Targeting Seniors Effectively

Overview

Introduction

Scope

Report Highlights

Reasons to Purchase

FUTURE DECODED

Datamonitor predicts the proportion of European seniors to rise from 34.1% in 2000 to 46.4% in 2025. In order to capitalize upon the growing number of European Senior consumers and their comparatively high disposable incomes marketers must show greater sensitivity to their changing lifestyles. This chapter provides a comprehensive analysis of trends in seniors lives, how these impact their needs, attitudes and lifestyles. It contains general and sector specific insights that will allow marketers to develop more effective campaigns.

Trends and social issues regarding seniors

Contemporary seniors are wealthier than their peers of previous generations. Seniors aged between 50 and 64 are the most affluent segment of European society, both in terms of income and wealth. The drivers behind this income trend include empty nesthood, higher earnings, an increased likelihood of a large inheritance and lessening impacts of long term financial payments. Current marketing tactics alienate and confuse seniors suggesting that marketers are not fully capitalizing on what is going to become an increasingly profitable consumer group.

Current social trends impacting seniors CPG consumption habits include employment and pension changes, an increasing tendency to live alone and a growing influence of children in influencing preferences. Furthermore, high levels of income inequality currently exist in Europe and vary by country to country. The significant diversity means that marketers must increasingly refine their targeting approaches in order to devise suitable offerings for the differing income groups.

Understanding Senior lifestages and life histories

This section highlights how the marketing community has generally put less emphasis on the transitions that occur later in life even though they can be equally life altering as those that occur in youth. It assesses the extent to which Seniority marks an important period of change and re-evaluation and the extent to which marketers must capitalize on 'trigger'  points changing buying habits. Analysis also focuses on how marketers must be sensitive to the generational experiences that have shaped their lives and consumption patterns.

Seniors typically see themselves as being 10-15 years younger than their actual age. Marketers must realize the changing expectations concerning quality of life of contemporary seniors. Attitudinally, the 50-59 year old generation is re-inventing the meaning of being old leading to what Datamonitor believes will be a 'new age'  of Senior consumerism.

Seniors and health

Seniors become increasingly aware of health issues as they age. Datamonitor analysis (see appendix) shows that 16.42 million Europeans over the age of 65 feel that their health is bad or very bad. This encourages them to take preventative measures in order to maintain good health.

In highlighting the importance of health and providing key data on obesity and general attitudes towards health and exercise analysis focuses on how deteriorating health creates distinct nutritional needs. The section identifies how marketers must resolve the obesity versus indulgence issue and how further opportunities exist in the organics sector. It also explores the extent to which older consumers are showing a greater interest in remaining active and how seniors also value and trust health professionals.

Communicating with seniors

Understanding how to communicate with seniors is the biggest problem marketers face. Primarily the problem stems from young marketers lacking empathy with a consumer group they fail to identify with. This section explores how the world of advertising has evolved away from simplistic structures leading to abstract messages that are inappropriate for seniors. As a response seniors often rely on informal word of mouth communication for trusted information.

Analysis focuses on the impact of using older models in communication and pinpoints the missed opportunities currently prevalent in the packaged goods industry.

ACTION POINTS

This chapter includes over 20 pages of detailed Action Points providing specific recommendations that can help CPG players make their products appealing to Senior consumers. Here are some recommendations:

Update conventional marketing approaches

Target attitudes - think functional, not chronological age

Re-assess resources allocated to this lucrative age group

Resolve the paradox between age and youth

Consider adopting 'ageless marketing'

Consider adopting a cause related marketing campaign

Show sensitivity to the inequality of seniors

Embrace media relevant to the over 50s

Offer attainable aspirations and inspirations

Use the nostalgia effect in communications to create appeal

Communicate benefits rather than problems

Use communications to show sensitivity to heightened fears that develop with age

APPENDIX

• This chapter contains further data, research methodology and sources used in the report.

DATASETS

Table 1: Quantifying mega-lifestage durations

Table 2: Profiling the 50 plus lifestage

Table 3: European life expectancy forecasts by country (5 year averages), 1995-2000 and 2020-2025

Table 4: A snapshot of European seniors by country (millions), 1997-07

Table 5: Distribution of mean disposable per capita income by age, 1997-07

Table 6: Proportion of the population having contracted personal loans, credits or mortgages in the EU (%), by age 2000

Table 7: The average effective age of retirement by country, 1995-99

Table 8: Senior consumers in employment (millions), 1997-07

Table 9: Distribution of population by income group, (%) 2002

Table 10: Helping seniors to shop

Table 11: European over 50s living alone (% and millions), 1995-2025

Table 12: A breakdown of European living arrangements by age group, (millions) 2007

Table 13: Important values, behaviors and attitudes associated with the period effect

Table 14: Europeans selecting factors perceived to be the most important influences on health (%), by age, 2002

Table 15: European BMI distribution, by age and sex (%), 2002

Table 16: Effectively advertising healthier, but ultimately indulgent products

Table 17: Europeans participating in various activities in a typical week, by age (%), 2002

Table 18: Sources of information for Europeans seeking advice on healthy eating, (%) by age, 2002

Table 19: An analysis of product categories featuring 50-plus models in advertisements

Table 20: Advertising agency executive' s recommendations for ads containing an older central figure when targeting an older audience

Table 21: An advertisement unlikely to resonate with older consumers

Table 22: Industry perceptions of how effective different media channels are in communicating with seniors, 2003

Table 23: Satisfying the core food needs of taste and health

Table 24: Identifying key needs by age for European seniors

Table 25: Providing solutions for Senior lifestyles and problems

Table 26: Marketing messages with wide generational appeal

Table 27: Media specifically targeting over 50s can be effective ways to target seniors

Table 28: An example of effectively appealing to seniors increasing tendency to seek fun, excitement and new experiences

Table 29: Examples of solution products that must focus on their benefits rather than the age related problems they benefit

Table 30: European over 50s living arrangements by age group and country, (millions), 2007

Table 31: Trend in mean age of women at birth of first child, by country 1975, 2005 82

Table 32: Estimated average energy requirements for different age groups (calories per day)

Table 33: The motivating factors for participating in physical activity, by age (%)

Table 34: Definitions used in this report

LIST OF FIGURES

Figure 1: Over 50s as a percentage of total population in Europe (%), 2000-2025

Figure 2: Young adults'  financial and residential reliance on parents

Figure 3: Life events experienced that impact consumption behavior

Figure 4: Age profile of loyal organics users (based on most recent consumer surveys available in each country), 2002

Figure 5: Advertising that makes a product inclusive of seniors

Figure 6: Senior lifestyle web-sites represent good opportunities for free publicity and even advertising opportunities

Figure 7: Offering realistic, aspirational messages in advertising