Millennial Spirits: Make Mine Sophisticated

My Millennial friends tell me they are more likely these days to open a bottle of wine with friends than a six pack of beer. The data suggests they are right on trend. Overall, sales gains for wine and spirits are outpacing beer. And within the beer category, growth in imports and microbrews is outpacing regular beer. This trend, like so many, appears to reflect a growing sophistication in the tastes of young drinkers.

In June, Mintel released two new reports, one on drinking at home and another on drinking away from home. Both reports show similar trends by age: young people are increasingly opting for wine and vodka over beer. 32% of 21-25 year olds say they are 'drinking more liquor/spirits than last year'. The average number of microbrewed beers drunk by 21-24 year old microbrew drinkers increased from 3.0 in 2005 to 3.8 in 2007. And a full 38% of 21-24 year old drinkers say vodka is their top spirits choice in a restaurant or bar.

Diageo, a close watcher of Millennial trends, is among the first to really capitalize on the sophisticated appeal of vodka. Today, a new campaign is breaking for their new ultra premium vodka, Ciroq. Here's what Mediapost says about the new campaign, called "The Art of Celebration" featuring Sean "Diddy" Combs:

"Shot in black and white at one of Sinatra's former California homes, the 15- and 30-second commercials depict Combs as a high-spirited host amidst a chic crowd during an impromptu private house party. Combs is serving Cîroc, one of the world's only vodkas made from grapes, while engaging with his modern-day "Rat Pack" entourage. Sinatra, along with Dean Martin, Peter Lawford, Joey Bishop and Sammy Davis Jr., were the original packers. In the spots, Combs mingles, dances and jokes during the intimate party, before finally stealing a private moment to gaze into the night as the crowd enjoys a fun-filled evening inside. The spot represents a continuation of the brand's commitment to defining "sophisticated celebration"--a concept Combs embodies and cultivates both personally and professionally as a lifestyle and entertainment icon. During the holiday season, the campaign will evolve to focus on safety."

The combination of high style, celebrity and music is likely to appeal to Millennials, who are most likely less interested in 'luxury' than in what wine Fat Bastard calls 'Livin' Large'. As we have noted before, Millennials do not think of themselves as well-off, despite their relatively high disposable incomes. They do, however, see themselves as discerning consumers who value authenticity and quality. This campaign seems to hit the mark in both respects.

Millennial to Marketers: Be Meaningful, Be Quick, Be Shiny

I just read an amazing article from Marketing (May 26, 2008) by Naomi Wohl, a young strategic planner at Ogilvy in Toronto. Millennials have a unique sense of timelessness. They want it now, and 'forever' has little meaning. Naomi explains why. It's a little long, but I want to share most of it as it was written. I hope you enjoy it as much I did. She captures an essential truth of this generation that I haven't heard expressed this well anyplace else. Enjoy!

The concept of forever is lost-literally. Timelessnessgone. Moments that will last a lifetime-MIA. We are in the Age of The Here and Now. The Age of Moment to Moment. The Age of ADD. ....Nothing creates fleeting experiences like our current culture of technology. Why buy a car when you can lease it? Why sign a cellphone contract when you can pay as you go? The newest iPod and flat-screen TV models are being designed just as their predecessors arrive on shelves. We buy in anticipation of getting the upgrade. We revel in the current model's inadequacies because we're so amazed at how quickly they can be improved. We live in a time in which lifetime warranties are meaningless. ...

And who bears the brunt of this phenomenon? It's the very same people engineering it-Generation Y. We are aged 18 to 28, and possess or have access to amazing stores of knowledge -- though it is matched by an even greater indifference. We are a generation of silent overachievers (pretending we don't really care), genetically and culturally encoded to think fast, want more, and crave new. We were built for this time; an ephemeral culture created by us, for us.

We repel things that last longer, and as a result, our attention span is getting shorter. I'm emotionally attached to my PVR. My high-speed Internet isn't fast enough; I've had to upgrade to "Extreme." I multi-task. I have developed an uncontrollable jittering knee when other things and people move too slowly. Do I sound anxious? Irritable? Maybe some pharmaceutical company is working on the drug for my Gen Y disease. Dear marketers, if you want to reach me, you'll have to catch me. And please be quick about it.

For us, the concept of friendship has even changed from terms like "BFF," to join my entourage on Facebook. As for relationships, the success and growth rate of online dating sites suggests we're searching not for the partner who is a fit forever, but for the partner who is a fit nght now.

And yet, despite our current transient attitude, we are desperate to make the moment last. For those of us who want to try our hand at singing, dating, dancing, fashion designing, modeling, inventing, cooking or 5th grade math-prime-time programming can make us famous. In the wake of impermanence, fame enablers like reality TV, YouTube videos, or even Guitar Hero, give us a chance to be a rock star. Even if you only get to enjoy the fame for a moment, there's a chance to make that moment last.

And last and last. Because thanks to the environment, all of a sudden forever matters again to Gen Y. Our long-term temporary thinking has led us into a permanent crisis, scrambling to reverse our hardwired non-committal nature with an undying pledge to preservation and conservation. The environment is the quintessential cause rallying the masses today. Never have we collectively been so dedicated to sustainability. We can fill the blue box at home, join the MySpace group for alternative energy and buy organic. If everything else in our lives is so temporary, why is this cause so captivating? Maybe we long for something to matter. Maybe we fear our lives will come and go as inconsequentially as all the fleeting experiences that filled them. We're desperate to make something last. So we'll endorse the cause and work to create a world that will never know we were even here.

For you marketers, trying desperately to grab my Gen Y attention as I rush by, here are some tips.

Firstly, your brand needs to be the new transformer of our time-capable of renewal and regeneration while demonstrating that essential I-can't-live-without-you shiny feature. Next, don't linger. Tell me what you want to tell me, but tell me quickly, because I'm already looking in someone else's direction. And finally, be meaningful. Be the inside joke that only Gen Y gets; self deprecating but not insulting. Be Optimus Prime. Be my hero, and I'll be your rock star.

Why Millennials Matter

After 74 posts on the values, purchase habits and preferences of Millennials, it's probably worth a short post on what I hope should be obvious by now: why it matters what Millennials think. Not only is this generation similar in size to the Boomers, they have enormous purchasing power. Today's 18-29 year old has an average income of $29,000, and their earning power is growing faster than for other age cohorts. Most important, Millennials are meaningfully different in their values. Those differences will increasingly come to define products, marketing approaches and politics for the entire country. (p. 209)

Let's start with politics. In their terrific (and prescient) book, Millennial Makeover, Winograd and Hais write:

"Political behavior resarch has consistently indicated that once most individual, and hence most generations, take on a party identification, they maintin it throughout their lives. As sociologist J.V. Namenorth noted, "Value orientations do not change much during a generation's life time. Committed during its early stages a generation most often carried its value commitments into the grave". If the Democrats can maintain this initial generational allegiance during the next two presidential elections, they should gain a decisive electoral edge for decades to come."

Likewise, marketers know that brand affinities established early in a consumer's life can persist for decades. This is why Bride's magazine stays so fat year after year.

With so much at stake tomorrow, it's little wonder marketers need to find what moves Millennials today. Some of their lifetime values are already becoming clear: Tolerance, the environment, authenticity, family, global perspective, team-work, immediacy, ethics. Others are still emerging. It remains to be seen how the current financial crisis will shape their career aspirations and life goals. Certainly there are fewer MBA's looking for a career in investment banking this week, than a month ago. And the dream of homeownership may not be as compelling for today's young people as for Gen X.

Millennials: A Product of their Upbringing?

It's widely conceded Millennials are unique from previous generations. What caused them to be so different? Was it the times they grew up in -- unprecedented prosperity, the uncertainty of terrorism, the dawning of the Internet Era? Or was it something about the way they were raised?

While environment no doubt played a role, I think it has more to do with earnestness with which their Boomer parents took their parenting responsibilities, revolutionizing what it meant to be a 'good parent' just as they revolutionized so many other aspects of our culture.

Millennials were raised with doting parents who were attentive to every detail of their development and education, and often brought enormous personal energy and wealth to bear on task. I don't remember my parents taking such an interest in every aspect of my schooling, friends and overall development as I have with my own two children. Millennial kids have been closely supervised, carpooled, sports-leagued and lessoned, sometimes to the detriment of free play time. They have spent time in organized groups since they were babies. David Brooks described the phenomenon brilliantly in his book, "On Paradise Drive": "The entire weekend economy of small town America seems to depend on prepubescent sports tournaments with boxing bout names." (p.144). Last week, the Wall Street Journal examined the ends to which some parents go to create exceptional kids ("Under Pressure", WSJ, Oct 4, 2008).

As a result of their large numbers and parental advocacy, classes for Millennials became smaller, teachers used more active learning styles, and new opportunities for learning outside the classroom opened up. The result of all this focused attention on their every need is a generation that, at worst, feels 'entitled'. At best, it is a generation that is better prepared and more confident than ever before.

Millennials are skilled negotiators; they thrive in team settings. They are optimistic and trust in institutions. They can talk to adults like peers and have more worldly experience to draw on at a younger age. They effortlessly know how to use technology to organize their lives and get work done by the time they leave high school. Little wonder Millennials feel ready to take on any challenge. (What Boomer parent has not lamented they would like to come back in their next life as their own child?)

I am often asked precisely when is the definitive cutoff for a Millennial -- 1978 or 1982? I believe it has less to do with the birth year, than upbringing. Gen X'ers, who grew up in the 70's and 80's with distracted career oriented parents, know they did not enjoy the lavish attentions of the Millennials. And therein lies the difference.

Heroes: The Ultimate Millennial Fantasy?

I have already nominated several fictional characters as the ultimate Millennial persona: Andy Sachs, heroine of Devil Wears Prada, Harry Potter and his friends, the ensemble cast of Hamlet2. The common theme is the ability of seemingly ordinary kids to conjure up hidden talents or even hidden powers to accomplish something very difficult, usually beyond the capabilities of adults. Now we have NBC's smash hit, Heroes, which seems to fully capture the essence of this 'wait til you see the real me' fantasy in full. Here is how the Heroes wiki site describes two of the show's key characters:

Claire Bennet is a high school student formerly of Odessa, TX where she used to be a cheerleader. She lives with her adoptive family in Costa Verde, CA. Claire discovers she has the ability to heal seemingly any wound, nearly instantaneously.

Peter Petrelli worked as a common hospice nurse while living in New York City. Peter appeared to his family as a witless dreamer, who believed he had a greater place in life than just saving one life at a time. He discovered he was an evolved human who had the ability to absorb and use the powers of other evolved humans. Peter has since decided to use his abilities to save the world.

The show is wildly popular among Millennials, and given Millennials' passion for making a difference in the world, it's easy to see why the show is so appealing. Marketers would do well to tap into this fantasy, with products that help Millennials be more the person they know they were meant to be, and make a greater impact for good. NBC is leveraging this insight well, with a create your own hero contest and animated online series. Superpowers for ordinary mortals of course is not a new theme. but what makes Potter nd Heroes different from, say Superman, is the unique generational angle. It's not just about having unique talents, it's about being YOUNG and having unique talents. That is what makes these characters remarkable in their worlds and appealing in the world of Millennails.

Millennial Marketing: Fun and Games

When David Carson at Mediapost said this week the "Nintendo Wii ad for "Wario-Land Shake It" on YouTube is the best ad I've seen all year, in any medium", it reminded me I have yet to address the topic of gaming among Millennials. (BTW, it really is a great ad, click here to see it.) I admit one reason I haven't written about gaming is tht we are not really a gaming household. Yes we have a Wii, Playstation 2, and PSP, but they don't seem to get much use. We just never got the heavy-duty gaming bug, aside from passing addictions to Bejeweled2, the Sims and Spider Solitaire.

My 14-year old son is atypical. 44% of The gaming statistics, especially for males are staggering; 44% of 12-17 year old males say playing video games is one of the 'favorite activities' (Mintel, 3.07, see chart). That makes games big business; the Sims alone has sold 100 million copies, worth about $4 Billion (Fast Company, 9.08). The upcoming release of Spore is a media event that rivals the biggest blockbuster movies.

From a marketing perspective, it is important to note that up until now, gaming has been largely a male phenomenon, most likely due to the high levels of violence in many games. This is a problem Spore's marketers hope to change. Spore is reportedly more about creating and building than destroying. (Right now, young women are much more likely to blog, while both sexes are equally likely to be spending time social networking.) This makes gaming an especially targeted medium for marketers trying to reach young men. Little wonder product placement in video games is hot and getting hotter.

Millennial Target: Fat Bastard

With their above average earnings and sophisticated tastes, Millennials are an untapped market for 'luxury' goods -- you just can't call them luxuries. French Millennials are forgoing wine; U.S. Millennials are embracing it in large numbers. According to Nielsen, beer drinking among 21-30 year olds dropped 12 percentage points in the last 10 years, twice as much as those over 30. (Beer still accounts for 83% of Gen Y alcoholic beverage purchases, so don’t expect Beer Pong to lose popularity anytime soon.) Why are Millennials embracing wine? Well, it’s not because its hip or cool – wine is considered too elite to be cool. The answer is that Millennials have sophisticated tastes, a function of early exposure to the finer things in life by their boomer parents. (Most Millennials who like wine say they were introduced to it by their parents).

This is a huge opportunity for winemakers, and Fat Bastard is among the first to jump on it. Their irreverent web site does its best to take out the mystery and put in the fun:

The theme, “Are you Livin’ Large?”, strikes just the right note of luxury that doesn't take itself too seriously. The fifties motif gives the site a retro feel.

The 'hippo' logo is enough of an non-sequitur that it works to heighten the sense of whimsy; this is a wine brand that doesn't take itself too seriously. The hippo logo is nice extended into 'Hippo Couture' t-shirts and 'Hippo Culture'.

The site provides many opportunities to engage: a short fun survey, an invitation to 'share your story' and a contest to design a summer t-shirt. The tone is light and witty: "Tell us how you have reveled and regaled friends and family with the Fat bastard. Send photos of you and your fellow partygoers, enjoying Fat bastard in any lively (and legal!) scenario. Share with us your thoughts and impressions of the Fat bastard."

There is the obligatory advice on food pairings, recipe ideas and restaurant recommendations.

There's even a nice Breast Cancer cause marketing effort with $.25 donated for each bottle sold.

Above all, the site gives us a plausible back story for the product as well as the implausible brand name:

Thierry Boudinaud, a renowned winemaker who had crafted wines from California to France, from Chile to South Africa was sitting in a cold damp wine cellar one winter day when the door burst open. It was Guy Anderson his dear friend from London who had just arrived to sample the recent vintage. “It’s cold enough to freeze the balls of a brass monkey” Guy was a rebel in the wine industry believing that quality was paramount in a wine but that the average consumer hated the traditional intimidation heaped on them by most of the wine industry..... Thierry thought he would have Guy try an experimental wine he had in a few barrels in the back of the cellar. “Dis is a experiment wine we left it on de lees. We try it no?” “Sure Thierry, you know how hard it is to get me to try a new wine.” Both friends had no idea that leaving the wine in barrel on the lees (yeast cells) would result is such a dramatic difference from the wine they tried the day before. It had a wonderful color and rich, round palate. Both men stood and stared at each other for what seemed like five minutes until Thierry exclaimed “now zat iz what you call eh phet bast-ard” Guy laughed with a belly laugh you could clearly hear in the neighboring town. He had used the expression Fat bastard often to describe things that were great but hearing it in a French accent made it so much funnier.