Youth and Age in Corporate America’s Cultural Dichotomy – 07-21-2011
Presented here for discussion is a summary of a current article from the About Marketing Solutions blog.
Corporate retailers, are you ready? I’m going to ask you a difficult question.
Is your age outpacing your organization’s relevancy?
The topic begs discussion when recognizing that, generationally and culturally, half of all Gen Z consumers (46 percent), and 40 percent of Gen Y and Gen X consumers are multicultural. Conversely, 66 percent of boomers and 80 percent of seniors 65+ are non-Hispanic white.
Commenting on my recent discussionon strategic relevance, Dan Stanek, EVP of Big Red Rooster, replied, “Innovation is more difficult when leaders are much older than the target market and do not understand how they operate.”
Is he right?
Generational and cultural skews represent significant challenges for a lot of today’s senior executives. If they want their companies to remain relevant and in demand, they are tasked at this particular point in marketing history to not only shed traditional views and ways, but to learn to understand and address cultural diversity in younger generations.
The sharper minds in corporate America are already in sync with the country’s age and cultural trends:
- Pamela El, VP of marketing at State Farm told Ad Age back in 2009, “I think industry-wide, as America becomes more multicultural, you will see more ethnic insights across the board. I think we’re seeing it already, but I think we’ll see it two-, three-, four-, five-fold going forward.”
- McDonald’s USA Chief Marketing Officer Neil Golden stated at the 2010 ANA Masters of Marketing Conference, “It’s very clear that African-American, Hispanic and Asian-American consumers set the trends and McDonald’s has found it more valuable to apply these segments’ preferences to the overall marketplace than to apply overall preferences to these segments.”
- Coca Cola’s CMO, Bea Perez, kicking off this year’s Nielsen Consumer 360 conference, noted, “We know that 86 percent of the growth through 2020 for Coca-Cola’s youth-target market will come from multicultural consumers, especially Hispanic, and focusing on this segment is critical to the company’s future growth.”
These are the exceptions, however. The gap is wide between the multiculturally influenced Gen X, Y and Z markets and the bulk of U.S. corporate retailers who can’t “see” the relevance in educating their game to new consumer market trends.
In mid-June at the Consumer 360 Conference in Miami, Nielsen’s CEO David Calhoun exhorted attendees to spend 65 percent of their time figuring out their Hispanic opportunity.
“The story here is that within the next five years, multicultural clients will drive 86 percent of the total growth on spending at retail and, if you look at growth without these groups, you are only addressing 10 percent of the growth,” added Nielsen’s SVP, Claudia Pardo at the same conference.
Discussion questions: Do you agree that “innovation is more difficult when leaders are much older than the target market?” To what extent do generational and cultural disconnects exist within retail organizations and brands today?
Innovation is difficult for most senior leaders, but not simply due to age or ethnicity. The problem is a general lack of curiosity. The tendency for most is to lean on what has worked for them in the past. One cannot approach today’s consumer trends, which are clearly multi-cultural, with yesterday’s thinking. And yet most do just that. To remain relevant and effective, senior leaders must stay curious and immerse themselves in all the rich cultural happenings available on social media and other sources, including their own employees who hopefully mirror their consumer base. If you do this, you can stay current, interested, and passionate about your consumers.
Further, the cultural diversity of today’s trendsetters varies by region and must be addressed as well as the macro trends.
Remain curious, utilize research, and listen intently to the readily available voices out there and senior leaders can remain effective no matter age or ethnicity.
Mike Osorio, your Dare to be Contagious! ™ strategist
What do you think? Please add your comments and add to the discussion!
Go to the full article at Retailwire.com: Youth and Age in Corporate America.
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