JB Research is Moving

Ricky at Work

Dear Friends, Colleagues and Clients,

Ricky, Erica and I are so excited to announce our move to the new office in Santa Rosa, California.  From now on, please address all correspondence to:

JB Research Company

374 Riven Rock Ct.

Santa Rosa, CA 95409

(707) 623-9654 Office

(805) 798-1800 Cell

The Best Job I Ever Had

Oscar Museum 2

Ten years ago, in about 2004, I got a call from a prospective client, a newly hired director of the Academy of Motion Pictures Arts and Sciences museum project, asking if I would be interested in conducting some market research for a new attraction/museum themed on the Academy Awards.

Would I Ever!!!

I had been the one lucky enough to do the work for the Dolby Theater at Hollywood & Highland where the ceremony takes place, so it seemed a good fit and logical that I continue on to do the museum feasibility.  But my joy, my heart, for Hollywood, no one knew that!

No One Had Ever Known That:

  • My family had always been in the entertainment business, with my father involved on the business side, having been a pioneer in the cable television industry.
  • My aunt always working for this or that movie star as an executive assistant.
  • I was lucky enough to visit the back-lot of 20th Century Fox before it was Century City!
  • I spent countless hours watching movies being filmed, then sitting in theaters watching them roll by me on the big screen.

Would I be interested?  Heck, yea!!

Since that time, I have been the consultant called upon to do the background market research, analysis and financial projections for the site selection, sizing and operation of museum.

I learned a thing or two during those years like:

  • I gained a deep knowledge of large museums and what keeps them thriving.
  • How an endowment can shrink during a deflation.
  • Money earmarked to never-be-touched has a way of disappearing in hard times.
  • I learned about the conundrum of keeping things fresh so that resident visitors will keep returning, time and again.

I am thankful that my job always changes and that I always learn, no matter the engagement.

Picture of Oscar 2Over the years, we have wrestled with all the issues associated with new development including disagreements about what it should look like, what its mission should be, where it should be sited, who is its targeted audience (please, don’t say everyone!), and what’s the best way to keep the project on-time and on-budget.  To be clear, these issues are complex and are made more difficult when there are many masters to serve.  Still, when the project is to reflect the points of view, hopes, dreams, and legacies of America’s most important cultural export, (which I believe is cinema) there must be the most careful consideration to each one.

This was my best job ever.  Write and tell me about yours in the comments below.

WHICH GENERATION TO TARGET?

We are all fans of the newest consumers to come of age, the Millennials. These young adults, who are now aged 19 to 33 and number almost 70 million, are the darlings of the marketing world. But in their rush to capture the hearts and minds of these young consumers, who are now forming their first real households, many brands are forgetting about the other generations.

To help our colleagues drive sales to adults in various life stages, we created an easy chart to start the conversation. A discussion of these groups is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it.

Generational Market Segments

· Swing and World II

  • Born between 1909-1945image
  • 33.7 Million
  • 69 or Older
  • 14% of Adults
  • Health Care Consumers
  • “Grandchildren” Spending
  • Delayed Gratification
  • Moderation
  • Discipline
· Baby Boomers

  • Born between 1946 – 1964image
  • 74.9 Million
  • Ages: 50 – 68
  • 32% of Adults
  • Multi-generational Consumers
  • Drivers of Growth in Leisure/Hospitality
  • Still Individualistic and “Rebels”
  • Starting to think about retirement
  • Forever Young
  • 45 Million Grandparents
· Gen X

  • Born between 1965 – 1980image
  • 60.4 Million
  • Ages: 34 – 49
  • 25% of Adults
  • Boomer Parents
  • Divorced Parents
  • Insecure
  • Practical in Consumption
  • Diversity
  • Responsible
  • Use Web Extensively
· Gen Y / Millennials

  • Born between 1981 – 1995image
  • 67.9 Million
  • Ages: 19 – 33
  • 29% of Adults
  • Ethnically Diverse
  • Tech Savvy
  • Multi-Tasker
  • Need Lots of Input
  • Prefer Health to Wealth
  • Prefer Mobile Communication
  • Omnicultural
· Gen Z

  • Born between 1996 – 2010image
  • 46 Million
  • Ages: 5 – 18
  • Structured Schedules
  • Over Managed
  • Info in Short Grabs
  • Multi-Tasker
  • Tech Savvy/Omnicultural
  • The “I” Generation

Source: JB Research Company

(For a Printable Chart, Click Here.) 

Each generation has a special way it likes to be approached, and each responds differently to messaging. For example, Boomers still shop in department stores, although certainly not as much as when the oldest boomers, now 69, were kids. Gen Y rarely shops in department stores unless it is one of the “cool” ones, which include Nordstrom’s or Barney’s. Or when they are shopping for their parents’ Christmas gifts, so they can be easily returned to a convenient location.

In terms of amount spend per visit to the mall and department store, the 45-54 age group cuts across two generations, Gen X and Baby Boomers. Department store spending, however, is highest among Boomers, while all other spending is highest again across Gen Y and Boomers. Teenagers visit the mall most frequently, but understandably, do not spend much per visit.

image

In terms of wealth, an interesting analysis indicates that Gen X, a sector largely ignored by great brands, is a real contender when it comes to income, net worth and wealth. The difference between income and wealth is that income is what you earn every year, and wealth is the totality of your assets minus your liabilities. According to the United States Department of the Census Current Population Survey, net worth and total income is as follows in 2013:

image

In terms of net wealth, Baby Boomers hold the highest percentage of net worth dollars at 34% and the highest share of total income dollars, at 39%. The second highest is held by Gen –X at 29% of net worth dollars and 31% of total income dollars. Millennials hold 21% of net worth, and about 18% of total income dollars. Again, markets with the most money are Boomers and Gen-X.  But that is because Gen Y is young, and on their way to being the consumer heavyweight in the next 20 years.

Some salient characteristics of each of the largest buying generations, Boomers and Gen-X include the following:

.  Gen- Xers have money! They make up 25 % of all adults, but hold 29% of all net worth and 31% of all annual income earned. Half of them want to provide for their kids’ college, and almost all want to save for retirement. Two thirds plan on traveling for pleasure in the next year, and half will buy one or more luxuries.

· Boomers on the other hand, buy things for themselves and their grandkids. They are omnichannel and know their way around the Internet of Things. They expect hype in their advertising because they invented it (Mad Men, anyone?) They are early adopters of smart medical devices and are very critical about experiential retail, again because they invented it.

While we’re at it, here are some characteristic of Gen Y and Gen Z.  Gen Y is completely omnichannel, and have said that they will pay for responsible products, although this has not yet been proven in the market. They will be early adopters of smart wearables, especially sport gear such as watches. They want a seamless shopping experience and they DO NOT WANT HYPE. Because of all the information thrown at them by their various smart devises, they want their lives simplified, so they have invented “curated” everything from experiences, to vacations, to cooking, shopping, to putting together furniture, to decluttering their lives. Think  YouTube, Yelp, H&M and Zara (fast fashion), shopping sites, and Pinterest. Because there are so many of them, and because they are just starting to become a force as couples, they are the generation that will take over next.

Gen Z is a whole other puzzle. They are not old enough to have much money of their own, but they will in the next ten years. They are overscheduled, but they are completely omnichanneled, cutting across every platform of technology. They are extremely entrepreneurial and want to be heard. They also want to try out products before they buy. In order to appeal to them now, you have to continually innovate and evolve digitally because they live on their devices.

The world is complicated today and is becoming more complicated as we evolve and innovate with our shopping methods and choices. The Internet of Things, such as magic RFID tags, augmented reality, delivery drones, curated experiences, wearable technology and life hacking are among the many new experiences we must excel at and then change our products and communication as they change. It is a brave new world!

Understanding Your Markets – The Generations, Swing through Z

Next week on February 18 and 19 the first annual Entertainment Experience Evolution Conference is being held at LA Live! in downtown Los Angeles.  We are participating, first by conducting a round table on the morning of February 19  (Marketing to Gen-X, Y and Z), and then right before lunch on the panel entitled “Open Air Projects, Pushing the Envelope”.  I hope all of our friends will join us.  For the full conference details, click here.

And here’s a teaser for some of  of what we will be discussing.  I love this stuff!

Generational Market Segments

Entertainment Evolution Experience

Happy New Year Friends!

I can’t believe so much time has passed since I last wrote.  We have been very busy and had a lovely holiday.  Hope all is well with you and your family.

We are reminding you to come and join us at an exceptional conference “Entertainment Evolution Experience” to be held February 18th and 19th at LA Live! in Los Angeles.  I will be speaking on a panel entitled, “Open Air Projects – Pushing the Envelope,” where we will discuss, among other things, the need for human contact and fresh air!

We would be thrilled to see you there!

Here are the details:

Shopping Center Business and InterFace Conference Group are pleased to highlight the following panel for the Entertainment Experience Evolution Conference, February 18-19, 2015 at LA Live in Los Angeles. The multi-day conference will focus on what developers, owners, restaurants, retailers, cinemas, designers and entertainment venues are doing to evolve the consumer experience and create vibrant places to spend time.

Featured Panel:

Open Air Projects –
Pushing the Envelope

Arguably the most active type of multi-tenant retail, open-air centers have grown beyond service retail to become true community environments. Find out how amenities, restaurants, landscaping, hardscaping, and placemaking are changing open-air retail. See case studies from developers and architects on the transformation of open-air centers, from regional lifestyle centers to power centers to small community centers.

EEE - Open Air Pushing the Envelope Speakers

For a complete agenda, click here.

To reserve your spot today, click here.

Grand New Project in Edmonton Alberta- Rogers Place

https://www.youtube.com/watch?v=px5glqr6v3Y

edmonton-arena-sw-aerial-x2 600In 2009,  we completed the market and financial feasibility analysis for the Edmonton Oilers new mixed-use arena-led project in Edmonton, Alberta.

We are proud to announce the construction of Phase One of Rogers Place, as it is called.

Construction began in the spring.  The arena is expected to be open for the 2016-2017 Season.  Phase One of the project includes the arena, hotels, a winter garden, retail, restaurants and more.  Cost for the arena is estimated at approximately $500 million.and about $460 million for other elements in phase one. The arena was designed by 360 Architecture.  Naming rights were sold to Rogers Communication.

 

 

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