markedng!to! millennials:! whatmakes! them!diﬀerent?! generational portrai… ·...

Brand Amplitude®, LLC. All Rights Reserved, 2013.

Prepared by Carol Phillips Brand Amplitude, LLC @2013 All Rights Reserved

MarkeDng to Millennials: What Makes

Them Different?

January 28, 2013


You may have read one of the dozens of think-‐pieces about the “Millennial“ generaDon. These insufferable arDcles try to somehow ascribe a couple of defining characterisDcs to an enDre group of people—usually involving how selfish or enDtled they are—but they seem to miss the point. That may or may not be true of this document, you will decide. Meanwhile, read with cauDon.


Early observers who learned to appreciate Millennials first-‐hand over past 5 years through client research, college teaching, blogging, observing and parenDng.

How do we know about Millennials?

2008-‐2013 Millennial-‐focused research & consul=ng projects: University of Notre Dame (young alumni), Hanover College, Vogue, Corona, Maple Leaf Farms, JC Penney, State of Washington NoStankYou campaign, Kate Spade, Madewell, Tetra Pak, Sprint, ABC Family, MTV.


Millennials first began to be recognized as ‘different’ about 2003. Now they are a virtual industry.

Recognizing The Millennials


Marketers Were Slow to Respond

Denial -‐ “The main difference is technology” “Age will change them, just like it did us”

Arrogance – “I know you think you know a lot about kids, Dad, but you had be>er be ready for a shock. I don’t think you really get it! I don’t think any adult gets it!” – Chap Clark, Hurt

Genera=onal Ethnocentrism – “They are just younger versions of us”

Educators, social scienDsts, poliDcians, religious leaders and human resources professionals recognized and responded to Millennials as a unique generaDonal challenge before marketers.


Boomers Gen X Millennials Net Gen

Silents

1955 1990

Defined as much by their mindset as by their birth year, Millennials were shaped by demographics, parenDng styles, economic condiDons and cultural norms of the 90’s and 00’s.

Defining the Millennial Genera=on

Greatest

GeneraDonal divides correspond to Pew Research definiDons.


Millennial generaDon is bigger and wealthier than boomers at same Age

Millennial generaDon is the best educated generaDon of young adults

Why Millennials MaRer


Size 80 mil.

Understanding Millennials will determine future markeDng success due to their large size and acceleraDng influence.

PoliDcal Influence

Cultural Taste-‐makers

Purchasing Power

Empowered by Technology

Agents of Change

Millennials Wield Influence

“From 2009 to 2011, Millennial spending grew some 13% to $306 billion annually. DiscreRonary spending grew 10%, up to $69 billion from $62.7 billion.” (Source: YPulse)


Millennial Impact is Growing

EducaDon

Automobiles

Retailing

Dining

Already Impacted About to be Impacted

Health Care

Financial Services

Food & Beverage

Housing

VacaDon & Travel

Entertainment

News Media

Millennials are making their mark. Many categories poised for disrupDon.


§  Expecta=ons: Pervasive, on demand, customizable informaDon §  Experience: Extremes of economic prosperity and recession §  Community: GlobalizaDon and rise of true diversity – high percentage have passports

§  Emo=onal Stability: Reduced intergeneraDonal fricDon – no need to rebel

What Makes Millennials So Different?

1998-‐2001 Can’t remember a =me without computers


Millennial Connec=vity Con=nues to Climb

§  Desire community, self-‐expression, collaboraDon and sharing on a 24/7 basis §  Millennials (16-‐34) markedly increased their average internet consumpDon in 2012 from the previous year, up 25% to 25 hours a week. Some signs of social media faDgue.

§  74% of 25-‐34 year olds now own smartphones, up from 59 percent in July 2011. §  58% of teens (13-‐17) owned a smartphone Sept 2012, compared to 36% a year ago.

2004 2005 2006 2007


Millennials are o_en surprised to learn how others see them.

Dislike labels

Consider many criDcisms to be strengths.

Don’t understand reason for fricDon in the workplace

“Gen Y is just a tag [by adults] that describes how much adults have forgo>en on what it is like to be a teen.” -‐ Twi>er message

Don’t understand why the world doesn’t see things their way.

“If it’s broken, why not fix it?”-‐Blogger

Expect appreciaDon for how hard they work and what they have to offer.

“If you've got a Gen Y'er who doesn't have high expectaRons, you probably hired the wrong person.” – Bruce Tulgan, Not Everyone Gets a Trophy

“‘ImpaRence and arrogance’ are signs of ‘confidence and willingness to speak out’. What looks like ‘laziness’, is a desire for ‘balance’; ‘overreliance on technology’ is ‘efficiency.’ “-‐ CP

“Gen-‐Y behavior. @FAquila: incredible!! RT @NancyFox Intern quit in middle of a project, no warning amer making big mistake” – Twi>er message


OpDmisDc

Diverse

Frugal, price conscious

Believe in insDtuDons

Maintain close family -‐ Des, like

and admire parents

More poliDcally involved than

Gen X

Like collaboraDve, supporDve

environments

Socially conscious

Warholism -‐ Want to be rich &

famous – and think it’s possible

Distrusrul of ‘markeDng’

Digital naDves

Some Millennial Labels Have Stuck

Nostalgic Tired ’

Taking longer to ‘grow up’

Some truth to them, but beware of generalizaDons.


Millennials Behave Differently

Different media habits – early adopters of the ‘third screen’ they expect to watch what they want, when they want where they want. Internet Dme up 25% last year, although experiencing SM faDgue.

Sophis=cated food and drink preferences – more fresh fruits & vegetables, local foods, visit farmers markets, enjoy sushi and ethnic foods, wine and crat beer. High interest in cooking and gourmet foods. Many consider themselves ‘foodies’. Snack more frequently.

Different use of =me – go to bed later and sleep less, spend more Dme in sports and in reading and ‘other interests’. Millennials are chronically Dred, but actually ‘Dme rich’ relaDve to other generaDons.

Communicate differently – favor text & social media over email & telephone, less interested in Twiuer, favor Facebook though showing signs of social media faDgue.

Conscien=ous shoppers – More willing to spend Dme than money, research before they buy. Mobile shopping feels natural. Want to live within their means, abhor waste, value eco-‐friendly products and brands.


If you got an extra $1000, how much of it would you spend on each of these items?

Conscien=ous shoppers – More willing to spend Dme than money, research before they buy. Focused on paying down debt. Deplore Waste -‐ Want to live within their means, value eco-‐friendly products and brands. Expect seamless, mul=-‐channel experience -‐Mobile shopping feels natural.

Millennials Are Prac=cal, Conscien=ous Shoppers


Millennials Represent a Unique Subculture

More Liberal -‐-‐There are marked differences of opinions with earlier generaDons on cultural and poliDcal issues, religion and manners. More accepDng and tolerant, diversity is a given. Approve of gay marriage. Many have dated someone of another race. LiRle shocks them -‐ Use profanity for emphasis, not to offend. Humor is their currency, and liule is sacred.

Determined to make an impact -‐ Their early idols were young, idealisDc characters out to make a difference. Volunteer rates are soaring (although not donaDons), Teach for America and Peace Corps are experiencing record applicaDons. No. 1 avtude unifying the generaDon globally: "I would fight for a cause I believe in.“ Believe they are empowered to act. Avoid extremes and stereotypes – Does not fit tradiDonal classificaDons of hipster, trend-‐seuer or style seuer. Want style to look ‘effortless’, causes to be moderate. No genera=onal voice has emerged -‐ No individual has emerged as the voice of this generaDon. Jon Stewart is highly regarded, as much for his skepDcism as overt opinions, not all idenDfy with “Occupy Wall Street.”


Millennials Relate to Tradi=onal Values Pick three adjec6ves that best describe your values

Authen=city

Self-‐expression

Adventure

Caring

Meaning

20-‐24 year old women

A Model Rela=onship Equal & Devoted

Millennials aspire to having a serious relaDonship and children, but not necessarily marriage -‐-‐ at least not right away.

Millennials say they are spiritual, but are less likely to affiliate with a religion.

Source: Pew Research


What MaRers to Millennials Now

Rela=onships and Social Issues -‐-‐Facebook is primarily a social medium, if it’s not on Facebook, SnapChat or Instagram, it didn’t happen.

“What people have long cared most about are their connecRons with other people. As a result, it's amazing that the digital world has taken this long to find value in this fundamental purpose.’

Quality of life –Living smartly, eaDng well and with respect for the planet. Food, travel and Dme for leisure are near obsessions.

Achieving & Sustaining Independence -‐ Adding to typical pressures of social acceptance are pressures to succeed and auain their parent’s lifestyle.

Concerns about funding college or coping with future debt are top of mind now. Many are burdened (or will be) by high college debt -‐ average of $27,000.

Achieving their Dreams -‐ acDvely shaping their dreams and believe they can make them come true. Most envision a flexible ‘slash’ career that sequenDally encompasses a variety of interests and allows Dme to pursue outside interests…


Willing to invest =me and money -‐ Spend average of $265 a month on groceries. Many cook at home regularly. Seek out new flavors, ethnic ingredients. Prefer fresh, organic, locally grown ingredients. Express skepDcism about chemicals, preservaDves, and excess calories. 33% say they ‘regularly’ eat foods that are cerDfied organic vs. 15% for Boomers. Look for convenience and affordability -‐ Prepared fruits and vegetables increased nearly 20% between 2006 and 2010. One-‐third of Millennials use mass merchandisers such as Target as their primary store, compared to just 23% for all adults. Buy just what’s needed. Deplore waste -‐-‐

Cooking and ea=ng well is a passion point for many Millennials

44%

51%

40%

42%

44%

46%

48%

50%

52%

I try to avoid processed foods

whenever possible.

I prefer to cook from ‘scratch’ whenever

possible.

Q: Please indicate how well each of the following statements describes you. (% Selecting

'Describes me a lot', 3-pt Scale)

Total (n=501)


Millennials can laugh at themselves and appreciate ironic, age-‐specific cultural allusions.

. .

.

Answering the same le@er three 6mes or more in a row on a Scantron test is absolutely

petrifying.

A recent study has shown that playing beer pong contributes to the spread of mono and the flu. Yeah,

if you suck at it.

I think part of a best friend's job should be to immediately clear your computer history if you

die.

There is a great need for sarcasm font.

If Carmen San Diego and Waldo ever got together, their offspring would probably just be

completely invisible.

You know you're gen-‐y when you expect a red squiggly line to show up under your handwri6ng when you misspell something

While driving yesterday I saw a banana peel in the road and ins6nc6vely swerved to avoid

it...thanks Mario Kart. I totally take back all those 6mes I

didn't want to nap when I was younger

When I meet a new girl, I'm terrified of men6oning

something she hasn't already told me but that I have learned

from some light internet stalking.

Source: “Random thoughts of people our age” -‐ Bangitout.com See also: Textsfromlastnight.com Fmylife.com Failblog.org

I would bet on any given Friday or Saturday night

more kisses begin with Miller Lites than with Kay.


Engaging Millennials is geing harder.

More Diverse -‐ interests and backgrounds are fragmenDng as enter new life stages. Fierce compe66on for their auenDon. Harder to impress -‐ overt bids for Millennial business are ridiculed.

Brands that are winning ‘walk their talk’ -‐ ethical, inspiraDonal, cool, socially conscious / responsible & sustainable, healthy, efficient, customized….they are mulD-‐faceted and explicit about their purpose.


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Carol Phillips Judy Hopelain

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