Special Report: Marketing To Youth

Be it for their purchasing influence or their actual purchasing power, younger consumers are a coveted lot. But everyone under the age of 18 can't be lumped into one shopper segment. Rather, successful marketers see them as three distinct groups -- toddlers and kids, tweens and teens."Overall, today's shopping youth market is savvy and informed," says Paul Metz, senior vice president, C&R Research, Chicago. "Kids become shopping 'experts' by the time they enter middle school. They can sniff out fake and inauthentic attempts to market to them. But it does depend on their age."Marketers are finding that tweens and teens, in particular, are aware of brands, and they are spending billions of dollars at brick and mortar retail, despite an affinity for seeking product information on the Web. Retail-speaking, this makes them more hip to digital in-store TV, social networking and tying online into a store program. Both groups are also seeking value like mom.Tweens: Tell Me What to LikeTypically falling between the ages of 7 and 14 (although some cut tweens off at 12), they are a powerful group. According to the 2008 Tween Spending and Influence report from EPM Communications, New York, there are 21 million children in the United States between the ages of 8 and 14, wielding $43 billion in spending power annually while influencing billions more. Experts say tweens know when they're being advertised to, but don't mind it if it's something they want.For the most part, this age group is still being guided and influenced by their parents. Generally, girls this age love to shop and view it as a social activity to do with moms or friends, while boys are more apt to make a beeline for the item needed so they can quickly leave the store, says Leslie Armour, CEO of Youth Marketing Group, Columbus, Ohio."Tween girls want to be 'in the know,'" Armour adds. "Messaging to tweens needs to be literal, on the nose. Tell them what to do and they can do it; it can't be clever and subliminal." Tweens are more price-aware than ever before, too, and while parents are also more cost-conscious, they are still spending, she says. Most retailers, especially in this economy, are targeting their parents with a value message.Tim Koletsos, director of stationery marketing for Bic Consumer Products USA, Shelton, Conn., agrees that value, as well as quality, needs to be communicated to parents. You have to let kids know you have the "right, 'cool' products for them," he says. Bic conducts online surveys and focus groups to ensure messages are resonating with shoppers. Geo Stewart, creative director at OgilvyAction, Chicago, says that focus groups can be informative for kids' products; but remember your audience: "You don't necessarily need to test the complete concept, particularly if it relies on elements they'll be unfamiliar with like upcoming products or partners," he says. "Instead, dig into your ideas to find out if your higher-level insights connect with kids. Are they more excited about a program that gives them the spotlight or challenges them to master a task?"At Tween Brands, where Armour heads up the partnership marketing division, outside brands connect with tweens through its more than 900 Justice stores (formerly known as Limited Too) and the company's database of more than 10 million girls ages 7 to 14 and their 7 million moms. Girls are engaged via direct mail, an interactive website and an enhanced in-store environment. Its printed "catazine" is mailed to girls based on shopping history; virtual editions can be accessed online. Also at the stores' site, they can play games, watch videos and download items. An in-store digital video network, Tween Network, launched in March 2008 in 75% of Justice locations and is designed to be an entertainment and communication tool like the catazine. It airs music videos, behind-the-scenes photo shoot footage, celebrity interviews, movie trailers and marketing messages."We know for certain that music is important, and perhaps of chief importance to attract tweens and teens," says C&R Research's Metz. "As I heard someone comment at the Ypulse conference, 'Music is the key to unlocking the teen psyche.' It's true -- music can make or break your brand. Retailers need to choose their music and in-store ambiance with great care."Tween Brands recently tested the effectiveness of its TV network, promoting a website for its new online community only via that medium. Armour says in only three weeks, the site had 50,000 registered users. Additionally, products advertised on the network had about a 22% sales increase.Teens: Be AuthenticAlthough experts say teens' spending has remained at the same levels prior to the recession, they are now looking more for sales and deals. As Gary Rudman, president/founder of Sausalito, Calif.-based GTR Consulting says, "frugal is the new hip."They've abandoned high-priced brands, like Abercrombie & Fitch, in favor of brands that are more value driven, such as Aeropostale and Hollister. Teens are bred to move on, so brands have to continuously change and adapt -- think Nike or Apple -- to keep their interest. While they may research online, retail continues to be their preferred shopping outlet.As for advertising, particularly online, it's the thing they least like about the Web. Rudman calls it "advertorment," and says teens are frustrated by ads that distract, divert or block their online experience."When it comes to social networks and the Internet in general, they are very focused," he says. "Each place on the Web they visit has very specific purposes. So many marketers are trying to figure out how to monetize social networks. They are not at social networks for that; they are there to network."Regardless, retailers and brands are finding ways to reach teens, and with Packaged Facts reporting (2007, "The Teens Market in the U.S.") that the 26 million 12- to 17-year-olds have an aggregate income of $80 billion, it's not a shopping segment to abandon."With teens, it's about being straight up and authentic, not trying to pander to them with polished advertising," says Jeff LeFever, marketing director, Jack Link's, Minong, Wis. "It's letting them have some fun and entertaining them. Teens have a very sophisticated B.S. meter."In March, Jack Link's launched a new meat snack, Matador, aimed specifically at teens. It's an impulse item, so the brand looks for in-store placement at checkouts and near beverages. Shelf danglers and large mugs at counters help draw teens' attention. LaFever says teens shop more in c-stores than the general population; they're always on the go. Knowing that the sweet spots for teens are social networks and word of mouth, Jack Link's uses its "Living Sasquatch" website to virally spread the word about the brand. For several years, Sasquatch has been part of the company's advertising campaign and he's been using social networks. Sasquatch has his own MySpace and Facebook pages, he's posted photos on Flickr and even sold things on eBay.While the company did some online advertising promoting the site and passed out information at events, the website isn't included on any product packaging. "On-pack, we stick more with the corporate website," says LeFever. "The strategy is to let that be more of a social phenomena, to let them find out from friends."Offering exclusive licensed items, such as 3-D cups and toy straws, is one way 7-Eleven, Dallas, attracts a teen audience. "[We're] often the first place customers can go to see movie 'stars' before they come to theaters," Evan Brody, marketing manager for proprietary beverages, says. 7-Eleven is also pushing for a lot of two-way conversations vs. one-way messaging. Last April, the chain launched a new www.slurpee.com website and this April did a soft launch of the Slurpee Nation rewards program. The chain is also actively using Facebook and other social networking sites. C&R's Metz says, "Customer service and in-store experience matter to teens. If they go into a store and are treated friendly and with respect, they will develop affinity for that store. If not, they will shun the store. Peer influence is important, too: If they know that their friends shop there, the store is OK. If their friends don't shop there, they don't want to be caught dead there."

Special Report: Marketing To Youth

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