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AGENCY TEAM >>> THE MASTERMIND GROUPAGENCY TEAM >>> THE MASTERMIND GROUP

American Advertising Federation

April 21, 2010

The Evolution & Impact of the Urban Marketon Branding & Consumer Behavior

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AGENCY TEAM >>> THE MASTERMIND GROUP

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Agenda >>

Evolution of the Brand Creators

7 Ciphers Urban Consumer Segmentation Framework

Case Studies

Urban Truths in Advertising

AA Brand Connections


Any great urban renaissance begins with innovation…


A culture born out of sheer necessity…>>


Became a conduit for creativity & self-expression…>>


Building brands, redefining design & product utility…>>


While connecting cultures…>>


Changing the media landscape…>>


And realizing lifestyle aspirations along the way…>>

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7 Ciphers™ Segmentation Framework

“Cracking the Code on the Urban Market”


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What is Urban? Demographic profile >>

15% of the U.S. population, or 45.3 million trendsetting Americans have adopted the urban mindset

$300 billion buying power

Ethnically and culturally diverse

- Caucasian

- African American

- Hispanic

- Asian

Geographically diverse

- 49% Top 25 DMA’s

- 26% Rural

- 25% other MSA’s

Sources: Urban IQ and Horowitz Associates; The Mastermind Group


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What is urban? Psychographic profile >>

Current generation less defined by racial differences…identify based on shared mindset and lifestyle interests

Urban market is not monolithic and = to African-Americans

- African-American is a racial group…urban is an attitude, awareness and lifestyle

Given mainstream appeal of urban lifestyle and its influence on pop culture, “urban” has evolved to represent a broader psychographic (transcends race, age, gender and geography)


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7 Ciphers™ Urban Consumer Segmentation >>

What It Is

A psychographic instrument that…

Shifts the market paradigm beyond traditional race-based demographic approach

Captures nuances within urban sub-segments to maximize cultural resonance

Provides a framework for brands to pinpoint constantly shifting target and ground brand positioning for urban market strategy

Aligns product portfolio, marketing activity, creative, media buys, distribution, etc. against specific sub-segments with highest return on investment

Delivers ROI, measurement and accountability


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7 Ciphers™ Urban Consumer Segmentation Study >>

About The Pilot Study (2008)

Targeted sampling frame with 1000 completes

Included data from 200 non-qualifying respondents (general market implications)

Reflects regional differences and projects onto national population

RDD Data Collection (survey executed by Edison Media Research)

Flagship partners (MTV, Pepsi and The Brookings Institution)

Latent class segmentation model designed by William R. Dillon, renowned market research expert and Associate Dean of Southern Methodist University’s (SMU) Cox School of Business

Published over 50 articles in the general areas of segmentation, positioning, market structure and issues related to the use of latent class/mixture and covariance structure models.

Classification/targeting tool used to 1) track segments over time, 2) identify a respondents segment membership in real time, and 3) recruit respondents from a specific cipher/segment for the purpose of focus groups.

Phase II 2010

7 Ciphers syndicated & custom studies (fielding Q2 2010)


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cracking the code on the urban market >>

7 Ciphers™

In urban culture, a Cipher is a circular formation of individuals who communicate their unique perspective from one “builder” to the next

Similarly, urban culture has been transported from one sub-segment to the next as it has transcended race and geographical boundaries

Each segment contributes their own, customized adaptation of the culture to add on to its prior existence (DNA of Hip-Hop culture)

Consumers of an urban mindset do not respond to generic messages…only those brand communications written in the code of their particular Cipher


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7 Ciphers™ Segment Profiles >>

Core Urban: 14-30; African-American, Acculturated Hispanic; Northeast Corridor (NYC, Philadelphia, DC, Baltimore, Boston); Innovator/Alpha consumer who defines trends first (music, language fashion, etc.); Heavy gamers; Urban culture software developers and content creators; Brand creators who stimulate mass appeal and adoption by general market youth;

Tertiary Urban: 14-25; African-American, Caucasian, Acculturated Hispanic; Atlanta (Georgia), Houston, Dallas, Memphis, St. Louis; Make it cool to be country and use country grammar; Project unique expression of urban and Hip-Hop culture based on southern experience ; Currently driving urban culture and popular culture influence; Boast strong regional preferences and tastes;

Sub-Urban: 14-25; Caucasian, African-American; Iowa, Michigan, Dallas, Cleveland; Aspires to replicate lifestyle of core urban and tertiary urban consumer; Drawn toward realism, rebellion and authenticity of Hip-Hop; Heavy gamers; Instant access to culture via media and internet; Disposable income to buy into trends; African-American suburban teens act as transporters of urban culture via exposure to inner-city relatives;

Contemporary Urban: 25-49; African-American, Acculturated Hispanic;; New Jersey, Atlanta, Dallas, Houston, LA, Chicago; Hip-Hop’s Generation X; Upscale and affluent; Product of urban environment overcame obstacles on path to American Dream; Self-made moguls; Architects of modern urban culture; Identify with and influence urban trends downstream while preferences have moved upstream; Leading migration to new south;




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Organic Urban: 25-49; African-American, Caucasian; NYC (Brooklyn), Philadelphia, Chicago; Urban intelligentsia; College-educated, primarily at Historical Black Colleges and Universities; Resist commercialization in urban culture, especially music; Preference for classic soul and Satellite Radio format; Occasion-driven target active in alumni, sorority and fraternity networks; Authenticity and being “true to self” is paramount;

Alternative Urban: 14-30; Caucasian, African-American; Same geography as Sub-Urban segment’ Fusion of Rock, skate culture and Hip-Hop; Cultural transporters comfortable blending in rock or Hip-Hop environment; Product of suburban environment who maintains simplistic self-expression and doesn’t aspire to replicate core urban lifestyle wholesale; “Mashed” style;

Vintage Urban: 21-39; Asian-American, Caucasian, African-American; San Francisco/Bay Area, Maryland; Represent vintage/retro elements of urban culture; Innovators and early adopters from Asia (e.g. Japan) who were influenced early by Hip-Hop and urban culture and are now creating urban trends in fashion and technology (i.e. Nigo/BAPE); Reinforces originality by holding fast to classical elements of culture with contemporary twist;

7 Ciphers™ Segment Profiles >>




Brand “sweet spot” (18-49) >>

INNOVATOR

EARLYADOPTER

LATEADOPTER

MAINSTREAM

Core

Tertiary

Classic

Con

tem

pora

ry

Sub-

urba

n

Alte

rnat

ive

Org

anic


Case Studies…


Mercedes-Benz >>

Situation: Mercedes-Benz was looking to position its new C-Class with the urban market.

Rapper 50 Cent expressed an interest in endorsing the brand

Mercedes needed to connect urban positioning with its core brand positioning (I.e. Heritage0

Aligned brand with Contemporary Urban segment

Hip-Hop’s Gen X realizing lifestyle aspirations and signaling downstream

Mercedes-Benz traditionally represented “badge” of upward mobility for the urban audience (no different than the Nike swoosh) = heritage

Developed “Moving On Up” creative platform and used contemporized version of theme to TV popular AA sitcom The Jeffersons

Targeted mass market of contemporary urban professionals

Sales increase of 40%


Mercedes-Benz >>

Situation: Mercedes-Benz was looking to position its new C-Class with the urban market.

Rapper 50 Cent expressed an interest in endorsing the brand

Mercedes needed to connect urban positioning with its core brand positioning (I.e. Heritage0

Aligned brand with Contemporary Urban segment

Hip-Hop’s Gen X realizing lifestyle aspirations and signaling downstream

Mercedes-Benz traditionally represented “badge” of upward mobility for the urban audience (no different than the Nike swoosh) = heritage

Developed “Moving On Up” creative platform and used contemporized version of theme to TV popular AA sitcom The Jeffersons

Targeted mass market of contemporary urban professionals

Sales increase of 40%


Urban Truths In Advertising…


Heineken >>


Starbury >>


AA Brand Connections…


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Reinforcing brand heritage as a trusted member of the African-American household and community creates a loyal bond resulting in relationships lasting generations…because nothing is more important than being there for African-Americans. If you have been there for African Americans, African Americans will be there for you.

Brand Connection - Heritage


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Continuous product innovation is a sure-fire way to maintain the brand loyalty of African-Americans and influence trial and purchase. They embrace new technology, actively seek new products and appreciate product utility…because creativity, ingenuity and innovation are at the core of the African American consumer DNA. If you truly capture African-American consumers, they can help you build a better mouse trap.

Brand Connection - Innovation


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Image is everything for African Americans. Maintaining personal care and oral care are cardinal rules in the African-American household. Looking good is feeling good. Feeling good is doing good (at home and in the community). Because nothing is more important to African Americans than having style and staying so fresh & so clean. Helping African Americans project a positive image of themselves and their community will reflect back on your brand.

Brand Connection - Image


Thank You!!!

Contact Information:

Twitter: @MrErinPattonFacebook: Erin Patton’s Under The Influence

LinkedIn: Erin Pattonwww.undertheinfluence2009.comwww.themastermindgroup.com

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