Canada’s population pyramid isn’t exactly a pyramid, it’s a reflection of a country in flux. On the one end, declining birth rates since the 1970s have resulted in a dwindling youth population just as boomers flood into retirement. On the other hand, an ambitious immigration program expects an influx of half a million people annually, creating a new wave of workforce that is under 50 years old, looking to establish a new life in Canada and contribute to the economy.
Marketers looking for growth opportunities are challenged between those two trends: an aging, healthy, and rich population that appreciates the known and familiar, and an emerging younger population that is much more diverse, worldly, ambitious, demanding, and … well … less affluent!
Canada: population pyramid 2023
The predominant trend, as expected, is for legacy brands to find stronger demand among older Canadians - The Bay, The Keg, Levi’s, Desjardins, Canadian Tire, and Tim Hortons to name the most prominent. Older Canadians grew up with these brands and continue to appreciate them.
The opposite trend is also true: trendy, younger, hip, (affordable!) and global brands resonate stronger among the younger: Burberry, Gucci, and Prada … as well as Freedom Mobile, Popeyes, IKEA, and Walmart.
A few brands stand out in Kantar BrandZ as having found a way to strike a balance, appealing equally across the two cohorts. Nike, Chanel, Amazon, Kraft, and President’s Choice (PC) stand out among the largest, achieving similar demand power with both. Chanel and Kraft are classics, while Amazon, Nike, and PC are more recent names by comparison.
Despite the differences in categories these brands compete in, a few common trends have emerged:
- Meaningful Difference. The Meaningful Difference of these brands is similar to or exceeds their Salience (with the exception of Amazon and Kraft since their salience is through the roof). Among both age groups, these brands achieved the first Blueprint success factor: they are relevant and unique within their competitive sets. These brands connect with all consumers’ needs and stay on top of trends despite their large sizes and fierce competition.
Observation #1: Relying on Salience as a short-term growth driver shouldn’t exceed stronger Meaningful Difference to create long-term brand growth. A brand risks becoming only relevant to a specific cohort and will eventually lose relevance with the rest of the population.
- Purpose. The younger cohort finds more of a purpose behind those brands than the older cohort: they are more inclined to agree these brands “make people’s lives better” and “treat everyone with respect.” On the other hand, the older cohort finds these brands more “disruptive”: they “shake things up.
Observation #2: Different generations perceive purpose and sustainability differently. Evolving the brand isn’t about “going along” but needs to be embedded into the brand’s history to balance disruption and authenticity.
- Emotive positioning. Nike, Chanel, and Kraft have clear archetypal positioning: they deliver a consistent emotive image that consumers identify with. Nike is a Hero, Chanel is a Ruler/Enchanter, and Kraft is a Joker. Amazon and PC, on the other hand, are relatively more reliant on convenience and functional elements for their positioning. Amazon’s salience and PC’s value play a bigger role in the brand structure, representing pressure to continue to deliver functional support to maintain their lead.
Observation #3: There are different routes to connect with consumers. Emotive positioning is the most efficient in the longer term and endures but can be a harder ambition. Functional delivery and staying top of mind can also reach all consumers, however, that requires vigilance and investments to stay current and competitive to all generations of consumers.
Determining the path of relevance for big brands takes deliberate action, especially as design, targeting, and communication proliferate, and competition expands outside boundaries. Delivering for the wider generations of Canadians can secure a brand’s short-term success and reach long-term goals.
Kantar helps brands first identify the optimal positioning and purpose and then build brand equity through the lens of the world leading Meaningfully Different Framework.
View our full Kantar BrandZ 2024 Most Valuable Canadian Brands report here