Linda Duke, CEO, Duke Marketing, LLC.

w w w . D u k e M a r k e t I n g . c o m April 22, 2015

Millennial’s—Gen Y: Communication and Converting the

next generation of Customers

Millennials are more than 100 million people strong in North America, poised to overtake boomers as the largest living generation this year.

Millennials – Who are they?

More technology-focused than previous generations according to the U.S. Census

Bureau.

They don't let that technology keep them away from retail storefronts Buy locally, even if goods or services were more expensive than mass-market alternatives. In fact, 40 percent of Millennials in a recent study claimed that they preferred to buy local. They prefer to be inside a retail store talking to a helpful, human sales associate, though Millennial shoppers will research and purchase products online.

Millennials – Who are they?

The Landscape Has Changed....

• Successful leader brands are modifying their brands not only due to the recession but also due to some of the changes in the marketing environment—changing demographics along with: – Consumers have changed from risk seeking to risk adverse – Consumers seek genuine and not invented value – Consumers have entered the era of personal choice – The distribution universe has become more complex – The media universe is fragmented

Political issues: Wages, tips Insurance, Medical benefits Menu Labeling and Nutrition concerns Food handling and plastic bag bans

Brand Leaders

Change Required!

Millennials generally born between 1980 and 2000 — possess growing spending power. One of the largest generations in history is about to move into its prime spending years. “Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come. Millennials hold about $1.7 trillion in spending power, and they are closing in on the long dominant clout of baby boomers, generally born between 1946 and 1964, with $2.1 trillion in spending power.

Millennials – Who are they?

Millennials – Who are they?

• Word of mouth has the most influence on their product purchases, mostly through product ratings and recommendations from peers or friends on a brand's Facebook or Twitter page. • Compared with other generations, millennials are also more likely to explore brands on social networks — 53 percent of millennials explore brands, versus 37 percent all other generations. • When it comes to trying to satisfy millennials, the bottom line for brands is adaptability. One minute they want to shop and compare online and via every social networking site available, and the next they want to purchase in store. • Retailers essentially need to provide ‘endless aisle’ capabilities in every channel and location. • When marketing to millennials, retailers and brands must strike a balance between personalizing the shopping experience via individualized product information and not overwhelming or overstepping perceived boundaries of privacy.

Millennials – Who are they?

According to a study by Boston Consulting Group.

Common Themes of Millennials:

• Fresh & Organic Food- Millennial’s place an emphasis on fresh and organic—fast casual is winning

• Variety & Customizable -Millennial’s expect to be able to build their own meal from a variety of choices. They want to customize their meal and personalize their experience.

• Social Change - Millennial’s care about social issues and support companies who actively help address problems

• Sustainability - Millennial’s support brands that are proactive with sustainable farming and environmentally conscious.

• Social Savvy - Active Facebook & Twitter pages that engage consumers tend to have long-term support from Millennial’s.

Millennials – Who are they?

• Millennials interact with brands differently than prior generations. • It's not about push marketing and brand endorsement. They value the opinions of their peers and community. Millennials want to feel informed and involved, not just someone you're marketing to. • Connect [with them through] values that drive them, such as happiness, passion, diversity, sharing and discovery. • Millennials care as much for what a brand stands for as they do for the product that the brand makes. • To Millennials, both the brand story and the company's integrity matter a great deal. • Think about Millennials first, rather than thinking about how you want to sell.

Millennials – Who are they?

MILLENNIAL DADS (the upper echelon turning 35 this year)

According to the findings of several studies, millennial dads are proving to be a very unique group, with behaviors we have not witnessed in any generation prior. Millennial dads are not only redefining fatherhood -- they're influencing parenthood. These enthusiastic parents are spending more time with their kids, doing a larger portion of the household shopping and spending lots of money. More shared tasks means more dads shopping. According to Mintel, 80% of millennial dads claim primary or shared grocery shopping responsibility (compared to 45% of all dads, according to Y&R's BrandAsset Valuator data).

Millennial dads -- dubbed

“supermarket natives” – make their own choices.

MILLENNIAL DADS So how do Grocers get on "dad's list?" • First of all, recognize and appreciate the important role they play in the millennial family. Make sure you're not just connecting with them in your marketing, but also helping and supporting them through meaningful and useful brand behaviors. • Help dads get the most of out of their grocery experiences before, during and after shopping. • Brands can benefit from considering how packaging, signage, demos and technology can help dads navigate the grocery store and mealtime with their families.

MILLENNIAL DADS Less couponing. Conventional wisdom has typically been that once young people become parents, they start to bargain hunt for deals on everything from diapers to shampoo. Not so for millennial dads. These shoppers are actually more concerned with quality than savings, and are willing to spend more to feel good about what they are bringing home for their families. While men in the past started clipping coupons and buying minivans once they became fathers, Millennials are doing it a bit differently. Don't even suggest coupons to millennial dads, with more dads (34%) than moms (11%) claiming that using coupons at the check-out counter or online makes them look (or feel) cheap.

FEMALE MILLENNIALS

Millennial women share images –but grocery stores aren’t too interesting. Grocers need something interesting or out of the ordinary to attract their attention - such as a fish with a silly expression on the seafood counter. Grocers should take note of this behavior and provide opportunities for photo-sharing, perhaps via engagement on packaging or aisle and store-wide promotions. A third of Female Millennials are annoyed or stressed in the grocery store—this fact reveals an opportunity for marketers to make shopping more fun and playful. Creating smartphone apps that make shopping quicker and easier as well as increasing the number of self-checkout stations would go a long way toward creating a more loyal Female Millennial customer base.

FEMALE MILLENNIALS

They are more likely to plan their shopping around a specific recipe they’re planning to cook, to buy ingredients the same day they’re preparing a meal, and look for minimally processed and locally grown food and beverages. They look for labels that say Local, Free-Range, and No Animal Byproducts. Meanwhile, 62.6% of 25-34-year-olds say they like to try new foods they’ve never eaten before, more than any other age group, with 16-24-year-olds trailing closely behind at 60.7%, supporting Millennials’ reputation for being more open to new food experiences RECIPES -- COOKING TIPS -- MERCHANDISE MEALS – DISPLAY ENTIRE TABLE

Female Millennials want to be and are foodies.

Millennials are the foodie generation, constantly trying new, exotic dishes and jumping on the latest flavor crazes faster than you can say “Quinoa” (pronounced KEEN-WAH)

Millennials are the most culinarily curious, and when they're not eating at some new fusion restaurant, they're browsing Whole Foods for organic, sustainably-grown, locally-sourced, farm-raised, free-range ingredients they can't find at any old grocery store. Whole Foods gives its Millennial customers everything they want in a food shopping experience: quality, variety, and background information on basically every product they have in their stores (something 80% of Millennial customers say brands don't provide enough of). Essentially, knowing that the peanut butter they just picked up was ground from hand-picked Argentinean nuts makes Millennials feel a lot better about spending $11 on it.

CASE STUDY:

Story telling: where their food comes from!

Cause Marketing: Giving back with KIDS Foundation

Cause Marketing: Giving back with KIDS Foundation

Cause Marketing: Giving back with KIDS Foundation

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

Fry’s Scottsdale

There is a lot at stake. Simply put, this is a massive generation with a population size surpassing even Baby Boomers. NOT understanding them, NOT finding ways to be relevant or engaging to them, NOT adapting to their new expectations— it’s the easiest way for a brand to fail.

What’s at stake for Grocery Marketers?

What’s next for Grocery Marketers?

1. Embrace Change!

2. Invite Millennial Moms into Shop & Ask Questions! Get to know them!

3. Merchandise for Dad? Shaving products, light bulbs and automotive oil, where are they?

4. Story Telling—through signage, packaging, and social media. Merchandising with local purveyors and vendors and sampling!

5. Get your social media channels working harder

to engage and connect with Millennials.

Contact:

Linda Duke Email: duke@dukemarketing.com Twitter: @dukemarketing Websites: www.dukemarketing.com www.marketing-cookbook.com www.lsm-u.com Blog: www.marketing-cookbook.blogspot.com