Transcript TAM282_Babyboomers

Baby Boomers
1946-1964
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Baby Boomers: Overview
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Born between 1946 and 1964
Size: 78.2 million
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Sub-segments:
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26.3% of the U.S. population
Older Boomers
Younger Boomers
Broad age range: some are grandparents
while others have young children
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Older Boomers
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Born between 1946 and 1955
Number of households: 21.9 million
Spending power: $1 trillion
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Average income: $58,889
Average spending: $46,160
Mindset characterized by individuality and
emphasis on youth
More likely to purchase personal insurance
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Younger Boomers
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Born between 1956 and 1964
Number of households: 23.9 million
Spending power: $1.1 trillion
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Average income: $56,500
Average spending: $45,149
Children are still a priority
Have greater mortgage payments
Less likely to buy personal insurance
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Marketing Techniques
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Subtlety
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Do not want to be made to feel old
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This means making store layouts and product
positioning easily accessible
Emphasis on customer service
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Typical Products
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Apparel
Home Furnishings
Automotive
Travel
Personal Insurance
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Apparel Marketing
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Spend 13% more than national household average
on women’s apparel and 11% more on men’s
apparel
Want clothes that are fashionable, but ageappropriate
Prefer shopping in department stores
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Format familiar since childhood
Don’t have as much choice for apparel
More apparel companies are beginning to target
baby boomers
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Apparel Marketing
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Ralph Lauren
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Focuses on selling a lifestyle
rather than a product
Multiple brand lines at different
price points
Images from:
http://about.ralphlauren.com/campaign
s/default.asp
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Apparel Marketing
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Chico’s
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Image from:
http://www.chi
cos.com/store
/home.jsp
Use vanity sizing to boost the selfesteem of customers
Have boomer-aged women
working in stores
Create designs that are
fashionable and flattering on the
bodies of Boomer-aged women
http://media3.washingtonpost.com/wpdyn/content/photo/2008/03/27/PH2008032702868.jpg
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Apparel Marketing
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Not all apparel companies that have begun
targeting baby boomers have been
successful
Gap’s Forth & Towne
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New brand featuring four different product lines
for women 35 and over
Closed 18 months after it’s launch
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Clothing was considered either too conservative or too
young looking
Gap felt that it didn’t have enough long-term potential
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
Automotive Marketing
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Two-income boomers are the fastest growing
segment of the automotive market
Many are now “empty-nest” boomers as they
reach their early to mid 50’s
Mid-life crisis era
Nearly all automotive industries have
targeted baby boomers as the most potential
customers.
The Comparison
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Household income
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GEN Y $56,520
GEN X $82,931
•
GEN Y 8.5%
GEN X 6.5%
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BOOMERS 6.0%
Auto purchasing power (in
billions)
BOOMERS $84,217
Vehicle purchase price
GEN Y $24,000
GEN X $28,000
BOOMERS $27,000
Monthly vehicle payment
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Household income spent on
vehicle
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GEN Y $400
GEN X $450
BOOMERS $418
Source: Strategic Vision 2007
research
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GEN Y $22.89
GEN X $65.10
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BOOMERS $128.70
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Volkswagen
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Beetle
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Car of the Past
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Reminds boomers of
their younger days
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Sense of familiarity
Other Cars
REALLY feel Younger!
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The car industry has seriously focused on
important aspects of cars to appeal to
boomers affinity to feel younger!
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Good Vibrations!
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Everything has to sound just right from the sound of
the car door as it closes to the “purr” of the engine!
Driving Forces
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Strength of the car as well as performance to match a
young energetic driver
Home Furnishings Marketing
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72 percent of Baby Boomers are
homeowners (higher than the national
average of 67)
83 percent of them are employed full-time
This influx of money allows them to home
decor
Home Furnishings Marketing
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Martha Stewart Living
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Although Martha was
born a few years
before the Baby
Boomer era began,
most of the older baby
boomers are used to
her products because
they have evolved
along with this age
group.
Home Furnishings Marketing
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From food to
gardening to home
decorating, Stewart
has a variety of
products that suit the
needs of all Baby
Boomers
Home Furnishings Marketing
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Mohawk Industries
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The leading producer
and distributor of
household flooring
worldwide
78 percent of the nonbusiness consumers
are between the ages
of 45 and 65
Baby Boomers Marketing
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Largest Consumer Group
1 every 10 seconds
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Over 4 million every year
Wealthiest
More disposable income
Products and Services they
want
Make life easier
help reach, grip
Look, Feel younger
think 10-20 younger
Kids toys and Clothes
grandparents
Media
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Print
TV
Radio
Internet
Embrase the new
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More ‘and’ then ‘or’
How to Market Baby Boomers
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Prove yourself everyday
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Give ways to get more information
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Not brand loyal
Blogs
Market Research
Past Custmers
Advertise people in between
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Not young young
Think best still to come
Not old till 70’s
References
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“Love Those Boomers.” Business Week. 2005. McGraw-Hill Companies, Inc. 28 May
2008 http://www.businessweek.com/magazine/content/05_43/b3956201.htm.
Misonzhik, Elaine. “Sixty Something.” Retail Traffic. 2006. Penton Media. 28 May
2008 http://retailtrafficmag.com/development/retail_sixty_something/.
Seckler, Valerie. “Will Boomers Come of Age in Fashion Ads?” Women’s Wear Daily.
2004. CondeNet, Inc. 29 May 2008
http://www.agewave.com/media_files/wwd.html.
Shidler, Lisa. “Baby Boomers are Tough Customers.” Investment News. 2007. Crain
Communications, Inc. 28 May 2008
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20070312/FREE/7
0308028/1002/INIssueAlert01.
Martha Stewart Living. Martha Stewart Living. 2008. 1 June 2008
<www.marthastewart.com>.
Missouri Small Business Development Center. Baby Boomers - Know This
Consumer. 2008. 1 June 2008
<http://www.missouribusiness.net/docs/baby_boomers.asp>.
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008
References Cont.
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Mohawk Industries, Inc. Mohawk Industries, Inc. 2006. 1 June 2008
<http://www.mohawkind.com/>.
Holstein, William J., and Mike Tharp.
"Boomers, Start Your
Engines." U.S. News & World Report 128.25 (2000): 1-36.
Halliday, Jean. "Honda's in Hot Pursuit of Gen X." Adveritsing Age 78.36
(2007): 8.
Bloom, Sara. "Marketing to Baby Boomers: Challenges Andopportunities
are Greater Than Ever." The Hearing Journal 52 (1999): 1-19. 30 May
2008.
Bloom, Sara. "Marketing to Baby Boomers: Challenges." Sept. 1999. The
Hearing Journal. 30 May 2008
<http://www.audiologyonline.com/theHearingJournal/pdfs/HJ1999_09_
pg23-29.pdf>.
Katlyn Griffin, Kelly Davey, Yee Lee, Quincy
Damekue- Summer 2008
References Cont.
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Gilmartin, Jim. "Baby Boomer Marketing & Senior Marketing." Coming of
Age Incorporated. 30 May 2008 <http://www.comingofage.com/babyboomerarticles/Baby%20Boomer%20Marketing%20&%20Senior%20Marketin
g%20-%20Consumer%20Behavior%20Marketing.pdf>.
"Marketing to Baby-Boomer Women." NFIB the Voice of Small Business. 04
Apr. 2007. National Federation of Independent Business. 1 June 2008
<http://www.nfib.com/object/IO_32916.html>.
"US Census Press Releases." US Census Bureau. 09 Aug. 2007. US
Census Bureau. 29 May 2008 <http://www.census.gov/PressRelease/www/releases/archives/facts_for_features_special_editions/0
06105.html>.
Katlyn Griffin, Kelly Davey, Yee Lee- Summer
2008