Transcript Understanding the 50+ Population

Marketing to The New 50+ Population:
It’s Not Your Parents’ 50+ Population
American Marketing Association
Marketing Research Conference
September 27, 2005
Does this look familiar to you?
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Which group includes your age?
 18-24
 25-34
 35-49
 50+
What’s wrong with this picture?
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The 50+ market is NOT monolithic
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As complex and diverse as younger groups
Includes three distinct generations!
 GI Generation (Before 1925)
 Silent Generation (1925-1945)
 Leading Edge Baby Boomers (1946-1955)
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A word about demographics
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82 million are 50 or older -- 28% of the population
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By 2020, 116 million will be 50 or older -- 36% of the population
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When the Boomers begin turning 65 between 2010 and 2020 the
65+ population will grow 35%, while the under-65 population will
increase just 4%
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Beyond Demographics
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It’s even more important to understand where they are “coming
from”
Cohort groups are most influenced by events in their formative
years -- from 8 -18
Core values are established
The pull of the cohort group is redefining age
50 just isn’t what it used to be
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GI Generation
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Born into a world without television
Grew up during the Depression,
fought in WW II and were defined
by both
Created the world we live in today - consumerism, suburbia, discount
shopping, fast food, highways
Believed in “the future” and the
American Dream, fueled by the GI
bill
First generation to live long enough
to enjoy life after work
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The Silent Generation
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Came of age during the Cold War,
years of conformity
Women were encouraged to marry,
discouraged from having careers
Defined more by what they weren’t
than what they were--neither war
veterans nor boomers—like the
proverbial middle child
When the turmoil of the 60s caught up
with them, there was a huge backlash
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Levittown, NY 1948
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The Boomers
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Leading Edge Boomers (born ‘46-‘55) are all over 50
 Came of age during the first child-centric era, the first mass
consumers
 The 1950s was a time of unprecedented growth and
prosperity
 The Woodstock generation, the protest generation
Formative years were the turbulent 60s
 Cold War, assassinations, Vietnam
 Civil Rights movement, Women’s
movement, student protests
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The Boomers
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Have always embraced the new and
unknown, maybe because they felt
so safe and secure
Their numbers alone would be
enough to change the world of
aging, but it is their expectation that
business and industry should meet
their needs that is redefining
everything
 “age rebelliously”
 “60 is the new 30”
 “the new middle age”
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GI Generation - 10 million, 80 and older
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Optimistic
Patriotic, sense of history
Entrepreneurial
Can-do spirit
Outer-directed
Traditional values, family
oriented
First “senior citizens”
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Silent Generation - 42 million, 60-79
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More cautious
Little sense of their place in
history
Corporate rather than
entrepreneurial
Outer-directed, mediators
Highest rate of divorce
Never felt “young” till they were
middle aged
First beneficiaries of the
Women’s and Civil Rights
Movements
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Leading Edge Boomers – 40 million, 50-59
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Rebellious and self-confident
Connected to the times in which
they grew up
Best educated, professionals
Made up their own rules
Inner directed, individualistic
Redefined gender roles and
relationships
Married later or not at all
Re-inventing aging and
“retirement”
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Communications Implications
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GI Generation
 Watch more television
 Patriotic, traditional values
 Respond to messages showing them as independent
Silent Generation
 Still read newspapers regularly
 Value opinions of experts
 Respond to images of extended families, groups of friends
Baby Boomers
 Use the Internet for information and shopping
 Anti-authority, less likely to respond to testimonials
 Respond to nostalgic settings, especially from the sixties
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Learning more about the 50+ Market
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Opinion 50+
 Omnibus study from TMR, Inc. among a projectable
sample of 500 people per month, or 6,000 per year
 Quick, cost-effective way to size a market, identify
behaviors, test purchase intent, or learn about
attitudes
 Studying retirement and home furnishings this month
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Redefining Retirement—Age
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More than 1 in 5 Boomers expect to retire after the age of 65
Expected Age of Retirement
Among Baby Boomers Who Haven't Retired Yet
30%
32%
15%
8%
Before 60
7%
60-64
65
66-70
Source: Opinion 50+, July 2005
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71+
Base=113
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Redefining Retirement—Work
Activities in Retirement
Among Boomers
50%
46%46%
46%
44%
32%
30%
29%
28%
26%
28%
17%
14%
6%
6%
3%
Work FT
Work PT
Family
Source: Opinion 50+, July 2005
Volunteer
Retired
Travel
Reading
Not yet retired
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Hobbies
Gardening
Base=501
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Affluence Over 50
Second Home/Pleasure Boat Ownership
by Generation
16% 16%
13%
12%
12%
10%
12%
4%
Total
GI
Own Second Home
Silent
Boomers
Own Pleasure Boat
Source: Opinion 50+, July/August 2005
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Home Furnishings
Refurnishing or Remodeling Primary Residences
37%
30%
28%
25%
17%
15%
13%
Total
GI
24%
Silent
Past year
Boomers
Next year
Source: Opinion 50+, July 2005
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Base=501
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Healthy Self-Image
How would you describe your health?
37% 37%
36%
30%
26%
24%
23%
19%
17%
15%
12%
12%
5% 5%
Excellent
Very good
Good
GI
Silent
Fair
4%
Poor
Boomer
Source: Opinion 50+, July/August 2005
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Healthcare treatments
What kinds of medications are you taking/alternative treatments
are you using?
94%
83%
65%
48% 47%
53%
48%
42%
38%
31%
17%
12%
Taking Rx
Taking OTC
GI
Taking Supplements
Silent
Using Alternative
Treatments
Boomer
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Presence of Children Under 18
Children Under 18 Living In Household
23%
12%
3%
Total
GI
4%
Silent
Source: Opinion 50+, July/August 2005
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Boomers
Base=724
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Internet Usage
Access To The Internet
83%
63%
51%
34%
Total
GI
Silent
Source: Opinion 50+, July/August 2005
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Boomers
Base=1002
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Internet Activities
Main Activities On The Internet
64% 64%
57%
57%
54%
47%
31%
27%
17%
E-mailing
Reading
news
28%
26% 25%
23% 26%
22%
25%21%27%
19%
14%
14%
Booking
travel
GI
Playing
games
Silent
Other
shopping
Healthcare
information
Financial
information
Boomers
Source: Opinion 50+, July 2005
Base=635
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Learning more about the 50+ Market
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Traditional research
 Surveys—phone, central location, online
 Focus groups
Seminars and workshops
 Product-specific, category-specific
 New product development, positioning,
communications
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Main Take-Aways
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Three segments in the 50+ population
 GI Generation (80+)
 Silent Generation (60-79)
 Baby Boomers (50-59)
They are not as different from younger generations as you might
think
 Internet usage
 Presence of children
 Affluent, and will spend on themselves
Communications strategies and executions should be tailored to the
segments’ “personalities.”
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