Reaching Generation Y

Move over Generation X, consumers characterized by technology, personalized style and distain of advertising. Whether it?s Toyota Scion, Westwood College or Aspen Pure water, marketers are courting a potentially bigger catch, Generation Y.

And businesses recognize they need new strategies to attract the attention of these teens and young adults.

Gen-Xers and Generation Y, born between the late 1960s and mid-?90s, make up the echo boomers, offspring of baby boomers and their children.

Generation Y represents some 60 million consumers. These tech-savvy customers born between 1981 and 1995 are the largest consumer group in the history of the United States, according to OnPoint Marketing and Promotions Web site.

Echo boomers have annual incomes totaling $211 billion, according to a study from Harris Interactive. The study found that Generation Y spends $172 billion per year, saves $39 billion per year and drives many adult-purchasing decisions.

?Consequently, the Y generation represents the future market for most consumer brands,? OnPoint says.

Unlike their parents or older siblings, Generation Y is less influenced by traditional advertising media such as newspapers, magazines and television. Instead, Generation Y product exposure occurs during sporting and entertainment events and through surfing the Internet, local advertisers agree.

?Normal mainstream marketing seems to turn off this generation,? says Steve Doersam, general manager of Boulder Toyota. Toyota markets three models of the Scion to Generation Y. Instead of blitzing local newspapers advertising sections and buying time on network television, Toyota reaches its target market by parking a Scion near local nightclubs, sponsoring special events and linking sites on the Internet.

Doersam maintains that the younger generation recognizes the quality of Toyota but does not want ?your father?s Oldsmobile.? In response, the Scion sports coupe is built on a Camry platform, combining time-tested technology with a new outer shell. Cool customization such as colored shift knobs, gas and break pedals and steering wheel encourage consumers to create their own style.

Initially introduced on the Scion.com Web site, the car became available first on the East and West coasts. This May, Scion was delivered to the Colorado region.

Mark Egger, regional Scion manager, says Scion?s marketing strategy is a ?unique business model.? The dealer sets the price, although most use the manufacturers suggested retail price. ?The no-haggle pricing appeals to this market. They know what to expect when they walk into the showroom. Everything is up front, including accessory pricing,? he says.

Generation Y is very Internet savvy, Egger adds. He estimates than more than 70 percent of buyers have checked out the car at Scion.com.

?They know about vehicle and know how they want the car accessorized. As of Nov. 1, some 3,200 Scions have been sold in Nevada, Wyoming, Utah, Arizona, New Mexico.?

Egger says the Scion is advertised on ?late night fringe and cable TV such as MTV and the X games on ESPN. In addition, ads run on car-related programming such as ?Pimp My Ride.? Scion also sponsors DJs at club events called Scion sessions. Models are displayed near pop star and hip-hop concerts.

The company is relying on word of mouth to create a buzz. For example, Jared Engles, a 23-year-old student at University of Northern Colorado, said he learned about Scion online from a friend who lives in Alaska.

The computerized customization was ?huge.? Engles recently purchased a Scion tC for more than $16,000. He custom ordered it. He lowered the base by two inches, added bigger wheels and asked for an upgraded radio and appliqués.

?I love cars and had heard about the Scion through Motor Trends and the Denver Car Show. I was curious, it sounded too good to be true,? he says. Engles liked ?the no-hassle pricing. It was comforting to know that anywhere I go, the Scions are priced the same.?

Bill Obermeier, chairman of Stratecom, a marketing, advertising and public relations agency in Boulder, says his firm targets Generation Y for Westwood College, a technical, trade and vocational college that recently introduced courses in software design and animation.

?We had to figure out a way to reach Generation Y,? which he defines as people ages 18 to 28. ?We came up with an event that featured an industry game software personality,? Obermeier says. Word was spread through nontraditional media relations such as local chapters of game developer organizations, national Web sites and local alternative media such as Dirt, The Onion and on Web sites about game development. ?We were successful getting people to the event in greater numbers than expected,? he says.

?The echo boomers don?t have traditional media habits such as mainstream newspaper and TV,? Obermeier says. They are interested in specific kinds of cable programming. In Chicago, Stratecom bought advertising space on the El, the city?s public transportation system. The new Westwood campus was advertised on rock radio stations, through contests and remote radio appearances in Grant Park. While the public transportation ads work for the city, advertisers must come up with alternatives for more suburban target markets, he notes.

Charles Bell, creative director of Tool Studios in Niwot, says that product placement and design is the key. For example, one client, Aspen Pure, a bottled water producer and distributor, uses 40-foot banners at Denver?s Universal Lending Pavilion to put the brand in front of big concert audiences.

Bell says Generation Y responds to flashy graphics and unique packaging. As a result, Aspen Pure bottle design has an easy grip that differentiates itself from competitors.

?The baby boomer generation thought water was something you got out of a tap. Now tap water is a real negative. The packaging and bottle design influences the Generation Y market,? he says.
Aspen Pure has increased product exposure by sponsoring sporting events such as bike races and a concert series. The goal is to associate the product, brand and image with a lifestyle, he explains.

To promote Winter Park ski resort, the agency designed short flashy banners for Internet sites. They use affiliate programs such as Breeze Ski rental to capture attention.

?In the video game era, short flashy blurbs with a lot of emphasis on graphic design have appeal,? he adds.

?Design standards are so important. There is a lot of energy and effort going into design. This market is so visually sensitive. The Web is allowing three-dimensional and animated advertising to take place in short tidbits. The average person is bombarded with thousands of ads everyday. Our job is to make the product stand out,? Bell says.

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