Boomer Babies, Generation Why, Millennials, Net Generation
No precise dates when Gen Y starts and ends 1980-1995 (ages 14-29) Composed of 76 million members Mostly offspring of Baby Boomers heavily engrossed in the digital world First generation to grow up with the Internet: music downloading, chatting, blogging, shopping, etc. Younger generation is in high school/college, while older generation is entering workforce. More financially educated than other generations. According to the Diversified Investment Advisors of Purchase, 37 percent will begin their retirement savings before the age of 25; 49% confirmed that retirement benefits are very significant when starting a new job.
Never lived through a prolong period of financial stability; they don’t really understand job security or believe in social security as a means in the future. Regina Manone offers an explanation in PhilanTopic stating that Gen Y-ers “were toddlers during the great downsizing wave of the early 1980s, were in elementary and middle school during the recession of 1991, and graduated from college just in time for the dot-com bust, the Enron fiasco, and the recession that followed the terrorist attacks of September 11. Because Gen Y is the biggest generation since the Baby Boomers, it is essential that marketers excel in targeting these consumers.
Internet is their communication medium of choice; more than 3 hours a day are spent on the Internet. Very optimistic—anything is possible; high self worth, value individuality. Look for “experience” while shopping. Defer commitment and family longer compare to other generations Very selective due to so many choices— through Internet anyone can reach them, so they carefully select their top choices. Extremely educated about their choices. Gen Y-ers learn about products and services from each other the way other generations learned about products and services directly from the media. “ Eighty-two percent of Gen-Y employees agree that ‘a mother who works outside the home can have just as good a relationship with her children as a mother who is not employed’ versus 60 percent of Matures” (Families and Work Institute, 2004, p. 5). Opportunity driven; crave customization. Echo friendly; care about their community and good causes. 1 in 3 is not Caucasian: more racially and ethnically diverse than other generations. More tolerant. 3 in 4 have working mothers; 1 in 4 grew up in a single family home. Respond to ads in non-traditional places, for example at a snowboarding tournament versus TV. They don’t watch much TV Respond well to humor, irony and plain truth in advertising: authenticity drives them! They look for trust. Gen Y-ers text. They instant message. They chat on Facebook and follow each other on Twitter. They watch each other on You Tube. Even email is becoming obsolete. Gen Y thrives on change.
Face to Face Phone Call Email Instant Message/ Private Message/ Forum Post FB and Twitter Texting Frequency
Gen Y likes comfortable, interesting and engaging: they want to be understood, included, respected and accepted; shopping, technology, and community are integrated into one experience. Brand awareness > brand loyalty They regularly compare and contrast purchases online, check for deals, read the latest reviews, blog about their purchases, and utilize online coupon codes. User generated content is the key! Gen Y adults welcome healthy, well-balanced meals, recyclable containers, and organic foods. According to Wayne Best, Visa’s economist, “As Echo Boomers expand as a proportion of the American workforce and mature as consumers, they will continue to spend heavily in service industry retail categories such as restaurants, travel and entertainment.”
Cable, high-speed internet, and lattes are just as crucial as electricity and gas Ninety percent in the US own a PC; 82 percent own a cell phone. By 2015, they will have more consumer power than any other generation Generation Y is consumed by entertainment: music, internet games, cell phone ring tones, online applications, etc. Buys disposable versus repairable products Buys newest models versus a products that will last a lifetime
Land Lines (or calls to 411) Travel Agents Music Specialty Books such as Phone Books or Cook Books Source: Under 30 CEO
48% said they were savers 69% consider themselves wait-and-see shoppers 83% say they are bargain shoppers They eat out more than any other generation having the highest average weekly household expenditures on food and beverages Clothes, food, and technology are 3 main expenditures.
New generation of big spenders No longer the baby boomers Gen Y Frustrated marketers have concocted their own name for Gen Y: The Unreachables. The question I am going to answer is…What’s a marketer to do? When it comes to Generation Y
It is important to first understand Gen Y Four areas Gen Y considers before purchasing a product/service: Cheap cost Good quality Fast service The “experience” Taking this into account, how do you reach them? You need to come to them if you want to be taken seriously Concerts (Gen Y LOVE live music) Extreme sporting events Movies Hiking events Video game competitions (Cyber Athlete Professional League, GameCaster, etc.) Social networking sites (facebook, MySpace, Second Life, del.icio.us, DIGG, etc.) Tattoo parlors (36% of Gen Y have at least one tattoo)
How to earn Gen Y-ers respect? Be AUTHENTIC Gen Y-ers do not waste time on ppl that are not being real with them. Authenticity is cool You cannot directly market to them until you buy into them (value their perspective on life) You need to: Hang out with them Experience life with them Respect them You need to talk ‘with’ them not ‘at’ them!
They ignore traditional advertising Rely more on word-of-mouth “We want it now” generation Interested in immediate gratification Less brand loyal and always looking for a good value Believe their products should be customizable Loves products that let them show their individuality Multitasking Technology is the major influencer in Gen- Y buying behavior These qualities require a marketing approach that is both Sensory & Social
Sensory Five senses: Sight Hearing Smell Taste Touch Must be sold on the great taste, texture, aroma, look and quality of a food product (taste, smell, sight, and touch) Ex: They would be attracted to a new electronic music gadget by its overall design, sound quality and features (sight, touch, & hearing) Knowing this, what would be a natural media channel for Gen – Y? Social Satisfy their need for social interaction & being part of social groups Gen- Y-ers are social animals Marketers must incorporating social elements into the design of their bus. whether it is a website, retail or eating establishment. Bus. are no longer just for shopping, eating, etc. Places to meet friends Hangout Read a book Surf the Net Socialize & exchange gossip Again Facebook, YouTube, etc. are excellent examples
Internet Advertising Gen-Y spends more time online than watching TV, reading publications or newspapers. Popular sites: Online Social Communities: FaceBook, MySpace, Bebo, Twitter, Etc. Video Sharing: YouTube, Break, ManiaTV, Hulu, & MetaCafe Online news: Diggs & StumbleUpon Blogging
Marketers need to target websites where Gen Y-ers are likely to congregate & socialize Has helped take the power away from marketers and give it to the consumers Powerful tool for this gen in spreading opinions about products to their peers Social Networking sites: Host the lgest grouping of gen Y consumers that marketers will ever be able to find in one spot Give marketers wider reach in the # of consumers they can connect with Make it easier for marketers to find the subculture segment they wish to reach Promotions on these sites Joining a group - Friends can see you are a supporter of this brand Sponsoring of groups which enables them to create and control forums within their group Allows for immediate feedback
Blogging Online diaries A lot of topics from celebrity gossip to politics Another way to hear what customers are saying about your brand or a competitor’s brand Could have someone from your company blogging about your product Advertising on blogs is becoming one of the best ways to reach target consumers Blogs are popular b/c they are a stripped down approach to getting info and opinions. If marketers want to use the blogging world as a way to reach their customer, they need to do so in a way that follows the way the blogs run and not use brash sales or PR pitches
They rank the highest in joining social networking sites, viewing & uploading online videos, downloading music, playing online games, reading online blogs, & sending text messages.
Contest & Sweepstakes Crazy about winning a contest or receiving a gift Ex: iPod, concert tickets, vacations, cell phone Ex: Southwest “Ultimate Gamer” contest Paid search 90% of Gen-Yers use online search engines to find online info, news and entertainment sites Ex: Google, Yahoo & MSN Live Search Viral Marketing Vital for firms to have a great website Fully optimized for search engines and listed in all the major search engines Should have a promotional page on popular social networking and video sharing sites (link to on their website) Adding a section to their website for consumers to write reviews of their products (Likes & Dislikes) These consumers are more likely to value what is written by their peers b/c they believe them to be more truthful
Mobile Advertising Gen- Y are the biggest users of iPhones, Smartphone's, & portable multimedia devices Gen- Y prefers text message over email This is a great way to reach them but you must be careful Marketer must be certain to get permission from consumer before sending them a message No more than one text a week Experiential Marketing Values their life experiences A company that can help them enjoy their experiences may be more able to win their loyalty Sponsoring an event They want an experience with their products, something that will stimulate and touch them – something that is meaningful Ex: Coca Cola – “Happiness Clinics” Southwest – sponsored the Midnight Gaming Championship in 2008
Cause Marketing First established in 1983 by American Express in a campaign to raise money to refurbish the Statue of Liberty. Gen Y feels a greater social responsibility They are more likely to buy products from companies that support the causes that they support Gen Y believe it is their duty to make the world a better place 78% of Gen Y believe that it is companies responsibility to help them do this In order for cause marketing to be effective, it should be used as a loyalty strategy by aligning their brand with a cause that is: relevant Genuine Sustainable Appealing should be true to the company’s core brand identity. Green Marketing EX: Stony field Farms yogurt co.
Street Marketing Gen-Yers enjoy new experiences Can reach them face-to-face Ex: neighborhood promotional stunts, free product samplings, rollouts in venues lie street fairs, college campus, bars, etc. Student Fans Can enlist students for promotions and hires teens to hand out product on the streets Ex: Red Bull Can place your logos on popular computer games Tony Hawk’s Pro Skater 3
Direct Mail Publications Newspapers TV Long waits for a product Hard sell from marketers Have to make their decision on their own Dishonesty
Compare and Contrast How Competitors Target Gen Y
Nike’s emphasis was on celebrities advertising their brand; Gen Y doesn’t care about what celebrity is using Nike. They care about what their peers are saying about it. Nike’s According to USA Today study of 1,800 Gen Y- ers, “83 percent will trust a company more if it is socially/environmentally responsible” and 69 percent of Gen Y consumers consider a company's social and environmental commitment when deciding where to shop. Exploitive sweat shops and child labor controversies tarnished Gen Y’s view of Nike’s social commitment. As a result, Gen Y dislikes Nike’s business model Gen Y’s social networking represents a threat to Nike’s business practices; Gen Y’s combination of social awareness and social networking can reveal the truth about Nike’s employment practices and further tarnish the company’s image. Website Link: HereHere Zappos.com is currently the biggest online shoe store; founded in 1999. Zappos.com Built on quirky culture: laid back atmosphere, individuality, fun and happiness at work, and no dress code. The culture transcends to their customer service—which is their driving force. Gen Y loves Zappos: choices, innovative environment, and community involvement (they blog about their community involvement and engage with the public through videos and comments). They respect and relate to the way the company operates and treats its employees. The CEO only makes $36,000 a year and has a cubicle just like the other employees. They invite customers not only to share their reviews about shoes, but to post videos about their Zappos experience right on their Web site. Zappos continually innovates their image to keep up with change. Gen Y values individuality. Zappos transcends that individuality through their company culture. Website Link: HereHere
Volkswagen Volksvagen was rated on of the “12 Most Respected Gen Y Brands.” Gen Y describes VW as simple, yet fashionable. Volkswagen recognized Gen Y’s drive for lifestyle VW created GarageMaster electric guitar enabling young drivers to plug directly into VW vehicles and have a concert wherever they pleased; VW understands that Gen Y is passionate about music. Guitar is free with a purchase of a new car Gen Y relates to Vokswagen’s “fun to drive” motto They consider VW a trendsetter in green initiatives Volkswagen has a reputation of being real and authentic: two things Gen Y-ers value Volkswagen ad: LinkLink
Zipcar Milleanials don’t aspire to car ownership the way other generations do. A lot of them see a car as a liability due to high fuel costs, insurance costs, and environmental impacts. Zipcar is a car-sharing company that enables its members to rent a car per hour or per day. Zipsters view the availability and reserve a car through their cell phones, internet, or iPhone apps. Zipcar encourages cycling, walking and offers car- sharing when the vehicle is needed in a big city. Gas, maintenance, parking and insurance are all included in $8.50 per hour cost—it is a lifestyle. Zipcar focuses on accessibility, affordability, techie applications, and environmentally friendly car features: a recent survey revealed that 40% of Gen Y-ers care about affordability and styling the most, followed by environmental friendliness. Zipcar is not just about renting cars; it focuses on the Zipcar community experience. The company hosts local Zipcar parties where Zipsters network and chat. They don’t make their own ads; their advertising comes from Zipster’s comments and videos. 40% of new Zipsters are friend referrals. Cars include in-vehicle Wi-Fi and access to social network sites such as Twitter and Facebook. Zipcar iPhone Application Launch: LinkLink
-Didn’t keep their eye on the hip hop or “phat” fashion trend - Sales fell 13% in 2005 and has continued to plummet -Had to close half its plants and layoff over 6000 workers -They plan on spending 15 million on music tie-ins (marketing) -Their site included a music area where browsers could sign up to win a guitar, but the guitar didn’t draw more shoppers b/c it lacked an affinity with the rest of the site. -Have no stores of their own now -Facebook Fans 150,000 -Twitter followers 3600 -Has a successful formula with its combination of spotlighted merchandise, edgy photographs and contemporary music at its stores -The floors are cool, the displays are cool, even the fitting rooms are cool -Constantly changing clothing and keeping up with the phad -Facebook Fans over 500,000 -A lot of photos, coupons, videos, music and events listed -Twitter followers 15000
Mountain DewMountain Dew Got It Right Mountain Dew just launched a new site called ‘DEWacracy‘ inviting consumers to create the next Mountain Dew flavor. Gen Y strives on creativity and self-expression. They like to feel involved. Another recent campaign was Green Label Art. They advertised on Deviant Art: an extremely popular user-made artwork site. Mountain Dew invited users to create a label to be featured on their “limited offer” bottles.Green Label Art Mountain Dew encourages user advocacy and energizes user experience. Gen Y is involved in action sports more than any other generation. The sporting events are more than just sports; they involve around music, gaming and apparel—core engagement activities for Gen Y. Mountain Dew takes on those same core activities in their branding. Their Web site (Link) targets Gen Y culture: gaming, sports, video, music features available.(Link) Facebook, Twitter, Youtube applications on main site further invite user engagement and user generated content. Mountain Dew doesn’t talk to Gen Y; instead the company talks with Gen Y. Gen Y-ers like transparency and straight talk.
Community centered clothing store started by two guys who won $1000.00 online for a t-shirt design. Threadless markets itself as a community—not an apparel store. Membership is free-members submit t-shirt designs. The designs are voted on by the community and the ones with highest votes get printed into t-shirts, which are then sold on the site. In May of 2009, Threadless partnered with Twitter enabling users to submit Tweets, which then get voted on and printed into t-shirts. They have over a million followers on Twitter.Twitter.
Their Web site is engaging users into an experience: shop, rate t-shirts, submit designs, participate in design challenges, threadspotting, forum, tee-v, etc. The entire business concepts is based on what people think. Threadless is great at creating buzz. Gen Y generation loves to express through clothing—through Threadless, they feel directly involved. Threadless strives on choice, feedback, self-expression, advocacy and experience—these core values answer to everything Gen Y craves. This is How the World Ends by Travis Pitts
Initially, Jones Soda was only sold in shops that sell surfboards, snowboards and skateboards and a few tattoo parlors. (1996) “They discover us in environments where they hang out,” founder of Jones Soda states. They shun conventional paths like print ads…its most effective marketing campaign relies upon word of mouth. Street Credibility – wouldn’t use media advertising, even if they could have afforded it in the beginning Even have a wild RV with orange and dark grey teeth on it that goes with them to these events such as snowboarding bringing product samples to ppl at sporting events, etc.
When you buy a Jones Soda, its not because you’re thirsty. Its b/c you want to make a fashion statement. Josh Sundquist – Jones Soda sponsors him Sundquist is spreading the Jones Soda gospel Cancer took his legs and almost killed him While spreading his personal message that life is still cool, he wears Jones sweatshirt and drinks Jones Soda. Jones Soda is now sold in Starbucks, Panera Bread, Safeway, Barnes & Noble, etc.
They are now tying their retail products back into an online community which offers users the chance to participate through My Music, My Videos, blogging and message boards So they created a virtual community of fans who gather at the website to chat, blog, enter contest, share movie reviews, and download freebies. So fans can follow the activities of the Jones team, watch videos, listen to music and buy merchandise. They can get to know company staffers through breezy, self-written bios. They use their company website as the primary marketing focus
Jones Soda has figured out what Gen Y wants. Its Web site urges fans to send in ur own personal photos for possible use on Jones Soda labels. (Your photo could win) It creates an emotional connection You can send in your pics and buy a 12 pack as well Meeting that desire for customization Constantly switching photographs Keeps their appearance fresh & interesting
“I wanted to make the computer look so cool and so attractive that Gen Y would want to lick the screen,” Steve Jobs stated about the Apple iBook. It is important to look Cool & Hip for Gen Y When Apple created the 99-cent download that took eight seconds to transact, they hit the nail on the head with Gen Y. (Cheap, good quality, fast service, and new experience all in one) One of the largest cause marketing endeavors to date is the RED (raises money for AIDS) Obviously with products like iPod, iPhone, etc. Facebook, Twitter, YouTube – one of the largest followings
Hulu is a collaborative effort between ABC,Fox and NBC Providing “On Demand”, commercial supported, TV shows and movies Allow embedding of their videos to other websites Provide outlets for content suggestions and feedback (blogs and discussion areas) Works well for Gen Y-ers who do not watch a lot of TV and want control over what they watch and when they watch it Overall goal is to create a subscription model in order to increase revenue Allows users to set up a profile and share opinions and view status updates (similar to Facebook) Added a “Friends” feature that allows you to watch and comment with friends while watching Perfect for Gen Y because it allows them to stay “connected” with their friends while viewing content Website design is Gen Y focused Clean (no blinking boxes or advertising all over the place) Easy to use (sort, click, enjoy!!!!!) Authentic…perfect for Gen Y….provides an accessible viewing experience
We only have a Web 1.0 website No interaction on website. All content driven by Webmaster Site is cluttered--not what a Gen Y’er would notice Large market of Gen Y…ignored No connection to Facebook, Myspace or any other social media outlet from the website Only has 3700 fans on Facebook….mostly people who work for us
JC Penney targeting Gen Y, but reaching their moms McCain tried unsuccessfully to “beat” Obama at his own game. Gen Y’ers dislike negative ads and Obama won overwhelmingly in this category of voter.
Toyota’s first effort to connect with generation Y was a flop. Launching a marketing strategy team called Genesis, Toyota committed millions of dollars to advertising. But the imagery and the cars that Toyota decided to sell to the Gen Y crowd never matched up Celica, the Echo, and the MR2 Spyder With Genesis, they had a chance to see if marketing was enough…obviously it wasn’t They learned from their mistakes The cars needed a lot more emotional appeal and advertising would never be as important as radically designed cars focused on lifestyles. Needed more flexibility (customizable) They realized they needed a new brand with new cars (stay fresh) Price needed to be lower as well
Creating the brand image Keep the respect You need to care about Gen Y opinion Keep an array of options Don’t choose actors or models you think represent Gen Y. Gen Y consumers want to see an array of personalities Keep it quiet Gen Y like to discover brands on their own Marketing to them has to be on their terms and in places where they hang out
What Gen Y offers, what they want, and their tendencies How marketers can reach them and earn their business 76 Million Members Be Authentic—Understand this market $200 billion annually More financially savvy, bargain shoppers, wait and see Offer comparisons of your products vs competitors Crave customization Allow consumers to customize their products and get into more consumer generated content “Experience” is important Create an experience for the customer through music, internet or social media i.e. themed concerts, geocaching, or live “cause” events Optimistic Keep everything positive; negative attitude drives these consumers away Don’t watch much TV—On internet more than 3 hours per day Utilize social media networking sites and internet to reach these customers
What Gen Y offers, what they want, and their tendencies How marketers can reach them and earn their business Prefer Instant Messaging, Private Messaging, Email, Facebook, Twitter and texting as modes of communication Utilize this info—User generated content, IM and Pm’ing, FB and Twitter accounts Brand awareness>Brand LoyaltyCreate awareness and brand loyalty by responding to these customers suggestions and feedback; you must win their trust They want the latest and greatest and they want it now Stay on the front of the technology curve, utilize feedback and react They want respect You must “authentically” know this group, go where they are, see what they see, and experience what they experience