Recently Tom Friedman wrote an article in the NY Times
(11/5/14) entitled "The World is Fast," referring to the 3 biggest
forces on the planet and how they present enormous challenges: (1) the
geo-economical impact of globalization, (2) the ecological disasters looming
from mother nature (e.g. rapid growth of carbons), and (3) the mind boggling
digital changes from Moore's Law, which alludes to the speed and power of
microchips that double every two years. These are global dynamics, but they
also have an impact on some noteworthy local trends that can offer unique
opportunities for companies to enrich their brand image and accelerate future
growth:
1. MILLENNIALS - this Generation Y (born 1980-1995) is 86
million strong and will dominate the workforce in 10 years - 75% of the total.
They grew up in the digital age and have very different values and expectations
that will shape our approach to social challenges, employment preferences and
purchase behavior.
• Millennials identify with brands more personally and
emotionally versus older generations, preferring brands that mirror who they
are and their values (59% say the brands they buy reflect their style and
personality) - source: Boston Consulting Group 2013 survey.
• One of their most important values is social
responsibility. In particular 48% report that they try to use brands from
companies that are active in supporting social causes (BCG survey).
• A 2011 study by TBWA indicates that these views will
clearly impact their purchase motivation and corporate brand perceptions - 7 in
10 Millennials consider themselves social activists, 4 in 5 said they would be
more likely to buy from a company that supports a cause they care about, and 3
in 4 believe that companies should create economic value for society by addressing
its needs.
2. SOCIAL PURPOSE - there is a significant, growing demand
worldwide for companies to become more socially responsible, which is clear
from the "Good Purpose 2013" study by Edelman Research. While this
was a global study, the results were consistent for the US, with Millennials
feeling even more strongly about these issues:
• 87% of consumers believe business needs to place at least
equal weight on society's interests as its business interests (e.g. maximize
shareholder wealth).
• 76% believe it is acceptable for brands to support good
causes and make money at the same time (a 33% increase from 2008).
• 72% would recommend a brand that supports a good cause
over one that doesn't (39% increase since 2008).
At the same time, there is a serious gap between what
consumers want and what brands deliver for social purpose, which suggests a
strong opportunity to distinguish brands in the future:
• Consumers say 76% of brands have a self-centered desire to
increase profits, but only 36% feel they have a sincere commitment to their
customers' support for social causes.
• 52% of customers feel it is important for companies to use
their resources to drive change in the world, but only 15% say
corporations/brands really do this.
3. MILLENNIALS DRIVING STARTUPS - Small businesses (under
500 employees) represent the major source of job creation in the U.S. (by
almost 2/3) and contribute more to innovation, as they generate 13 times as
many patents, per employee, as large companies do. Driving this growth in jobs
and innovation is this Generation Y group. They are very restless. A study by
Forbes in 2014 indicated that 1/3 of all people in their 20's will move in any
given year, the average Millennial will stay in their job just over 2 years,
and about two thirds of them would like to start their own company. Another
poll indicated that one in five Millennials plan to quit their day job to start
their own business. Why? The values of Millennials are very different. They
seek happiness, simplicity, adventure, self-satisfaction and social purpose
over corporate-ladder climbing practices traditionally tied to success. And
over half don't trust Government and even less trust Wall Street.
What does all this mean for strengthening corporate brand
images in the future? The size, values and overall importance of this emerging
Generation Y group cannot be ignored. They are the trend setters for the
future. This growing impact presents a unique opportunity for brands to develop
new, credible social purpose initiatives that will attract Millennials to new
jobs, buy their products/services, increase their full engagement and encourage
brand loyalty. Small business startups managed by Millennials will fuel much of
future economic growth. The time is ripe for brands that want to stand out and
grow, to capitalize on these dramatic trends of Millennial's emerging
empowerment, their desires for social purpose and their potential for positive
innovative change.
Article Source: http://EzineArticles.com/?expert=Jay_K_Gronlund
Article Source: http://EzineArticles.com/8822842
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