Transcript presentation_final

Population Aging
50plus market
A unique chance to grow
2011/06/14
Executive summary
Population aging : a growth opportunity
Opportunies & Threats for Nestle Waters
50plus market : facts and figures
Examples in food industry
Actions for Nestle Waters
Nestle : Key actor of Global Aging
Population aging :
important possibility
to grow
60plus in 2000 and 2020
Pourcent of the population aged 60 ansand over, 2000-2020 (Source Senior Strategic)
21
24
16
18
21
19
16
13
14
11
13
2000
18
8
13
2020
Population ageing : Impacts for companies
Short-term growth
Rapid changes in market shares between actors
Rapid demorgaphic changes in some countries (China will age before being riche)
Economic risk in 15-20 years in developed countries (Oxfort Aging 2010)
Mature population = mature decisions
Longer renewal cycles
Some secteurs will grow : health, housing, food, technologies for aging
Some secteur wil decrease : automotive, small appliances (part of)...
« Global warming, globalisation of the economy and population aging are the 3
main challenges of the 21st century » Frederic Serriere NY 2010
2 main markets
Old age market
50plus market
Opportunities &
threats for Neslte
Waters
Opportunies & Threats for Nestle Waters
Opportunities
- Ppopulation aging : unique growth opportunity for Nestle Waters
- This is the moment to be the first on the market
- Some solutions are « easy to implement » > Quick wins
Threats
- Thirst sensation decreases with aging = mineral water market could decline in
10/15 years in aging countries. The prevention of dehydration is a must for the
market.
- Boomers (richest and largest generation) arrive a « consumption cycle end ». They are less loyal to brands. (Decrease by 40% 2011 vs 2009 of impulsive
consumption - Source : Focalyst)
- New actors - (Phenomenon Facebook vs. Google in Social Medias)
> Nestle Waters needs to act now
50plus market
Facts & Figures
Facts & figures
43% of revenues (up by 15% by 2020)
51% of mineral waters in Europe
3200 billions euros of purchasing power (Europe – Estimation Senior Strategic)
72% of financial investments
60% of housing
75% of high-end vehicles
6% of the revenues for children
and grandchildren
35% of purchases of low-fat meals
3/5th of home food market
50% of for beauty products
56% of total insurance.
Sources : Eurostaf, Euromonitor, Senior Strategic
Who are the 50plus
40
65
50
Baby
boomers
1960
1950
70
80
Seniors
1940
1930
90
Elderly
1930
Boomers (50/65)
Affluence : most important generation in developed
countries with the highest revenues. They've got, for
the moment, the ressources to get what they want.
Health & Wellness : for boomers, 60 is today's 40.
They look for foods and personal care that keep them
strong and vital for their later years
20% of the
developped countries'
population
Revenues 30% above
average
Value for money : it's not low price. Boomers define
it depending on their life situations and aspirations
Ethics & Environmentalism : Boomers respond to
brands who share their convictions and act on them
Less loyal – Desire for new experiences : it's
what's always defined this generation.
Pleasure : very important value for this generation in
many secteur : food, tourism...
Their needs
Age in good shape
Convenience
Quality
Environment friendly
Authenticity
Seniors (65/78)
Loyal to brands : they have been loyal to brands
which reinsurance them.
Health : first main health issues. Looking for food
16% of the
developped countries'
population
compatible with their health situation
Once financially conservative, they are now
willing to spend money on themselves. But, crise push
savings.
Fellowship has always been important for them.
Tend to become more conservative while
aging.
Revenues equal to
average
Their needs
Reinsurance
Practicity
Healthy products
Examples in
Food Industry
Minute Maid - Premium Heart Wise
> Based on health issue prevention
Plant sterols have been
shown to reduce the level of
bad cholesterol.
Minute Maid received in 2003
approval from the Food and
Drug Administration to market
the product's potential health
benefits.
Consumers will need to drink
16 ounces of the orange juice
daily to get the sufficient
sterols to alter their
cholesterol levels.
Pepsi Natural and Throwback (2009)
> Based on nostalgia
“We’re complementing and
reinforcing our core soft drink
offerings with a hat trick of innovative
products. Pepsi Natural and the
Throwback duo give consumers the
opportunity to refresh how they
experience soft drinks – from a
premium, all-natural beverage to a
fun, retro twist on two of our most
popular brands“
Frank Cooper, VP of portfolio brands,
Pepsi-Cola North America
Beverages.
> advertisement video xxxxxxxxxxxxx
Danone
> Health and aging well
PUB EVIAN
Unilever
High experience on the 50plus market : Dove, retail...
"The time is long overdue to rethink Baby Boomers …With their focus on health
and well-being, they want to continue maintaining the vitality they now enjoy. As
Boomers age, retailers who'll know how to help them stay vibrant and connected to
what they care for most in life will be the winners."
Kevin Havelock, President, Unilever U.S.
General Mills : Boomers with health
> Health
> Single-serving versions
"We'll continue to enhance our current products and develop
completely new ones to help boomers defy the calendar" Ian
Friendly, chief operating officer and exec VP-U.S. retail
Other brands
Kroger
Active Lifestyle
Vivinal GOS dairy-derived
prebiotic product
ELATIONS : Glucosamine
and chondroitin
Actions for
Nestle waters
Challenge for Nestle Waters
Satisfy a greater number of generations (5 vs 4),
with Boomers as an important target
with young customers to conquer
while maintaining the Seniors' water consumption
Strategies to succeed this challenge
Aging well
Aging Well
Aging well is N°1 request for 50plus. A good hydration may be on
answer.
Convenience
Health
Packaging
Diabetes, Cognitive illness, Osteoporosis... are main concerns of 50plus
Packaging must be adapted to aging population with an « easy to » strategy
Services
Aging population requests more services (informations, coaching, delivery...)
Retail
Retails must adapt to aging population.
Focus on
Boomers
Loyalty
Needs
Boomers are known to be less loyal to brands. Nestle needs to address this
in order to keep this key generation
The best way to target Boomers is to focus on needs not on age.
Keep Seniors
consumption
Water Old Age
Establish « standards » or water consumption for Seniors
Close to
Sales
Aging population means : migration towards town centers & less possibilities
to move.
Strong sales strategy is need to adress 50plus market.
Partnership
Good partnerhips strategy could give uge advantages to Nestle Waters
Acquisition
Study the opportunities to acquire water brands well position on the 50 plus.
Global
Communication should should not focus on age but on « all generation »
with common values and needs such as Hydration
Functional waters keep continue to focus on functional benefits resquested
by Boomers generation.
Sales &
Partnerships
Communication
Specific
Water as a factor of successful aging
Aging Well & Well being & Pleasure
Fact : aging well is the number one need of the 50 plus. In the food
industry they want both : pleasure and health.
Health issues : choresterol, diabetes, menopause, osteoporosis,
cognitive functions
Convenience
Product & packaging : « Easy Easy »
Easy to : use, read, carry, handle, open, understand benefits, shop,
pour...
Easy for 50plus = easy for all generations = Universal Design
Format based on 50plus needs and compatible with younger
generations
Environment : very important for Boomers
More informations on packaging
Convenience
Services
Home delivery
More Global Informations on health
Retailing
Start dialogue about Seniors to retailers
Easy access to Nestle products
Unilever shows
retailers how to
follow the
money
“When our boomer and 50-plus
customers plan home improvement
projects, we offer the products, services
and know-how they need to create an
intergenerational living space that
welcomes family members of all ages
and abilities.”
Roger Adams, CMO and senior vice
president of Marketing for The Home
Depot.
Focus on Boomers
Fit their needs – Tell them they are important. This generation feels that
they have been ignored for the last 15 years.
Focus on Well Being and Aging Well with Healthy Hydration and
Functional benefits
Enlarge the current representation of « family » (include Seniors in
communications) « Waters for All Generations »
Focus on innovations and « easy to »
Develop a competitive strategy vs tap water
Prove and demonstrate benefits
Environment is a must
Maintain the Seniors consumption
Promote water consumption as a need for old age
Use prescriptors (doctors, gynecologists, hospitals, nutritionists, carekeepers...)
Publish reports and studies.
Establish « standards » of water consumption for Seniors
Be close to Seniors
Home delivery
Better packagings
Use carekeepers
Develop communication program with insurance & pension cies
Develop a Care and Benevolence image
Sales & Partnerships
Retails / Distributions
Start dialogue about Seniors to retailers. Help them to sell to Seniors
Explore new distribution channels
Retail Convenience delivery : home, drive in, through e-com, retailers, parking, special
transports, for retired households, free delivery for very loyal customers.
Partnership
Retired associations (Carp, AgeUK, Aarp...)
Services network. Ex. : Comfort Keepers (Sodexho-US), Una (France)...
Insurance & pension companies
Professional associations (lobbying)
Companies already on Seniors (Saga in UK, Docomo in Japan...)
Acquisitions
Study the acquisitions of water brands well positionned on 50plus market
Communication in Aging Countries
(Europe, North America) : ageless communication
Waters for All Generations
Enlarge the current representation
of « family » (includes Seniors in
communications)
Ageless communication
Keep modernity & target 50plus =
avoid ghettoisation =
Focus on Healthy Hydration &
Functional benefits
Intergenerational communication
Mainly products designed
for Boomers with an
Ageless communication
strategies
Elderly
Baby boomers
Mainly product designed
for elderly and
communication directly
Generational communication
Senior Strategic ComGI Map
Communication Strategies
Intergenerational communication
Waters for differente
generations should be
advertised with
Ageless Strategies
Elderly
Baby boomers
Functional waters for
one generation may
be advertised on a
benefit
Products for the old
age could use a
« Senior communicati
on »
Generational communication
Nestlé Pure Life waters & 50plus
In aging countries : target 50plus and keep younger generations :
Universal Communication based on commun values between Boomers and
younger generations.
Enlarge the current representation of « family »
Include 50plus in media plan & P.R.
In US and Canada : study the opportunies to partnership with AARP and Carp
Example of Pepsi targeting Boomers and Young on one single advertisement :
http://fiftiesgeneration.blog-idrac.com/2010/11/26/du-pepsi-pour-les-papy-boomers/
Functional waters & 50plus
Ageless communication & functional benefits and histories
Example : Hepar focused on Magnesium
Contrex is a special case : conquer young generations and
keep actual 50plus customers
Local waters & 50plus
Ageless & based on
- Origine & heritage
- Environment
- Benefits
Idea in US : Study the possibity for a US local brand to be
the 50plus water across the US
Nestle as a
key actor of
Global Aging
Nestle as key actor in Global Aging
Nestle is one of the right company to be an actor
on Global Aging and Aging Well
Work with an international institut on Aging
Publish researches
Publish comprehensive studies for medias and
customers
Sponsor and organise conferences on Aging
Develop an international network of experts on Aging
Example : Global survey on ageing and retirement by
HSBC and Oxford Aging
See the Global Aging Actions as a strategy to
conquer new territories
Now, this is the moment
A unique chance for
Nestle Waters to grow
- The first boomers have already 65
years
- Success stories on aging are now
- The big players are beginning to
show interest
- The market shares are taken now.
Syndrome (Google vs. Facebook)