Generation X is having Babies...
Do you know how to market to them?
Quite simply, because the bodies are not there. "There are 40% fewer
people in Gen X than there are in the Baby Boomer generation," says Ken
Gronbach, president of KGA Advertising of Middletown, CT and nationally
known generations marketing expert. "Think of the implications for marketers
who are used to keeping up with the needs of 80 million Boomers and are
now faced with a population of only 50 million Gen Xers. "If you're dealing
with a tried and true product aimed at the 18-to-34 year old market with
an infrastructure based upon the consumption rates of the Baby Boomers,
you've probably built way past the capacity of this market," points out
Mr. Gronbach. "To succeed with Gen X you have to get a larger share of
a smaller pie."
Despite the failures of some major marketing efforts, some companies
have been successful with Gen X. Mr. Gronbach offers these tips:
Marketers that want to successfully reach Gen X need to hit them with
messages that appeal to their self-oriented and pragmatic nature. "These
are people who see themselves as survivalists," points out Mr. Gronbach.
"They believe that, if they don't take care of themselves, no one will.
This generation is all about the individual. They want to make a lot of
money in a hurry, which is one reason why the stock market appeals to
them. And many of them are well on their way to financial security. This
is the best educated generation in this country's history. As a result,
they are making more in starter salaries than Boomers dreamed of. In addition,
unlike the Boomers who value spontaneity, they want things mapped out
for them. They like it when they hear, "Do this and you'll get that."
Advertising that works for Gen Xer is aimed right at their love of "experiences,"
those activities that arouse their sense of adventure and passion. Volkswagen
of America's "Drivers Wanted" spots hit that chord. "VW of America hired
a new agency because the population dip was killing them and their sales
were at an all-time low in this country," points out Ms. Daniels. "The
agency did research to find out who the VW driver was. It turned out that
the car appealed to people who like the driving experience but couldn't
yet afford a BMW: the Gen Xers. So they developed the "Drivers Wanted"
campaign and aimed it right at them. The spots were successful with Gen
Xers because they had the kind of 'energy' this group admires. Their style
was quirky and the campaign even offered the ultimate Gen X status symbol,
a Trek bike, as a give-away. The combination struck a chord with Gen X
and they bought. The results were a 25% increase in sales and a real niche
as the Gen X car."
A new product isn't saddled with the old "rules" of pricing and distribution
that were based on past sales history. It's sales projections can be made
using realistic expectations of the buying potential for 50 million Gen
Xers. In addition, a new product can be customized to the needs of this
group and do very well. Ms. Daniels sites Burton snow boards as an example
of a products that has changed an industry by appealing to Gen X. "Skiing
is a Baby Boomer activity. Snowboarding became the icon for Gen X and
Burton owned the market for quality boards," she says.
Gen Xers love a good time and value humor in ads. Mountain Dew used that
to their advantage by using extreme sports in their ads and having fun
with them. Their ads put a smile on your face and really made a hit with
the Gen X market.
Gen Xers are a quality-conscious group. Marketers hoping to court them
must have products with good quality and be genuine and consistent in
the ways they market them. "This is a cynical generation, " says Mr. Gronbach.
"They can spot a fake message, so don't use it."
"This generation has a more balanced view of the role that work plays
in their lives," says Mr. Gronbach. "They are willing to work, but they
also expect to have lives outside of the office. Because of this, Boomers
often mislabel them as 'lazy.' This is definitely not the case. Getting
rich quick does motivate them in the workplace, but they are also looking
for decent hours and mentors who will help them to develop strong skill
sets."
Advertisers and marketers interested in reaching Gen X have their work
cut out for them, but this can still be a viable market. They have the
money to buy expensive and top-quality products. The key, according to
Mr. Gronbach, is understanding the small size of the market and to appeal
to their unique characteristics.
If you choose to find help, there are a variety of companies
that will build and maintain a site for you. You can ask an Internet service
provider, or a merchants bank, or hook up with an e-commerce service provider.
KGA Advertising is a full-service marketing communications firm based
in Middletown, CT. For more information about marketing to Generation
X, contact Mr. Gronbach at kgronbach@kgaadv.com.
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