How Marketing to Moms and At-Home Millennials Can Help Retailers Thrive During a Recession Price reductions have been retailers’ primary response to the recession, but consumers’ responses are far more varied, particularly across cohorts. While Americans have demonstrably tempered their conspicuous consumption, other purchase factors such as brand affinities, social conformity and the need to be on-trend haven’t disappeared altogether.Younger millennials must balance their families’ new frugality with peer pressure to have and wear what’s in. Hear new consumer research into the millennial cohort and their Moms with whom they share the shopping process. Learn innovative ways marketers can use the online channel to drive purchases while providing better decision support, emotional reward and budget-sensitive options for the recession-rewired.

1. THE NEW DOMESTIC ECONOMY:
How Marketing to Moms and At-Home Millennials Can Help Retailers
Thrive During a Recession
KELLY MOONEY
President and CXO, Resource Interactive and co-author of The Open Brand
PRESENTED BY: SPONSORED BY: SPONSORED BY:

2. RECESSION
OBSESSION

3. THE LOST DECADE?
Median household income in 2008
slipped to $50,303 from $51,295
in 1998.
Source: U.S. Census Bureau, 2009
DEPRESSION
DEPRESSION

5. Percent Change Same Store Sales August 2009 vs. August 2008
TJX
Aeropostale Companies
Costco
Limited
Kohl's Brands
Buckle
Gap, Inc.
American Target
Eagle
JCPenney
Neiman
Marcus
Hot Topic
Abercrombie
& Fitch
Saks
Source: Retail Forward, November 2009

6. Shifting gears...
Real Personal Consumption per Capita vs. Savings
YEAR OVER YEAR CHANGE / PERCENT
SAVINGS
CONSUMPTION
Source: EconomPic Data, June 2009

7. Sales at Goodwill stores open at least a year rose
7.1% in the first three months of 2009
over the same period a year earlier.
Source: NYT, June 10, 2009

8. 90% of the U.S. respondents said that
their households had reduced spending
as a result of the recession. 45% of
those who reduced spending did so by
necessity, 55% by choice
McKinsey Quarterly, March 2009
CONSPICUOUS CONSPICUOUS
CONSUMPTION CURTAILING

9. After completing a shopping
5.3% felt
guilty and 20% said they were
WWD, April 2009
CONSPICUOUS CONSPICUOUS
CONSUMPTION CURTAILING

11. the web is projected to influence
50% of offline sales by 2012
TOTAL SALES (millions)
Offline Sales
Total Online
Impact
50%
48%
45% 47%
42%
38% Offline Sales
Influenced
by Online
Online Sales
2007 2008 2009 2010 2011 2012
Jupiter: US Online Retail Forecast, 2007 - 2012

12. Q.
How has the
consumer changed?
Will the changes be
enduring?
Is there untapped
opportunity in this
crisis for online
retailers?

13. Remember the 1990s?

14. basement but kids, it turned out, were
still willing to pay up to fit in
Source: No Logo, Naomi Klein

15. GEN Y:
The prematurely affluent generation

16. 1st wave feel recession is unfair
Besides fear, how do most Millennials feel about the recession? A narcissistic
sense of being unfairly burdened. Yet some optimism emerges as well.
My generation is being dealt an unfair NO FAIR!
blow because of this recession
The current situation with housing prices
actually makes me feel optimistic about
buying a home
All of the online resources for jobs
searches and networking make me feel less
anxious about losing/finding a job
If the employment situation worsens, I may
have to move back in with my parents
My friends are doing interesting entrepreneurial
things to make more money
Most of the people my age that I know are
not that worried about the recession
% who agree
start my own business Among young adults 18-29
Source: JWT, 2009

17. Thrift is an alien virtue

18. OUR METHODOLOGY
SECONDARY SYNTHESIS
150+ articles, Forrester, Nielsen,
McKinsey, ExactTarget, JWT, Gen Buy
+ hief urchasing fficer
PRIMARY RESEARCH
• 20 in-person interviews
• 50 online participants in a 10-day forum
discussion with Harris Interactive
• Tested 3 RI visual prototypes
• Conducted survey with BIGResearch
• Partnered with ExpoTV
• Tapped RI Trendwatching practice
hief nfluencing fficer

19. DIGITAL TEEN
•Age 13-18, mix of race, income-
earning/non-income-earning
•Shops online, regular internet and
email user, use of social networking
and SMS and owns cell phone.
DIGITAL MOM
•Age 30-55, mix of married/single,
income, and race
•Shops and purchases online;
frequent email user; some use of
blogs, social networks, and/or
Twitter, online reviews and texting.

20. UNDERSTAND
THE REWIRING

21. RECESSION
SHOPPING
BRAND
DIGITAL

22. RECESSION
SHOPPING
BRAND
DIGITAL

23. DIGITAL TEENS
Forced to grow up faster
Typical teen egocentric worries displaced.
DIGITAL MOMS
Reconciled yet feeling fortunate
Chance to reset family values, become more
resourceful, prepare for the future.

24. 81% of household heads say
that kids
are aware of
the recession and the
impact it is having on
household budgets.
Source: Ad Age, April 2009
generations who over-
consumed. So I
hope we
can learn from their
mistakes and be the
generation that lives within
Alicia, 18

25. 2nd wave facing recession head-on
Recession-related issues have replaced more typical teenage ego-centric
worries as their top concerns. (Among teenagers 13-19)
If there will be good jobs when I graduate 293
things I like because of the recession 251
How my parents are doing money-wise 249
The condition of planet Earth that will be 221
left to my generation
201
How attractive I am to others 180
Which college I/my family can afford 151
Which college will accept me 143
How many friends I have 92
How popular I am at school 78
75
Keeping up with what other kids my age have 73 Base = 100
Source: JWT, 2009

26. Teens have become more enterprising,
unemployment at record high 26%
grandparents, parents
aunts & uncles
eBay, Craigslist
jobs (babysitting,
dog walking, etc.)
allowance

27. recession can come on and
how long it can take to get
out of one.
set a good example
for my children and
teach them to be smarter
Alanna, 34
lesson in how to live within
your means and separate
wants from needs.
Pamela, 47

28. RECESSION
SHOPPING
BRAND
DIGITAL

29. DIGITAL TEENS
Savvier about financing
their purchases
Have discovered online research, coupons,
clearance racks, selling and swapping.
DIGITAL MOMS
Smarter, prouder about living
with less
Distinguishing between needs vs. wants, relying
on codes and coupons, shopping clearance first.

30. actually save my money
before I make a purchase.
business as a young man
John, 16
69% of young people now
research all purchases
before they buy anything.
Source: OTX, May 2009 Luke, 13

31. Over the next five years,
moms of teens plan to:
57% consider purchases carefully
57% be more price conscious
55% stick to a budget
57% dine out less
Source: BIGResearch, July 2009

32. habits
will not change back
once the recession is over.
We are not lacking for the
basics and still have a
wonderful life. Less is more
Blanca, 43
Coupon sites have been
the second-most-visited
category on the Internet
behind job sites for about a
year.
Source: eMarketer, May 2009

33. RECESSION
SHOPPING
BRAND
DIGITAL

34. DIGITAL TEEN
Holding out
Deferring purchases and selectively trading
down or changing channels
DIGITAL MOM
Trading WAY down
before their own; rethinking luxury

35. to give up. I notice the
difference in quality so I
usually compromise by
buying good brands
on sale. Alicia, 18
Brand loyalty is increasingly
important among 13-21 year any brands. I maybe
olds, as 73%now shop
at a fixed group of but I still buy the same
stores.
David, 17
Source: Euro RSCG Discovery survey, May, 2009

36. Favorite Brands During the Recession,
Resource Interactive and Harris Interactive, 2009

37. SHOPPING
DIGITAL MOMS Favorite Brands During the Recession,
Resource Interactive and Harris Interactive, 2009

38. specific brands anymore. I
realized that
a $300 purse as much as
my kids need clothes and
Keri-Anne, 32
43% are buying store Target shopping
brands instead of national going now ....
or high-end brands. previously it was
Source: TNS Retail Forward, August 2008 Sheryl, 49

39. RECESSION
SHOPPING
BRAND
DIGITAL

40. DIGITAL TEENS
Seeking independence from
adults through digital devices
more ways to experience freedom
DIGITAL MOMS
Seeking control and connection
A means of getting answers and more value,
monitoring kids, finding social fulfillment

41. -generation gap
between under-twenty and over-
progression of technology in the
GenBuY, October 8, 2009

42. Reliance on texting and SNing
Net Change in Communication Usage by 15-17 year olds in last 6 months
44 • Texting, social networking grow
at IM's expense
• Email usage rising slightly,
% NET CHANGE IN USAGE
significantly more among
25 smartphone owners (25% of teens)
Instant
4 Message
% more often - % less often
Text Social Email
Network (7)
Source: Exact Target, July 2009

43. focused on communication
that iPhones are the
new jean.
Source: AdAge.com, April 2009
Most of 8-14 year olds report
having online chores
including sharing pictures
with relatives (38%) and
getting driving directions DIGITAL =
(35%). Teenage
Source: GenBuY, October 8, 2009 Freedom

44. almost always
check online
Louise, 49
40% of total online spending
came from $100K HH
consumers, who increased
shopping by 17% in Q4,
2008. Tracee, 51
Source: comScore, 2009

45. SHOPPING
Moms with teens said the internet...
46% Helped me save money through access to easier
price comparisons, coupons, and deal alerts.
41% Helped me become a smarter shopper; product
reviews and ratings, blogs, and product information has
helped me make more informed purchases.
21% Helped me make money through selling things I
no longer need on sites like Craigslist, eBay, etc.
DIGITAL MOMS Source: BIGresearch and Resource Interactive, August 2009

46. UNDERSTAND
THE REWIRING
 Listen with a new ear let go
of truisms!
 Seek to understand the
clashing value systems
 Identify new segments to
serve or new ways to deliver
value

47. UNDERSTAND
THE REWIRING
DECONSTRUCT THE
(CO-) SHOPPING JOURNEY

48. TEENS: I WANT I NEED I WANT
PRESENT SHARE
DESIRE BUILD THE CASE NEGOTIATE ACQUIRE
THE CASE & SWAP
Search
Text past
friends emails for
about promo Check Send
meeting codes Lucky at phone pix
Poll at mall Your to Mom
friends
Service from store
on
Check app Upload List new
Facebook
Mobile pix to item on
Download wall Review
SMS Facebook Craigslist
film trailer items
to iPhone Visit held in fan page
Stream Google brand/store cart Check her
Earmark fave TV site and build Check PayPal Wear to
wish list game & Post
magazine show on + brand store for Student
take outfit on
ad Hulu name clearance Account snaps Polyvore
Post
Q. on Say yes
Discuss on Bill Ratings
favorite
Google upcoming My &
mom Check
item reviews
blog Assign gift cards Parents
Check out more
comparison Visit the shopping
web chores in
shopping cart
site exchange
sites for $
MOMS:
SELF- EVALUATE COORDINAT OBSERVE
DIFFUSE NEGOTIATE E PURCHASE
EDUCATE RATIONALE & RE-ARM

49. DECONSTRUCT THE
(CO-) SHOPPING JOURNEY
 Create new hooks that support
needs-based shopping and teens'
fact-finding zeal
 Allow moms and teens to shop
together without being together
 Look for ways to help moms help
teens become financially responsible

50. UNDERSTAND
THE REWIRING
DECONSTRUCT THE
(CO-) SHOPPING JOURNEY
INNOVATE
YOUR WAY OUT

51. TEENS are impressively savvy MOMS want to feel smart
with their OWN money about how they maximize
because their shopping because
transaction more fully. they have budget limitations.
However, they need help However,
shopping within a budget.
for impulse.

56. TEENS MOMS
Very receptive overall Very receptive overall
Most indicated this saves
time and makes it easier Some questions/concerns
(and more fun) to shop
within their budget details and in-store pick-up
Some suggested it makes See the promise for their
them smarter about money teens, as it would teach
spending within their
means; and ideal for
holiday shopping

57. INNOVATE
YOUR WAY OUT
 Begin with an Insight Formula
 Create rapid prototypes
 Test, (fail quickly), learn,
launch agility is key!

58. Enable social
Monetize your Facebook page Add Raves to your
shopping
Ratings & Reviews
Offer convenience through social
media
???
Stretch budgets with
collective gift giving

59. Use messaging to tap Use social networks to share
into thrift mentality shipping codes or offers
Make meaningful service
changes based on feedback
Autofill codesand special
offers; deal expiration alerts
Offer new utility/fun Shift the dialog
Get more relevant at the shelf level

60. A crisis is a terrible
thing to waste.
Paul Romer, Stanford economist

61. www.resource.com
Sponsored by:
Special thanks to our research partners:
by Kit Yarrow and
Jayne O'Donnell

62. www.resource.com
thank you.
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