Boomer News & Views

LIFE BEGINS AT FIFTY

LIFE BEGINS AT FIFTY .. A conference about marketers who have done something about developing new

products and services for the 50 to 64 age group.and how they and their agencies have developed

advertising that has successfully targeted this age group.

Announcing a conference on how leading authorities in the fields of financial services (banking and

investment organizations), travel & leisure, personal health, technology/electronics, fast food and

retailing have successfully developed products and services and how these companies have created

advertiing campaigns that have successfully targeted the new lifestyles of those consumers older than

50.

The recent Deloitte & Touche report - "Wealth with Wisdom: Serving the Needs of Aging

Consumers" etimates the spending power of people older than 50 to be at $1.7 trillion.

Companies and their agencies who are interested in presenting their successful case histories are

invited to contact Dr. Harris at mmrharris@aol.com

Burger King and the Mature Market

There was an article in the Business Section of today’s New York Times that in essence is the sum of all this Blog has been saying over the past few months.

The article is about a so-called “hot agency” in the Miami area—cited for being creative in both its creative approaches and its use of media. It is also the current agency for Burger King (and I wish them luck because I had experience heading up a major piece of that account years ago at another agency). Anyhow, the part that caught my eye was its mention of the agency creative staff—young folks sitting around in jeans and sneakers.

To what extent do you believe that group pays attention to any market segment other than itself? Based on my experience, less than none!

Considering only their Burger King business—not the other accounts mentioned—what to you suspect is the age group to which their campaign with the grotesquely masked King appeals? Did their research (if any) tell them the campaign and character has appeal beyond the teen and 20-something set? Does the agency (and Burger King) care about any other segment? Have they defined the real market for Burger King—overall and for specific types of menu items, for times of day, for meal occasions, etc.?

I have no current information other than a gut feeling—based on my experience with Burger King and my knowledge of the Mature Market—but it looks to me as if the agency and Burger King have written off anyone over the age of 25. Burger King went down that path once before—to their detriment

If I were Wendy’s and McDonald’s management, I would be holding parties in celebration—while I preparing my campaign to attract and cement loyalty among a real heavy using group, the Mature Market.

Comments anyone???

Boomers and Beyond, Part 2

As of January 1, 2006, the Boomer age spread will be 42–60. This spread may very well lead marketers to wonder about the extent a 42 year old and a 60 year old have something in common with each other, no less to a marketer—especially when the 42-year-old might be the 60-year-old’s baby brother (or sister).

Logically speaking, therefore, many marketers might conclude that the all-inclusive term Baby Boomers is meaningless in their strategic planning. For example:
• A 60-year-old empty-nest couple—whose youngest child has just graduated from college and who now have more disposable income and personal freedom than they have had in the past 15 years—might be contemplating a second, or retirement home.
• His kid brother of 42 is now planning paying for college, still has two more in high school, and is perhaps wondering how to tell his family they are about to be transferred to another city.

Wise marketers—or demographers, or sociologists—should even now be dissecting this seeming non-homogeneous group for further investigation. They might learn, for example:
• Older Boomers, (e.g., born 1946–1955, and age 51–60 in 2006) might be more similar to the later stage Depression Babies (born 1937–1945, and now age 61–69)—and might be more correctly labeled the Mature Market
• Younger Boomers (e.g., born 1956–1964, and age 42–50 in 2006) might be more like the early GenX segment (born 1965–1974, and age 32–41)—and might be more correctly the Pre-Mature Market

One conclusion of the foregoing might be: Is it not possible that the reason marketers have not put greater effort into addressing the Boomer segment is that it is so broad—and, therefore, dissimilar at the ends of the spectrum? And, is it not possible that this might me the reason marketers simply threw up their hands and concentrated on the more familiar 18–49 demographic?

Accordingly, a simple demographic definition of Boomer, or Depression Baby or Generation X should likely not be the basis of describing and addressing the members of these age ranges. Rather, it may be more likely that psychographic or lifestyle examinations of the extreme ends of all these segments will uncover similarities to their adjacent segments.

This could lead to new segment definitions—as well as new directions that marketers might consider to address for maximum strategic value.

For example, that this examination may reveal the “hot” target for marketers right now is not the broad and loosely connected Boomer segment per se, but a newly defined segment that consists of “Early Boomers” and “Late Depression Babies” (e.g., born 1937–1955…or age 51-69 in 2006) That is:
• In 1967, a 21 year old corporate beginner (born in 1946) had more in common with a 30 year old corporate middle-manager (born in 1937), than the same 21 year old had with his three-year old Boomer brother or cousin born in 1964
• In 2006, that now 60 year old Boomer more than likely has more in common with a 70 year old than he has with his 41 year old baby brother, sister, or cousin.

Accordingly, these ideas should lead marketers to explore the commonality that may exist with the “Early Boomer” and Late Depression Baby”—and determine the benefits that would accrue to themselves if they focus their immediate efforts on this newly defined “Mature Market.”

Boomers & Beyond, Part 1

Demographers have defined the post World War II Generation (born 1946-1965) as the Baby Boom Generation. Sociologists have delved deeply into this group and have written countless papers, essays, magazine articles, theses, and books—all of which attempt to describe the group, and account for the attitudes and behavior of its members.

Coincidentally, marketers, in recent years, have considered the notion that their wisest strategy for maximizing profits would be to focus their efforts on this group—a group that the U.S. Census Bureau reports “has the money.” Unfortunately for sales and stockholders, many of these marketers have done nothing but to do research, attend seminars—and give little but lip service to this strategy.

Assessing potential reasons for the lack of action on what seems to be a wise course suggests the likelihood that it may not be due to short-sightedness. Rather, it seems possible that the wide spread of ages in the Baby Boomer segment may be sending mixed messages—thus, causing confusion. And, as is well know, the human response to confusion is generally to dismiss and ignore those things that cause confusion.

Considering the possible causes for confusion suggests the following: As of January 1, 2006, the Boomer age spread will be 42–60. This spread may very well lead marketers to wonder about the extent to which a 42 year-old and a 60 year-old have something in common—especially when the 42-year-old might be the 60-year-old’s baby brother (or sister).

Logically speaking, therefore, many marketers might conclude that the all-inclusive term Baby Boomers is meaningless. Their thinking might take the following thread:
• A 60-year-old empty-nest couple—whose youngest child has just graduated from college and who now have more disposable income and personal freedom than they have had in the past 15 years—might be contemplating a second, or retirement home.
• His kid brother of 42 is likely now planning on paying for college, still has two more in high school, and is perhaps wondering how to tell his family they are about to be transferred to another city.

This reasonable train of thought might lead some marketers to discard the whole issue and fall back on the old reliable 18-49. But, what would a deeper analysis bring?

They may be older, but...

Here are two facts marketers and their advertising agencies need to consider (i.e., not ignore) as they plan next quarter’s budgets:
• 2004 Census data revealed that income in households headed by a person age 55-64 was $4,500 greater than in age 25–34 households.
• People in the 60+ age bracket are increasingly empty nesters, with all of their children finished with college. Thus, their income is available to themselves alone.

The result is that these people are now free—and can afford—vacations to Europe; cruises; winter skiing and summer beaches; restaurants of their choice, as often as they like; good wines; investments; a second home, timeshares; redecorating and remodeling; cars—and they do not stint on things relating to their health, including foods; exercise (and the right clothing for it).

They also have more income at their disposal for—and research shows that they buy—plasma televisions; computers; cell phones; PDAs; and digital cameras; and, of course, the grandchildren. They surf the net; buy on ebay and other sites.

In short, they are a hot consumer market that any marketer would, or should, be giving his proverbial eye teeth to get. But, aside from some ads in the AARP publications and the AAA magazine, the focus remains on the outmoded 18–49 media model!

Keep The Focus

I recently responded (privately) to a note sent in response to the very first posting of the Boomer Report. In it, the writer took issue with some of my statements—not because he disagreed, but because he had a different focus. That is, rather than considering the Boomers as a total segment, he addressed himself to the issue of the oldest Boomers—those who were born in 1946–1949 and whom he felt would now be heavily into thinking and planning for their retirement. This, he felt, should be the focus of Boomer Marketing.

After several exchanges on that issue, I decided to try bringing him back to the broader focus with the following note. I would love to hear from those of you who agree—or disagree!!

I think we are losing sight of the big picture here. With your focus on those who will be retiring (or thinking of retiring) in the next five years, you seem to be fixing on those Boomers born in 1946-1949. However, the bulk of the Boomers was born in the 1950s—and they are now in the 46-55 age range.

If you will read the balance of the postings to my Blog, you will note that my focus is to have marketers, advertisers and agencies dismiss the artificial 18-49 age range they use to set their strategic and media planning. The money here in the U.S. is in the hands of the 50+ crowd—and they are not shy about spending it. (BTW, the writer I am addressing here is Canadian)

My goal is to have these marketers forget (or make secondary) the ancient thinking about building their market long-term—and go after the market that now exists. That is, the 50+ crowd—which has the money and is (for the most part) eager to spend it on what is new.

Why this focus to my thinking and writing? It is simply because marketers are not willing to accept the fact that the long-term market (and the building thereof) is in itself a fiction. Loyalty to one brand or another is today a factor of “what have you done for me lately”—not habit.

Just A Little Older

We recently completed a focus group study for a consumer package goods product in which the recruiting specifications called for several groups of Baby Boomers…people over the age of (gasp) 45!

A few years ago this would have been an unheard of requirement. After all, who at that time wanted the opinions of people who were set in their ways, who were thinking of retirement, who were worried about their social security and Medicare—and who were so set in their ways that why should any self respecting marketer care at all what they thought?

Guess what. For the category covered in the research, these “over the hill” consumers provided insights into the product category and brand that had not occurred to the younger groups that were also part of the study.

The purpose of the foregoing is simply to point out that the “unheard of” way of considering the use of Boomers and older (i.e., Seniors) is now the old fashioned way. People today are living longer, working longer, playing longer, watch what they eat, and take care of themselves so that they stay fit longer and look younger longer.

They also drink beer and wine, take vacations, buy cars, date and have sex (yes they do!), join heath & fitness clubs, eat snacks, jog, stay up with the latest fashions, shop in supermarkets and department stores, buy and decorate new homes, give parties.....

In other words, for the most part they are not very different from GenX and GenY consumers except for one aspect. They are older!

Oh yes, they are also the largest and wealthiest segment in the world today!

Assisted Living

A few days ago I received a request from someone who was writing an article about the coming market for “Assisted Living Facilities.” The writer was interested in “the next generation of senior housing residents. Specifically, the group of seniors who will enter assisted living residences in the next 5-7 years.” The writer asked for my input on the following:

• “How would you define this market?”
• “How would you characterize their lifestyle?”
• “What about their income or spending habits?”
• “What do they expect in housing options?”

Inasmuch as I try to limit my writing to conditions (marketing & otherwise) that relate to Boomers (and even the older Boomers will likely not be ready for assisted living in the next 5–7 years), the request did set me to thinking. In the end I did respond—and I thought my response would make a useful posting.

I wrote the following:

If you are talking about today’s Baby Boomers—now age 41-59, then you are expecting some will be ready for assisted living when they are age 64–66. If you toss in the Wartime Babies (1940-1945) then you have the oldest today (age 65) as the likeliest candidates for assisted living in 5-7 years. Boomers themselves are further away.

Assuming this older group is not too dissimilar to the true Baby Boomers (and evidence suggests they are quite similar) then candidates for assisted living are:
• Well educated
• Financially secure

Because of their education and income position, they are up with the times and follow the trends. They own computers; are on the internet, where they shop, invest, do research, and, of course, are heavily into email. They also buy digital cameras, plasma TV, cell phones, new cars, etc. In other words, unlike what many marketers believe, they are not afraid to try new products. Oh yes, they travel!

In short, they are as “with it” as those 30–40 years younger

As far as housing—and likely with regard to a potential assisted living facility as well, they want to stay close to their family and friends—and had been planning to do so before their need to move into an assisted living facility. That is, they had planned to stay where they had been living for the past many years (as opposed to moving away to Florida, Arizona, or where have you)—many of them because of a desire to remain in a mixed-age neighborhood (the idea of a 55+ community, and/or being far from family and old friends being a turn-off).

With regard to housing options—and consistent with their other spending habits—this is a highly knowledgeable group of people. They want what is new and is modern and is convenient right now—and they will demand it in any assisted living facility they consider.

For that reason, the rise in the number of assisted living facilities (they seem to be springing up everywhere) is likely to bring about a highly competitive market. The facilities management that understands its emerging market, and builds to suit its emerging needs, will be successful.

To summarize, the emerging market for assisted living facilities knows what it wants and will be a tough sell. The Baby Boomers, when they reach that age, will be even tougher!

The 18-49 Rut

The watchword of marketing and advertising gurus is—and has been for quite some time—the 18-49 age group. This is the main focus of their advertising messages and is, coincidentally the main focus of media planners and media buyers.

Why is this age group their focus? What is so magical about it that the bulk of advertising and sales promotion communications programs and dollars are reserved for them? These experts tell us the purpose of their efforts to this age group is fourfold:
• They (the 18-49 age group) is still in the process of forming brand buying habits, so marketers wish to shape their thinking and buying habits for the future.
• They are the biggest market for all kinds of products, from baby food to automobiles, to new houses.
• They will be around longer than those older
• Those over age 49 are already set in their ways brand-wise—and are not as likely to be buying certain products or services as frequently—or in quantities.

Before we examine these issues in depth, in a future blog, I would ask this question: How many of you are aware that the 18-49 target group was invented—out of whole cloth? It was a means of addressing the biggest, best educated, most affluent sector of the economy—the Baby Boomers and the Wartime Babies?

That’s right. Along around 1958, when those born in 1940 were turning 18—and the U.S. was still in the middle of the Baby Boomer baby boom—a very smart but unknown advertising guru decided that targeting the emerging market of post-war adults was the wave of the future for marketers.

He was right! At the time!

But, that 18-49 are group he invented is now age 41-65. But, they remain the biggest, best educated, most affluent sector of the economy. They also continue to be the biggest market for all kinds of products and brands—whether they be old-reliables, or newly emerging.

So, why are they continuing to target the 18-49 group?

Father's Day

Today I received a Bloomingdale’s catalogue entitled “His Agenda” “Thoughts on style, fashion, giving and inspiration.” It also carried a prominent reminder that Father’s Day is June 19th.

For your information, I sent the following letter to the Bloomingdale’s Merchandising VP. Should he/she respond, I will print the letter in its entirety here.

Quite an interesting catalog! In looking through its pages I tried to identify the fathers, but the models seemed to be either older teens or twenty-somethings. Yes, one model had gray hair, but it was definitely a premature gray.

Then, there were the clothes. I will give credit where credit is due. A good study of the catalog leaves little doubt that much of the clothing in the catalog shown is “ageless”—but an initial run-through strongly suggests to any Boomer on the receiving end that there is little, if anything, in the catalog for him.

Why? Because research has shown that Boomers are not “youth-enviers.” They do not run out to buy what twenty-somethings are wearing. As a matter of fact, they are more likely than not to avoid it.

Boomers have their own sense of style. When you do have merchandise that would appeal to Boomers—that you would like to appeal to Boomers—you must show it being used by Boomers, worn by Boomers, or enjoyed by Boomers. Otherwise, chances are very good they will pass you by in favor of someone who is marketing directly to them, not indirectly through models 25 years younger than themselves. (And, by the way, this is true of women as well as men).

Sincerely,

Howard Willens