Consumer Behavior of The Millennial Generation

Consumer Behavior of the Millennial
Generation
Sourav Sinha
Profiling Millennial (Birth dates 1995+)
Generation Consumers : A Study
 The most interesting fact about the millennial generation is the psychographic
similarity across different demographic and socio-economic strata.
 This psychographic traits and the resultant behavioral pattern should be given
due importance by the marketers.
 Children and teen agers are increasingly taking bigger roles in family
purchase process
The Millennials are
 Impatient
 Not great Readers
 Experiential and Exploratory Learners
 Digital Natives & Gamers
 More at ease with Parents
 Multi-taskers, Result Oriented
They want
 More Choices; More Selectivity
 Personalization and Customization of products &
services.
Millennials truly don’t pay very much attention to marketing, despite

being the most marketed to generation in history.
Purchase of a child’s toy in an urban
market :
A behavioral model
Children and Teenagers in Family Purchases

 They represent sizeable consumers in their own right
 Growing numbers are assuming responsibility for family
shopping
 They also influence what parents buy
Our Survey Findings:
 63.63% of the times the child is consulted and involved in the decision
making process. However, the guardian or the parent is involved 100% of
the time.
 9.09% of the time a guardian alone is involved in the purchase process.
 Both the parents involved in 27.27% of the time.
 One of the parents and the child are involved 45.45% of the time.
 Both the parents and the child are involved 27.27% of the times.
It is to be noted that guardians/father/mother of families with salary less than 150000

tend to take the decision to buy the toys without the involvement of child.
However, people with higher income groups tend to involve the child in the decision
making process.
Positioning strategy
A Positioning Strategy based on Consumer seems most appropriate here.
But following the STP model, we need to find

 The Right Segment comprising the following socio-economic class
1. Upper-upper
2. Lower-upper
3. Upper-middle
4. Lower-middle
 Target both the Child and the Parents

 The Right Marketing Mix depending on Primary and Secondary Market Data
The Market Scenario (Secondary Data):
 According to the Toys Association of India, 90 per cent of the Rs 2,500-crore
(Rs 25 billion) toy market is unorganized. That means organized players get
to share only Rs 250 crore (Rs 2.5 billion).
 According to the Internet And Mobile Association of India, online shopping
for toys accounted for 8.5 per cent of the Rs 250 crore organized toy market.
 Major multinationals such as Lego Toys dominate the most of this sector.
Lego itself controls up to 20% of the domestic market; followed by Leo Toys.
Funskool Toys is the third largest toy producer.
 The major rulers in India are the plastic toys which capture 80% of the toy
industry
 In India, toys aren't seen as developmental. So pester power of kids and
impulse purchase becomes the most important vehicle for growth in this
market.
 The Indian toy market is highly price sensitive.
 Toy sales boomed along with growing popularity of television series for
children.
[When Cartoon Network premiered the Beyblades series in India in May 2005, Funskool
launched Beyblades in the price range of Rs 199-299. This accounted for 50 per cent of
their sales.]
Our Findings (Primary Data):
 63.63% of the times the average cost of the toys are less than Rs.300
CAT I =< Rs. 300,

CAT II = Rs. 300-400,
CAT II = Rs. 400-500,
CAT III = >Rs. 500
Consumption vis-à-vis Price
 71.42% of the toys were physical toys, 28.57% were video games.
 21.42% were Lego toys which reflects pan India data.
 90.90% of these toys were for the purpose of fun and engagement. While only 9.09%
were for learning.
 90.90% children where using these toys for less than 3 hrs.
Millennials’ consumer behavior : An
integrative view
The Millennial traits:
 Natives of digital world, expect nomadic connectivity 24X7

 Experiential learners, multitaskers, gamers
 Mobile, interdependent (networked), global, highly adaptable
 Demanding consumers: expect more selectivity, personalization and
customization in their products and services.
 Quickly bored, impatient, expecting NOW (not 5 minutes from now)
 Look for instant information, instant gratification
The marketer’s job is to help the Millennial
 See the point,

 Understand the facts and
 Facilitate participation using digital media and community networks. (Even
NASA can be followed on Twitter these days!)
 Be in touch, always
Ways to reach millennials
 Participation in viral marketing and peer-to-peer recommendation sites
 Sponsorship or ads in areas of interest to millennials (e.g. extreme

sports, social networking sites)
 Delivery of a great product at a great price
 A focus on millennials' key influencers (e.g. parents, peers)
 Contribution to social causes that millennials support
 Messages to millennials through wireless text messaging
 Contests, promotions, and retail tie-ins
 Online games for company website

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Consumer Behavior of the Millennial

Millennials truly don’t pay very much attention to marketing, despite

Children and Teenagers in Family Purchases

 9.09% of the time a guardian alone is involved in the purchase process.

 Both the parents involved in 27.27% of the time.

It is to be noted that guardians/father/mother of families with salary less than 150000

But following the STP model, we need to find

 Target both the Child and the Parents

CAT I =< Rs. 300,

Consumption vis-à-vis Price

 21.42% were Lego toys which reflects pan India data.

 Natives of digital world, expect nomadic connectivity 24X7

The marketer’s job is to help the Millennial

 See the point,

 Sponsorship or ads in areas of interest to millennials (e.g. extreme

 Delivery of a great product at a great price

 A focus on millennials' key influencers (e.g. parents, peers)

 Contribution to social causes that millennials support

 Messages to millennials through wireless text messaging

 Contests, promotions, and retail tie-ins

 Online games for company website

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