Understanding our young, idealistic, pro-African go-getting generation. By 2030, Gen Zers will be the world’s largest consumer base. Are African marketers ready for a dominant new group with unique characteristics? By Cara Bouwer. As consumers, gen z (those born between 1996 and 2012) and the older Millennia’s (born between 1981 and 1996) “often put their wallets where their values are, stopping or initiating relationships based on how companies treat the environment, protect personal data and position themselves on social and political issues”. This is the assessment of the world’s two youngest consumer generations by Deloitte Global, in the 2021 Millennial and Gen Z Survey. Much of what we know about Gen Z has come through reports such as this, which often lump the two generations together. However, as older Gen Zers enter the workforce it is becoming clear that they require a unique marketing touch. Recently, research company Kantar hosted a webinar devoted to Africa’s Gen Z consumer. The insights included reflections on what pushes Gen Z’s buttons, what turns them off, who they are and what they want to be. As with previous generations, Gen Zers want to make an impact and shake things up. The difference is that these digital natives have technology firmly in their corner – and they aren’t afraid to use it. According to Ndeye Diagne, Lagos based MD of Kantar West Africa, Gen Z may still be finding its identity, but already brands are being forced to catch up as they seek to understand these connected “social media beasts” who are tech-optimistic, authentic, self-focused, socially aware, impact seeking, vulnerable, fun-loving and committed to their African identity. While it is easy to get sucked into the ease with which Gen Zers engage with the digital world through preferred platforms such as Instagram, Twitter, Snapchat and TikTok, a focus on values is equally important. Kantar’s Chief Client Officer in Nigeria, Tamara Ojeaga, says Gen Zers share some common values with older generations, such as independence and self-determination, but they spice this up with their innate creativity and innovation, plus a keen desire for authenticity. Babara Omwayi, CEO of Spark Communication, a below-the-line marketing agency based in Nairobi, recounts how she came to realize the Gen Z perspective on life tends to be completely different to her own, as a Millennial (also sometimes known as Generation Y) consumer. During a meal with a young Gen Z male, she was surprised to learn that had invested 600,000 Kenyan Shilling (US$5,000) on buying a motorcycle. “This surprised me because, in my opinion, investing in a parcel of land presents more investment benefits. I can bet you that his father would also ascribe to my school of thought on this matter,” Omwayi wrote in Sokoni, the magazine of the Marketing Society of Kenya. “Out of concern, I asked the lad why he chose to spend such an amount on the particular asset instead of securing his future through land purchase. His response brought to the forefront some fundamental truths about the generation.” Among these “fundamental truths”, Omways says, is that Gen Zers live for the moment, since tomorrow is unknown to them. They attach deep value to things that make them happy and inspire them, such that they do not mind spending money to experience these moments or recreate them. “The inclination towards valuing experiences has gone a long way towards the power and influence they yield in shaping shopping patterns. They are not motivated by money, rather by value.” She adds: “This inclination makes them attach value to what is important to them and influences their shopping patterns, careers and employers. Considering this fact, brands and companies must earn their trust by developing solutions that align with their values.” (Strategic Marketing for Africa, 2022) In line with the above case you are required to; a) Discuss how multi-national companies can effectively gather insights about Gen Z consumer preferences, behaviors and consumption patterns. (10 marks) b) Explain how international marketers can use segmentation to identify niche markets within African Gen Z? (12 marks) c) Discuss the international market trends that are currently influencing the behaviors of African Gen Z consumers. (15 marks) d) Identify the strategies businesses can employ to create authentic and relatable content that resonates with Gen Z consumer values and interests online. ( 13 marks) END
Question
Understanding our young, idealistic, pro-African go-getting generation. By 2030, Gen Zers will be the world’s largest consumer base. Are African marketers ready for a dominant new group with unique characteristics? By Cara Bouwer. As consumers, gen z (those born between 1996 and 2012) and the older Millennia’s (born between 1981 and 1996) “often put their wallets where their values are, stopping or initiating relationships based on how companies treat the environment, protect personal data and position themselves on social and political issues”. This is the assessment of the world’s two youngest consumer generations by Deloitte Global, in the 2021 Millennial and Gen Z Survey. Much of what we know about Gen Z has come through reports such as this, which often lump the two generations together. However, as older Gen Zers enter the workforce it is becoming clear that they require a unique marketing touch. Recently, research company Kantar hosted a webinar devoted to Africa’s Gen Z consumer. The insights included reflections on what pushes Gen Z’s buttons, what turns them off, who they are and what they want to be. As with previous generations, Gen Zers want to make an impact and shake things up. The difference is that these digital natives have technology firmly in their corner – and they aren’t afraid to use it. According to Ndeye Diagne, Lagos based MD of Kantar West Africa, Gen Z may still be finding its identity, but already brands are being forced to catch up as they seek to understand these connected “social media beasts” who are tech-optimistic, authentic, self-focused, socially aware, impact seeking, vulnerable, fun-loving and committed to their African identity. While it is easy to get sucked into the ease with which Gen Zers engage with the digital world through preferred platforms such as Instagram, Twitter, Snapchat and TikTok, a focus on values is equally important. Kantar’s Chief Client Officer in Nigeria, Tamara Ojeaga, says Gen Zers share some common values with older generations, such as independence and self-determination, but they spice this up with their innate creativity and innovation, plus a keen desire for authenticity. Babara Omwayi, CEO of Spark Communication, a below-the-line marketing agency based in Nairobi, recounts how she came to realize the Gen Z perspective on life tends to be completely different to her own, as a Millennial (also sometimes known as Generation Y) consumer. During a meal with a young Gen Z male, she was surprised to learn that had invested 600,000 Kenyan Shilling (US$5,000) on buying a motorcycle. “This surprised me because, in my opinion, investing in a parcel of land presents more investment benefits. I can bet you that his father would also ascribe to my school of thought on this matter,” Omwayi wrote in Sokoni, the magazine of the Marketing Society of Kenya. “Out of concern, I asked the lad why he chose to spend such an amount on the particular asset instead of securing his future through land purchase. His response brought to the forefront some fundamental truths about the generation.” Among these “fundamental truths”, Omways says, is that Gen Zers live for the moment, since tomorrow is unknown to them. They attach deep value to things that make them happy and inspire them, such that they do not mind spending money to experience these moments or recreate them. “The inclination towards valuing experiences has gone a long way towards the power and influence they yield in shaping shopping patterns. They are not motivated by money, rather by value.” She adds: “This inclination makes them attach value to what is important to them and influences their shopping patterns, careers and employers. Considering this fact, brands and companies must earn their trust by developing solutions that align with their values.” (Strategic Marketing for Africa, 2022) In line with the above case you are required to; a) Discuss how multi-national companies can effectively gather insights about Gen Z consumer preferences, behaviors and consumption patterns. (10 marks) b) Explain how international marketers can use segmentation to identify niche markets within African Gen Z? (12 marks) c) Discuss the international market trends that are currently influencing the behaviors of African Gen Z consumers. (15 marks) d) Identify the strategies businesses can employ to create authentic and relatable content that resonates with Gen Z consumer values and interests online. ( 13 marks) END
Solution
a) Multi-national companies can effectively gather insights about Gen Z consumer preferences, behaviors, and consumption patterns through various methods. Firstly, they can use social media analytics to understand the interests, behaviors, and preferences of this generation. This can be done by analyzing the content they engage with, the influencers they follow, and the discussions they participate in. Secondly, companies can conduct surveys and focus groups to gather direct feedback from Gen Z consumers. This can provide valuable insights into their attitudes, beliefs, and consumption habits. Thirdly, companies can use data analytics tools to analyze consumer data and identify patterns and trends. This can help companies understand the purchasing behavior of Gen Z consumers and tailor their marketing strategies accordingly.
b) International marketers can use segmentation to identify niche markets within African Gen Z by dividing the market based on various factors such as interests, behaviors, values, and demographics. For instance, they can segment the market based on interests such as music, fashion, technology, and sports. They can also segment the market based on behaviors such as online shopping habits, social media usage, and brand loyalty. Additionally, they can segment the market based on values such as environmental consciousness, social justice, and authenticity. Lastly, they can segment the market based on demographics such as age, gender, location, and income. By identifying these niche markets, marketers can develop targeted marketing strategies that resonate with specific segments of the African Gen Z population.
c) Several international market trends are currently influencing the behaviors of African Gen Z consumers. Firstly, the rise of digital technology and social media has significantly influenced their consumption habits. They are more likely to shop online, engage with brands on social media, and be influenced by online reviews and influencers. Secondly, the growing awareness of environmental and social issues has led to a demand for sustainable and ethical products. Gen Z consumers are more likely to support brands that align with their values and contribute to social and environmental causes. Thirdly, the trend towards personalization and customization is also influencing their behaviors. Gen Z consumers value products and services that can be tailored to their individual preferences and needs.
d) Businesses can employ several strategies to create authentic and relatable content that resonates with Gen Z consumer values and interests online. Firstly, they can collaborate with influencers who share the same values and interests as Gen Z consumers. This can help businesses create content that is authentic and relatable. Secondly, businesses can use storytelling to convey their brand values and mission. This can help them connect with Gen Z consumers on a deeper level. Thirdly, businesses can engage with Gen Z consumers on social media by responding to comments, sharing user-generated content, and participating in relevant discussions. This can help businesses build a strong online community and foster a sense of belonging among Gen Z consumers. Lastly, businesses can use data analytics to understand the preferences and interests of Gen Z consumers and create content that caters to these preferences and interests.
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