Marketing Ideas to Reach the Next Generation
Bridget K. Behe, Ph.D., Professor Dept. of Horticulture, Michigan State University Mr. Will Carlson, Jr., President Flower PR
PETER DRUCKER ON DEMOGRAPHICS
! “Managers
have known for a long time that demographics matter, but they have always believed that population statistics change slowly. In this century, however, they don’t. Indeed, the innovation opportunities made possible by changes in the numbers of people – and in their age distribution, education, occupations, and geographic location - are among the most rewarding and least risky of entrepreneurial pursuits.”
Peter F. Drucker, 2002, “The Discipline of Innovation,” Harvard Business Review (Aug):95-102.
CHANGES IN AGE
40 35 30
Percent of population
25 20 15 10 5 0 2000 2010 2020 2030 2040
Under 19 20-44 45-64 65-84
Source: U.S. Census Bureau, 2004, “U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin” http://www.census.gov/ipc/www/usinterimproj/<
MICHIGAN STATE RESEARCH
! Surveyed
1600 persons about garden participation, purchases. ! The sample was drawn to be representative of the U.S. population on average. ! Worked with Knowledge Networks, a CA-based survey firm that works with Harvard, Stanford, and CBS News. ! Asked questions about gardening participation (14 items) and purchases (12 items).
TAKE HOME MESSAGES
! 45
to 59 year-olds are the big purchasers of annuals; 18 to 29 year-olds are not. ! Herbs and vegetables go primarily to the 60+ segment. ! At income > $75,000, only 3 of 16 activity differences and 2 of 12 purchases.
Dennis, J.H. and B.K. Behe. 2007. Evaluating the Role of Ethnicity and Age on Gardening Purchases and Satisfaction. HortScience. 42(2):262-266.
Percent Purchasing
Income $25K to $50K
90 80 70 60 50 40 30 20 10 0 Annuals and perennials 18-29 30-44 45-59 60+ 64 60.3 65.8 83.8
Percent Participating
Income $50K to $75K
64.4 80 70 60 50 40 30 20 10 0 Annuals and perennials 31.2 18-29 30-44 45-59 60+ 60.6
67.2
Percent Purchasing
Income !$75K
79.4 63.3 69.2 80 70 60 50 40 30 20 10 0 Annuals and perennials 12.5 18-29 30-44 45-59 60+
! How
can you connect with younger customers, while preserving your current customer base? ! How do you get them in the store, then once there, get them to purchase your products? ! How do you build relevance to gardeners of all ages??
A DIFFERENT VOCABULARY: DIRECT GARDENING BENEFITS
- a way to decorate their home !#2 - food gardening is a way to grow nutritious food !#3 – a way to relax
!#1
Source: Grower Talks June, 2006, 70(2):56 from National Gardening Association “What Gardeners Think”
MARKETING TERMS
! We
need to rewrite the script for gardening (tell the story using different words). ! We need to use terms that resonate better with Generation X. ! Market experiences to them like decorating, relaxing, entertaining, beautifying, exercising, connecting with family and friends. ! Make them See RED: Relax, Entertain, Decorate
GET THEM TO SEE RED
!#3
– a way to relax !#2 - food gardening is a way to grow nutritious food (eat and entertain) !#1 - a way to decorate their home
Products you need to
Great Displays Demonstrate Use!
OBJECTIVE
! How
do consumers who search for gardeningrelated information on-line differ from others who search for information on-line? ! How do consumers who make gardeningrelated purchases on-line differ from customers who make them in person? Our objective was to profile the demographic characteristics of individuals who search for information or made gardening-related purchases on-line.
MATERIALS AND METHODS
Internet survey conducted in September, 2004, by Knowledge Networks (CA). Computer and Internet were provided free of charge if unavailable to the participant. ! Sample was drawn as representative of the U.S., over-sampling (to make statistical comparisons) for three ethnic groups: African-Americans, Hispanics, and Asians. ! Total of 1610 responses were collected, 1588 were useful.
!
RESULTS
!
General Internet search
88.7% of the sample had searched for some kind of information on-line in the year prior to the survey. ! Average number of searches = 3.7 ! 50.2% searched weekly ! 17.8% searched daily
!
!
General Internet search comparisons
Caucasian, young, single respondents from upper-incomes (> $100K) searched more often ! No differences by gender or region of residence
!
RESULTS
!
Gardening-related searches
!
27.4% of the sample searched for gardening-related information at least once in the year prior to the survey
!
Gardening-related search comparisons
79.6% of respondents with a detached residence searched compared to 20.4% attached residence. ! More moderate income ($25K-$49K) households (32.4%) searched for info compared to higher income households ($50K-$74K at 27.6% and >$75K at 17.6%). ! Few (16.3%) young (ages 18-29) and older (>60 at 18.3%) participants searched compared to respondents ages 30-44 (34.6%) and 45-59 (30.8%).
!
RESULTS
!
Gardening-related search comparisons
Married respondents (61.8%) were more likely to search compared to singles (22.9%). ! More homeowners (71.7%) searched than renters (24.2%). ! No difference by region of residence, work status (working or retired) or gender.
!
RESULTS
!
General Internet purchases ! 49.4% made some type of purchase on-line in the year prior to the survey. ! More upper income (>$100K) households made on-line purchases (27.8%) compared to 16.1% of households < $25K. ! A higher percentage of Southern residents (33.2%) made on-line purchases compared to the Midwest (15.3%), Northeast (20.2%) and West (31.0%).
RESULTS
!
General Internet purchases, continued
More 30-44 year-olds made purchases (37.1%) compared to 18-29 (24.1%), 45-59 (26.3%) and >60 (12.6%). ! More Caucasian respondents (55.0%) made on-line purchases compared to African Americans (12.9%), Hispanics (14.0%) and Asians (18.1%). ! There was no difference by gender.
!
RESULTS
!
Garden-related Internet purchases
53% of the participants made a purchase in-person and 7.4% made one on-line. ! The average number of in-person purchases was 3.7; the average number of on-line purchases was 0.40. ! 1 respondent made a purchase exclusively on-line.
!
!
Garden-related Internet purchase comparisons
There were no significant differences in age, education, ethnicity, gender, homeownership, income, region of residence, or work status (working or retired). ! Demographically, gardeners who made on-line purchases were similar to the people who made them in person.
!
RESULTS AND DISCUSSION
!
Gardening items purchased on-line included
! ! ! ! ! ! ! ! ! ! ! !
2.5% purchased annual or perennial plants 1.5% purchased a tree or shrub 0.8% purchased an herb or vegetable 2.2% purchased bulbs 2.2% purchased seeds 0.6% purchased a composter or compost items 0.3% purchased fertilizer 1.4% purchased a non-motorized tool 0.9% purchased a motorized tool 0.7% purchased weed control 0.7% purchased garden furniture 0.7% purchased garden art
CONCLUSIONS
Most Americans have searched for some information on-line, but 1 in 4 has searched for garden-related information. ! Those who searched for garden-related information were similar to gardeners in that they were more often Caucasian homeowners, with a high level of education and live in a detached residence. ! However, they were different from average gardeners in that there was an equal mix of men and women, from a moderate household income ($25K to $49K) and from a slightly younger age group (30-44 years old).
!
CONCLUSIONS
!
! ! ! !
While 49.4% of the sample had made an Internet purchase, only 7.4% made a garden-related purchase online (53% made one in person). Demographically, on-line gardening purchasers were similar to in-person gardening purchasers. Only one respondent in the sample made a gardenrelated purchase exclusively on-line. It appears that on-line purchases supplement in-person purchases, so it is another ‘window of opportunity”. Plant items accounted for a higher percentage of the number of on-line purchases (not necessarily dollar value) than non-plant items.
RESULTS INTO PRACTICE
On-line search for information and purchases of products is likely to continue to increase. ! Horticultural businesses should give strong consideration to developing an on-line presence, primarily to communicate information. ! They may reach a slightly younger target market, once which doesn’t garden to the extent that slightly older people do. ! Information can be links to other sites. ! Purchases are more complicated, but worth considering for future business development.
!
CONTACT INFORMATION
! Bridget
Behe ! behe@anr.msu.edu ! 517-355-5191 x 1346 ! Will Carlson, Jr. ! will@flowerpr.com ! 989-834-1563