Browsing: Market Research
Some matters of taste are set in stone. Dogs rule, cats drool. Purple and green should never be seen. But when it comes to what we drink, Kiwis’ tastes change like traffic lights, says the team at Coca-Cola.
Using a groundbreaking New Zealand innovation (Needscope) that matches our choices to emotions rather than fixed demographics, the team at Coca-Cola has discovered what makes us tick when we’re in front of the fridge.
The truth is, we’re a fickle bunch. While water is the drink of choice for many, almost nobody drinks water all the time, no matter how health-conscious they are. “We are hard-wired not to do without,” says Coca-Cola knowledge and insights manager Carl Edkins. “We often don’t want to make compromises.”
Just like some people’s voices change when they pick up the phone or visit their elderly grandmother, different situations and emotions change our taste every moment of every day.
Instead of the traditional marketing demographics, which put us in rigid boxes like ‘household spender aged 25-34’, or ‘male, married with two kids, over 40’, our drinks choices can be roughly divided into six emotion-driven flavours: vibrancy, affiliation, tranquillity, composure, superiority and bravado.
Kiwis make around eight drinks choices a day based on our moods, whether we’re feeling insecure and need to show our superior taste (think a sophisticated drink like a Schweppes tonic water and mixer), or we’re at a beach party and we’re in the moment (something fizzy, fruity and calories be damned). The next morning, we may well be reaching for that soothing glass of water, as the guilt hits.
“You need to have an option available for each one of these needs when you walk into a store,” Edkins says.
And our options are set to expand. While Kiwis are spoilt for choice when it comes to drinks that tempt our risk-taking love of adventure (our bravado emotion), such as energy drinks, sports drinks and bottled water for hardcore fitness enthusiasts, we’re behind the Aussies when it comes to drinks that show our superior discernment.
As our population boom opens the door to niche products – and as more of us leave the age of mountain-running on weekends – Edkins says New Zealanders can expect more exotic choices that set us apart from the usual soft-drink crowd. In the future, we’ll be choosing more natural ingredients like stevia, or anything that screams ‘individual’.
Think iced coffee with the latest miracle spice or goats’ milk infused with wild orchid – although on a hot day, of course, nothing’s going to beat an ice-cold Coke.
The Six Taste Moods
- Vibrancy – That feeling of being alive. It’s tangy, it’s fizzy. It has an umbrella in it. Drink match – sparkling white sangria.
- Affiliation – Feeling part of a group. It’s what everyone else is drinking. Drink match – Coke, beer.
- Tranquility – Relaxation time. It’s like a hug in a mug. Drink match – herbal tea, hot chocolate.
- Composure – When you want to be in control of your emotions. It’s good for you. Drink match – water.
- Superiority – You want something that makes you feel like a boss. It’s an acquired taste. Drink match – elderflower and cucumber, Campari and soda.
- Bravado – Wahoooooooooo!! A bottle could power a small mountain kingdom. Drink match – Powerade, Demon Energy
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If your Millennial offspring have stayed living at home pleading poverty, yet waste what ‘little’ they have on copious takeaway flat whites and smashed avocado, are you forgiven for being miffed? Kiwi consumer spending specialist Marketview managing director Stephen Bridle says yeah, nuh, maybe.
Millennial consumers in New Zealand have been labelled as big spenders, wasting their money on smashed avocado and takeaway coffee. And there’s more than a bit of truth to the epitaph.
In a report analysing spending behaviour by consumers aged 25-29, Marketview found that over the past eight years, these consumers have increased their spending by 56%, outstripping their growth in population.
Much of Millennial’s spending growth is due to a growing interest in eating out… whether it be cafes, restaurants, bars or fast food, Millennials really are dining out much more than previous generations.
With their preoccupation with convenience, takeaways are an increasingly popular purchase for this age group – our spending figures revealed that in 2017, Millennials spent more on takeaways than they did at clothing, footwear, health, beauty, pharmacy and cosmetic stores combined.
We also identified that Millennials have a strong preference for online shopping, with spending growth for nearly all online categories outstripping their bricks and mortar equivalents.
Figures show that since 2009, these consumers have more than tripled the amount they spend online, now allocating 10% of their spending budgets to online purchases. Popular online categories for Millennials are fashion, accommodation and, increasingly, groceries and food, encouraged by convenience and growing availability.
While many industries both on and offline are benefitting from Millennial money, figures from Marketview identified an emerging trend with potential to impact the wider retail landscape… younger consumers are increasingly spending their money outside the central cities.
In the past eight years, spending by Millennials in non-metro areas increased by more than 50%, while the CBDs of Auckland, Wellington and Christchurch combined only saw a 14% increase in spending from these consumers.
As young people increasingly turn to online options for their everyday shopping needs, the concept of the CBD and ‘High Street’ is becoming somewhat redundant, at least to Millennials. As they no longer need to head out to the shops in the city every weekend, Millennials are breathing life back into the ‘local village’, bringing business back to their communities as they go out for coffee, drinks and dinner in their local neighbourhoods – a phenomenon we are only seeing increase as this group grows.
Millennials are not to be underestimated in their spending power and ability to alter the retail environment. Retailers need to pay attention to the preferences and spending patterns of this generation if they want to profit from what is a highly valuable group of consumers, and not be left behind.