GENERATIONAL SEGMENTATION

Market Segmentation after the digital revolution has been innovative in one aspect and that is GENERATIONAL SEGMENTATION- a concept hitherto almost nonexistent has suddenly become one of the significant demographics. Also, like other segmentation here too the product/ service has to concentrate on two things. 

• Different versions of the product to suit differing generation like NIKE.
• Positioning the same product differently to different generation like AMUL
  

Different versions of the product to suit differing generation like NIKE

Nike had different products for different segment and created specific marketing strategy for each Nike worked on different customer persona and segmented them generation wise. They offered different products tweaks to different segments. This enabled them to position and market them exclusively to the ICP or ideal customer profile. Nike didn’t run after ICP instead created products for each segment, making each set of population an ICP for each of their product offering.

• Generation Z or the digital savvy, social media influenced population aged between 28 to 13 years who would a major customer/consumer of shoes. They are also the most environment conscious segment and so they were offered. NIKE SPACE HIPPIE- shoes made from recycled material empathizing with the sustainability values and launched a app  NIKE SNKRS with AR(augmented reality) to enhance their shopping experience. The marketing and social media campaigns aligned with the Gen-Z most popular influencers and TikTok star.  
• The Millennials aged between 28 to 44 or the digital savvy and health concious segment are also more experience driven rather than material. This is a more socially driven group and so online marketing was the best resort. JORDON, AIR & KILL SERIES- shoes made for light running, comfort and casual wear and launched health focused apps like Nike+ Run Club & Training Club apps with value added workout plans. The marketing and social media campaigns like “equality” tugged the millennial heart strings. 
• Gen- X aged between 45 to 60 are looking for practically suitable and quality purchases. They are influenced by both traditional media and digital media. With close ties to family Gen X prefers deals and often go for tried and tested brands. NIKE AIR ZOOM PEGASUS focuses on durability and family-oriented offers “buy one, get one”. Nike reached out through a multichannel experience with both online and in store experience.
•  Baby Boomers aged between 60 to 80, are value conscious and look for comfort and convenience. They are partial to traditional shopping and instore experience. Their priority is health. Air Monarch shoes as positioned as comfortable, easy-to-wear footwear. With retail and traditional marketing channels, Nike, created a healthy and active aging image powered by initiatives like Nike walk etc. Maintaining a brand with renewed marketing efforts helps attract the Baby Boomers

Positioning the same product differently to different  generation like AMUL

 Amul Butter has an array of products but its product offering has not been tweaked for generations but for different economic or regional segments. They tackled different generational segment by treating it separately and positioning the same product differently 

Baby Boomers aged between 60 to 80, are value conscious and look for  comfort and convenience.  Their priority is health. They trust traditional brand and are partial to nostalgia. Amul focused on its legacy and its long presence in Indian household. The channels like print and TV were used to position its brand as that of traditional and pure butter. Example: “Amul Butter- The taste of Generations. Trusted since 194 

Gen- X aged between 45 to 60 are looking for practical, family oriented  purchases. They value health and nutrition through dietary  and cooking habits. Amul chooses both traditional media and digital media like recipe blogs and facebook along with cooking shows in TV. With close ties to family Gen X prefers family deals and  often go for tried and tested brands. Example: Amul Butter- Perfect for Every Meal. Healthy, Tasty and Wholesome

 The Millennials aged between 28 to 44 or the digital savvy and health conscious segment are also more experimental. This is a more socially driven group and so relate to modern, contemporary image. Amul reaches out to them through online channels like insta, youtube, influencers etc. They offer value through trendy, innovative recipes with fitness benefits. Example: Amul Butter- Your Secret Ingredient for Gourmet Creations 

Generation Z or the digital savvy, social media influenced population aged between 28 to 13 years who empathize with Amul’s iconic mascot, quirky ads and as a undeniable ingredient to tasty snacks Amul butter too segmented but only its positioning and not products- at least not generation wise!

The Different Generations

 TRADITIONALIST ie born before 1946 are the present octogenarians and older. They are conservative and financially cautious. With most of them, no longer in active employment, they tend to be judicious with money  and are the most conscious of inflation. Our Marketing dude understands that they form a smaller segment and prefer traditional and trusted brands and rely more on word-of-mouth rather than advertising. They would most probably go for purely offline shopping and cash pay outs. Their non-negotiable terms would be durability and value for money. 

BABY BOOMERS ie born between 1946-1964, are the 60 to 70 year old segment who are normally the glue holding the family and often are financially stable. Though highly partial to offline shopping, they are increasingly adopting digital modes of payment and even buying. Their non negotiable terms would be quality and  reliability but favour convenience increasingly. Though like TRADITIONALIST, they are influenced with  word of mouth, traditional media. 

GENERATION X ie born between 1965-1980, are the 45 to 60 year old population who are relatively tech savvy and believe in balance in the purchase. They value both quality and affordability. They actually check options between offline and online before deciding. Balance between saving and sustained lifestyle upgrade. EMI purchaser who is open to experimentation. Their non negotiable terms would be Practical and value for money.They are influenced by both digital media and peer opinion. 

MILLENNIALS ie born in 1981-1996 who are around  44 to 29 year old group or the active earning members. They are more tech savvy and aspirational. They spend more on experience or material. They are more experimental and prefer brands that aligns to their value. Their non negotiable terms would be online order and online payment. They are swayed more by social media, and other digital influencers and online reviews 

GENERATION Z born during 1997 to 2012 aged between 28 to 13 are both customers and consumers. They are also the greatest influencers on other generations if not active purchasers. They are digital device reliant and are online shoppers. They are socially conscious and trend driven. Their non-negotiable terms are r seamless online experience like apps both for shopping and payment. They are swayed more by viral trends, influencers and peer recommendation.

 GENERATION ALPHA born after 2013 aged below 12 are more of influencers and indirect consumers. They are still closely connected with parents. They are early digital adopters and prefer interactive products. They are influenced by apps and platforms and are highly influenced by parental guidance.

 Pic curtsey :

 http://www.catalystgetsit.com/wp/generational-marketing/https://www.sprintzeal.com/blog/nike-marketing-strategyhttps://brandequity.economictimes.indiatimes.com/news/advertising/the-amul-ad-aggressive-or-aggrieved/81752820