Stickley Research Report

TetraADV 509

Benigno Bacolores Carlianna Dengel

Stephanie Diacovo Erin Miller

Executive Summary 1-2 Background 3-6 History 3-4 Industry Research 4-6 SWOT 6-8Research Methodology 9 Target Findings 10-12 Demographics 10 Attitudes 10 Purchase Intentions 11 Shopping Habits 11 Personality Traits 11Persona 12 Findings & Insights 13-18 Conclusion 19 Recommendations 20

Table of Contents

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Executive SummaryTetra was approached by Stickley Audi & Co. in early February 2015 to conduct research on Millennials. The purpose of this research, as defined by Stickley, was to ultimately assist and result in the brand’s penetration of the Millennial market, through identifying who Millennial furniture shoppers are, and which segment would be the best prospect for Stickley furniture. Additional research questions to be answered included: market trends affecting Millennials and purchase of high-end furniture, and what triggers a Millennial furniture shopper to invest in luxury furniture like Stickley.

In order to answer these questions and to gain a deep understanding into what makes Millennials tick, Tetra elected to conduct both secondary and primary research. Secondary research consisted of using research databases such as Mintel, Simmons OneView, and IbisWorld to gain a basic understanding of the furniture industry, as well as the Millennial target. Tetra also conducted primary research to gain deeper insight into Millennial behavior and the Stickley brand through in-depth interviews with consumers and brand stakeholders, as well as ethnographic passive observation at a Stickley showroom in Syracuse, NY.

Stickley's current customer base is remarkably loyal to the brand, and roughly consists of adults ages 40 to 50 years old. At least 63% of adults in this loyal consumer base have had Stickley products gifted into their homes by family and friends (Furniture City History 2014). These individuals value Stickley's brand for its rich history, local roots, commitment to the community; and its beautiful, handcrafted, long-lasting and comfortable products.

Several factors contribute to the challenge of marketing luxury items, such as Stickley furniture, to younger people in the Millennial segment: the initial sticker shock of these high priced items, limited accessibility to the Stickley brand, and the association with permanence that comes with buying furniture.

In the absence of such problematic factors as these, Millennials would likely choose to purchase luxury, handcrafted furniture, rather than continue to purchase foreign and or mass-produced, cheaper alternatives; alternatives that "do the trick," rather than become a timeless heirloom to be passed down for generations (Appendix D). Due to Stickley’s superior quality, it has become known for its higher prices and association with the "high class;" a stigma that makes the brand “untouchable" to younger audiences, who believe they cannot afford the products Stickley offers.

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Executive SummaryStickley has the unique advantage of being a local brand, which resonates positively with Millennial consumers (Appendix A). However, the beauty and quality of Stickley’s products can only be truly experienced in person through the staging of their showrooms, or by encountering the timeless pieces in a furnished living space or business. Furthermore, Stickley’s showrooms are mostly located in Central New York; limited geographic accessibility is another hindrance for any potential customers outside of this radius seeking this vital tangible brand experience. Tetra believes that the brand should become more accessible to the target demographic to forge a positive, memorable experience. Once this experience has taken place, an invaluable relationship will be formed with the brand that inspires Millennials to take action in the form of purchase.

Stickley creates unique works of handcrafted art that Millennials appreciate; it’s American-made, collector-quality, and loved for generations. However, until the association of investing in luxury furniture with settling down is eradicated, Millennials will continue to buy cheap, throw-away furniture. This is because Millennials tend to shy away from items that are associated with "settling down," a phase of life reserved for people who are done exploring what the world has to offer, and are ready to accept what they believe is the monotony of true adulthood. Millennials lust for travel, and invest in experience rather than investing in a permanent geographic location.

Conclusion and recommendations At Tetra, we believe in order to reach Millennials, the best course of action is to enrich and promote the unique experience that only Stickley can offer. Stickley needs to reposition itself as a complete brand experience, and further reinforce the idea that Stickley pieces are works of art and investments that will last generations. Tetra suggests both bringing Stickley pieces to Millennials, and bringing Millennials to Stickley, through experiences that already resonate well with the target. Millennials value travel, social and luxury experiences, and creative recreational activities in their downtime; all activities that Stickley has the opportunity to capitalize on. Continue reading to learn more about the vital information Tetra uncovered about Millennials with the potential to revitalize Stickley in the eyes of the Millennial consumer.

“Stickley is a complete brand experience, and its products are works of art that will last generations”

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BackgroundHistory The Stickley family thrived on their passion for crafting quality and everlasting furniture. The five brothers, Gustav, Leopold, John George, Albert, and Charles all had an appetite to craft the best furniture they could all create. Although all of the five brothers have passed away, their work lives on in a Flemish creed: Als Ik Kan-“To the best of my ability.”

Despite sharing a passion for unsurpassed craftsmanship, not all of the Stickley brothers worked for the same company. Thus the tumultuous development of Stickley Companies began to surface, as some brothers continued to work together, and others decided to become each other’s competitors.

Gustav Stickley, the eldest and most well known of the five Stickley brothers, had a burning passion of the love of arts and his craft. As a first-generation immigrant with parents from Germany, Gustav took it upon himself to support his family, joining his father in the craft of stonemasonry in 1870. Later in life, he found himself working in his uncle’s chair factory and working with his brothers Charles and Albert to start business in Binghamton, NY. Gustav’s first venture in the Gustav Stickley Company in 1898 lacked many of the sophisticated tools of his time, and instead was defined by simple, beautiful, handcrafted pieces. After a trip to England, he returned energized and established the United Crafts, the beginning of what would then become Craftsman Workshops.

As an established advocate for the Arts and Crafts Movement, Gustav continued to produce astonishing pieces of furniture, honing on his “Mission” style. Mission style refers to the architecture of the Spanish mission buildings in colonial California in the late 19th century. But by the beginning of the 20th century, Gustav had mastered this look and spearheaded the Arts and Crafts movement. An unparalleled love and passion for the craft at every stage – from the construction to the finish – has placed a high market value on all of Gustav’s pieces. Furniture by Gustav Stickley is considered the most desirable of all Stickley furniture; pieces of his and those of L & JG Stickley are known for their superior quality, timelessness and elegance versus pieces by the Stickley Brothers or Charles Stickley.

Leopold and his younger brother John George Stickley began manufacturing furniture in the 1900s to craft what they believed was the finest furniture available. In conjunction with expertly refined craftsmanship and wisdom from Gustav, these three brothers built the foundation for the Stickley brand, emphasizing beautiful wood, simple design, and luxurious, accommodating pieces intended for infinite use. However, the legacy of Stickley furniture was in need of a new home as the brothers began to pass away.

Als Ik Kan-“To the best of my ability.”

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Background

Problem Statement Stickley’s rich brand history and remarkable craftsmanship combine to create unique pieces of furniture that are viewed by many as works of art, rather than generic objects to fill an empty house. The Stickley brand name exudes class and high quality, characteristics loyal Stickley consumers hold dear. However, Stickley has yet to capture the younger demographic of Millennial shoppers, despite its prominent brand perception among an older audience. The Stickley company is uncertain of the reasons as to why the Millennial target skews towards buying cheaper, mass-produced, temporary pieces of furniture.

“Why aren’t Millennial consumers willing to make the investment associated with buying hand-crafted,

high quality furniture?”

From the 1950s to 1970s, the appreciation for handmade pieces and dedication to craftsmanship began to waver. With this ominous trend looming over Stickley’s uncertain future, E.J. Audi, a dedicated seller of Stickley furniture in Manhattan, decided to stop Stickley from being a relic of the past and propelled it into the late 20th century. Along with his son Alfred and Alfred’s wife Aminy, they purchased the factory and continued Stickley’s legacy. “Enduring tradition, superior craftsmanship, an unshakeable philosophy of excellence—these are the bedrock of the Stickley ethic, and the reason that Stickley produces America's premium hardwood furniture.”

Research is needed to gain insight into the minds of Millennial consumers to help identify the factors that are deterring them from purchasing high quality, luxury furniture. The research will evaluate current trends in the furniture industry, demographic and psychographic characteristics of current and target customers, as well as the purchase behavior and intent of Millennials in a general sense, and in regards to the furniture industry. Research is a justified response to this problem given Stickley’s lack of market share prominence in the furniture industry.

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Background

Industry Research Companies operating in the United States Furniture Store Industry primarily sell household, outdoor, and office furniture with the majority of sales coming from living room, dining room, and bedroom furniture. The remaining industry sales result from the purchasing of smaller ticket items such as desks and home office goods, lamps, recliners, and rugs.

The United States Furniture Store Industry is expected to slowly recover from the recession that occurred as a result of the housing market bubble in 2009. During this time, furniture stores across the nation experienced a dramatic decline in demand. However, there has recently been a rise in consumer sentiment, which has been accompanied by an increase in discretionary spending. This increase in positive consumer behavior is influencing individuals to resume purchasing big-ticket home goods. In addition to rising consumer sentiment, home ownership rates are expected to increase over the next five years; a positive sign for the United States Furniture Store Industry.

Currently the industry is fragmented and no one company controls a prominent share of the market.

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Background

IBISWorld identified six key factors that will help companies differentiate themselves to succeed in gaining a prominent market share:

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BackgroundSWOT

Strengths Stickley Audi & Company is a strong local brand with rich historical roots. They are located in the Central New York Area and have a strong and positive reputation for creating beautiful pieces of furniture. Their customers speak highly of the company’s commitment to the community and showcase their furniture after purchasing.

The craftsmanship of Stickley furniture is always of supreme master of skill. Handmade furniture is a lost art, but the care and attention to detail put into each piece is very respectable and unmatched by mass producing, “Big Box” furniture companies.

Stickley Audi & Company is also a Sustainable Furniture Council Member, which means they “take immediate steps to minimize carbon emissions, waste stream pollutants, un-recyclable content and primary materials from unsustainable sources from any product platform under their control.” (Sustainable Furnishings website).

The original Stickley company was slipping out of business, but the Audi family, who bought the company to save it from going under, is major reseller of the brand because they believe in its potential and craftsmanship. With proper advertising, Stickley Audi & Company has the potential to grow its target market to Millennials.

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BackgroundWeaknesses Stickley furniture is an investment. Unless a shopper has the liberty to make luxurious recreational purchases, Stickley furniture is something one tends to strategically buy. Millennials love to shop, but they are hesitant to buy, especially when faced with Stickley’s initial sticker shock. Millennials seek smaller, more affordable luxuries rather than large purchases that can make a significant dent in their bank accounts. Stickley’s current customer base are older “settled” families, Stickley-loyal adults ages 40-50 (Furniture City History, 2014), not Millennials. This is due to the low presence of Stickley’s brand in Millennial culture. Lastly, Millennials think Stickley is untouchable, due to stigma surrounding its price and status as “high class.”

Opportunities Stickley furniture pieces are hand-crafted works of art. However, the company’s limited number of locations hinder the brands interaction with its desired consumer base. Stickley, Audi & Co has the opportunity to expand its target market by increasing the brand’s touch points with consumers. By placing pieces in coffee shops, AirBnb residences, and hotels, Stickley will seamlessly integrate its products directly into Millennials’ experiences. Stickley can also capitalize by increasing traffic to showrooms. By hosting events such as wine tastings and sponsored cooking classes, two activities that resonate well with the Millennial target, Stickley can create a luxurious environment that Millennials feel comfortable engaging in.

Threats With no one major player cannibalizing market share in the home furniture industry, Stickley is not at risk of losing customers due to monopolizing competition. However, the desire by consumers for cheap, “get the job done” furniture, has been increasing over recent years and poses a threat to Stickley in regards of gaining new customers. Companies such as IKEA offer lower quality, lower priced items that became favorable to consumers around the time of the housing market crash in 2009. Stickley will have to be wary and considerate of potential future economic downturns that will influence buying behavior away from luxury goods.

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Research MethodologyTetra conducted both primary and secondary research to gain valuable information about Millennials. Secondary research was conducted through Simmons OneView, Mintel, and MRI +, to gain an overarching understanding of the target, and to set the stage for questions and insights that would later be uncovered during primary research.

Secondary Research In order to conduct primary research, Tetra needed to first gain both a basic understanding of the furniture industry as well as the millennial target. This was done by using research databases such as Mintel, Simmons OneView, and IbisWorld. There was an abundance of information about market conditions regarding home furniture in the U.S., however, specific information of consumers perceptions of Stickley, Audi & Co. was difficult to find. Most information collected about the perception of the company was uncovered through primary research.

A broad information search of Millennials was conducted through the use of Mintel as well as other professional articles and research documents. Tetra dove deeper into secondary research through the use of Simmons OneView. The target definition used in Simmons was any individual between the ages of eighteen and thirty-five. The information collected in Simmons set the basis for both the customer observations, stakeholder interviews, and the personal in-depth interviews.

Primary Research Primary research was conducted to further investigate the reasons underlying the target’s behaviors and opinions. Samples were selected using pre-screening, and those individuals best fitting our target were asked to participate in in-depth interviews. These respondents were contacted in advance and a mutually convenient time was selected for an interview. One of these in-depth interviews was with a couple in the process of moving in together in a Syracuse house. This couple was chosen because they matched the target very well, defined more explicitly below: the girlfriend is a 27-year-old registered nurse, and her boyfriend is a 31-year-old office furniture salesman. Their combined household income matches that of the target, exceeding $75,000 annually. Tetra chose to conduct in-depth interviews because of the many advantages they offer, including their free-flowing and conversational nature, which allowed us to pursue topics in different ways through extensive, detailed probing. We chose to interview the pair together.

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Target AudienceInitially, Tetra defined Stickley’s prime target as comprised of those individuals ages 18-35, who either have children or are planning to start a family. This initial target was chosen based on purchasing trends seen in the furniture market (Appendix C). However, a deeper dive into reasons underlying consumer behavior and attitudes revealed why mostly young families are purchasing so much furniture: Tetra has uncovered an insight that would allow Stickley to reach all Millennials, regardless of relationship or family status.

Insight #1: Millennials tend to shy away from purchases that are associated with settling down; a phase of life they see reserved only for those finished exploring what the world has to offer, and are ready to finally face what they believe to be the monotony of adulthood.

Demographics

With this new insight in mind, Tetra continued with secondary research by using Simmons OneView to gain further understanding into the target’s demographic features. The target that was used to run the crosstab referred to the basic definition of a Millennial: any individuals ages 18-35. Almost 70% of this target is not married, confirming Tetra’s decision to eliminate relationship status from the target’s definition. Over 86% are not expecting to have children within the next year.

More than half of these Millennials are employed either full or part time, with half of this population earning a combined household annual income of over $75,000 and about one-third earning more than $100,000. Additionally, 37% of the target rent their current place of residence, and another third have changed their place of residence within the last year. Lastly, race varies among these individuals, with no one individual race being more prominent than another.

Attitudes About Finances One of the major contributing factors to the decline in the American furniture industry during the beginning of the 21st century resulted from the domestic economic meltdown. This economic downturn, which many Millennials know as the recession, led to a demand for cheaper priced goods, and thus an increase in off-shore manufacturing. However, the recession also caused Millennials’ attitudes about their financial stability today to dramatically change. 63.7% of our target feel either the same or somewhat better off financially when compared to a year ago. 31.4% also stated that they expect to be even more financially stable in the upcoming twelve months, an attitude that can be safely assumed to correlate with an increase in purchases.

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Target AudiencePurchase Intentions

Even though Tetra found that Millennial attitudes about future financial stability were positive, secondary research also uncovered that 68% of the target stated that they were not at all likely to purchase a big-ticket item in the next thirty days. Accompanying this statistic, 44.6% also stated that they were not at all likely to purchase a medium ticket item in the next thirty days. This disconnected relationship between financial stability and purchase intentions thus led to Tetra’s questioning of the underlying reasons behind Millennials’ purchases. Later on through primary research, Tetra would discover that the reason for this disconnect is due to the first insight.

Shopping Habits

Secondary research also provided some of the information leading to an initial view of Insight #4. Seven out of ten Millennials responded that a store’s environment makes a difference on where they choose to shop. This statistic was accompanied by a majority response that the target also finds pleasure in owning high-quality items. Other shopping habits that Millennials possess include shopping at local stores rather than national chains; as well as shopping at specialty stores rather than large retailers when it comes to larger ticket items, because they feel that employees of specialty stores are more knowledgeable about the products.

Personality Traits Millennials span over a wide age range, which makes targeting their personality and recreational habits difficult. Despite this challenge, Tetra was able to uncover several insights about Millennials that can be implemented to leverage and create a strong, positive relationship with the Stickley brand. • Millennials are social: more than

half stated that they enjoy entertaining people in their homes.

• Millennials are creative: 41% are interested in the arts, with one-third being particularly intrigued by home décor.

• Millennials are culinary: 60% of the target either bakes or cooks for fun.

• Millennials like to express themselves: 74.7% stated that music is an activity that they enjoy in their free time that allows for self-expression.

• Millennials like new experiences: 81% of the target loves the idea of traveling abroad or domestically, with primary activities during these trips being fine dining and sightseeing.

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Maddie Grimm & Co.

Meet Maddie Grimm, a 29-year-old freelance fashion photographer living in Manhattan. Maddie graduated with a degree from the Newhouse School at Syracuse University eight years ago and since then has pursued a wildly successful career in photography, working in Chicago, San Francisco, Los Angeles, Miami and now, New York. Maddie is engaged to her long-term boyfriend of six years, Greg Adams, a model whose unique career allows him to be flexible enough to move around the country as frequently Maddie does. Maddie loves the arts, and is a frequent visitor of fine arts and modern art museums alike. Similarly, she appreciates her career because it allows her to see things from a different perspective - and this doesn’t always mean through her camera lens. In her free time, Maddie enjoys entertaining; hosting and cooking small dinner parties for her and Greg’s friends. The pair also enjoys traveling outside of work; they visited Bora Bora last winter and this summer are planning a backpacking trip across Europe.

Maddie’s biggest motivator is herself; as she is constantly pushing herself to reach greater heights in both her career and in her world experience. While she and Greg see themselves as being together for a long time, they don’t intend on physically settling down in one single location at any point in the next five years. In fact, they hope to gain a global experience, and are pursuing professional careers and a life abroad in different countries. Maddie needs a financial safety net, not necessarily a physical one; just in case anything goes awry in her monumental plans. Because of this, she has a hard time investing a lot of money into her places of residence, seeing as she moves almost every year or two.

Maddie drives a Fiat 500, which reminds her of the semester she spend studying abroad in Florence, Italy while she attended school at Syracuse. In fact, Maddie loves brands that give her a personal, memorable experience. As such, some of her favorite brands include Starbucks, Ralph Lauren, Sephora, Anthropologie, and Apple. Although she likes to believe that she has expensive taste, Maddie rarely buys big-ticket luxury items, and instead opts to gift herself with smaller, daily luxuries, ranging from Chanel nail polishes to designer heels. Larger purchases, if any at all, are limited to only those that are deemed absolutely necessary.

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Findings & Insights

After Tetra’s deep dive into secondary research concluded, the team was able to identify recurring statistics that gave insight into Millennial buying behaviors. In order to reinforce these facts with real-life applications, Tetra conducted several primary explorations to gain deeper insight into the target. These investigations revealed several fascinating themes that correlated directly to the findings identified from secondary research.

#1 Insight: Millennials tend to shy away from items and experiences that are associated with settling down; a phase of life they see reserved for people who are done exploring what the world has to offer and are ready to settle down and accept the monotony of adulthood.

#2 Insight: Millennials seek out smaller, more affordable luxuries.

#3 Insight: Millennials invest in experiences, not in valuable items.

#4 Insight: Millennials build stronger relationships with brands they can truly experience.

#5 Insight: Stickley’s high prices make it “untouchable” to Millennials.

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Findings & Insights#1 Insight: Millennials tend to shy away from items and experiences that are associated with settling down; a phase of life they see reserved for people who are done exploring what the world has to offer and are ready to settle down and accept the monotony of adulthood.

Big Purchases are Associated with Settling Down for Good

The key insight that Tetra uncovered during its secondary and primary research into Millennials and Stickley itself is that this target tends to associate important and big purchases with settling down; an event that many Millennials see far in their future. Because of this stigma surrounding big purchases, Millennials avoid investing large sums of money into property or expensive, permanent furnishings alike – the category that many luxury items fall into based on price alone. One respondent in our in-depth interviews argued, "It doesn’t make sense to do it unless you’re going to live there forever. You have to be in the right position, that place, that location; in order to invest in luxury items.” Our research supported his argument to a T: the majority of Millennials today don’t plan on settling down right now, and won’t for a while, which means they aren’t putting a lot of money into their current property, because they’re scared once they do, that money is gone forever. “The problem is, you can only invest so much money into a place that you’re only going to get so much back out of. Once you start sinking your money into renovating or redecorating, you never get your money back out… "It’s worth it to [invest in luxury furnishings] when you move out to a nicer neighborhood, where the houses are worth a lot more money. It doesn’t make sense to do it unless you’re going to live there forever."

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Findings & Insights#2 Insight: Millennials seek out smaller, more affordable luxuries.

Millennials’ hesitation towards making large, luxury purchases stems from their belief that these high-priced purchases come with permanence. As such, Millennials instead opt to treat themselves to smaller luxuries, reasoning that they are escaping the looming future of “real” adulthood - marriage, babies, and white picket fences - in relaxing, day-to-day items and activities. These smaller luxuries may be tangible items or memorable experiences, the latter of which seems to be incredibly popular among our target; this trend, however will be discussed separately later on. One of the Millennial respondents from our in-depth interview defined luxury as "having something much more than your standard, something higher and above what you’re used to.” This same respondent found refuge in small luxuries such as designer face washes, high quality cosmetics, and expensive gourmet food and spirits (Appendix). However, when asked how this definition of luxury may change ten or fifteen years from now, the answers were much different: “[Luxury would mean] probably a lot more. Probably being able to have a big, nice fancy house. With maybe a Jacuzzi bathtub, or a hot tub, or maybe even a sauna. That’s something I would sink a lot of money into, once I earn it.” This idea of “sinking money” into property and associated big ticket purchases directly connects to Tetra’s belief that Millennials associate purchasing big ticket items with settling down.

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Findings & Insights#3 Insight: Millennials invest in experiences, not in valuable items. The research done by Tetra shows that Millennials certainly avoid investing in expensive, life-defining purchases, especially when those purchases have to do with where and how they live; big purchases including high-quality, “permanent” furniture. There are several reasons for this; one of them being that Millennials feel that investing a lot of money in their current, singular place of residence is ultimately fruitless. Findings from both our secondary and primary research support this trend. According to Simmons OneView, 37% of our target rents their property, and another third of Millennials has moved at least once within the past year (Appendix B). A respondent in our in-depth interview admitted, “I don’t intend to invest a lot of money in this property. I don’t intend to live there for probably more than five more years" (Appendix D).

Through this research, Tetra uncovered a remarkable insight: rather than sink their money into their property through luxury items, Millennials instead invest in memorable, luxurious experiences. The prime experience that Millennials seek is exploring the globe. This generation more than any other has an insatiable lust for travel, with about half of Millennials that stated they love the idea of traveling abroad, and almost 60% of them having traveled domestically at least once within the past year (Appendix B). In our in-depth interviews, Millennials agreed: “We splurge when we travel.We definitely splurge more on experiences. We stay in the nicer hotels because it’s a better experience."

Most Millennials don’t have the freedom to be full-time globetrotters, but still find pleasure in experiencing domestic treasures. One of the participants from our in-depth interview stated, “I like the outdoors: hiking, fishing, hunting. I love to travel. We go for concerts. We do road trips and stay in different towns.” Similarly, data from Simmons shows that 59.7% of Millennials have traveled domestically at least once within the past 12 months (Appendix B). This group also shows to be voracious consumers of live music, with over 35% that attend concerts and music festivals. The target also satiates their craving for experience through culinary delights, whether these may be trips to restaurants, cooking classes, wine-tastings, or making gourmet dinners at home. An interview respondent claimed, “we look for luxury, but it’s small. Good groceries, good wine, and really nice dinners.” On average, 37% of Millennials either find joy in cooking, barbecuing, or baking for leisure (Appendix B). Many Millennials also enjoy the seemingly simple experience of eating out at restaurants, with over 55% that stated they dine out, not fast food, for leisure. Whether it’s a trip abroad or a trip downtown, Millennials spend more on experiences and making memories than on big ticket items.

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Findings & Insights#4 Insight: Millennials build stronger relationships with brands they can truly experience.

Due to the importance that Millennials place on experiences, it comes as no surprise that their relationships with brands are strengthened by the experiences this target has with those brands. Millennials and brands build these unique relationships in several ways. An extremely important part of having a positive and strong relationship with a brand is to experience it in person. As such, geographic location to retailers is a deciding factor in how consumers engage with a certain brand, since being able to go into a brick-and-mortar store and have a tangible experience with the brand is possible this way. Ironically, Stickley is an excellent example of a brand that benefits from this physical experience. The true quality and beauty that only a Stickley piece can embody is only fully realized in person at one of their expertly designed showrooms, or even better, by using it (Appendix D). However, Stickley’s few retail locations make consumer touchpoints limited, especially to Millennials; since many do not live close to a Stickley retail outlet, which are mostly located in Upstate and Central New York (Appendix B).

On the other hand, Stickley’s intensified local factor can serve to its advantage: data from the Simmons crosstab Tetra ran on this target shows that 31% of Millennials prefer shopping at local stores to shopping at a national chain. Also to Stickley’s advantage is that 31.1% of Millennials responded that they choose to shop at specialty stores because the employees are knowledgeable of the products (Appendix B); and seven out of ten agree that a store’s environment can make a difference in whether they shop there. Stickley exceeds these expectations and more because everything they do is done so expertly. Leaving the stellar craftsmanship of the furniture itself aside, Stickley’s showrooms are beautifully designed by true experts in the field, like Syracuse showroom’s Cynthia Wren, who has been with the company for 28 years as an interior designer and sales associate. Visiting a Stickley showroom is a one-of-a-kind experience, as Tetra discovered firsthand through ethnographic observation and in-depth stakeholder interviews. Before speaking to Ms. Wren, we were greeted by Laurie Vecchio, Corporate Designer for L & JG Stickley. Oddly enough, she wasn’t there to perform her usual duties, but instead was filling in for the receptionist that day; adding “we all wear lots of different hats.” Both the quantitative data from Simmons and qualitative data from our primary research show that Millennials value a strong relationship and experience with a brand. Furthermore, it is people like Ms. Wren and Ms. Vecchio, the Stickley showroom, and the product itself that all create a picture-perfect brand experience that other companies should strive for if they want to connect with any audience at all, not just Millennials.

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Findings & Insights#5 Insight: Stickley’s high prices make it “untouchable” to Millennials.

At this point, there is no denying that Millennials have a hard time “pulling the trigger,” so to speak, when it comes to making big, expensive purchases. Research conducted by Tetra using Simmons OneView shows that 68% of Millennials are not at all likely to purchase a big ticket item in the next thirty days, and 44.6% are not at all likely to purchase even a medium ticket item in the same timeframe. This data was supported by our primary research. The couple Tetra interviewed was not looking for much new furniture for their house, despite the fact they were moving in together, because interestingly enough, the house was already furnished almost completely with Stickley furniture. The furniture had not been purchased by the couple; instead, as many Stickley pieces are, the furnishings were gifts passed down to them from the boyfriend’s mother, an avid Stickley collector. Her son had this to say about Stickley’s prices: "I would never have the budget for it myself. It’s the greatest stuff in the world, but I can think of better things to spend my money on. I’d be ready to buy Stickley for myself maybe in my forties or fifties, after I can afford to pay for my food and electric and car insurance, and then have money left over.” This idea was reinforced by one of Stickley’s own employees, who admitted “people think we’re unapproachable because of the price; we have to get them in the door to show them they can afford it.”

“It’s the greatest stuff in the world, but I can think of better things to spend my money on.”

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Conclusion

Tetra’s most recent client, Stickley Audi & Company wants to market its luxury furniture to Millennials, younger adults ages 18 to 35. Currently, their main customer base consists of an older generation of adults ages 40 to 50 years old. We decided to take the challenge, and after some thorough primary and secondary research, we uncovered some very important insights. First, Millennials aren’t ready to settle down because they constantly seek new, enriching experiences. Next, they seek out smaller, more affordable luxuries instead of hefty purchases. Also, Millennials invest in experiences, not in valuable items. In addition, Millennials build stronger relationships with those brands that they can truly experience. And finally, Stickley’s high prices make the brand “untouchable” to Millennials. Tetra used these insights to craft recommendations and suggestions for Stickley to effectively market their product and brand to Millennials.

In Stickley’s problem statement, we at Tetra concluded that the biggest obstacle that the company must face is the accessibility of the brand to Millennials. This prospective target market will create relationships with brands they can have experiences with. Our solution is to furnish Millennials’ experiences with Stickley.

Although Millennials do not tend to spend large amounts of money in one sitting, they tend to pay for quality downtime experiences. These include but are not limited to dinner at a nice restaurant, a night at the movie theater, a show at a concert hall, beer/wine tasting with friends, or a reading day at their favorite cafe. Millennials seek comfort and class when they seek out their pastimes. We suggest that Stickley partners with local Millennial hotspots to furnish an experience where Millennials will be exposed to the Stickley brand.

Stickley currently furnishes the School of Citizenship at Syracuse University. Stickley can captivate Millennials at a very early age by establishing a presence in universities and other higher education institutions. Their location will associate the brand to be scholarly and sophisticated. We suggest that Stickley expands their furnishing to more distinguished institutions in the area like Cornell University, Colgate University, University of Rochester, Ithaca College, etc.

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Recommendations

We also concluded that experience-seeking Millennials love to travel. Stickley can furnish airport terminals, restaurants, and cafes for people to enjoy as they wait for their flights to their next adventure. We suggest that Stickley furnishes the Syracuse Hancock International Airport and the Buffalo Niagara International Airport to begin.

We highly suggest that Stickley Audi & Company partners with AirBnb, a website for people to rent lodging. On this website, property owners rent out spaces for people to stay in. A large number of Millennials use this technology to travel around the United States and even abroad. At Tetra, we came up with the idea that Stickley can furnish a host home that is a popular destination for Millennials so that they can have an experience where Stickley furniture was present. That way, Stickley is associated with the experience of travel, and the comfort of the host home provided by Airbnb.