Marketing To The Pink Pound
Marketing Week chose a typically unusual venue for its Marketing to the Pink Economy conference; Bass’s new gay bar in the heart of Soho, The Rupert Street Bar.
Teddy Witherington, festival and commercial director, the Pride Production Company and Kim Watson, marketing director, Millivres, kick-started the day’s proceedings. They began by looking at how big the gay community is in Britain; it is estimated that between 6 and 10% of the UK population are gay or lesbian. The pink economy is worth about £6 billion, so it is a market worth breaking into. The majority of gay people earn over the national average income and, as they often have a double income per household and no dependents, they have a higher than average disposable income.
Watson emphasised the importance of working with the gay community. “To target them effectively means understanding and recognising their outlook as more than just a passing fad and to show genuine intent when pitching for their custom.” Witherington used the success of Virgin Megastore’s gay shopping evenings as an example.
David James, research director, Cato Consulting, then took to the stand. James’ lively stream of personal anecdotes and amusing slides illustrated how much of mainstream advertising is actually subconsciously aimed at gay men. He showed an advert for Ralph Lauren paint and asked who else but a gay man would buy designer paint? James also highlighted the diversity of the gay community: “There are many different tribes, it is important to target the leaders of these different group and the rest will follow.”
Stephen Coote, from the Gay Business Association reinforced this view. He said that many gay people are not overtly gay, and that the vast majority of gay people do not read the gay press, so they are very hard group to target. Coote argued that it is very important for companies targeting the gay community to have a positive attitude towards gays which runs through the company. Levis, for example, has pension plans adapted for gay couples.
Bass Tavern is a company that has embraced the gay market, it exploits it commercially, but it also works with the gay community and tries to give it something back. Jillian Maclean, retail business manager at Bass, said that Bass’s gay bars are the company’s most profitable; with Compton’s of Soho being the most popular overall. Each Bass gay bar tries to be different and aims at a different section of the community.
“It is important to identify a niche within a niche” advised Sion Keeling-Dean, chairman of Freedom Radio and co-founder Mosaic TV. “The gay market is a microcosm of the market as a whole with a lager disposable income. It is a mature market ready for exploitation, with a diverse range of marketing opportunities.” He finished up by saying: “Asking not what you can do for the Gay community – Ask what the Pink Economy can do for you?”
United Airlines is well on the way towards answering this question, United has been working with the Pride Trust to develop status as preferred carrier to Pride Festivals worldwide. Maureen Sprott, marketer, United Airlines, said that the unique marketing partnership benefited the airline, Pride and the customer. They also provide access to specialist travel and tourism information for the gay traveller.