| Dwayne Ashley, President and CEO of the | | | | thoughts on that? |
| Thurgood Marshall College Fund, has been | | | | DWAYNE: I think to a degree some of that is |
| successfully raising funds in the non-profit sector | | | | true. You may get them on a first-time |
| for 20 years. His commitment to supporting | | | | experience; however, if that experience is not a |
| educational opportunities for the black community | | | | good one, they're not going to come back. |
| is the continuation of a legacy that began with his | | | | African American consumers are brand loyal |
| grandmother. George Eliot said, "Our deeds | | | | based upon the experience they have. You may |
| determine us, as much as we determine our | | | | draw me in the door because I've aspired to the |
| deeds." In keeping his family's generational | | | | level where I can afford it. But, if I have a bad |
| imperative of ensuring that others are afforded | | | | purchasing experience, then I'm going to have a |
| the opportunity to become educated and affluent, | | | | bad association with that brand. It's not going to |
| Dwayne has earned that status for himself. I | | | | have as much value to me. Even though it may |
| recently spoke with him to discuss the value of | | | | carry a certain prestige, that's not going to |
| marketing partnerships with member-based | | | | matter if the experience with it is bad. You've got |
| organizations, the importance of diversity advisory | | | | to make sure people are treated well, |
| boards, and the opportunities for luxury brands to | | | | consistently, in that retail experience if you want |
| target affluent ethnic consumers. | | | | them to return. |
| ANDREA: Tell us about yourself and your family | | | | ANDREA: One of our focus group participants in |
| background. | | | | Atlanta last year expressed it perfectly when she |
| DWAYNE: I'm actually celebrating my 20th year in | | | | said, "The brand gets you there, but the |
| the non-profit sector. I grew up in the South - in | | | | experience keeps you." |
| Houston, Texas. I am a third generation black | | | | DWAYNE: Exactly. |
| college graduate. Most of my family members | | | | ANDREA: I'd like to talk about Thurgood Marshall's |
| went to Grambling and Southern University in | | | | partnerships with luxury brands and the level of |
| Louisiana. In fact, one of my first cousins was a | | | | success you've had this year given what we're |
| former president of Grambling. I attended public | | | | hearing in the media about how the level of giving |
| school, Wiley College for my undergrad, and | | | | is down in the current economy. |
| University of Pennsylvania for graduate school. My | | | | DWAYNE: Well, here are some facts to consider: |
| parents were entrepreneurs, and my mother still | | | | Only 15% of the African American community |
| operates a small business. My dad is retired from | | | | has a bachelor's degree or higher; and we enroll |
| Texaco. | | | | 9% of African American students between the |
| ANDREA: How did you get involved in the | | | | ages of 18-22 years old. So we have a large |
| non-profit sector? | | | | percentage of the people who are going to have |
| DWAYNE: I started doing fundraising for the | | | | degrees in the future. What this says is that if |
| United Negro College Fund [UNCF] while I was in | | | | you [as a brand] are looking to target those |
| college. From that involvement I was elected to | | | | people who are going to have the purchasing |
| become the National Pre-Alumni Council president, | | | | power for your brand, you want to be working |
| which was the student fundraising arm. That got | | | | with the Thurgood Marshall Fund. We are |
| me interested in fundraising. When I graduated | | | | cultivating the future black middle class and |
| college I wanted to work for UNCF, but they | | | | upper-middle class through our students. To take |
| wouldn't hire me because I didn't have enough | | | | that point further, it's currently our alumni who |
| experience. So I went to work for the United | | | | are making up a large part of that segment. |
| Way, did two years there, and then was | | | | Luxury brands recognize this fact, and it's why |
| recruited to head up the UNCF office in | | | | they want to partner with us. You can't argue |
| Philadelphia. From there I was "bitten by the bug" | | | | with education; you are able to associate with a |
| and stayed in the industry. | | | | great cause and reach your market segment. We |
| ANDREA: That's a long commitment, Dwayne. | | | | consistently deliver that segment through our |
| There must be something driving you. What is | | | | regional events. Thurgood Marshall's name is |
| that? | | | | associated with quality, elegance, style and |
| DWAYNE: Well, one thing is that my | | | | success, because he was a lawyer and a |
| great-grandmother was a famous midwife in | | | | Supreme Court Justice. He dealt with the |
| Louisiana, and she donated the land for the first | | | | intellectuals of this country. |
| black school to be built. I think it goes back to my | | | | As far as the second part of your question and |
| family history and her commitment to education - | | | | the marketplace, we hesitate to boast, but we |
| it's in the family's blood. They've all been involved | | | | are doing well. I think it's because we are so |
| volunteers. My mother serves on several | | | | well-positioned with our strategy that, even in a |
| community boards, and my dad is the chairman | | | | down economy, people are still going to support |
| of his church board and has been very active in | | | | us. We focus on talent - the best of the best. We |
| the community. So I think it comes from being | | | | help companies fill those pipelines, and in a down |
| brought up in a family that is civic-minded and has | | | | economy, companies are looking to access talent |
| cultivated that in me. | | | | who can come in and affect the bottom line |
| Now, because I went to an HBCU [Historically | | | | quickly. We deliver this talent, and it attracts our |
| Black College or University] I know the difference | | | | partners and keeps them engaged with us. Brands |
| that it makes, and I want to see more kids get | | | | need to keep investing in the "pipeline" for the |
| that opportunity. That's part of what drives me | | | | future. |
| to continue to do this - and that you can see the | | | | ANDREA: Through a partnership with Thurgood |
| tangible results. | | | | Marshall you're accessing potential employees and |
| ANDREA: How long have you been with Thurgood | | | | consumers - you're getting the best of both |
| Marshall [College Fund]? | | | | worlds! |
| DWAYNE: Nine years. | | | | What luxury brands need to understand is that |
| ANDREA: And before that? | | | | just a sponsorship or a one-off may not be |
| DWAYNE: I was with 100 Black Men [of America, | | | | enough to show authentic effort. Partnerships |
| Inc.] as their national executive director, and that | | | | establish roots with this consumer base. Tell us |
| was for three years. | | | | about a partnership you've had for a while that's |
| ANDREA: Was your family affluent as you were | | | | worked. |
| growing up? | | | | DWAYNE: We've had a long-term partnership with |
| DWAYNE: No, I would consider us middle class - | | | | Mercedes-Benz that started with our event in |
| for the black community. They operated small | | | | New Jersey. A group of affluent local attorneys |
| businesses. My father worked at Texaco in | | | | have been the title sponsor for about nine years. |
| mid-level management. So we definitely weren't | | | | This event delivers access to a group of |
| affluent. | | | | consumers who buy Mercedes' products and are |
| ANDREA: Would you consider yourself affluent? | | | | loyal patrons. Additionally, it cultivates prospects |
| DWAYNE: Based upon your definition of income | | | | because they are getting access to young |
| [$75K+ individual annual income], I would. | | | | lawyers who are their future customers. It's given |
| ANDREA: Do you feel affluent? | | | | them an opportunity to align themselves with |
| DWAYNE: I like a certain quality, and this holds | | | | supporting the event, and they've been able to |
| true for me professionally and in everything that I | | | | recruit lawyers into the corporation as well. It's |
| do. So in that sense, yes, I feel I'm affluent. | | | | been a very holistic partnership. Out of that |
| ANDREA: What makes your lifestyle different | | | | experience, Mercedes-Benz became a national |
| from that of the average person? What are | | | | partner to gain more exposure to the market |
| some luxuries you incorporate into your life? | | | | they wanted to tap into. |
| DWAYNE: I would say it's in the way that I shop. | | | | ANDREA: Do you see the next phase of this, and |
| I shop for a sense of quality because I am in the | | | | similar partnerships, evolving beyond HR benefits |
| non-profit field, and I want to make sure that | | | | and into integrated partnerships? For example, |
| when I approach my donors they understand | | | | Mercedes-Benz could provide co-branded content |
| there's a certain commitment to quality that I | | | | in order to capture consumer data, prospect and |
| bring. I want them to feel I can somewhat relate | | | | expand their ROI. |
| to them. No one wants to have you dealing with | | | | DWAYNE: Yes, they've already looked into that. |
| them if they feel you can't relate to them to | | | | One of the ways we're doing it is to bring in the |
| some extent. For example, if I'm taking a donor | | | | financing arm of Mercedes-Benz Financial Services. |
| to dinner I need to feel comfortable with a certain | | | | At first we looked at strictly helping them get |
| level of elegance and in a certain environment | | | | more brand recognition with the audience - the |
| that cultivates affluence. In that regard, I live my | | | | lawyers, alumni, PhDs and business majors - who |
| life in that way because a lot of the people I'm | | | | support the organization. Now the next step in the |
| doing business with are living that way. | | | | relationship is to expose them to another division |
| ANDREA: Aside from quality and value, are there | | | | of the company, which is the financial arm that |
| things about your daily, weekly or monthly life in | | | | offers the option to finance with Mercedes-Benz, |
| which you indulge that would be over and above | | | | instead of Chase Manhattan. |
| the experience of the average person? | | | | We're also furthering the relationship by trying to |
| DWAYNE: I do have a lot of my shirts and suits | | | | help them connect with our three schools in |
| custom-made. I shop at certain stores because of | | | | Alabama where Mercedes-Benz has a plant. We're |
| the quality and because of the way they treat | | | | doing this by having some of their engineers |
| me when I shop at those stores. That's very | | | | teach on campus at our schools. It makes for a |
| important to me because I don't have a lot of | | | | fully comprehensive partnership. |
| time, and so I've had a personal shopper for nine | | | | ANDREA: You've created a fully integrated |
| years. That's somewhat affluent, but it's also | | | | partnership where you can extend their HR |
| about being efficient with my time. | | | | benefits and also incorporate marketing programs. |
| ANDREA: Tell me how you define luxury. | | | | DWAYNE: Yes, and in 2009 we want to do a |
| DWAYNE: It's a feeling of success. It gives you a | | | | co-branded sweepstakes giveaway that will drive |
| certain stature when you're wearing it [a luxury | | | | people to their website to register. |
| item], or when your dining, or driving a luxury car. | | | | ANDREA: Which luxury brands, or general market |
| ANDREA: Do you feel you are treated differently | | | | brands, would you like to build relationships with? |
| when you shop at luxury stores? | | | | DWAYNE: Apple is one, and so is Sony. Sony was |
| DWAYNE: Yes, and I can give you an example of | | | | actually one of our founding partners, but we lost |
| that: I absolutely hate to go to a store that asks | | | | the relationship when Tommy Mattola left as CEO |
| to look in your bags as you walk out. It makes | | | | and LeBaron Taylor passed away. We'd like to |
| me feel differently [about that store]. The stores | | | | reconnect with them. We're also interested in |
| where I shop don't do that. I like being treated in | | | | partnering with consumer brands that have food |
| a way that shows I'm respected as a person | | | | products because we promote health on the |
| who can afford to shop there, and there's no | | | | campuses. With grocery retailers such as Whole |
| reason to check my bags as I'm leaving. | | | | Foods, there's an opportunity to connect with our |
| ANDREA: At this point in our interviews, we like | | | | students. Cadillac has historically been well |
| to talk to people about how they get treated at | | | | supported by African Americans and, unlike |
| retail stores. Can you tell about experiences | | | | Mercedes-Benz, could be targeted to the |
| you've had as an African American in retail | | | | students' parents - many of whom are loyal to |
| environments? And, secondly, what brands do | | | | Cadillac in the South. St. John is another because |
| you think are doing a good job of marketing to | | | | black women wear St. John's clothing. |
| and treating you and your peers well? | | | | ANDREA: You know that your organization's |
| DWAYNE: I have had the experience in some | | | | constituency and even people on the fringes, by |
| stores, as an African American, where I've been | | | | sheer numbers alone, could make or break a |
| followed around. Those are stores I don't | | | | brand. This last presidential election is enough |
| frequent again when I'm treated in that way. | | | | proof of that fact - research aside. So give us an |
| Then, I've had experiences in stores where I was | | | | example of an emerging luxury brand that your |
| treated like any other customer: They tried to | | | | organization could partner with to take to the |
| make sure they were serving me well. There are | | | | next level. |
| a few stores that do this extremely well, such as | | | | DWAYNE: I think one of the hair care brands |
| Barneys. They get a diverse group of people who | | | | bought by African American women would be a |
| shop there; they are very good about how they | | | | great partner. Even brands live Aveda, who may |
| treat you. I think Mercedes-Benz does a great | | | | be viewed as more of a general market brand, |
| job. I think BMW does a great job. I've owned | | | | would benefit from partnering with us because |
| both of those products, and they've treated me | | | | we could help create cross-over appeal and |
| extremely well. As far as clothing stores go, I | | | | expand their reach. |
| would say Gucci and Ferragamo treat you well | | | | ANDREA: In your opinion, how can luxury brands |
| and give good service. Your race doesn't matter | | | | better target affluent African Americans and |
| because they have a high level of commitment to | | | | other affluent ethnic consumers so that they |
| all their customers. | | | | aren't leaving money on the table? |
| ANDREA: When you have a bad experience with | | | | DWAYNE: Brands need to do more than just |
| a brand while on the phone, over the Internet, or | | | | partner with the traditional organizations who |
| in person, do you tell your friends about it? Do | | | | aren't always able to deliver as they used to be |
| you say something to the manager? How do you | | | | able to do. They should reach out to organizations |
| handle it? | | | | who may not be on their radar screens, like the |
| DWAYNE: I do tell my friends. In the past I would | | | | Thurgood Marshall [College] Fund, fraternities, |
| just leave and no longer give them my business. | | | | sororities, and other black member-based |
| At this stage in my life, I make a point of letting | | | | organizations. The world has changed, and |
| them know. I had an experience last year with a | | | | marketers need to change how they think, who |
| well-known retail brand where I went into their | | | | they partner with, how they research and |
| store to buy a jacket. It was an African | | | | resource, and how they design their marketing |
| American salesperson that ignored me and acted | | | | strategies. |
| like I was just window-shopping with no intent to | | | | ANDREA: Yes, and having a competent staff and |
| purchase anything. Then I walked to another part | | | | or consultants who can help them navigate these |
| of the store and, immediately, a Caucasian | | | | waters and perfect richer integrated marketing |
| gentleman came up to me and said, "Can I help | | | | programs, vs. just a sponsorship, is key. Our |
| you, sir? Is there anything you need?" When I got | | | | research shows that the most effective and |
| ready to pay for the jacket, the other guy ran | | | | affordable way to reach affluent African |
| up to my salesman and said, "I greeted him first." | | | | Americans is through partnerships with |
| I said to him, "Well, you greeted me, but you | | | | member-based organizations where the audience |
| didn't ask me if I needed help. You let me walk | | | | is already there. It's worked for you for years. |
| around in your section for ten minutes, and you | | | | You've seen the results because you have |
| never once tried to help me. So, you are not | | | | longstanding partnerships that continue to grow. |
| going to get the sale. This gentleman is going to | | | | Brands must understand the complete landscape |
| get it because he was proactive in taking care of | | | | of opportunity and recognize that most |
| my needs." You see I was in jeans, and I think he | | | | businesses need consultants to help them fully |
| made the assumption that I probably wasn't going | | | | leverage each opportunity into a mutually |
| to buy anything. It shouldn't have mattered what | | | | rewarding and measurable partnership. |
| I was wearing. I should have been viewed as a | | | | DWAYNE: Right. For example, I feel it is very |
| customer who wanted to make a purchase. | | | | important for a company to have executives fully |
| ANDREA: We hear this same scenario played out | | | | engaged with the organization they support |
| consistently. The message we want to convey to | | | | through sitting on its boards. |
| luxury brands is "don't judge a book by its cover." | | | | ANDREA: Do you think it's an advantageous |
| DWAYNE: I'm sure. But some stores do get it | | | | strategy for companies to form diversity |
| right. I've been shopping at Barneys for 12 years, | | | | advisory boards? |
| and I would give them an A+ for the way they | | | | DWAYNE: Absolutely. In our case for example, |
| treat people. Their salespeople are trained to take | | | | interacting with and touching the consumer is |
| care of you. | | | | essential. Our partnerships deliver the 30-40 year |
| ANDREA: You've brought up a key point we find | | | | olds who are the new leadership. They have |
| over and over, and that is: No matter how much | | | | power and influence. They are a segment of the |
| money a brand puts into corporate marketing, all | | | | affluent population who understand quality and |
| of their marketing investment can be wasted if | | | | luxury and want to be respected and treated as |
| their retail staff isn't trained correctly. | | | | successful people. Through correctly aligned |
| DWAYNE: I would agree with you completely. I | | | | partnerships, brands can appeal to this segment |
| only shop at stores that treat me well and give | | | | and will have a loyal following. Our board members |
| great service. | | | | represent some of the biggest brands in America |
| ANDREA: We've encountered some brands that | | | | today, and they get a firsthand look at this power |
| think affluent ethnic consumers buy their brands | | | | and influence in action. And, I believe this |
| regardless of where they advertise. They market | | | | experience positively impacts their "diversity and |
| in general media and feel they're reaching | | | | inclusion" business initiatives. It is knowledge that |
| everybody because their philosophy is that once a | | | | can't be found in any report or in any bland |
| consumer obtains a certain level of wealth, | | | | demographic study. It's hands-on knowledge! |
| regardless of race, they assimilate. What are your | | | | |