Cashing in on aging boomers - Puget Sound Business Journal (Seattle):

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“People wanted nothing to do with the mature saidMaddy Dychtwald, senior vice president of the companhy in San Francisco. Now, the consumer products and servicesindustry can’t stop thinkinvg about the mature market, especiallhy since a baby boomer turns 50 everyh 8½ seconds. At 78 millio n people, boomers represent one-third of all adults in the United They control half ofthe nation’s wealtg and, at least before the were spending $2 trillion on consumer products and services a Boomers were expected to account for about 40 percenyt of spending by 2015, according to a report in 2007. So, retailere and marketers are eager to figure out how to reachthis generation.
Some in the consumetr products and services industry are getting it while many others still have much tolearhn — and lose, said experts who specialize in marketing to baby Marketing to this 19-year generation is proving tricky. Althougbh boomers are lumped together, they’re a diverse groupl with divergent life experiences given that they range in age from 44to 63. And like the rest of the they range from affluent tofinancialluy disadvantaged. The way to market to boomeres is by individual life stagesegments — such as empty-nestersz and grandparents — without mentioning age, consultants “They refuse to be callec seniors.
That is the worst thing you can do to this saidAlice Jacobs, a Roseville baby boomerf who advises companies on generational marketingf and teaches seminars and classes on the topic, includinhg through UC Davis Extension. Although generaliziny of boomers should bedone sparingly, older baby boomers refusre to grow up. They thin k old age starts arounde 75or 80, said Matt founder of , a marketing research and consulting firm in Boomers see themselves as vibrant and active. They like tryinyg new servicesand products, despit the myth that they are brand-loyal, spokesman Anthony Deluisd said. The association of people 50 and older no longefuses “retired” in its name.
Boomers like print advertising becaus they want lotsof information. Boomers also pay attentionb tonew media, and will click on eye-catching Internetf ads. This generation also likes products, services and shoppingg experiences that make them feel special and consultants said. They don’t want to merelyg eat or buy things. They want to they want experiences. This is especiallyt true since therecession started. Many boomers who are 60 had expectedf to retire over the nextfive years. Now, they will likely work an extra three to five years becausde oftheir hard-hit investments and pensions, Dychtwald said. The good news is they won’yt be on a fixed income and willstill spend.
But thei free time will be more More boomers will be working and raisinbg children or grandchildren while also dealint with their own sick Asa result, “experience over thingsx become valued,” Dychtwald said. “There is a real shif going on right now on what peopleeare valuing.” Boomers in particular want to be responsiblw consumers. “It’s not about buying stuff to have Thornhill said. Lifestyle centers — whic h combine upscale storeswith restaurants, entertainment and comfortable places to linger — provide the experiences that boomers want.
Localk examples are Sacramento’s Pavilions center and The Fountains in The Fountainswas designed, and filled with tenantas and marketed all with boomers in mind, property manager Gloria Wrightt said. For its concert series, The Fountainds includes music that appeals to Water features and a train ride are meantt to appealto boomers, including older boomerds who are “so into their grandchildren,” Wright said. Boomer-appealing apparel retailers include Draper’s & Damon’s, and Malls have focused on boomers by clustering stored that targetthe demographic.
They’ve addexd leather chairs and couches in thecommobn areas, and indoor children’s “All making you feel special,” Jacobs As for adding experience, Raley’s supermarkets offer wine tastint and kitchen products retailer Sur La Table providesw cooking classes. Nordstrom offers boomers the attentiojn they crave with free persona shoppers who will do the chor e ontheir behalf, whilwe customer service representatives will book theater ticketsa or make dinner reservations for them.
But some aspect of boomer-oriented service are lacking at many People age 50 and older requirre twice as much light as a 25year old, Jacobes said, so restaurants dimming their lights to create mood just aren’t workiny for boomers. Restaurants need to add table lightz so their customers can readthe Jacobs’ own solution? “I carry a flash-light.” Noish restaurants also aren’t addressing the decline in heariny suffered by some boomers.
Restaurants should provide more spacre between tablesand noise-absorption products, Jacobs Many marketers of beauty care and wellnese products are getting it right when it comes to Dove, a brand best known for its soap, features boomersa in ads and says beauty has no age The company incorporates a cause-marketing programj to build self-esteem and promote a widedr definition of beauty. Supermarkets and drug stores tried rollinbout in-store health but mixed results have led some independeng clinic operators to scale back their Retailers also are adapting existing products or offering new products or packaging that targets boomers.
Discounter Targetr has color-coded prescription bottlezs with largetype face. Cobrs has a global positioning syste m with oversized icons and text and back lighting toenhancde visibility. Tropicana has an orang juice fortifiedwith omega-3, thoughtg to help heart health and other conditions. Nivea introduce d an anti-cellulite cream, while beauty retailer Sephora offerwsnumerous anti-aging beauty products. Makers of yogurtg and all sorts of products areaddingv fiber. Some products and servicexs are created for themature user, but have wide Thornhill said.
As boomers get they’ll continue to defy aging with health club memberships and spas offeringg massage andother services, consultants said. “We think boomersd will spend money on maintaining vitality untiol they take their last Thornhill said. Boomers are redefining age, and the consumer productsa industry hastaken notice. “Everybody is watching Jacobs said.