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VOLUME 26

Moms and Families

Promotion Winners

Feature Story

Ten Youth Trends That are Changing the Face of Food and Beverage Marketing

WonderGroup spent a busy 2003 observing consumers in all sorts of environments. Combining these insights with many other factors, we have a list of 10 youth trends to watch for, as well as important questions you need to ask yourself to determine how they may impact your business.

Trend #10: New Parents

The generation shift of parents from Baby Boomers to Gen Xers continues, with a majority of children 10 and under being raised by Gen X parents. They seek family unity to help balance their still-busy lifestyles. To moms, knowing and providing their kids what they like is important.

Where does your brand stand?

Is your brand positioned for this “new school” of parents?
Does your product offer something for the whole family, like quality time or educational value?

Trend #9: Kids are Shopping

More and more kids and tweens are involved in “in-store” purchase decisions. In fact, 16% of tweens do their family’s shopping list. According to a WonderGroup/KidzEyes study in September 2003, 66% of tweens shop at a food store at least once a week. Also, 52% of kids aged 6-17 reported asking their parents to “buy me lots of things I see” in TV commercials (Yankelovich Youth Monitor).

Where does your brand stand?

How does your brand stack up at point-of-sale?
Does your package provide in-store cues for kids that will help cement a purchase?

Trend #8: Kids are Cooking

Kids and tweens are preparing food at all different meal occasions, including 89% of tweens who make their own snacks and 76% who make their own breakfast at least once a week (WonderGroup/KidzEyes, September 2003). They use a variety of appliances to prepare food, including microwaves (98%), stove tops (60%), toaster ovens (45%) and ovens (43%) according to KidzEyes Research, January 2003.

Where does your brand stand?

Can your product be prepared easily by its intended target?
Do you illustrate cooking instructions in an appropriate manner for kids and tweens?

Trend #7: Moveable Feasting

Kids, tweens and teens continue to multitask, often snacking while they do so. In fact, over a quarter of kids aged 2-18 watch TV while snacking, and another quarter are doing something around the house, such as homework or computer games (Snacking in America Report, The NPD Group). From tubes to cereal bars to special containers for salty snacks and candy, the youth segment has grown accustomed to this style of eating, with portability always being an option for their foods.

Where does your brand stand?

What even makes a food portable?
What new food form or packaging innovation could make your product an “anywhere, anytime” eating experience?

Trend #6: My Way or the Highway

Kids today expect to be able to make things their own. From communicating and consuming media through personal portals like Instant Messaging and iPods to special sprinkles in their frozen entrée, kids want control over the products in their life. If they don’t get exactly what they want, they still want ways to modify it to meet their tastes.

Where does your brand stand?

Does your brand provide a sense of ownership to kids?
How is a child able to express him/herself through your product?

Trend #5: Back to Nature

Natural-product sales rose 6.6% in 2002 to $36.4 billion, with 77% of the sales coming from natural retailing and mass market channels. Natural products are becoming more mainstream, with an underlying halo of quality providing a positive benefit to consumers who may not have purchased natural products previously. As natural foods become more prominent, offerings targeting kids will continue to emerge.

Where does your brand stand?

Can you deliver a natural product that still meets the first hurdle of kids—taste?
Can a natural version of your brand co-exist with your standard product line?

Trend #4: Emergence of the Girl

The old expression that “boys will be boys, girls will be either” no longer rings true. The continued growth of strong female role models, such as athletes and entertainers, has helped nourish a youth segment where boys and girls are equal, but different. Both genders have realized this, meaning girls want to see female characters as leads, like Lizzie McGuire or Kim Possible. Boys are open to this as well, as long as their needs and tastes are met by supporting characters.

Where does your brand stand?

Should your brand offer a girls-only product?
How can you appeal to each gender specifically within the same communication strategy?

Trend #3: The Unmelting Pot

An American society where traditions of other cultures are assimilated into one grand culture is no longer the case. As the minority population continues to grow, particularly among Hispanics, the traditions and customs they brought with them become more and more prevalent among mainstream America. Kids today are being exposed to more ethnic and cultural influences than at any other time.

Where does your brand stand?

How can food innovators use ethnic foods as inspiration?
Does your brand portray itself in a “multicultural” way?

Trend #2: The Need for News

With more products vying for kids’ attention everyday, their consideration set has become very busy and cluttered. Promotions and new-product offerings catch their interest, particularly when they are communicated in a compelling and interesting piece of advertising. A special offer or limited-edition flavor is often the tie-breaker when kids and moms determine which brand ends up in the cart. Developing the reputation as a brand that continues to offer fun, new offerings or promotions with a young consumer is an important building block for continued brand growth.

Where does your brand stand?

What can your brand do to separate itself from the cluttered pack?
What differentiating benefits are truly relevant and important to kids?

Trend #1: Fat or Fiction?

Fifteen percent of children are considered overweight, compared to 11% less than 10 years ago. While food marketers are often targeted for much of the blame, there are other factors, particularly activity level among youth, which impact this issue. In a recent WonderGroup study, 59% of tweens agreed that they should exercise more, 51% are worried about being overweight and 38% agree that they should lose weight. These numbers show that perception is reality.

Where does your brand stand?

How can you address this issue, turning a possible weakness into an important strength?
Does “junk food” still have a place in the hearts and stomachs of consumers?

Kids

What Will Your Consumers of Tomorrow Be Called?

The 2003 BabyCenter® Baby Names List was recently released, providing the top names of 2003. For boys, Jacob, Aidan, Ethan, Matthew and Nicholas were tops, while Emily, Emma, Madison, Hannah and Hailey were the top for girls. Overall, traditional names with classical European roots were high among both boys and girls, with parents utilizing spelling variations to show individuality. Now, brand managers can just add the youngest age of their target market to the year 2003, and they’ll know a large number of their future consumers by name.

New Plug-and-Play Gaming Unit Brings Bikini Bottom to Young Gamers

JAKKS Pacific recently launched the new SpongeBob SquarePants TV Game, a plug-and-play gaming unit that contains five unique SpongeBob games in a single joystick that looks like the popular character. All that is required are batteries and a TV set to plug the all-inclusive controller into. With a style resembling original Atari® joysticks, Gen X parents are likely to want to join in on the fun as nostalgia takes them back to the days of Centipede® and Pong®.

Tweens

Three New Lifestyle Brands for Tween Girls Hit the Market

Nickelodeon Consumer Products introduced everGirl last month, a lifestyle brand targeting girls aged 8-14. The brand integrates a website, pop music and a customized line of apparel and accessories exclusively at Kohl’s. T*Neez is a new lifestyle brand from Bandai America, with a younger target of girls aged 6-10. The collection includes bendable figures, vehicles, play sets and handheld toys which come with an address book, calendar or diary function. Wild Planet’s G.L.S. (Girls Living in Style) will offer modern, customizable room accessories for girls.

A More Active Way to Play Video Games

A new video game accessory called Gamebike, originally designed by orthopedic surgeons to make indoor exercise fun, can now be used with any Playstation® console. The device, which sells for $139, allows riders to control games with a bicycle mounted on an indoor trainer. The speed and direction of the race car or motorcycle is controlled by the player on the bike. After a quick setup, games using race cars, speed boats, motorcycles and more can be converted into a truly interactive activity.

Dole Nutrition Institute Survey Reveals Children’s Perceptions on Nutrition, Snacking

A recent classroom study of 6,232 children in grades 1-8 revealed that a majority do understand the basics of good nutrition. Ninety-four percent of children know that eating at least 5 fruits or vegetables per day is necessary for proper nutrition. Also, 67% correctly stated that orange juice has more vitamin C than milk.

The kids also understood that snacking itself is not always bad, with girls tending to recognize more than boys that there are healthy snacks. Seventy-eight percent of girls said that snacking on fruits and vegetables is a good habit, compared to 68% of boys. Eleven percent of boys said that snacking makes you fat, and 10% felt snacking was bad for kids because they always eat the wrong foods.

Teens

New Method of Internet Usage, Weblog/Blog, Particularly Popular Among Teens

It used to take a professional locksmith to get into the journal of teenage girls. Now, anyone with Internet access can do so. Online diaries, called weblogs or blogs—accessible to anyone—are becoming increasingly popular, according to a recent survey by Perseus Development Company. By the end of the year, nearly 10 million will exist, with teens having created more than half of these blogs. A number of Weblog hosting services provide users the opportunity to start and maintain an online journal, with users tending to be female.

Coca-Cola Creates Special Space for Teens in Malls

The Coca-Cola Company and Westfield Corporation Inc. have teamed up to develop Coca-Cola Red Lounges in two malls—one in Chicago and one in Los Angeles. The lounges feature custom-built furniture, a media wall with plasma screens and glass-front vending machines featuring Coke products. Set up as experiential spaces for teens to hang out with friends and learn about new movies, music and games, Coca-Cola Red Lounge will feature programming developed specifically for teens from FUSE, G4, Sony, ESPN Video Games and Twentieth Century Fox.

Real Access on The N is First Audience-Driven Celebrity News Show for Teens

Real Access, a new program on The N, has been giving teens and those that market to them a chance to know which celebrities and entertainers will be hot in 2004. The 13-episode series airs on Friday, Saturday and Sunday nights at 9:00 p.m. and 11:00 p.m. and features themed episodes about topics such as Fashion Trendsetters, Young Hollywood Humanitarians and Foreign Invasion. The premiere episode included the Hot 24 in 2004, including such new names to watch as Ashton Kutcher, Beyoncé, Mandy Moore and Frankie Muniz.

Moms and Families

Working Women Apply Workplace Philosophy to Home Life

The first-ever State of the Home survey from Whirlpool® Home Appliances gained the opinions of 1,000 women on how things get done around the home. With 95% of moms delegating household tasks and assigning responsibility, Whirlpool developed the title of CHO (Chief Home Officer) for these moms. In fact, 40% say they run their home like a business, with more than half (58%) keeping to-do lists at home for themselves. The tasks most often delegated to other family members include cleaning bathrooms (65%), doing dishes (62%), vacuuming (61%) and putting away groceries (57%).

Parents See Prepaid Cash Cards and Wireless as Ways to Teach Teens Money Management

The sixth annual Coinstar National Currency Poll recently revealed some preliminary trends of parents using prepaid devices, such as cash cards and wireless plans, to teach their children, particularly teens, more fiscal responsibility. In fact, 19% of those parents whose children have a cell phone plan to convert to a pay-as-you-go prepaid plan. Thirty two percent of parents said they have used prepaid cash cards for purchases, with 34% citing spending control as a reason why. Additionally, 19% felt prepaid cards were good for teens/kids.

Promotion Winners

Youth University Announces Winners of Its Sign Up a Friend Promotion

Youth University is happy to announce that Terri Connolly of Celebrity Cruises and Mike Belknap of International Multifoods are the winners of our Sign Up a Friend Promotion. Congratulations, Terri and Mike; you’ll be receiving your youth marketing libraries soon. We’d like to thank everyone who entered, and encourage all of our readers to spread the word about Youth University.

Youth University is brought to you free each month by WonderGroup.

We hope you find Youth University valuable and helpful. WonderGroup, a 360º youth marketing agency provides services including: Advertising, New Product Development, Research and Promotions. You can learn more about WonderGroup at www.wondergroup.com or by calling Greg Livingston, theshadow@wondergroup.com, at (513) 357-2950.

VOLUME 26

Table of Contents

See you next month!