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Back to the Start: Millennials Brand Connections - The Buntin Group
1. BACK TO THE START: MILLENNIAL BRAND CONNECTIONS
The Cause and Effect of Millennials’ Upbringing on Consumer Behavior
2. ANOTHER MILLENNIALS ARTICLE?
Everyone has been searching for the Rosetta Stone to finally crack the code on
the Millennials (born 1977–1994 according to the US Census). It seems like
every week someone publishes an article about who the Millennials are, what
makes them tick, how to reach them,
and why they are so…
ENTITLED
OVERLY CONFIDENT
PAMPERED
SHELTERED
TECHNOLOGY-OBSESSED
ATTENTION-DEFICIT
NON-COMPETITIVE
This document explores why Millennials behave they way
they do and offers insights into the understanding of the upbringing
of this “hard-to-pin-down” generation.
3. WHY ARE THEY IMPORTANT?
NEARLY 80 MILLION MILLENNIALS MAKE UP MORE
THAN ¼ OF THE US POPULATION.
• As Millennials grow in the job market and in purchasing power, marketers
are looking for ways to influence their spending.
• Millennials form strong brand loyalties — 70% come back to brands they
truly love. The 8095 Exchange, Edelman Digital Report, 2010.
• They are considering and starting to make bigger life-decision purchases.
• As major cultural influencers, this generation has the potential to influence
other generations in a meaningful way.
MILLENNIAL PURCHASING POWER MILLENNIAL WORKFORCE
PARTICIPATION Millennials are a
rising power in the US workforce.
2014 2020
46%
36%
$500 BILLION INDIRECT
$200 BILLION DIRECT
Millennials have a strong influence over
their parents’ spending.
GARTNER RESEARCH, 2008
4. UNDERSTANDING MILLENNIALS: UPBRINGING
To fully understand why Millennials act the way they do and how brands can effectively communicate
with them, it is important to consider what factors influenced their behavior.
BEHAVIORS
PAMPERED
SHELTERED
OPTIMISTIC
ENTITLED
BEHAVIORS
NON-COMPETITIVE
MINDFULNESS
TEAM-ORIENTED
POLITICALLY CORRECT
BEHAVIORS
SOCIAL IDENTITY
FAST-PACED
INFO-HUNGRY
ATTENTION-DEFICIT
BEHAVIORS
THRIFTY
RESOURCEFUL
REALISTIC
PRIORITIZED
5. BECAUSE PARENTS WERE…
• Hyper-present parents, ensuring their safety in every situation.
• Overly involved in children’s school and personal lives.
• Anti-spanking, anti-bullying, anti-risk-taking.
MILLENNIALS ARE…
• PAMPERED – Accustomed to getting what they want,
whenever they want it.
• SHELTERED – Lack of experience with hardships and failures.
• OPTIMISTIC – Expectant of positive outcomes in any context.
• ENTITLED – Attitude of unprecedented ownership or divine
right to “something.”
BRANDS SHOULD…
• Adopt A CONSUMER-CENTRIC MENTALITY, via delivery of EXCLUSIVE EXPERIENCES and USEABLE REWARDS (Nordstrom – free fashion
stylist advice).
• Offer products and services that are CUSTOMIZED and PERSONALIZED to suit individual needs (Nike ID – customized shoes).
• Appeal to Millennials’ acceptance of brands their parents love — NOSTALGIC RELEVANCEto their “happy childhood” (Converse Chuck Taylors).
UPBRINGING: HELICOPTER PARENT INFLUENCE
6. BECAUSE MILLENNIALS…
• Grew up as “trophy kids,” rewarded for participation vs. merit.
• Were taught not to discriminate toward others based on
individual shortcomings, and that group success outweighed
individual success.
MILLENNIALS ARE…
• NON-COMPETITIVE – Working together instead of in opposition.
• MINDFUL – Understanding the impact of their actions upon society.
• TEAM-ORIENTED – Able to work effectively and cooperatively
inside and across groups.
• POLITICALLY CORRECT – More sensitive to issues regarding
tolerance and human rights.
UPBRINGING: “EVERYONE WINS” PHILOSOPHY
BRANDS SHOULD…
• Incorporate product features/promotions that are COMMUNITY-MINDED and allow customers to BENEFIT SOCIETY through their
purchase (TOMS – matching pair to child in need).
• UTILIZE CROWD-SOURCING to inspire COLLECTIVE GOALS with incentives for all (Home Depot – Facebook fans vote on a deserving
charity to receive $25K).
7. BECAUSE MILLENNIALS…
• Have never experienced a non-digital world, growing up with
rapidly evolving technologies.
• Are constantly plugged in and engaged with technology and
social media.
+ 83% of Millennials sleep next to their mobile devices.
Pew Research Center, Millennials Study, 2010.
+ Multi-tasking is second-nature.
MILLENNIALS ARE…
• SOCIAL IDENTITY – Online profiles used as expression of self.
• FAST-PACED – Accustomed to fast-moving interfaces to perform
necessary tasks.
• INFO-HUNGRY – Demand instantaneous information at their
fingertips.
• ATTENTION-DEFICIT – Decreased attention span due to regular
multi-tasking.
UPBRINGING: DIGITAL NATIVES
BRANDS SHOULD…
• Build STREAMLINED USER EXPERIENCES, facilitating SIMPLICITY and SPEED(Starbucks – in-store mobile payment system).
• Integrate REAL-TIME UPDATESto keep customers CONNECTEDand to HOLD THEIR ATTENTION (Domino’s – “pizza tracker”).
• Develop INTRIGUING ONLINE CONTENT to appeal to and nurture Millennials’ SOCIAL IDENTITY(Puma – The World of Puma website
features running and fitness best practices).
8. BECAUSE MILLENNIALS…
• Raised in an era of strong family disposable income and a thriving
housing market.
• Faced with a Recession (2008) that was a reality check for their high
optimism.
+ Increased student debt, unemployment, financial constraints.
MILLENNIALS ARE…
• THRIFTY– Changing shopping habits, seeking value over brand name.
• RESOURCEFUL– Utilize all available information to make wise decisions.
• REALISTIC– Have a less naïve approach to adjust inside present
economic realities.
• PRIORITIZED– Make decisions on new set of prioritized standards —
value, quality, relevant to me.
UPBRINGING: ECONOMIC ROLLER COASTER GUARD RAILS
BRANDS SHOULD…
• BE TRANSPARENTand HONEST in order to will gain trust and build loyalty (Patagonia – provide “The Good” and “The Bad” environmental
footprint features).
• Develop a “HUMAN” brand to overcome big business skepticism (Miracle Whip – “We’re not for Everyone”).
9. THE RIGHT BRAND EXPERIENCE CAN DELIVER CRITICAL BENEFITS
Brand benefits must be true to the connection opportunities for Millennials to engage and participate with the brand. Failure to meet the needs of
Millennials will result in brand disengagement, as shown by messaging flops such as Burger King’s Mary J. Blige chicken commercial and JC Penney’s
failed “Everyday Low Prices” initiative.
BRAND CONNECTION OPPORTUNITIES
EXCLUSIVITY
PERSONALIZATION
NOSTALGIC BRAND VALUE
BRAND BENEFITS
PERSONAL-EXPRESSION
“MADE FOR ME”
BRAND CONNECTION OPPORTUNITIES
COMMUNITY
PARTICIPATION
OPENNESS
BRAND BENEFITS
COMMUNITY
SHAREABILITY
PERSONAL REWARD
BRAND CONNECTION OPPORTUNITIES
CONNECTION
STREAMLINED
REAL-TIME
BRAND BENEFITS
SEAMLESS-EXPERIENCE
IMMEDIATE GRATIFICATION
BRAND CONNECTION OPPORTUNITIES
TRANSPARENCY
HONESTY
“HUMAN” ASPECT
BRAND BENEFITS
VALIDATION
EMPOWERMENT
SECURITY
10. BRAND EXPERIENCE OPPORTUNITIES
EXCLUSIVITY
PERSONALIZATION
PARTICIPATION
REAL-TIME
BRAND BENEFITS
PERSONAL-EXPRESSION
“MADE FOR ME”
COMMUNITY
SHAREABILITY
CASE STUDY: LAY’S POTATO CHIPS
• In July 2012, Lay’s introduced the “Do Us A Flavor” Campaign, in which fans were asked to
submit NEW POTATO CHIP FLAVOR IDEAS, to attract online engagement via crowd-sourcing.
• ThecontestTARGETEDMILLENNIALSthroughFacebook,invitingthemtosubmitchipflavorideas
online, then vote on their favorite chip flavor idea.
• The brand INTERACTED WITH FANSvia Facebook and sought advice from fans on new product
ideas through online conversation.
• Chip flavor finalists WERE RECOGNIZED AND AWARDED PRIZESwhile all FANS RECEIVED
COUPONS UPON ENGAGEMENT.
• The crowd-sourced campaign received 3.8 million submissions and drove trial/sales throughout
the duration of the contest.
11. BRAND EXPERIENCE OPPORTUNITIES
COMMUNITY
PARTICIPATION
OPENNESS
“HUMAN” ASPECT
TRANSPARENCY
CONNECTION
BRAND BENEFITS
COMMUNITY
SHAREABILITY
SEAMLESS EXPERIENCE
EMPOWERMENT
CASE STUDY: ZIPCAR
• ZipCar is a car-sharing company that charges by-the-hour to use one of their fuel-efficient cars.
• The program allows users to communicate via phone, website, or mobile app, which can
CONNECTand pinpoint the locations of other ZipCar users.
• Mobile integration through the app helps to SIMPLIFY THE SHARING PROCESSbetween users.
• Once a customer has finished using a ZipCar, it will be parked and PASSED ON TO A NEW CUSTOMER.
• One of the advantages ZipCar claims is the REDUCED CARBON FOOTPRINT that a community
can have by lowering the number of drivers.
12. BRAND EXPERIENCE OPPORTUNITIES
CONNECTION
STREAMLINED
REAL-TIME
COMMUNITY
PARTICIPATION
OPENNESS
BRAND BENEFITS
COMMUNITY
SHAREABILITY
SEAMLESS EXPERIENCE
PERSONAL EXPRESSION
CASE STUDY: RED BULL
• For years, Red Bull has remained one of the top brands among Millennial men.
• Instead of focusing on the energy drink itself, RED BULL ATTRACTS ENGAGEMENT THROUGH ITS
“EPIC” CONTENT MARKETING.
• Videos, articles, games and music to appeal to the younger generation and has ACCUMULATED
THOUSANDS OF SHARES AND LIKES.
• The Red Bull “Stratos Live Jump” and Art of Flight skiing film are examples of the viral nature of Red Bull’s content.
• The EASY-TO-USE WEB AND MOBILE INTERFACE ALLOWS USERS TO VIEW AND SHARE CONTENT
EFFORTLESSLY.
• The tagline, “Red Bull Gives You Wings” offers aspirational brand MESSAGING, encouraging fans to grab the bull
by the horns.
13. BRAND EXPERIENCE OPPORTUNITIES
TRANSPARENCY
HONESTY
“HUMAN” ASPECT
COMMUNITY
PARTICIPATION
OPENNESS
CUSTOMIZATION
BRAND BENEFITS
EMPOWERMENT
SECURITY
COMMUNITY
SHAREABILITY
CASE STUDY: CHIPOTLE
• Chipotle was founded on the strategy of targeting Millennials by developing a REPUTATION FOR A
HEALTHIER FAST-CASUAL OPTIONthan its competitors, using only local and organic products.
• Initially, Chipotle spread its message using non-traditional media, understanding that “MILLENNIALS VIEW
THE LACK OF TV AS MORE AUTHENTIC AND ARE LIKELY TO DISMISS A LOT OF CLAIMS.”
• The “BACK TO THE START” ONLINE VIDEOfeaturing Coldplay’s “The Scientist” telling the story behind
Chipotle’s local and organic background has accumulated over 7 MILLION VIEWS.
• The Farm Team rewards program offers DISCOUNTS that can be obtained through online quiz scores
BASED ON SUSTAINABILITY AND ORGANIC FARMING KNOWLEDGE.
• Last year, Chipotle saw 23 percent sales increase and an 11 percent same-store increase.
14. IF NOTHING ELSE, KNOW THIS…
• Ongoing interest by brands and marketers in tapping into the Millennial
generation is not unexpected. This age group is simply too large in size
and market influence to be ignored.
• In order to fully comprehend why Millennials act the way they do, a focus
on their behavioral development is necessary to identify how they react to
certain stressors.
• Behavioral trends resulting from their upbringing give us direction on how
to connect with Millennials, as well as understanding the potential
benefits brands can provide and leverage throughout all transactions.
• Brands like Lay’s, ZipCar, Red Bull, and Chipotle have demonstrated how
to effectively communicate with the Millennial generation.
• This is an age of omni-channel retailing and multi-device connection.
Brands must strive to understand every aspect of the Millennial
generation to reach them successfully. It is critical to consistently watch,
learn, adapt and adjust on an ongoing basis in order to keep up and stay
connected with this “hard-to-pin-down” generation.