Centennials are
consumers aged between 0 and 19. They are reputed for having an unconventional
attitude that does not conform to known stereotypes. These groups of consumers
are more pluralistic and ready to accommodate diverse perceptions and views.
Any strategic manager would want to appreciate that this is a highly potent
group making up to one-third of the global population. In the UK and the US
alone, their spending power is estimated at $80bn every week. It is a group
that every organisation would find pragmatic to pay attention to.
In reference to
values, the centennials are noted rank lower than the millenials in terms of
being willing to spend. They have been introduced into the consumer markets at
a time where consumers are reasonably strained financially hence having to be
very thrifty. It is the influence of these centennials that has popularised the
perception that low price does not have to translate into a poor quality. The
centennials demand for the best quality but still insist on paying the lowest
they can for such quality. It is a trend that makes the strategic management principle
of lowering operation costs to charge more reasonably quite popular across the
world.
Strategic managers
have mainly focused on the millenials while marketing to the youthful
consumers; in oblivion of the fact that the young consumers are no longer
associated with this group. This has often led to reduced effectiveness and
diminished returns of investment made into marketing. The centennials have a
unique value system in that they are very conscious of who they are and how the
world around them works. They are significantly different from the millenials
and therefore need to be studied more intensively and their value perceptions
understood. For instance, the millenials were consumption-positive while in
their teens with the tendency to seek to purchase as much as they could lay
their hands on. The centennials are increasingly thrifty and evaluate the need
for certain products before opting on whether or not to consume them.
The difference
above has an implication for strategic marketing message design where one
marketing to Millenials would advisably focus on the feel good effect while
that targeting centennials would need to focus on the value of such products.
The latter group does not want to feel as though they are being wasteful. They
want to consume but be convinced that they have made the right call in choosing
to consume. It means that while marketing to the centennials, the post-purchase
stage should be as important to the organisation as the pre-purchase stage.
One of the factors
that influence centennials to be thrifty and realistic is the experience they
have been exposed to. The global recession has brought out the reality of how
detrimental and unsustainable a materialistic culture can be. They have been
introduced to the culture of resilience and consciousness in spending. They are
therefore more realistic and only likely to spend when they perceive a product
or service as adding value to their lives. This means that brands seeking to
base their campaigns on emotional branding need to be careful to go for
perceptions that are in touch with these realities.
The keenness of
centennials on value and consumer experiences also makes them keener than the
older customers on sharing their perceptions on brands and products consumed.
This group poses quite a challenge to strategic managers as their tendencies
increase the risk of the organisation losing control of the branding process. A
wide variety of social media platforms need to be used actively by these
managers to not only understand the consumers but also try to manage
expectations and involve the consumers in the branding process. It is the businesses
that will learn how to navigate dynamically while engaging these centennials that
will most likely grow into formidable brands.
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