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Friday May 16, 2008

The Bottom Line: Understanding Your Market

TJ DeGroat

It's a simple diversity business rule: to effectively reach a minority population, a company must understand that community.

But even now, there are countless examples of big businesses offending minority communities and potential customers, by creating ad campaigns, corporate policies or making statements that are deeply offensive.

'Respect is very important to everyone, but especially for Asian Americans,' said Rita Cheng of interTrend, a Torrance-Calif.-based advertising agency specializing in Asian-American campaigns. 'If they feel your brand is a positive brand, they'll be loyal,' 'If, in a commercial or an ad, you're making fun of the target market, they won't respect the brand and won't use it.'

The now infamous Abercrombie and Fitch T-shirts, which featured controversial Asian-American themes that sparked outrage among most members of the community, show that Asian Americans will not ignore culturally insensitive actions.

One Abercrombie shirt featured slant-eyed men in cone hats accompanied by a slogan reading, 'Wong Brothers Laundry Service - Two Wongs Can Make it White.' Another shirt bore the logo, 'Wok-N-Bowl - Let the Good Times Roll - Chinese Food & Bowling.'

After nearly a week on the shelves, protesters flocked to the company's downtown San Francisco, prompting Abercrombie to pull the shirts from all 311 stores. 'We're very, very, very sorry,' company spokesperson Hampton Carney said. 'It's never been our intention to offend anyone.'

The incident captured the attention of the media and the public – a positive for any retailer – but lost many Asian-American customers, including Cheng.

'They pretty much targeted teens and college students, but as an advertiser you have to be sensitive and respect the entire audience,' she said. 'I personally won't buy from Abercrombie.'

She isn't the only one.

The country's 12 million Asian Americans spend a hefty $254 billion a year in goods and services, according to the Selig Center for Economic Growth. That's nothing to laugh at, Cheng said.

But Abercrombie is not the first company to roll out insensitive products or ad campaigns.

In 2000, Burger King faced backlash from the Council on American Islam Relations when it aired a radio commercial featuring a character named Rasheed praising the company's bacon-cheddar sandwich even though the Islamic faith prohibits its members for eating pork products.

That same year, the company's Kid's Club featured an action figure with a face that changed in color from brown to white when coming in contact with heat. The toy sent the message, to some, that white is the only normal skin color.

When a Merrill Lynch branch office decided to market to gay and lesbian consumers, most of the financial advice dispensed at a free seminar was based on the incorrect assumption that gays have the same legal rights as married couples.

A Latino advertising agency taught the California Milk Processor Board a valuable Spanish lesson when the board tried to create an ad campaign translating the popular "Got milk?" tagline. In Spanish it would mean, 'Are you lactating?'

There are subtle cultural differences that affect advertising, as well, according to author Michael Lee.

Using the color red in an ad could work with many Asians because it is considered lucky, but green carries a negative connotation.

Americans have long considered 13 to be an unlucky number, with the number seven carrying the opposite connotation. In Asia four is generally considered unlucky, so some savvy store owners avoid packaging items in bundles of four.

'It's not easy to be sensitive and to learn everything about a culture, but it's important,' Cheng said. 'As an advertiser, if you're trying to reach a group you don't want them thinking you don't relate to them.'

If a financial-services company offers educational booklets in several languages, it could attract diverse customers. 'If a group can understand the literature, in return, they feel that the company understands them.'

The Asian American Advertising Federation (3AF) was established in 1999 to raise awareness among ethnic advertisers and marketers. Jon Yasuda, former president of the group, said companies should take time to consult with minority agencies to make sure their ads are on the right track.

"These are lucrative consumer groups. It just doesn't make sense to spend time and money trying to persuade them to use your product without putting any thought behind the endeavor,' he said.

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