BABY BOOMERS II Presented by: Jonathan Felix, Jeffery Shoykhet, Efe Yildirim, & Amanda Pinney
What is a Baby Boomer II ? • Younger boomers born 1956-1965 • Presently 39 – 48 years old • 45 million people (16% population) • 50% male / 50% female • 16.9% are minorities • Over 50% of baby boomers live in the following states: California, Texas, New York, Florida, Pennsylvania, Illinois, Ohio, Michigan, and New Jersey. “A Boomer turns 50 every 7 seconds”
Education • Have the highest level of education of any generation • 88.8% of boomers completed high school • 28.5% have a Bachelor’s Degree or more • Increasing demand for continued education • Will previous models meet the desire of the older learner? • Will online educational offerings be feasible in the future? • Boomers are extremely concerned with their children’s education. • College administrators often see baby boomer parents as them as a necessary nuisance. • “When we were college students we questioned the administration. Now we're getting a second chance.” -Steve Peri
Financial • 23.9 million households with 1.7 earners per household • Estimated annual spending power $1.1 Trillion • Annual average spending per household $45,149 • Children are still the priority of younger boomer’s spending • The group spends 11% more than average on pets, toys, and playground equipment. • 69% of households own their own homes instead of renting, so a larger share of budgets. 38% more than average is devoted to mortgage payments. • Younger boomers don’t seemed so concerned with the future, as they spend 10% less than average on life and other personal insurances.
Life Experience • 1962 - The United States and the Union of Soviet Socialist Republics narrowly avoided war during the Cuban Missile Crisis. • 1963-1964 - Important civil rights reforms were passed by Congress. • 1965-1973 - U.S. forces fought in the Vietnam War, which sparked widespread protests in the United States. • 1969 - U.S. astronauts became the first people to land on the moon. • 1972- Watergate Scandal • 1974 - In the wake of the Watergate scandal, Richard M. Nixon became the first U.S. president to resign from office. • 1980s - The U.S. economy emerged from a recession but was faced with increasing federal and foreign trade deficits.
Core Values Boomers on average • See themselves as forever young • Want to have fun • Demand immediate gratification • Are not passive. • They like creature comforts. • Are time deprived • Will pay for luxury, expertise and convenience. • Are skeptical of institutions and individuals • Like to associate with people like themselves
Motivators & Goals • Children are still the priority of younger boomer’s spending • Retire early and comfortably monetarily • Don’t rely on social security as much as past • Want to live long, healthy lives
THEN 1 car per household; fell apart after 5 yrs Much smaller, fuel efficient import cars Smoking allowed everywhere; no gyms Women stayed home; look after kids Sundays were spent at home; picnic Much less stress Technology?? NOW Average of 3 cars per household; luxury Bigger cars, bigger engines; SUV’s, Vans Health obsessed society Women work full time jobs It’s Sunday: Let’s go to the mall! Stress is everywhere Not technologically savvy Lifestyle Now & Then
Product Need recognition • Nursing homes • Chasing youth and beauty • Traveling / Real estate in warmer climates • Luxury cars • Wealth preservation and distribution
Ad response • They have spent their lives being overexposed to blatant advertising and therefore advertisers need to use different methods. • What ads appeal, what ads don’t? Focus on the prospect, not on the product Baby boomers want to feel older, not old Adventurous, not chill out Talk to my lifestyle, not to my age • Preferred Media? They have historically relied on newspaper and print but are quickly turning to the internet as a source of consumer information.
Companies In Touch With Boomers • Sony • Harley Davidson • BMW • Bose • Panasonic • Royal Caribbean • Pfizer In general, luxury products and healthcare products are most often targeted toward baby boomers. Why luxury products? • Baby boomers II are the most affluent consumers • Feel-good purchases-they like a comfortable lifestyle which they feel they have earned Why healthcare products? • Boomers are not ready to give up and grow old just yet • They want to age gracefully
Healthcare Example “Baby boomers value comfort, intimacy and spending time at home with family and friends.” - Reed Fry Reality • Long hours at work • Stress • Limited time to exercise • Unhealthy diet • Can lead to health concerns • Confidence issues Ultimately, family life and intimate life suffers
The Answer in a Pill Pfizer develops Viagra to treat ED • ED affects millions of men—more than half of all men between 40 and 70 years old • Viagra was the fastest launch in drug history, earning $411 million in sales the first three months Pfizer advertises Viagra using humor • Informs public on an important health issue • Eases feelings of shame, embarrassment • Easier to ask a doctor for treatment Message Pfizer facilitates relationships that are valuable to members of the boomer generation
Conclusion “The core of their consumerism is not about owning-it’s about lifestyle and living. They make no apology for what they desire. They are entitled to it. They work hard for it. They’ve earned it.” -Reed Fry