater ROI.
Below is a case study that demonstrates how we solved a clients total market communica-
tions and business opportunity.
The challenges presented to OgilvyCULTURE were as follows: First, increase the number
of visits by 2015. Second, demonstrate what OgilvyCULTURE means by a total market
approachand explain the benefits of such a strategy. And third, inform the regional and
local markets.
An investigation into the retailers current approach revealed some interesting facts.
The first insight was that the retailer, seeking to find new customers, had only gone after
Hispanicsbut that segment comprised less than half (48%) of the total population of
potential new customers. Another revelation was that something was being lost in transla-
tion: The retailers positioning did not address each of the segments in a meaningful
way. Further, we discovered that there was no consistent strategy that linked the national
market to regional and local markets.
The outcome? The retailer was able to understand the total market opportunity and the
need to prioritize all segments. Rather than create a one-size-fits-all multicultural strategy
that was in fact geared only toward Hispanics, it executed a communications strategy that
included Blacks, Asian Americans and the LGBT community in addition to the general
market and Hispanics. The retailer also launched an integrated experience strategy that was
consistent across the national and regional/local markets. Finally, we put in place a measure-
ment and effectiveness plan to track results.
31
The Ogilvy & Mather Cross-Cultural Matrix
Is there an enormous untapped value in this approach? We are just beginning to tap
the surface. Usually the last question we get from clients after discussing the strategic
territories is Where is my brand with regard to the relevancy or equity measures within
The New General Market?
Our view is we must understand where the brand is with regard to cross-cultural
equity measures. Over the past year, weve measured relevancy through qualitative and
quantitative tools, stakeholder interviews and client sources. After assessing the brand,
we plot where it falls within the Ogilvy & Mather Cross-Cultural Matrix (see below).
Relevancy
Growing Strong
Cross-Cultural Cross-Cultural
Equity Equity
Category Index
Little Declining
Cross-Cultural Cross-Cultural
Equity Equity
(Small, Weak
(Large, Weak Brands)
or New Brands)
By plotting the brands current position within the Cross-Cultural Matrix, we are
able to understand how the brand is positioned within The New General Market and
begin to formulate a hypothesis as to how to increase the brands value with The New
General Market.
We develop a strategy to build the brands relevancy and equity measures with The
New General Market, based on the brands position within the Cross-Cultural Matrix.
32
The Ogilvy & Mather Cross-Cultural Matrix
Relevancy
Cultural Cultural
Currency Confluence
Category Index
The
Cultural
Loop
Cultural Cultural
Community Authenticity
As presented earlier in this report, these are our proprietary strategic territories. Using
this methodology and approach helps us understand what a brand needs to work on
to strengthen its positioning and how to increase the value of the brand over time with
The New General Market. The insights we gain allow us to evaluate various tactics based
on the brands cross-cultural assessment.
Whats next?
In the fall of 2012, through a joint WPP partnership using BrandZ, Ogilvy & Mather,
Millward Brown and Firefly Millward Brown will release the marketing and advertising
industrys first Cross-Cultural Index. It is a proprietary approach weve developed to
measure how cross-cultural a brand is based on an assessment. This approach will allow
us to reassess a brands market value and other brand metrics for the Total Market
within BrandZ.
The beta version of the Cross-Cultural Index will rank and score a brands equity within
The New General Market. It is our belief that once this tool is released and refined, we truly
will have a Total Market view of a brands value in the marketplace. Companies will
have a better understanding of how to elevate their brands value using our cross-cultural
strategies and how to invest their assets in The New General Market. In the end we will
have a way to measure the Total Market for effective and inspiring communications for all.
The marketplace continues to evolve. With this report, we have established a framework
for addressing The New General Market needs for current and future brands that engage
with our services in this fast-changing world. We believe there is a need to change our
current methodology in order to produce deeper consumer insights, better targeting and
more effective communications. If you have any questions or comments, please do not
hesitate to contact Jeffrey Bowman at jeffrey.bowman@ogilvy.com.
33
About the author
Jeffrey Bowman
Cross-Cultural Practice Lead
Jeffrey leads the North American Cross-Cultural Practice at Ogilvy & Mather, one of the
largest advertising and communications agencies in the world. Ogilvy & Mathers cross-
cultural approach is viewed as an industry breakthrough because of the Inside-Outside
strategy, The New General Market approach, partnerships and client service model.
Since its launch in 2011, the Cross-Cultural Practice has nabbed eight global brands looking
to target The New General Market. Jeffrey has partnered with John Seifert, Chairman and
CEO of Ogilvy & Mather North America, and Donna Pedro, Chief Diversity Officer of
Ogilvy & Mather North America, to create a new communications model that serves as a
bridge between the general market and multicultural marketing communications models:
a Total Market communications model. This model has been celebrated in The New York
Times, Advertising Age, The Economist and other industry publications as well as at conferences.
Ogilvy & Mathers depth and diversity of talent allowed Jeffrey to bring his experience
to a space thirsty for innovation. Jeffrey has more than 15 years of experience in marketing
strategy, brand management, experience planning, digital strategy, channel strategy and
marketing effectiveness with global brands within the beverage, consumer packaged goods,
retail and technology industries. Still in its infancy, OgilvyCULTURE is recognized as
a very promising practice for the agency.
When Jeffrey is not working, he enjoys spending time with his wife and two daughters in
New York City. Jeffrey holds an MBA in Marketing from Clark Atlanta University and
a BS in Marketing from South Carolina State University.
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References
Chart/Visual Page Source
1980 vs. 2010 Population Growth Rates 8 1990 via World Databank, 2010 via CIA
World Factbook
Race and Ethnicity Chart 11 Ad Age, 2010 America: What the 2010
Census Means for Marketing and
Advertising, by Peter Francese
2010 Census Tract Heat Map, 14 Data from US Census Bureau, Map via
% Hispanic SocialExplorer
2010 Census Tract Heat Map, 14 Data from US Census Bureau, Map via
% Non-Hispanic, Black SocialExplorer
2010 Census Tract Heat Map, 15 Data from US Census Bureau, Map via
% Non-Hispanic, Asian American SocialExplorer
Top 10 DMAs and % TNGM in City 15 The Nielsen Company Local Television
Market Estimates; US Census Bureau
37
Ogilvy & Mather, 2012
38