The Impact of Aging Consumers on Manufacturers and Retailers

WHO IS VARSITY?

WHAT WE DO

• Experience began with more than 75 retirement communities

• Backed up by a 50-member marketing team at Pavone

• National experts

Branding

ArchImaging

Research

Design

Packaging

Advertising

Public relations

Interactive

Sales promotions

CRM

Media

WHY WE DO IT• Most marketers are not in

this demo• To better understand a new

marketing demo without assumptions

• Ethnographic research to create a truly unique point of view

• To assemble a predictive model of future Boomer behavior

DEMOGRAPHICS

• 55+ market is larger than Hispanic and African-American markets combined

• Holds over 75% of the nation’s wealth

• Has nearly 2 trillion dollars in disposable income

• Controls 70% of all disposable income

• Life expectancy of 55+ continues to rise

DEMOGRAPHICS

• Older adults will continueto be a MUST target

• Distinct cohorts• 65+ are patient, thrifty,

honorable, respect authority• 55-65 (leading-edge Boomers)

are impatient, wealthy, decisive, seek entertainment

GOALS OF STUDY

• Add depth to base of existing Boomer/older adult intelligence

• Study of emotional and physiological needs to inform new products, marketing design, and best use of media

• Study mature market for base of comparison against aging Boomers in future studies

INITIAL STUDY

Ethnographic research• 2 researchers lived 24/7 at CCRC

for 31 days•Conducted focus groups, shop-alongs,

personal interviews•Residents’ and researchers’ journals,

blogs and video

SOME RESULTING SUGGESTIONS

SOME SUGGESTIONS• Product/packaging design

• Retail design

• Boomer mindset

OVERALL APPROACH• The biggest opportunities

•Help them take things for granted again• Treat them as smart consumers• Be clear about what you are selling• Keep their physiology in mind

• Sight• Strength• Stamina

RETAIL DESIGN

RETAIL DESIGN• Access is important

• Automatic door, but not “handicap” automatic door (Boomers won’t use it)

• Wide aisles – space for scooters

• Non-skid flooring• Large signage• Greater need for non-glare lighting to make it

easier for them to read• Large/clear labeling with high contrast• Furniture that accounts for physiology of

older adults

10%11%12%27%

63%

86%

0%10%20%30%40%50%60%70%80%90%

100%

Make a list ofitems to purchase

Check supply ofgoods

Make a list ofplaces to go

Makearrangements fortransportation

Makearrangements for

assistance inshopping

Get advice onlarge purchases

Actions when planning to go shopping

85%

37%24%

15% 13%5%

0%10%20%30%40%50%60%70%80%90%

100%

Shopping cart Credit cards Self check-out Handicappedparking

Shopping basket Scooter

Used when shopping

54%

17% 18% 20% 22%27% 27%

0%10%20%30%40%50%60%70%80%90%

100%

Clutter Width of aisles Hard to readlabels

Hard to readprice

Crowds Hard to finditems

Hard to reachitems

Found difficult while shopping

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

PACKAGING DESIGN

3%8%9%

23%

38%43%

0%10%20%30%40%50%60%70%80%90%

100%

Openingbottles/cans

Opening packaging Small font Reading nutritionlabels

Understandingnutrition labels

Understandinginstructions

Difficulties with products

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER MINDSET

55+ BOOMER MINDSET• Don’t want to be “seniors”

• See themselves as 15 years younger• Active aging – engaged in life

• Feel and act younger than parents • General sense of optimism• Transition from accumulating possessions to

collecting experiences• Self-fulfillment and lifelong learning

55+ BOOMER LIFESTYLE• Boomers

• Their lifestyle is who they are• What they do says more than their age• Want to maintain lifestyle into old age• Retirement is a time of self-expression and

reinvention

• They want to collect different experiences

55+ BOOMER LIFESTYLE

• Experiences•Restless and searching for novelty• Adult learning classes have grown

• Forensics to world religions

•Gourmet cooking classes

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

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55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

55+ BOOMER SPENDING

SUMMARY

SUMMARY

• 55+ will never be the same• Multiple targets even within 55-65 and 65+• Boomers don’t want to be “old” like

their parents• Design for 55+ will change the marketplace• Opportunities abound for companies that help

older adults to take things for granted

QUESTIONS