The ABCs of marketing to Generation X

Drug Store News, July 8, 1996 by Lisa I. Fried

Generation X. Post boomers. The 13th Generation. Whatever you call them, consumers between the ages of 18 and 31 are an attractive marketing target--a huge group of 55 million strong. They spend more than $200 billion a year and are just beginning to build loyalty to retailers and products.

Reaching them requires completely different marketing and merchandising approaches from those used to attract baby boomers, according to three marketing experts who spoke at HBA Global Expo last month: Roger Barnett, president of Arcade Inc., which conducts scent sampling; Julie Winskie, executive vice president of Porter Novelli, a marketing and public relations firm; and Katherine Viscardi Johnston, publisher of Mademoiselle, a magazine for women in their 20s.

A demographic with an attitude

"Generation X is both a demographic and an attitude," said Barnett. Understanding the attitude is important because, "It has the potential to be a more pervasive consumer attitude for the rest of the population."

"This is the misunderstood generation," Winskie agreed. "Their values and expectations early on in their development were elevated, and then they came of age when things happening in society and the economy changed greatly.'

Unlike the baby boomer generation, these young people have come into their own during difficult economic times and, in many cases, were raised by and continue to live with a single parent. Their single parent is usually a mother who had not planned to be self reliant. As a result, these young people are committed to being independent. Unfortunately, they are establishing careers in a tough job market, making the goal of independence more challenging.

Not only have they grown up in difficult times, they have also been raised on MTV, the Internet and an enormous amount of media and advertising. In short, "They have been hyped to death," Viscardi Johnston said.

Careful consumers

This prolonged exposure to hype has caused the group to be more skeptical than baby boomers. X-ers tend to research and try many products and services before committing to them. They are very experiential and buy brands as an extension of their identity," Viscardi Johnston said. They like to try different retail outlets and brands, but at some point in their 30s they bond with retailer and products for the long-term." (See "Brand loyalty of women varies by age," below, about their shopping habits.)

Capturing their hearts and pocketbooks now will pay off down the road.

Here's some advice from Barnett, Winskie and Johnston, coupled with some suggestions from me, on how to effectively reach this generation.

Be honest, straightforward and as personal as possible with all marketing communications: While these young people do respond to shopper loyalty programs, they are more apt to participate in them if the rewards are somewhat flexible. (For example, in a promotion where consumers earn a free product if they spend a certain amount of dollars over a six-month period, offer them the choice of a free shampoo, lipstick or body wash.

Minimize hype, offer them plenty of information and allow them to interact with displays and sample products: Drug stores with magazine sections, audio tape listening stations, a wide range of products, in-store product sampling/educational events, and informational brochures on products and health and beauty problems, will appeal to them.

Support causes they care about, such as Habitat for Humanity and Adopt a Highway.

Offer products made from natural ingredients that don't harm the environment. Compared with baby boomers, women in their 20s are 32 percent more likely to pay more for products they think are better for the environment, according to Viscardi Johnston.