This is not to say that baby boomers are a homogenous group. They vary widely in terms of class, education and lifestyle. And depending on how you define ‘baby boomers’ there may be a 20-year gap between the oldest and youngest in the group.
The boomers set trends not because they are cohesive, but simply through the force of numbers. They represent a huge bulge in the population graph.
For example, over-50 households currently control about 40 percent of discretionary income in the US, though they account for only about a third of the population. The proportion of over-50 households is set to double in the next 25 years, giving this group truly overwhelming market dominance.
While baby boomers are a heterogeneous group, some broad similarities stand out. The boomers will be more educated seniors than we are used to. More of them have a university education, and this affects their tastes and the products they prefer.
They are likely to be more active. The boomers have fought the ageing process every step of the way. This is the generation that made jogging a fashion and has been behind a host of lifestyle, nutrition and health trends.
Travel and leisure industries are likely to be affected by the changed demographic. Baby boomers are increasingly entering the ‘empty nester’ phase, and people in this age group tend to have the finances and the inclination to travel more, particularly if they are well educated.
The travel sector may find a decline in demand for packaged tours and an increase in demand for adventurous alternatives, as active and healthy seniors opt for energetic holidays.
Nobody likes to be told they are ‘over the hill’, but the baby boomers are likely to be particularly sensitive to the label ‘elderly’. Many of them still think ‘young’. They are more likely to be individualistic, critical and uncomfortable with institutional authority than their predecessors. And they do not like to be categorized. So marketing will need to be directed towards ‘experience’ rather than ‘age’.
This means that you will have to research and segment your customer base and target your marketing more carefully, as you do not want to alienate clients by appearing to label them. Remain aware of the diversity of the group you are selling to.
Some baby boomers will have had new families in their late 40s, while others will be putting their kids through college. Some will be hale and hearty, while others will be suffering health problems. Some will be comfortably retired, while others will be struggling. Some may feel that age gives them a certain status, while others will be highly sensitive and defensive about age.
Prospering in this market will mean selling to sophisticated and discriminating customers. While mature consumers control over 70 percent of the net worth of American households, they are not throwing their money away.
Research has shown that they look for value, are suspicious of hype and are not particularly brand loyal. This may mean that lower key and subtler marketing will work better than high pressure techniques. It will mean patience and adopting marketing techniques that take account of consumer sophistication.
Useful general Web resources include:
International:
World Advertising Research Center
Asia-Pacific:
Market Research Society of New Zealand
Copyright 2003, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.