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Mature MarketMature Market

David Chenu

Who are the mature market

How do we define them ?

How do you segment ?

• Traditional seniors

• Baby boomers

• Demographic

• Life stage• Life stage

• Psychographic

• ........

• They are not an homogenous group of ‘older Australians.’

The mature market

• Age

The mature market - segmentation

• Age

• Life cycle

Young

Transitionals,

15%

Start Up

Families,9%

Established

Households,

Senior Couples,

14%

Small Scale

Families,11%

Bustling

Families,16%

Independent

Singles,17%

Households,

18%

Life cycle

Independent Singles (1 Person HHs, No Children, 35+)

Predominantly female households,

Most consumers get to this life stage either through divorce or from never having been married.

79% of this group over 50 years of age, paid off 79% of this group over 50 years of age, paid off their mortgage,

you will find these consumers living in apartments, are often working in professional white collar established careers dining out with friends or working late in the office.

Life cycle

Senior Couples (2+ Person HHs, No Children, 60+)

Companionship, rather than age, most influences the behaviour of this group.

You might find the husband reading the latest news of on line as his wife plans ‘the next trip.’ of on line as his wife plans ‘the next trip.’

They are quite active,

In addition, Senior Couples are more likely to still live in the family home, a larger house left over from family life with children. At 86%, this life stage has the highest level of home ownership.

The mature market - segmentation

• Age

• Life cycle

• Needs

The mature market - segmentation

• Age

• Life cycle

• Needs

• Psychological development. (Maslow)• Psychological development. (Maslow)

The mature market - segmentation

• Age

• Life cycle

• Needs

• Psychological development. (Maslow)• Psychological development. (Maslow)

• Behaviour

19 IN 20 H/HOLDS BUY BANANAS pa

0.1 0.20.4

0.8

100

98

96

94

92

$62

$70$108

$148

$152

$208

% o

f th

ese h

/hold

s t

hat

buy

PA

Current retail spend is $900m per year

2002

2007

2009

2012

2015

0.1 0.292

90

88

86

84

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Young

Trans.Start Up

Families

Small

FamiliesIndep.

Singles

$148

Establ.

Couples

Bustling

Families

Senior

Couples

% o

f th

ese h

/hold

s t

hat

buy

PA

How many times these households buy in a year

The mature market - segmentation

• Age

• Life cycle

• Needs

• Psychological development. (Maslow)• Psychological development. (Maslow)

• Behaviour

• Psychographics

SOME TRENDS........

What do they do ?

• Living longer - ~81.9 years ( 2nd to Japan)

• 40% Australians over 50

• Spending more - $220b annual spend

• Challenging traditional stereo types• Challenging traditional stereo types

– “ don’t box me in.”

• Open to brand/products/experiences

• Embracing new technologies - FB

Who are they, what do they do?

• 25% of population

• 59% f/time or p/time

• 46% own their house

• ~ $376k. Savings• ~ $376k. Savings

• 90% have smart phone

• 90% purchased on line

• So, they have arrived!

What are their values ?

• Integrity – in all things eg food, environment;

social status, political debate.

• Engaged with BIG ISSUES

• Freedom/independence. • Freedom/independence.

• Less conservative – albeit still favour

monarchy

• Security and reliability – live well and live long

• ‘Ageless’ mindset – this is crucial to

understand.

• What are they interested in?

So, what are the implications ?

• Avoid over simplification of messages

• Tone - avoid patronisation

• Stereotype - DONT.

• They are not sitting back reading newspapers • They are not sitting back reading newspapers

– fast growing on line presence.

How should we speak to them?

• This segment is older, wiser and more

sensitive to the way they are depicted.

• They have been exposed to advertising for

decades – they are savvy and sceptical. decades – they are savvy and sceptical.

Traditional advertising doesn’t work.

• Respect their values

• They are a mature group

In summary

• A burgeoning wealthy target market.

• Strong ability to spend

• Only a small number of advertising dollars

targeting these peopletargeting these people

• Be careful and smart when you work with

these people

• They demand respect

• They don’t like bull shit.

Thank you

Questions?