Presentation on theme: "RESEARCH OVERVIEW In the wake of the great recession, Sachs Insights embarked on an ethnographic look at life in the new economy. From August 2009 though."— Presentation transcript:
RESEARCH OVERVIEW In the wake of the great recession, Sachs Insights embarked on an ethnographic look at life in the new economy. From August 2009 though March 2010, research has been conducted in 23 markets across the United States. 31 in-depth ethnographies in: Boston, Chicago, Dallas, Los Angeles, New York City, Orlando, Philadelphia, Seattle and Washington DC. Day in the Life Ethnographies Affinity Groups with Close Friends & Family 30 Self-reported “Video Confessional” Diaries from: Atlanta, Denver, Detroit, Indianapolis, New Orleans, Orange County, and more. 150 respondents representing a range of backgrounds: Range of income, occupations, family composition, and ethnicity Some hit hard (job loss, foreclosure) Some more fortunate
THREE GENERATIONS: THREE PERSPECTIVES BOOMERS: Many do not have the financial security they worked for, hoped for, and expected at this life stage The future holds fewer opportunities – for them and their children Many feel hopeless and helpless However, some are cautiously optimistic GEN X: Many have had to put off saving for now, and hope to catch up after houses, kids, and college are paid for Their focus is on taking care of family and just getting by Most are trying to keep a positive outlook in the face of problems they see as outside their control Keeping a hopeful attitude about the future is perceived as a personal responsibility MILLENNIADULTS: They see themselves as adaptable and resilient – their lives are digital, portable, and flexible. The family safety net is frayed – taking control of their finances is a newly found point of pride Many turn to their legions of social networking friends as a safety net
COMMON THEMES ACROSS GENERATIONS Across generations, they are redefining NEEDS vs. WANTS. Luxury imagery and messaging do not resonate now – they are seen as excess and are no longer acceptable Excess is trumped by Essential Looking for the “affordable alternative” Many are focused on VALUE – thrifty behaviors that once seemed “downscale” are now points of pride (e.g., coupons, sharing savings tips) Many now see value in investing time to plan, research, and locate the right price… it feels good to spend wisely. Loyalty programs, “free” offers, double coupons and even cereal box tops are creatively leveraged and maximized. They are leveraging online resources to find and create deals. Blogs, auctions, and social networks are channels for savings.
They will “invest” in products that facilitate this transformation: TVs & Home Entertainment Systems Video Games Computers Popcorn Makers Crock-pots Sushi Sets Snacks for Sharing Alcohol… “for Guests” “IN” IS THE NEW “OUT” When it comes to dining, drinking and entertainment – home is the new “hotspot.”
GOTTA HAVE IT / SIMPLE PLEASURES Many see healthy foods as an investment in their family’s long term health and well-being – hopefully fending off future ills and medical expenses. Some purchases fall into the GOTTA HAVE IT category. Often these are justified as necessary for: PRODUCTIVITY ADDITIONAL SAVINGS HAPPINESS HEALTH SANITY SIMPLE PLEASURES are essential. They are the key to having a good day without guilt. ACCESSIBLE rather than extravagant experiences are prized. Going for coffee or drinks, being CAREFREE and SOCIAL, are simple experiences that evoke better days. However, many look forward to the a time when they can once again spend money more spontaneously, but on a SMALLER SCALE.
Although store brands are getting greater consideration, almost all have certain BRANDS they simply will not give up. BRANDS There are numerous drivers and justifications… The kids won’t eat the cheaper store brand… I’ve eaten this since I was a kid… I need this to start the day off right… If I gave this up, I’d feel like I really hit rock-bottom… It’s simply better than anything else… The price difference is insignificant…
8 SURVIVING & THRIVING IN THE NEW ECONOMY
EXCESS IS OUT – ESSENTIAL IS IN How can you be perceived as serving an essential need? Health Happiness Productivity Savings Sanity
PROVIDE OPPORTUNITIES FOR GUILT-FREE SPONTANEITY What is your special kind of “simple pleasure”?
BE SEEN AS AFFORDABLE AND ACCESSIBLE Reframe the competitive set. Is that an expensive TV… Or a bargain as a home entertainment resource? In what ways are you the “affordable alternative”?
REDEFINE LUXURY Can your brand represent quality that will last – a long-term or high-impact investment? Are there ways you to make them feel pampered without the guilt?
“IN” IS THE NEW “OUT” Can you get invited “IN”? How can you enhance the experience of Home as the new Hot Spot? What can you offer to ease cabin fever?
BE SOCIAL GIVE A LITTLE TO GET A LITTLE Get them in the door with special offers posted on Facebook, Twitter and Blogs. Mobile apps can help to find deals in the moment - bringing back some spontaneity.
LEVERAGE YOUR BRAND’S LEGACY In trying times, nostalgia brands evoke comforting memories of a carefree past where things seemed to taste better, last longer and offered simple “authentic” pleasures.
HONOR THEIR NEW BEHAVIORS Their new spending and shopping rituals are a point of pride – and these behaviors will most likely lag behind recovery. Show that you understand that they have learned a new skill and that you are a partner in this experience. (Be a Hero – Not a Hurdle)