It is crucial for mass brands to appeal to the millennial generation in oder to stay afloat. Not only are purchases from millennials confirmation that a brand is culturally relevant, but also necessary financially as they are the largest generation in history and predicted to be in control of $24 trillion of wealth by 2020. However, a new study has revealed that traditional mass brands are much less valuable to millennial consumers than to baby boomers.
Consulting agency Enzo’s World Value Index scored 150 mass brands according to how a sample of 150 US consumers value the brand based on the brand’s purpose, how the purpose aligns with their own values, and the extent to which it motivates brand advocacy and purchase. What they found is that there is a huge disparity between the value millennials and baby boomers place on mass brands.
What they found:
- Millennials value smaller brands with a clear message and social conscience, while boomers rely on traditional large brands.
- Tech brands are among the most valued by millennials.
- Millennials care more about social issues and have actively fought for a cause more than any previous generation.
- Mass-market brands can gain millennial support by acting like smaller brands with clear missions.
The study found that in order to engage millennials, brands have to resonate with the motivations of young people, which includes affecting the world around them, being part of positive change, and experiencing other cultures. Yet, it is also key that brands communicate these ideals effectively, as Newman’s Own and Pampers both have socially conscious missions but ranked low among millennials because they were perceived as without purpose. On the other hand, mass brand Always scored well with millennials because of their recent advertising fighting sexist stereotypes.
It is no longer enough to simply sell a good product—in order to attract the elusive millennial market, brands have to stand for something bigger than themselves and align with younger people’s values if they want to capture them as lifelong customers.
To read more, head to Fast Company.
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