More realistic than previous generations, this group may prove to be a hard sell for the meat industry
by Ken Krizner, senior editor
For generations, the equation was simple: Children would come home from school while their mother would be in the kitchen cooking dinner. Soon, their father came home and dinner was served.
It was a practice that was handed down from generation to generation.
But beginning about 25 years ago, the equation was altered. Mothers began entering the work force, divorce became more prevalent in American society and a generation of children came home from school and found not their moms, but notes telling them how to prepare that evening's dinner.
Today, the first generation in American history to grow up in a society dominated by two-income households and divorce is itself entering the work force.
Add to this mix the explosion of information and communication which has given society an almost-instant access to news events breaking throughout the world; all-sports and all-music television; and the ability to talk to each other by using a computer instead of a telephone, and you have a generation that is unique in American history.
This generation isn't as big as its predecessor-the baby boomers. But the group of people born between 1964 and 1976-loosely billed, for lack of a better term, as Generation X-is out there with their wallets open and money to spend.
About 45 million strong with an estimated $125 billion in discretionary income, Generation X is beginning to make its imprint in the marketplace.
There are plenty of differences between Generation X and baby boomers: Generation X has entered the work force during a era of economic worries. This includes the federal deficit, an average income that is down about $6,000 (adjusted for inflation) compared to when the average 20 year old began working in 1970. And it does not obsess over expensive labels.
Most experts say Generation X is more realistic, experimental and opinionated than baby boomers. Meanwhile, Beavis and Butt-head, and Bart Simpson are among its cultural icons.
But because members of Generation X come from two-income and divorced households, they are already veteran consumers when they enter the work force. Having working parents, children had to learn early how to be consumers and make wise purchasing decisions because they were going to the supermarket.
"They are worth sitting up and taking notice," says John Vieweger, vice president of Chicago-based Perspectives/The Consulting Group Inc.
But what food do they buy?
When it comes to food, what does this generation want? Well, from many indications it does not appear that Generation X is heavily into a vegetarian movement.
However, fast food does seem to be the bill of fare.
A study commissioned by the International Foodservice Manufacturers Association found that 25 percent of all fast-food patrons fall into the Generation X category. And when it comes to fast food, Mexican (60 percent) and pizza restaurants (40 percent) come out ahead of hamburger, chicken and other sandwich eateries.
Daniel Sanchez, a 23 year old experiencing his first post-college graduation job, is an example of how fast food is the choice of many of his generation.
Sanchez, who works at a Cleveland bank, is also studying for his master's degree from Case Western Reserve University. His life is very rigid, he says. He allocates a certain amount of time for everything-including when and how he eats.
"I eat fast food for lunch nearly every day and probably three or four times a week for dinner," Sanchez points out. "It's easy, it's good food...why not eat it that many times?
"I hardly have time to slow down and relax," he adds. "I work, I go to school; I have goals and I am determined to reach those goals as quickly as possible. I really don't have much free time."
And in response to the next question, Sanchez readily admits, "I have no time to cook for myself. I wouldn't know what to do, outside of popping a meal into the microwave."
Quickening the pace
Sanchez's quick-paced lifestyle is indicative of Generation X. Advertisers turning their focus toward this generation are reaching it by running commercials that are hip, fast-moving and irreverent. And if you see a hint of MTV in commercials geared toward Generation X, don't think it's a coincidence-because it's not.
Music videos are fast-paced with a myriad of images and messages-the type of advertising that appeals to Generation X. Many advertising campaigns-such as Pepsi's "Gotta Have It" campaign-have taken on the appearance of a music video.
Some fast-food chains are following suite.
Taco Bell's advertising campaign "Run for the Border," which was replaced by "Cross the Border" spots last year, mixes quick-paced desert scenery with the chain's products and music.
"Our advertising focuses on risk-taking, fantasy and spontaneity," says Janis Smith, director of public relations for Irvine, Calif.-based Taco Bell. "We consider it cutting-edge advertising."
Animation for some Taco Bell advertisements were drawn by an MTV animator, Smith points out.
Thomas C. Cotton, senior vice president at Foote, Cone & Belding, a San Francisco-based advertising firm which counts Taco Bell among its clients, says The 20 Generation (he dislikes the Generation X label, saying it carries negative connotations) wants "stimulation and variety, and physical and external expression," adding, "they want it fast-moving and challenging."
Cotton stresses companies need to do "a lot more homework" when marketing products to The 20 Generation. "You have to understand their youthful attitude as opposed to sticking them in a category and saying 'come buy our product,' " he says. "That will backfire; this generation is extremely media savvy and marketing savvy. Their radar will spot lazy advertising."
This makes members of The 20 Generation "more selective and more experienced" in their purchasing decision, according to Cotton.
Lisa Wylie, a 28-year-old public relations executive, agrees with this assessment.
"We have grown up in the age of infomercials," she notes. "Everyone is trying to sell something over 100 different channels. By seeing all of this, I believe we have become smarter consumers."
How would Wylie market a product to her generation? "I would be direct and I would try to understand us," she says. "I don't think that the people who are making the advertising decisions understand us."
Cotton believes that the goal should be to indirectly market toward The 20 Generation. "You should get the attitude, understand the trends and extrapolate them for business," he says.
But Cotton also points out there are pitfalls to this strategy.
"As fast as you try to peg [the 20 Generation] or imitate its members, they will be different and you will be left behind."
Burger King's attempt to pinpoint Generation X has also taken a turn toward MTV. After losing share of the fast-food market in the late 1980s and early 1990s, Burger King increased brand awareness with the 20-something crowd with the hip and irreverent "BK TeeVee" campaign featuring MTV personality Dan Cortez and the high-pitched "I love this place" slogan. The "BK TeeVee" campaign has been discontinued since Burger King is trying to widen its customer base.
Michael Evans, manager of media relations for Miami-based Burger King, says that they were looking for someone Generation X could identify with.
"Dan fit the style of our message, and the commercials became very popular," Evans notes. "In the end, the commercials had taken on a life of their own."
Evans echoed Cotton's comments, saying that with the advent of cable there are messages directed right at Generation X because there are channels that were created for people of that age, such as MTV.
"There is greater competition for [Generation X's] discretionary income," Evans says. "You have to position yourself as being a 'fun, active' place to be and give them a product they want."
As Evans points out, people in their 20s have always been the "hard-core, fast-food users."
The meat angle
Despite the popularity of fast food, where does this leave the rest of the meat industry?
"I don't remember the last time I went into a supermarket and bought a piece of meat from the freezer case," Wylie admits. "I couldn't tell you one brand from another."
While Generation X may not know the meat industry, it also appears the meat industry does not know Generation X. Many companies contacted by Meat Marketing & Technology said they do not pay particular attention to people in that age group.
"Frankly, I don't think I have ever given a thought to Generation X," one processor noted. Some processors could not define Generation X.
Jens Knutson, AMI director of economics and industry relations, perhaps spoke for many in the industry by saying, "I'm not sure I understand Generation X."
One company trying to understand Generation X is Bob Evans Farms Inc. But a company official says it is not always easy.
"This does seem to be a difficult age group to market products to because there seems to be no rhyme or reason to its purchasing decisions," points out Ralph Cutcher, vice president, director of marketing for the Columbus, Ohio-based company. "We even find that they do not necessarily follow their past decisions when purchasing."
Does this mean that some brand names, which have been part of society for generations, may fall by the wayside as a generation more akin to fast food improves its purchasing power? Cutcher says if this happens, blame the company-not the generation.
"Instead of trying to force consumers into our product mix, we face the challenge of adjusting our product mix and image to fit these consumers' needs," he stresses. "Bob Evans has the opportunity to position its brand as a product that has had a great reputation for a long time, yet is modern to meet [consumers'] needs and wants.
We also have an opportunity to continually look at the value perception of our products," Cutcher adds. "Is this product, at current configuration, price, etc., at its same value today as it was with previous generations?"
A dose of skepticism andrealism
Cutcher notes that Generation X displays fewer buying patterns than preceding generations. "The few patterns that may exist are becoming more difficult to track," he cautions. "If I were to make any generalizations about [the members of] this group, I think they are more inclined to say, 'What are you going to do for me?' They seem to have some skepticism about manufacturers and marketers."
Foote, Cone & Belding's Cotton points out that this generation has been incorrectly called pessimistic. He terms this a "realistic generation" because many have grown up in two-income households and divorced households.
"They have had to grow up quicker, and they see the negatives as well as the positives," Cotton stresses. "In general, they are an optimistic generation. They can be cynical, but that does not mean they are pessimistic."
Wylie and Sanchez both fit the profile of Generation X. Wylie comes from a divorced household and both of Sanchez's parents worked.
Wylie says her experiences have made her "more wary of the things that go on around" her.
"I believe that I am a very smart consumer and have been for quite some time. I've been doing the shopping since I was about 14," she points out. "I just won't buy something because someone says I should. I'll shop around."
Sanchez notes that he has shopped since he was a teen-ager. "I know where the meat case is," he says. "Maybe in a few years when I slow my life down, I'll get over there and purchase a steak or a roast. Right now, who has time?"
Cutcher says purchasing decisions that will last a lifetime are established through a certain set of basic values and attitudes when people are in their 20s. "We find that these values and attitudes are adjusted based on life cycles," he adds.
The time will come when everyone will have to market to Generation X, according to Cotton. "They are the future," he points out.
It appears that many meat processors still need time before they become Generation X savvy. Knowledge starts with understanding.
"Their ethics and attitudes are going to stay with them all their lives. You are going to have to understand them now if you want to market to them later," adds Cotton
Portrait of
Generation X:
Number: 46 million
Age Group: 18 to 30
Discretionary Income: $125 billion a year
What they spend their income on: Generation X consists of big entertainment consumers. They spend nearly $30 billion a year on eating out, compared to $17 billion on household items and $8 billion on videos, tapes and compact discs.
Culture: Generation X prides itself on having a culture of its own, which includes a hard-edge, in-the-know sense of humor. Cultural icons include MTV, which has major influence on the generation, Beavis and Butthead, and Bart Simpson. It dislikes any comparisons to the baby-boom generation and is turned off by any boomer-oriented advertising. Generation X is also turned off by any obvious marketing appeals.
Marketing Outlook: Generation X knows it is a target market and hates the idea. Xers are proving difficult to penetrate because they are making buying decisions based on information from an insider grapevine that is out of bounds to marketers. Nonetheless, some not-easily discouraged marketers are attempting to reach young consumers with anti-marketing-to-Xers advertisements.
Source: U.S. Census Bureau, Marketing News