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- AQ #35: Inclusive Marketing: Business Case for Embracing Diversity and Equality❣
AQ #35: Inclusive Marketing: Business Case for Embracing Diversity and Equality❣
Discover how inclusive marketing strategies can drive business growth by exploring the business case for embracing diversity and equality
Ritu Jhajharia
March 20, 2024
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Imagine walking into a room where every voice is heard, every face is seen, and every story is valued.
This, my dear, is the world of inclusive marketing—a fantastical realm where authenticity and diversity reign supreme, where brands embrace the kaleidoscope of human experiences to create connections that resonate deeply.
And because even that premise feels such a far-fetched unattainable fantasy, today we’re going to dig our heels deep into the grounds of Inclusive Marketing.
34% respondents in a survey have boycotted a company or brand at least once because they don’t feel their identities were represented in the companies’ advertisements or actions.
Today’s edition might come across as a bit different to you. I’m not going to give any strategic steps or tips to follow, or reports or case studies as you usually enjoy. Ok, you got me, there is a case study, and you’ll thank me for that, I hope. But all in all, we’re going to make a solid case for Inclusive Marketing instead.
We’re going to see why it can’t be simply dismissed as woke fad by its naysayers. Rather, it makes a serious business case in its favor, so much so that being ignorant has heavy costs for the brands.
Intrigued?
Let's dig right in!
HubSpot’s 2024 State of Marketing Report
Dive into the future with HubSpot's State of Marketing Report for 2024! Uncover the latest trends from AI integration to privacy-first strategies. Perfect for marketers aiming to stay ahead, this report offers a deep dive into evolving consumer behaviors, innovative marketing tactics, and the rise of personalized, data-driven campaigns.
Representation Matters
Studies have shown that when individuals see themselves reflected in advertisements, they are more likely to engage with the brand.
Picture this:
A young girl eagerly flipping through a magazine, probably searching for or faintly hoping to spot someone who looks like her, yet is aspirational to her in some way.
It's a quest for connection, for validation. Suddenly, she stops at a page where a campaign features a young woman with a similar background, sharing her story with pride.
67% of consumers feel more favorable about brands that represent a wide range of races and cultures
That moment of recognition and relatability sparks a sense of belonging, of being seen in a world that often overlooks or worse still, undermines her uniqueness.
This isn't just a fictional story; it's a powerful consumer insight for modern marketers.
38% of respondents said they are more likely to consume products and services from brands that show diversity in their ads
Do you recall any brand campaigns that were built on this insight?
Let me know.
The Business Case for Inclusive Marketing
Did you know that diverse companies are 70% more likely to capture new markets?
That's not just a slight advantage—it's a game-changer.
In today's competitive landscape, inclusive marketing isn't just a moral imperative—it's a strategic advantage that drives growth, captures new markets, and builds unshakeable brand loyalty.
Inclusive Marketing is not just about appealing to a broader audience; it's also about tapping into new opportunities for growth and innovation. Furthermore, diverse and inclusive companies aren't just tapping into new markets; they're dominating them.
When it comes to Inclusive Marketing, hard evidence in form of consumer research studies and business results speak volumes.
Let’s see how.
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1. Capturing Diverse Markets
Diversity isn't just a checkbox—it's a gateway to untapped consumer segments.
By embracing inclusivity and actively promoting listings from hosts of underrepresented backgrounds in their widely appreciated campaign - We Accept, AirBnB saw a staggering 25% increase in bookings.
Yes, you read that right—25%.
How? Glad you asked.
By highlighting diverse hosts and guests, they saw this increase in bookings from underrepresented groups, expanding their market reach significantly.
It's a clear signal that when brands authentically represent diversity, consumers respond with their wallets wide open.
in 2019, top-quartile companies outperformed those in the fourth one by 36% in profitability
This isn't just about being morally right; it's about being financially savvy. Inclusive marketing isn't a box to check—it's a strategic move that drives revenue, builds loyalty, and secures a competitive edge in today's dynamic marketplace.
2. Amplifying Brand Reputation
Brands with the highest diversity scores showed an 83% higher consumer preference.
Inclusivity isn't just about attracting customers; it's about building a rock-solid reputation.
One standout example is Coca-Cola's Open to Better campaign, celebrating diverse communities around the world.
The result?
A surge in positive brand sentiment, with a 45% increase in social media engagement.
3. Driving Innovation and Creativity
Up to 120 Million people in the U.S. do not see themselves portrayed In ads.
That’s a colossal opportunity lost. And imagine the kind of innovation and creativity it would spark.
Inclusive teams are powerhouse hubs of innovation, sparking creativity and fresh perspectives.
Google's Code Next initiative, aimed at empowering underrepresented youth in tech, not only fosters innovation but also strengthens Google's position as a leader in inclusive tech solutions.
Fenty Beauty, a brand created by popstar Rihanna, has offered more than 40 makeup shades. In its first month of launch, Fenty reportedly earned over $72 Million and was consistently sold out in stores.
Fenty x Savage by Rihanna are built on the innovation led by the fundamentals of inclusive marketing. Rihanna became a self-made Billionaire on the back of these brands.
Read this, if you haven’t already —> Savage AF - A study of Fenty x Savage by Rihanna
4. Enhancing Customer Engagement
82% of Gen Z consumers in a survey would trust a company more if it uses images of real customers in its advertising
Consumers crave authenticity and connection, and inclusive marketing delivers just that.
Nike's You Can't Stop Us campaign, featuring athletes of all abilities, struck a chord with audiences worldwide, leading to a 30% boost in online engagement.
Barbie became the highest grossing and widely loved summer blockbuster of 2023 on the back of its theme, as well as, the very interesting marketing campaign done to promote it.
Read all about it in my previous article —> Top 5 Marketing Moments of 2023
Taylor Swift and her The Eras Tour keeps making and breaking unprecedented records and are sweeping everything in their way with the power of inclusivity, relevance, diversity and equality, themes that resonate with both Gen Z and Millennials.
Read all about it in my previous article —> Marketing Lessons from Swiftonomics
5. Future-Proofing Your Brand
Companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile.
Inclusive marketing isn't a trend—it's the future of brand success. Companies that embrace diversity now are future-proofing their brand for generations to come.
Take the another example of Nike's Dream Crazier campaign featuring Serena Williams.
By celebrating the strength and resilience of female athletes, Nike not only struck a chord with its core audience but also attracted a whole new generation of customers who resonated with the message of empowerment.
The result?
A surge in sales and and a lift in brand loyalty.
Building Authentic Connections
Marketing is no longer about the stuff that you make, but about the stories you tell.
Authenticity is the cornerstone of inclusive marketing. Today's consumers are savvy; they can spot a hollow attempt at diversity from a mile away.
So, how can brands foster genuine connections?
One approach is through storytelling. By sharing authentic narratives that highlight diverse voices, brands can create emotional bonds with their audience.
Dove's Real Beauty campaign is a shining example of this. By featuring women of all shapes, sizes, and colors, Dove not only challenged beauty stereotypes but also established itself as a champion of inclusivity.
(Did that come to your mind when I asked you earlier? Thought so.)
Breaking Down Barriers
Inclusive marketing isn't just about race or gender; it's about breaking down barriers of all kinds.
Accessibility, for instance, plays a crucial role in ensuring that everyone feels welcome.
Consider Microsoft's Xbox Adaptive Controller, designed specifically for gamers with limited mobility.
This innovative product not only opened up new avenues for gamers but also earned Microsoft widespread acclaim for its inclusive design approach, not to mention additional customer base completely untapped earlier, and royally ignored by competitors.
Let’s take another aspect of how inclusive marketing can help you tap into unexplored business opportunities and really speak to your audience - Acceptance.
I urge you to take a look at this entertaining, shocking and yet very relatable piece of powerful brand communication recently done by CoorDown. This brand film says it all, beautifully.
Handle Inclusive Marketing with care.
Missteps can lead to backlash and erode consumer trust.
Of course, navigating the landscape of inclusive marketing comes with its own set of challenges.
Remember the infamous Pepsi ad featuring Kendall Jenner?
The commercial, which attempted to co-opt the imagery of protest movements, was met with widespread criticism and outrage, rightfully so, for its tone-deaf approach.
Curious Case of Zomato’s Pure Veg Fleet
Closer home, in India, just this week, Zomato, a leading quick food delivery service app met with huge backlash when it announced its new big service initiative - Pure Veg Fleet.
On 19th March 2024, i.e. this Tuesday, Zomato founder and CEO Deepinder Goyal announced the launch of the Pure Veg mode delivery service. Zomato also introduced a Pure Veg Fleet for customers who follow a 100% vegetarian diet.
This was done keeping in mind the dietary preferences of its pure vegetarian customers, as per the company.
As soon as this announcement made to the news and social media, it faced a huge backlash from almost all quarters. Sure, there were some who welcomed the move for their own personal reasons. But largely, it was called out for its ignorance or even an unnecessary re-emphasis of centuries of problematic history of food and religion based cultural differences in the country.
It probably did a huge disservice to whatever minor progress has been made towards reducing hate between people. At least that’s what majority of the people in country thought and shared in their outpouring.
Result?
Zomato took cognizance of the matter, realized and acknowledged their mistake and lack of consumer research and thoughtfulness, and swiftly rolled their “big initiative” back within a day of it’s launch. That’s the only saving grace and it’s commendable.
This single and oh-so-very recent case which is still unfolding in media, is a valuable case study in understanding why inclusive marketing is important, and why doing it right is even more so in the modern marketing landscape.
Final Words
The future belongs to brands that embrace diversity not as an afterthought but as a core value.
It's a future where authenticity is the currency of connection, where every story, every voice, adds richness to the tapestry of marketing.
So, fellow marketers, let's amplify the voices that often go unheard, celebrate the diversity that makes our world vibrant & interesting, and forge authentic connections that stand the test of time.
Because in the world of marketing, as in life, true magic happens when we dare to be inclusive.
Until then,
Stay Woke, Stay Authentic❣️
In the next edition - Marketing to Gen Z
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