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Question: 1 what are the main characteristics of the lexus campaign...

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1. What are the main characteristics of the Lexus campaign developed for Hispanic consumers?

2. Why was music a key element in the campaign to attract Gen X Hispanics?

3. Compare the effects of the Lexus campaign with that of another campaign you may find in a quick search. What are the most important differences?

CASE STUDY 2.2 LEXUS: CELEBRATING LATIN MUSIC AND CULTURE Section I. General information Walton Isaacson (WI), as the multicultural agency of record for Lexus, identified an opportunity to use music to connect with affluent Hispanic millennials and early Generation Xer singles or couples. Within this seg- ment, luxury brands are viewed as a reward for hard work and a represen- tation of their upwardly mobile social status. Music is a passion point in general and indie-alternative Latin music has specific resonance with this culturally attuned group of early adopters and cultural explorers. Lexus and WI worked with producer Pili Montilla to develop Vida Lexus Presents Té Para Tres, a celebration of up-and-coming Latino music artists who are in pursuit of perfection. In addition to branding a television program with digital extensions, the platform used advertising, experiential, and product integration to create a holistic experience for Lexus loyalists. This was also engineered to attract conquests, those Latino consumers who, with the right brand alignment, would be likely to leave the competition. Section II. Campaign background Upon entering the US Hispanic marketing arena in 2005, Lexus identified an opportunity to connect with affluent Latinos by engaging them witha luxury-level celebration of Latino arts and culture. This led to the creation f VidaLexus, an online lifestyle site, and the in-market experiential com- ponent, a series of tastemaker events activated under the umbrella of Vida- Lexus Presenta emphasizing the best in food, music, and the arts with a strong foundation already in place in key local markets ghout the US, Lexus focused on speaking to a national and highly ience of affluent Latinos. Recognizing that there was a lack of 01 thr digital audi

Section II. Campaign background Upon entering the US Hispanic marketing arena in 2005, Lexus identified an opportunity to connect with affluent Latinos by engaging them with a luxury-level celebration of Latino arts and culture. This led to the creation of Vidal exus, an online lifestyle site, and the in-market experiential com- ponent, a series of tastemaker events activated under the umbrella of Vida- Lexus Presenta emphasizing the best in food, music, and the arts. In 2013, with a strong foundation already in place in key local markets throughout the US, Lexus focused on speaking to a national and highly digital audience of affluent Latinos. Recognizing that there was a lack of original programming catering to this audience, WI and Lexus examined possible paths to engagement. They identified music as a key opportunity to make that vital in-culture connection with bilingual, bicultural consumers, all of whom speak the language of music. In partnering with Pili Montilla, the producer and host of the Té Para Tres (TPT) TV show, Lexus was able to play an authentic role in the expansion and evolution of a well-respected Cop

Te fars Tres CONCERT SERES Figure 2.2.3 Lexus campaign development Millennials and music consumption Millennials are currently the largest generation and more diverse than ever, but there is something that unites all ethnic groups: music. According to a study by Vevo, 69% ofyoung consumers agree that they cannot live without music, and 71% say that music is a part of what defines them. Being the always connected generation, millennials have a limitless 24/7 reach. The average millennial spends an average of 25 hours a week streaming music from a vari- ety of sources and more than 60% of listeners say they are always trying to find new music and discover the next big thing in unconventional ways. This indicates that music consumption is pronounced in the younger generation. Gen X Hispanics and music consumption Gen X Hispanics are avid music listeners. Mintel reports that 67% of His- panics listen to music in their leisure time. As Hispanics become more

PURSUIT OF INDIVIDUAL PASSIONS SHARED VALUES ENTREPRENEURIALISM GOOD TASTE Figure 2.2.4 Lexus campaign development breakdown Copyrigh

regardless of level of acculturation, which is higher than the share of His- panics following TV shows, news, and magazines As US culture is continuing to change and as society becomes more racially and ethnically blended, the Hispanic audience is finding satisfac- tion in shaping new cultural norms that focus on their aspirations. Figure 2.2.4 illustrates the shared values of the Hispanic audience The main values that appeal to this audience segment are entrepreneurialism, the pursuit of individual passions, and indulgence Hispanics and entrepreneurialism Today, Hispanics are empowered to get an education and a job to achieve financial stability before starting a family Hispanics take it upon them- selves to achieve financial success and freedom They also bring others up with them Hispanics and the pursuit of individual passions The Hispanic consumers attitudes and motivators are transforming. They are always looking to cultivate an identity for themselves and their culture, while thriving in the modern world Hispanics are driven by passion, inde- pendence, self-sufficiency, self-respect, and self-actualization. Hispanics and good taste For Hispanics making more than S100,000 per year, which constitutes 12.2% of Latino earners, studies have found significant differences in the spending priorities of affluent Latinos, as compared to less affluent Latinos Affluent Latinos were more likely to spend on visiting a theme park, get- ting a gym membership, and signing up for streaming video subscriptions than affluent non-Latinos. This signifies a greater appetite for luxury and purchases that reflect good taste.

Sources: Vevo Music Fan Report The Millernial Fan Tribes 2015 inte Hs panic Lifestyles and Entertainment-Us-April 2015. Iconoculitare. 2015 Several key pieces of data also played a role in the development of the program .Data from the Lexus Listening Lounge, which celebrates both Latin music and culture, showed an increased demand for specific genres of music and/or an increased Hispanic audience around specific content One example, resulting from an event in Los Angeles during Hispanic Heritage Month, yielded a total of 1,064.730 TweetReach impressions The Hispanic/Latino market 87 Information from Nielsen that revealed the Latin music fan base is heavily composed of millennials, who enjoy technology and digital music and are always on the lookout for new tunes when they appear online. This group of individuals is also sourcing their music in new ways, using blogs like NPRs Alt.Latino, Twitter feeds from users like Mexico City DJ Camilo Lara, and websites like Live365 or MTVs Tr3s to find their next favorite artist, album, or song Source: Nielsen, 360 US Study: 2015. Iconoculture. 2015. Lexus Listening Lounge, 2015

SELLUB.EELEU tHEe Lampargu The Vidalexus Presenta Té Para Tres TV show had a noticeable impact on the viewership of MEGA TV for its allocated time slot. It attracted a younger audience along with balancing the gender ratio. The Vidal.exus Presenta Té Para Tres live concert series managed to attract the attention of many Hispanic influencers and generated a considerable amount of social media buzz on event dates Ratings During airing of seasons 1 and 2 TVs time slot demographics to a younger and more diversified audience Té Para Tres changed MEGA The 25-34 segment grew by 148%+ during season 2 Social media 99 5 million impressions Vidal exus com traffic .During the three-month time period that Te Para Tres lived online there were 18K total page views 5K page views came from Té Para Tres-related content Benchmark: time on site averaged two minutes, prior to TPT content users were on site less than one minute . . Live concert series social media 13.4 million + social impressions related to the trend tag #Vidalexus and #TeParaTres . .5 million social impressions for Los Angeles event 2 million social impressions for Miami event 2.5 million social impressions for Houston event 3 million social impressions for New York event Accolades

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