Mature Market Experts Stat of The Day: A Snapshot of Mature Market Trends Shaping the Consumer Packaged Goods and Retail Industries

Mature Market Experts: more mature market news and stats more often – A Snapshot of Mature Market Trends Shaping the Consumer Packaged Goods (CPG) and Retail Industries – I recently read an interesting report by IRI on Boomers and the CPG category that had some interesting stats, charts and findings. IRA segments the mature market in the following way:

iri-cohort-definitions mature market

In addition to the sheer size of this population segment, as you know, the mature market controls the bulk of the nation’s wealth (yes, it’s still true despite our sagging 401Ks). So, here’s what IRI says,

“CPG manufacturers and retailers that view this group as a monolith, do so at their own peril. Market leaders who want to most effectively meet the needs of Boomers, some of whom are in their 60s, others still in their 40s, must identify the distinct and ever-changing attitudes and behaviors of literally hundreds of micro-segments based on income, geography, shopping trip missions, health and wellness and many other factors.

Overlaid with these differences in attitudes and behaviors is the profound transformation the U.S. economy is experiencing at present. Each of these micro-segments is likely to react differently to the rising then falling price of energy, a severely strained financial market, increasing unemployment and decreasing consumer confidence.

There are some broad commonalities among Baby Boomers that are worth noting, however. Approximately two-thirds of Baby Boomers will continue to work after retirement, some out of financial necessity, others from an eagerness to keep active. Baby Boomers, like their Gen X, Gen Y and younger compatriots, use the Internet actively to get information, research products and make purchases online. And, like no generation before, Baby Boomers are relying heavily on CPG products, from food and beverages to vitamins and supplements, for health and vitality. For the packaged goods industry, the opportunity is immense.”

dollar-sales-growth mature market

channel-share mature market

The full report is definitely worth looking at, although I still believe the best marketers avoid the trapping of categorizing their customers even on a micro level. I think it’s far more effective to practice relational marketing. As I’ve blogged before, this incessant labeling overlooks one key fact . . . regardless of age, we are all individuals.

David Wolfe, one of my favorite bloggers and a true expert on aging states in his blog Ageless Marketing:

“Needs drive our behavior. Our need to be physically and mentally comfortable, whole, safe and secure does not change from one generation to the next. In Maslow’s hierarchy, that bundle of needs is the most basic of all needs. Then, our need for love and to be loved never changes from one generation to the next. The same holds true of our need for self-esteem and the esteem of others.
What does change from generation to generation are the ways in which we strive to meet our needs.”

At TR Mann Consulting, we believe we are entering a new age of relational marketing . . . which has less do with age, than it has to do with technology. As ever-improving technology and quality improvement measures level the playing field in most, if not all industries, we are moving to a marketplace where your relationship with your customers is your key competitive advantage (or weakness). Simply put, it’s not just what you do; it’s how you do it. A great brand is a friendship unfolding—with each new interaction marking a new stage in the courtship. Your customer’s behavior and what they tell you as the relationship unfolds are what should be defining what “category” your customer fits in.

Advertisements

Mature Market Experts Stat of The Day: Baby Boomers Keep Fitness Industry Growing

42-16504021 mature market experts

Mature Market Experts: more mature market news and stats more often – With 77.5 million boomers focused on staying young, fitness industry focuses on them – ““Baby boomers are a booming population. Their numbers are expected to increase by about 25 percent in the next eight years,” said Kara Thompson, of the International Health, Racquet and Sportsclub Association (IHRSA).

Boomers span ages 43 to 61, approximately. With the U.S. Administration on Aging reporting that 77 percent of all financial assets in the United States are held by those 50 and older, it’s like the poet said: “You don’t need a weatherman to know which way the wind blows.”

Thompson said an a survey by IHRSA, which promotes fitness through education and sports club membership, showed that gym membership among the 55+ group in the United States jumped from 1.5 million in 1987 to 9.9 million in 2007.

“It is estimated that in this year alone, Boomers will spend over $70 billion on ways to stave off the aging process,” she added.

As we age, tendons and muscles shorten, bones lose calcium and lungs lose elasticity, writes Dr. Vonda Wright, in her new book, “Fitness After 40.”

But that’s just the bad news.

“Only 30 percent of aging is genetic,” Wright, who specializes in sports medicine, explained. “That means that 70 percent of how we age is determined by the decisions we make.””

Source: MSNBC and Reuters

Note from Tom Mann: Remember, With the 77.5 million boomers expected to increase by 25% in the next 8 years, the fitness industry will continue to represent a growth opportunity even in a down economy. I recently spoke at the International Council on Active Aging (ICAA) and presented some ideas on how retirement communities and fitness centers could engage the mature market through relational marketing. Regardless of your product or service, many of the techniques I discuss in this PowerPoint are effective ways to cost-efficiently market while building strong, lasting relationships. To see the presentation, click here on: TR Mann Consulting – Relational Marketing.

Also, worth repeating, several years ago the AARP in conjunction with the ICAA did a study on terminology . . . the mature market reacted very negatively towards the term “exercise” while the term “active” tested very positively.

 

Mature Market Experts Stat of The Day: Marketing to Boomers and Seniors – 58 Segments and 13 Life Stages

.

Identifying key stages, like grandparenting, will go a long way towards improving your marketing.

Identifying key stages, like grandparenting, will go a long way towards improving your marketing.

Mature Market Experts: more mature market news and stats more often: Marketing To Boomers and Seniors — When it comes to tracking and categorizing the financial habits of the growing populations of Baby Boomers and Seniors, Claritas developed an effective demographic segmentation system called PRIZM NE (for more information visit www.claritas.com) which is particularly insightful for producers of annuity and life insurance products. As I’ve said, over and over to my clients, “It’s about stage NOT age!” Claritas’ system breaks down U.S. households by financial behavior across 58 segments within 13 life stage groups going back to 1987, which is a very helpful beginning. That being said, the surest way to develop a real relationship with potential customers is to engage them in a meaningful relationship. This PowerPoint outlines some ways to do that: TR Mann Consulting – Relational Marketing

PS  GRAND Magazine, one of TR Mann Consultings’ clients, offers an exceptional opportunity for marketers to capture an audience at a highly defined stage, at an exceptional cost per thousand. Grandparents will continue to spoil and spend money on their grandchildren even in the worst economy.

 

 

Mature Market Experts Stat of The Day: Exercise

j0309147 Mature Market Experts bikingIs the mature market exercising enough? Sadly, the answer is no.

“Statistics from the Centers for Disease Control in Atlanta show that only 28 percent of seniors ages 65-74 engage in the recommended amount of physical activity, while 34 percent are totally inactive. Only 24 percent of seniors over 75 exercise at recommended levels, while 46 percent remain completely inactive.”

Source: seattlepi.com

I recently attended the International Council on Active Aging (ICAA) and presented some ideas on how retirement communities and fitness centers could engage the mature market through relational marketing. Regardless of your product or service, many of the techniques I discuss in this PowerPoint are effective ways to cost-efficiently market while building strong, lasting relationships. To see the presentation, click here on: TR Mann Consulting – Relational Marketing.

By the way, several years ago the AARP in conjunction with the ICAA did a study on terminology . . . the mature market reacted very negatively towards the term “exercise” while the term “active” tested very positively.

Mature Market Stat of The Day: Median Age By Counties

Here’s all you need to know about this map . . . dark brown represents counties with a median age of over 40 (note: if you want a closer look just double click on the map). As a mature market marketing expert, I can tell you that density represents special opportunities for companies with an imagination and a deep understanding of relational marketing.

Source for map: U.S. Census Bureau