The Hindu Business Line : Cater to the new cravings

Do you find the new consumer market too baffling to understand? If so, Lisa Johnson can guide you through the maze that she calls "a living, breathing model." This is the space in which Generations X and Y lead the charge, writes Johnson in Mind Your X's and Y's,' from Free Press (www.simonsays.com) .

But why is it necessary for businesses to understand Generations X and Y? Because, in five years, this group will render many traditional business and marketing practices obsolete, cautions the author. For starters, the term Generation or Gen X `was first used in a 1964 study of British youth by Jane Deverson,' as Wikipedia informs. "The exact demographic boundaries of Generation X are not well defined: persons born between 1963 and 1975 are generally considered Gen X'ers ... "

Logically, as in the alphabet, Gen Y is the generation that followed the X'ers. Johnson timelines Gen X as those born between 1965 and 1979, and Gen Y, between 1980 and 1997. She lists "ten specific consumer cravings that cross industries and age brackets as they drive every decision made by members of Generation X and Y."

The first craving is, `Shine the spotlight', meaning, "extreme personalisation gives marketing a new face." People are looking for their big break, writes Johnson. "They enjoy being big fish in small ponds." As a result, "brands that tap into this powerful need with highly creative and customised efforts will get not only some great buzz, but a whole new level of loyalty and brand ownership to match."

The next craving, `Raise my pulse,' is about adventure, `the new social currency'. Explains the book: "Customers are seeking highly interactive encounters that teach and challenge and, in the process, give them personal insight and help them define who they are. In fact, activities like international travel, extreme sports, and out-of-the-ordinary hobbies are now considered more rewarding and impressive than an expensive new car or gadget."

The third craving, `Make loose connections', emphasises the role of `tightly knit yet non-traditional communities'. An example of a business that catered to this craving is Starbucks. In 2000, it worked with Microsoft and spent millions to install wireless networks in the outlets. Why? "To tap into the burgeoning desire to merge home, work, and play with the assistance of rapidly developing technologies. They predicted a future where customers would enter Starbucks to pick up a coffee as well as work, catch up on e-mail, and hang out."

Johnson devotes a chapter to each of the cravings, where she explores the origins of the craving, discusses apt case studies, and provides `lessons' and `workbook' as quick takeaways.

Five essential criteria underlie each craving, she says. These are: experience ("unusual experiences spark conversations and help people understand each other"); transparency ("bullies, liars, fakes, and dictators are quickly exposed"); reinvention ("rumbling hunger for what's new, better, faster, and more efficient"); connection ("influence comes not from hoarding information, but from sharing it"); and expression ("everyone has something to say... the new market values self-expression and has little interest in anything standard or homogenised").

A must-read for marketers.

http://BookPeek.blogspot.com

D. Murali