Subaru Case Study - The Arthur Page Society
Subaru Case Study - The Arthur Page Society
Subaru Case Study - The Arthur Page Society
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CASE STUDY<br />
ENTIRELY COMFORTABLE WITH ITS ORIENTATION:<br />
SUBARU’S SUCCESSFUL HISTORY OF GAY/LESBIAN INTEGRATED MARKETING COMMUNICATIONS<br />
ABSTRACT:<br />
01/05/2010<br />
This case study examines an integrated marketing communications success story:<br />
<strong>Subaru</strong>’s 14-year unwavering, authentic relationship with the gay and lesbian communities<br />
during which sales have doubled. <strong>Subaru</strong> reached out to the gay and lesbian consumers in 1995,<br />
beginning with corporate sponsorship of the Rainbow Card, followed by gay and lesbian-specific<br />
advertising campaigns and numerous strategic sponsorships. <strong>Subaru</strong>’s corporate communication<br />
efforts were and continue to be revolutionary considering U.S. public opinion of gays and<br />
lesbians at the time, the potential for consumer backlash, and the media landscape. <strong>Subaru</strong>’s<br />
activities are compared with outreach from the Ford Motor Co., including the latter’s<br />
mishandling of a boycott by the American Family Association (AFA).
<br />
TABLE OF CONTENTS<br />
Overview…………………………………………………………………………………………..4<br />
<strong>The</strong> U.S. Automotive Industry…………………………………………………………………….5<br />
Industry Marketing Expenditures…………………………………………………………6<br />
Brief History of Gay and Lesbian Marketing………….………………………………………….7<br />
Providing Context: Gay Marketing, Circa 1996…………………………………………..9<br />
IKEA, AT&T, and John Hancock Receive Conservative Backlash………….………….10<br />
Gay and Lesbian Automotive Ads…………………………….…………………………10<br />
<strong>Subaru</strong>…………...……………………………………………………………………………….11<br />
Company History…………………………………………………………………….......11<br />
Sales Figures……………...……………………………………….……………………..12<br />
2010 Product Lineup……………...…………………………………………….………..13<br />
Market Research Reveals Lesbian Niche Market………...…………………………..….13<br />
External Communication Efforts………………………………………………………...14<br />
Profile of a <strong>Subaru</strong> Owner: Brand Loyalty……………………………………………....14<br />
Brief History of <strong>Subaru</strong>’s Gay and Lesbian IMC Efforts……………….……….……....15<br />
Founding Sponsor of Rainbow<br />
Card……………………………………….…….15<br />
Progressive Advertising in Gay Media……………………………………….….15<br />
Sponsoring Gay and Lesbian Events……………………….……………………17<br />
TV Brand Integration: Team Eco-<strong>Subaru</strong> and <strong>The</strong> L Word……………..…….....17<br />
Partnering for AIDS Research…………………………………………………...18<br />
Founding Sponsor of Sirius OutQ and Logo…………………………….………18<br />
Gay Organizations Recognize <strong>Subaru</strong>’s Efforts……………………………………..…..19<br />
Consumer Feedback for Gay and Lesbian Outreach……………………………....…….20<br />
Increased Sales Due to Outreach……………………………………………………..….21<br />
Ford Motor Company……………………………………………………………………………21<br />
Ford’s Gay-Friendly History………………………………………………………….….21<br />
2
<br />
Gay Organizations Recognize Ford’s Efforts…………………………………………....22<br />
Jaguar, Volvo, and Land Rover Begin Advertising in Gay Media……………………...23<br />
AFA Boycotts Ford for “Homosexual Agenda”………………………………………...24<br />
Contrasting <strong>Subaru</strong> and Ford Motor Company…………………………………………………..26<br />
<strong>Subaru</strong>’s Current Dilemma: IMC Sustainability…………………………………………………27<br />
Appendix I……………………………………………………………………………………….28<br />
Appendix II………………………………………………………………………………………29<br />
Appendix III………………………………………………………………………………….…..30<br />
Appendix IV……………………………………….……………………………………………..31<br />
Appendix V………………………………………………………………………………………32<br />
Appendix VI……………………………………………………………………………………...34<br />
References……………………………………………………………………………………......35<br />
3
<br />
ENTIRELY COMFORTABLE WITH ITS ORIENTATION a :<br />
SUBARU’S SUCCESSFUL HISTORY OF GAY/LESBIAN INTEGRATED MARKETING COMMUNICATIONS<br />
Companies can’t just throw one ad at gay consumers and think they’re done.<br />
– Mike Wilke, Founder and former Executive Director of the Commercial Closet Association 1<br />
OVERVIEW<br />
In 1994, <strong>Subaru</strong>’s market research team discovered a core consumer base they had not<br />
previously identified: lesbians. Market research indicated that lesbian <strong>Subaru</strong> owners had a high<br />
socioeconomic status and an active lifestyle, complimenting <strong>Subaru</strong>’s four existing consumer<br />
bases, 2 and were four times as likely as their heterosexual counterparts to own a <strong>Subaru</strong>. 3 Armed<br />
with this knowledge, in 1995 <strong>Subaru</strong> embarked on a new integrated marketing communication<br />
strategy designed to reach lesbians and gay men. <strong>The</strong> first step was corporate sponsorship of the<br />
Rainbow Card, followed by gay and lesbian-specific advertising executions and numerous<br />
strategic sponsorships.<br />
Despite the myriad industries advertising in gay media circa 1996, relatively few<br />
companies overall were willing to risk potential consumer backlash, particularly traditionally<br />
conservative automotive companies. IKEA, AT&T, and John Hancock all received intense<br />
consumer backlash for their gay and lesbian marketing efforts and pulled their campaigns<br />
immediately, causing other companies to avoid the market altogether. To understand the risk<br />
involved in <strong>Subaru</strong>’s decision, a brief history of gay and lesbian marketing is included, with<br />
special emphasis placed on the automotive industry.<br />
During <strong>Subaru</strong>’s 14-year history with the gay and lesbian communities, the company has<br />
cultivated an unwavering, authentic relationship with key external stakeholders. While Ford<br />
Motor Company has also partnered with the gay and lesbian communities for over a decade, its<br />
track record is troubled. Ford was entangled in a 2005-06 battle over gay advertising with two<br />
opposing stakeholders: the conservative American Family Association (AFA) and numerous gay<br />
organizations. Despite its gay-friendly outreach, Ford handled the boycott in a secretive, indirect<br />
manner that led to many questions – from both stakeholder groups.<br />
To understand why Ford was the target of a boycott while <strong>Subaru</strong> was not, four factors<br />
should be considered: 1) sizes of the Japanese and American auto manufacturers; 2) sales; 3)<br />
target markets; and 4) ad spending.<br />
As competition increases and more automotive companies are developing relationships<br />
with gay and lesbian stakeholders, <strong>Subaru</strong> will need to retain its competitive advantage using<br />
corporate communication tactics. In the highly competitive automotive industry, it is necessary<br />
for <strong>Subaru</strong> to prove that its IMC strategy is sustainable into the next decade as well. Furthermore,<br />
<br />
a This phrase is a tagline used in a 1998 <strong>Subaru</strong> print advertisement. See Appendix I. <br />
4
<strong>Subaru</strong> needs to grow its consumer base by pursuing other niche markets without damaging the<br />
relationships it has cultivated thus far.<br />
THE U.S. AUTOMOTIVE INDUSTRY<br />
According to JD Power and Associates, there are over 40 automotive makers selling<br />
vehicles in the United States today. 4 <strong>The</strong> United States, the largest market for light vehicles in<br />
the world, saw sales of over 13.2 million vehicles in 2008. One year prior, sales exceeded 16.1<br />
million vehicles. 5 See Table I for a breakdown of 2008 U.S. sales by company:<br />
<br />
5 <br />
Source: Ward’s Automotive 6<br />
<strong>The</strong> automotive industry, one of the largest manufacturing industries in the United States<br />
today, has been in turmoil for the past few years due to factors such as the economic recession,<br />
increased oil prices, and poor management decisions. By February 2009, U.S. automotive sales<br />
were the lowest they had been in the past 25 years. 7 American-owned General Motors and<br />
Chrysler received a combined $17.4 billion bailout from the U.S. government in December<br />
2008. 8 A few months later, Chrysler filed for Chapter 11 bankruptcy on April 30, 2009; 9 General<br />
Motors followed suit on June 1, 2009. 10<br />
In 2008, Japanese auto manufacturers led U.S. sales, comprising 47.5% of the market.<br />
American manufacturers comprised 34.8% of total U.S. sales, followed by other foreign imports<br />
(primarily European) at 17.7%. 11<br />
To stimulate sales, the U.S. government initiated the car allowance rebate system<br />
(CARS) on July 1, 2009, 12 commonly referred to as “cash for clunkers.” Under the program, in<br />
exchange for trading in a drivable vehicle 25 years old or newer that received 18 miles per gallon<br />
or fewer, consumers could receive a credit of between $3,500-$4,500 on the purchase of a new,<br />
more fuel efficient vehicle. 13 <strong>The</strong> program lasted until August 25, 2009; 700,000 vehicles were
traded in for government rebates totaling $2.9 billion. 14 Japanese manufacturers accounted for 7<br />
of the top 10 models purchased under the stimulus program. 15<br />
INDUSTRY MARKETING EXPENDITURES<br />
Automotive companies typically devote approximately 10% of their total sales revenues<br />
to marketing efforts, of which advertising comprises just one portion. However, due to the<br />
economic recession and rising fuel costs, both of which have significantly reduced new auto<br />
sales in the latter part of the decade, automotive companies have spent an average of 14% of<br />
their total sales revenues on marketing efforts. 16<br />
<strong>The</strong> automotive industry is the leader in total ad spending, 17 allocating nearly $10.1<br />
billion to advertising in 2008. Despite a decrease of 15.5% over 2007’s expenditures, the<br />
industry continues to lead ad spending even in its current economic state. 18 Ad spending for the<br />
top 10 product categories is shown in Chart I:<br />
<br />
Chart I:<br />
2007-08 Top 10 Advertiser’s, By Product Category<br />
Product Category<br />
6 <br />
2008<br />
(millions)<br />
2007<br />
(millions)<br />
Automotive (Factory & Dealer Assoc.) $10,016.1 $11,854.4<br />
Pharmaceuticals $4,344.1 $5,325.3<br />
Local Auto Dealerships $4,198.3 $4,604.6<br />
Quick Service Restaurants $4,080.5 $3,932.8<br />
Department Stores $3,809.9 $3,994.2<br />
Wireless Telephone Services $3,431.4 $3,731.6<br />
Motion Pictures $3,322.1 $3,750.6<br />
Direct Response Products $2,576.9 $2,358.9<br />
Restaurants $1,618.6 $1,619.4<br />
Furniture Stores $1,580.8 $1,636.2<br />
Total: Top 10 Product Categories $39,060.0 $42,808.1<br />
Source: <strong>The</strong> Nielsen Company 19<br />
Five automotive companies made it onto Nielsen’s 2008 list of top advertisers, across all<br />
industries – GM, Toyota, Ford, Honda, and Chrysler. See Chart II for a complete breakdown of<br />
top 10 companies’ 2007-08 ad spending, in millions:
<br />
Chart II:<br />
2007-08 Top 10 Advertiser’s, By Parent Company<br />
Parent Company<br />
7 <br />
2008<br />
(millions)<br />
2007<br />
(millions)<br />
Proctor & Gamble Co. $2,848.2 $3,531.1<br />
General Motors Corp. $2,117.7 $2,488.6<br />
AT&T Inc. $1,662.7 $1,792.1<br />
Verizon Communications Inc. $1,614.8 $1,636.3<br />
Toyota Motor Corp. $1,555.0 $1,665.0<br />
Ford Motor Co. $1,416.1 $1,981.6<br />
Johnson & Johnson $1,211.0 $1,280.1<br />
Time Warner Inc. $1,077.4 $1,411.4<br />
Honda Motor Co. $1,016.6 $1,045.9<br />
Cerberus Capital Management $1,002.6 $1,456.7<br />
Average Ad Spending $1,552.2 $1,828.8<br />
Source: <strong>The</strong> Nielsen Company 20<br />
BRIEF HISTORY OF GAY AND LESBIAN MARKETING<br />
To reach niche markets efficiently and cost-effectively, marketers run ads in niche media<br />
and/or sponsor events unique to that market. When companies began reaching out to gay men<br />
and lesbians in the 1980s, they ran ads in gay print media and sponsored gay/lesbian pride<br />
events. 21 Later, “gay marketing” expanded into mainstream media by including gay and/or<br />
lesbian spokespersons in ads, b without necessarily targeting the niche markets. 22 As will be<br />
discussed later in the study, while <strong>Subaru</strong> has largely tailored its efforts to gay and lesbian media,<br />
<strong>Subaru</strong> has crossed over into mainstream media, most notably by using a lesbian spokeswoman:<br />
tennis champion Martina Navratilova. 23<br />
Financial data about ads featured in gay and lesbian media was first collected in 1994,<br />
through the joint efforts of New York-based multicultural advertising agency Prime Access and<br />
New Jersey-based media placement firm Rivendell Media, Inc. Titled <strong>The</strong> Gay Press Report, the<br />
firms jointly publish an annual “state of the industry” report with breakdowns of ad spending in<br />
gay media.<br />
As illustrated in Table II, ad spending more than tripled between 1994 and 2007 from $53<br />
million to $182 million, respectively. As with mainstream media, gay and lesbian media felt the<br />
financial impact of September 11, 2001, as companies poured less money into advertising, and<br />
again from 2007 to the present, as the U.S. battles an economic recession. Prior to the recession,<br />
2006 saw record-breaking revenues of $223.3 million, no doubt impacted by MTV Networks’<br />
introduction of Logo, a cable television channel that provided marketers with direct access to<br />
<br />
b An example of this type of mainstream advertising is the 2009 CoverGirl Simply Ageless campaign; Ellen, an out<br />
lesbian, is featured in the campaign, but lesbians are not the primary market.<br />
millions of gay men and lesbians. See Table II for a historical overview of ad spending in gay<br />
and lesbian media:<br />
<br />
8 <br />
Source: Prime Access, Inc. 24<br />
Table III illustrates the percentage change in ad revenue between each year. 1997 and<br />
2000 both saw large increases, upwards of 36%, illustrating the pre-9/11 boom:<br />
Source: Prime Access, Inc. 25
PROVIDING CONTEXT: GAY MARKETING, CIRCA 1996<br />
Around 1996, when <strong>Subaru</strong> began advertising to the gay and lesbian communities,<br />
companies in several industries were targeting gay and lesbian consumers, namely:<br />
<br />
• Alcohol:<br />
• Financial:<br />
• Furniture:<br />
o Absolut Vodka (1987) 26<br />
o Miller Brewing (1987) 27<br />
o Tuaca (1995) 28<br />
o Bud Light (1996) 29<br />
o Sauza Tequila (1998) 30<br />
o Beefeater Gin (1998) 31<br />
o Johnnie Walker Red Label Scotch (1999) 32<br />
o Wells Fargo (1980s) 33<br />
o AMEX (1992) 34<br />
o Aetna (1998) 35<br />
o Chase Manhattan Corporation (1998) 36<br />
o Citibank (1998) 37<br />
o Merrill Lynch & Company (1998) 38<br />
o IKEA (1994) 39<br />
• Telecommunications:<br />
• Apparel:<br />
• Airline:<br />
o AT&T (1994) 40<br />
o Diesel jeans (1995) 41<br />
o 2(x)ist underwear (1996) 42<br />
o Levi’s (1999) 43<br />
o Virgin Atlantic (1995) 44<br />
9
<br />
• Tobacco:<br />
• Computer:<br />
o United Airlines (1997) 45<br />
o R.J. Reynolds Tobacco Co. (1996) 46<br />
o Philip Morris (1999) 47<br />
o IBM (1997) 48<br />
• Pharmaceuticals:<br />
• Insurance:<br />
o Merck (1997) 49<br />
o SmithKline Beecham and Abbott Laboratories (1997) 50<br />
o Bristol-Myers Squibb Co. (1997) 51<br />
o <strong>The</strong> Hartford (1998) 52<br />
o John Hancock (2000) 53<br />
Despite the wide array of industries advertising in gay media, relatively few companies<br />
overall were willing to risk potential consumer backlash, particularly automotive companies.<br />
Harry Taylor, publisher of leading gay magazine Out, explained that automotive companies<br />
“politely declined” Out’s request for ads in 1996. 54<br />
IKEA, AT&T, AND JOHN HANCOCK RECEIVE CONSERVATIVE BACKLASH<br />
Marketers may have been reluctant to advertise in gay media based on the backlash<br />
experienced by IKEA, AT&T, and John Hancock. After running a mainstream television<br />
commercial featuring a gay couple in 1994, IKEA received a bomb threat at one of its stores.<br />
Kathy Delaney, President/Chief Creative Officer of Deutsch (IKEA’s ad agency) explained, “We<br />
knew it was going to be a polarizing decision but we thought it was the right one.” IKEA ceased<br />
using same-sex couples in its television advertising until 2006 when the company debuted a<br />
second commercial featuring a gay couple, this time with a child in tow. 55<br />
Also in 1994, AT&T sent direct mail pieces with tailored messaging to gay and lesbian<br />
consumers for the first time. Conservative organizations learned of the telecom company’s<br />
marketing activities and protested. AT&T pulled the campaign after mailing one piece of<br />
collateral, 56 steering clear of the market until 1999. 57<br />
10
After running an ad during a 1994 episode of Roseanne that featured a kiss between<br />
Mariel Hemmingway and Roseanne Barr, Mazda received stern disapproval from conservative<br />
viewers. 58 Fearing a repeat of earlier events, Mazda – owned by the Ford Motor Company –<br />
pulled advertising from Ellen DeGeneres’ 1997 “coming out” episode on the sitcom Ellen. Linda<br />
Colleran, Senior VP/Media Director at Foote, Cone & Belding, Mazda’s agency of record at the<br />
time, explained, “It’s not the Ellen character - I like to see TV reflect reality – it’s all the press<br />
around it.” 59 Following Mazda’s precedent, GM and Chrysler also pulled ads scheduled to run<br />
during the now famous Ellen episode. Before pulling out, Chrysler created a special toll-free<br />
number in anticipation of intense viewer backlash. 60<br />
In 2000, insurance company John Hancock featured two lesbian mothers in a TV ad and<br />
referenced the couple’s newly adopted baby. After its initial run, John Hancock edited future<br />
versions of the commercial to appease conservative protesters. Refuting the fact that the<br />
company had given into protestors, Stephen Burgay, VP of Advertising and Corporate<br />
Communications at John Hancock argued, “We don’t target a segment. We speak to a need, an<br />
emotion, a financial uncertainty or opportunity.” 61<br />
GAY AND LESBIAN AUTOMOTIVE ADS<br />
In November 1994, Saab, a Swedish luxury car manufacturer owned by GM, made<br />
history as the first automotive company to run an ad in gay and lesbian media. <strong>The</strong> ad was<br />
featured in Genre magazine 62 and then Out magazine the following month. 63<br />
Six months later, Saturn – also owned by GM – broke into gay and lesbian media with an<br />
advertisement in Out. 64 But after just one ad, Saturn ceased advertising in gay and lesbian media<br />
for nearly 4 years. 65 <strong>The</strong> impact of Saturn’s one ad was phenomenal: gay men and lesbians<br />
selected Saturn as their automobile brand of choice in a Simmons Market Research Bureau study<br />
conducted shortly after the press run. 66<br />
In March 1996, <strong>Subaru</strong> followed Saab and Saturn’s lead when it began advertising in gay<br />
newspapers. 67 Despite not being the first automotive company to target gays and lesbians,<br />
<strong>Subaru</strong> holds the record for the longest consistent history of gay and lesbian advertising. 68<br />
Furthermore, <strong>Subaru</strong> was first in the automotive industry to design gay- and lesbian-specific ad<br />
creative, rather than running the same ads featured in mainstream publications. 69 <strong>Subaru</strong>’s efforts<br />
bucked the trend of automotive ads at the time that were arguably formulaic and conservative,<br />
consisting of one-dimensional depictions of “winding roads, dream sequences, and red cars.” 70<br />
Volkswagen stepped in to fill the void left by Mazda, GM, and Chrysler during Ellen,<br />
airing its famous “Da Da Da” spot in 1997. Although VW spokesperson Tony Fouldapour<br />
declined to admit gay undertones by stating “a lot of our commercials can be seen differently by<br />
people…we’re saying there’s no real (straight) story behind it either,” members of the gay<br />
community interpreted the commercial as a subtle inclusion of gay imagery. 71 <strong>The</strong> commercial<br />
was the first of what would later become known as “gay vague” advertising, a term coined by<br />
Mike Wilke, a former writer for Advertising Age and founder of the non-profit Commercial<br />
Closet Association. Gay vague refers to ads in which the actors/models’ sexuality can be<br />
interpreted differently depending upon the viewer. 72<br />
<br />
11
German-owned BMW, despite awareness that gay men accounted for a portion of their<br />
sales, declined to advertise to the community. As KarenVonder Meulen, former Sports and<br />
Cultural Communications Manager for BMW, stated in 2001, “We don’t do any specific<br />
targeting to the gay community. <strong>The</strong> community already purchases our cars without having to<br />
target them individually.” 73<br />
In 2004, GM’s Cadillac began advertising in <strong>The</strong> Advocate and Out. 74 Following<br />
Cadillac’s lead, Audi created an ad in 2004 featuring lesbian songstress k.d. lang, under the<br />
tagline “Never follow.” 75<br />
<br />
SUBARU<br />
After providing an overview of the U.S. automotive industry and a brief history of gay<br />
and lesbian marketing, the focus now shifts to <strong>Subaru</strong>.<br />
COMPANY HISTORY<br />
Fuji Heavy Industries, Ltd. (FHI), is the parent company of <strong>Subaru</strong>. FHI’s roots extend<br />
back to 1917 with the founding of Nakajima Aircraft Co., Ltd., a manufacturer and distributor of<br />
aerospace equipment. 76 Nakajima Aircraft Co. was renamed Fuji Sangyo Co., Ltd. in 1945, and<br />
eight years later, on July 15, 1953, FHI was created as a result of a six-way merger. 77<br />
Headquartered in Tokyo, Japan, and led by President Ikuo Mori, today FHI manufactures<br />
equipment for four business units: Aerospace, Automotive, Eco-Technologies, and Industrial. 78<br />
Inspired by a “cluster of stars in the Taurus constellation” named <strong>Subaru</strong>, FHI’s first<br />
president, Kenji Kita, decided to name the newly-created automotive business <strong>Subaru</strong> in 1958.<br />
<strong>Subaru</strong> of Japan was founded on one automobile model: the <strong>Subaru</strong> 360. Employing techniques<br />
used in aerospace engineering, <strong>Subaru</strong> released a second model in 1966 – the <strong>Subaru</strong> 1000 – that<br />
featured a “horizontally opposed engine.” <strong>The</strong> <strong>Subaru</strong> 1000 was the first mass-produced<br />
automobile in the world to feature front-wheel-drive; it was soon followed by the 1972<br />
introduction of all-wheel-drive (AWD), a feature that would become standard on all <strong>Subaru</strong><br />
vehicles. 79<br />
In 1968, <strong>Subaru</strong> of America (SOA) was founded as the U.S. automotive extension of<br />
FHI. 80 In March 1987, <strong>Subaru</strong> partnered with Isuzu Motors Limited to create <strong>Subaru</strong>-Isuzu<br />
Automotive (SIA), a joint venture based in Lafayette, IN. <strong>The</strong> joint venture dissolved in January<br />
2003 as <strong>Subaru</strong>-Isuzu Automotive transitioned to <strong>Subaru</strong> of Indiana Automotive. 81 In October<br />
2005, Toyota Motor Corporation announced its purchase of an 8.7% stake in FHI from General<br />
Motors. 82 GM owned 20.1% of <strong>Subaru</strong>’s parent company at the time, which is had purchased in<br />
1999. 83 In 2005, GM sold its remaining shares back to FHI. 84 In 2007, Toyota started building<br />
Camrys at the SIA plant. 85<br />
Currently headquartered in Cherry Hill, NJ, the private subsidiary of FHI has over 600<br />
dealerships nationwide and two distributors. 86 In addition to the NJ headquarters, <strong>Subaru</strong> has five<br />
regional offices in Atlanta, GA, Denver, CO, Westhampton, NJ, Itasca, IL, and Portland, OR. 87<br />
12
Yoshio Hasunuma is the Chairman, President and CEO of <strong>Subaru</strong> of America, appointed on<br />
April 16, 2009. 88<br />
SALES FIGURES<br />
Based on annual report data, <strong>Subaru</strong>’s sales increased steadily between 1996 and 2002.<br />
Between 2002 and 2009, sales have remained relatively constant, hovering around 200,000<br />
units. 89 Refer to Table IV for a 16-year history of sales figures:<br />
<br />
13 <br />
Source: Fuji Heavy Industries, Ltd. 90<br />
During the first two quarters of 2009, <strong>Subaru</strong> sales increased by 4% while industry-wide<br />
sales nose-dived 32%. 91 <strong>Subaru</strong> saw a 41% year-to-date sales increase in October 2009 as<br />
compared to October 2008. 92 In August 2009, <strong>Subaru</strong> enjoyed the best sales month in the history<br />
of the company by selling 28,683 automobiles, marking a 52% increase over August 2008<br />
sales. 93 According to Tim Mahoney, CMO and Senior VP of <strong>Subaru</strong>, “One of the reasons we are<br />
doing relatively well in this dismal auto market is that we know who we are and we speak of<br />
things that are relevant to our customers.” 94<br />
2010 PRODUCT LINEUP<br />
<strong>Subaru</strong> offers six models in its 2010 product lineup, including the Impreza, WRX,<br />
Legacy, Outback, Forester, and Tribeca, consisting of sedans, wagons, and cross-over vehicles.<br />
Ranging in list price from $17,000-$37,000 with a fuel economy of 21-30 miles per gallon and<br />
seating for 5-7 passengers, nearly all models are available in either manual or auto transmission,<br />
with the exception of the Tribeca (auto only) and the Impreza WRX (manual only). 95<br />
<strong>Subaru</strong> is a proverbial small fish in the large pond that is the U.S. automotive industry,<br />
currently representing just 2.2% of U.S. automotive sales. 96 To further illustrate this point, in
2007 Honda sold more CR-Vs alone (219,160 units) than all <strong>Subaru</strong>’s models combined<br />
(190,276). 97<br />
MARKET RESEARCH REVEALS LESBIAN NICHE MARKET<br />
By the early-1990s, <strong>Subaru</strong> had established four core consumer bases – healthcare<br />
professionals, educators, IT professionals, and outdoor enthusiasts. Through market research<br />
findings in 1994, <strong>Subaru</strong> discovered a fifth core base: lesbians. 98 As Tim Bennett, <strong>Subaru</strong>’s<br />
Director of Marketing at the time stated, “Anecdotally, we found that there were women heads of<br />
households that purchased our cars, and … in most cases they identified as lesbian.” 99 Market<br />
research indicated that lesbian <strong>Subaru</strong> owners had a high socioeconomic status and an active<br />
lifestyle, complimenting <strong>Subaru</strong>’s four existing consumer bases, 100 and were four times as likely<br />
as their heterosexual counterparts to own a <strong>Subaru</strong>. 101 <strong>Subaru</strong> did not disclose how much it spent<br />
on the proprietary research. 102<br />
As Rick Crosson, <strong>Subaru</strong>’s VP of Marketing at the time asserted, “<strong>The</strong> gay and lesbian<br />
community had already found us – particularly the lesbian community. <strong>The</strong>y had already<br />
selected us as a car that they used, that fit their lifestyle.” 103 But instead of sweeping the findings<br />
under the rug, <strong>Subaru</strong> decided to target both lesbians and gay men, a move that was rare in 1995<br />
regardless of the industry.<br />
An unnamed <strong>Subaru</strong> spokesperson revealed in 1996 that “three years ago we were trying<br />
to be a competitor in the mainstream and that...wasn’t working.” 104 At the time, <strong>Subaru</strong>’s sales<br />
comprised less than 2% of all U.S. automobile sales, in an industry dominated by the Big Three<br />
(Ford, GM, and Chrysler) who were responsible for 75% of all U.S. sales. 105 John Nash, Creative<br />
Director of Moon City Productions, commented on the lesbian discovery: “Lesbians were<br />
fiercely loyal customers of <strong>Subaru</strong>, and their word of mouth was like gold.” 106<br />
EXTERNAL COMMUNICATION EFFORTS<br />
Carmichael Lynch is currently handling <strong>Subaru</strong>’s advertising, media planning, and media<br />
buying. 107 <strong>Subaru</strong> had previously partnered with DDB Worldwide but decided to change shops<br />
on October 17, 2007, based on CMO Mahoney’s previous success in working with Carmichael<br />
Lynch while serving as Porsche’s VP of Marketing. For gay and lesbian-specific marketing<br />
efforts, <strong>Subaru</strong> had used Mulryan-Nash until the shop closed in 1999; 108 as of 2000, <strong>Subaru</strong> has<br />
employed Moon City Productions, a New York-based agency specializing in gay and lesbian<br />
creative. 109 Although <strong>Subaru</strong> has typically used Moon City Productions to market its products to<br />
the gay and lesbian communities, in 2007 the company used the agency for a 2008 Impreza<br />
WRX general market campaign. 110<br />
Most public relations efforts are handled in house, led by CMO Tim Mahoney and<br />
Michael McHale, Director of Corporate Communications. In referencing <strong>Subaru</strong>’s relationship<br />
with the automotive media, McHale stated in 2007 that <strong>Subaru</strong> was “well-known and liked.” 111<br />
<strong>Subaru</strong>’s total ad spending has risen consistently over the past 17 years. Since <strong>Subaru</strong> is a<br />
private company that does not publicly release its ad spending figures, a snapshot of ad spending<br />
gathered from industry articles is shown in Table V:<br />
<br />
14
PROFILE OF A SUBARU OWNER: BRAND LOYALTY<br />
<br />
15 <br />
Source: AdAge 112<br />
Mickey Kaus, automotive expert and author of automotive columns on Slate.com,<br />
compared <strong>Subaru</strong> owners to Volvo owners in 2005, stating that <strong>Subaru</strong> represents what Volvo<br />
used to be – a trusted, yet financially-obtainable vehicle for consumers who value performance<br />
and longevity. 113 In 2008, John Colasanti, CEO of Carmichael Lynch, confirmed Kaus’ claims<br />
and discussed the brand loyalty of <strong>Subaru</strong> owners in the New York Times. Through extensive<br />
market research, <strong>Subaru</strong>’s agency or record discovered that <strong>Subaru</strong> owners tend to drive their<br />
vehicles for longer periods of time, as compared to other car brands. Colasanti added, “<strong>The</strong>y see<br />
their car as an enabler, an accomplice on their journey of life, and the more experiences you<br />
have, the deeper the relationship you have with the vehicle.” 114<br />
Wes Brown, a marketing analyst who has worked with <strong>Subaru</strong> for over a decade, explains<br />
that current sales increases are not a fluke. Based on findings from earlier research in Portland,<br />
OR, <strong>Subaru</strong> customers are more likely to pay for their vehicles in cash and complete their<br />
paperwork ahead of time. 115 In fact, 40% of <strong>Subaru</strong> owners pay cash for their vehicles, doubling<br />
the industry average of 20%. 116 As Mahoney stated, “We know who we are, and we do it<br />
consistently…the landscape’s littered with companies that don’t know who they are or don’t<br />
execute against that brand promise.” 117 Mahoney continued, “We spent a lot of time defining<br />
who our customers are and having a relationship with them.” 118 Brandweek reporter Becky<br />
Ebenkamp remarked that <strong>Subaru</strong>’s brand loyal and financially savvy customers are part of the<br />
“New Economic Order (NEO),” consumers who value quality over low prices alone and<br />
continue to spend during recessions. 119<br />
BRIEF HISTORY OF SUBARU’S GAY AND LESBIAN IMC EFFORTS
As a result of the market research findings, <strong>Subaru</strong> embarked on a new marketing path in<br />
1995 to reach lesbians and gay men, beginning with corporate sponsorship of the Rainbow Card,<br />
followed by gay and lesbian advertising and numerous strategic sponsorships. 120<br />
FOUNDING SPONSOR OF THE RAINBOW CARD<br />
In 1995, <strong>Subaru</strong> partnered with British Airways to co-sponsor Martina Navratilova’s<br />
Rainbow Card, a credit card that donates a portion of every purchase to gay and lesbian charities<br />
and non-profits through <strong>The</strong> Rainbow Endowment. In its first year, the Rainbow Card raised<br />
$50,000 for gay and lesbian causes. After five years, the card had raised over $1 million. 121 In<br />
the past, <strong>Subaru</strong> gave discounts of up to $3,000 on automobile purchases to Rainbow Card<br />
members. 122<br />
PROGRESSIVE ADVERTISING IN GAY MEDIA<br />
Following the Rainbow Card sponsorship, <strong>Subaru</strong> became the first Japanese automaker to<br />
advertise in gay media in March 1996 when it began running newspaper ads. 123 Shortly after,<br />
<strong>Subaru</strong> placed ads in <strong>The</strong> Advocate, the leading gay and lesbian magazine, featuring both<br />
imagery of gay men and lesbians 124 and language authentic to the communities; rather than<br />
running the same ads previously placed in mainstream publications, <strong>Subaru</strong> developed unique<br />
creative executions early on. 125 When the media asked <strong>Subaru</strong> to discuss its gay and lesbian<br />
advertising campaign, <strong>Subaru</strong> refused to do so, stating that the campaign was a “regional test”<br />
and that it did not want to reveal proprietary information. 126<br />
<strong>Subaru</strong>’s ads feature unconventional taglines coded for gay and lesbian interpretation,<br />
such as “Entirely comfortable with its orientation,” “It’s not a choice. It’s the way we’re built,”<br />
and “Get out and stay out.” 127 Early copy testing showed messaging that used non-descript male<br />
and female models did not resonate with gay and lesbian consumers. Subsequently, <strong>Subaru</strong><br />
shifted gears to include coded imagery. Although the company was initially hesitant to run the<br />
coded ads, by 2002, anxiety had waned based on the campaigns’ successes. Bennett first<br />
remarked: “If we were going to target-market, we decided to go after a niche that had already<br />
found us,” 128 closely followed by “Every company markets to gays and lesbians, we just admit<br />
it.” 129 <strong>Subaru</strong> is one of the few companies, automotive or otherwise, that has specifically targeted<br />
lesbians in its advertising messaging rather than simply gay men. 130 An example of such an ad is<br />
the 1999 print ad featuring the tagline “Different Drivers. Different Roads. One Car.,” included<br />
in Appendix II, that featured three <strong>Subaru</strong> vehicles with the following attributes:<br />
<br />
1. Car #1 shows two men’s bikes on the roof rack and a rainbow sticker on the bumper;<br />
the rainbow is a symbol of the gay and lesbian community.<br />
• License plate: CAMPOUT – a play on the words “camp” and “out,” where out<br />
refers to living life openly as a gay/lesbian individual<br />
2. Car #2 features a kayak on the roof rack but is relatively non-descript, except for the<br />
license plate.<br />
16
<br />
• License plate: XENA LVR – a reference to the popularity of the television<br />
program Xena: Warrior Princess within the lesbian community at the time<br />
3. Car #3 has a blue Human Rights Campaign (HRC) equality sticker on the bumper.<br />
• License plate: P TOWNIE – stands for Provincetown, a popular gay and lesbian<br />
vacation destination in Massachusetts<br />
<strong>The</strong> ad copy referenced <strong>Subaru</strong>’s support of the gay and lesbian communities, specifically the<br />
HRC and Rainbow Endowment sponsorships. <strong>The</strong> campaign was featured in gay print media as<br />
well as on buses and billboards in the gay neighborhoods of select U.S. cities, 131 such as<br />
Washington DC’s Dupont Circle. 132 Echoing earlier sentiment of <strong>Subaru</strong>’s covert gay and<br />
lesbian marketing efforts, in response to the coded imagery, Bennett articulated, “It’s sort of like<br />
our little secret. It’s clever and not offensive, and if you’re in-the-know, you chuckle.” 133<br />
During <strong>Subaru</strong>’s “Get out and stay out” campaign, assumingly heterosexual online<br />
message board posters offered their opinions about being associated with an automotive<br />
company that marketed to gays and lesbians: “<strong>The</strong>y can call my car gay, but they will be looking<br />
pretty dumb when my ‘gay’ car blows their doors off,” and “Got mad for a while after that show<br />
aired. Made me very pissed for some dumb-ass to call my car gay.” Bennett responded by noting<br />
the overall success of the campaign and the fact that feedback of this sort had had a minimal<br />
impact, at best. 134 Nearly one year after the incident, Bennett elaborated on negativity received<br />
from consumers and non-consumers alike: “Look, we know that our owner base and our<br />
consumers are extremely well educated, and they celebrate diversity. A person who would be<br />
offended by our advertising probably would not have bought our car anyway.” 135<br />
Acknowledging the fact that many gay and lesbian couples have children, <strong>Subaru</strong> started<br />
advertising in a new gay and lesbian-targeted magazine called Alternative Family in 2000. 136<br />
During this time, <strong>Subaru</strong> extended same-sex domestic partnership benefits to its employees. 137 In<br />
2001, <strong>Subaru</strong> crossed over into mainstream publications by running ads in Movieline geared<br />
toward gay and lesbian consumers. Similarly, in the December 2003 issue of Vanity Fair, which<br />
profiled gay and lesbian television entertainers, <strong>Subaru</strong> strategically targeted gay and lesbian<br />
consumers once again using mainstream media. 138 In referencing the company’s 2003<br />
partnership with Lance Armstrong, Bennett characterized <strong>Subaru</strong>’s advertiser attributes as<br />
“freedom, adventure, free-thinking, independent spirit.” 139 Yet, the attributes clearly extend<br />
beyond <strong>Subaru</strong>’s mainstream marketing efforts.<br />
When other automotive companies began advertising in gay media in the early 2000s,<br />
particularly Jaguar, Land Rover, and Volvo, <strong>Subaru</strong> was surprised the competition had waited so<br />
long to do so. Offering insight to his competitors, Bennett warned, “You can’t be a poser or<br />
pretender. This is a very sophisticated, intelligent market - not all that different from other niche<br />
markets we market to - so we probably have a leg up on the competition in that regard.” 140<br />
SPONSORING GAY AND LESBIAN EVENTS<br />
In conjunction with its advertising efforts, <strong>Subaru</strong> became an early sponsor of gay pride<br />
events at both the dealership and corporate levels, beginning with the donation of a <strong>Subaru</strong> for<br />
17
the Denver Gay Pride Parade in 1996. 141 In 1999, <strong>Subaru</strong> sponsored a booth at Philadelphia’s<br />
PrideFest, 142 and two years later, <strong>Subaru</strong> corporately-sponsored the Los Angeles Gay Pride<br />
Festival. 143 <strong>Subaru</strong> sponsored Atlanta’s pride events in 2006 144 and Milwaukee’s events in<br />
2009. 145<br />
In 1999, <strong>Subaru</strong> sponsored Out Takes Dallas, the city’s annual gay and lesbian film<br />
festival. 146 Likewise, Austin, TX, Provincetown, MA, Seattle, WA, and Washington DC’s film<br />
festivals were sponsored by <strong>Subaru</strong>, 147 as was the 2003 Chicago Lesbian and Gay Film<br />
Festival 148 .<br />
Appealing to the outdoor lifestyles of its gay and lesbian consumers, <strong>Subaru</strong> sponsored<br />
both GLAAD’S Ski Week in Telluride, CO 149 and <strong>The</strong> Advocate Golf Classic in 2004. 150<br />
TV BRAND INTEGRATION: TEAM ECO-SUBARU AND THE L WORD<br />
In 2002, <strong>Subaru</strong> signed on as the sole corporate sponsor for Eco-Challenge Fiji, a<br />
competition-centric reality show on cable channel USA. <strong>The</strong> company sponsored Team Eco-<br />
<strong>Subaru</strong>, 151 a team composed entirely of gay and lesbian athletes. 152<br />
<strong>The</strong> L Word, a premium cable television drama that ran on Showtime between 2004 and<br />
2009, featured a prominent <strong>Subaru</strong> product placement in multiple episodes. In a case of art<br />
imitating life, Season 1, Episode 8 features a storyline in which a lesbian professional tennis<br />
player is offered the opportunity to serve as the spokeswoman for a new <strong>Subaru</strong> campaign,<br />
playfully winking at Martina Navratilova’s real-life 2000 celebrity sponsorship. 153 In a later<br />
episode, <strong>Subaru</strong> reappeared as the corporate sponsor of the “Pink Ride,” a mock breast cancer<br />
fundraising bicycle ride. 154 Additionally, a <strong>Subaru</strong> vehicle appeared in multiple episodes<br />
throughout the show’s six season run.<br />
Queer as Folk, Showtime’s earlier gay-themed series, also incorporated a <strong>Subaru</strong> tie-in.<br />
To promote sales of the Season 1 DVD set, <strong>Subaru</strong> ran a sweepstakes offering a vehicle as the<br />
grand prize. 155<br />
Further extending their support of gay television, <strong>Subaru</strong> executives served on <strong>The</strong> Ad<br />
Club’s November 2005 panel “<strong>The</strong> Queer Eye and What <strong>The</strong>y Buy: Advertising to the Gay<br />
Market.” Few companies could rival <strong>Subaru</strong>’s expertise, given the company’s 10 year history of<br />
marketing to the communities by that point. 156<br />
PARTNERING FOR AIDS RESEARCH<br />
Although the “Pink Ride” was a fictitious event created for <strong>The</strong> L Word, <strong>Subaru</strong> began<br />
sponsoring the AIDS/LifeCycle in 2004. <strong>The</strong> 545-mile bike ride from San Francisco to Los<br />
Angeles brings attention to the disease and raises money for additional research. 157 Additionally,<br />
<strong>Subaru</strong> hosts Dining Out for Life, an annual AIDS research fundraising event taking place in<br />
over 70 U.S. cities. 158<br />
<br />
18
FOUNDING SPONSOR OF SIRIUS OUTQ AND LOGO<br />
Keeping with the standard set by the Rainbow Card, <strong>Subaru</strong> signed on as a founding<br />
sponsor of Sirius Satellite Radio’s OutQ in 2004, a channel devoted to gay and lesbian content.<br />
<strong>The</strong> partnership included traditional advertising messages, event sponsorship, and on-air<br />
endorsements by host John McMullen, who was given a 2005 <strong>Subaru</strong> Outback XT. Referencing<br />
Howard Stern’s previous partnership with Snapple in stating that radio endorsements are not<br />
new, McMullen mentioned his initial hesitation regarding product endorsement, for the sake of<br />
authenticity: “I took the time to actually go out there and rent one so I didn’t get us into a deal I<br />
didn’t believe in.” 159<br />
One year after signing on as the founding sponsor of Sirius’ OutQ, <strong>Subaru</strong> joined Orbitz<br />
and Paramount Pictures as one of three founding sponsors of MTV Network’s new cable<br />
channel, Logo. 160 Nash, Creative Director of Moon City Productions, offered insight into the<br />
sponsorship by stating that, “Category clutter is something this brand avoids at all costs. Logo<br />
presented a way to recapture the lead we had 10 years ago.” 161<br />
Initially, <strong>Subaru</strong> ran mainstream ads on Logo that were created by then-agency DDB<br />
Worldwide. 162 But true to form, the company introduced three brand new gay- and lesbianspecific<br />
commercials in October 2005, a few months after Logo’s launch, along with<br />
corresponding print ads in <strong>The</strong> Advocate and Out and an online contest. 163 By November 2005,<br />
<strong>Subaru</strong> was discussing future plans for more commercials, despite the fact that the channel was<br />
not yet Nielsen-rated. 164<br />
In addition to the standard :15, :30, and :60 second television spots, Logo also presented<br />
advertisers with a new form of communication – interstitials. Interstitials run for the duration of a<br />
commercial break and are sponsored by one company. <strong>Subaru</strong> and MTV Networks co-created<br />
two-minute interstitials featuring stories of real-life gay men and lesbians; <strong>Subaru</strong> branding was<br />
flashed at the end only. 165 As Hank Close, President for MTV Networks’ Ad Sales explained,<br />
“<strong>The</strong> whole goal here is to blur the line between content and advertising message.” 166<br />
In October 2009, <strong>Subaru</strong> launched the Logo Legacy Campaign, a six-month branding<br />
campaign extending interstitials to three minutes. <strong>The</strong> campaign is a play on words, referencing<br />
<strong>Subaru</strong>’s launch of the 2010 Legacy model and the legacy of gay and lesbian entertainers. <strong>The</strong><br />
interstitials once again feature real-life gay men and lesbians discussing their lives, with <strong>Subaru</strong><br />
branding appearing at the beginning only. Viewers are guided to LogoOnline.com for more<br />
information about <strong>Subaru</strong>’s products as well as a showcase of <strong>Subaru</strong>’s previous gay and lesbian<br />
ads. Lisa Sherman, Senior VP and General Manager of Logo proclaimed, “We are proud to<br />
partner with <strong>Subaru</strong>, a company that has truly raised the bar with the work they have done with<br />
and for the community to offer this meaningful campaign to our viewers.” 167<br />
GAY ORGANIZATIONS RECOGNIZE SUBARU’S EFFORTS<br />
Gay organizations began formally recognizing <strong>Subaru</strong>’s efforts in 2002, starting with the<br />
Human Rights Campaign (HRC). HRC, the United States’ largest gay and lesbian advocacy<br />
organization, ranks the employment policies of public and private companies nationwide in its<br />
annual Corporate Equality Index (CEI). <strong>The</strong> HRC bases its rankings on the existence of non-<br />
<br />
19
discrimination policies that include lesbian, gay, bisexual, and transgender (LGBT) employees,<br />
diversity training, LGBT health benefits, employee resource groups, and “respectful” marketing<br />
efforts targeting the LGBT community. 168<br />
<strong>Subaru</strong> has scored a perfect 100 on HRC’s CEI for three years straight. Although <strong>Subaru</strong><br />
has been included in the HRC rankings since 2002, the company has published just one media<br />
release on its corporate website announcing its ranking, dated September 21, 2009. 169 <strong>The</strong> media<br />
release is included in Appendix III. In 2009, Ikeda commented on the company’s perfect score:<br />
<br />
“We are very proud to accept this recognition. Due to the diverse insights, talents and<br />
perspectives our employees contribute, we have built a culture that is cohesive in<br />
operation, strong at heart, and a company where our employees work with pride.<br />
Together we hope to create a reputation of distinction, service and respect.” 170<br />
<strong>The</strong> company’s rankings from 2002-2010 are featured in Table VI:<br />
20 <br />
Source: HRC 171<br />
In conjunction with HRC recognition, <strong>Subaru</strong> has been honored by various gay<br />
organizations for its efforts. On November 21, 2005, the Commercial Closet Association<br />
honored <strong>Subaru</strong>’s Tim Bennett with its first Visionary Executive Award in New York City. 172<br />
Four years later on October 27, 2009, GLAAD awarded <strong>Subaru</strong> the Corporate Responsibility<br />
Award. 173<br />
In 2008, MediaPost named <strong>Subaru</strong> Automotive Marketer of the Year for its general<br />
market campaign “Love. It’s what makes a <strong>Subaru</strong>, a <strong>Subaru</strong>” and the “Share the Love” charity<br />
campaign. As Karl Greenberg, editor at Mediapost.com stated, “<strong>Subaru</strong> is an anomaly in the auto<br />
business ... [with] the kind of brand equity and staunch loyalty you usually find in luxury<br />
marquees, which means they can keep their message on product and brand, not deals.” 174 In<br />
addition to the MediaPost honor, <strong>Subaru</strong> ranked third in the automotive industry on Brand Keys’<br />
annual 2009 Customer Loyalty Insights Report. 175<br />
CONSUMER FEEDBACK FOR GAY AND LESBIAN OUTREACH
By 2000, <strong>Subaru</strong> was receiving feedback from gay and lesbian consumers about its<br />
marketing efforts. 2000 MRI data showed that <strong>The</strong> Advocate and Out readers were one and a half<br />
times more likely to purchase a <strong>Subaru</strong> vehicle than other brands. During the next year, <strong>Subaru</strong><br />
doubled its advertising efforts; through market research in 2002, the company learned that<br />
readers were now nearly three times more likely to purchase a <strong>Subaru</strong> than other brands. 176<br />
Further research showed that as <strong>Subaru</strong> expanded its marketing efforts and changed the design of<br />
its vehicles over time, by 2002 gay men exceeded lesbians in number of <strong>Subaru</strong>s purchased. 177<br />
For its outreach, <strong>Subaru</strong> affectionately became known as “gaybaru” 178 and “lesbaru” 179<br />
by those within the communities; while the media first reported these nicknames in 2002, it is<br />
likely that members in the communities referred to the vehicles accordingly prior to that.<br />
In 2009, NPR’s Car Talk created a top 10 list of gay and lesbian vehicles, based on email<br />
feedback from gay and lesbian listeners. <strong>The</strong> <strong>Subaru</strong> Outback and Forrester ranked #1 and<br />
#2, respectively, for lesbians, while the top 10 list for gay men did not feature any <strong>Subaru</strong>s. 180<br />
INCREASED SALES DUE TO OUTREACH<br />
<strong>Subaru</strong>’s reciprocal relationship with gay and lesbian stakeholders provides evidence of<br />
prosperity; between 1993 and 2004, <strong>Subaru</strong> more than doubled the number of cars sold.<br />
Although the increase to <strong>Subaru</strong>’s bottom line is not directly caused by its relationship with the<br />
gay and lesbian communities alone, Bennett definitively acknowledged the fact that <strong>Subaru</strong>’s<br />
relationship cultivation played a role in the upswing. 181<br />
<br />
FORD MOTOR COMPANY<br />
Like <strong>Subaru</strong>, Ford Motor Company has partnered with the gay and lesbian communities<br />
for over a decade. However, despite its long partnership history, Ford was entangled in a 2005-<br />
06 battle over gay advertising with two opposing stakeholders: the conservative American<br />
Family Association (AFA) and numerous gay organizations. Despite its gay-friendly outreach,<br />
Ford handled the boycott in a secretive, indirect manner that led to many questions – from both<br />
sides. <strong>The</strong> events contrast <strong>Subaru</strong>’s boycott-free history.<br />
To provide context for understanding how the boycott arose, and subsequently Ford’s<br />
response to the events as they unfolded, a brief overview of the Ford Motor Co. follows.<br />
Significantly larger than <strong>Subaru</strong>, in 2008 Ford Motor Co. posted a net income of $14.7 billion 182<br />
and sold 2.3 million automobiles in North America alone. 183 Ford accounted for 14.2% of all<br />
U.S. auto sales in 2008 and was the sixth largest advertiser is terms of ad spending, at $1.4<br />
billion. Representing one-third of the Big Three U.S. automotive manufacturers, Ford Motor Co.<br />
is the only American manufacturer to have not received money in the government bailout. An<br />
abridged history of Ford’s relationship with the gay and lesbian communities is provided in the<br />
following sections.<br />
21
FORD’S GAY-FRIENDLY HISTORY<br />
In July 1994, Ford employees Alice McKeage and Rob Matras began a letter-writing<br />
campaign to Ford’s CEO and VP of Employee Relations to broach the subject of forming a gay,<br />
lesbian, and bisexual employee group. Granting their request, one year later McKeage and Matra<br />
co-founded the Ford Gay, Lesbian, or Bisexual Employees (GLOBE) group. Later in 1995, Ford<br />
expanded its corporate diversity definition to include sexual orientation and ran ads during<br />
NBC’s viewing of Serving in Silence, a made-for-TV movie about the life of lesbian Army<br />
Colonel Margarethe Cammermeyer, discharged under the military’s Don’t Ask, Don’t Tell<br />
Policy in 1992. In 1996, Ford developed a GLOBE site on the company intranet, publicizing its<br />
efforts to internal stakeholders (now available through http://fordglobe.org). Externally, members<br />
marched in gay pride parades and collaborated with gay, lesbian, and bisexual groups at<br />
neighboring GM and Chrysler. 184<br />
GLOBE members added sexual orientation to Ford’s workplace diversity training in 1998<br />
and delivered external speeches about Ford’s efforts to organizations in metro-Detroit. <strong>The</strong><br />
following year, GLOBE started recruiting at gay and lesbian conferences and sponsored both<br />
Lambda Legal’s “Michigan in March” celebration and the 1999 Out and Equal Leadership<br />
Summit. Moreover, Ford vehicles were featured in pride events in Australia and Europe.<br />
In the early 2000s, Ford’s outreach to the gay, lesbian, bisexual, and newly-extended<br />
transgender communities increased over time through corporate sponsorship of events like<br />
Working Out: Lesbian and Gay MBA Conference, National Coming Out Day, Parents and<br />
Friends of Lesbians and Gays (PFLAG) Michigan, Jaguar Gay Pride Month in New Jersey,<br />
Corporate Sponsorship of the Gay and Lesbian Alliance Against Defamation (GLAAD) Media<br />
Awards (Jaguar), Midwest BLGTA College Conference, and AIDS Walk Michigan. Ford also<br />
contributed large donations to the greater Detroit Affirmations Lesbian and Gay Community<br />
Center, and additional GLOBE chapters sprung up worldwide. Showing its commitment to<br />
internal and external stakeholders in a manner unmatched by competitors, in 2001 Ford opened a<br />
Beverly Hills dealership featuring all-gay employees. Ford advertised the new venture in<br />
Frontiers, a local gay magazine. 185<br />
GAY ORGANIZATIONS RECOGNIZE FORD’S EFFORTS<br />
On June 8, 2000, Ford, GM, and Chrysler – in conjunction with the United Auto Workers<br />
(UAW) – extended same-sex healthcare benefits to employees; additional benefits, such as<br />
financial planning, legal services, and vehicle programs, were offered to LGBT employees the<br />
following year. For GLOBE’s efforts, Ford was jointly-awarded the HRC’s Corporate Equality<br />
Award along with GM, Chrysler, and UAW in 2000. In 2004 and 2005, Ford was the only<br />
automotive company to score a perfect 100 on the HRC CEI. A complete history of Ford’s CEI<br />
rankings is shown in Table VII:<br />
<br />
22
<br />
23 <br />
Source: HRC 186<br />
In 2003, Ford was named the top company for overall diversity by Diversity, Inc. and the<br />
second best company for LGBT employees. <strong>The</strong> company also received the GLAAD Fairness<br />
Award in 2003, 187 honoring Ford’s commitment to employee equality. In reference to the<br />
Fairness Award, Jim Padilla, Ford’s COO, stated: “This rating acknowledges Ford’s deep<br />
commitment to building and nurturing an inclusive and respectful culture in which all employees<br />
feel encouraged and able to contribute to their fullest potential. Not only is this the right thing to<br />
do, it is essential to the future of our business.” 188<br />
JAGUAR, VOLVO, AND LAND ROVER BEGIN ADVERTISING IN GAY MEDIA<br />
Cindy Clardy of GLOBE cautioned Ford about reaching out to the gay and lesbian<br />
communities: “We told Ford not to consider direct marketing to gay and lesbian consumers until<br />
they had their internal policies in place.” 189 Presumably heeding Clardy’s advice, after<br />
implementing gay-friendly policies in the mid-1990s, Ford hired Witeck-Combs (a Washington<br />
DC-based PR firm that specializes in reaching the gay and lesbian communities) to execute a<br />
survey of LGBT attitudes toward automotive companies. 190 Results were shared with all Ford<br />
Motor Co. brands, including Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury,<br />
and Volvo, but only three brands moved forward with ad creation and focus group testing. 191<br />
In 1999, Jaguar sponsored GLAAD’s Annual Media Awards for the first time 192 and<br />
Land Rover followed a couple years later. 193 In 2003, Jaguar followed <strong>Subaru</strong>’s lead and<br />
developed gay- and lesbian-specific creative executions 194 for <strong>The</strong> Advocate, Out, and<br />
Metrosource. 195 During the campaign, Jaguar began offering $1,000 donations to the HRC for<br />
every car purchased or leased; in 2004, Jaguar shifted donations from HRC to GLAAD. 196<br />
Referring to the Jaguar campaign, Jan Valentic, Ford’s VP of Global Marketing, asserted, “We<br />
believe in messaging that connects with the consumer. <strong>The</strong> point of our doing this<br />
is…reciprocity. So when they buy one of our products, they know that we are giving back to
their community.” 197 Land Rover began advertising to the communities in 2002; in 2003-04, the<br />
company also offered $1,000 donations to HRC/GLAAD for every car purchased. 198<br />
In a similar vein, Volvo first advertised in Genre, a magazine targeting gay men, in July<br />
2001. 199 Additionally, Volvo donated automobiles for use in the 2001 West Hollywood Gay<br />
Pride Parade. 200 For its groundbreaking “Starting a Family” campaign launched two years later<br />
(see Appendix IV), Volvo was awarded the Advertising Research Foundation’s David Ogilvy<br />
Award on April 27, 2004 201 and the Association of National Advertisers’ Multicultural<br />
Excellence Award on November 9, 2004. 202 Volvo became a platinum sponsor of the HRC and<br />
offered donations of $500 for every vehicle sold or leased, announcing its partnership in the<br />
campaign. 203 Thomas Andersson, EVP of Volvo Cars North America, remarked: “For us, it was<br />
very natural to address gay families…the Volvo-minded consumer is very diverse. ‘Family’ is<br />
much more than the traditional family.” 204<br />
Although running ads in Europe and Australia during this time, Ford Motor Co. had yet<br />
to consistently run ads for its flagship brand in U.S. gay media. Ford did advertise its Focus<br />
model on gay.com in 1999 205 and its new Beverly Hills dealership in a local gay magazine in<br />
2001, but that advertising presence was short-lived. When asked if the company was concerned<br />
that advertising abroad might offend conservative U.S. consumers, Valentic responded, “It<br />
wouldn’t scare us from doing something that’s right for our company.” 206<br />
AFA BOYCOTTS FORD FOR “HOMOSEXUAL AGENDA”<br />
On May 31, 2005, 207 the Tupelo, MS-based American Family Association (AFA)<br />
announced its intentions to boycott Ford Motor Co. in response to the latter’s pro-gay<br />
ideology. 208 <strong>The</strong> Conservative Christian organization founded by Reverend Donald Wildmon in<br />
1978 209 is known for boycotting organizations c that do not adhere to its conservative ideology. 210<br />
As Randy Sharp, AFA’s Director of Special Projects contended, Ford Motor Co. was “redefining<br />
the definition of the family to include homosexual marriage.” 211<br />
In response to AFA’s announcement, Ford spokeswoman Marcey Evans explained that<br />
“Diversity is very important to Ford, and it goes beyond homosexuality.” 212 Yet, local Ford<br />
dealers urged AFA to postpone the boycott until Ford could meet with AFA members; the AFA<br />
agreed to a six-month postponement, to lessen the impact on local dealers for what was<br />
decidedly an executive decision. 213<br />
In June 2005, Ford and AFA met for the first time. 214 Immediately succeeding a second<br />
meeting on November 28, 2005, 215 held at AFA headquarters, 216 Ford Motor Co. announced its<br />
decision to pull Jaguar and Land Rover (but not Volvo) advertising in a company memo. Gay<br />
and lesbian stakeholders – both internal and external – were not consulted nor informed of<br />
Ford’s decision before the media announced the decision. 217<br />
<br />
c <strong>The</strong> AFA has boycotted Disney World, Wal-Mart, Proctor & Gamble, Volkswagen, Clorox Company, SC Johnson<br />
& Son, Kraft Foods, Walgreens, Mary Kay Cosmetics, Old Navy, Viacom, Abercrombie & Fitch, K-Mart, Burger<br />
King, Carl’s Jr., Nutrisystem, and American Airlines. <br />
<br />
24
After the memo was distributed, Ford spokesperson Mike Moran denied that the<br />
company had given into AFA pressure (see the Chicago Tribune article in Appendix V):<br />
<br />
“That is not something that came about in the last week or month. 218 This was made as a<br />
pure business decision, not as a social statement one way or another. This was not a<br />
decision in response to the American Family Association. Jaguar and Land Rover are<br />
streamlining their advertising in 2006.” 219<br />
Moran denied the existence of a confidential agreement between Ford Motor Co. and AFA 220<br />
and noted that Jaguar and Land Rover were reducing advertising expenditures elsewhere, but he<br />
neglected to state where else the companies’ advertising expenditures would be trimmed. 221 A<br />
Ford company statement corroborated Moran’s sentiment, declaring “Advertising decisions for<br />
all our brands are driven strictly by a business case.” 222<br />
Ford’s U.S. sales numbers partially substantiated company sentiment. In 2005, companywide<br />
U.S. sales declined 5%; Jaguar’s sales declined 34%; yet Land Rover’s sales increased by<br />
31%. 223<br />
Interpreting Ford’s ad pull as victory, on November 30, 2005, AFA posted a notice on its<br />
website stating they would not proceed with the boycott. 224 In a media release, Rev. Wildmon<br />
stated: “While we still have a few differences with Ford, we feel that our concerns are being<br />
addressed in good faith and will continue to be addressed in the future.” 225<br />
Moran revealed that while AFA objected to Ford’s gay-friendly behavior in the United<br />
States, AFA was particularly offended by the company’s European ads featuring men holding<br />
hands with one another and women in their bras. His statements sharply contrasted Valentic’s,<br />
Ford’s VP of Global Marketing, earlier remarks that discounted Ford’s potential for offending<br />
U.S. conservatives with European ads. Sharp, AFA’s Director of Special Projects, declared that<br />
while other automotive manufacturers also actively reach out to the gay and lesbian<br />
communities, Ford’s HRC and GLAAD donations far outweighed competitors’ efforts; therefore,<br />
Ford became the target of AFA’s attacks. 226<br />
Reactions from members of the gay community tended to skew heavily toward outrage.<br />
HRC, a benefactor of Jaguar and Land Rover’s donations, vehemently opposed Ford’s decision:<br />
“We expect Ford to disavow it…[and] publicly reaffirm its historic support for our<br />
community.” 227 Kevin Cathcart, Executive Director of the Lambda Legal Defense Fund, echoed<br />
HRC: “You don’t make deals with bullies, and you don’t cut your friends loose.” 228 Offering a<br />
different opinion, Spencer Moore, Manager of Corporate Communications for PlanetOut, Inc.,<br />
owner of gay.com, argued, “Based on what Ford has said, it’s a business decision and some of<br />
their brands are still advertising.” 229<br />
After meeting with AFA members twice and subsequently announcing the ad pulls, Ford<br />
agreed to meet with 19 gay organization leaders on December 10, 2005. 230 Ford offered no<br />
indication of plans to cut AFA ties or to reinstate Jaguar and/or Land Rover ads. Through a<br />
company statement, Ford commented that the company was: “always willing to engage in<br />
constructive conversation with those interested in our policies.... But only Ford Motor Company<br />
speaks for Ford Motor Company. Any suggestion to the contrary is incorrect.” 231<br />
25
Two days later, Ford announced plans to promote all eight automotive brands in<br />
corporate ads to run in gay media, as a sign of Ford’s long-standing support for the<br />
communities. 232 Ford’s VP of Corporate HR, Joe Laymon, professed, “It is my hope that this will<br />
remove any ambiguity about Ford’s desire to advertise to all important audiences and put this<br />
particular issue behind us.” 233 Ford’s announcement was met with fervent support from meeting<br />
attendees such as Neil Giuliano, President of GLAAD: “Ford did the right thing here, both for its<br />
brand and for its bottom line.” 234<br />
Upon hearing about Ford’s change of mind, Rev. Wildmon threatened to reinstate the<br />
boycott, 235 claiming that Ford had dishonored its November 2005 agreement. 236 Rev. Wildmon<br />
drafted a letter to Chairman Bill Ford, signed by members of 40 d self-labeled “pro-family”<br />
organizations, and requested that Ford respond to the groups’ demands by January 20, 2006; 237<br />
upon receiving no answer, the boycott was reinstated on March 13, 2006. 238<br />
One month later, AFA issued a media release claiming that the boycott was proving<br />
successful, as Ford’s stock price had dropped and sales declined. 239 Rev. Wildmon repeated<br />
sentiment of AFA’s success again in seven media releases issued between September 2006 240<br />
and January 2008. 241 Ford labeled Rev. Wildmon’s claims as false, 242 but the company did not<br />
issue media releases of its own to address the boycott. On March 10, 2008, Rev. Wildmon<br />
announced the boycott would be “suspended,” due to the success of AFA’s negative impact on<br />
Ford’s sales (see Appendix VI). 243 AFA has not released statements about the Ford boycott since<br />
that date.<br />
CONTRASTING SUBARU AND FORD MOTOR COMPANY<br />
Both <strong>Subaru</strong> and Ford Motor Co. have had meaningful relationships with their gay and<br />
lesbian stakeholders for 14 years – significantly longer than all other automotive companies –<br />
and continue to strengthen these relationships today. It is precisely because of these strong<br />
integrated marketing communication-anchored relationships, which have run in parallel to sales<br />
increases for both, that the two automotive companies were examined in this case study.<br />
However, <strong>Subaru</strong> and Ford Motor Co. have communicated with and demonstrated their support<br />
of the communities using diverse communication tactics – and faced different repercussions as a<br />
result.<br />
When <strong>Subaru</strong> sponsored the Rainbow Card and Ford created GLOBE in 1995, public<br />
opinion of gay men and lesbians was mixed: 50% of the U.S. population stated that<br />
homosexuality should not be considered an acceptable alternative lifestyle, and respondents were<br />
evenly split on whether homosexual activities between consenting adults should be legal. 244<br />
While companies such as IKEA, AT&T, Mazda, and John Hancock received various forms of<br />
consumer backlash for their marketing efforts, including threats of violence, it was not until<br />
nearly one decade later that Ford was boycotted by AFA. <strong>Subaru</strong>, however, has never been on<br />
the receiving end of a boycott and has received extremely minimal backlash. 245<br />
To understand why Ford was the target of a boycott while <strong>Subaru</strong> – with an equally long<br />
and diverse history of reaching out to gays and lesbians – was not, four factors should be<br />
<br />
d Eighteen of the 40 signatories joined the AFA boycott. <br />
<br />
26
considered. First, <strong>Subaru</strong> is a small Japanese auto manufacturer offering six automobile models<br />
compared to Ford Motor Co., a large U.S. auto manufacturer offering 16 (consumer) automobile<br />
models. <strong>Subaru</strong> sales represent a mere fraction of Ford’s, and the former has a history of<br />
targeting progressive, liberal niche markets – gay or straight – to sell niche car models. Ford, on<br />
the other hand, is a mainstream brand targeting a wide variety of consumers, both liberal and<br />
conservative. Ford was the sixth largest U.S. advertiser in 2008 spending $1.4 billion, whereas<br />
<strong>Subaru</strong>’s 2008 advertising budget dwarfs in comparison (~$200 million).<br />
Because of their differences, both companies face unique challenges moving forward as<br />
they continue to strengthen and diversify their relationships with gay and lesbian stakeholders.<br />
However, given <strong>Subaru</strong>’s successful relationship cultivation and unwavering commitment to the<br />
gay and lesbian communities, the company’s niche integrated communication efforts have been<br />
more successful than Ford’s – particularly considering how Ford initially handled the AFA<br />
boycott. <strong>Subaru</strong> has positioned itself as more than a car company seeking to capitalize on the<br />
gay/lesbian dollar, but rather as an ally to gay and lesbian stakeholders.<br />
SUBARU’S CURRENT DILEMMA: IMC SUSTAINABILITY<br />
As competition increases and more automotive companies develop relationships with gay<br />
and lesbian stakeholders, <strong>Subaru</strong> will need to retain its competitive advantage using both<br />
advertising and, even more so, public relations tactics. Between 1995 and 2005, <strong>Subaru</strong>’s<br />
competition was largely luxury automotive brands that targeted consumers of a different<br />
socioeconomic status. New gay and lesbian media outlets have appeared regularly within the last<br />
decade, therefore providing fresh, unique, and diverse avenues for <strong>Subaru</strong> to reach its brand loyal<br />
gay and lesbian consumers. As evidenced by <strong>Subaru</strong>’s penchant for sponsoring new gay-targeted<br />
products, if more products are not created in the near future, print readership continues to decline<br />
in general, and advertising audiences and dollars continue to move away from traditional media<br />
sources, <strong>Subaru</strong> must keep diversifying its integrated marketing communication efforts in years<br />
to come. In the highly competitive automotive industry, it is necessary for <strong>Subaru</strong> to prove that<br />
its gay and lesbian IMC strategy is sustainable into the next decade as well.<br />
Furthermore, although a loyal contingent, gay and lesbian consumers represent just one<br />
of <strong>Subaru</strong>’s niche markets. While the market has proven to be a lucrative, loyal consumer base,<br />
not all gays and lesbians consume gay-targeted media and therefore may be unaware of <strong>Subaru</strong>’s<br />
efforts. <strong>The</strong> auto manufacturer needs to reach additional consumers regardless of their sexual<br />
orientation. As Jim Hall, an auto analyst with 2953 Analytics, states, “You don’t grow by selling<br />
to the people you’ve sold to before.” 246 To remain competitive in the U.S. automotive industry in<br />
the long-term, <strong>Subaru</strong> needs to grow its consumer base by pursuing other niche markets without<br />
damaging the relationships it has cultivated thus far.<br />
<br />
27
<br />
APPENDIX I<br />
28
<br />
APPENDIX II<br />
29
<br />
APPENDIX III<br />
<strong>Subaru</strong> of America, Inc. Earns Top Marks in 2010 Corporate Equality Index<br />
30
Sep 21, 2009 [USA]<br />
Cherry Hill, NJ, September 21, 2009 – <strong>Subaru</strong> of America, Inc., has earned the top rating of 100<br />
percent in the 2010 Corporate Equality Index (CEI), an annual survey administered by the<br />
Human Rights Campaign Foundation. <strong>Subaru</strong> joins the ranks of 259 other major U.S. businesses<br />
which get top marks for their treatment of lesbian, gay, bisexual, and transgender (LGBT)<br />
employees and consumers.<br />
<strong>The</strong> CEI rated 583 businesses in total, evaluating LGBT-related policies and practices including<br />
non-discrimination policies, transgender health benefits and domestic partner benefits. <strong>Subaru</strong>’s<br />
efforts in ensuring LGBT equality in each of the survey’s main criterion earned it the prestigious<br />
100 percent ranking.<br />
Copyright © Fuji Heavy Industries Ltd. All Rights Reserved.<br />
<br />
APPENDIX IV<br />
31
<br />
APPENDIX V<br />
Ford to pull Jaguar, Land Rover ads from gay press<br />
32
Chicago Tribune<br />
12/07/2005<br />
Rick Popely<br />
Dec. 7--CHICAGO -- Ford Motor Co., already losing customers to other brands, now faces the<br />
possibility of damaged relations with the 15 million members of the gay community.<br />
Ford's Jaguar and Land Rover brands will stop advertising in gay publications in what Ford says<br />
is "purely a business decision," but gay advocacy groups suspect is a response to pressure from<br />
the American Family Association, a conservative Christian Group.<br />
<strong>The</strong> move by Ford, which doesn't include its Volvo brand, runs counter to efforts by other car<br />
makers to reach out to gays and lesbians.<br />
As a result, the second-largest automaker may be jeopardizing goodwill it had with a group<br />
whose spending power will hit $610 billion this year, said advertising executive Todd Evans.<br />
That figure is not far behind African Americans and Hispanic Americans in buying power.<br />
Readers of gay publications tend to be "influencers, the out gay person who is concerned with<br />
gay issues" and will spread the word about who advertises and who doesn't, said Evans, chief<br />
executive of Rivendell Media, an advertising placement firm in Mountainside, N.J.<br />
"<strong>The</strong>re's a lot of research that people will go out of their way and even pay more for a brand that<br />
is gay friendly. When you're talking about big ticket items, a lot of thought goes into it," Evans<br />
said.<br />
Other automakers are reaching out to gay consumers, including <strong>Subaru</strong> of America, Mercedes-<br />
Benz and General Motors Corp.'s Cadillac, Saab and Saturn brands.<br />
<strong>The</strong> American Family Association, based in Tupelo, Miss., called for a Ford boycott in late May<br />
over what it called the company's "homosexual agenda," including marketing to gays, donations<br />
to gay causes and diversity training for its employees.<br />
<strong>The</strong> AFA suspended the boycott for six months in June after local Ford dealers complained they<br />
were being hurt most. <strong>The</strong> organization announced on its Web site Nov. 30 that the boycott had<br />
ended, after it met with Ford representatives, touching off concerns among gay advocates that the<br />
AFA had struck a deal with Ford.<br />
"While we still have a few differences with Ford, we feel our concerns are being addressed in<br />
good faith and will continue to be addressed in the future," AFA Chairman Donald A. Wildmon<br />
said in a statement posted on AFA's Web site.<br />
<strong>The</strong> AFA did not respond to requests for comments Tuesday.<br />
Ford spokesman Mike Moran said the decision for Jaguar and Land Rover to stop advertising in<br />
gay publications was made before the company met with the AFA.<br />
<br />
33
"That is not something that came about in the last week or month. It's been evolving a long<br />
time," Moran said. "This was made as a pure business decision, not as a social statement one way<br />
or another. This was not a decision in response to the American Family Association."<br />
Ford's Volvo brand, which has advertised in gay publications for years, will continue to do so,<br />
Moran said. <strong>The</strong> company's Ford, Lincoln and Mercury brands have not marketed directly to<br />
gays and have no plans to do so.<br />
"That's just not part of our marketing plan. We let our brands determine where it makes the most<br />
sense to advertise their products," Moran said, adding that Jaguar and Land Rover are<br />
"streamlining" their advertising in 2006.<br />
"Jaguar faces extreme pressure in its marketing budget and is not going to be able to afford as<br />
many publications as it has in the past."<br />
Ford does not break out financial results for its brands, but Jaguar and Land Rover are believed<br />
to be losing money while Volvo is profitable. All three are part of Ford's Premiere Automotive<br />
Group, which lost $108 million in the third quarter.<br />
Ford Motor Co.'s U.S. sales are down 5 percent this year, and Jaguar's have plunged 34 percent.<br />
Land Rover's sales are up 31 percent thanks to brisk sales of the LR3, a new sport-utility vehicle.<br />
Land Rover was gaining traction in the gay community because of ads in national gay<br />
publications like the Advocate, Tracy Baim, publisher and editor of the Windy City Times, a<br />
gay-oriented newspaper, said.<br />
"<strong>The</strong> gay community is extremely loyal to brands that advertise to them and they're very<br />
educated about this," she said.<br />
<strong>Subaru</strong> is recognized as the first car company to target gays, starting in about 1995, after it<br />
discovered through focus groups that a large number of its owners were lesbians. <strong>The</strong> gay<br />
community is only one of the niches <strong>Subaru</strong> targets. Others include skiers through sponsorship of<br />
the National Ski Patrol, nurses and other medical professionals and engineers. One of the<br />
common selling point to those groups is that all <strong>Subaru</strong> models come with all-wheel drive and<br />
are well-suited to outdoor activities.<br />
Gregg Lieberman, vice president of Moon City Productions, the New York agency <strong>Subaru</strong> uses<br />
for its gay-oriented ads, says tailoring the message to specific groups builds allegiance.<br />
"It says that we recognize that you exist as human beings and as a group of consumers," he said.<br />
<br />
APPENDIX VI<br />
34
American Family Association<br />
Contact: Cindy Roberts ~ 662-844-5036<br />
For Immediate Release: 3/10/2008<br />
<br />
Ford meets conditions; AFA suspends boycott<br />
(Tupelo, MS) - American Family Association (AFA) has suspended its two-year boycott of<br />
Ford Motor Company. After monitoring the company for several months, AFA said the<br />
conditions of the original agreement between AFA and Ford, agreed to in fall 2005, have been<br />
met.<br />
According to AFA, during the 24 months the boycott was in effect, Ford sales dropped an<br />
average of 8% per month. <strong>The</strong> organization said its boycott was not entirely responsible for<br />
the drop in sales, but it played a very significant role. A total of 780,365 individuals had<br />
signed AFA’s Boycott Ford petition.<br />
AFA Chairman Donald E. Wildmon said the original agreement between the family group and<br />
Ford contained four items:<br />
Ford would not renew current promotions or create future incentives that give cash donations<br />
to homosexual organizations based on the purchase of a vehicle.<br />
Ford would not make corporate donations to homosexual organizations that, as part of their<br />
activities, engage in political or social campaigns to promote civil unions or same-sex<br />
marriage.<br />
Ford would stop giving cash and vehicle donations or endorsements to homosexual social<br />
activities such as Gay Pride parades.<br />
Ford would cease all advertising on homosexual Web sites and through homosexual media<br />
outlets (magazines, television, radio) in the U.S. with the exception of $100,000 to be used by<br />
Volvo. <strong>The</strong> Volvo ads would be the same ads used in the general media and not aimed at the<br />
homosexual community specifically.<br />
Wildmon said a few minor issues remain, and AFA will continue to bring these to the<br />
attention of Ford.<br />
American Family Association is a pro-family advocacy organization with over two million<br />
online supporters.<br />
American Family Association<br />
P.O. Box 2440<br />
Tupelo, MS. 38803<br />
35
<br />
1 Kuhr, Fred. “Driving Sales: Car Companies Find Success Advertising To Gay Consumers and Supporting Groups<br />
that work for Equality,” <strong>The</strong> Advocate, November 9, 2004, http://www.accessmylibrary.com/article-1G1-<br />
126164421/driving-sales-car-companies.html (accessed September 29, 2009). <br />
2 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, p. 1, Late Edition. <br />
3 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
4 JD Power & Associates. JDPower.com. http://www.jdpower.com/autos (accessed December 6, 2009). <br />
5 Levy, Efraim. “Industry Surveys: Autos & Auto Parts.” Standard & Poor’s, June 25, 2009, http://www.net<br />
advantage.standardandpoors.com.libproxy.lib.unc.edu/NASApp/NetAdvantage/showIndustrySurvsh.do?task=show<br />
IndustrySurvey&type=pdf&code=aup (accessed December 6, 2009). <br />
6 Wards Auto. “U.S. Vehicle Sales Market Share By Company, 1961-2008. http://wardsauto.com/keydata/<br />
historical/UsaSa28summary/ (accessed December 6, 2009). <br />
7 Levy, Efraim. “Industry Surveys: Autos & Auto Parts.” Standard & Poor’s, June 25, 2009, http://www.net<br />
advantage.standardandpoors.com.libproxy.lib.unc.edu/NASApp/NetAdvantage/showIndustrySurvsh.do?task=showI<br />
ndustrySurvey&type=pdf&code=aup (accessed December 6, 2009). <br />
8 Newman, Rick. “How the Feds will Govern GM and Chrysler.” US News, December 19, 2008,<br />
http://www.usnews. com/money/blogs/flowchart/2008/12/19/how-the-feds-will-govern-gm-and-chrysler.html<br />
(accessed December 6, 2009). <br />
9 Isidore, Chris. “Chrysler Files for Bankruptcy.” CNN Money, May 1, 2009, http://money.cnn.com/2009/04/30/<br />
news/companies/chrysler_bankruptcy/index.htm?postversion=2009050103 (accessed December 6, 2009). <br />
10 Maynard, Micheline, Lieber, Ron, and Bernard, Tara Siegel. “A Primer on the G.M. Bankruptcy.” New York<br />
Times, June 1, 2009, http://www.nytimes.com/2009/06/02/business/02primer.html (accessed December 6, 2009). <br />
11 Ibid. <br />
12 Car Allowance Rebate System. “Helpful Q&As for Consumers.” http://www.cars.gov/faq#category-01 (accessed<br />
December 6, 2009). <br />
13 Ibid. <br />
14 Bolton, Eric. “Cash for Clunkers Wraps Up with Nearly 700,000 Car Sales and Increased Fuel Efficiency, U.S.<br />
Transportation Secretary LaHood Declares Program ‘Wildly Successful’.” United States Department of<br />
Transportation, August 26, 2009, http://www.dot.gov/affairs/2009/dot13309.htm, (accessed December 6, 2009). <br />
15 Ibid. <br />
16 Levy, Efraim. “Industry Surveys: Autos & Auto Parts.” Standard & Poor’s, June 25, 2009, http://www.net<br />
advantage.standardandpoors.com.libproxy.lib.unc.edu/NASApp/NetAdvantage/showIndustrySurvsh.do?task=showI<br />
ndustrySurvey&type=pdf&code=aup (accessed December 6, 2009). <br />
17 Nielsen figures do not account for Internet or business-to-business ad spending. <br />
18 Nielsen. “U.S. Ad Spending Fell 2.6% in 2008, Nielsen Reports.” http://en-us.nielsen.com/main/news/news<br />
_releases/2009/march/u_s__ad_spending_fell (accessed December 6, 2009). <br />
19 Ibid. <br />
20 Ibid. <br />
21 Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
22 An example of this type of mainstream advertising is the 2009 CoverGirl Simply Ageless campaign; Ellen, an out<br />
lesbian, is featured in the campaign, but lesbians are not the primary market. <br />
23 Elliott, Stuart. “Martina Navratilova in a Campaign for <strong>Subaru</strong>.” New York Times, March 13, 2000. <br />
24 Prime Access. “Research Reports.” http://www.primeaccess.net/c2_gpr.php (accessed November 15, 2009). <br />
25 Ibid. <br />
26 Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
27 Ibid. <br />
28 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
29 Wilke, Mike. “Ad Survey Shows Appeal of Gay <strong>The</strong>mes.” Advertising Age, May 6, 1996. <br />
30 Wilke, Mike. “Target Focus: AmEx and Bud Light First Ran Mainstream Ads in Gay Markets Before Creating<br />
Gay-Specific Advertising.” Advertising Age, June 22, 1998. <br />
31 Ibid. <br />
32 Alsop, Ronald. “Cracking the Gay Market Code: How Marketers Plant Subtle Symbols in Ads.” Wall Street<br />
Journal, June 29, 1999, B.1., Eastern edition. <br />
33 Murphy, Molly. “We Take Pride.” <strong>The</strong> Wells Fargo-Wachovia Blog, June 26, 2009, http://blog.wells<br />
fargo.com/wachovia/2009/06/we_take_pride.html (accessed on December 19, 2009). <br />
34 Wilke, Mike. “Big Advertiser Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
<br />
36
<br />
35 Wilke, Mike. “Target Focus: AmEx and Bud Light First Ran Mainstream Ads in Gay Markets Before Creating<br />
Gay-Specific Advertising.” Advertising Age, June 22, 1998. <br />
36 Ibid. <br />
37<br />
Ibid. <br />
38<br />
Ibid. <br />
39<br />
Wilke, Mike and Applebaum, Michael. “Peering Out of the Closet.” Brandweek, November 5, 2001. <br />
40<br />
Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
41<br />
Ibid. <br />
42<br />
Yin, Sandra. “Coming Out in Print.” Advertising Age, February 1, 2003. <br />
43<br />
Alsop, Ronald. “Cracking the Gay Market Code: How Marketers Plant Subtle Symbols in Ads.” Wall Street<br />
Journal, June 29, 1999, B.1., Eastern edition. <br />
44<br />
Wilke, Mike. “Ad Survey Shows Appeal of Gay <strong>The</strong>mes.” Advertising Age, May 6, 1996. <br />
45<br />
Wilke, Mike. “United is First Major Airline to Target Gays: Advocate Included in Media Plan for New Ad Push.”<br />
Advertising Age, June 2, 1997. <br />
46 Wilke, Mike. “Target Focus: AmEx and Bud Light First Ran Mainstream Ads in Gay Markets Before Creating<br />
Gay-Specific Advertising.” Advertising Age, June 22, 1998. <br />
47 Ibid. <br />
48 Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
49 Wilke, Mike. “Gay Print Media Ad Revenue Up 36%: Mulryan/Nash Research Projects $100.2 Million in<br />
Revenues.” Advertising Age, October 6, 1997. <br />
50 Ibid. <br />
51 Wilke, Mike. “Target Focus: AmEx and Bud Light First Ran Mainstream Ads in Gay Markets Before Creating<br />
Gay-Specific Advertising.” Advertising Age, June 22, 1998. <br />
52 Wilke, Mike and Applebaum, Michael. “Peering Out of the Closet.” Brandweek, November 5, 2001. <br />
53 Ibid. <br />
54 Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
55 Wilke, Mike. “Ikea Revisits Gay Couples, While Southwest Airlines, Sears and Sprint.” Commercial Closet<br />
Association, http://www.commercialcloset.org (accessed December 6, 2009). <br />
56 Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
57 Wilke, Mike. “AT&T Calls Gays Back.” Commercial Closet Association, http://www.commercialcloset.org<br />
(accessed December 6, 2009). <br />
58 Wilke, Mike. “Sponsors Ponder ‘Ellen” Plotline.” Advertising Age, October 7, 1996. <br />
59<br />
Ibid. <br />
60<br />
Halliday, Jean. “Gay Ride.” Advertising Age, February 25, 2002. <br />
61<br />
Wilke, Mike and Applebaum, Michael. “Peering Out of the Closet.” Brandweek, November 5, 2001. <br />
62<br />
Wilke, Mike. “Volkswagen, Volvo and Jaguar Make Gay Drive.” Commercial Closet Association, July 20, 2001,<br />
http://www. commercialcloset.org (accessed December 6, 2009). <br />
63<br />
Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
64<br />
Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
65<br />
Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, p. 1, Late Edition. <br />
66<br />
Wilke, Mike. “Big Advertisers Join Move to Embrace Gay Market.” Advertising Age, August 4, 1997. <br />
67<br />
Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
68<br />
LaMuraglia, Joe. “Pride and Prejudice: <strong>The</strong> Auto Industry and ‘<strong>The</strong> Gays.’” Between the Lines, October 16, 2008,<br />
p. 25. <br />
69 Prince, C.J. “Designated Driver.” <strong>The</strong> Advocate, March 18, 2003, p. 31. <br />
70 Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
71 Wilke, Mike. “Volkswagen, Volvo and Jaguar Make Gay Drive.” Commercial Closet Association, July 20, 2001,<br />
http://www. commercialcloset.org (accessed December 6, 2009). <br />
72 Alsop, Ronald. “Cracking the Gay Market Code: How Marketers Plant Subtle Symbols in Ads.” Wall Street<br />
Journal, June 29, 1999, B.1., Eastern edition. <br />
73 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, pg. 1, Late Edition. <br />
<br />
37
<br />
74 Halliday, Jean. “Cadillac Takes Tentative Step Toward Targeting Gay Market.” Advertising Age, February 2,<br />
2004. <br />
75 Elliott, Stuart. “A Niche No More: Gay Celebrities are in Demand as Endorsers for Mainstream Campaigns.” New<br />
York Times, March 10, 2004, p. 5, Late Edition. <br />
76 Fuji Heavy Industries, Ltd. “Guide to FHI: Aerospace Company.” http://www.fhi.co.jp/english/outline/section<br />
/aero.html (accessed December 6, 2009). <br />
77 <strong>Subaru</strong> Global. “Origin of the Name <strong>Subaru</strong>.” http://www.subaru-global.com/origin_name.html (accessed<br />
December 6, 2009). <br />
78 Fuji Heavy Industries, Ltd. “Corporate Overview.” http://www.fhi.co.jp/english/outline/inoutline/index.html<br />
(accessed December 6, 2009). <br />
79 Fuji Heavy Industries, Ltd. “Guide to FHI: <strong>Subaru</strong> Automotive Business.” http://www.fhi.co.jp/english/outline/<br />
section/car.html (accessed December 6, 2009). <br />
80 <strong>Subaru</strong>. Company. http://www.subaru.com/company/index.html (accessed December 6, 2009). <br />
81 Ibid. <br />
82 Shimizu, Kaho. “Toyota to Buy Fuji Shares in GM Selloff.” <strong>The</strong> Japanese Times Online, October 6, 2005,<br />
http://search.japantimes.co.jp/member/member.html?nn20051006a1.htm (accessed December 6, 2009). <br />
83 Hakim, Danny. “General Motors Plans to Sell Its Stake in <strong>Subaru</strong>'s Parent.” New York Times, October 6, 2005. <br />
84 Shimizu, Kaho. “Toyota to Buy Fuji Shares in GM Selloff.” <strong>The</strong> Japanese Times Online, October 6, 2005,<br />
http://search.japantimes.co.jp/member/member.html?nn20051006a1.htm (accessed December 6, 2009). <br />
85 <strong>Subaru</strong> of Indiana Automotive Inc. “History of <strong>Subaru</strong> of Indiana Automotive.” http://www.subarusia.com/company/history/index.html<br />
(accessed December 6, 2009). <br />
86 Fuji Heavy Industries, Ltd. “<strong>Subaru</strong> Automotive Business.” http://www.fhi.co.jp/english/ir/report/pdf/fact<br />
/fact_2009e_05.pdf (accessed December 6, 2009). <br />
87 <strong>Subaru</strong>. Company. http://www.subaru.com/company/index.html (accessed December 6, 2009). <br />
88 <strong>Subaru</strong>. “National Car Care Month.” http://www.subaru.com/company/news/2009_march.html (accessed<br />
December 6, 2009). <br />
89<br />
Fuji Heavy Industries, Ltd. “IR Reports.” http://www.fhi.co.jp/english/ir/report/ Fuji Heavy Industries, Ltd. <br />
90<br />
Fuji Heavy Industries, Ltd. “Home page.” http://www.fhi.co.jp/english/ (accessed December 6, 2009). <br />
91<br />
Wasserman, Todd. “Thrifty Fans Help <strong>Subaru</strong> Weather the Recession.” Brandweek, September 19, 2009. <br />
92<br />
<strong>Subaru</strong> Global. “<strong>Subaru</strong> of America, Inc. Reports Best October Ever with a 41-Percent Sales Gain.”<br />
http://www.subaru-global.com/news2009n000954.html (accessed December 6, 2009). <br />
93<br />
<strong>Subaru</strong> Global. “<strong>Subaru</strong> of America, Inc. Reports All-Time Sales Records.” http://www.subaruglobal.com/news2009n000941.html<br />
(accessed December 6, 2009). <br />
94<br />
Halliday, Jean. “<strong>Subaru</strong> of America: an America's Hottest Brands <strong>Case</strong> <strong>Study</strong>.” Advertising Age, November 16,<br />
2009. <br />
95<br />
<strong>Subaru</strong>. “Find Your <strong>Subaru</strong>.” http://www.subaru.com/vehicles/index.html (accessed December 6, 2009). <br />
96<br />
Wasserman, Todd. “Thrifty Fans Help <strong>Subaru</strong> Weather the Recession.” Brandweek, September 19, 2009. <br />
97<br />
Elliott, Stuart. “A Niche No More: Gay Celebrities are in Demand as Endorsers for Mainstream Campaigns.” New<br />
York Times, March 10, 2004, p. 5, Late Edition. <br />
98 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, p. 1, Late Edition. <br />
99 Prince, C.J. “Designated Driver.” <strong>The</strong> Advocate, March 18, 2003, p. 31. <br />
100 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, p. 1, Late Edition. <br />
101 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
102 Wilke, Mike. “Target Focus: AmEx and Bud Light First Ran Mainstream Ads in Gay Markets Before Creating<br />
Gay-Specific Advertising.” Advertising Age, June 22, 1998. <br />
103 Schweinsberg, Christie. “Straight Eye for the Gay Buyer.” Ward's AutoWorld, April 23, 2004. <br />
104 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
105 Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
106 Kuhr, Fred. “Driving Sales: Car Companies Find Success Advertising To Gay Consumers and Supporting<br />
Groups that work for Equality,” <strong>The</strong> Advocate, November 9, 2004, http://www.accessmylibrary.com/article-1G1-<br />
126164421/driving-sales-car-companies.html (accessed September 29, 2009). <br />
107 Elliott, Stuart. “Trying to Connect in a Crowd.” New York Times, April 24, 2008, p. 9, Late edition. <br />
108 Anonymous. “Mulryan/Nash Closes Doors.” Advertising Age, December 22, 1999. <br />
109 Rosenberg, Janice. “Compelling Story.” Advertising Age, June 19, 2000. <br />
<br />
38
<br />
110 Elliott, Stuart. “<strong>Subaru</strong> Turns to the Land of Forbidden Secrets.” New York Times, July 10, 2007, p. 4, Late<br />
edition. <br />
111 Bush, 2007, Aug. 20 <br />
112 Advertising Age. http://www.adage.com (accessed December 6, 2009). <br />
113 Tierney, John. “Your Car: Politics on Wheels.” New York Times, April 1, 2005. <br />
114 Elliott, Stuart. “Trying to Connect in a Crowd.” New York Times, April 24, 2008, p. 9, Late edition. <br />
115 Wasserman, Todd. “Thrifty Fans Help <strong>Subaru</strong> Weather the Recession.” Brandweek, September 19, 2009. <br />
116 Ibid. <br />
117 Ibid. <br />
118 Ibid. <br />
119 Ebenkamp, Becky. “<strong>Study</strong> Identifies the Least Price-Sensitive Consumers.” Brandweek, September 19, 2009. <br />
120 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
121 Che, Cathay. “Martina Navratilova: A Winner at More than Tennis, She has Raised $1 Million for Gay Causes<br />
with the Rainbow Credit Card.” <strong>The</strong> Advocate, April 25, 2000. <br />
122 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, pg. 1, Late Edition. <br />
123 Wilke, Mike. “<strong>Subaru</strong> Adds Lesbians to Niche Marketing Drive.” Advertising Age, March 4, 1996. <br />
124 Ibid. <br />
125 Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
126 Ibid. <br />
127 Logo Online. “Logo Legacy Campaign.” http://www.logoonline.com/shows/events/legacy-campaign/ (accessed<br />
December 6, 2009). <br />
128 Halliday, Jean. “Gay Ride.” Advertising Age, February 25, 2002. <br />
129 Wilke, Mike. “Gay-Coded <strong>Subaru</strong> Ads Return to Mainstream.” Commercial Closet Association, April 18, 2002,<br />
http://www.commercialcloset.org (accessed December 6, 2009). <br />
130 Palmer, Kimberly Shearer. “Gay Consumers in the Driver's Seat: <strong>Subaru</strong>'s New Ad Campaign is Among Those<br />
Signaling to Homosexual Buyers.” Washington Post, July 4, 2000, http://infoweb.news bank.com.libproxy.lib.<br />
unc.edu/iw-search/we/InfoWeb?p_product=NewsBank&p_theme= aggregated5&p_action=doc&p_docid=<br />
0EB2C4435DA842E0&p_docnum=1&p_queryname=1 (accessed October 19, 2009); Kuhr, Fred. “Driving Sales:<br />
Car Companies Find Success Advertising To Gay Consumers and Supporting Groups that work for Equality,” <strong>The</strong><br />
Advocate, November 9, 2004, http://www.accessmylibrary.com/article-1G1-126164421/driving-sales-carcompanies.html<br />
(accessed September 29, 2009). <br />
131 Alsop, Ronald. “Cracking the Gay Market Code: How Marketers Plant Subtle Symbols in Ads.” Wall Street<br />
Journal, June 29, 1999, B.1., Eastern edition. <br />
132 Curry, Sheree R. “Mulryan/Nash Vet Out on Own.” Advertising Age, June 19, 2000. <br />
133 Alsop, Ronald. “Cracking the Gay Market Code: How Marketers Plant Subtle Symbols in Ads.” Wall Street<br />
Journal, June 29, 1999, B.1., Eastern edition. <br />
134 Usborne, David. “Pink Smoke and Secret Codes in Battle for the Gay Dollar.” <strong>The</strong> Independent, July 9, 2000. <br />
135 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, pg. 1, Late Edition. <br />
136 Fitzgerald, Kate. “Highly Targeted Interests Drive Magazine Growth.” Advertising Age, June 19, 2000. <br />
137 <strong>The</strong> Auto Channel. “<strong>Subaru</strong> of America, Inc. Offers Expanded Benefits for Employees.” http://www.theauto<br />
channel.com/news/press/date/20000523/press016384.html (accessed December 6, 2009). <br />
138 Zammit, Deanna. “<strong>Subaru</strong> Mainstreams Its 'G-and-L' Advertising.” Adweek, November 10, 2003. <br />
139 Steinberg, Don. “From Cyclist to Symbol: More and More, Lance Armstrong is Becoming a Marketable Man.”<br />
Philadelphia Inquirer, July 24, 2004, p. A1, City Edition. <br />
140 Prince, C.J. “Designated Driver.” <strong>The</strong> Advocate, March 18, 2003, p. 31. <br />
141 Suris, Oscar. “Mum's the Word in <strong>Subaru</strong> Ads for Gays.” Wall Street Journal, March 22, 1996, B2, Eastern<br />
Edition. <br />
142 Goldstein, Josh and Raghavan, Sudarsan. “An Event All About Getting Together: A Party Ends a Week that<br />
Showed the Strength and Diversity of the City’s Gay and Lesbian Community.” Philadelphia Inquirer, May 3,<br />
1999, p. B1, SF City Edition. <br />
143 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, pg. 1, Late Edition. <br />
144 Jones, Jerry. “Atlanta Pride Marshals Announced.” Out and About Newspaper, April 1, 2006, http://www.out<br />
andaboutnewspaper.com/article/463 (accessed December 6, 2009). <br />
<br />
39
<br />
145 “2008 Sponsors of Milwaukee Pride Parade.” http://www.prideparade mke.org/Sponsors/sponsors.htm (accessed<br />
December 6, 2009). <br />
146 Out Takes Dallas. “Our History.” http://www.outtakesdallas.org/history.html (accessed December 6, 2009). <br />
147 Wilke, Mike. “Gay-Coded <strong>Subaru</strong> Ads Return to Mainstream.” Commercial Closet Association, April 18, 2002,<br />
http://www.commercialcloset.org (accessed December 6, 2009). <br />
148 ChicagoPride.com. “Chicago Lesbian and Gay International Film Festival through Thursday.” November 7,<br />
2003, http://www.chicagopride.com/news/article.cfm/articleid/1028961 (accessed December 6, 2009). <br />
149 Linnett, Richard. “Same Sex, Same Car.” Advertising Age, March 31, 2004. <br />
150 Sklar, Roberta. “National Gay and Lesbian Task Force Announces First Annual Advocate Golf Classic Presented<br />
by <strong>Subaru</strong>.” National Gay and Lesbian Task Force, August 4, 2004, http://www.thetaskforce.org/press/releases<br />
/pr721_080404 (accessed December 6, 2009). <br />
151 Behrens Web. “Run Through the Jungle.” <strong>The</strong> Advocate, May 13, 2003, p. 61. <br />
152 Adams, Bob. “Keeping It Real.” <strong>The</strong> Advocate, April 1, 2002, p. 34. <br />
153 Elliott, Stuart. “Martina Navratilova in a Campaign for <strong>Subaru</strong>.” New York Times, March 13, 2000. <br />
154 Motavalli, Jim. “Gay-Friendly Cars: Is <strong>Subaru</strong> Number One?” bNet, April 17, 2009, http://industry.bnet.<br />
com/auto/10001205/gay-friendly-cars-is-subaru-number-one/ (accessed December 6, 2009). <br />
155 Linnett, Richard. “Same Sex, Same Car.” Advertising Age, March 31, 2004. <br />
156 Ebenkamp, Becky. “<strong>Study</strong> Identifies the Least Price-Sensitive Consumers.” Brandweek, September 19, 2009. <br />
157 <strong>Subaru</strong>. “Our Partners.” http://www.subaru.com/company/partnerships/index.html (accessed December 6, 2009). <br />
158 Dining Out for Life. http://www.diningoutforlife.com/ (accessed December 6, 2009). <br />
159 Wilke, Michael. “Gay Radio and <strong>Subaru</strong> Get Sirius On Satellite.” Commercial Closet Association, September 10,<br />
2004, http://www.commercialcloset.org (accessed December 6, 2009). <br />
160 Larson, Megan. “MTV Networks Delays Logo Launch.” Mediaweek, January 13, 2005. <br />
161 Wilke, Michael. “<strong>Subaru</strong> Adds Custom TV for 10 th Year of Gay Marketing.” Commercial Closet Association,<br />
November 9, 2005, http://www.commercialcloset.org/common/news/reports/detail.cfm?Classification= news &QID<br />
=4543& ClientID=11064&BrowseFlag=1&Keyword=&StartRow=11&TopicID=405&subnav= adcolumn& sub<br />
section= (accessed on December 19, 2009). <br />
162 Elliott, Stuart. “Hey, Gay Spender, Marketers Spending Time With You.” New York Times, June 26, 2006, p. 8,<br />
Late edition. <br />
163 Crupi, Anthony. “<strong>Subaru</strong> Revs Up Branding Campaign on Logo.” Mediaweek, October 3, 2005. <br />
164 Wilke, Michael. “<strong>Subaru</strong> Adds Custom TV for 10 th Year of Gay Marketing.” Commercial Closet Association,<br />
November 9, 2005, http://www.commercialcloset.org/common/news/reports/detail.cfm?Classification= news&QID<br />
=4543& ClientID=11064&BrowseFlag=1&Keyword=&StartRow=11&TopicID=405&subnav=adcolumn& sub<br />
section= (accessed on December 19, 2009). <br />
165 Elliott, Stuart. “Hey, Gay Spender, Marketers Spending Time With You.” New York Times, June 26, 2006, p. 8,<br />
Late edition. <br />
166 Story, Louise. “Marketers Struggle To Get Viewers to Linger For the Commercials.” New York Times, May 22,<br />
2007, p. 6, Late edition. <br />
167 Crupi, Anthony. “Logo, <strong>Subaru</strong> Partner on ‘Legacy’ Campaign.” Mediaweek, September 30, 2009. <br />
168 Human Rights Campaign. “Corporate Equality Index.” http://www.hrc.org/issues/workplace/cei.htm (accessed<br />
December 6, 2009). <br />
169 <strong>Subaru</strong> Global. “<strong>Subaru</strong> of America, Inc. Earns Top Marks in 2010 Corporate Equality Index.” September 21,<br />
2009, http://www.subaru-global.com/news2009n000945.html (accessed December 6, 2009). <br />
170 Human Rights Campaign. “Corporate Equality Index: 2009 Statements from Employers that Rated 100 Percent.”<br />
http://www.hrc.org/issues/workplace/11139.htm (accessed December 6, 2009). <br />
171 Human Rights Campaign. “Corporate Equality Index.” http://www.hrc.org/issues/workplace/cei.htm (accessed<br />
December 6, 2009). <br />
172 Anonymous. “Transitions.” <strong>The</strong> Advocate, December 6, 2005, p. 30. <br />
173 GLAAD Blog. http://glaadblog.org/tag/20th-annual-glaad-media-awards/ (accessed December 6, 2009). <br />
174 <strong>Subaru</strong> Global. “Mediapost.com Names <strong>Subaru</strong> of America Automotive Marketer of the Year.” December 17,<br />
2008, http://www.subaru-global.com/news2008n000876.html (accessed on December 6, 2009). <br />
175 Brand Keys. “2009 Brand Keys Customer Loyalty Engagement Index.” http://www.brandkeys.com/awards/<br />
(accessed on December 6, 2009). <br />
176 Halliday, Jean. “Gay Ride.” Advertising Age, February 25, 2002. <br />
177 Ibid. <br />
<br />
40
<br />
178 Lipsyte, Robert. “Backtalk - A Triumph of Orienteering Over Orientation for Adventure Racers.” New York<br />
Times, September 22, 2002, p. 9, Late edition. <br />
179 Williams, Alex. “Gay by Design, Or a Lifestyle Choice?” New York Times, April 12, 2007, p. 7, Late edition. <br />
180 Car Talk. “<strong>The</strong> Ultimate Gay and Lesbian Cars.” http://www.cartalk.com/content/features/Gay-Lesbian/gay-<br />
chick-winner.html (accessed on December 6, 2009). <br />
181 Donaldson-Evans, Catherine. “Fortune 500 Companies See Money in Gay Families.” Fox News,<br />
http://www.foxnews.com/story/0,2933, 120902,00.html (accessed October 19, 2009). <br />
182 Levy, Efraim. “Industry Surveys: Autos & Auto Parts.” Standard & Poor’s, June 25, 2009, http://www.net<br />
advantage.standardandpoors.com.libproxy.lib.unc.edu/NASApp/NetAdvantage/showIndustrySurvsh.do?task=showI<br />
ndustrySurvey&type=pdf&code=aup (accessed December 6, 2009). <br />
183 Ford Motor Company. “Annual Reports.” http://www.ford.com/microsites/annual-reports (accessed on December<br />
6, 2009). <br />
184 Ford GLOBE History. “Press Releases.” http://fordglobe.org/history.html (accessed on December 6, 2009). <br />
185 Jennings, Bob. “Blue Oval Chases the Pink Dollars.” Sydney Morning Herald, August 31, 2001. <br />
186 Human Rights Campaign. “Corporate Equality Index.” http://www.hrc.org/issues/workplace/cei.htm (accessed<br />
December 6, 2009). <br />
187 Kuhr, Fred. “Driving Sales: Car Companies Find Success Advertising To Gay Consumers and Supporting<br />
Groups that work for Equality,” <strong>The</strong> Advocate, November 9, 2004, http://www.accessmylibrary.com/article-1G1-<br />
126164421/driving-sales-car-companies.html (accessed September 29, 2009). <br />
188 Ibid. <br />
189 Rothman, Cliff. “A Welcome Mat for Gay Customers.” New York Times, August 17, 2001, pg. 1, Late Edition. <br />
190 Wilke, Michael. “Jaguar Stalks Gay Market.” Commercial Closet Association, December 23, 2002, http://www.<br />
commercialcloset.org (accessed December 6, 2009). <br />
191 Ibid. <br />
192 Ibid. <br />
193 Yin, Sandra. “Coming Out in Print.” Advertising Age, February 1, 2003. <br />
194 Prince, C.J. “Designated Driver.” <strong>The</strong> Advocate, March 18, 2003, p. 31. <br />
195 Wilke, Michael. “Jaguar Stalks Gay Market.” Commercial Closet Association, December 23, 2002, http://www.<br />
commercialcloset.org (accessed December 6, 2009). <br />
196 Wilke, Michael. “Avis and Ford Seek Loyalty with Loyalty.” Commercial Closet Association, July 12, 2005,<br />
http://www. commercialcloset.org (accessed December 6, 2009). <br />
197 Solis, Dianne. “More Firms Aim <strong>The</strong>ir Ads Directly at Gays.” Dallas Morning News, July 22, 2003. <br />
198 Wilke, Michael. “Avis and Ford Seek Loyalty with Loyalty.” Commercial Closet Association, July 12, 2005,<br />
http://www. commercialcloset.org (accessed December 6, 2009). <br />
199 Wilke, Mike. “Volkswagen, Volvo and Jaguar Make Gay Drive.” Commercial Closet Association, July 20, 2001,<br />
http://www. commercialcloset.org (accessed December 6, 2009). <br />
200 Ibid. <br />
201 Ford GLOBE History. “Press Releases.” http://fordglobe.org/history.html (accessed on December 6, 2009). <br />
202 Association of National Advertisers, Inc. “2009 ANA Multicultural Excellence Awards.”<br />
http://www.ana.net/committees2/content/multiawards2009 (accessed December 6, 2009). <br />
203 Kuhr, Fred. “Driving Sales: Car Companies Find Success Advertising To Gay Consumers and Supporting<br />
Groups that work for Equality,” <strong>The</strong> Advocate, November 9, 2004, http://www.accessmylibrary.com/article-1G1-<br />
126164421/driving-sales-car-companies.html (accessed September 29, 2009). <br />
204 Wilke, Michael. “Volvo Bids for Gay Families.” Commercial Closet Association, May 6, 2003, http://www.<br />
commercialcloset.org (accessed December 6, 2009). <br />
205 Wilke, Michael. “Jaguar Stalks Gay Market.” Commercial Closet Association, December 23, 2002, http://www.<br />
commercialcloset.org (accessed December 6, 2009). <br />
206 Wilke, Michael. “Volvo Bids for Gay Families.” Commercial Closet Association, May 6, 2003, http://www.<br />
commercialcloset.org (accessed December 6, 2009). <br />
207 Roberts, Cindy. “AFA Suspends Ford Boycott for Six Months.” American Family Association Press Release,<br />
June 6, 2005, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3204 (accessed December 6, 2009). <br />
208 Johnson, Alex. “Another Swing of the Pocketbook: Christian Activist Group goes after Ford Motor Co.”<br />
MSNBC, June 1, 2005, http://www.msnbc.msn.com/id/8047423/ (accessed December 6, 2009). <br />
209 Hyde, Justin. “Antigay Groups Boycott Ford: Coalition Says Ads Threaten Values.” Detroit Free Press, March<br />
14, 2006. <br />
<br />
41
<br />
210 Johnson, Alex. “Another Swing of the Pocketbook: Christian Activist Group goes after Ford Motor Co.”<br />
MSNBC, June 1, 2005, http://www.msnbc.msn.com/id/8047423/ (accessed December 6, 2009). <br />
211 Ibid. <br />
212 Ibid. <br />
213 Popely, Rick. “Ford to Pull Jaguar, Land Rover Ads from Gay Press.” Chicago Tribune, December 7, 2005. <br />
214 Incantalupo, Tom. “Groups Upset with Ford Decision to Pull Ads from Gay Magazines.” Newsday, December 7,<br />
2005. <br />
215 American Family Association. http://www.afa.net/fordletter.asp (accessed December 6, 2009). <br />
216 Sostek, Anya. “Gay Advocates Blast Ford’s Pulling of Ads.” Pittsburgh Post-Gazette, December 7, 2005. <br />
217 Peters, Jeremy W. “Under Pressure, Ford Will Cut Its Ads in Gay Publications.” New York Times, December 6,<br />
2005, p. 10, Late edition. <br />
218 Popely, Rick. “Ford to Pull Jaguar, Land Rover Ads from Gay Press.” Chicago Tribune, December 7, 2005. <br />
219<br />
Ibid. <br />
220<br />
Anonymous. “Ford Dumps Gay Ads.” Melbourne Herald Sun, December 8, 2005. <br />
221<br />
Anonymous. “Jaguar, Land Rover Ads Not for Gays; Ford Denies Buckling to Conservative Groups.” Hamilton<br />
Spectator, December 7, 2005. <br />
222<br />
Incantalupo, Tom. “Groups Upset with Ford Decision to Pull Ads from Gay Magazines.” Newsday, December 7,<br />
2005. <br />
223 Popely, Rick. “Ford to Pull Jaguar, Land Rover Ads from Gay Press.” Chicago Tribune, December 7, 2005. <br />
224 Ibid. <br />
225 Roberts, Cindy. “Ford Boycott Ended.” American Family Association Press Release, November 30, 2005,<br />
http://media.afa.net/newdesign/ReleaseDetail.asp?id=3316 (accessed December 6, 2009). <br />
226 Hyde, Justin. “Group Says Boycott Hit Ford Sales: Automaker Counters Antigay Association’s Claims as False.”<br />
Detroit Free Press, July 13, 2006. <br />
227 Incantalupo, Tom. “Groups Upset with Ford Decision to Pull Ads from Gay Magazines.” Newsday, December 7,<br />
2005. <br />
228 Peters, Jeremy W. “Gays Pressure Ford to Reject Boycott Group.” New York Times, December 13, 2005, p. 4,<br />
Late edition. <br />
229 Sostek, Anya. “Gay Advocates Blast Ford’s Pulling of Ads.” Pittsburgh Post-Gazette, December 7, 2005. <br />
230 Buchanan, Wyatt. “Ford, Gay Rights Leaders to Meet on Ad Pullout.” San Francisco Chronicle, December 10,<br />
2005, p. A2, Final edition. <br />
231 Peters, Jeremy W. “Gays Pressure Ford to Reject Boycott Group.” New York Times, December 13, 2005, p. 4,<br />
Late edition. <br />
232 Popely, Rick. “Ford Reverses Direction on Gay Publications: Automaker Planning to Resume Advertising.”<br />
Chicago Tribune, December 15, 2005. <br />
233<br />
Peters, Jeremy W. “Ford, Reversing Decision, Will Run Ads in Gay Press.” New York Times, December 15,<br />
2005, p. 4, Late edition. <br />
234<br />
Hyde, Justin. “Ford to Run Corporate-Wide Ads in Gay Publications: Automaker Responds to Complaints.”<br />
Detroit Free Press, December 15, 2005. <br />
235<br />
http://media.afa.net/newdesign/ReleaseDetail.asp?id=3336 <br />
236<br />
Anonymous. “Wheels Keep Turning in Ford Motor’s Ad Saga.” Wall Street Jounral, December 16, 2005, p. B4. <br />
237 Ibid. <br />
238 Roberts, Cindy. “Nineteen Pro-Family Organizations Call for Boycott of Ford Motor Company.” American<br />
Family Association Press Release, March 13, 2006, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3400<br />
(accessed December 6, 2009). <br />
239 Roberts, Cindy. “Ford Stock and Sales Going Down, Support for Homosexual Marriage Still Strong.” American<br />
Family Association Press Release, April 18, 2006, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3440<br />
(accessed December 6, 2009). <br />
240 Roberts, Cindy. “AFA Says Boycott Continues to Hurt Ford Sales.” American Family Association Press Release,<br />
September 1, 2006, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3484 (accessed December 6, 2009). <br />
241 Roberts, Cindy. “AFA Says Boycott Helps Drop Ford Sales.” American Family Association Press Release,<br />
January 3, 2008, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3580 (accessed December 6, 2009). <br />
242 Hyde, Justin. “Group Says Boycott Hit Ford Sales: Automaker Counters Antigay Association’s Claims as False.”<br />
Detroit Free Press, July 13, 2006. <br />
<br />
42
<br />
243 Roberts, Cindy. “Ford Meets Conditions; AFA Suspends Boycott.” American Family Association Press Release,<br />
March 10, 2008, http://media.afa.net/newdesign/ReleaseDetail.asp?id=3584 (accessed December 6, 2009). <br />
244 Saad, Lydia. “Americans Evenly Divided on Morality of Homosexuality.” Gallup, June 1, 2008,<br />
http://www.gallup.com/poll/108115/Americans-Evenly-Divided-Morality-Homosexuality.aspx (accessed December<br />
6, 2009). <br />
245 Usborne, David. “Pink Smoke and Secret Codes in Battle for the Gay Dollar.” <strong>The</strong> Independent, July 9, 2000. <br />
246 Wasserman, Todd. “Thrifty Fans Help <strong>Subaru</strong> Weather the Recession.” Brandweek, September 19, 2009. <br />
<br />
43