Demographics

• Pig in Python Reaches Middle Age
• Implications for Marketers
• How Baby Boomers Will Change "Aging"
• Nearly 10 Million Boomers Already 50-Plus
• Table 1-1: Growth of Mature Baby Boom Market, 1996-2015 (number)
• Boomers Will Swell Ranks of Mature
• Majority of Boomers Married
• Boomers Have Fewer Children
• Boomers Most Educated Generation in History
• 80% of Mature Boomers Are Employed
• 45- to 54-Year-Olds Have Highest Incomes

The Market

• Market Estimated at $930 Billion
• Boomers Dominate Market for Most Consumer Goods and Services
• Figure 1-1: Mature Boomer Expenditures for Consumer Products and Services, 1997 (dollars): 9 Categories
• Mature Boomers Still Building Net Worth

Mature Boomers as Consumers

• Households 45-54 Have Highest Annual Expenditures
• Mature Boomers Spend More in Virtually All Categories
• Boomers Particularly Important Consumers of Products/Services

Mature Boomer Use of Media

• Boomers Are Major Media Consumers
• Older Adults Watch More Television Than 18- to 49-Year-Olds
• Most Programming Ignores Older Viewers
• Mature Americans Consume All Forms of Print
• Mature Boomers Major Part of Readership of Most Mainstream
• Publications
• Growing List of Publications Targeted to Mature Audiences
• Catalogs Only Direct Mail Boomers Read
• Use of Electronic Media Growing

Marketing to Mature Boomers

• Marketers Know Boomers, But May Need to Revisit Them
• What Worked with Previous Mature Audiences Won't Work with Boomers
• No "One-Size-Fits-All" Mature Category
• Boomers Not Planning to Slow Down
• "This Is Not Your Father's Oldsmobile" Captures Right Attitude
• Product Must Be Right, Too
• New Experiences Motivate
• Boomers Also Seek Balance, Simplicity
• Mature Adults Starved for Contemporary Role Models

Scope and Methodology

• Report Examines Aging Baby Boomers
• Methodology

II Demographics

Introduction

• Pig in Python Reaches Middle Age
• Implications for Marketers
• How Baby Boomers Will Change "Aging"
• Figure 2-1: Growth of Mature Baby Boom Market: Total Number of
• Boomers Age 50+, 1996-2015 (number)

Population

• Nearly 10 Million Boomers Already 50-Plus
• Table 2-1: Growth of Mature Baby Boom Market, 1996-2015 (number)
• Boomers Driving Median Age of Population
• Two Boomer Cohorts
• How Cohorts Differ from Generations
• Boomers Will Swell Ranks of Mature
• Through 2050, Mature Population Will Be Fastest-Growing
• Greater Range of People Now Considered Mature
• Americans Living Longer, Staying Healthier Longer
• Females Increasingly Outnumber Males with Age
• Table 2-2: Ratio of Mature Boomer Males to Females, 1998 vs 2015 (number and percent)
• Whites Dominate Ranks of Boomers
• Table 2-3: Share of Mature Boomers by Racial Origin, 1998 (number and percent): Whites, African Americans, Hispanics, Asian/Pacific Islanders, Native Americans
• Figure 2-2: Share of Mature Boomers by Racial Origin, 1998 (percent): Whites, African Americans, Hispanics, Asian/Pacific Islanders, Native Americans
• Geographic Distribution Patterns

Family Status

• Majority of Boomers Married
• Many More Than Once
• Mature Boomers See Benefits of Marriage, Fidelity
• Boomers Have Fewer Children
• But More Stepchildren
• "Sandwich Generation" New Label Created for Boomers
• Grandparenting Important Role for Mature Americans

Education

• Boomers Most Educated Generation in History
• Education Affects Boomer Attitudes More Than Earnings

Employment

• 80% of Mature Boomers Are Employed
• First Generation of Fully-Employed Women
• Many Boomers Will Continue Working
• Life Cycle Is Changing

Finances

• 45- to 54-Year-Olds Have Highest Incomes
• And Also the Highest Expenses
• The Equitable Nest Egg Study
• Education and Retirement Two Greatest Financial Concerns
• Saving Enough for Retirement
• $300,000 Saved by Boomers Polled
• Company-Based Retirement Plays Major Role in Retirement Strategy
• Yet Fewer Employers Offer Defined-Benefit Programs
• Today's Retirees Rely on Employer-Based Programs, Social Security
• Boomers Plan to Work Beyond 65
• Financial Concerns Increase with Age
• Will Boomers Be Able to Afford Retirement?
• Will Boomers Overburden the Young?
• Redemption Possibilities
• Boomers Likely to Inherit Wealth

Health Issues

• Physical Changes Accompany Aging
• The Eyes: One of the First Things to Weaken
• Hearing Acuity Also Diminishes with Age
• Oral Maintenance Becomes an Increasing Concern
• Changes to the Skin
• Menopause
• Reduction of Sexual Functioning
• Baldness or Thinning Hair
• Heart Disease
• Prostate Cancer
• Diminished Strength and Flexibility of Joints
• Recent Trends Promise Better Health for Tomorrow's Elderly

Psychographics

• Individuation Increases with Age
• Five Key Values Underlie Mature Behavior
• Individualism Makes Mature Market Diverse
• Boomers' Attitudes, Tastes, and Preferences Established in 1950s and 1960s
• Factors That Influenced the Boomer Cohort
• Growing Up in the Shadow of the Bomb
• Birth Control and an End to "Reproductive Tyranny"
• Turning On and Dropping Out
• Influences of the 1970s
• Interest in the Outdoors
• Interest in Healthy Food and Alternative Healthcare
• Updated Study of Boomer Dreams
• Boomers Optimistic But Stressed
• Boomers Believe World Can Be Changed
• Peace Corps, An End to Hunger, Ben & Jerry's Other Examples of
• Boomer Optimism
• Health a Key Factor in Autonomy, Self-Esteem
• Appearance Important, Particularly for Women
• Aging More Psychologically Stressful for Men?
• Americans Picture Themselves Younger Than Their Chronological Age
• Growing Numbers See Maturity and Retirement As Time of Fulfillment

III The Market

• Figure 3-1: Mature Baby Boom Market, 1996-2003 (dollars)

Market Size and Growth

• Market Estimated at $930 Billion
• Methodology
• Table 3-1: Estimated Size of Mature Baby Boom Market, 1996-1998 (dollars)
• Boomers Dominate Market for Most Consumer Goods and Services
• Table 3-2: Mature Boomer Expenditures for Consumer Products and Services, 1995 vs 1997 (dollars): 9 Categories
• Americans 45-54 Have Highest Income
• Mature Boomers Still Building Net Worth
• Mature Boomers and Their Elders Own the Most Assets
• Table 3-3: Percent Owning and Median Value of Selected Assets by Age of Householder, 1993 (percent): Motor Vehicles, Homes, Interest-Bearing Accounts, IRA/KEOGH, Stocks/Mutual Fund Shares
• Home Is Most Important Asset
• Table 3-4: Distribution of Net Worth by Age of Householder and Asset
• Type, 1993 (percent): 13 Asset Types

Factors Affecting Market Growth

• Boomers Turning 50 at Rate of One Every Eight Seconds
• Boomers' Spending Ability Proven
• Congress Likely to Amend Social Security and Medicare
• Figure 3-2: Projected Growth of Mature Boomer Households, 1996- 2003 (number)

Projected Market Growth

• Market to Grow 16% in Next Five Years
• Table 3-5: Projected Growth of Mature Baby Boom Market, 1998-2003 (dollars)

IV Mature Boomers As Consumers

Spending on Consumer Products and Services

• Notes on Statistics
• Households 45-54 Have Highest Annual Expenditures
• Table 4-1: Average Annual Household Expenditures: Age 45-54 vs
• Total US, 1995 (dollars and percent): 17 Categories
• Mature Boomers Spend More in Virtually All Categories
• Boomers Particularly Important Consumers of Products/Services

Financial Services

• Boomers Pay Most into Pensions, Retirement Plans
• Table 4-2: Mature Boomer Spending on Financial Services, 1995 vs 1997 (dollars): 3 Product Types
• Investments Supplement Income of Many
• Boomers Rely Heavily on Plastic
• New Products Created for Boomers
• Boomers Active in Electronic Banking

Food and Beverages

• Boomers Spend More on Food
• Table 4-3: Mature Boomer Spending on Food Eaten at Home, 1995 (dollars): 5 Expenditure Categories
• Boomers Health-Conscious, But Eat What They Like
• Table 4-4: Mature Boomer Spending on "Indulgent" Foods, 1995 vs 1997 (dollars): 13 Categories
• Boomers Boost Success of SnackWells, Fruitopia, Other "Better for You" Products
• But Taste Most Important Criterion
• Boomers Drive Growth of Vitamins, Food Supplements
• Food Marketers Mobilize for Growth of Nutraceutical Market
• Empty-Nesters Enjoy Eating Out
• Survey Shows Dining and Entertainment a Key "Empty-Nest" Pastime
• Boomers Have Eclectic Dining Tastes

Automobiles

• Mature Boomers Spend More on New Vehicles
• Table 4-5: Mature Boomer Spending on Vehicle Purchases, 1995 vs 1997 (dollars): 6 Categories
• JD Power Research Notes Generational Differences in Car-Buying

Entertainment and Recreation

• Boomers Work Hard, Play Hard
• Table 4-6: Mature Boomer Spending on Entertainment, 1995 vs 1997 (dollars): 4 Categories
• Boomers Attend More Cultural Events
• Sports-Minded Boomers Pay to Play, Watch
• Boomers Continue Lifelong Love of Television
• The Beat Goes On
• Outdoor Recreational Equipment
• Boomers Expected to Change Fitness Industry
• Mature Boomers Spend More on Travel
• Table 4-7: Mature Boomer Spending on Travel-Related Expenditures, 1995 vs 1997 (dollars): 3 Categories
• Boomer Boon to Travel Industry Expected
• Mature Travelers Spend More, Stay Longer
• Adventure Travel a Hit with Mature Travelers
• Boomers May Spark Revival in Group Travel
• Cruises Also Popular

Apparel

• Mature Boomers an Underappreciated Market
• Table 4-8: Mature Boomer Spending on Apparel, 1995 vs 1997 (dollars): 5 Categories
• Boomers Spend More in Every Clothing Category But Baby

Healthcare

• Boomers Spend More on Healthcare
• Table 4-9: Mature Boomer Spending on Healthcare, 1995 vs 1997 (dollars): 4 Categories
• Boomers Expected to Remain Active Longer
• Boomers Bring Consumerism to Healthcare
• Treating Older Patients Broadens Medical Paradigm
• Boomers Forcing Changes to HMOs
• Mature Market Major HMO Target
• Loyalty to Physician One Fly in Ointment
• Boomers Likely to Press for "Alternative" Medicine Coverage
• Boomers Also Boost Demand for Plastic Surgery and Joint Replacements
• Boomers Boost Demand for Reading Glasses

Household Furnishings and Equipment

• Mature Boomers Spend More on Household Furnishings
• Boomers Own More Computers
• Table 4-10: Mature Boomer Spending on Household Furnishings and Equipment, 1995 vs 1997 (dollars): 6 Categories

Personal Care

• Boomers Spend More Than Other Age Groups on Personal Care Products and Services
• Table 4-11: Mature Boomer Spending on Personal Care Products and Services, 1995 vs 1997 (dollars): 2 Categories
• Boomers Seek Anti-Aging Skincare Products
• Boomers Also Concerned About Oral Hygiene

Shopping Patterns

• Boomers Not Crazy About Shopping
• Particularly About Shopping in Malls
• Boomers Shop When Younger Consumers Do
• Boomers Happy to Let Fingers Do Walking
• Boomers Willing to Try New Products
• Boomers Not Planning to Slow Down

At the Retail Level

• Boomers Like Choices
• Boomers Pay More for Quality But Like Bargains
• Aging Boomers Less Tolerant of Poor Service
• Pottery Barn, Barnes & Noble, Sharper Image Well Targeted to Boomers

V Mature Boomer Use Of Media

Overview

• Boomers Are Major Media Consumers

Television and Radio

• Older Adults Watch More Television Than 18- to 49-Year-Olds
• Yet Most Programming Ignores Older Viewers
• Advertisers Chasing Audience That Has Left Them
• Age Groupings Obscure as Much as They Reveal
• CBS Attempts to Change Groupings
• Advertisers Prefer Younger Audiences, But Reasoning May Be Flawed
• Nielsen Media Research Lists Top 10 Shows with Boomers
• Growth of Cable Creates New Programming Options
• Viewing Tastes Mellow with Age
• Fewer Gender Differences Among Mature Audiences
• Radio: Boomers Are Demographic Behind Many Stations

Print

• Mature Americans Consume All Forms
• Mature Boomers Major Part of Readership of Most Mainstream Publications
• Growing List of Publications Targeted to Mature Audiences
• Modern Maturity, the Largest-Circulation Mature Market Magazine
• New Choices Focuses on "Living Even Better After 50"
• McCall's Silver Becomes PrimeTime
• Weider Publications Launches Three Titles for Mature Adults
• More Targets Women 45 and Older
• Publications Signal Boomer-Inspired Trend
• Boomers Also Behind Surge in Home-Related Publications
• Age Wave Publications Target Boomers at 55

Direct Mail

• Catalogs Only Direct Mail Boomers Read
• Don't Call Them "Senior"
• Information Is Valued

Electronic Media

• Use of Electronic Media Growing
• SeniorNet—An Electronic Forum for the Mature Market
• Primelife Advisory Network Seeks Electronic Input
• Another PrimeLife Bills Itself as an "Intermag"

VI Marketing To Mature Boomers

Marketing Fundamentals

• Marketers Know Boomers, But May Need to Revisit Them
• What Worked with Previous Mature Audiences Won't Work with Boomers
• No "One-Size-Fits-All" Mature Category
• Boomers Not Planning to Slow Down
• Boomers Don't Want to Change Lifestyle Because of Age
• "This Is Not Your Father's Oldsmobile" Captures Right Attitude Product Must Be Right, Too
• Product Must Meet Boomer Needs—as They Define Them
• Humor a Key Ingredient
• Boomers Want to Have Fun
• New Experiences Motivate
• Boomers Also Seek Balance, Simplicity
• Five Key Values Motivate Mature Consumers
• Autonomy and Self-Sufficiency One Half of Equation
• Balanced by Social and Spiritual Connectedness
• Altruism Tied to Social and Spiritual Connectedness
• Personal Growth Also a Goal
• Revitalization Reinforces Internal Self-Renewal
• Most Effective Ads Reflect Two or More Values
• Nostalgia Appeals to Boomers
• Rock Music Captures Boomer Attention
• Show Older Adults Breaking the Mold
• "Ageless" Theme Also Effective
• Say It with Positive Images and Testimonials

Use of Celebrities and Language When Marketing to Mature Consumers

• Mature Adults Starved for Contemporary Role Models
• Use of Celebrities Not Particularly Important
• Boomers Not as Fussy About Language as Older Matures
• Don't Address Them as an Age Group

VII Examples Of Campaigns And Strategies Targeted To Mature Boomers

Overview

• Growing List of Marketers Taking Aim

Financial Services

• Banks and Insurance Companies Have Produced Some of the Best
• Advertising to Mature Boomers
• Fidelity Targets Baby Boomers with 50th Birthday Ad
• Bank of Boston
• MasterCard's "Priceless" Campaign Reflects Changing Boomer Values
• Prudential Campaign Utilizes Three of Five Key Values
• State Farm Centennial Campaign 172
• MetLife Sticks with Peanuts Characters

Food and Beverages

• Green Giant's Create-A-Meal Captures "Empty-Nest" Boomer Spirit
• Kellogg Effectively Targeting Wide Audience
• Sprite Humorously Captures Generation Gap Angst
• Burger King Uses Simple, Effective Approach

Automobiles

• "Not Your Father's Oldsmobile" Captures Boomer Sentiments
• Catera All Wrong Because Product, Advertising Weak
• Saturn Sells Relationships
• GM Includes All Ages in Recent Print Advertising
• Volkswagen Offers Boomers Their Soul

Travel

• Tour Companies, Resorts, and Travel Destinations Understand
• Importance of Mature Market
• Club Med Modifies Pitch to Sell "Community"

Apparel

• Dearth of Clothing-Related Advertising Reflects Market Lack
• Vanity Fair Includes Older Women in Advertising
• New Balance Demonstrates Importance of Product Over Positioning

Healthcare Services

• Few Healthcare Providers Advertise Nationally
• Pharmaceutical Companies Have Long Targeted Mature Consumers
• Viagra Is Age-Appropriate Advertising
• Evista Also Advertised Effectively

Personal Care

• Revlon Captures Right Attitude with "Age-Defying"
• Oil of Olay Creates Memorable Ads with Beautiful Women
• Rembrandt Age-Defying Toothpaste and Mouthwash

Appendix I: Examples Of Consumer Advertising

Appendix II: Selected Resources For Boomers At 50