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Marketing to Seniors. Team 3. Agenda. Defining a Senior Population and financial statistics Myths and Facts about seniors Failed campaign Successful campaign SWOT Analysis Recap. What is a Senior Citizen?. Merriam-Webster defines a senior citizen as:
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Marketing to Seniors Team 3
Agenda • Defining a Senior • Population and financial statistics • Myths and Facts about seniors • Failed campaign • Successful campaign • SWOT Analysis • Recap
What is a Senior Citizen? • Merriam-Webster defines a senior citizen as: • an elderly person; especially: one who has retired • 50 Age at which you can join AARP – • The American Association of Retired Persons • 55 Age at which you can get the Senior Discount at Denny’s • 591/2 Age at which you can withdraw your 401(k) without penalty • 62 Age at which you can collect Social Security • 65 Age commonly associated with the term “senior citizen” and retired persons in the US, Canada and UK • Also the age we assumed for our research
Common Misconceptions about Senior Citizens • Myth: Senior Citizens have no disposable income • Fact: • Senior Citizens have low fixed living costs • 82% of all seniors own their home outright • Most own their car • Fact: • Lower income does not mean lower available cash • $232,000 median net worth • 18% have over $100,000 in investments • 40% of discretionary income in the US
Common Misconceptions about Senior Citizens • Myth: Senior Citizens have no interest in modern technology • Fact: • 46% of seniors own and use cell phones • 42% or17.5 million regular internet users • Average senior spends 58 hours a month online • There are more seniors using twitter than 18-24 y/o • 10+ million seniors use Google • 8 million seniors use Facebook • 8 million seniors use YouTube • 6 million seniors shop on Amazon
Realities about the Senior Market • 41 million seniors • 87 million projected seniors by 2050 • Current life expectancy of 65 y/o is 84 and growing
General facts about seniors • Seniors do not think about their age in general. • Older people do not think of themselves as old. • Advertising that speaks to their active lifestyle rather than to or about their age is preferred. • 30% of seniors say they will avoid a product that is marketed towards older, or disabled persons
Does a memorable ad campaign mean it was successful? USA Today’s most memorable commercial of the last 25 years (2007)
Failed Campaign • Heinz Senior Foods campaign of the 1950’s was considered one of the first major marketing disasters • Essentially rebranded Gerber baby food as a product for people with dentures and chewing problems • Company spokesman Weimnan said: "The company understood the need that some seniors have for soft foods, but the product line bombed because older people don't want to stand in a checkout line with something that says you're a denture wearer.“ • Heinz has not specifically targeted an older market with any products since • The product failed as the older people shied away from the product perceived to symbolize old age, weakness and helplessness.
Successful Campaign Hoveround
What makes the Hoveround commercial successful? • The ad does not: • Mention any age or disabilities • Any ailment or inabilities • The ad does mention: • Independence (3 times) • Mobility • Inclusion in family events • Its all possible • Free to see the world • Ability to go where you want • Improve quality of life • Large, easy to read telephone number and email address both • DVD or VHS casette
Strengths • Large amounts of discretionary income • The ability to explore all nuances of their interests at their leisure. • Value for seniors comes in the form of high-quality, low-risk, reliable and easy-to-use products • Values determine buyer behavior • Starting to spend more aggressively
Weaknesses • Don’t like to be labeled as “seniors” • Buying behavior based on life experience and buyer knowledge • Physical limitations prevent some seniors from using products • Have difficulty reading small font in advertisements, brochures and contracts • Lack of consistency among the definitions of what constitutes a “senior” • Mass marketing does not work for this highly heterogeneous group
Opportunities • Seniors have not made their brand choices for the rest of their lives and they can change • Broken into 3 groups: “pre-retirement (55-65) “young-old” (65-80) and “old-old” (80+) • Seniors do experiment with new products • Seniors are living longer • Will buy loyally from marketers who speak to their core values and motivations in generationally appealing ways • Look for continued reassurance
Threats • Fickle when it comes to brand loyalty • If the perceived risks are overwhelming, seniors will refuse to purchase • Believe a simpler life is a better life-now is not the time to complicate their days • Stepping up the product ladder no longer fits their lifestyle • Less likely to take risks
Take Aways • Seniors don’t like to be treated differently than younger consumers • Seniors want to be independent and self-reliant • Seniors are willing to purchase technology • Must not be overly complicated to operate • Must offer perceived value • Seniors are very family oriented, and enjoy technology that will aide them in keeping close to loved ones