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Who are the Boomers? They are the largest generation in the history of the US. There
were 76+ million babies born between 1946 and 1964. Boomers are today's adult teenagers.
They grew up during the 60's and 70's but their ideas are so close to their kids,
that they are the first generation to be for all practical purposes "raised by their
kids."
Our research proves beyond a doubt that Boomers will never follow in the mindset or buying patterns of their parents. Age is irrelevant to Boomers. What they think and their lifestyles and families are the key factors.
What's really most important to the Boomers?
Boomers worry about 3 things:
1. staying young,
2. finances
3. their kids and grandkids.
The Boomers have a grand love affair with the Echoboomers. These are the Boomers'
72 million kids and grandkidsids who are more affluent, smarter, better traveled
and more technology savy then any other generation of kids before them.
These kids influence 75% of the decisions in their homes to the tune of around $200-300 Billion! Some say the Boomers kids are the most spoiled generation. Others say they are the smartest, most caring and sensitive generation, with less drugs, drinking and teenage pregnancies then previous generations.
What Else Is Important?
Although Boomers are concerned about retirement, many have
no desire to retire, and many will not be able to retire for financial reasons. Their
divorces and remarriages have changed the relationships and issues in their households
drastically.
Marketers, Don't Call Them "Seniors"
Companies that think today's 50-plus boomers
are like their parents are missing a huge opportunity
This year, about half of the
77 million members of the baby boom generation will be age 50 or older. In the marketing
business, age 50 has traditionally been the age at which a consumer's value to mass
marketers plummets. But boomers, with their vast numbers, unprecedented wealth and
life expectancy, and surprisingly energetic lifestyles, present a huge business opportunity
to marketers ranging from consumer-products and clothing companies to auto makers
and food companies.
BusinessWeek Correspondent spoke about Corporate America's changing attitudes toward the middle-aged consumers. Edited excerpts follow:
Why is the boomer generation in danger of falling off the marketing radar screen?
Boomers
have aged themselves out of the traditional sweet spot of ages 18 to 49. As boomers
aged, advertisers and marketers started to ignore them. Now, advertisers are slowly
waking up to it. For example Gap is re-embracing the audience, with its new store
concept for boomer women.
Why are marketers targeting the boomers now?
The 50-and-up
market will grow by 70% over the next 15 years. Four million people a year are hitting
age 50. It's adding up. There's enough to take notice. If you're going to grow your
business, you will have to market to people over 50.
Why does the notion of middle-age
traditionally turn marketers off?
There has been a myth that brand choices are established
at a young age and once set, they're set in stone. It's true in some categories,
like soap and shampoo. It's not true on cars, shoes, coffee, and TVs. They wrongly
believe that 50-plussers won't be their consumers for long.
Which companies are doing
the right thing in regard to boomers?
Certain companies are moving in the right direction.
With its amusement parks, Disney has sent the message "come back after the kids are
gone." People in the ads are clearly in their 50s.
Kitchenware retailer Sur La Table
holds cooking classes. It appeals to boomers with time and money and interest in
experiences and less interest in things. They've already got a kitchen full of gizmos.
Now they want to know what to do with them all.
Pillsbury sells resealable bags of
frozen biscuits. Ads show two empty nesters and the Pillsbury Doughboy dims the lights
so they can reconnect with each other now that the kids are gone.
What influence
has the boomer generation had on marketers?
The mass-marketing age didn't happen until
boomers came around. As boomers grew up, they've always driven category after category,
whether imported cars or Nikes. They've been the target for most marketing efforts
up until they aged themselves out of the 18-to-49 demographic. Now they're transforming
what it means to be older, to be a grandparent. And companies need to take note.
How much more work do marketers have left to do?
About 66% of boomers over age 50
still agree with the statement, "Advertisers target people younger than me." Someone
needs to slap [companies] upside the head and say, "You need to keep targeting them."
How should marketers view the boomer generation?
They aren't "seniors." Jerry Seinfeld
and Howard Stern are in their 50s. So is Robin Williams. You can't label them as
"seniors." Boomers don't want age-related labels to describe themselves.
The generation
gap is still there. Boomers don't want much to do with their parents. Marketers shouldn't
group them with the previous generation of seniors. They should treat these 50-year-olds
as a separate group.
What's the main difference between the boomer generation and
their parents' generation?
The boomers' parents lived a linear life of school, job,
marriage, kids, worked 40 years with a single company, retired, and moved away to
Florida. Boomers live a cyclical life of school, job, marriage, children, divorce,
new marriage, job, more school, relocation, new career, and so forth. You can't conclude
where a boomer is in life just by age.
What's the implication of continuing to work
past the traditional retirement age of 65?
Most boomers believe they'll keep working.
If they do that, they keep earning disposable income. They keep spending money on
work clothes, buying things. They keep looking for jobs and stay active.
Somewhere
between Woodstock Nation and Over-The-Hill, the most sought after market in America
became passé. The fortysomething-to-sixty-something crowd has not been attracting
its fair share of commercial attention. This is an ill-bred business blunder.
The influential over-50 segment has $2 trillion in annual spending power and today controls 50% of all discretionary income. Even more staggering is an unfolding demographic truth: more than 30 percent of Americans will be over 50 by 2010.
The importance of Boomers to business.
During the next two decades, millions of baby boomers will reach retirement age. Never before in American History will so many people arrive en masse at this life stage. Together, this group will collectively redefine the connotations of aging and the purpose of life's golden years.
Today's mature adults are experience seekers. They are willing to try new things and have significant disposable income. Most view themselves as active, energetic and engaged. Many view themselves younger than the calendar, some by as much as 12 years.
This generation's healthy materialistic appetite will feed a desire for acquiring new possessions whether material, psychological or spiritual. They are setting the stage for American businesses to reevaluate how they target this previously undervalued demographic segment.
Contact us today to position your company in the boomer market.