Marketing to The New 50+ Population: It’s Not Your Parents’ 50+ Population American Marketing Association Marketing Research Conference September 27, 2005

Marketing to The New 50+ Population:

It’s Not Your Parents’ 50+ Population

American Marketing Association Marketing Research Conference

September 27, 2005

2AMA Marketing Research Conference

Does this look familiar to you?

Which group includes your age? 18-24 25-34 35-49 50+

What’s wrong with this picture?


The 50+ market is NOT monolithic

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)


A word about demographics

82 million are 50 or older -- 28% of the population

By 2020, 116 million will be 50 or older -- 36% of the population

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%


Beyond Demographics

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


GI Generation

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


The Silent Generation

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

Levittown, NY 1948


The Boomers

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


The Boomers

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”


GI Generation - 10 million, 80 and older Optimistic Patriotic, sense of history Entrepreneurial Can-do spirit Outer-directed Traditional values, family

oriented First “senior citizens”


Silent Generation - 42 million, 60-79 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


Leading Edge Boomers – 40 million, 50-59 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”


Communications Implications

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


Learning more about the 50+ Market

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


Redefining Retirement—Age

8%

32% 30%

15%

7%

Before 60 60-64 65 66-70 71+

Expected Age of Retirement Among Baby Boomers Who Haven't Retired Yet

More than 1 in 5 Boomers expect to retire after the age of 65

Source: Opinion 50+, July 2005 Base=113


Redefining Retirement—Work

6%

3%

14%

32%

46%46%

6%

28%26%

50%

46%44%

29%30%

17%

28%

Work FT Work PT Family Volunteer Travel Reading Hobbies Gardening

Activities in RetirementAmong Boomers

Retired Not yet retiredSource: Opinion 50+, July 2005 Base=501


Affluence Over 50

13%12%

10%

4%

12% 12%

16% 16%

Total GI Silent Boomers

Second Home/Pleasure Boat Ownership

by Generation

Own Second Home Own Pleasure Boat

Source: Opinion 50+, July/August 2005 Base=1002


Home Furnishings

30%

17%

25%

13%

28%

15%

37%

24%


Refurnishing or Remodeling Primary Residences

Past year Next year



Healthy Self-Image

12%

17%

19%23%

26%

36% 37% 37%

30%

24%

15%

12%

5% 5%4%

Excellent Very good Good Fair Poor

How would you describe your health?

GI Silent BoomerSource: Opinion 50+, July/August 2005 Base=1002


Healthcare treatments

94%

83%

65%

48% 47%53%

48%42%

38%

12%17%

31%

Taking Rx Taking OTC Taking Supplements Using AlternativeTreatments

What kinds of medications are you taking/alternative treatments are you using?

GI Silent Boomer


Presence of Children Under 18

12%

3% 4%

23%


Children Under 18 Living In Household



Internet Usage

63%

34%

51%

83%


Access To The Internet



Internet Activities

64% 64%

57%

17%

27%31%

14%

22%26% 25%23% 26%

14%

19%

28%25%21%

27%

47%

54%57%

E-mailing Readingnews

Bookingtravel

Playinggames

Othershopping

Healthcareinformation

Financialinformation

Main Activities On The Internet

GI Silent Boomers



Learning more about the 50+ Market

Traditional research Surveys—phone, central location, online Focus groups

Seminars and workshops Product-specific, category-specific New product development, positioning,

communications


Main Take-Aways

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.”

Documents

Marketing to The New 50+ Population: It’s Not Your Parents’ 50+ Population American Marketing Association Marketing Research Conference September 27, 2005