The Millennials (also know as Gen Y) are finally coming of age, as the oldest members of this age cohort turn 34 this year, and this means that the more "grown-up brands" (for lack of better terminology) will begin to target this huge consumer segment. People in their 30's don't act like people in their 20's, or so we would like to believe, and with getting older there are numerous changes in what is known as the Family Life Cycle. So Radisson is the latest organization to develop products specifically for this target market and, as such, will roll out "Radisson Red" a chain of hotels that will reach 60 locations by 2020 and will feature services that Millennials reportedly want.
The brand is currently known as a fairly no-frills operation, and so this strategic move is all the more interesting for it. The new hotel chain will feature large open areas, a loft-style layout, 24-hour deli where you can order pre-made sandwiches, a service where you can arrange to have family photos beamed to your television set so that you can feel more at home, custom mini-bar requests, a la carte pricing, and numerous other changes. It sounds interesting, and one would hope that the company conducted extensive research before developing this new product, and that they know what this group really wants. Are the Millennials really that different from Generation X (ages between 35-50)? It looks pretty gimmicky to me, but perhaps this huge group of consumers will be delighted that their generation-specific needs are being addressed, whatever those might be. Red seems to be a big color for some reason. Adding a bunch of services is all well and good, but this struggling generation is probably most interested in price, so hopefully the new brand has addressed this issue.
Radisson isn't the first to target the maturing Millennials, as Marriott recently teamed up with a Spanish outfit to co-operate a hotel chain in Europe called AC Hotels (coming soon to the U.S.), and you can be sure that we will start seeing increasing amounts of grown-up products targeted to Millennials as they finally form their own households and their own consumer preferences. The youngest member sof this generation are becoming teenagers so marketers have plenty to work with.
Filed under: Brand Management, Product, Market Segmentation and Targeting, Retailing, Product Design, Consumer Behavior, Marketing, Product Life Cycle, Marketing Environment, Social/Cultural Environment, Marketing Strategy