Some of the most widely reported facts from the report on Millennials from Pew Research involved the prevalence of tatoos — and more personal body decoration — among Gen Y.
“About half (54%) have done one or more of the following: gotten a tattoo, dyed their hair an untraditional color, or had a body piercing in a place other than their ear lobe….Gender is not a factor in either tatooing or untraditional hair-dyeing — men and women are about equally likely to have done either — but body piercing is more common among young women than among their male counterparts.”
The incidence of tattoos among Millennials as well as Gen X’ers is so widespread as to be almost mainstream.
Thirty-six percent of Millennials and 40% of Gen X have at least one tattoo and many have multiples. (The reason this comes as a surprise to those of us who have never even contemplated the option of body art beyond ear piercing is that many are in discreet places.)
Tattoos are one of the few evidences of a true generation gap. Just 10% of those over 40 years old admit to a tattoo.
For us on the far side of the tattoo divide, it makes little sense to pay money (sometimes a lot of money, I am told) and endure pain to create an indelible mark. So it’s worth contemplating what marks Millennials find compelling enough to wear permanently.
A Google search of ‘tattoo designs’ returns over 2.3 million sites, so it’s hard to say what is most popular. The idiosyncracy of a tattoo appears to be part of its appeal. Nothing is quite as personal or individual.
Adam Di Stefano writes in The Next Great Generation blog that tattoos are a ‘Defining Mark’. He agrees that tattoos say a lot about a person, but what they don’t say is that the wearer is a ‘rebel’ or is trying to make any particular statement. According to Di Stefano, there is no single ‘type’ of person who wears a tattoo:
“Tattoos are an art form. Some people like oil paintings, others like ancient sculptures. I think there’s nothing more beautiful than a well inked tattoo. I love the stories behind tattoos. Most tattoos have meaning, and generally it represents an important moment in a person’s life. There’s something compelling about the permanence of a tattoo.”
Tanner Maluchnik, who blogs at Life Destiny, observes that sports brand tattoos are a sign of a particular affiliation, that of a fan for a team:
“I associate and branded myself, with ink, of the Penn State Nittany Lion brandmark (not unlike quite a few Notre Dame people I know either subway alum or not inking themselves with the Leprechaun). It is more based on the brand “Penn State Football,” instead of being a student and future alum of Penn State. Over 100,000 wearing white to a football game does not get any more “brand cult.” …Last summer when I was working on the beach with my shirt off everyday, it was so easy to speak with other “associated” people who saw my brandmark and went out of the way to get to know me.”
One of my more embarrassing moments came a few years ago in an interview I was conducting for a youth pastor position for our church. My daughter had tipped me off that he had a tattoo, and I was feeling uncomfortable with this as a role model. So I asked about his decision — what symbol would be so compelling as to wear for the rest of your life? His reply? Jesus Christ. Needless to say, he got the job.
“A subculture is a homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. Within subcultures, people’s attitudes, values and purchase decisions are even more similar than they are within the broader culture.” MKTG3, Lamb, Hair McDaniel, 2009
By this definition, Millennials are a subculture.
While they share many of the myths, customs and rituals of the larger culture, they have language, preferences and customs that are distinct to their generation. They have a unique set of reference groups and opinion leaders. These cultural factors exert enormous influence over Gen Y buying decisions, and are crucial for establishing relevance.
Learning about Millennial culture can be a tricky business if you are not a Millennial yourself. Even within the Millennial subculture, there is diversity. In fact, this generation is notable for it’s multi-culturalism.
Two of the best Millennial culture sleuths I have discovered are Tim Stock, Head of Planning at scenarioDNA, and Kevin Walker of Culture Labs Creative.
I found both Stock and Walker on Twitter and have spoken with each of them ‘live’ (proof Twitter works!). They are both passionate about understanding cultural influences on consumer behavior among youth.
ScenarioDNA describes itself as a ‘consumer insights think tank.’ Stock, who is also adjunct faculty at Parson’s School of Design, urges marketers to think in terms of ‘culture networks’ and ‘culture codes’. This philosophy is based on the idea that “values are shaped at critical points of the maturation process”, and that “our image of what products mean is dictated by this imprinting“. In other words, generations are shaped by common experiences peculiar to that point in time.
Stock has developed a strategic methodology for segmenting consumers based on their ‘culture code’ and for ’mapping’ the corresponding networks. He offers a fabulous lecture on culture networks (via slideshare), and another look at one particular network, the ‘Transformer Generation”. Both are well worth viewing.
Culture Labs Creative is a research-focused digital agency with special expertise in urban youth culture. Walker, who comes from a marketing communications and research background, emphasizes immersion techniques. 15-20 members of the target audience are invited to share their experience and ideas in a live workshop that is part event, part research. Sample output from a Global Trends event is provided on the Culture Labs site.
To identify the ‘Top 10 Trends, Culture Labs ‘monitored social media chatter during the last quarter of 2009′ and conducted in-market explorations in Houston, Atlanta, Los Angeles and New York as well as a ‘Trend Summit’ in Dallas in December. Among the 10 Trends were these observational ‘gems’ I haven’t seen anywhere else:
“Take note of the Classic Americana fashion trend developing. We also predict that Vans sneakers will be the hot brand of 2010. Vans are classic, inexpensive and are offered in many colors and styles…. As times remain challenged and serious, people are going to dress up more in 2010. The era of sloppiness in dress and casual Fridays is so ’00’s. Young people are rediscovering “dressing up” and it is driven by a new pragmatic sense that to make progress, get a job, and be taken seriously you have to look the part. As one of our speakers at the Trend Summit, Michael Hastings-Black, mentioned, it is the “grown ass man” syndrome that is inspiring people to dress up more.”
Has the world finally woken up to Millennials?
Judging by the media attention focused on Gen Y yesterday, it seems we may finally have arrived at the tipping point. On Feb 24 alone, there were articles and segments that appeared around the country, sparked by the new Pew Report on Millennials:
Chicago Tribune: “Millennials Dubbed ‘Always Connected’ in Pew Report”
Washington Post: “Under 30 Americans: The Next New Dealers?”
Washington Post: “Story Lab: Quiz: How Millennial Are You?”
PBS News Hour: “Demographic Profile of a Generation”
Christian Science Monitor: “Great Recession Hits Millennials Hardest”
Huffington Post: “Our Generation: More Confident, Less Employed”
A quick Google search returned 56 ‘related articles’ for a search on “Pew Millennials“. I certainly welcome the attention on this remarkable demographic group, and I applaud Pew for its indepth coverage. But where are the marketing articles? The Pew data so far is mostly attended to by social scientists, political scientists, journalists and academics.
The marketing world, aside from youth-focused marketing firms, as yet are still fairly tone deaf about the coming shifts.
If you are interested in understanding how more mainstream marketers are reaching out successfully to Millennials, you have to dig a little deeper. MobileYouth’s profile of Ten Brands that connect with Gen Y is a good start for profiles of Ford Fiesta, Monster Energy drink and others. But once you get beyond these high profile stories the cases get a little harder to come by. Here are three less publicized, inspiring exceptions:
Houlihan’s: (Fast Company, March 1, 2010)
“Last summer, it created its own social-networking site, HQ, an invite-only “brand community” of 10,500 “Houlifans” to serve as a virtual comment card. Customers appended that a-little-too-cute prefix to all things Houli-, and they’ve helped the formerly stodgy Irish pub rebrand itself as a contemporary suburban lounge-style hangout.”
StarkSilverCreek Web Publication: (PR Web, February 17, 2010)
All Things West Coast, the company’s flagship brand, is one of the fastest growing digital media properties. Readers value inspired and thoughtful coverage of the west coast including arts (film, stage), wine country, travel, and technology. Alexa Internet, Inc. ranks starksilvercreek.com 93,401 in the US and 285,000 globally. According to Quantcast, readers are affluent (28% earn $100K+), highly educated (67% college/grad school). Generation X and Y (Millennials) account for 68% of visitors.
Herbal Essence: (Business Week, July 2008)
“The shampoo and conditioner bottles are curved so that they literally fit together on the shelf. The nesting shape not only helped Herbal Essences stand out from others on the shelf but also encouraged more young women to buy both products, driving up conditioner sales. To appeal to Millennials, the team also updated the language on the packaging. The ho-hum “dandruff” reference gave way to “no flaking away.” Names for different hair styles were changed to more youthful phrases such as “totally twisted” or “drama clean.” “We totally reframed the proposition,” says Lafley. ….soon after the shampoo was relaunched the brand was growing again, with sales growth rates in the high single digits.”
A lot is known now about how to build a more appealing brand that connects more directly with Millennials. It requires a different approach, because as anyone who reads this blog or the Pew Report knows, it’s a different kind of audience. Getting results like these requires a more collaborative approach to research and a more engaging approach to marketing.
Marketers will be wise to begin now. The rewards for early movers in categories like banking, wine, leisure travel, retailing, and media will be great, both in immediate sales lifts (like Houlihans) as well as in better positioning for future consumers. Gen Y trends have a way of migrating up the generations.
Soon it will be more than just the wine industry that is experiencing ‘classic market disruption’, it will be most industries as this 75-million strong demographic recovers from the Recession, and gets about the business of creating homes and careers. Will your brand be ready?
Meanwhile, we are launching a new page on our MillennialMarketing.wikispaces.com wiki to aggregate successful Gen Y marketing case studies. Check it out and feel free to contribute your stories.
I recently finished reading Elizabeth Gilbert’s best selling book, Eat Pray Love. The book chronicles Gilbert’s literal and figurative spiritual journey toward a deeper relationship with God, but never actually reveals which if any religion speaks to her yearning. Gilbert, a Gen X’er, seems to have a lot in common with Gen Y.
New data released this week from Pew Research on Millennials and religion quoted in USA Today, Denver Post and elsewhere, says one in four Millennials (25%) do not identify with any one faith, instead describing their religion as “atheist,” “agnostic” or “nothing in particular.” This level of non-affiliation is much than was seen for other generations at the same age.
At the same time, the Pew study reveals that spirituality among young adults is undiminished. “Members of today’s Millennial generation, ages 18 to 29, are as likely to pray and believe in God as their elders were when they were young.” This leads them to conclude in their headline: “Young Adults ‘Less Religious,’ Not Necessarily ‘More Secular‘.”
There is other evidence to support the conclusion that the issue is more one of lack of affiliation than a lack of faith in God. A survey of Millennials reported in New Yorker magazine last year found that 43% of Gen Y believes they are ‘as religious’ or ‘more religious’ than their parents. A Marist Institute poll shows over three in ten Millennials define their primary long-term life goal in religious terms (“To be spiritual and close to God”). That figure was higher than for any other age group.
What makes this lack of affiliation especially intriguing to me is that in many other areas of their lives, Millennials are inclined to go along with their parents’ choices.
Within the 25% who are unaffiliated, nearly three quarters were raised in a religious faith tradition and dropped away. This makes faith the outlier as far as decisions that break with their parents. Recall that this is the first generation that as a rule likes their parents and even thinks of their parents as their ‘best friend’.
- 86% say they share their parents political views.
- Every single student in my Principles of Marketing class raised their hand last week when I asked who banks where their parents bank.
- According to an AARP survey, 41% of Millennials with cars drive the same brand of car their parents drive or have driven.
- The American Savings Council found 71% of Gen X’ers and Gen Y’ers turn to their parents for financial advice.
So why make the break here, over something as important as faith?
I think has to do with the strength of the Millennial subculture and its strong, shared ethical values than a fundamental change in their belief in God.
The Gen Y subculture is astonishingly ethical, both in values and in practice. ’Bad behavior’ on a variety of social dimensions from pregnancy to crime to drugs are all down among young adults. Socially, Millennials prize tolerance as a result of their inherent diversity. They are significantly more socially liberal than their parents on issues of marriage, abortion, interracial dating. Millennials are less inclined to believe that church affiliation is necessary to be a ‘good person’. According to a Marist Institute poll, 56% have donated money to a charity in the past six months and 67% have volunteered their time.
I’ll go out on a limb here and speculate that some of the lack of affiliation is due to a desire for ‘authenticity.’ The Gen Y subculture is unusually sensitive to phoniness. It’s unlikely they will go through the motions of attending church just because it is ‘the thing to do’ if they have questions about their own sincerity.
In the final analysis, reaching Millennials and getting them to re-affiliate with any one ‘religion’ may be unrealistic as a ‘marketing objective’.
Gen Y is accustomed to choices, and there is some evidence they may feel confined by a denominational label. In December I noted that Millennials are ‘auditioning’ faiths the same way they would look for a college, a spouse or other major decision (“For Millennials Belief Is A Choice“). This represents a huge generational shift and as with so many other Gen Y trends, may start to migrate into the thinking of other age groups. The Pew research shows that like Millennials, most Americans are embracing ‘multiple faiths’, with beliefs that do not ‘ fit conventional categories’.
Over the past week, I have graded nearly fifty student case analyses of MTV. Make no mistake, Millennials love this brand. It’s iconic. It is part of their growing up years.
So it was with great interest that I read of MTV’s logo update announced last week, the first update in its 28-year history.
According to The Brandchannel and articles in MSN and Ad Age, the move is intended to align with the fact that MTV is now better known for reality TV shows than music videos. There seem to be at least four different motivations for the change.
1. Better align with what MTV does today
The MTV brand has represented more than “music television” for many years, and now – appropriately – the words “music television” are no longer part of the official logo. In addition, the original logo has undergone a slight morphing. When MTV launched, the upside of the logo was that it communicated the very specific, targeted business of the brand to a potential audience that had never heard of it. Of course, the downside of the logo is that once the brand diversified to include material beyond music, such as, say, Jersey Shore shenanigans, the logo became confusing, or even absurd.” - The Brandchannel, Feb 10, 2010
2. Better appeal to Millennial target
“It represents a new visually defined MTV, stimulating its past, present and future and embracing its diversity. Everything from Jersey Shore, to the VMAs to collaborations with the MoMA. The logo is part of MTV’s re-invention to connect with today’s millennial generation and bring them in as part of the channel.” – MSN, Feb 10, 2010
3. Put greater focus on MTV’s stable of talent
“The new logo is meant to put the focus on MTV’s current slate of talent — the stars of mostly reality shows like “Jersey Shore,” “Teen Mom,” and “The Buried Life.” Since the logo (which seems to have a shorter “M” than the original) is also available in a see-through model, it can change when new stars come into the fold. Tina Exarhos, a spokesperson for MTV’s marketing team, explained the change to “The New York Daily News”: “If you watch the channel, you’ve seen that it’s definitely going in a new direction. We really wanted to see the logo featured in a new way, and this was really meant to be able to house all the great things that are happening at MTV at any given time.” PeaceFM, Feb 10, 2010
4. Increase brand recognition
“Mr. Friedman said MTV has also had a problem with brand recognition among viewers who would love certain shows but had no idea they aired on MTV. “The way the logo frames it makes it a simple reference point,” he said.- Ad Age
The move has been questioned publicly on several fronts: Why now after all these years? Is it enough of a change? Is tweaking enough? Is it too mainstream/not irreverent enough? So I put the question to my Brand Strategy MBA class at University of Notre Dame.
Based on the case you just read and your experiences with MTV, what do you think? For the most part, students felt that the change was not big news.
Jonathan: “I think it’s all much ado about nothing. The change is so minor, I initially thought there was simply something wrong with my cable when the bottom of the logo was cutoff.”
Michelle: “I actually had to Google the MTV logo to get an idea of the changes that they made. I don’t think that there was much change at all and I guarantee that many of their teen viewers won’t see the change either.”
Suzy: “The changes are subtle, and not very noticeable among viewers. If anything positive comes out of this initiative, it is the publicity and buzz that was created as a result of the change.”
The larger issue for these students is that the change probably doesn’t go far enough in explaining what MTV means today.
Several acknowledge that the brand’s emphasis on reality shows may not have the resonance for them that it did when they were growing up. They understand the brand has changed, but what does it stand for now?
Marissa: “I think MTV needs to reinvent their brand identity. Their programing has changed with the times as they now focus on reality shows and docudramas like “Teen Mom.”
Rob L: “I think there is no substantive difference other than dropping “music television” which was long overdue. It was the source of a lot of irritation, even to those that didn’t watch the channel, because it caused confusion given that’s not a core part of their programming. If I had a dollar for everytime I heard someone complain about “back when MTV played videos” I’d pay off my student loans. As it stands, they seem to have no identity, no focus. At least Tru TV is direct about their showing reality shows, you know what you are getting into and are not disappointed by their 2nd rate reality entertainment.”
Rob: “Changing the logo doesn’t do much to change the disconnect between ‘music’ and whatever they want to call what they’re showing now.”
Amy: “For those of us who remember MTV when they used to play music videos, the “M” stands for music. Simply dropping the explicit reference to ‘music television’ does not change anything.”
The folks at MTV no doubt understand that their brand is in transition and that is probably the main reason for the logo update.
Iconic brands need to speak into the culture to remain iconic. Standing still is not an option in youth marketing. Perhaps the logo change is just the beginning? With hit shows like the “Jersey Shore” leading the way, I think we may only be seeing the beginnings of how this brand plans to connect with Millennials.
The American standard song, “Getting to Know You” wisely says:
It’s a very ancient saying,
But a true and honest thought,
That if you become a teacher,
By your pupils you’ll be taught.
As a teacher I’ve been learning –
You’ll forgive me if I boast –
And I’ve now become an expert,
On the subject I like most.
Getting to know you.
Over eight years of teaching Principles Marketing to sophomores at University of Notre Dame, these words have proven their wisdom.
Early on, I realized students today are not younger versions of my 1974-self. I cringe now to think of the mistakes I made. My approach was Powerpoint-heavy and textbook-focused. I treated them like corporate executives at an off-site seminar. Students were bored. I was frustrated. My class evaluations were humbling. Actually, that is an understatement. I was flattened for days after I read my first student evaluations.
How things have changed! Over the past 8 years, my teaching approach has become increasingly “Millennial-friendly”.
I still have a lot to learn but three weeks into what is charmingly referred to as “Spring Semester” at Notre Dame (Jan-May), I am tentatively thinking to myself, ‘By George, I think she’s got it!’ Here are some of the principles that are making Principles of Marketing a joy for both me and the students. (Below I’ll tell you how I think they apply to Marketing to Millennials.)
1. The right text.
Millennials are visually literate. It’s not just about the words, it’s about the way the words LOOK on the page. A poor, uninviting design is a turnoff, regardless of how inspired the content. This year I am using a text from Cengage Learning’s Southwest Publishing Group. This Principles of Marketing text is the best I’ve used yet for one reason: the students actually will read it.
The book is softcover, costs just $55 (including online resources), and is colorful and graphic. It looks like a magazine. Yet the content has not been compromised, just condensed. Extra material has been moved online. There are flash cards, practice quizzes, cases and podcasts online as well. The text is not the only content, just a starting point.
2. Bite-sized learning.
In the past, my syllabus outlined two exams and a semester-long project, each about one fourth to a third of the total grade. Now I know better; Millennials need more frequent assignments and feedback to keep them focused.There is a lot of competition for their attention. Like the rest of us, they sometimes have trouble managing their time.
Weekly case assignments, environmental scans, frequent quizzes, and tests help to keep them on track. No assignment or test is more than 10% of their grade. I even build in extra credit and ‘bye’ weeks. This contributes to continous, rather than sporadic learning, and helps me keep a pulse on what’s working.
3. Participatory Class Time
The worst criticism I heard was that ‘class time was a waste of time, just read the book’. In an era when the best college lectures are often available online and in podcasts, professors have to work very hard to make class time matter. I ask myself when preparing for each class, ‘what can be uniquely delivered in person that can’t be provided any other way’? The answer is interaction.
Nearly every 75-minute class includes break out time and heavy doses of discussion. Four entire class periods are devoted to student reports. Getting sophomores to talk isn’t always easy – they prefer to remain quiet. But weekly homework ensures they have something of value to share and ups participation.
4. Multi-media.
At Notre Dame, we are blessed with high-tech enabled classrooms and courseware. I incorporate DVD video material and Youtube videos into each class session. We maintain a class blog and make use of a protected class web site. A library investigation project familiarizes students with the wealth of ‘non-Google-able’ material available through the library databases. Students are encouraged to use web-based team collaboration tools to complete their group assignments.
5. Relevance
Students need to see that what they are doing relates to their ‘real lives’. I work to incorporate discussions of real marketing dilemmas and innovations. Already we have discussed the Pepsi Refresh project, iPad, Microsoft, MTV, Cirque Du Soleil, MTV, Netflix, SuperBowl XLIV, Method, McDonalds and more. I have invited a panel of former students who work at Target, LL Bean, IBM, Snapple and other brand marketing firms to form a panel discussion group later this semester.
Teaching and marketing have a lot in common. Marketers must understand your target, have clear objectives and strategies for engagement, and a measurable outcome. My insights about what works in the classroom can be translated to marketing:
1. The Right Text: Is your story text-heavy or is visual design a cornerstone of your marketing approach?
2. Bite-Sized Learning: Are you serving the right message at the right time? What are the key take-aways? What feedback can you provide?
3. Participatory: What mechanisms are in place to engage your audience in a conversation?
4. Multi-Media: Are you using all the channels available to get your message across?
5. Relevance: Is your message current? Does your Gen Y target see how it is applicable to their world?
Whether you target them in the classroom, social media or some other venue, it’s critical to tailor your approach to Gen Y’s unique ways of learning and processing information. Getting to know you definitely pays off.
Millennials have different values, attitudes and media habits than previous generations.
They have a unique culture.
They ‘think different’ and they behave differently, as well.
These differences can be seen in everything from the brands they like to the way they shop. They are evident in the way they consume media and interact with marketers.
Marketers are waking up to the differences.
But it is one thing to understand Gen Y is different from youth markets of the past, and another to know what to do about it. Here are six ways Millennial marketers need to think and act differently to connect with their Millennial target:
1. Participate in Their Hyper-Social World.
Millennials are connected. They interact with more people more often than any preceding generation. Consequently, they define value in terms of social currency, as well as product and service utility. Marketers need to participate in this world, by bringing something to the party that helps create social value, not just the traditional benefits of low price, convenience and product performance. Shareability is paramount. If your product is not inherently about sharing, you need to find a way to become part of the conversation. Examples: Coca-Cola Open Happiness Video, Pepsi Refresh Everything.
2. Stop ‘Advertising’ and Start Communicating.
Most discussions of Millennials emphasize the importance of authenticity. That’s the positive way of putting it, but the underlying theme is a strong distrust of marketing messages. Millennials will not tolerate being ’sold’, even if it is done in a culturally relevant way. Miracle Whip is not inherently a Gen Y brand, and its ‘We Will Be Heard’ advertising campaign isn’t fooling anyone otherwise. If it looks like an ad, talks like an ad and walks like an ad, it’s an ad and will not be heard.
3. Leverage GroupThink.
Millennials are famously consensus oriented. They don’t make decisions quickly and without asking for advice, from parents, friends, mentors, and even strangers (Yelp!). Marketing to Millennials bears a lot in common with marketing to a B2B buying group. It’s not enough to target the decision-maker, you also need to target their influencers. This is particularly true of big ticket items like college educations, cars and financial services. But it is also true of more mundane decisions like clothing, beer and wine, cell phone plans and restaurant choices. Savvy retailers are adding larger dressing rooms to accommodate social shoppers. Online feedback tools are critical for making the sale online.
4. Talk About Your Experience, Not Your Stuff.
Millennials are sponges for experiences, but less inclined to accumulate material goods. Some of this is of necessity – their generation is unlikely to enjoy the prosperity their parents did. But much of it is by choice. They want to travel light through the world and leave a low carbon footprint. They are more interested in what goes in their memory banks than into their closet and cupboards. They place a high value on travel, eating out, entertainment and educational experiences.
5. Tell Them Who You Are.
Millennials want to know who are the companies they deal with as much as what those companies can do for them. They make choices based on brand values and citizenship, not just price/value. It’s not enough to make good products and services, you also must be a good corporate citizen – and walk the talk. Brands that do not incorporate a societal marketing message will not resonate with Millennials.
6. Seek Their Time, as Well as Their Money.
Millennials think of their resources in terms of both time and money. Attention is a resource and they make strategic decisions about how they will spend it. In order to gain their trust, a brand has to show respect for their time as well as their money. They look particularly for products and services that contribute to their quality of life by making their lives more efficient. They are constantly looking for tools like Bing, Mint.com, and Google Wave that can make their lives run more smoothly.
For more articles on what makes marketing to Millennials different, see:
The Six Be’s of Millennial Marketing
Millennial-Friendly Advertising: What Connects?
According to a new report by the industry blog, WineandSpiritsDaily, Millennials are now the recommended prime target for wine marketers:
“The wine industry can take comfort in the fact that consumption continues to grow in the United States, said John Gillespie, president of the Wine Market Council, at the Council’s 5th Annual Presentation of US Wine Consumer Trends in Dallas. Not only are older generations drinking wine, but the industry has a big champion in the millennial generation. By process of being younger, millennials were not as hurt by the economy and feel more comfortable spending money on wine as an affordable luxury. They don’t view wine as elitist and enjoy, rather than feel intimidated by, all the choices that wine presents.” (“Millennials Drive Growth, Core Consumers Trade Down”, Wine and Spirits Daily, Jan 26, 2010).
1. MILLENNIALS ALREADY LOVE WINE AND THEIR NUMBERS ARE STILL GROWING. Right from the get go millennials have begun drinking wine at core consumption levels, while gen X and baby boomers have increased wine consumption with age. 20 million of the 70 million millennials aren’t even at legal drinking age yet. “We have the pipeline full for core wine drinkers for the next 5 years, assuming the 20 million who aren’t 21 yet will follow in the older millennials’ footsteps” says Gillespie.
2. MILLENNIALS ARE TRADING BEER AND SPIRITS FOR WINE. 32% of millennials traded over to wine, which means young people are increasingly favoring wine over beer and spirits. This compares to 9% who are trading off among the drinking population as a whole.
3. MILLENNIALS ARE MORE ADVENTUROUS. They consume more imports than other generations, are more likely to belong to a wine club, and dine out more often.
4. MILLENNIALS VIEW WINE AS AN AFFORDABLE LUXURY. Millennials view wine as an affordable luxury. They don’t see wine as elitist or unattainable but believe it denotes maturity and sophistication not given by beer or spirits. This age group is also the first truly gender neutral generation when it comes to drinking wine.
Wine producers have no time to waste. Many Millennials do not feel that marketers have spoken to their generation.
While it’s true that Millennials are price sensitive, they also care about brands. According to Mintel, the % of 21-24 year olds who say they decide based on brand (55%) is higher than the number who say they decide by price (48%).
Reaching Millennials now could shape their wine preferences for a lifetime. So wine producers, what are you waiting for?
Photo from Daniel Prager, http://danielprager.posterous.com/dove-bars-and-wine-is-the-new-going-out-on-we
This week we’ve been discussing iconic brands in our MBA Brand Strategy class at University of Notre Dame. We considered questions like What makes a brand ‘iconic? How do brands become icons? Why do brands sometimes lose iconic status?
I asked students to reflect specifically on why there are so few Millennial-specific iconic brands, and what brands do you think have the potential to become iconic for adults currently 18-29? This led to a lively discussion on our class blog, BrandStrategyMBA. Here are some of the highlights:
1. Many said it will take time to know which brands will stand the test of time, or which values will come to define this generation.
Jack: “This is a difficult topic to talk about since most iconic figures and brands don’t get that title until years after their time. When the Beatles first appeared did their fans truely feel that they were icons or did that title form over the decades that followed?”
Michelle: “I believe that in today’s culture, the so-called ‘popular’ brand is too quickly replaced by the ‘next best thing’ to even reach the beginning of iconic status. In fifteen years we will be able to identify those brands that are the past generation’s icons but it is very difficult to identify those at this moment. “
Kathryn: “Our generation seems to value instantaneous information and “the opportunity for everyone’s brand to be infamous.” When considering something in our society that does this, I immediately thought of Urbandictionary.com. It’s tagline was written to resonate with our generation: “Urban Dictionary is the dictionary you wrote. Define your world.” It doesn’t get much more appealing to our generation than that.”
Joe: “Iconic brands are things of the past. No, really. It takes a lot of time for anything to become iconic – we don’t see airports named after living presidents (do we?) and we won’t see iconic brands until they’ve at least had a solid opportunity to die. The ones that don’t – they’ll be icons someday. GE is an icon not because it’s a great company, but because it has weathered so many storms.”
Dan: “One of my first thoughts before this year would have been Tiger Woods, but now I definitely do not think he will be known as clearly as an icon. To become an icon in my opinion, you have to stand the test of time, which will only be known in time.”
2. A second theme was that Gen y is too individualistic to crown any particular brand as ‘iconic’.
Brian: “Pegging Gen Y to a single, overarching culture is difficult…and risky. In our modern age of social media and globalization, many different cultures can easily exist within the same geographic space. I believe there are many cultures within Gen Y, each currently with their own “mini icons.”
Sarah Louise: “First, I agree that we will have to take the wait and see approach with this generation’s iconic brands. Many years will have to pass before the ripple effects of today’s celebrities, politicians, etc will be completely felt. Who knew how much Michael Jackson meant to the generation until he was gone? …Second, because we have so often been told to be individuals, this generation looks to role models less. We are told be innovators, not imitators. We are segmented so much, down to the single person, that brands will have difficulty appealing to this generation as a mass market.”
3. Some students ventured that brands like Google, Apple and Facebook would become iconic by representing this generation’s relationship to readily available information.
Chris: “…at least one of the iconic brands for adults 18-29 would be the iPod. This generation feels the same way about information accessible on the internet that some people feel about the weather in the Midwest and that is if you don’t like it wait 5 mins and it will change. … They can provide information and if it proves wrong they can just as easily provide a retraction. For that reason I feel that blogging brands will be iconic. Most specifically I feel that blogspot with the backing of Google will remain one of the more identifiable/iconic brands.”
Mauricio: “… GOOGLE with only 12 years of life the brand is used for the 90% of Internet users and still growing. In 2005 It became the 38th brand in the world (Interbrand), but in 2009 ranking is the 7th brand in the world just behind Coke, IBM, Microsoft, GE, Nokia and McDonalds. My second brand will be FACEBOOK…“
Katie: “I’d have to agree with Chris that the iPod – or, more broadly, Apple – will end up being an iconic brand. …One more to just throw out there is Target. While it was not founded during this generation, the big expansion and huge gain in popularity was a more recent occurrence. Maybe it’s just because I shop there ALL the time, but to me, Target has definite iconic brand potential!”
Forrest: “From my observation, the Gen Y people hope they can been treated as special and important. So they really want to have their own personalities and want to be different from others. So we can expect the brands expressing uniqueness and individuality will become their icons, like Iphone, Itouch, Ipod….. The word “I” can really make them feel special.”
4. Others ventured that the personal brand or social networks would become the iconic ideals of this generation.
Sarah: “Who needs icons when we have a rotating cast of the Jersey Shore or The Bachelor?? =) I remember that Time Magazine that came out and declared that our generation is our own brand. I do agree but I don’t think that lends itself to a culture or a time period that creates icons although I guess time will tell. If I had to add someone to the list, I’d add Obama.”
Kate: “As for iconic brands for our generation, we are ourselves our most iconic brand, and not just because Time Magazine told us so in 2006 with You: as the Person of the Year. Who better for us to be the first to ‘discover’ our brands? …We now like Lady Gaga because there’s no one else like her, and shun N Sync and boy bands because there are a million copy cats.”
Lindsay: “It’s difficult to pinpoint an iconic brand for Generation Y because we have become our own icons. Armed with a sense of self-efficacy and self-definition, members of Generation Y define their ideals and values individualistically rather than as a collective whole. We clamor for attention; we are the generation of “me”… which is not necessarily a negative. Mes are doers. They have confidence in themselves and their ideas. They believe that they can accomplish and some have/will eventually achieve something that renders them worthy of iconic status. Still, considering this “generation me” perspective, I think that what may be the iconic brand of our generation is, in fact, the social network. The collective set of venues through which we become our beloved “mes”.
Cole: “As others have mentioned, the rapid changes in technology are not limited to the newest electronic devices but rather change the way we live and interact with one another. … In this regard, iconic brands are affected as well, and as speed and efficiency become more and more important I believe iconic brands will rise and fall more rapidly as well.”
5. Some students challenged the whole notion of generation-specific brand icons.
Amy: “I do think that the strongest iconic brands are able to transcend multiple generations, continuously reinventing themselves to remain relevant to the current culture. Along with Coke, I would say Nike is another iconic brand and one that really took off with our generation. I don’t recall owning another brand of tennis shoes from about the third to twelfth grade. But, Nike is so much more than shoes and has been able to integrate its products into other iconic brands of our generation, such as through its Apple ipod partnership. Nike has also helped define many of the iconic athletes of our generation – Jordan, Tiger, the Williams’ sisters, Lance.”
Mathew: “Bono is an ironic choice, but still relevant. However, I do think the choice is relevant, since he has transformed himself into a credible celebrity humanitarian activist. Building on this theme of transformation, I actually remember being referred to as the Nintendo Generation in the ’80s. Now, Nintendo has reinvented itself as an interactive gaming juggernaut with the Wii that appeals oddly to every generation…Perhaps many of the icons of Generation Y will be reinventions of past icons. Madonna laid the foundation, Lady Gaga seems to be the next generation. A few more examples would be: Lord of the Rings replacing Star Wars, Twilight replacing The Lost Boys, American Idol replacing Star Search, The Prius replacing the Metro, The Killers replacing New Order, Coachella replacing Lollapolooza, and Facebook replacing Myspace.
Kristin: “I have definitely been a Bachelor follower for some time. But I really didnt jump on the Jersey Shore bandwagon til a few weeks ago. It is shows like this that get so many people talking, tweeting, facebooking, and blogging about them which then cause people who normally wouldnt watch to go watch and be part of hype. Now I am not sure if either show at this point are iconic. I do agree with the previous comments that time will tell if things become iconic. But I do think social media will certainly speed up the process of determining what is iconic.”
Jonathan: “I agree …iconic brands in the traditional sense have gone the way of the dodo, simply because of the fractured nature of consumer experiences in the new millenium. Just as we’ll never see another Michael Jackson or Rolling Stones, and just as we’ll never see NBC or the other broadcast networks have the kind of ratings dominance they once had, the era of mass popular appeal has come to an end as digital technologies have allowed people to form their own communities around their own interests and establish their own dominant brands within their different social circles.”
Ali: “Most of the technology related brands mentioned above may be hugely popular amongst 18-29 year olds, but most all of them are also popular beyond just this demographic. Hence, in my mind, these brands pass more as icons for the period in which they are popular rather than for a specific demographic. Youtube for example is a recent phenomenon. So is Gmail, the iphone, ebay, and the internet in general. But do these ‘brands’ represent 18-29 year olds any more than they do current 29-35 year olds? I think not! What about the Obama brand? While Obama won the election largely on the strength of 18-29 year olds, is his brand an icon for this demographic, or is it more an icon for the post-bush sentiment for something different?”
Rob: “The biggest part of an icon is that it has to transcend just the product, and companies simply don’t control that. For that reason, I would agree that the idea of a generation-specific iconic brand is inconsistent with being an icon. It’s the difference between, say, Google and Intel. Google has more or less come to represent the combined benevolent power of the internet. .. Intel has been a brand I have been a lot more exposed to it, but it lacks the same resonance with our generation that Google encompasses.”
Suzy: “One reason why I think that it has become more challenging for brands to become icons in our time is that we are a very instant gratification generation. We know what we want, (which is usually the newest, best innovation) and we want it now, if not, yesterday. As a result, our attention span is also a lot shorter and we may not give brands the time and thought that they would have otherwise received generations ago.”
6. Nevertheless, a few names did emerge as potential generational icons, especially the idea that celebrities or people brands would be the most likely to endure:
Laura: “Red Bull / Rockstar / Other awful tasting energy drinks – Okay I am a little biased on this one, but here is another opportunity to create an iconic brand. Red Bull did not make a huge appearance into mainstream culture until the 18-29 age group was an ideal target market. Because of this, they have a product that currently associates with this generation.”
Matt: “I’d have to agree with Sarah that Obama has to be what I would call an ‘instant icon’ for our generation. Up to the time of the election, our generation has been known for being less than productive, and thus associated with the negative economic aspects of recent years…and so when Obama came on the scene as an ‘agent of change’ (I believe that’s what he ran on), it stuck to our generation as an instant icon. Hopefully if things turn out okay with Obama’s years in office, hopefully we can be known as the generation that restored our nation to greatness and prosperity.”
Paul: “Traditional brands and products have extremely short life-cycles now Very few brands stay in the public’s consciousness long enough to turn a profit let alone turn into icons for a generation. When I think about the icons of my childhood, I think about people and memorable events. I remember Michael Jackson doing the moonwalk while performing Billie Jean. I remember Michael Jordan taking off from the free-throw line. People, regardless of their attention span, will remember transcendent people and performances. No technological development can replicate the feeling of awe we feel when we witness a spectacular act, even if it’s in something as mundane as music or sports. This is why the icons for our generation will come from “people brands”.”
The unaptly named “Spring” semester has commenced at The University of Notre Dame, where I teach marketing. The standard issue apparel is, without a doubt, North Face. North Face puff jackets, shiny coats and fuzzy fleeces are everywhere. The logo is nearly as ubiquitous as ND’s own. (Yes, I am wearing North Face, as well. Why not? They are WARM and South Bend in January is NOT).
With this kind of popularity, one would think the North Face brand could relax a bit. But no, they are suing an enterprising Missouri teen for trademark infringement.
Jimmy Winkelman, 18, has been making and selling his “South Butt” logo-wear for two years. It was a side job. Winkelmann told ABC News he turned a profit of about $4,000 the first year, selling about 200 items in total. “I was like, ‘How did they even find me?’” Winkelmann said. “It was ridiculous.”
With the advent of the North Face suit, his ‘ridiculous’ company and parody products have garnered so much publicity (NPR Marketplace, etc.), he now makes in a day what he made in years. In fact, he seems to have funded his entire college education.
As a marketer, I certainly can appreciate the damage done by knockoff and counterfeit brands. But this is clearly a parody, only made possible by the enormous popularity of North Face. (Apparently Patagonia suffered something similar with Ratagonia-labeled products in the past). It is more of a compliment than a threat. No one who sees this brand could possibly think it was related to North Face. And the idea that it is damaging the incredible equity of the North Face brand or diminishing its sales is simply ‘ridiculous’. Here is the ‘disclaimer’ on the South Butt web site, in case there are any lingering doubts of its non-affliliation with North Face:
“We are not in any fashion related to nor do we want to be confused with The North Face Apparel Corp. or its products sold under “The North Face” brand. If you are unable to discern the difference between a face and a butt, we encourage you to buy North Face products.”





