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3/14/05
Oldies but goodies
Marketers, take note: Baby boomers have lots of
money to spend
By Kristin Davis (US News & World Report)
http://www.usnews.com/usnews/biztech/articles/050314/14boomer.htm
(Note: images added by media educator Frank Baker)
Forget
minivans. German automaker Audi wants to put baby boomers--now that the
kids are grown and out of the house--behind the wheel of the sleek A6
sedan or muscular all-road Quattro. It aimed to capture the boomer
zeitgeist in a recent TV commercial that blended David Bowie's classic
"Rebel Rebel" with his newer hit, "Never Get Old."
As the voiceover intoned, "Where would we be if we always did
things the way they were done before?" a progression of old (record
player) v. new (iPod) images appears on the screen, and Bowie's
"I'm never, ever gonna get old," hangs in the air as the
carmaker's logo emerges.
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image from Audi website
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Audi wants to connect with the
generation that came of age questioning authority in the 1960s and 1970s
and now expects to enjoy a vigorous, age-defying lifestyle in
retirement. And it's emblematic of a marketing trend that's been
surprisingly slow to gather steam.
The nation's 75 million baby
boomers, born between 1946 and 1964, ought to be the most sought-after
demographic cohort for American marketers. As a group, they are the most
affluent Americans, with three quarters of the nation's financial assets
and an estimated $1 trillion in disposable income annually. Yet while
boomers are hurtling toward their retirement years--the oldest boomers
will begin turning 60 next year--Madison Avenue continues to prize
youth. Only about 10 percent of advertising is directed specifically at
the 50-plus market. "The demographic sweet spot has always been 18
to 49," says Brent Green, author of Marketing
to Leading-Edge Baby Boomers . "Once you turn 50, you fall
off the planet."
But a small vanguard of
marketers is abandoning that old thinking and is now beginning to design
products and target advertising to maturing consumers. Anheuser-Busch,
for example, is advertising its low-cal, low-carb Michelob Ultra in the
pages of AARP The Magazine with ads that
show fit, active 50-somethings swimming, kayaking, and biking. (AARP has
in fact run ads in trade publications like Advertising
Age touting 50-plus consumers as a lucrative market.) The Gap, a
favorite of boomers in their younger years, will seek to keep women in
the fold as they outgrow ultra-low-rise jeans and midriff-baring
T-shirts. This fall it will begin testing new stores for women over age
35, with clothes by former Oscar de la Renta designer Austyn Zung. And
Cadillac's TV commercials pay homage to the 1970s-era rock band Led
Zeppelin, playing the group's 1971 hit "Rock and Roll."
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images from AARP website
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One reason most advertisers
fixate on youth is that a majority of the people creating and buying
advertising in the United States are under age 30. The other is the
marketing dogma that consumers tend to cling to the brands they like as
young adults. "There's a long-held belief that you have to get
someone to commit to your brand early in life, and once they commit they
will be loyal to your brand forever," says Matt Thornhill,
president of the Boomer Project, a market-research firm in Richmond, Va.
But a study conducted in 2002 by AARP showed that consumers age 45 and
older switch brands just as readily as younger generations.
What's hip.
The boomer generation has transformed
every age and stage it has passed through. As children, boomers ushered
in disposable diapers and strained spinach in jars. As teens and young
adults, they introduced long hair, tie-dye clothes, and rock-and-roll
music to popular culture. When they became parents, carmakers rolled out
minivans and SUV s. Today, market researchers are at work studying the
likes and dislikes of a generation in midlife with the notion that
they'll also transform what it means to be retired. "Marketers are
just beginning to grasp the nature of a society where 1 in 3 adults will
be 50 or older by 2010," says Green. "We have to completely
reinvent ourselves in understanding the middle-aged and older markets
because they're critical to business success in the future."
For starters, boomers expect
their 60s and 70s to be a time of rediscovery and reinvention, a period
when they can pursue hobbies and try new things. "Half of all
boomers live in households where the kids are gone," says Steve
Audette, a marketing executive in the meals division of General Mills
Inc. "They're rediscovering what it is to be single or a couple
again." That's why the food company's Progresso soup commercials
feature older adults learning Japanese or taking a pottery class.
General Mills also targets empty-nest boomers with Pillsbury dinner
rolls and Green Giant vegetables that are packaged in resealable freezer
bags to allow for several small portions.
A fun job. During
their retirement years, most boomers also say they expect to work--but
on their own terms. "When I retire, I hope to expand the volunteer
work I currently do, take a part-time job at Barnes & Noble or
Borders--more to stay active than for the money--and spend more time
traveling and going to museums," says Mary Medland, a 52-year-old
freelance writer in Baltimore. Medland's intentions are echoed in a
recently released Merrill Lynch study that found that 76 percent of
boomers said they will probably hold down a job in retirement, and a
majority of that group said they expect to cycle back and forth between
leisure and work. "Retirement for this generation will be redefined
as a turning point," says Ken Dychtwald, president of the San
Francisco consulting firm Age Wave. "Somewhere near 62 or 64,
they'll leave their primary career and maybe even enjoy the luxury of a
year off. Then they'll launch into a new chapter in their lives,"
says Dychtwald, who helped Merrill Lynch--which recently unveiled a
marketing campaign aligned with those expectations--conduct the study.
That new chapter might be a volunteer stint or low-stress part-time work
or the "fun" careers they've always wanted to pursue.
Research also shows that
boomers don't necessarily want to high-tail it to warmer climes like
Florida and Phoenix upon retirement. Instead they want to stay put in
their hometowns and close to children and grandchildren. Retirement
community developer Del Webb has noticed. Owned by Pulte Homes, it has
begun building communities for 55-and-older adults near cities like
Chicago, Cleveland, and Detroit, with biking and jogging trails, craft
studios, bird and wildlife preserves, and in one South Carolina village
that will open in 2006, a canoe and kayak station on the Catawba River.
"You can commune with nature in retirement without necessarily
having a 9-iron in your hand," says Pulte spokesman Mark Marymee.
Boomers have always tend-ed to
crave unique experiences, and the ones who can afford to will spend
lavishly on luxury travel. Tour companies that focus on high-end
adventures and study will be the ones to capture boomers' attention.
National Geographic Expeditions, for instance, caters to globetrotting
boomers with trips that feature hiking in the Himalayas, photography
workshops in Spain and Tuscany, African safaris, and a cruise to
Antarctica. Small, ultrachic cruise lines like SeaDream Yacht Club and
the Yachts of Seabourn, which sail to ports from the Mediterranean to
New Zealand, are also positioning themselves well to serve this niche
with marble baths and plasma TV s in the staterooms, spa and fitness
facilities on board, and gourmet food and sommeliers in the dining room.
In addition, boomers are doting grandparents, and they'll no doubt be
treating their grandkids to vacations. Disney targeted this trend with
its recent "magical gatherings" TV commercials that showed
multiple generations enjoying theme-park attractions. They've also
reached out to boomers with an ad that evoked the Mickey Mouse Club of
their youth.
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The one marketing segment that
hasn't overlooked the boomer population is the antiaging market. From
pharmaceuticals and nutraceuticals to cosmetic peels and plastic
surgery, the race is on to tap the wallets of a generation that wants to
be forever young. Viagra and Botox are only the beginning. The
pharmaceutical industry has hundreds of antiaging drugs in its research
pipeline. And every cosmetic company from Avon to Chanel has rolled out
wrinkle creams and age-defying serums to restore youth to sagging skin.
There's even a catalog called "As We Change" that proffers
solutions for thinning hair, wrinkles, spider veins, under-eye circles,
hot flashes, and waning libido. It arrives quarterly in the mailboxes of
1 million women over 40 and sells $8 million to $15 million in products
a year.
Massages
and messages. The desire to reach boomers with the means to
pamper themselves is also behind the surge in day spas. Some--like
Washington, D.C.'s Grooming Station and New York City's Nickel
Spa--cater exclusively to men. Nickel even offers a $95 love-handle wrap
that promises to "reduce the appearance of love handles around the
midsection."
But fountain-of-youth
marketers must be careful with their messages. One Viagra commercial
shows middle-aged men leaping and dancing in the streets to Queen's
"We Are the Champions." That ridicules the target audience,
making them look "fatuous and silly," says Green. But Pfizer
spokesman Daniel Watts says the ad was very popular. "We were very
pleased with it," he says. Ads for Levitra hit a better note, Green
says, focusing on higher-end reasons to use the drug, like intimacy and
quality of relationships.
When it comes to boomers,
"anything marketing to silver hair is bad marketing," says Te
Revesz, an associate director of research firm Find/SVP. The secret to
success, she says: "Don't talk to their chronological age; talk to
their self-image." In other words, anything that makes a 50-ish
boomer feel 30 again is a good bet. |