Reference no: EM131848338

Problem: WELLS FARGO BANKS ON EMBRACING SAME-SEX MARRIAGE

With the U.S. Supreme Court decision that upheld the constitutional right to same-sex marriage in June 2015, the cultural landscape changed dramatically. Although only 13 states had continued to oppose same-sex marriage, the decision was a significant moment for the LGBT community and for many other citizens who saw the issue as national confirmation of a fundamental civil right for a sizable portion of the population. Regardless of where individuals stand on this issue, many companies and brands are realizing that they must pay attention and respond strategically to this increasingly visible subcultural group. The Supreme Court ruling comes at a time when public opinion on the issue is evolving as well. Polls indicate that most Americans now approve of same-sex unions and a recent Google study shows that almost 50 percent of Millennials would be more likely to support a brand after seeing an ad with a theme of equality. Additional evidence of the changing marketplace includes a study by PR firm Edelman that identifies gay, lesbian, and single parents as the new traditional family. Less than half of today's families fall into the 2010 U.S. Census definition of "traditional," and 2 million children are being raised by lesbian, gay, bisexual, and transgender (LGBT) parents.

The study points out that companies need to make sure that all aspects of their marketing, from imagery to language, lend themselves to a variety of audiences, including this new family demographic. In a more specific finding, the study reported that 66 percent of gay dads are more likely to buy products that run ads reflecting their sexual orientation. Some companies have already reached out to the LGBT market. Initial strategies focused on being involved in gayrelated events or placing ads in LGBT-specific media. In "Advertisers Come Out of the Closet, Openly Courting Gay Consumers," Rich Ferraro, VP of communications at GLAAD, reminds us that the history of gay people in advertising is relatively short. Brands like Bud Light and Absolut Vodka made early moves to market directly to gay men in gay magazines or at gay events. Robert Klara from Adweek goes on to identify the "coded ads" that would be understood by the gay market, but missed by straight consumers. He points to the Volkswagen Golf ad, "Sunday Afternoon-DaDaDa," an ad with two guys driving around. The two guys could be interpreted to be friends or boyfriends, depending on the viewer's sexual orientation. Coding ads was seen as a step forward, while allowing brands to remain somewhat ambiguous and face less potential backlash.

Most recently companies with even more traditional products have incorporated overtly LGBT themes into mainstream campaigns, Honey Maid, Kindle, Marriott, Target, Burger King, and Chevrolet, to name a few. Do these moves represent real social progress? As Klara points out, the reality is probably more a reflection of how competitive the marketplace is today. As he says, "If you're not appealing to every minority community, be that racial or in terms of sexual orientation, you're missing out on market share." In the banking world, a notoriously conservative industry, Wells Fargo appears to be ahead of the curve, as demonstrated by their willingness to associate their company name with same-sex marriage. When they launched their 2015 ad, "Learning Sign Language," they became the first U.S. bank to feature an LGBT relationship in a national ad campaign. The ad features a lesbian couple learning sign language in preparation to adopt a deaf child. Wells Fargo Chief Marketing Officer Jamie Moldafsky points out several noteworthy aspects of the campaign: The campaign's goal was to reflect the diversity of customers and to tell emotional stories that illustrate universal truths.

The bank felt that it was a great way to both represent the notion of family and adoption-both an important part of their communities and many of their customers' lives- and to do it in a way that felt very true to their perspectives about diversity and inclusion. Wells Fargo knew that there would be potential backlash to the campaign. Several religious groups have publicly boycotted the bank, including Franklin Graham of the Billy Graham Evangelical Association. Graham pulled all of his organization's accounts and then publicized the decision on social media. Wells Fargo's reply was that they would not be swayed by boycotts and would continue with the ad. Moldafsky commented that this ad is not their first marketing effort targeted at the LGBT market. The bank has supported the LGBT community over the long term in a variety of ways and even has a business unit that specializes in financial advice for same-sex couples.

Discussion questions:

1. Some criticize the actions of companies that try to align themselves with the values and views of subcultures as simply moves to make more money rather than attempting to make a social statement. What is your evaluation of this criticism?

2. Is there a point at which a subculture becomes so "mainstream" that unique marketing approaches are no longer appropriate or necessary? Discuss.