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Prepared by Carol PhillipsBrand Amplitude, LLC @2009 All Rights Reserved

Marketing to Millennials

September 2009

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• An ‘accidental expert’ who has learned to appreciate Millennials first-hand as a researcher, professor, blogger and parent.

What do I know about Millennials?

2008-2009 Millennial research projects & speeches: Client funded: University of Notre Dame (young alumni), Hanover College, Vogue, Corona, Maple Leaf Farms, JCPenney, State of Washington NoStankYou campaign. Self-funded: Millennials & workplace, Millennials & social media, Millennials & fundraising.

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The answer depends who you ask! First began to be recognized as ‘different’ by marketers about 2003. Now they are a virtual industry.

No agreement on dates…or even names for this cohort among the so-called experts!

Who Are The Millennials?

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Who Are The Millennials?

Defined as much by a mindset as by birth year, Millennials are people who were shaped by demographics, parenting styles, economic conditions and prevailing cultural norms. The most important shaper for Millennials: THE INTERNET.

Boomers Gen X Millennials Gen Z

19901955

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• Millennials and other generations agree they are the ‘most self-indulgent’ of generations. They know they are the product of a doting parents and a booming economy. But they also believe they have worked hard to achieve and live up to parental expectations. They hold themselves to a very high standard.

Millennials are a product of their upbringing.

http://www.marketingcharts.com/topics/demographics/widely-held-attitudes-about-various-generations-studied-5813/harris-generation-most-self-indulgentjpg/

“I have too many goals right now! I'm entering my first year of graduate school and I'm also working on fellowship apps and also starting my first novel.” –20 year old woman.” –Gen Y woman

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Size80 mil.

Understanding this cohort group will determine overall marketing success going forward due to their large size and accelerating influence.

Why Millennials Matter

Political Influence

Cultural Taste-makers

Purchasing Power

Empowered by Technology

Agents of Change

"The digital revolution has not only given this generation of young people access to knowledge and information on an unprecedented scale, but it has also given them massive influence.”One Young World http://www.oneyoungworld.com/about/index.html

Why Millennials Matter

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• Millennials are often misinterpretted; they do not see themselves as others do.

Millennials are often surprised to learn how others see them.

Dislike labels

Consider many criticisms to be strengths.

Friction in the workplace is giving Millennials a bad name.

“Gen Y is just a tag [by adults] that describes how much adults have forgotten on what it is like to be a teen.” - Twitter message

Don’t understand why the world doesn’t see things their way – this is reasonable.

“If it’s broken, why not fix it?”-Blogger

Expect appreciation for how hard they work and what they have to offer.

“If you've got a Gen Yer who doesn't have high expectations, you probably hired the wrong person.” – Bruce Tulgan, Not Everyone Gets a Trophy

“‘Impatience and arrogance’ are signs of ‘confidence and willingness to speak out’. What looks like ‘laziness’, is a desire for ‘balance’; ‘overreliance on technology’ is ‘efficiency.’ “- CP

“Gen-Y behavior. @FAquila: incredible!! RT @NancyFoxIntern quit in middle of a project, no warning after making big mistake” – Twitter message

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Some points of consensus in the research:

Optimistic Diverse

Frugal shoppers, price conscious

Believe in institutions

Critical of business

ethics/morality

Maintain close ties with family, like and

admire parents

More politically involved than

Gen X

Like collaborative, supportive

environments

Socially conscious

Want a balanced life

Want to be rich & famous – and

think it’s possible

Distrustful of ‘marketing’

Digital natives

Value fresh foods and exercise

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Millennials behave differently.

Different media habits – early adopters of the ‘third screen’ they expect to watch what they want, when they want where they want.

Sophisticated food preferences – more fresh fruits & vegetables, local foods, visit farmers markets, enjoy sushi and ethnic foods, high interest in cooking and gourmet foods. 40% consider themselves ‘foodies’.

Different use of time – go to bed later and sleep less, spend more time in sports and in reading and ‘other interests’ – like Sporcle.com. Millennialsare chronically tired, but actually ‘time rich’ relative to other gen’s.

Communicate differently – favor text & social media over email & telephone, less interested in Twitter, favor Facebook and Myspace though showing signs of social media fatigue. FB links 9MM-18MM April to Aug!

What makes them unique, perhaps in all history, is access to platforms to broadly communicate and share their ideas. This ability alone may make the gap between Gen Y and earlier generations more striking than any gap before or after.

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Millennials are more liberal than earlier generations.

http://www.youtube.com/watch?v=R7yfISlGLNU&feature=player_embedded

http://www.youtube.com/watch?v=4JMOh-cul6M

34 million views

There are marked differences of opinions on cultural and political issues. Gen Y is accepting and tolerant, diversity is a given. Manyhave dated someone of another race.

Nothing shocks them. They use profanity for emphasis, not to offend. Young males say Family Guy is their favorite way to relax.

23 million views

Many ‘vulgar’ videos have high awareness among Millennials -- and virtually none among other generations.

Source: Pew

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“Survey shows widest generation gap among American

children and their parents.” According to the Pew Study,

almost eight in 10 people believe there is a major difference in

the point of view of younger people and older people today.

“Study: Generation gap in U.S. largest since ‟60s.” A

survey Monday by the Pew Research Center highlights a

widening age divide after last November’s election, when 18- to

29-year-olds voted for Democrat Barack Obama by a 2-to-1

ratio.

Is there is a generation gap?

Yes…and it’s as wide as it was in the 60’s. Biggest

differences concerned issues of morality, religion, and the

social values surrounding lifestyle, family, relationships

and dating. Older people also cited differences in a sense

of entitlement. Those in the middle-age groups also often

pointed to a difference in manners.

But the generations have learned to ‘mind the gap’ . While

they may not see eye to eye, they have determined to be

tolerant of their differences.

“Study finds widening generation gap in

America.” From cell phones and texting to

religion and manners, younger and older

Americans see the world differently, creating the

largest generation gap since the tumultuous

years of the 1960s and the culture clashes over

Vietnam, civil rights and women’s liberation.

“They describe their parents with shocking regularity as their “best friends.” – NYT, Class of 2009, June 2009

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“In 2007, I fielded a global quantitative study of Gen-Yers in 13 countries and was surprised to find the No. 1 attitude unifying the generation was: "I would fight for a cause I believe in." A large majority of global Gen-Yers agreed with it from among dozens of other attitudes…” - Chip Walker, Strawberry Frog

Millennials want different things out of life.

Millennials are determined to make an impact. Their early idols were young, idealistic characters out to

make a difference. Today volunteering rates are soaring, Teach for America and Peace Corps are

experiencing record applications.

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Millennials relate to traditional values.

Pick three adjectives that best describe your values

Authenticity

Self-expression

Adventure

Caring

Meaning

20-24 year old women

25-29 year old women

How the ‘person who knows you best’ describes you

20-24 year old women

25-29 year old women

Each age is defined by unique set of interests, values and challenges, yet they are remarkably consistent in their values.

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“I am member of Gen Y and we are decisive, regardless of the stereotypes. Most know what we want and are seeking balance in life is a big part of getting it. Gender roles in parenting and family are a little lest stringent and the whole dynamic of a family is shifting a little. I see that in a lot of my friends.”

Millennials are cautious about marriage.

Just 22% of those 18-30 have a strong view of marriage, while 14% express strong sentiments against it. Those in the middle have mostly a ‘practical’ view of marriage and plan to either wait a while or live with someone before committing. – TRU Research

Millennials aspire to having a serious relationship and children, but not necessarily marriage at least not right away. The average age of marriage is 25 for women, reflecting a desire to be established before settling down. They are fascinated by Barack and Michelle, a loving and respectful couple.

A Model MarriageEqual & Devoted

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“For first-wave Millennials like myself, we were coming of age just as all the characters on FRIENDS were starting to settle down and even have babies. I think girls my age thought “Why am I going to waste a decade trying to find myself, when in the end what I’m looking for is a family?”

Millennials plan to have a family of their own.

77% of students nationwide say “raising a family” is an “essential” or “very important” life objective*. Birthrates are climbing. More babies were born in 2007 than in 1957. Many feel prepared to be a parent. The Juno Effect?

Millennials are determined to be good parents. Young parents plan to share child care responsibility and to enjoy alternating periods of working and staying home, or working from home.

*(In 1977, by comparison, just 59 percent of students gave the same level of importance to raising a family.)

“Amy is going to be a great mom. yes, it will be dificult she mite even have to dump Ben and focuse more on baby John. Ricky is also going to be a great daddy..::. I LOVE THE SECRET LIFE OF THE AMERICAN TEENAGER.::.”

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“What people have long cared most about are their connections with other people. As a result, it's amazing that the digital world has taken this long to find value in this fundamental purpose. "You have to figure out how your product can uncover social relationships,“ No More Teachers, No More Books: The Social Student Comes of Age

Relationships and social issues are a top priority for Millennials.

When we ask 20-24 year old women what their friends look to them for, what they are ‘experts’ at, most say ‘relationships’.

Emily : I'm considered an expert on relationship advice. A lot of people come to me with dating problems and scenarios.Tiffany N.: My friends look to me for advice on relationships, fashion, and makeup.

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Millennials face adult-like social pressures at an earlier

age than other generations. 2008 study conducted by

the National Institutes of Health (NIH) found 42.6

percent of high-school seniors said they had tried

marijuana, as had 14.6 percent of eighth graders.

Ironically, at the same time childhood is disappearing,

adolescence is being extended with dependency on

parents extending into late twenties.

The result is one of the longest periods of „young

adulthood‟ in history.

Millennials face intense pressure to grow up fast.

http://www.chicagomag.com/Chicago-Magazine/September-2009/The-Secret-Life-of-Teens-A-Special-Report/index.php?cparticle=2&siarticle=1#artanc

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Adding to typical pressures of social acceptance are pressures to succeed and attain their parent’s lifestyle. Concerns about funding college or coping with future debt are top of mind now. Many are burdened (or will be) by high college debt - average of $27,000. BLS data shows single people today are not as well off as they were 20 years ago.

“One question that elicited a robust response was whether life is harder or easier for today’s teens than it was for their parents. Most teens

insisted it was harder, and when we asked why, one word inevitably surfaced: pressure.”

“also reported pressure to meet or exceed their parents’ lifestyle. “One of our teachers asked why we try hard in school,” said a New Trier Township High School student, 18. “I raised my hand and said it was because my parents would kill me [if I didn’t]”.

“One girl said it was for maintaining the lifestyle we live right now. “A lot of the kids I know are worried about not living up to their parents’ expectations.” She went on to describe how that translated

into additional Advanced Placement (AP) courses, extracurriculars, volunteer hours, and, for her, even a part-time job. “There’s a lot of pressure to succeed, so when [kids] have free time, they go crazy.” –Chicago Magazine, Sept 2009

Millennials report high levels of stress.

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Millennials are actively shaping their dreams and believe they can make them come true. Most envision a flexible ‘slash’ career that sequentially encompasses a variety of interests and allows time to pursue outside interests… but the recession is taking its toll.

Millennials are also concerned with defining and realizing their adult identities.

“According to a survey by Lee Hecht Harrison Company, 60% of employers are experiencing tension between employees of different generations. The survey found that 70% of older employees are dismissive of younger workers' abilities, and 50% of Gen Y workers were dismissive of older workers' abilities.”

“I’m a mixture of excited and nervous for the future.” “But there’s no point in getting upset, because it’s not the end of the world.” Forrest Petterson, a graduating senior at Friends Seminary.

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Millennials may redefine the American dream.

62%"Having a satisfying career that contributes to society in

some way is more important than just making a lot of

money”

"I would rather have a happy marriage and children with

an average paying job at age 35 instead of making a lot

money without a spouse and children at age 35."

"To be truly happy in life, I need to be making a lot of

money"

Agree completely

Agree somewhat

26% 37%%

28% 34%

24% 38%

Disagree completely

Disagree somewhat

63%

62%

Total

Millennials are putting family, flexibility, and balance ahead of career and money. Economically, it is unlikely they will enjoy the same standard of living as their parents. Some are asking if this is the ‘new normal’? Will this be a new ‘downturn generation’?

http://gendigital.typepad.com/gendigital/2009/08/the-new-normal-emerging-recessionbased-trends.html

Will this be a new ‘downturn generation’?

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Millennials can laugh at themselves and appreciate irony, age-specific cultural allusions.

..

.

Answering the same letter three times or more in a row on a Scantron test is absolutely

petrifying.

A recent study has shown that playing beer pong

contributes to the spread of mono and the flu. Yeah,

if you suck at it.

I think part of a best friend's job should be to immediately clear your computer history if you

die.

There is a great need for sarcasm font.

If Carmen San Diego and Waldo ever got together,

their offspring would probably just be

completely invisible.

You know you're gen-y when you expect a red squiggly line to show up under your handwriting when

you misspell something

Lol has gone from meaning, "laugh out

loud" to "I have nothing else to say".

While driving yesterday I saw a banana peel in the

road and instinctively swerved to avoid

it...thanks Mario Kart.

I totally take back all those times I

didn't want to nap when I was younger

I can't remember the last time I wasn't at least kind of tired..

When I meet a new girl, I'm terrified of mentioning something

she hasn't already told me but that I have learned from some

light internet stalking.

Source: “Random thoughts of people our age” -Bangitout.comSee also: Textsfromlastnight.comFmylife.comFailblog.org

If, years down the road when I'm trying to have a kid, I find

out that I'm sterile, most of my disappointment will stem from the fact that I was not aware of

my condition in college.

I would bet on any given Friday

or Saturday night more

kisses begin with Miller Lites than

with Kay.

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Engaging Millennials is getting harder.

Diverse interests and backgrounds.

Fierce competitionfor their attention.

Expect content free and on demand.

Incredible filters –technology and psychology.

Distrustful of marketing.

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Look for brands that ‘walk their talk’ - ethical, inspirational, cool, socially conscious / responsible & sustainable, healthy, efficient, customized….

Brands that are winning with Millennialsreflect their values and speak to their socialconcerns:

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“[Millennials] are optimistic, they make decisions by consensus, and they’re diverse — but most importantly they love family, which is great for our name and the brand,” he said. “They may define family differently — it’s not Ozzie and Harriet, but rather a much messier, more passionate, more fun, more real family.” –Paul Lee, President ABC Family

Several brands have successfully repositioned to Millennials:

"Many people enjoyed Miracle Whip in the past, but with so many flavor options today, many of them --especially younger consumers -- have lost sight of this tangy original dressing," the spokesperson says. "We have reinvented Miracle Whip, and we want to bring its one-of-a-kind flavor back in front of younger consumers who might not be thinking about it." –Kraft spokesperson

Kraft Miracle Whip P&G Herbal Essence ABC Family Channel

“We totally reframed the proposition (to appeal to Millennials),” 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.” –Business Week

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Advice for Connecting with Millennials

1. Be Authentic: Millennials give everything the smell test before they give consideration. 2. Be Relevant: Do you really understand what matters to Millennials? 3. Be A Necessity: Millennials regard themselves as cash-strapped and on the edge of financial calamity; the ‘luxury’ position is unlikely to resonate. 4. Be A Value: Millennials are careful shoppers. They do research and compare prices before they buy.5. Be Socially Responsible: A relevant cause can keep your brand top of mind, make it talk worthy and act as a tie-breaker when all else is equal. 6. Be Shareable: Everyone knows Millennials are avid users of social media, and the reason is that they love to share. ‘Social currency’ takes many forms – a laugh, some news, a tip, a coupon, a free app. 7. Be an Experience: Millennials are more interested in doing cool things than having cool things. They are curious, want to learn and believe experiences are a way of investing in themselves.

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Engaging Millennials = Enabling Discovery + Energizing Experience + Encouraging Advocacy

Final Thoughts

Is Your Brand Millennial Ready?

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http://brandamplitude.com

http://millennialmarketing.com

carol@brandamplitude.com

http://twitter.com/carol_phillips

http://linkedin/in/carolphillips

Thank you!