Unlocking the Key To Gen Y Brand Loyalties

Consumer product brands that want to ensure loyal consumer behavior would be well advised to start early and pay attention to youth. A recent USA Today article claims that by
age three, most children can correctly identify more than 100 brand names.

Capturing the attention of consumers -- even three-year-olds -- should not be overlooked by brand managers, even if a brand skews older. Studies show that brand loyalties --
that piece of the functional/emotional consumer equation -- often result from brand familiarity emanating from the subconscious. Exposure to the brand at an early age and having
the brand assume a regular place in family life while the individual is growing up leads to brand loyalty. Orange juice drinkers who grew up with Minute Maid, for instance, have
historic bonds formidable for competitors to penetrate.

Beyond family traditions, how can marketers reach the younger audience? And how important is that audience in terms of purchasing power? A globally representative Ogilvy PR
Marketing Practice team sought to find answers to these questions to unlock the key to brand loyalty in Generation Y.

The so-called Gen Y generation represents $100 billion in spending power in the U.S. alone, and a formidable marketing force to be reckoned with. Alternately known as Echo
Boomers, the Internet Generation, the Wired Generation, Clickeratti and Generation Next, there are many things marketers need to know about this generation to effectively connect
with them in a meaningful way. Ogilvy PR's global study, "The Whys of Gen Y," set out to identify triggers among this emerging force and to explore the behaviors and attitudes
that lead to brand loyalties.

Recently compiled by Gen Ys throughout Ogilvy's 48-office network, this study addresses seven key areas of focus that marketers need to understand in order to reach Gen Ys in a
brand interaction -- technology, spending habits/economy, entertainment, health and fitness, relationships, education and politics.

Gen Y's traits reflect a new breed of consumer, one who cannot be reached in a "one size fits all" approach that may have worked in the past. In fact, the intrigue about Gen Ys
is that their behavior represents a dichotomy in many aspects -- they are social beings yet they place a heavier emphasis on sense of self than previous generations. They are
more open-minded than their predecessors around social issues yet they embrace traditional institutions such as marriage and family. They thrive on multi-stimulation, spend
countless hours online each week yet still go to the mall for in-person socialization.

Marketers who recognize the nuances of engaging this audience will succeed. Those who treat them like everyone else will not.

Our Gen Y study found that although this target audience wants to be addressed personally, they see their generation as one united group. This group ethic has become a powerful
marketing tool in reaching Gen Y -- while strongly individualistic in nature, Gen Ys play as a pack. They respond to straight talk. Overselling or condescension will drive them
away from your brand message.

Since this generation has grown up in a time of perpetual technological growth and development, it has a disproportionately strong share of voice and can actually impact market
developments in ways more significant than spending power alone. Napster exemplifies this idea best: a college student not only redefined music delivery for an entire consumer
market but forced manufacturers of CD players, PCs and stereos to reconsider their product features. Never has a group this young carried such weight with the product cycle.

An in-depth understanding of this demographic is certainly necessary before program development. Interaction, clever campaigns and quirkiness are key checkpoints for admission
into the mindset of this group. They know marketers and PR people who understand them as soon as they see their outreach.

Events are a logical consideration for PR campaigns aimed at Gen Y. Unlike traditional sponsored activities that reach mass audiences, events need to be specific to Gen Y and
will be more successful with a participatory component. The same thing holds true for the Web. While Gen Y's online presence is enormous, PR campaigns on the Internet must be
segmented to this group. Giveaways and promotions featuring the latest in technology devices open doors.

Ogilvy PR's study consistently points to higher brand loyalties from Gen Y when that audience feels that the brand understands them. While this collection of individuals holds
self-esteem and personal behavior at a premium, they operate as a global force and, in many ways, represent our first global generation.

Mark Curran is Managing Director, Global Marketing Practice, Ogilvy PR Worldwide, New York. He will speak on branding (Branding, Marketing & PR: Crafting an Integrated
Image Strategy) at the PR NEWS PR Strategies Forum, September 20-21, 2001, International Trade Center, Washington, DC. Reach him at: 212/880-5201; [email protected]

10 Ways To Unlock Gen Y*

  • Treat them as a pack or global force.
  • Make sure that brand message is in straight talk.
  • Incorporate latest technology as promotions/giveaways.
  • Use multi-stimulation.
  • Employ interactive, quirky, clever campaigns.
  • Don't oversell a message and drive them away.
  • Lure them with traditional institutions they embrace.
  • Customize and segment PR campaigns to reach them.
  • Be mindful of their open-minded, social agenda.
  • Create brand familiarity, especially with the young.

Source: Ogilvy PR's Global Gen Y Study , "The Whys of Gen Y"