© 2013 The Futures Company | 1 NOTE: This document is hyperlinked to allow for interactive navigation of the content. For the full functionality of this.

© 2013 The Futures Company | 1

NOTE: This document is hyperlinked to allow for interactive navigation of the content. For the full functionality of this document, ensure you are connected to the Internet and viewing in slide show mode (in PowerPoint). If you opt to print this document, we recommend selecting full Black & White mode for printing to save ink. *All data are from the 2013 U.S. Yankelovich MONITOR unless otherwise indicated

CoreValues

Challenges Multicultural Millennials

Now What?

What’s Changing?

QuickFacts

Brands &Marketing

Quotesof Note

OtherResources

Downloadin One

MILLENNIALS

© 2013 The Futures Company | 2

QuickFacts

An assortment of facts and figures providing a quick view of the Millennials

Also known as: Generation Y, Echo Boomers, Generation Next, Boomerang Generation, Peter Pan Generation

Born between 1979 and 1996; ages 18-36 in 2015 32% of the U.S. adult population 42% are married or part of an unmarried couple living together; 55% have

never been married 36% are parents (compared to 78% of Xers, 79% of Boomers) Though they’re the last majority non-Hispanic white generation, 41% of

Millennials are Hispanic, African-American, or Asian-American 61% are head of the household; 34% are a child in the household 7.5% of 25- to 34-year-olds were unemployed as of February 2014,

compared with 6.7% for the total workforce (Bureau of Labor Statistics) $1.3 trillion annual Millennial consumer spending, accounting for 21% of

total U.S. spending (Barron's) 68% personally have a smartphone and 61% say that the internet helps them

connect and make friends.

MILLENNIALS

© 2013 The Futures Company | 3

What’sChanging

Shifting dynamics businesses and brands must understand and address in reaching Millennials

MILLENNIALS

SHIFTING LIFESTAGE AND LIFESTYLE TRAJECTORIES

CHANGING DEFINITIONS OF SUCCESS

© 2013 The Futures Company | 4

What’sChanging

Shifting dynamics businesses and brands must understand and address in reaching Millennials

SHIFTING LIFE-STAGE AND LIFESTYLE TRAJECTORIES: The Millennial trajectory through life is led by desire and will, rather than adherence to traditional linear life stages. Greater flexibility in expectations and life choices with fewer constraints on personal identity mean that many Millennials are rejecting pre-designed and narrowly defined roadmaps to their future, with many delaying their transition into the typical notion of adulthood.

MILLENNIALS

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What’sChanging

Shifting dynamics businesses and brands must understand and address in reaching Millennials

CHANGING DEFINITIONS OF SUCCESS: Having grown up in the longest period of economic prosperity in recent times, the new economic realities have had an unprecedented impact on Millennials’ prospects. But Millennials are finding new dreams to replace those they have been forced to give up because of the economic downturn. Millennials are not abandoning success; they are redefining it.

SUCCESS BY COPING: Some accomplishments are impossible for reasons beyond Millennials’ control, but failing to reach those accomplishments doesn’t disqualify them from being a success. Success by coping is about succeeding by trying, where what constitutes success is effort, perseverance and adaptability, rather than fortune.1. ALREADY WON: Personal authenticity and candor—and exploring new possibilities accordingly—are the first

measures of success. 2. GRIT NOT GET: Success is not solely about winning or losing, but in the effort one gives to playing the game. 3. COOPERATION: There is no success in unreserved individual achievements that entail negative

consequences for others. 4. PLAN B: Successful Millennials are those who expect—and plan—to fail. What makes them winners is having a

back-up plan for the inevitable roadblock. 5. PASSIONS: Engaged in what inspires and excites; it is about finding joy in the process, not just the object or

the end-point

SUCCESS BY REINVENTION: The redefinition of success as reinvention is about succeeding by winning in a different way. This is not about dismissing accomplishment altogether. With a slowly recovering economy offering few glimmers of opportunity, Millennials acknowledge that the game has changed and seek ways to reinvent the rules—and themselves—in a way such that success is still attainable, just in a new form.6. ACCOMPLISHMENT AUGMENTED: Material wealth doesn’t stand alone as a measure of success. Rather, it’s

the attendant benefits and experiences that are the true reward. 7. HAPPINESS: Measured less by the market value, more by the meaning behind it. 8. CREATIVITY: Playing the hand one is dealt to make something that fits one’s lifestyle. 9. GAMING: Regardless of circumstance, lightening and loosening up the experience—and making it winnable. 10. FRIENDS: Friends form a support network, irrespective of what their individual visions of success may be.

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© 2013 The Futures Company | 6

CoreValues

Values shaped by shared experiences in Millennials' formative years

Like any other generational cohort, Millennials navigate life and respond to current conditions—economic booms/busts, technology innovation, etc.—within the context of the values and expectations shaped by the shared experiences of their formative years.

AUTHENTICITY: Millennials prize being true to themselves—and expect others to be true to themselves as well; they have a keen ability to see through hype and exaggeration and expect honesty, integrity and upfront communication as a baseline

AUTONOMY: Millennials relish independence, are comfortable going their own way and are more likely to try new things; this individuality, however, this coexists alongside a powerful team dynamic characteristic to the generation.

AUTHORSHIP: Millennials are shaped by a keen sense of being special and an unprecedented level of technology-proficiency; they want to define their own dreams, invent their own solutions and assert their will in the marketplace

Millennials Gen Xers Boomers Matures

63%57%

48%42%

Even if others might find it offensive, it is always OK to speak what is on your mind

Millennials Gen Xers Boomers Matures

68% 60%43% 40%

Usually one of the first people in my group of friends to accept new ideas or try new things

Millennials Gen Xers Boomers Matures

71%57% 51%

40%

Following your dreams: Important in your personal life today

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Challenges

The four unprecedented hurdles facing the Millennial generation

Millennials face four unprecedented challenges, each having an economic impact with potential implications for the long-term buying power of this generation.

UN/UNDEREMPLOYMENT: Though Millennials are rebounding, the Great Recession affected their job prospects more negatively than prior economic downturns did those of older generations 8.2% of Millennials ages 25-32 were unemployed in 2013, compared to just 5.8% of Xers in 1995

and 5.7% of Boomers in 1979 (Pew Research) Only 31% of Millennials ages 25-32 in 2013 considered their current job a "career," while 58% of

Xers and 59% of Boomers do (Pew Research)

DEBT: Millennials are burdened by crushing levels of college debt, and 41% say they’re very or fairly worried about getting out of debt, compared to 34% of Boomers The cost of an undergraduate degree is increasing at 2 to 3 times the rate of inflation (

Bureau of Labor Statistics) Despite carrying the smallest average credit-card balance at $2,700, 19-29 year-olds have the

lowest average credit score of any generation and are just as likely to be late on payments (Experian via Wall Street Journal)

OBESITY: Millennials have the dubious distinction of being the generation to come of age afflicted by the childhood obesity epidemic Lifetime aggregate earnings of Millennials will be depressed by $1 trillion from obesity-related

limitations (Journal of Business and Psychology)

MENTAL HEALTH: Millennials are facing rising emotional and mental health problems and 39% say "There are many days that I feel like a failure,“ compared to 28% of Xers and 20% of Boomers The American Psychological Association’s “Stress in America” report found that the gap between

adults who say stress management is important and those who say they manage their stress effectively is widest among Millennials (American Psychological Association)

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MILLENNIALS

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

Clashing the Millennial Core Values (discussed in another section of this Download) with the Multicultural Core Values (a proprietary MONITOR framework) creates a new set of six consumer characteristics is born that uniquely characterizes the attitudes and values of the Multicultural Millennial, or M2.

You can’t win the future without winning Millennials.

And you can’t win Millennials if you don’t understand the M2s.

”

“The World

is MinePlaylist of Me

Roots Remembered

Sensation Seekers

Remix Nation

Focused on the Moment

© 2013 The Futures Company | 9

MILLENNIALS

Identity ExpressionWho I am

Celebration of Life

How I live

Personal EmpowermentWhat I can do

Community Sensibility

What I care about

Entrepreneurship Tech

Savviness

Being the first

Being In-the-Know

Desire to Be

a Role Model

UniquenessCultural PrideConfidenceAspiration

Desire for Experiences

Resilient Optimism Savoring

the here and now

Extended Kinship

EmpathySocial Responsibility

Faith & Spirituality

THE MULTICULTURAL CORE VALUES FRAMEWORK: Through rigorous quantitative and qualitative analysis, The Futures Company identified four core values as significant and consistent areas of differentiation between ethnic and Non-Hispanic White consumers. These values provide the backbone of a framework for understanding the mindsets and priorities of ethnic consumers.

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

BACK

© 2013 The Futures Company | 10

THE PLAYLIST OF ME: For Multicultural Millennials, the answer to the question “Who are you?” is both much more complicated and much simpler than for prior generations of ethnic consumers. Their response—I am who I am—shifts fluidly over time based on cultural context and social situation.

BACK

African American

Hispanic

Asian American

Non-Hispanic White

75%

73%

78%

72%

Businesses care more about sell-ing products and services that al-ready exist rather than coming up with something that really fits my

lifestyle (among Millennials)

MILLENNIALS

African American

Hispanic

Asian American

Non-Hispanic White

41%

29%

32%

25%

Describes why I choose a particu-lar brand:

Doesn’t assume everybody of my race/ethnicity thinks the same

way (among Millennials)

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

© 2013 The Futures Company | 11

THE WORLD IS MINE: Multicultural Millennials are shaped by a sense that the zeitgeist is shifting in their direction and that they are uniquely positioned to inherit the world. As a result, they expect brands to meet them on their own terms and to take an unequivocal stand for the values of the M2.

BACK

African American

Hispanic

Asian American

Non-Hispanic White

86%

81%

92%

82%

I appreciate it when companies make it clear what values they stand for (among Millennials)

MILLENNIALS

African American

Hispanic

Asian American

Non-Hispanic White

76%

76%

85%

70%

I am more likely to buy a brand if I feel it is contributing to make the world a better place (among Mil-

lennials)

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

© 2013 The Futures Company | 12

ROOTS REMEBERED: Multicultural Millennials are all about relationships—to friends, to family, to the extended kin of community. Much of what motivates them is the desire to not just do well, but to give back to those who made their success possible.

BACK

MILLENNIALS

Millennials

African Americans

HispanicsAsian

AmericansNon-Hispanic

Whites

When aging parents can no longer live on their own, it’s their children’s responsibility to let their parents move in

77% 85% 88% 71%

I have enormous respect for the opinions and desires of older family members

68% 64% 61% 52%

I should be doing more to help my local community 74% 76% 78% 65%

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

© 2013 The Futures Company | 13

REMIX NATION: The lifestyles of Multicultural Millennials are strongly shaped by other ethnicities—and they, in turn, are serving as primary gatekeepers for cultural trends and consumption patterns to spread to their Non-Hispanic White peers.

MILLENNIALS

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

71%63%

86%

60%73% 73%

92%

73%

Some of my lifestyle choices have been influenced by my interactions with people of other races/ethnicities (among Millennials)My life has been made better by the things I've learned from people whose race or ethnicity differs from my own (among Millennials)

BACK

© 2013 The Futures Company | 14

SENSATION SEEKERS: Multicultural Millennials are actively looking for novel experiences and undiscovered frontiers. They’re motivated by the desire to embrace the new and encounter the unknown, the exotic and the unfamiliar.

MILLENNIALS

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

Africa

n American

s

Hispan

ics

Asian Americ

ans

Non-Hisp

anic

White

s

76%68%

81%

61%

I am more likely to choose a brand if it exposes them to new sensations or experiences (among Millennials)

BACK

© 2013 The Futures Company | 15

FOCUSED ON THE MOMENT: There’s a sense of urgency and immediacy to the lives of Multicultural Millennials. They live in the now and embrace the present, tackling challenges and celebrating triumphs with confidence and optimism.

MILLENNIALS

Multicultural Millennials

The key consumer traits and characteristics of ethnic Millennials

Africa

n American

s

Hispan

ics

Asian Americ

ans

Non-Hisp

anic

White

s

55% 57% 53%45%

60%55%

66%55%

I live and focus in on the present moment (among Millennials)

I try to have as much fun as I can now and let the future take care of itself (among Millennials)

BACK

© 2013 The Futures Company | 16

Now What?

A roadmap for developing successful Millennial marketing strategies

WHAT’S YOUR ISSUE?

DRILLING DOWN INTO YOUR MILLENNIAL TARGET

UNDERSTANDING THE RECESSIONARY IMPACT

CONNECTING THROUGH TECHNOLOGY & NEW MEDIA

MILLENNIALS

© 2013 The Futures Company | 17

Now What?

A roadmap for developing successful Millennial marketing strategies

Help! I need to drill down into my target Millennial

1 32

Understand how your target Millennial consumer might deviate from the Millennial norm. Do they skew older or younger? Do they skew urban or suburban? Do they skew in unique attitudinal or behavioral ways?

Use tools like MindBase to help you understand how the unique characteristics and qualities of your target Millennial ladder up to broadly applicable and practical insights.

Develop more finely tuned marketing strategies, messaging, communication and positioning using what you learn about how your particular Millennial might differ from the mainstream, broad-stroke understanding of the generation.

AUDIT SEGMENT TARGET

BACK

MILLENNIALS

© 2013 The Futures Company | 18

Now What?

A roadmap for developing successful Millennial marketing strategies

Help! I need to figure out what’s changed for Millennials post-recession

1 32

The recession and its aftermath hit Millennials particularly hard, causing shifts in—or the creation of—values and attitudes toward success, finances, accomplishment, debt, ownership and more.

Look at assumptions implicit in they way you communicate with Millennials. Do they resonate with those value shifts? Are they sensitive to Millennials’ economic plight? In other words, has your message evolved along with Millennials?

Millennials are more risk-averse than before the recession and want safe, savvy ways of spending that offer a meaningful experience. Help Millennials feel good about their investment through an emphasis on economic benefits and novel experiences.

ASSESS GUT CHECK SUPPORT

BACK

MILLENNIALS

© 2013 The Futures Company | 19

Now What?

A roadmap for developing successful Millennial marketing strategies

Help! I want to make authentic inroads using technology and new media

1 32

Millennials are far beyond “Social Media 101.” Avoid relying on old assumptions; instead, observe closely and frequently the ever-changing ways Millennials themselves use technology and media.

Based on how Millennials interact with one another and with brands, are your current efforts “on-trend?” Do they add real value to the conversation? And perhaps most importantly, do they have a clearly defined objective?

As described in our Kinship Economy, the critical role of brands in today’s socially driven mode of commerce is to target conversations (not individuals) and facilitate connections between people (not between people and your brand).

WATCH LEARN FACILITATE

BACK

MILLENNIALS

© 2013 The Futures Company | 20

Brands &Marketing

Brands and campaigns that resonate with Millennial values and lifestyles

NETFLIX: Netflix has risen from the ashes of its pricing debacle by encapsulating the “Access Without the Excess" theme of the 2013 U.S. Yankelovich MONITOR State of the Consumer—one that resonates deeply with the on-demand Millennial mindset. Between streamlined streaming and quality original content such as House of Cards, Netflix is now virtually dead even with cable among 18-36 year-olds who pay for subscription TV services.

BEYONCÉ: Millennial icon Beyoncé’s secret album drop demonstrates how sometimes the best way to create buzz is to turn down the volume first. As many celebrities vie to make the most noise around their personal brands, Beyoncé's approach “fits with Beyoncé’s target demographic: Millennials who have grown up tuning out standard, in-your-face marketing tactics.” [MORE INFO]

TOUGH MUDDER: Unlike many other races, Tough Mudder brings a community aspect to the competition and activity that is important to many Millennials. It’s also a great metaphor for this “Grit Not Get” generation that can’t prepare for a start-to-finish race in life. Instead, they must be ready to stumble, fall, duck, dodge—and get back up and keep moving. [VIEW VIDEO]

BEN & JERRY’S: Ben & Jerry’s ice cream offers more than a culinary indulgence; clever names and fun flavors offer a sense of playfulness that Millennials crave. In addition to the lighter side of the brand, Ben & Jerry’s is also very clear on its stance on several social issues, LGBT rights included. [VIEW AD]

© 2013 The Futures Company | 21

Quotes of Note

Useful snippets of relevant content about Millennials to add color to these insights

“The poor job market is not the only reason that recent graduates feel stuck in internships. Millennials, it is often said, want more than just a paycheck; they crave meaningful and fulfilling careers, maybe even a chance to change the world. That may explain why Millennials like Breanne Thomas, 24, an aspiring entrepreneur in Brooklyn, has bounced from internship to internship. Unlike her parents’ generation, it is not enough to find a steady job; she wants to follow the path of Mark Zuckerberg, or at least to get in on the ground floor of the next Facebook, the next Twitter. “‘Success’ doesn’t always mean financial success, but doing something you’re passionate about,” said Ms. Thomas.” (New York Times) “The formative experience of the Millennial generation has been one of ups and downs, highs and lows, leaps forward and big stumbles backward. This generation has grown up during two bubbles, two busts, two wars and two centuries. They see new possibilities, new approaches to success, new ways of living that are seemingly arriving daily. Globalization and cultural diversity have created a cross-pollination of ideas that they are eager to soak up.” (Peter Rose, Senior Vice President, The Futures Company) “Baby Boomers were the generation that came of age with the prosperity that transformed America from an other-directed, outwardly focused culture to a self-directed, inwardly focused culture. The individualism of Baby Boomers has not waned and Baby Boomers have not raised their Millennial children to be any less individualistic either.” (The Futures Company, Millennials in Crisis) “Some might argue that Millennial men will lose their idealistic approach to shopping and commerce once they’re married in their 30s and living in suburbia. No one can answer that definitively, but are you willing to risk the equity in your brand based on a hopeful hypothetical?” (MediaPost)

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Future Perspectives Millennials in Crisis: What the Team Dynamic and t

he Crisis of Chrysalis Mean for Marketers Unmasking Millennials: The Truth Behind a Misund

erstood Generation

MONITOR State of the Consumer Don’t Downgrade. Upfit. Give access without the excess.

MONITOR LIVE Spotlights February 2014:

The F Words: Millennial Women of Feminism, Finances, Family, etc.

April 2013: Millennials & Money: Spending, Saving, and Surviving

MONITOR Minute All Together Now: Millennial solidarity and the long

road to recovery Helping Millennials Keep Score: A feeling of progre

ss through feedback

OtherResources

Links to additional content on Millennials

Futures 5 PREDICAMENT: Millennials struggle to connect UPDATE: Millennials (still) in crisis QUESTION: Are Millennials becoming disillusioned? CONTROVERSY: Princeton mom out of touch with Mille

nnials' values DEBATE: Which way will Millennials go? MEME: Millennial Myths GENERATIONAL GENERALIZATION: Millennials buck s

tereotypes, for better or worse

Other Sources Trend and Tonic: Millennials The Futures Company Blog: Millennials Pew Research Center Mashable Generation Opportunity On The Rise, Barron’s Student

loans seen as potential ‘next debt bomb’ for U.S. economy (Washington Post)

MILLENNIALS

© 2013 The Futures Company | 23

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CLICK HERE to access the Interactive Download on Millennials

All data are from the 2013 U.S. Yankelovich MONITOR,

unless otherwise indicated

MILLENNIALS