INTRODUCTION
Targeting Seniors Effectively provides unique insights about how social trends, life experiences and needs impact seniors' purchasing behavior.
Drawing upon numerous examples of successful or ineffective marketing concepts in the packaged goods (CPG) industry, this report represents the
definitive guide for all companies seeking to target seniors effectively.
SCOPE OF THE REPORT
- Specific analysis of incomes, employment patterns, living arrangements and CPG spending by different segments.
- Analysis of pan-European and country specific data concerning health, obesity, lifestyle activities and interests, and their marketing
implications.
- General and category specific analysis of social trends, generational experiences, and need states impacting European seniors' lives and
consumption.
- Detailed action points pinpointing how to devise effective marketing concepts that appeal to senior consumers across Europe.
REPORT HIGHLIGHTS
The number of senior consumers in Europe is set to grow from 127 million in 2002 to 147 million in 2007. With an average disposable income of
EUR19,800 Europeans aged 50-64 represent a highly attractive segment. However a new age of senior consumerism will force marketers to change their
conventional approaches to targeting older consumers.
Although seniors show greater awareness towards healthy eating and drinking, prevalence of
obesity and cholesterol levels remain high. Marketers must resolve the indulgence versus health issue and focus on communicating product benefits
rather than emphasizing the problems they seek to counter.
Seniors continue to feel alienated from ineffective marketing activity. In appropriate
circumstances, marketers can make use of 'ageless marketing' in order to target seniors with their product offerings without alienating other younger
audiences. In such circumstances it is appropriate to use advocates with cross generational appeal.
KEY REASONS TO BUY THIS REPORT
- Maximise financial return from targeting the fastest growing demographic segment in Europe
- Obtain key, concise data about social trends affecting seniors' lifestyles and consumption behavior
- Understand why 71% of over 55s feel that advertising does not reflect their life nowadays
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