Marketing to Seniors

1. Marketing to Seniors Team 3

2. Agenda • Defining a Senior • Population and financial statistics • Myths and Facts about seniors • Failed campaign • Successful campaign • SWOT Analysis • Recap

3. 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

4. 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

5. 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

6. 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

7. Seniors have a combined net worth of $9.5 Trillion!

8. 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

9. Does a memorable ad campaign mean it was successful? USA Today’s most memorable commercial of the last 25 years (2007)

10. 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.

11. Successful Campaign Hoveround

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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