Marketing Strategies for Generation Alpha: the Newest Generation
19 Mar 2019

Who are post-Millennials?
Generation Alpha represents those who are born after 2010. This generation is quickly growing as 2.5 million Generation Alphas are born around the world each day. [1] Alphas are growing up exposed to multiple digital platforms in a technology-driven environment.

Major brands are recognizing that Generation Alpha is essential to target. Brands are increasingly acknowledging their awareness of Generation Alpha. For example, Google shared its opinion of Generation Alpha, saying “If generation Alpha possesses similar behaviors, attitudes, and beliefs to that of their parents, then to win with a certain segment of millennial consumers (millennial parents), we must target generation Alpha”. [2]

Teenagers and children today are growing up in a very different environment to previous generations. Not surprisingly, Generation Alpha is set to be the most tech-savvy generation we have ever seen. Firstly, they will be the first generation to be immersed in technology for their entire lives. Secondly, today’s methods of teaching are highly  influenced by technology. As a result, this generation education has become very digitally focused. With the introduction of so many technologies since the early 2000s, it has become hard for parents to ignore the trend. As a result, parents have integrated technology into their children’s lives from a young age.

What are the effects of technology?

The introduction of smartphones for younger Millennials and Generation Alpha can be seen as an advantage for parents. Ninety percent of these parents say they gave their child a smartphone in order to get in contact with them easily. The cell phone helps with security, as well as coordinate the children’s activities.  With the advantage of connection comes the disadvantage of distraction. Seventy-two percent of parents admit that they are concerned about the distraction a smartphone can cause. Sixty- eight percent of parents are concerned by the lack of control they have when it comes to technology and their children. [3]  As more children have smartphones at a young age, cyber bullying has also become an ever growing issue.

How will Gen Alpha impact advertising and marketing strategy?

Until Generation Alpha is old enough to have spending power, it is important to analyze the effect they are having on their parents spending. Eighty-one percent of Millennial parents say that the habits of their Alpha children influenced their latest purchase. [4] Marketers should focus on ensuring that their strategies are flexible now while keeping a close eye on Gen Alpha and how they will influence advertising and marketing in the future. It is key that marketers start researching possible communication strategies to grab the attention of Alpha’s now so that they are prepared for the future. Even many of today’s two years how to navigate a smart phone device.

New products are already emerging for Generation Alpha. Children are being entertained by smartphones, tablets, and smart home devices. It is not unusual for children to want to have “conversations” with artificial intelligence-driven technology such as Siri or Alexa. Children have always has “imaginary friends”, therefore, it is not too far-fetched to believe children will become “friends” with A.I. [5]
Technology being a part of this generation’s life from birth poses both an opportunity and a challenge for marketers and advertisers. Generation Alpha will be an easy target for advertisers and marketers, as they will be reached effortlessly through technology. However, it is predicted that Alphas will seek an even more seamless experience than Millennials have been seeking when it comes to advertising and marketing. It is important to keep it simple yet effective while targeting this generation to encourage consumer loyalty. It is predicted that businesses and brands will come up with radically new ways of communicating and interacting when trying to influence and capture the attention of Alphas.

Want to Learn More About Market Research? Here are some blog posts to check out!

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  2. Marketing in the Summer
  3. Why We Love Advertising Research 

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[1]Here’s who comes after Generation Z — and they’ll be the most transformative age group ever. Business Insider. December 2015.https://www.businessinsider.com/generation-alpha-2014-7-2

[2]“The Complete Guide to Generation Alpha, The Children Of Millennials,” Forbes. December 2016. https://www.forbes.com/sites/christinecarter/2016/12/21/the-complete-guide-to-generation-alpha-the-children-of-millennials/#5984ad3b3623

[3]“Mobile Kids: The Parent, The Child and The Smartphone,” Nielsen. February 2017.  https://www.nielsen.com/us/en/insights/news/2017/mobile-kids–the-parent-the-child-and-the-smartphone.html

[4]“Forget Millennials, Gen Alpha is here (Mostly),” Digiday. October 2018. https://digiday.com/marketing/forget-millennials-gen-alpha/

[5]“How Will Widespread A.I. Affect Generation Alpha?,”November 2017. Datafloq.  https://datafloq.com/read/how-will-widespread-ai-affect-generation-alpha/3958

 

Millennials, Fine Jewelry & the Luxury Category
13 Dec 2016
Written by: Rachael Ryan

Millennials are the most researched subgroup of the 21st century – and yet, they still seem to be misunderstood. Everyone wants to know more and more about the generation. Who are millennials and why are they so sought after?

Millennials are technically anyone born between 1982 and 2002, but most importantly they are the buying generation. They’re taking over from the Baby-Boomers who are retiring both from work and they’re hanging up their consumer shoes too. Despite marketers obsessing over millennials, they are still often dumbfounded by them. Just when marketers think they have them all figured out, millennials change their habits and leave everyone bewildered.

For example, millennials were buying luxury goods such as fine jewelry. Millennials spent $26 billion on diamonds in 2015. But since then, the attitudes of affluent millennials has changed. 6.2 million millennial households earn more than $100,000 a year and they will take over the luxury consumer market by 2018-2020 – that means they need to be understood and luxury brands need to research them in order to appease this headstrong generation.

Market research is invaluable in this situation; here are a few speculations as to why millennials have become indifferent to the opulence of luxury jewelry brands.

  1. Millennials are incredulous towards big luxury brands. They want to pay big bucks for an individual experience rather than a brand that everyone has. The generation prior to millennials would pay vast amounts of money to have luxury, classic pieces of jewelry to display their wealth and standing in society. Millennials are not purchasing fine jewelry, they are more interested in spending the same money on a one-of-a-kind, once in a lifetime experiences.

  2. Milestone purchases. Millennials don’t want a piece of jewelry to define them – they want sentiment behind it. Most millennials will only buy a luxury good as a milestone or to mark an occasion, while this has always been partially the case – it is now the sole selling point of luxury jewelry. Millennials are not likely to impulse buy a luxury item; there must be a deeper level of emotion attached to a piece. This is why luxury jewelry brands such as Pandora are so popular – each piece is unique to the owner and every part of the piece has a story to tell that is exclusive to the person wearing it.

  3. Technology is a new luxury. The number of millennials that own a fitness watch and the number of millennials that have a classic wrist watch are almost equal. This is a two-sided argument, if you want your luxury brand to be successful then your brand needs to have a successful online presence that resonates with this savvy generation. Millennials read on average 13.9 reviews online before buying a product, and they normally only buy products that have been recommended by loved ones or people they trust.

There are many other factors that come into play here; millennials get married later in life and their engagement ring is ordinarily their introduction to fine jewelry purchasing, millennials are experience oriented and want to be unique, therefore often look for one-of-a-kind jewelry that has a story behind it, among other reasons.

For more information on changing jewelry trends, read the Principal of Provoke Insights, Carly Fink’s article on the growing demands on the brown diamond industry. For more information about Provoke Insights, why not sign up for our newsletter here.

Advertising & the Millennials
09 Sep 2015
Millennials are the largest generation in the United States; no wonder brands want to capture this audience.  Unfortunately, this group’s disdain for traditional advertising (52% feel overwhelmed by the number of ads they see each day) make them a hard bunch to reach. Millennials demand authenticity and transparency, and take great pains to thoroughly research their brands. So how do we capture this demanding market?

Make them laugh

While Millennials detest traditional advertising, humor may help them pay more attention.  Eighty percent say they are more likely to remember an ad if it’s funny. Millennials appreciate a clever TV spot, or a little quirkiness, if it helps them identify with the brand.  If done well, the chuckles may even hit the millennial authenticity bone. As they say with humor – it’s funny because it’s true.

Make them believe you

Maybe humor doesn’t quite match your brand’s image; then your charge is to find a message or value proposition that speaks to the Millennials’ sense of altruism.

Millennials view themselves as responsible and compassionate, with 22% wanting to make a positive impact on their communities.  A socially conscious brand can win over this target if they can prove their claims. Half of Millennials read reviews before making a purchase and are very careful to investigate the brands they support.

Make them feel unique

Millennials want customizable products. With the help of social media, they have spent time curating their image; they want to continue this with the brands they use.

While a challenging segment to capture, Millennials are definitely worth the effort. A brand that can grab their attention, pass the ‘authenticity test’, or provide a customizable experience, has the potential to win long-term brand loyalists.

Reference: “Marketing to Millennials,” Mintel.  February 2015.