Stateways

StateWays - November/December 2016

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays | www.stateways.com | November/December 2016 10 SPOT TING t r e n d - What Millennials Want f you want a sense of the enormous infl uence of Millen- nials, just take a look at the stats. Millennials, the largest generation in America, are expected to spend $200 bil- lion in 2017. They account for 11.6 million households with kids, and they are the most ethnically and racially diverse American generation. Add some context to those numbers — more wine, beer and spirits options exist now than ever before — and you come up with a posi- tive yet daunting outlook. Millennials are eager to spend their money on brands they believe in, but they're also our most spontaneous and engaged generation. So, if you want the brands on your shelves to make it into Millennials' carts, you'll need to understand their buying habits. We all know this. However, fi nding ways to leverage this information is a different story. Millennials have massive buying power, and yet they often confound retailers. Here are fi ve important ideas that every brand should consider when marketing to Millennials. Be upfront on packaging, in BIG, bold letters. Based on Watershed's proprietary re- search, we discovered that 84 percent of Millennials believe they can digest your whole story at fi rst glance. So get it right! Now, more than ever be- fore, consumer decision-making is compressed, and your pack- aging needs to be optimized for the glance-and-buy generation. Make a promise. Millennials don't continue to sleuth after fi rst glance. These quick deci- sion-makers are spontaneous, but they're also looking to build a relationship with your brand. Brands that stand out are the ones that commit and commu- nicate their promises, no mat- ter what. Millennials don't want to be 'sold to.' Social media isn't the only way to get your message across. Editorialized content is a good way to gain attention. Mil- lennials are eager to try a new product when it's covered by a media outlet they trust. In our study, we discovered that 84 percent of Millennials distrust traditional advertising, and even go so far as to choose a product because it's not advertised. For example, a Millennial is more likely to buy a product if its recommended by a blogger, podcast or magazine that they trust. Stay true to your brand. Be yourself. It's cliché, but true. Once you fi nd your brand's true north, you'll be able to op- erate with a set of values. Conviction is key to gaining Millennial engagement. Established and big brands can be au- thentic, too. The top fi ve most-men- tioned, authentic food and beverage brands in our study were Trader Joe's, Coca-Cola, KIND Bars, Honest Tea and Starbucks. One research subject found Coca-Cola to be authentic be- cause of transparent packaging and consistency of product, saying, "they've never tried to change who they are. They've had special editions, but gen- erally they've remained the same." While you can't simply check off boxes to build an authentic retail brand, there is a way to approach this consumer group with confi dence. Whether or not you like it, Millennials, often called the "Tinder generation," are split-second decision-makers who want your full brand to come across on the fi rst impression. Brands that de- liver on their promises, as long as those promises are clearly communicated, should expect more engagement on the shelf. • LISA DONOUGHE is the Founder of Watershed Communications, a brand strategy fi rm specializing in the new food and drink economy. She has more than 30 years of experience telling distinct stories and building brand equity. For more information about Watershed and their propri- etary research, visit watershedcom. com/research. Millennials are eager to spend their money on brands they believe in, but they're also our most spontaneous and engaged generation. BY LISA DONOUGHE

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