Marketing to The New 50+ Population: It’s Not Your Parents’ 50+ Population

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

2. Does this look familiar to you? • Which group includes your age? • 18-24 • 25-34 • 35-49 • 50+ What’s wrong with this picture?

3. 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)

4. 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%

5. 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

6. 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

7. 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

8. 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

9. 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”

10. 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”

11. 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

12. 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”

13. 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

14. 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

15. More than 1 in 5 Boomers expect to retire after the age of 65 Redefining Retirement—Age Source: Opinion 50+, July 2005 Base=113

16. Redefining Retirement—Work Source: Opinion 50+, July 2005 Base=501

17. Affluence Over 50 Source: Opinion 50+, July/August 2005 Base=1002

18. Home Furnishings Source: Opinion 50+, July 2005 Base=501

19. Healthy Self-Image Source: Opinion 50+, July/August 2005 Base=1002

20. Healthcare treatments

21. Presence of Children Under 18 Source: Opinion 50+, July/August 2005 Base=724

22. Internet Usage Source: Opinion 50+, July/August 2005 Base=1002

23. Internet Activities Source: Opinion 50+, July 2005 Base=635

24. 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

25. 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.”