1,51011) methods and boddinrq I,

Media used to Retail promotion Television

reach them ('dot Font

Radio Direct sales

How they relate Dijital Allots Digital Immigrants

to technology

How they view brends Then & Now Then - a mattssler of

A prmluct identttier tntst

anti a ntaticor of Now—a

hoof diminishing loyalty

Slogans of their limes Ford: Volkswagen:

"Freedom for the "A Volkswagen is

woman who owns never changed to

Find" make it look

ddtemnf only to

make it work better"

Peecontpopulation 13 24

Woikforce now 2 36

Workforce 2020 (pc) 0 16

Adapted from McCridle and Wollinger, 2009, McCridle and Seard, 2001

Technical success

Marketing the wine industry to different generations

What if our marketing efforts miss the market altogether?

John Ryan

Centre for Wine Excellence

Department of Environment and Agriculture

School of Science

Curtin University

PMB 1

Margaret River, WA 6285

Mark Gibberd

Centre for Wine Excellence

Department of Environment and Agriculture

School of Science

Curtin University

Marketing

research profiles will need to alter drastically to persuade Generatlee V to gtadaote from alcnpspn and beet to wine rather than to beer and spirits.

Builders Boomers Den X Den Y/Gen Z

Telling it Selling it Questioning it Protesting it T 1-111 future of the wine industry will

depend increavingly on todays young

people. What if the marketing messages

completely miss thent? Are different

generations fundatnentatty different? Older

people (the first author is a senior Builder,

and the second is Generation X) are often

bemused by the changes in technological

savvy, valttev, expectations and behaviour of

younger people. Is this something new? The

answer is probably yes and the dislocation

reflects very real differences in generations.

This paper will define and examine the

getlerations, and then discuss the different

marketing strategies which should attract

each group.

The GeneratIons

'l'oday generational cohorts are changing

rapidly and being defined by new

tectanologies, changing career and study

options and staifting societal values. Current

definitions refer to a cohort of people born

within a similar span of time (around 15

years), who share a comparable age and life

stage and were shaped by a particular period.

Six distinctive generational cohorts have

emerged in the last 80 odd years (McCrindle

and Beard, 2007) (McCrindle and Wolfinger,

21109).

Builders

Born betweett 1925 and 1946 and

sometimes referred to as the 1.ucky

Generation, (Mackay, 1997) Builders are

largely the parents of the next two

generations. The dominant influences on

thetn were the Great Depression and World

War It (for which they were too young to

participate). The tough times endured by

their parents said the austerity of the 1930s

and the war years gave them a strong svork

ethic, fittancial conservatism, respect for

authority figures and commitment to a boss,

industry or brand. After World War It, this

generation shared in the boomitag prosperity

and found it easy to access jobs, higher

education and success because they were in

short supply. This, combined with their

seemingly illogical cotaservatism, has

enabled them to accumulate wealth and

generally enjoy a cotnfortable rettrenaent.

i'heir value systems influenced Inot always

successfultyl their children, the Baby

Boomers (McCrindte and Beard, 2007).

Baby Boomers (1946-64)

The end of World War II was seen as a key

social marker in the western world of the

twentieth century. 'the Depression and the

war years were replaced by ecottomic growth

and full employment. Technological

advancennent, no doubt accelerated by the

demands of war, ended austeriey and

brought increasing freedona. (McCrindle and

Beard, 2007) Muds more importantly, it

ushered in an unparalleled baby boom and

immigration programnae, particularly its

Canada, the United States, New Zealand and

Attstralia (Foot and Stoffman, 2000).The

fertility rate rose rapidly between 1946 and

1961, thets fell to just below the 1946 level by

1965. These changes very clearly delineated

the Baby Roomer generation (McCrindle and

Beard, 2007). This is the wealthiest living

generation and is moving from the wrrrkfrirce

into retirement and major changes of

lifestyle. In their younger days, Brlw

Boonters were hedonistic, rebellious and

dedicated to freedom. They were arid are

hard working, they work longer and retite

How they learn Passive

What appeals to them Aut)torilariatt

Sense of duty

and loyalty

Artjumeslise

Apologixtic

How messages

Naive images and

were/are

cnpy blending

executed

emotrve and rational

appeals

later. Their value systems pit)' sortie tribute to

their Buikter parents, and will at least be

available to their Gen Y children, many of

tvltotnm are still living at Inome.

1 eneration X (1965-1979)

Sometimes referred to as Baby Busters

toot and Stoffniams, 20001 or the Options

(eneration (Mackay, 1997). The tower

fertility rates reflected the adoptiota of the

lii rth control pill, greater participation of

ivomen in the workforce and the trend

towards postponing childbirth (Foot and

btoffman, 21100). After the post Baby Boomer

nw, births (leaked in the early 1970s before

rIropping back to another low in 1979. The

peak year's births of 1972 stood for three

(evades although the population was by

lien Ott per cent larger than in 1972 . This

generation has faceri a much less buoyant

r'niploymuent environment, and is facing

lower levels of opportunity. Gen Xers are

ouch less trusting of governments and

employers. They face mortgage seress and

lmigtm debt levels, This is the generation

which, in tlneir teens, have had to adapt to

internet technology.

Generation Y (1980-1995)

Sometimes labelled as ttae 'Echo Boom'

(Foot and Stoffman, 2000), or the Net

Generation )iivpscott, 2009). They are

getterally the children of the Baby Bootners A

key feature of this and sutsequent

generatiotts is that they were born with

internet tectinology developed and available.

They are sonaerintes referred to as Digttal

Natives. They appear to be fundamentally

differene to previous generations, to the

point that some experts believe their broins

are wired differently (Tapscott, 2009). Their

unprecedented access to information and to

communication places them in global

networks of their peers. t-lalf of them live in

the tarental home (McCrindle and Wotfinger,

2009(. They have and use internet access to

be completely informed on products and

services before committing to buy, and they

Formal Programmed Interactive

Monologue Dialogue Multi-media

fhahorial-Factuul Rshelhinoo poxtering Spostaneoas

Tec)tnical data Multi-tensory

Evidence Participatory

Product compari005 Anti-ado

Demonstration Visual exatnp)es

Pop culture

let eresces

Television

Font

Digital Maptives Digital Natives

A philosophy A commesity

hike: ItmuTabe

"lant not a target "Broadcast

market. I oman yourself"

athlete"

2) 21/19

44 18/0

37 35/12

Eaperimentsl

marketing: viral

ambient, stunt

Web commuitities with user

generated contest

(i.e. Ynulube,

Myflpace etc.)

Internet

SMS

32 GrapeGrowers & Vignerons August 2010

Marketirrg appteaches which engage Balmy Booiir,,-ei tourism esperience. Showing the start behiird the wine and buildurq the toni mu: eopi'nemmm.e will 41151:1111010 COiI000IUlS

ii:,..] C , .. ,.r::,Jr 11W l:itii I•:: Jt,i, FC:.:::. ICI: I[:CC

Technical success scant a say in how their needs are met. They have high, perhaps unrealistic, expectations of rapid advancement. They will seek fluid working and career arrangements. They put enjoyment before commitment and see friends as the new family. They are possibly the first global community. This generation's attitudes to co-innovation are already influencing the way some major organisations go about their business (Tapscott and Williams, 2006).

Generation Z This generation is variously defined

as ranging from 1995-2007 (Tapscott, 2009), (McCrindle and Beard, 2007), or 1995-2010 (Foot and Stoffman, 2000). These small variations reflect the absence of up-to-date data. In Australia, the Generation Z definition reflects the decline in fertility rates over the last few decades. Up-to-date information on births confirms that the upturn in fertility observed in 2006 has continued through to 2009. Given that Generation Z will consist largely of the children of Generation X, it is fair to speculate that the very latest generation (Alpha) is seeing the entry of Generation Y into child-bearing around 2007 in Australia. From a marketing perspective, Gen Zers are stilt in their childhood or early teens. They will en)oy all the empowerment and sophistication provided by technology, a global community perspective and hovering parents.

Generation Alpha (McCrindte and Beard, 2007).

This latest generation, just born, or, at least, less than three years of age,

will be the children of Generation Y and will herald the first complete families of so-called Digital Natives.

Marketing to the Generations Generational awareness has a place

in the marketing profile of any organisation, particularly one which is going beyond products and services to offer unique experiences to consumers (Pine and Gilmore, 1999). Some understanding of the values, attitudes and expectations of each generation will be invaluable in shaping marketing strategies.

The wealthiest generations are the Builders and Baby Boomers. By definition, their numbers are declining and their residual wealth will gravitate to Generations X and Y or be dissipated. Generation X is reaching an age where its members should be the backbone of the market, but it tnay lack the econonsic clout of previous generations. Generation Y. white it is undoubtedly the wave of the future, will also be the most unpredictable. Marketing approaches svhich have succeeded with Builders and Boomers may not resonate at all with Generations Y and Z, and, decreasingly with Generation X. The table to the left stimniarises Australian thinking on the different marketing approaches apprupriate to each generation.

The different approaches reflect the characteristics of each generation. There is a pattern of direct marketing media with Builders, Booiners and Xers. However, generations from V onwards use increasingly sophisticated interactive internet media to communicate with each

other and to be the most informed group in history. They rarely watch live television and tend to skip advertising when they watch recorded programmes. They typically do not read newspapers. They like to co-innovate in the development of their product experiences (Tapscott and Williams, 2006). This can only be achieved by engaging them and by using the electronic media that supports them. The four Ps - product, price, place and promotion— need to be replaced with the ABCDE of marketing to the Net Generation (V) - anyplace, brand, communication, discovery and experience )Tapscott, 2009).

An important aspect of marketing to Generation V is In remember that they are the children of the Baby Boomners. Marketing approaches which engage Baby Boomer consumers may provide leverage In introducing their children to the wine and svine tourism experience.

Marketing research profiles will need to alter drastically to persuade Generation V to graduate from alcopops and beer to wine rather than to, say, beer and spirits. Given their age

profile, the need is urgent. Generational research will need to explore the behaviour patterns, values and expectations of the new generations. This will go beyond surveys and statistics, and will require a new breed of researchers (Anderson, 2009). The wine tourism experience may be an important factor in aiding this transition (Pine and Gilmore, 1999).

The longevity of a successful marketing impact needs to be considered in generational terms. Gen Vers are now 15-30 years of age. Average Gen Yers will have 50 or so years of wine consumption if they are engaged now. Their Itaby Boomer parents have on average 20 or less years of wine consumption left if they have become committed wine consumers. Barring major social upheavals or ground-breaking technological innovations, marketing approaches which engage Generation Y can be expected to resonate with subsequent generations, just as the four Ps have largely resonated with Builders, Baby Boomers, and, to some extent, Geix Xers.

fflWIphy

ANDERSON, K. (2009) Ethnographic Research: A Key to Strategy. Harvard Business Review, 87, 24-24.

FOOT, H. K. & STOFFMAN, H. (2000) Boom, Bust & Echo: Profiting front the Demographic Shift in the 21st Century, Toronto, Stoddart Publishing Company.

MACKAY, H. (1997) Generations, Baby Roomers,

their parents and their children, Sydney, Pan Mcmillan Australia Pty ltd.

MCCRINDLE, M. & BEARD, M. (2007) Seriously Cool. Baulkhain Hills.

MCCRINDLE, M. & WOLFINGER, E. (2009) TheABC of XYZ, Understanding the Global Generations, Sydney, University of New South Wales Press Ltd.

PINE, B. J. & GILM ORE, J. H. (1999) The Experience Economy: Work is Theatre & Every Business o Stage, Boston, Massachusetts, 1-larvard Business School Press.

TAPSCO1'T, H. (2009) Grown up Digital, Hoit' the Net Generation is Changing the World, New York, McGraw-Hill.

TAPSCOT'r, H. &W1LLIAMS,A. H. (2006) Wikittomics: How Mass

Collaboration Changes

Everything, New York, Portfolio.

GrapeGrowera & Vignerons, Aagust 2010 33