Wednesday, April 24, 2019

Will Green Millennial men chose Wrangler over Levi's?


Monday was Earth Day.  I remember the first one in 1970.  Probably because I won the poster contest.  This year I couldn't help thinking about how much worse the environment has gotten since then.  Such a shame.

But as an environmentally conscious Baby Boomer I do my best to limit my impact by eating mostly veggies, living in a small space, not owning a car, and recycling regularly. 

I also wear Levi's jeans.  The real ones made from denim.  My latest pair came with a label inside that says:  "Care for our planet: wash less, wash cold, line dry, donate or recycle."  That sentiment really works for me.

Last year, when Levi's sales started to surge I asked my students to weigh in on the interesting sales techniques that the company was using to see which one might be of the most appeal to Millennials and Z's.  You can check out their thoughts here...


Which brings me to Wrangler.  Last fall VR Corp, Wrangler's parent company, was considering selling the brand.  But now they are going in a different direction and launching the upscale "Wrangler Rooted Collection."  At $100 a pop these jeans are priced higher than Wrangler typically is.  But the jeans - men's only - come in five styles - one each for Texas, Alabama, Georgia, North Carolina and Tennessee.  All are made from sustainably grown cotton traceable to a family farm. (Mahoney, 2019)

Interesting idea - part green - part tribal customization.  Great story.

But will it be enough?  My gut is telling me that Levi's is still a Boomer brand at heart and we will keep buying them until one of us is no more.  According to my students they have also come to see Levi's as "cool."

Will they feel the same way about Wrangler after they learn about the rooted collection?  How important is a story to your purchase decisions?  What about the premium price?  Is it too much for Millennials?  How much does personalization matter?  Is having five designs the type of personalization that matters?  Finally, does concentrating on only five markets make sense?


Mahoney, S. (2019, April 22)  With $100 Hyperlocal Jeans, Wrangler Brings Sustainability Home.  mediapost.com.  Retrieved April 23, 2019, from
https://www.mediapost.com/publications/article/334783/with-100-hyperlocal-jeans-wrangler-brings-sustai.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=113597&hashid=ybq2buULrntyGS6NfbELk0afrrI

Wednesday, April 17, 2019

Why are yogurt sales down?


According to Nielsen data, yogurt sales fell 6% from February 2018 through February 2019.  And, Greek yogurt sales fell by 11%.  The category had been growing steadily in the past five years, from $8 billion to $8.8 billion in 2017, so it was a bit of a surprise. (Forbes, 2019)

There has been much speculation about why.

Chobani CMO Peter McGuinness attributes the decline to "too many choices" based on the fact that the average supermarket now carries 306 different varieties of yogurt.

Another possibility is that health conscious Millennials have moved on to dairy-free options.  That segment of the category is expected to grow 4.9% annually for the next decade.

Or perhaps the taste options are not up to Millennial standards.  That could be resolved by new recipe hacks like "Beets and Pistachio" from Lynne Ireland.

But mostly I keep thinking about how I sometimes have to go to several stores in my neighborhood to find Organic Plain Fat Free yogurt.  Maybe it's just a matter of better inventory management.

So why do you think yogurt sales are down?  Is it due to analysis paralysis from too many choices?  A shift to trendier non-dairy options (i.e. social proof)?  Desire for more exotic flavors?  Poor inventory control?  Or something else?


Forbes, T. (2019, April 10)  Is Diversity A Bane Or Boom For The Yogurt Culture?  mediapost.com.  Retrieved April 17, 2019, from  https://www.mediapost.com/publications/article/334329/is-diversity-a-bane-or-boom-for-the-yogurt-culture.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=113543&hashid=Pumyb0Zq27pukAWPYSxcJWfpafM

Wednesday, April 10, 2019

Will Millennial travelers switch to JetBlue because of their 'GreenUp" effort?


In celebration of Earth Month (Earth Day is April 22) JetBlue is launching a "GreenUp" effort.  It's a contest.  Consumers nominate their favorite environmental-focused nonprofits and the winner receives a $20,000 grant; three runner-ups receive $5,000 each.

Consumers who participate are entered in a separate contest where the winner will have their carbon footprint retired and runner-ups will receive free tickets.  All participants are being invited to join JetBlue's volunteering efforts.  (Gazdik, 2019)

Interesting. Millennials talk a lot about being green.  Unfortunately their actions do not follow their words.  Research shows that the older you are the more green you are.

According to a Harris Poll of 2,000 U.S. adults, here's the percentage of people who regularly recycle in each age range:
·         65+: 54%
·         35+: 48%
·         35 - 44: 43%
·         18 - 34: 33%

Clearly there's room for improvement across the board. (Leblanc, 2016)

But that having been said, Millennials do like to be considered green.  So they would undoubtedly welcome becoming part of a "green tribe."  That might bode well for the "volunteer with us" part of the effort.  And entering a contest is a relatively low commitment that anyone can participate in.

But what about actually switching airlines?

The video that JetBlue posted on YouTube makes their case by noting that they are investing in fuel savings technology and planting trees.  You can watch it here...


But per mile, per passenger, flying is the most greenhouse intensive mode of transportation.  One cross country round-trip produces emissions equal to 10.5% of  an average American's annual carbon footprint.

And based on this chart is appears that JetBlue is below average in fuel efficiency versus other airlines.  Not that there seems to be much difference.


But of course most people won't check the research so it's unlikely that this knowledge will influence them.  But they may see the video or other elements of the campaign.  Which brings us full circle. 

So, will you watch the video and participate in JetBlue's contest?  Will you join their volunteer efforts?  Most importantly, will you fly JetBlue if other lower price choices are available?  What do you think other Millennials will do?



LeBlanc, R. (2016, September 9)  Recycling Beliefs Vary Between Generations, Says Study.  thebalancesmb.com.  Retrieved October 23, 2018, from

McDonnell, T. (2015, June 5)  Here's Why Obama Is Cracking Down on Airplane Pollution.  motherjones.com.  Retrieved April 9, 2019, from
 


Wednesday, April 3, 2019

Can McCormick coax Millennials into cooking by partnering with BuzzFeed?


Millennials don't cook much.  Last June UBS published a 82 page report entitled "Is the Kitchen Dead?"  In it they predicted that by the year 2030 most meals would be cooked outside of the home and delivered. (Chong, 2018)

As a company that makes spices for home cooking, McCormick must have been pretty discouraged by that finding.  But 2030 is still a while away and in the meantime they have an opportunity to take advantage of the fact that at the moment some consumers do cook.  But not surprisingly the percentage that does, decreases with age.


Frequency of Cooking at Home by Generation
generation
Everyday
A couple times a week
Once a week
A couple times a month or less
Never
Millennials
49%
37%
6%
5%
3%
Gen X
58%
32%
5%
4%
1%
Boomers
62%
29%
3%
4%
2%
Silent
62%
24%
3%
6%
4%
 


gobranded.com (Miles, 2017)


Which brings us to the question of how to engage Millennials in cooking.  Enter BuzzFeed and Tasty.  In case you missed it, according to the latest data, BuzzFeed has a global audience of 650 million people and reaches 60% of Millennials in the U.S. (Smith, 2019)

While Tasty currently has about 4 million subscribers who are looking at 700 million videos weekly. (2019)

Perhaps more importantly, Buzzfeed has shared data about Millennial cooking and shopping trends and McCormick has used these to develop new Tasty Seasonings Blends with flavors such as Fiery, Zesty and Jazzy, which will be introduced this spring.  (Guaglione, 2019)

I have to admit as a Baby Boomer those designations don't do much for me.  But then again I am not the target for the effort.  But perhaps I should be, as it is easier to convince a customer who is already using your product to use it more, than it is to get a new customer.

Or perhaps Gen X would have been a better target.  They're already cooking more than Millennials, and since they are 39 - 54, their doctors are probably getting on their cases to clean up their eating habits.  And then there's Gen Z, who maybe spearheading a back-to-basics approach to life.

So, what do you think?  Does it make sense to target Millennials given the availability of relevant data and a medium that reaches them?  Or would it make more sense to reach out to a different segment?  Perhaps a different generation?  Or ethnicity/gender?


Chong, A. (2018, June 26)  Millennials Are Ordering More Food Delivery, But Are They Killing The Kitchen, Too?  forbes.com.  Retrieved April 2, 2019, from

Miles, K. (2107, October 24)  To Cook Or Not To Cook? Generational Differences In Cooking Habits.  gobranded.com.  Retrieved April 2, 2019, from  https://gobranded.com/branded-poll-to-cook-or-not-to-cook/

Smith, C. (2019, March 24)  38 Amazing BuzzFeed Statistics and Facts (2019)  dmr.com.  Retrieved April 2, 2019, from  https://expandedramblings.com/index.php/buzzfeed-statistics/

(2019, April 1)  Channel Changes For Tasty.  statsheep.com.  Retrieved April 2, 2019, from