Posts Tagged ‘Recession’

Built to Last – Marketing lessons from the turn of an odometer

May 4, 2010 8:55 am by Jon Berry

By Jon Berry

What do you get for a car that’s gone the extra mile for you? How about a trip to the car wash and replacing its missing hub cap?

Last week our 1998 Toyota Camry turned 175,000 miles. Fittingly the milestone came on a trip to the grocery store. While this mild-mannered sedan no doubt has daydreamed of lighting out for the frontier for a Blue Highways adventure, its reality has been more George Bailey than William Least Heat Moon.

 (If Pixar ever creates a car version of It’s a Wonderful Life, George Bailey, the hero who never left home, will probably be a Camry.)

There have been a lot of trips to the store in this car. And commutes to work. Drives to school. And to the movies. The odometer may evoke adventure – 175,000 miles is equal to 60 drives across the country. But the furthest West this car has been is trips to my parents’ farm in Indiana.

This has been a family car. It’s been through two kids growing up and going off into the world; two dogs (note the chew marks on the rear-seat seatbelts); family vacations to the beach (sand in the trunk); Christmas trees (pine needles); and trips to college (amazing how much can be crammed into defined spaces).

And it’s done so with minimal repairs – a record that, with all the costs of raising kids, I will be forever grateful for. Which is one reason that, even as the Camry’s sidled into being our second car, driven only a few times a week, I’d have a hard time giving it up.  
 
I bring all this up because I think I’m not alone. It’s not just cars – though my informal research, asking for a show of hands at speaking engagements for those whose cars have gone past the 100k mark suggests quite a few folks are in that category. All things “vintage” are being prized more these days, from clothes, to music, home décor, and recipes.
 
Staying power is having a star moment. Six in 10 Americans tell GfK Roper Reports® they strongly agree that they buy things that are “built to last.” That’s more than the proportion who tell us they’re “comparing prices and looking for the best price” on everything they buy. And agreement has risen since the start of the recession. Timelessness has become a theme among consumers across the world as well – and marketers have been responding.
 
I don’t think it’s simply nostalgia. There’s renewed appreciation of day-in, day-out, value-for-the-dollar quality – a value those who grew up in the Depression carried with them, and that, until recently, seemed lost on younger generations. As recession-singed consumers reenter the market, businesses should remind them that buying products built for the long haul will save them money they can spend on other things – even if it costs them a bit more now.
 
Camrys may not be cool in the way that the round-shouldered Chevys and sharp-finned Caddies of the 1950s and 60s were. But there is something innovative in them that I’d forgotten about until that magical rolling-over of the odometer knocked loose the memory of my then teen-aged son’s rationale for buying the car: “It’s the low-end Lexus.”
 
That quality of delivering luxury-car quiet, ride, and reliability at a middle-class price was part of a larger wave of innovation in marketing in its day that brought gourmet-quality food (Trader Joe’s, Starbucks), furniture (Ikea), investments (Fidelity, Vanguard), even running shoes (Nike’s “Bowerman” line) to broader audiences. In their way, they were as innovative as the first Fords, the first Chevys, or the first Apples. They’re worth studying for the lessons they offer us now. 

We still have a ways to go to catch up with the Depression generation. I am reminded of this every time I travel out to Indiana to visit my Dad, go into my Dad’s barn, and see his two tractors – a shiny red 1940s International Harvester and his “newer” model, a shiny blue early-1960s Ford. Add one more reason to hang onto the 175,000-mile Camry – to see how its story turns out.

Talkin’ ‘bout my generation

February 22, 2010 1:39 pm by DavidCrosbie

David Crosbie (29) never identified himself with a ‘generation’, until now. What could have brought about this revelation?

By David Crosbie

Generational marketing has a long history in the US, but is not so prevalent in the UK, or indeed many other markets around the world. Instead, over here people tend to talk about age bands and socio-economic groups, with phrases such as “25-34 year old ABC1s” being bandied around by media sellers and marketers.

One reason for this is that Britain is still a class-obsessed society. As a Russian colleague once said to me when discussing social classifications, “in Russia we do not have anything like your Cockneys.” Another might be that, on the whole, Brits tend not to think about themselves as part of a cohort group born around the same time. I myself might occasionally muse that I am a ‘child of the Eighties’, or one of ‘Thatcher’s children’, but even that is only to excuse my penchant for the Human League and Eurythmics.

All that changed the other week, however, when I picked up a Sunday supplement (The Observer Magazine, 31 January 2010) and was confronted by a contemporary of mine claiming that he (and by inference me) was part of ‘The Lost Generation’. He argued that it is today’s twentysomethings who are paying the price for the excesses of the baby boom generation, with its free higher education, affordable housing and abundance of cheap credit. We, by contrast, have to contend with thousands of pounds of student debt, saving for deposits on extortionately priced housing and the mess that ensued when the credit bubble burst.

I have to say this is a view that resonated with me. At a time in my life when I should be thinking about going forth and multiplying, I’m worrying about student loan repayments, how to get on the housing ladder and how best to care for elderly relatives. These are of course all concerns that are shared with many consumers around the globe. But is it just a case of sour grapes on the part of a generation that is in fact not that badly off but likes a good moan?

Well interestingly, it’s not just people in their late twenties who are coming to recognise this issue. A leading light in the UK Conservative Party, which is widely tipped to win the country’s imminent elections, has just written a book entitled The Pinch, which explains how, “the baby boomers took their children’s future.” As well as being a baby boomer himself, the author, David Willetts, is viewed as being such a great thinker that he has earned the soubriquet, “Two Brains”.

At GfK Roper Consulting, we examine closely how evolving consumer concerns and needs manifest themselves in changing attitudes and behaviours, and generational and cohort breakdowns by market are key filters for our analyses. A major client study on global baby boomers we carried out last year shed new light on how this generation will differ from today’s over 65s as they enter retirement. I for one will be examining this year’s data carefully to see how my contemporaries around the world are feeling about the challenges we face. If only my question on attitudes to Eighties synth pop had made the final questionnaire…

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