Older Consumers: Destroying Marketing Myths : Market Research Report

Older Consumers: Destroying Marketing Myths

Published by: Datamonitor

Published: Nov. 8, 2004 - 87 Pages

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

Hot topic 3

The future decoded 3

Action points 5

CHAPTER 2 THE FUTURE DECODED 13

The ageing population is changing the Seniors group 13

The Senior age group is growing the fastest 14

Seniors are still being ignored by marketers 17

Increasing diversity within the Seniors group 17

Seniors experience more life stages than previous generations 17

Consumers are having children later in life 19

Increase in cultural diversity among Seniors 21

Polarization of income is occurring within the Seniors group 21

Younger Seniors have the highest levels of disposable income 22

Older Seniors have weaker finances following retirement 22

Seniors are becoming more spendthrift 24

Changing retirement is impacting Seniors’ spending on CPGs 24

Younger Seniors have different attitudes to previous Seniors 27

The post-war generation is changing the Senior group 27

There is a lack of social cohesion within younger Seniors 29

Generational experiences will impact consumption patterns 29

Social interaction among Seniors is in decline 31

Seniors are more demanding than previous generations 31

Seniors increasingly desire novel experiences 31

Seniors are more experimental than previous generations 32

Seniors desire more convenience than previous generations 34

Seniors are more health conscious than previously 35

Activity levels vary among Seniors 36

Seniors are eating healthier than previous generations 37

Rising appearance consciousness among Seniors 47

Seniors desire independence and control 51

Seniors have a thirst for knowledge 52

Seniors are still concerned with their image 53

Seniors desire quality products 53

Conclusions 54

CHAPTER 3 ACTION POINTS 56

Target attitudes, not age groups 56

Shift the “center of gravity” using marketing campaigns 57

Use ageless marketing to target Seniors 58

Target Seniors with healthy, quality and convenient products 63

Target Seniors with convenient products to facilitate their lifestyle 63

Offer Senior-specific health benefits in convenience products 65

Convenient products must provide a quality food experience 65

Provide products in quantities that appeal to Seniors 66

Target employed Seniors’ consumption in the workplace 67

Design packaging to appeal to Seniors 68

Communicate to Seniors effectively 69

Avoid patronizing Seniors or using stereotypes 69

Avoid using a “glitzy” approach 69

Keep messages honest, transparent and literate 70

Provide information to satisfy Seniors’ thirst for knowledge 72

Use positive advertising in marketing food and drinks to Seniors 74

Be careful in the use of language in advertising and packaging 76

Use appropriate humor aimed at Seniors 77

Using nostalgia in advertising can be successful 78

Use appropriate channels of communication 78

Use partnership marketing to modernise brands for Seniors 80

Create links with third parties for credibility among Seniors 81

Links with health bodies or sporting events provide credibility 81

Links with charities will promote ethical values 81

Use Customer Relationship Management to target Seniors 82

CHAPTER 4 APPENDIX 83

Supplementary data 83

Definitions 84

Research methodology 85

References 85

News Sources 85

Industry Sources 85

Government Sources 86

How to contact experts in your industry 86

LIST OF TABLES

Table 1: Definition of consumer groups 13

Table 2: Compound annual growth rate (CAGR) of consumer groups in Europe and the US, 2003-2008 14

Table 3: Life expectancy in Europe and the US (years), 2000 - 2025 15

Table 4: Seniors population in Europe and the US (m), 1998 - 2008 16

Table 5: Crude divorce rate (divorce per 1000 people) in Europe and the US, 1970-1998 18

Table 6: Average age of female at birth of first child in Europe and the US, 1975 - 2005 20

Table 7: Mean disposable income per capita by age (€) in Europe and the US, 1998 - 2008 23

Table 8: Average age of effective retirement in Europe and the US (years), 1995 - 1999 25

Table 9: Seniors in employment (m) across Europe and the US , 2003 26

Table 10: Macleans’ 40+ targeting age blurring among Seniors 29

Table 11: Proportion of Seniors living alone (%) in Europe and the US, 1995-2025 31

Table 12: Prevalence of hypertension by age group (%) in Europe, 2002 39

Table 13: Products targeting Seniors’ need to reduce blood pressure 40

Table 14: Products targeting diabetes sufferers 41

Table 15: Cholesterol reducing products 42

Table 16: Products appealing to Seniors’ desire to prevent osteoporosis 43

Table 17: Products to aid digestion 44

Table 18: Concern about GM foods affecting eating habits by age (%) in the UK, 2002 46

Table 19: GM and additive-free range targeting Seniors 46

Table 20: Examples of snacks providing consumers with nutritional content for specific health needs 47

Table 21: Overall number of personal care occasions by age group (millions) in Europe and the US, 2003-2008 48

Table 22: Pokka Amino Lemon - positive nutrition for Seniors 50

Table 23: Hair care products aimed at targeting the different needs of Seniors 51

Table 24: Products targeting Seniors’ desire to trade-up 54

Table 25: Ageless images from the New Balance marketing campaign 61

Table 26: Marketing messages with wide generational appeal 63

Table 27: Examples of convenient foods targeting Seniors 64

Table 28: Products that provide convenience and quality experiences 66

Table 29: Individually portioned products that appeal to Seniors 67

Table 30: Best practice in packaging to meet Seniors’ needs 69

Table 31: Examples of positive and negative advertisements targeting Seniors 76

Table 32: Partnership marketing alters the image of brands 80

Table 33: Senior population (m) in Europe and the US, 1998 - 2008 83

Table 34: Importance of specific channels of communication in targeting seniors across Europe and the US, 2004 84

Table 35: Definition of terms 84

LIST OF FIGURES

Figure 1: Seniors poulation by age, 2003 16

Figure 2: Reasons for being single for Senior consumers in Europe, by age group 2002 19

Figure 3: Proportion of US consumers that try to stick to well-known brand names (1975-2000) 34

Figure 4: Proportion of Europeans selecting factors perceived to be among the two most important influences on health, by age, in 2003 38

Figure 5: Age profile and purchase motivations for core, secondary and sporadic consumers of organic and natural food and drinks 45

Figure 6: Global values concerning freedom of choice and control over life patterns, by age, 2002 52

Figure 7: Target Seniors by shifting the “center of gravity” in marketing campaigns from their chronological age to their desired age 58

Figure 8: Images from the Spanish Actimel website 62

Figure 9: Convenient product that offers health and sensory benefits 65

Figure 10: Images used in the Dove “Real Beauty” campaign 72

Figure 11: Flora / Becel Pro-Active website provides information on health problems and actionable recommendations for Seniors 74

Figure 12: Most suitable communication channels for targeting Seniors 79

Abstract

Introduction
Trends in Seniors' behavior are shattering traditional assumptions of the group. Companies need to understand and interpret the changes in order to capitalize on the new emerging opportunities. Seniors are demanding novelty and convenience from purchases but are not prepared to sacrifice quality, health and individuality.

Scope
Exhaustive review of best practice NPD and marketing campaigns from around the world
Comprehensive primary research covering senior industry figures to uncover the latest thinking in targeting Seniors
Actionable recommendations explaining how to effectively develop and position a brand with respect to the market changes
A comprehensive analysis of the Seniors' group covering demographics, social issues and emerging unmet needs and behaviors
Highlights
The changing Senior group has resulted in the creation of a generation with higher disposable income but limited leisure time. Today's Seniors are more experimental and are willing to pay a premium to trade-up to higher quality, convenient food and drinks and those that provide proven health benefits

In 2003 Seniors accounted for almost 40% of all European personal care occasions, which is higher than younger groups who have traditionally been the focus of marketing activity in personal care. In Europe and the US the number of occasions amongst seniors is the fastest growing, with respective CAGRs over the next five years of 2.5% and 1.5%

Marketers often confuse 'habit' with 'loyalty' and believe Seniors are unattractive to target as they have fixed behaviors. However, Seniors often purchase out of habit rather than loyalty. Thus, providing Seniors' with information on the 'real' benefits of a product will encourage switching among Seniors and satisfy their thirst for knowledge

Reasons to Purchase
Learn new insights and uncover unmet needs about the highly profitable Seniors' group in Europe and the US
Recognize key trends in Seniors' behavior and understand how to capitalize on the new opportunities revealed
Discover how to tailor your NPD and marketing campaigns to more accurately target Senior consumer groups

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Older Consumers: Destroying Marketing Myths

Table of Contents

Abstract