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Best of #SNIC16 Series 3 of 3: Generation Z: The Next Generation

Questions & Answers

• Type your questions into the “Question” box at any time during the webinar

• Questions will be addressed during the webinar and at the end as time allows

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Part 1: Participate in this webinar.

Part 2:Complete the post webinar quiz. The link will be provided at the end of this webinar.

Earning CEU’s

Professional Standards CEU’s

This webinar provides one (1) CEU

Key Area: Communications & Marketing - 4000

Key Topic: Understanding Your Customer - 4130

Today’s Speakers

David Grotto, MS, RDN, LDNSr. Nutrition Marketing Business Partner

Kellogg’s Specialty Channels

Paul Stippich Sr. Customer Marketing Manager

Kellogg’s Specialty Channels

7Getting to Know Generation Z

Getting to Know

Generation Z

8

Let’s Get Social #GenZSocial

Do you understand how your people get social…and how to get social with your people?

9

Learning Objectives

• Define why Gen Z is different than other generations

• Understand what food preferences and nutrition opportunities exist with Gen Z

• Apply this knowledge to your day-to-day interaction with your GenZ & Millennial Parent population (and beyond)

• Understand why social media may help connect with Gen Z with your menu

10

theyWho are

11

Our population diversity is the greatest it has ever been.

Sources: U.S. Department of Census; Bureau, 1850-2000 Decennial Census; Pew Research Center, 2012 Intermarried Couples

CONSIDER!How will this change your approach to food and communication?

Where We Come FromChange in Foreign-Born Population by Region of Birth1

1960 2010

Europe

North America

Latin America

Asia

Other

75% 12%

2%

53%

28%

5%

10%

9%

5%

1%

12Source: Socialnomics 2015 - https://www.youtube.com/watch?v=jottDMuLesU

Over 50%of the world’s population is

under 30!

13

L A R G E, diverse and different…

Anyone born after

1995

83M55% Caucasian

24% Hispanic

14% African American

4% AsianPeople

Largest Demographic

Baby Boomerssince

Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

(26% of the population)

42%

20 and under

The most ethnicallydiverse generation

14

of projected population growth from 2015 to 2065

will be driven by immigration to the US

Source: Pew Research Center, Modern Immigration Wave Brings 59 Million to U.S., Driving Population Growth and Change Through 2065; September 2015

88%

A highly diverse population that is increasingly connected

15

What are key

differences v. millennials?

Getting to Know Generation Z

16Getting to Know Generation Z

Source1: Courting Gen Z, National Association of Convenience Stores Magazine, August 2015Source2: The Futures Company, U.S. TRU Youth MONITOR Consumers & Commerce 2014Source3: The Futures Company, Centennials, February 2015

If they splurge on something,

they cut back elsewhere

75%believe saving isimportant plans1

64%consider themselves

“savers” vs. “spenders”2

A generally practical and responsible generation.

Aware of

economicrealities

More likely to plan out success vs. MillennialsWho dreamed big without concrete plans3

17Source1: Courting Gen Z, National Association of Convenience Stores Magazine, August 2015; Source2: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Gen Z differs from Millennials in many ways.

Utilize up to 5 screens at a time1

Communicate with images1

Communicate with texts1

Utilize 2 screens at a time1

Primarily useFacebook1

Use Instagram and Twitter1

18Source1: Courting Gen Z, National Association of Convenience Stores Magazine, August 2015; Source2: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Gen Z differs from Millennials in many ways.

Focus on future & work for success1

Create things1 Share things1

Focus on the present and yearn to be discovered1

Care about social responsibility of

brands2

Care about the sustainability of a

brand1

Seek flavor and craveability in

AFH foods2

View health/health halfo as a key driver for AFH

foods and 1

19Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Social responsibilitymeans more than sustainability.

• Many don’t appear to understand sustainability

• Sustainability isn’t associated with restaurants

Most concerned with social responsibility

• Value is placed on brands with

a perceived social cause

They want to change the world

20

preferences?

What are their food

attitudes &

Getting to Know Generation Z

21Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Snacking is their favorite daypart. Gen Z follows less defined dayparts and frequently skips meals.

Breakfast Lunch Dinner

Snack Snack Snack

44%32%

25%

94% snack between meals at least once a week

Snacking is the least likely daypart to be skipped

20%

Skip breakfast

Skip lunch

Skip dinner

Skip snacking

22Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Often opt for on-the-go eating options

80%

Retail food purchases

Eating out

65%

40%

44%

19%

QSR

FSR

Grocery Store

C-Store

Vending

23Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Frequently visit and favor

major QSRs and FSRs

Full Service Favorites

Traditional QSR Brands

24Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Traditional simple foodsdominate their diet across all dayparts.

41%

Breakfast Dinner

Lunch

Snack

65%

70%

51%

43%

62%

25

However, sophisticated flavors, craveability and convenience drive food choices.

• Familiar with a twist

• Sophisticated palates for their age

– Spicy chips, condiments and seasonings

– Blueberry and mango smoothies

• Top retail food consumption drivers:

convenience, speed, easy to eat

Source: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

CONSIDER!What can you add to your menu that is familiar,

yet with a more sophisticated flavor profile?

26Getting to Know Generation Z1. Mintel, “Marketing to Kids and Tweens – US”, May 20142. Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Food is their favorite good to spend money on.

18%

32%

$16B36%

Spend money on clothes2

Spend money on going out with friends2

Spend money on food and drink2

Of Gen Z’s $43B in direct spending1:

27

For younger

Gen Zers,appealing to both the child

and parent is important

Getting to Know Generation ZSource: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015

Only 28%have been influenced into

something new from a commercial

73% of momsclaim their child has significant influence

on food purchases

Family and friends often influence their food choices.

CONSIDER!As a hyperconnected group, Gen Z relies on family

and friends to know what to purchase AND HOW TO THINK ABOUT FOOD

28

is expected to grow

Breakfast consumption to grow 8% annually between 2013 and 2018

Source: The Future Of Eating, The NPD Group, April 2014)

Breakfast

29

Food Preferences: Gen Z vs. Total Population

SOURCE: NPD

Heat & Eat Lunch/Dinner Entrees

Gen Z

Total Population

-5.0% 0.0% 5.0% 10.0% 15.0%

Salads

Gen Z

Total Population

-10.0% 0.0% 10.0% 20.0% 30.0%

Leafy salad, cottage cheese, other vegetable salad, potato salad, Cole slaw, fruit salad, pasta/macaroni salad

% Change Eatings, 2014-2018

Canned/dry soup, frozen/restaurant pizza, frozen dinners/entrées/sandwich, frozen/restaurant chicken, canned

pasta, meat substitutes

30

Quick Assembly Lunches/Sandwiches

Gen Z

Total Population

-5.0% 0.0% 5.0% 10.0% 15.0%

Lunchmeat sandwiches, PBJ, tuna/chicken/ham salad, meal kits (excluding burgers, hot dogs, sausage or Mexican sandwiches)

Combination Dishes

Gen Z

Total Population

-10.0% -5.0% 0.0% 5.0% 10.0%

Lasagna, spaghetti, Hispanic entrees, homemade soup, casserole, chili, stew, Asian dishes/stir fry

Food Preferences: Gen Z vs. Total Population

% Change Eatings, 2014-2018

31SOURCE: NPD

Mainstream Ethnic Dishes

Gen Z

-20.0% -15.0% -10.0% -5.0% 15.0%

Subset of Combination dishes that includes Italian, Mexican/Hispanic, and Asian dishes.

0.0%

Total Population

RTE Savory Snack Foods

Gen Z

-15.0% -10.0% -5.0% 0.0% 10.0%5.0%

Total Population

Food Preferences: Gen Z vs. Total Population

% Change Eatings, 2014-2018

Potato chips, tortilla chips, snack/multigrain chips, corn chips, pretzels, cheese puffs & curls, crackers, filled crackers, RTE

popcorn, snack mix/party mix, meat snacks, meal kits, string cheese/cheese shapes, muffins, toaster pastry, bagels, frozen snack foods, dips, salsa, salty snack & dip kits, AO alternative

snacks

32

Many of the top growing foods are healthy in nature

Foods Incremental Servings

Burgers

Fruit

Mexican (incl. Nachos)

Non-Fried Vegetables

Breaded Chicken Sandwich

Main Dish Salads

Chicken Nuggets

Other Sandwich

Pizza

Yogurt (Non-Frozen) 4,869

6,048

6,931

7,033

12,966

14,746

14,890

20,665

25,534

25,572

* Secondary Schools Excluded Vending

Menu Importance (M.I.) = Servings / Traffic

The NPD Group /CREST OnSite ® / YE Jun 2015

= Healthy Items

33

realities?

What are their

health & nutrition

Getting to Know Generation Z

34

Good news! Though childhood obesity is still a serious problem, the tide may be turning for Gen Z

Obesity Index: BMIAcross the Generations

Gen Z 15-17

Millennials 18-36

Gen X 37-50

Baby Boomers 51-69

Underweight Normal Overweight Obese

19% 60% 15% 6%

6% 45% 23% 26%

3% 37% 30% 30%

2% 29% 35% 34%

SOURCE: Hartman Report: Gen Z Health and Wellness Study 2015

35SOURCE: Hartman Report: Gen Z Health and Wellness Study 2015

Gen Z health challenges are different, too!

Dermatological/skin problems 54% 26% 28%

Colds/Flu 51% 6% 45%

Anxiety or stress 46% 11% 35%

Overweight 42% 5% 37%

Aches and pain (head or body) 33% 11% 22%

Fatigue 32% 9% 23%

Depression 30% 8% 22%

Memory/mind health 25% 5% 20%

Cancer 24% 3% 22%

Asthma 24% 11% 13%

Diabetes 23% 4% 19%

Digestive disorders 23% 5% 18%

Food allergy/sensitivity 23% 6% 17%

High blood pressure 22% 4% 18%

Sleep disorder 22% 6% 16%

High cholesterol 21% 3% 19%

Joint pain/stiffness 21% 5% 16%

Heart or cardiovascular concerns 21% 3% 18%

Sensitivity to irritants 21% 3% 18%

Hyperactivity 20% 7% 13%

Total Treating/Preventing

Treating Preventing

Aside from common ailments and skin problems, mental health issues are the most pressing for Gen Z

Top conditions beingTreated (>10%) orPrevented (>20%)

36HW Gen Z 15 CS

Approaches to eating mimic millennial parents this past year

37

But nutrient shortfalls still exist for Gen Z

CONSIDER!Could social media help communicate that your menus help meet shortfall nutrients of concern?

VITAMINS

• A• D• C• E

• Folate

MINERALS

• Magnesium• Potassium• Calcium

• Iron(for teen girls/young women)

OTHER

• Dietary Fiber

Scientific Report 2015 Dietary Guidelines Advisory Committee

SHORTFALL NUTRIENTS

38

Select Nutrient Intake6-12 & 13-18 Year Olds (NHANES, 2009-2012)

6-12 Year Olds 13-18 Year Olds

All All

No RTEC RTEC No RTEC RTEC

Energy (kcal) 1927 1909 2138 2155

Fiber (g) 14 15 14 17

Total Sugar (g) 123 128 134 145

Calcium (mg) 984 1142 1044 1266

Choline (mg) 252 238 284 275

Iron (mg) 12 18 12 23

Magnesium (mg) 227 243 251 281

Potassium (mg) 2129 2312 2291 2575

Sodium (mg) 3064 2993 3549 3467

Vitamin A, RAE (mcg) 534 717 492 799

Vitamin C (mg) 71 86 77 87

Vitamin D (mcg) 5 8 5 8

Vitamin E (mg) 7 6 7 8

Significant statistical difference between RTEC & No RTEC

Shortfall nutrients of concern

NO RTEC = No RTEC consumed on recall dayRTEC = RTEC consumed at least once on recall day

39

2015-2020 DGA Call to Action for Schools

CONSIDER!Could social media help connect the dots between all places that kids eat?

Healthy Meals and Snacks

Menu Labeling in Cafeterias

Outreach to Parents about Making Healthy Changes

at Home

Nutrition Education

SchoolGardens

PhysicalActivity Programs

ActivePlay

40

Gen Z students hear lots of messages about nutrition…but are they credible?

CONSIDER! How can social media be a means for you to inform Gen Z and their

influencers about the nutrition quality of your menus?

Good news: Today’s teens get more education about H&W, especially healthy eating, than generations past.

HOWEVER…Teens get most of this knowledge from school and parents

• Kids tend to echo their parents’ views.

• School influencers may or may not be a credible resource of information

• Health classes, coaches and school programs also make a big impact on teens.

SOURCE: Hartman Group 2015 Gen Z Health Wellness Report

41

How do you talk to Gen Z?

Getting to Know Generation Z

42

Gen Z only knows a digital world.Digital Natives

• Have grown up in a digital world

• Have continuous partial attention and microtask

• See little difference between digital and physical world

• View life through a digital overlay

• Distrust traditional marketing and want to be engaged

• Prefer to be called people vs. consumers

Getting to Know Generation ZSource: Johansen, Bob. The Reciprocity Advantage: A New Way to Partner for Innovation and Growth, 2015

CONSIDER!The way you communicate with

students to generate interest may need to change.

43Getting to Know Generation ZSource: Johansen, Bob. The Reciprocity Advantage: A New Way to Partner for Innovation and Growth, 2015

They are constantly connected

Digital NativesBy 2025 everyone 29 or younger will be a

digital native

• Always online unless they choose to

disconnect

VS.

Digital ImmigrantsBaby Boomers, Gen X and Millennials are

digital immigrants

• Offline unless they choose to go online

44Getting to Know Generation ZSource1: Technomic, Gen Z: Decoding the Behaviors of the Next Generation, September 2015Source2: Seven Emerging Millennial and Gen Z Trends for 2015, Ryan Jenkins, February 2015

You’ll find them online and on their phones.

Strong digital presence

• Consumes information across multiple screens at once

• Often seeks information about brands online

• 15% use social media to interact/learn about brands1

• Look for menu/location information and discounts

• 25% swapped out Facebook in 2014 for newer outlets2

e·phem·er·al

45

Mobile communication is key

Getting to Know Generation Z

Source1: Teens and Mobile Phones , Pew Research Center, 2010Source2: 51 Of The Most Interesting Facts About Generation Z, Dan Schwabel, Grail research, July 2014Source3: Courting Gen Z, National Association of Convenience Stores Magazine, August 2015

• 50% send over 50 texts a day1

• 64% somewhat or completely trust mobile apps or texts from brands2

• 79% experience emotional distress when kept away from electronic devices3

46

of C&U operators use social media to reach customers82% Facebook | 67% Twitter | 28% Instagram

Getting to Know Generation ZSource: Foodservice Director, The Big Picture, Nov 2015

C&U operators use social media to provide more types of information than all other market segments combined

92% promote special meals and events | 76% post menu items and locations

72% hours of operation | 68% entire menus

55% respond to customer questions/comments

Social media is an ideal place to reach and inform them.

84%EXAMPLE: C&U Operators

47

First, let’s understand how we’ve EVOLVED.

38

13

4 3

0

10

20

30

40

Years

Adoption of Media Over Time: Years to Reach 50 Million Users

Source: Socialnomics 2015 - https://www.youtube.com/watch?v=0eUeL3n7fDs

Moore’s Law: Processing power for computers will DOUBLE every two years.

48SOURCE: BTC

Multiple digital platforms feed today’s media conversation...

1 in 4 Minutes 17.8 Hours/Day Online Buying = $349.1B Mobile > Desktop

28% of all time spent online is spent on social

networks

Millenials consume 17.8 hours of media a

day and it’s mostly content created by

peers. That’s 75% of the day.

Digital transactions have increased 14.2% year on year, a trend

projected to continue. Consumers no longer

designate experientially

between “online” and “offline” ordering.

As of July 2015, 51% of internet

consumption was done through a mobile device.

Desktop was just 42%.We have passed the

tipping point.MOBILE ACCESS 21%

HIGHER.

49

…enabling instantaneous connectivity.

CONSIDER! If we use media differently, how should we talk to Gen Z?

SOURCE: Triniti

67%of users have

started a journey on one device

and finished on another

41%of all purchases

start on one device and finish on

another

84%of smartphone users use their phone in store

50

Gen Z spends up to 70% of their media

time onYou Tube

We tell media what we believe, see, say and want.

A perfect platform to tell Millennial parents about the quality of

your menus

SOURCE: BTC

1.55B Monthly Active Users

• 1/3 of the internet-enabled world logs in to Facebook at least once a day.

• 1.01B active daily users

400MM Monthly Active Users

• Instagram surpassed Twitter in Q3 of 2015 with MAU

307MM Monthly Active Users

1B Monthly Active Users

• Twitter serves as the primary social channel for conversation, social listening and provides real-time data.

• YouTube is the second largest search engine on the web and serves as a primary video consumption platform.

51MAU = Monthly Active UserSOURCE: BTC

We tell media what we believe, see, say and want.

2B Videos Consumed Daily

• 100MM daily active users

Fastest % MAU Growth

• 230MM monthly active users

2nd Fastest % MAU Growth

• 100MM monthly active users Pinterest.

Leading the Livestream Race

• The social “space race” of 2015 was a race for livestream supremacy.

• Periscope has emerged as the leader in this critical social technology

52Getting to Know Generation Z

Short, visual and conversational messages speak to them.

Short MessagesConversational Messages

Visual Messages

?

53SOURCE: Miguel Medina/AFP/Getty Images

Less words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess wordsLess words Less words Less wordsLess words

Experts caution that businesses attempting

to tap into Gen Z will have to do so with

exceptionally pithy advertising. This is a

generation accustomed to emoji's, hashtags

and six-second Vine videos. So, if businesses

cannot communicate the big picture in just a

few words, they will have lost the attention

of their desired audience.

54SOURCE: Miguel Medina/AFP/Getty Images

How can you say it with pictures?

Oxford’s 2015 word of theYear was an Emoji!

55SOURCE: Miguel Medina/AFP/Getty Images

Consider! If you ignore this shift, you may find yourself in a world of …

… and no, not chocolatey, swirly goodness.

56

implicationsinsights &

Getting to Know Generation Z

57

There are many ways your Gen Z students talk about your school food program!

How do you want them to talk about your program?

Like it or not, you are in the word-of-mouth business

58

Today, people are the medium and their words are our currency!

EXAMPLEOne offline WOM impression drives sales at least 5x more than one paid

media impression

INSIGHT: Drive word-of-mouth to drive traffic to kids menus

SOURCE: BTC

59

Make sure your messages address 3 core social media pillars

Talk to Gen Z where they talk to each other.

Find the right social networks.

Choose a time during the day or week when you

can respond to the reactions of your post

• Answer questions• Take feedback• Offer ideas

SOCIAL MEDIA COMMUNICATION IS TWO WAY!

Go beyond the menu!

• Find ways to engage GenZ with social causes and events

• Create campaigns and menus around these events

• Prove your relevance following causes and events GenZ follows

RELEVANT RESPONSIVE REMARKABLE

60

ASK: Get Social with your Kids!

Examine your school culture• SURVEY: what social network is

most popular students, parents, teachers

Digital Natives Digital Immigrants

Organize a team• Use digital natives!• Make a large enough team to

ensure you can post and respond routinely!

Research social media options that fityour culture and team talent/resources

Best Practices

61

Develop content• Pictures• Word thoughtsGET FEEDBACK

Digital Natives Digital Immigrants

Ensure school attorney is aware(and other decision makers)

Review and REMAIN SOCIAL!

Introduce to school communityENCOURAGE THEM TO HELPOWN THE CONVERSATION!

ASK: Get Social with your Kids!

62

Promote certain items to increase interest

– Advertise excess items or items that will expire soon

– Offer a discount

Offer online preordering

– Save time and paper

– Get a good picture of daily supply needed

– Give better overall experience by cutting wait time

Source: Foodservice Solution, How Social Media Can Bring More Students Into Your Cafeteria, Aug 2015

Creative useof social media will catch their attention

63

Join Jen Lewi, Dave Grotto, Dayle Hayes andPaul Stippich SNA ANC in San Antonio!

They will host a 1 hour NSBW breakout session with the following learning objectives:

Getting to Know Generation Z

• Identify how breakfast fills nutrient gaps for your unique Gen Z population.

• Educate others about the importance of school breakfast as it relates to academic success and public health.

• Apply best practice NSBW social media examples to better deliver the positive news of your breakfast program.

64

Thank YOU!

Getting to Know Generation Z

Type your questions into the “Questions” box and click send.

Questions & Answers

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