Question

Several companies have done a poor monitoring of the social aspects of the external environment. This meant that their strategies did not fit the needs of the market, and hence they failed. This is most noticeable among firms who market to Generation Y. This target group consists of customers who range in age from 5 to 20. Dubbed Gen Y" this cohort presented a big challenge to marketers such as Levi Strauss, Nike and Pepsi because of their unique tastes and perceptions of product quality and advertising themes.

Companies that succeeded in reaching Generation Y customers accurately sensed the unique needs of this market. For example, Lee Apparel (a competitor of Levi Strauss) introduced a special line of oversized, multipocketed pants aimed at 10-14 year old boys. This unique product was marketed on the internet, outdoor posters, and skateboard magazines. By carefully customizing their marketing, successful companies (such as Coca-Cola, Tommy Hilfiger, and Motorola) penetrated a market which was seen as impregnable by others.

While it is difficult to accurately forecast social changes, how can firms best factor these changes into their strategies in order to be successful?

Answer 1

The social changes happen very quickly and depend on many factors, particularly when the target audience is on a critical juncture of their lives where they start becoming boys and girls out of kids. Coming to terms with physical and psychological changes, their preferences change with the way they speak, behave, eat, socialise and spend time together. This age, being the most impressionable time of the life, one is deeply influenced by players, actors, drama characters, public figures and so on, to such an extent that he / she can make purchase decisions in their influence without a second thought.

Wise companies study these ideas, characters and other factors that influence their target audience critically and come up with themes that relate their products with this unique thought process,. Once this connect establishes, it can make even a mediocre product a superhit among the target group. There are numerous such examples where characters like pokemon and spiderman have contributed hugely towards the sale of branded merchandise and related products.