Targeting Seniors Effectively

SUMMARY

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 thedefinitive 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 marketingimplications.
• General and category specific analysis of social trends, generational experiences, and need states impacting European seniors' lives andconsumption.
• 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 ofEUR19,800 Europeans aged 50-64 represent a highly attractive segment. However a new age of senior consumerism will force marketers to change theirconventional approaches to targeting older consumers.

Although seniors show greater awareness towards healthy eating and drinking, prevalence ofobesity and cholesterol levels remain high. Marketers must resolve the indulgence versus health issue and focus on communicating product benefitsrather than emphasizing the problems they seek to counter.

Seniors continue to feel alienated from ineffective marketing activity. In appropriatecircumstances, marketers can make use of 'ageless marketing' in order to target seniors with their product offerings without alienating other youngeraudiences. 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

TABLE OF CONTENTS

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 uponthe growing number of European Senior consumers and their comparatively high disposable incomes marketers must show greater sensitivity to theirchanging lifestyles. This chapter provides a comprehensive analysis of trends in seniors lives, how these impact their needs, attitudes andlifestyles. 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 ofEuropean society, both in terms of income and wealth. The drivers behind this income trend include empty nesthood, higher earnings, an increasedlikelihood of a large inheritance and lessening impacts of long term financial payments. Current marketing tactics alienate and confuse seniorssuggesting 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 agrowing influence of children in influencing preferences. Furthermore, high levels of income inequality currently exist in Europe and vary by countryto country. The significant diversity means that marketers must increasingly refine their targeting approaches in order to devise suitable offeringsfor 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 theycan be equally life altering as those that occur in youth. It assesses the extent to which Seniority marks an important period of change andre-evaluation and the extent to which marketers must capitalize on 'trigger'  points changing buying habits. Analysis also focuses on howmarketers 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 concerningquality of life of contemporary seniors. Attitudinally, the 50-59 year old generation is re-inventing the meaning of being old leading to whatDatamonitor 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 ageof 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 onhow deteriorating health creates distinct nutritional needs. The section identifies how marketers must resolve the obesity versus indulgence issue andhow further opportunities exist in the organics sector. It also explores the extent to which older consumers are showing a greater interest inremaining 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 lackingempathy with a consumer group they fail to identify with. This section explores how the world of advertising has evolved away from simplisticstructures leading to abstract messages that are inappropriate for seniors. As a response seniors often rely on informal word of mouth communicationfor trusted information.

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

ACTION POINTS

This chapter includes over 20 pages of detailed Action Points providing specific recommendations that can help CPG players maketheir 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