Perhaps the most intriguing assertion in this week’s Ad Age article on What Marketers Can Learn from Obama is this one:
Mr. Obama’s packaging might discomfit older generations, who may think of themselves as immune to mass marketing. But it is “no problem” for millennials, whom Mr. Howe sees as averse to chaos and unpredictability (a trouble spot for both the Hillary Clinton and John McCain campaigns), and are “very comfortable with a very smooth brand that has minimal turmoil.”
I happen to agree. I agree both that Millennials are comfortable with mass brands and also that a certain corporate smoothness may be part of Obama’s appeal, or at least make his brand of ‘change’ more palatabale than one would expect of a Presidential candidate promising ‘reform.’ On the first point, Millennials are comfortable with mass brands, I can offer evidence. At the beginning of each term, I ask students to name some of their favorite brands. Out of a typical class of 40, 39 will name a mass brand like Apple, Nike, Budweiser, Gatorade, Starbucks, or Jamba Juice. Outlaw Consulting published a list of the top 15 brands among their panel of Gen Y trendsetters. The favorite 15 included Apple, Jet Blue, Whole Foods, H&M, Levi’s, Volkswagen, Vitamin Water, Ben & Jerry’s, In N Out Burger, Trader Joe’s, Target, Adidas, Converse and American Apparel and Red Stripe.
A contrary view is offered by Rob Walker, author of Buying In, in his ‘murketing’ blog post, “Gen Y and mass brands: Made for each other?” What makes this worth reading is the response it evoked from Millennials themselves, who reject the idea that their generation likes mass brands. Here’s a sample:
As a millennial myself, big brands don’t do it for me. We’re a generation that needs constant stimulation, which can be seen in the diverse trends and niches today. That also means lots of niche brands. We also like things to be fast and are always searching for the new. Big brands have a big image, and they usually keep that image constant. So we get bored. I know I do. And we’re also more discerning then previous brands. Some people don’t like the way big brands do their business, so they chose to support local or smaller businesses. Or they may question their marketing tactics, like do they really believe in my well-being or are they just trying to make money off of me? – Kaitlin
While I am sure Kaitlin, like my students, is sincere in her belief that she is bored and suspicious of mass brands, I only need to point out the number of brands they are wearing and carrying to make my point. There is something endearing about someone rejecting brands who is toting an iphone, wearing a Notre Dame hat, wearing Adidas shoes, and sipping a Starbucks latte. Millennials may relate to brands differently — they may not think of these brands as ‘their brands’ or make lifelong attachements. But it would be misguded to say they are not influenced by mass brand techniques, like the ‘smoothness’ and 360 consistency exhibited by Obama.
Barbara Bylenga is President Outlaw Consulting, a highly successful San Francisco-based company specializing in spotting trends. They talk to trendsetters and predict which trends will go mainstream. Outlaw has been telling companies like Nike, Levi’s and Diageo for years what the coolest of the cool kids want. In a recent exclusive interview for the Global Business Network(GBN), she affirmed that cool Millennials are indeed different from cool kids of the past. Here are a few highlights:
GBN: The bulk of your trendsetters are in their teens and 20′s. We hear a lot about the Millennial Generation and how they are different. Is it hype or real?
BYLENGA: Millennials, or Gen Ys, are definitely different. They seem to feel more empowered – and more entitled– than any generation before them. They have an innate team orientation that makes them excellent collaborators. And the ideas about issues like marriage and career are radically different. Their “American dream” isn’t about the picket fence; it’s a flexible freelance career and a life defined by passion. There’s no doubt in my mind that they are poised to change society. And they’re the biggest American generation ever — even bigger than their parents, the Baby Boomers. In just a couple years, they’ll be on-third of the U.S. population.
GBN: What are Gen Ys like as consumers?
BYLENGA: Gen Ys see themselves as change-makers. But they’re also busy trying to have a middle-class life, so their protests take different form than youth protests of the past. They see corporation’s as having lots of power but little heart, and they try to create change by using their dollars. The “aha” for corporations is to recognize that values and authenticity are important to this generation — and that directly affects how they spend. American Apparel, for example, has been totally embraced by youth because of its labor practices. Shopping there make them feel like they’re spending money in the right place. Companies that really “walk their talk” about cor values will be endeared. If you want to be relevant to Gen Ys, you need to understand their mindset. Understand what they’re doing — and why.
GBN: What’s the hot new thing among Gen Y trendsetters? I assume they all have iPhones...
BYLENGA: Well, iPhones are still very popular, but they’re not as cool as the MacBook Pro, which is the most powerful status symbol among our trendsetters right now. Some of them are living in squalor on 24th and Mission, eating Ramen noodles and shopping at the Goodwill – but they paid two grand for their MacBook Pro. An iPhone is nice for keeping in touch, but let’s face it, it’s yuppie accessory. Toms Shoes are also big right now. Every time we do a focus group wtih trendsetters, at least one of them shows up wearing a new pair of Toms. They’re simply designed and very comfortable, and for every pair you purchase Toms donates one pair to a child in need in Argentina or South Africa. “one for one,” they say on the box. It’s a simple mission and the shoes are hip.
For a great case history on how to target Millennials, check this out.
Businessweek just published a video interview with A.G. Lafley, describing how P&G updated Herbal Essence, “a stale mass-market shampoo” to appeal to younger Gen Y and Millennial women. After immersing themselves in the target, they concluded there was no brand addressing the needs of this age cohort, and that the targe ‘wanted a different haircare, hairstyling product”. They first redesigned the packaging to “fit” a more tailored market by curving the shampoo and conditioner bottles so that they literally fit together on the shelf. The nesting shape not only helped Herbal Essences stand out on the shelf, but also encouraged more young women to buy both products, driving up conditioner sales. According to Lafley, the makeover went well beyond packaging:
“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. While P&G doesn’t break out sales figures on specific products, the company reported in a conference call soon after the shampoo was relaunched that the brand was growing again, with sales growth rates in the high single digits.”
Looking at the Herbal Essence web site, the voice is young without being juvenile, fun while still providing useful information. Benefits include ‘polishing your look’ and ‘luscious hair’. Promotional tie-ins work nicely — pedicures and manicures. Videos provide specific direction on how to achieve that ‘casual sexy, just out of bed look’. Nothing Boomer or tweeny-bopper about that!
