Marketing To Tweens&Teens Fuse Lima 2010

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Marketing To Tweens&Teens Fuse Lima 2010

  1. 1. Marketing to Tweens & Teens: Insights, Strategy and Tactics Presented by Bill Carter, Fuse July 2010 1 1
  2. 2. Contents • Teens & Tweens: Who They Are • Market Power • Technology, the Internet, and Social Media • Gaming g • Music • Sports • Fashion • Other Product/Cultural Trends 2 2
  3. 3. Fuse Offices in Burlington Burlington, VT & New York, NY For more information Founded in 1995 see fusemarketing.com Fuse develops marketing strategies that Brand Strategy Strategy, reach a mass h Fuse is a leading youth F i l di th PR/Social Media, Event market while culture marketing Marketing, Design, maintaining services agency Interactive legitimacy throughout youth culture 3 3
  4. 4. Teens and Tweens: Who They Are 4
  5. 5. Population Teens (Gen Y, Millenials) Mill i l ) and d tweens (Gen Z, iGeneration, NetGen) are 8-19 year olds born between about 1991-2002 Most ethnically About 55 diverse million in total generation to or nearly 20% date (one in of the US f th three is non- 33 population Caucasian) 5 5
  6. 6. Born At The Right Time 1991 2001 Internet made 1996 Wikipedia goes available Ebay goes live yg online commercially 6 6
  7. 7. Social/Environmental • 83% will have more trust in a company if it is 3, 7 socially/environmentally responsible y y p • Nearly ¾ are more likely to pay attention to the company’s ,message if they are deeply committed 3 7 to a ca se cause • 69% base their shopping decisions on a company’s social and environmental p y 3, 7 commitments • Almost 90% would likely switch brands (if quality and price are equal) if a second b d was d i l) d brand 7 associated with a good cause • 66% consider a company’s commitments when company s 7 recommending it 7 7
  8. 8. Historic Concerns Money (and the current recession) Independence ( DIY ) (“DIY”) Happiness 8 8
  9. 9. Free Time Friends Gaming Movies/DVD’s (mostly on the Music M i weekends/Su mmer) TV Free Internet Time 9 9
  10. 10. Television • Teens and tweens still watch a lot of TV – about two hours per day p y • While they watch TV, they multi-task: do homework, talk to friends on the phone, and spend time online • Fuse Teen Advertising Study available for free download here (http://www.fusemarketing.com/Youth_Rese arch) in 2009 indicated teens approve of/think its appropriate for advertisers to reach them through TV (ranking it the highest among any media) 10 10
  11. 11. Market Power 11
  12. 12. Market Power Spending power 6 exceeds $200 billion d billi They buy products Gen Y that are influences either another cheap or p $300 - elite, not $400 much 33 billion middle8 ground Spend an average 33 of $30 per mall visit 12 12
  13. 13. Where Money Is Spent • Tweens spend money on entertainment and things they can use at home with their friends since they y y are less independent • Video games, music, toys • Teens spend money on activities away from home because they are more independent • Going to the movies eating out movies, 13 13
  14. 14. Spending Habits More brand loyal than you’d think, more than 50% purchased the same 15% of total spending is 44% go to the mall at 1f brand on two out of three b d t t f th 1e 1 done online least once every month of last shopping trips across all brand 32 categories 19% of their disposable 5.6% on 14% buy four or more1f income is spent on accessories/personal care 1d 1d pairs of j i f jeans in a year i clothing items 10% of 12 – 19 year-olds have their own credit 1e card 14 14
  15. 15. Consumer Profile • They are critical and highly savvy consumers • Price is the number one purchasing factor for 70% of 2 this population • One-quarter consider brand names as an important 2 factor when buying new products • They are turned off by blatant branding and the hard sell 8 • They like products that let them show individuality 15 15
  16. 16. Consumer Profile • They want to discover products, but on their terms and in appropriate places • 52% of males and 38% of females “couldn’t care less” about advertising, while 44% say that it has 2 no impact on their purchasing decisions • They are in constant contact with friends by cell phone, IM, email and online social networks • One-third say their friend’s opinions impact their 2 purchasing decisions 16 16
  17. 17. Technology, the Internet, and Social Media 17
  18. 18. Born Into Technology Tweens and teens were  born into a world that  already included: • 24 hour cable TV news and  entertainment  i • Mobile phones • Video gaming industry with  multiple console and hand‐ held brands 18
  19. 19. Technology Usage Technology Approximate Percentage of  Tweens/Teens Use Tweens/Teens Use Computer 80 Cell phone 80 (for teens) DVD player 85 Gaming device g 75 19
  20. 20. Internet Social  Media  Video  Video Search Sharing g Most  Most Popular  Destinations 20
  21. 21. E-Mail • E mail while still used by tweens and teens E-mail, continues to diminish in importance • Rapidly being replaced by daily use of IM and social p y g p y y media (Facebook and twitter in particular) • Marketers should not expect youth to communicate with them by email but rather social media – nor email, should marketers consider e-mail a marketing tactic 21
  22. 22. New Sites • How they learn about sites is critical for marketers • Most important are referrals from friends (including discussions with friends on Facebook) • Links from other sites are very important too 22
  23. 23. Mobile Phones • Over 80% of teens have mobile phones and over 50% of tweens have them • In addition to talking to friends, they use mobile phones for texting, playing games, and taking pictures/video pict res/ ideo 23
  24. 24. Social Media Facebook MySpace twitter Tumblr 24
  25. 25. Social Media • Connecting with friends is by far the most prevalent reason youth uses social media • Meeting new people is not a key use, and should be noted by marketers trying to introduce their brands online 25
  26. 26. Gaming 26
  27. 27. Who’s Playing • Age gamers • Under 18: 31% • 18 to 49: 44% • 50+: 25% • The average game player is 33 years old and has been playing for 12 years • 61% of teens (80% males and 42% females) play video games in a given week • 38% of all players are women 27
  28. 28. Frequency • Youth who game spend about one hour per day doing it g • They purchase just a handful of new games per year 28
  29. 29. Consoles & Handhelds • Most videogame play is on a console • PS and XBOX • Tweens and teens also do a significant amount of gaming online/through websites • T Tweens are more likely t use a h dh ld th a lik l to handheld than teen • Wii and Gameboy y • Fuse’s Teen Advertising Study in 2009 found that only 10% of teens think in game advertising is acceptable way to reach them 29
  30. 30. Casual Gamers More people spending more  time playing Web Browser  44% of game players say they  mini‐games such as poker  play online for one or more  play online for one or more than playing “serious” Multi‐ th l i “ i ” M lti hours per week Player Online Role‐Playing  games like World of Warcraft The average adult woman  The average adult man gamer  g gamer plays games 7.4  p y g plays 7.6 hours/wk l 76h / k hours/wk Females average two hours of  game play  more per week than they did  more per week than they did a year ago 30
  31. 31. Music 31
  32. 32. Music Basics Youth listen to music more than five hours per day – far exceeding other media and entertainment Nearly half of teens prefer to Most new buy music music is online found on the (digital internet inte net and downloads) from friends versus at a retail store Even young teens spend over $25 per month on music 32 32
  33. 33. Downloads • iTunes is the dominant player and as much as 7x more popular than its nearest competitor • Amazon.com is surprisingly popular, while retail sites like FYE.com are not 33 33
  34. 34. Sports (Action Sports) 34
  35. 35. Importance • Sports such as skateboarding, BMX and snowboarding that embrace individuality, creativity g y, y and style • These sports have high rates of youth participation 18 and spectatorship (33+ million participants ) • For many, they are a complete lifestyle rather than j just an activity y 35 35
  36. 36. Growth • The fastest growing sports in the US are p action sports Sport Total Participation* 6 Year % Growth** Surfing S fi 1,936,000 1 936 000 +38.8% +38 8% Skateboarding 10,592,000 +47.3% Snowboarding 7,110,000 +30.2% Wakeboarding 2.843,000 +26.2% BMX 2,642,000 NA Motocross / FMX M t 5,000,000 5 000 000 NA Freeskiing 3,500,000 NA Totals 33,623,000 33 623 000 36 36
  37. 37. Acceptance • Teens today are the first generation to grow up in a society that accepts action sports • Parents attend action sports events like they attend soccer or baseball games • F iliti th t f t action sports continue to emerge Facilities that foster ti t ti t • Skateparks (over 2,000 parks in existence) • Ski / Snowboard terrain parks • Action Sports Camps (Woodward, Point X Camp, Mount Hood) 37 37
  38. 38. Action Sports Influence • Youth that don’t skate/surf/snowboard still want to identify with the lifestyles associated with these sports • C Consumers can now b snowboard j k t f buy b d jackets from non- snowboard brands like Old Navy, black slim-legged skate/punk inspired jeans at the Gap or board short inspired sheets at Pottery Barn 38 38
  39. 39. Fashion 39
  40. 40. Trends • 48% of youth consider fashion and trends when 2 making a p g purchase • 26% females and 19% males say trends influence 2 their purchase • Thrift and vintage stores increased the most in terms 4 of where young mostly people buy their clothes • Spending on T-shirts denim jeans and footwear T shirts, footwear, specifically sneakers, have increased on average 4 since spring of 2006 • Stores such as Target and H&M have commissioned well-known designers to create accessible well-designed products well designed 40 40
  41. 41. Denim • Media exposure and visibility is on high end denim brands like Paper Denim and True Religion ( p g ($150 - $250 per p ), p pair), but this is not a youth phenomena • Youth generally spend under $40 per pair, but buy on average six-seven a erage si se en pairs per year ear • Levi’s still #1 41 41
  42. 42. Sneakers • Shoes as a • Shoes as a • Skate ism kate ban canvas, fashion piece, inspired Urb reflect rich designs designs, footwear viduali Sk personality, materials worn by showcase (Swarovski skaters and color crystals) and non-skaters, palettes, textures, paired with Indiv allow for themed skate and design-it- patterns and higher yourself colors, fashion concepts p alternative apparel pp styles such as flats or heels 42 42
  43. 43. Other Product/Cultural Trends 43
  44. 44. Tech Integration Oakley MP3 & Bluetooth Sunglasses Levi’s iPod Jeans Kyono iPod Jacket Tunebuckle iPod Belt Nike iPod Running Shoes Burton / Motorola Audex 44 44
  45. 45. Limited Edition DC Shoes / New Era Set: 115 Sets New Era Capture The Flag Series: 200 Hats Per Issue Obey Poster: 100 Produced y Gorillaz Toys: 250 Produced 5Boro Beastie Boys 45 Skateboard: 100 Produced 45
  46. 46. Collaboration Nike SB / Futura Vans/ Marc Jacobs Burton / Stash 46 46
  47. 47. Customization Nike ID Boardpusher Custom Skate D k Sk t Decks O’Neill Custom Series Board Shorts Burton Series 13 47 47
  48. 48. Q&A: Any remaining questions? 48
  49. 49. Please contact me with any question @ bcarter@fusemarketing.com or 802 598 1008 b t @f k ti 802-598-1008 *As a reminder, you can download this presentation at licensing.org and download the Fuse Advertising Study g g g y from fusemarketing.com 49
  50. 50. Appendix 50
  51. 51. Resources 1) EPM Communications “Teen/Tween Crib Sheet.” <epmcom.com>. a. Child’s Play Communications & Insight Research Group b. Grunwald Associates c. BuzzBack d. Piper Jaffray e. Harris Interactive f. Simmons g. Teenage Research Unlimited h. Census Bureau 2) “Price Matters, Celebrity Doesn’t For Teen, Young Adult Purchases.” PhatGnat, DK, Founder/President <phatgnat.com>. (Youth Markets Alert. 1 Sept 2006.) 3) Jayson, Sharon. Generation Jayson Sharon “Generation Y Gets Involved.” USA Today 23 Oct 2006 Involved Today. 2006. <usatoday.com>. 4) “Youth Culture Study Reveals Consumer Market Trends.” TransWorld Business. 02 Oct. 2006. <twsbiz.com>. 5) “Marketing to Teens & Tweens.” EPM Communications Report. 6) “Generation Y Defined.” OnPoint Marketing and Promotions. <onpoint.com>. 7) “Civic-Minded Millenials Prepared to Reward or Punish Companies based on Commitment t Social C C it t to S i l Causes.” CONE 2006 Mill ” Millennial C i l Cause St d Study. Business Wire. 24 Oct 2006. <businesswire.com>. 51 51
  52. 52. Resources 8) O’Donnell, Jayne. “Gen Y Sits on Top of Consumer Food Chain.” USA Today. 11 Oct. 2006. <usatoday.com>. 9) Kharif, Olga. Everyone s Kharif Olga “Everyone’s Aiming at Satellite Radio ” BusinessWeek Online Radio. 13 January 2006. <businessweek.com>. 10) MySpace. 11) “XM S t llit R di Thi d Q t 2006 S b ib Additi Satellite Radio Third Quarter Subscriber Additions.” O bit ” Orbitcast. 4 t Oct 2006. <orbitcast.com>. 12) “Music News.” What’s the Download? 13 Oct. 2006. <whatsthedownload.com>. 13) “Music News.” What’s the Download? 19 Oct. 2006. <whatsthedownload.com>. ) 14) “Music News.” What’s the Download? 24 Oct. 2006. <whatsthedownload.com>. 15) “SIRIUS Satellite Radio Third Quarter 2006 Subscriber Additions.” Orbitcast. 4 Oct 2006. <orbitcast.com>. 16) Ipsos-Reid’s Digital Music Research Study. TEMPO, 2004. 52 52
  53. 53. Resources 17) National Sporting Goods Association 2005 and 2006. 18) American Sports Data. 2002 -2005. 19) American Motorcycle Association 20) Freeskier Magazine. 21) “Mobile Gaming Grows.” Center for Media Research MediaPost Communications. 15 M 2006 <centerformediaresearch.com>. C i ti May 2006. t f di h 22) Elliot, Stuart. “Tony Hawk’s New Trick: 2 Marketers in 1 Campaign.” New York Times. 23 Oct. 2006. <newyorktimes.com>. 23) GameSpot com GameSpot.com 24) Entertainment Software Association 25) “Sneaker Culture Changes + Predictions – Preview from ‘North American Youth Culture Study – Fall Report ’06 September 19 2006 ’” Label Networks. 06 19, 2006. Networks <labelnetworks.com>. 26) “IG Picks.” Trend Central. 22 Sep. 2006. <trendcentral.com>. 53 53
  54. 54. Resources 27) “Cassandra Report Day 2: Mainstream Green.” Trend Central. 03 Oct. 2006. <trendcentral.com>. 28) Jesella, Kara. Grunge Good. Jesella Kara “Grunge is Good ” New York Times 22 Oct 2006 Times. 2006. <newyorktimes.com>. 29) “The Trendcentral Newsletter.” Trendcentral. 18 Sep. 2006. <trendcentral.com>. 30) Fixins Sneakers. 26 Sep. 2006. <fixins.com>. 31) Writer, Ghost. “DC Shoes X Methamphibian.” Hype Beast. 27 Oct. 2006. y <hypebeast.com>. 32) “Teen Spending.” High School Newspaper Network. Dept Zero. 33) Horovitz, Bruce. “Gen Y: A Tough Crowd to Sell.” USA Today. y <usatoday.com> 54 54

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