50-Plus Marketing

Britain - vision of Japan’s decade of stagnation

2009-11-21T17:42:00.002Z

I haven’t written anything about the recession for some while. That doesn’t mean to say that it is no longer important or that it is still not the only show in town for marketers – it is.

There is only so much doom and gloom that you can read and write. Of course recessions create lots of business opportunities but, for most marketers, it is and will be grim.

I am sure you will have seen the countless ads that infected the UK TV for “consolidation loans”. The proposition was simple. You might be up to your neck in debt one of these loans can help by consolidating the debt into a single loan, give you a bit of breather from paying the interest, secure the loan on your house and then charge you an even larger interest rate in the future.

The UK is like the consumer who was duped by this sales line. It has consolidated its debts, into a staggeringly large public sector debt, and the nation is waiting for the first repayment bill to drop through the Treasury's letter box.

Until now it is only the unemployed who have suffered from the recession. The task of paying back the debt will affect everybody.

If you think I am overstating things have a read of this leader in today’s New York Times. Not a happy story. Dick Stroud

Britain may finally be emerging from recession, but many analysts warn that it is a false dawn. In fact, they argue, the economy here is so ravaged by growing debts and ruined banks that it could well be following in the steps of Japan’s lost decade of the 1990s.

The parallels are eerie: Like Japan, Britain enjoyed more than a decade of booming growth, fed by aggressive bank lending and real estate investments. Haunted by the comparison, policy makers have been extra aggressive in using fiscal and monetary levers in hope of preventing the stagnation and banking stasis that plagued Japan for so many years.

Some economic indicators over the last week have been positive: an uptake in retail sales, fewer jobs lost and an export revival. Yet analysts say they may well turn out to be teasers that cloak deeper, more structural flaws in the economy.

In addition to rising debt, the tax base is collapsing and the crippled banking industry has yet to show it can generate profit by lending to companies. And so on and so on and so on…..

Saviours of the UK recording industry

2009-11-20T06:35:00.003Z

Today, Shirley Bassey (72) re-entered the album charts with her first album of original material in 20 years. number 20.

The Guardian has an article commenting the latest example of a veteran artist who has found critical and commercial acclaim beyond retirement age. "It's been a vintage year for veteran artists," said the man from the Official UK Charts Company. "The success of older acts has been growing over recent years but it has peaked in 2009."

There are a number of factors behind the twilight glory of older artists, including the changing retail landscape. High street retailers like Zavvi and Woolworths have gone but supermarkets, where older music fans tend to buy their music, are playing a much bigger part in album sales.

Labels are realising that chasing the older market makes sense when younger music fans are used to getting their tunes for free. Is what we are seeing the final fling of the CD player versus the inevitable march of iTunes?

The list of oldies who are back in fashion goes on and on.. Neil Young (64). Bruce Springsteen (60), Leonard Cohen (75), Barbra Streisand (67), Vera Lynn (92)…….

The fascinating question for the music industry is if the strength of attachment that these older artists have with their own age cohort will be repeated in the future. I have no idea. Dick Stroud

RIAS’s aquatic customers

2009-11-18T07:11:00.003Z

Back in September I talked about RIAS’s TV advertising campaign featuring the "real life" of an over-50s consumer.

The company has just launched a new home insurance ad that recognises that today's over 50s are active, individual, busy and experienced. This tale of the everyday 50-plus features a volunteer lifeboatman.

I expect that the choice of the lifeboat theme has a lot to do with the popularity of these people and their charity with older Brits.

What made me smile is that RIAS is perpetuating the fascination that companies have with older people and water. The first ad featured a women long distance swimmer. So many ads have older people on the beach, wobbling around on surf boards or running hand in hand through the waves. I am sure the reason I notice this water thing is that I hate the stuff – not the washing or drinking variety but the sort that get you wet.

Anyway, RIAS is highly successful company and I am sure they have done their homework and tested the ad to destruction with the target market.

Finally, a personal plea to the new marketing director of the company who is on record as saying that she intends to make more use of digital media. After spending a pile of money on a new ad and PR campaign why not ensure that you digital media, like this ad, is at least available on YouTube or your the web site? Dick Stroud

Technology adoption and age

2009-11-18T06:33:00.002Z

The Cable & Telecommunications Association has just published some research about the uptake of online services in the US.

It concludes that those 65+ using the Internet use it a lot and in a wide range of ways. I think we pretty much knew this but it is always nice to see a bit more evidence supporting this view.

The report contains a nice image showing the uptake of various types of technology by age group. Again, nothing new but some facts from a different source. Dick Stroud

Coca-Cola is targeting just about everybody

2009-11-18T06:29:00.002Z

An item appeared in one of the UK marketing magazines that states that Coca-Cola is targeting the emerging middle classes, ageing customers and younger, more environmentally-conscious consumers in a bid to double its revenue by 2020.

It is would be more informative to say the groups that Coca-Cola is not targeting.

You have to give it to the brand, it’s cannot be accused of “aiming too low” when it wants double the daily servings to over three billion and be the ‘number 1’ non-alcoholic ready-to-drink brand in every market and every category within a decade.

The ceo says that there will be a renewed focus on older, wealthier consumers: “To target aging and affluent consumer globally, we are actively exploring new ingredients, new functionality and new occasions."

This all sounds exciting stuff. It will be interesting to see how the aspirations translate into product and advertising. Dick Stroud

Mr Google looks into his crystal ball

2009-11-18T06:22:00.001Z

When the CEO of Google gets his crystal ball out and looks to the next 5 years it is worth 6 minutes of your life to listen to what he has to say. If you have 45 minutes that you are willing to spare then you can listen to the complete version of Eric Schmidt’s interview in front of the assembled hoards of CIOs and IT Directors at last week's Gartner Symposium/ITxpo in Orlando.

Nothing specific about the 50-plus but essential listening for all marketers, irrespective of their target market.

For me the most interesting comment was his prediction that the distribution distinctions between TV, radio and the web will go away. Certainly video will (is) dominate the Web. Don’t forget that there is only one company that focuses on Web video made for older consumers. Dick Stroud

Retro is good but going back to tweed!

2009-11-16T08:52:00.003Z

A lovely article in the New York Times about the way that teed is making a big comeback. I know the recession has sensitised our instincts to revel in all things old but going back to tweed is, I think, a step to far. What next – bear skins? Dick Stroud

The impact of age on charity volunteering

2009-11-16T08:35:00.002Z

I recently read an article by Rob Berry about a research project he undertook for one of the world’s most respected charities, Medecins Sans Frontieres.

From his research he discovered that the age of the doctors had a significant impact on their rationale for wanting to become involved with the charity. I asked Rob to write a few words for inclusion in my blog explaining what he discovered. Here is what he said.

Research amongst medical practitioners, academics and policy advisers was used to understand the motivations and barriers to volunteering. Whilst there were some important common motivations in terms of altruism and humanitarianism, there were also fundamental differences depending on age. Older doctors were particularly motivated by the wish to use their skills in a less well resourced area as a way of putting something back. They were also ready for a break from routine. Nevertheless, they had concerns that needed to be overcome in MSF’s communications: the length of assignments, safety, living conditions, issues around leaving family and friends and arranging absence cover.

Younger doctors were often motivated by a sense of adventure but needed reassurance about the danger or benefits of this sort of career break. Financial considerations were more important to this group than to their older colleagues.

MSF were able to develop a communications programme for recruitment that used the common denominators whilst addressing the needs of different groups. Understanding the importance of age delivered greater efficiency in attracting the right volunteers when and where they were needed.

I wonder how many charities have a one size fits all approach when trying to attract volunteers?

In this case age is an important factor. In other cases lifestyle will be the main determinant. The only way you are going to find out is by research. That is where Rob’s research agency (Manor Marketing) comes in. Dick Stroud

Ageing in place products and the market

2009-11-16T08:20:00.002Z

This is an account, from the Ageing in place technology blog about the annual American Association of Homes and Services for the Aging (AAHSA) conference, that brought together 9000 attendees and 425 exhibitors.

The blog posting contains lots of references about new products targeted at the ageing in place market plus insights into the marketplace for such products. I found this comment very interesting.

Vendors compete with inaction, not each other. One vendor speculated that all of the technologies represented at the show together represent at most a 5% adoption rate among the populations they could serve. And that's probably just in the US. The biggest competition for all of these vendors is inaction and lack of awareness.

The UK has just the same problem. There is a need – no doubt. There are products and services that can greatly assist older people wanting to remain in their homes and get the maximum from life for as long as possible – no doubt. Do older people, or their children, know about these products, do older people know about the concept of “ageing in place” – almost certainly not.

One huge marketing opportunity with an equally daunting marketing challenge. Dick Stroud

All you every wanted to know about marketing to older consumers

2009-11-16T07:40:00.002Z

A while back I was the lead editor on a series of online talks about marketing to older consumers

The publisher, Henry Stewart, has made available a teaser of the first 5 minutes of each of the sessions. If after watching you don’t buy the whole package I will be astonished!!!

Here are my two sessions. How the older market is evolving internationally and The web and the 50-plus. Dick Stroud

Simplicity - a new computer for oldies

2009-11-12T14:14:00.006Z

Full marks to Discount Age, the company that has launched the Simplicity computer. A wise choice of celebrity ensured that this new computer got a lot of radio and television exposure.

This 'simple' computer costs a bit more than your standard PC but for this you get an open source based computer with the Eldy software that hides all of the techno gunk allowing the user to get on with their simple applications of e-mail, browsing, printing etc. You also get a pile of videos showing you to use the thing.

It will be interesting to see how then venture gets on. My bet is that if somebody hasn’t bought a computer by now then this new product will not be enough for them to get out their credit card. Maybe it will be attractive children to buy one for their parent’s Xmas? The declared market for the product is the 50-plus. I don't think so, much more likely to be that group of the 70-plus who have tried to get their heads around using a PC but gave up but who still have a real requirement to be online - probably to keep in contact with their family.

The new computer is interesting, but I was more fascinated by the parent company, that sells a newsletter (£10/year) providing discount opportunities for the over -60s.

There are a lot of people trying to attack this market. Way back in 2007 I talked with Daniel Wilson when he started seniors discounts. It is amazing how this has grown. At one stage he tried to charge for membership but it appears as if this has now been dropped. I think Val Singleton and her friends might discover the problem for all people trying to charge for content – including the 50-plus - is the expectation that content is free. Dick Stroud

Revenge of disco dad

2009-11-12T13:45:00.003Z

An amusing article in today’s Marketing about the search for authenticity meaning that parents, rather than celebrities, have become the heroes of Generation Y.

The “Damn right your Dad drank it” ad campaign for Canadian Club whisky is quoted as supporting this hypothesis.

I don’t know if I buy this argument about a new found affinity and respect between the generations. In support of the argument, the author quotes research from the World Values Survey that is said to show changes in personal values within generations with today’s parents being far more flexible in the way their value system changes.

I think a more convincing argument is that the values of youth (i.e. fun, creativity, individuality, etc) are shared with the wider adult culture.

There is a profound set of implications if these arguments are correct. It means that Gen Y is attracted to brands and products that have a strong sense of ‘realness’ or authenticity which means that old things, original things, or things that just have a very well defined sense of self.

In many ways authenticity has become the new cool and parents are proving to be about as authentic as it gets. Does this mean the generation gap has narrowed or indeed closed?
I don’t think so, however, it is food for thought. Dick Stroud

Age Concern + Help the Aged = Age UK

2009-11-11T17:51:00.003Z

Let me get this right. Back in Feb 2009, when Age Concern and Help the Aged decided to merge, they registered the new charity, under the legal name of Age UK and then announced they were launching a rebranding exercise to come up with a puker new name.

Corporate Edge, the branding consultancy was hired and money spent. Nobody knows how much but it is thought to be less than £100,000.

Today, 10 months later, the charity has decided stick with the name they first came up with. Now call me an old cynic, which I am, but I bet my boots that the reason they have taken all of this time to come back to where they started is that they couldn’t agree with any of the alternatives.

I have nothing against Age UK; it is a perfectly decent and acceptable name. As I said in a previous post, the one thing that was certain, was that the new name was going to contain the word ‘age’. This constraint means there are not that many alternatives. Apparently a couple of the names that didn’t make the grade are Agenda and Age Matters.

Maybe I am being really dumb but the names of the two organisations had a meaning. Age concern – pretty obvious; Help the aged – pretty obvious. What significance and meaning does ‘UK’ in Age UK add?

I wonder if Corporate Edge will use Age UK as a reference client? I guess the selling pitch would go something like this: “ Age UK were so impressed with our work that after 10 months they rejected all of our brand name suggestions and used the one they came up with in the back of a taxi..”

Enough, enough, the deed is done, the name is in place. Best wishes to Age UK. Dick Stroud

Vision and ageing

2009-11-11T11:03:00.002Z

After cognitive decline, the physiological effects of ageing on eyesight are, in my view the most important for marketers to understand. Let's be honest, it is a subject that most marketers don't ever think about. This video makes a start to explain one facet of the problem - the decline in the eye's ability to distinguish colour contrast. This article provides a much more detail explanation of the subject. Dick Stroud

Amazing marketing successes in ageing Japan

2009-11-11T10:46:00.002Z

Kim Walker’s blog has some fascinating examples of commercial successes that are a direct result of Japan’s rapidly ageing population. If you want a glimpse at the future of marketing then observe Japan.

On the whole, older people have amassed all of the 'stuff ' they want/require and are looking for a different type of satisfaction. An opinion poll conducted by the Cabinet Office found that 44% of people in their 20s are seeking material wealth, in sharp contrast with 66% of seniors in their 60s searching for mental happiness.

Here are two of examples that Kim has collected together.

Tokyo Disney Resort has seen visitors aged 40+ grow from 2.8% of revenues in 2003 to 18% in 2008. It is not surprising that the company has started selling a special Wednesdays-only pass for the parks for people aged 45 and older

Middle-aged and elderly people accounted for 54.5% of Japanese overseas travellers last year, an increase of around 9% from 10 years earlier. JTB Corp. established a subsidiary specializing in senior travel in 2005, and sales skyrocketed 190% last fiscal year compared to 2006.

There are many examples that illustrate what happens when you live in the fast ageing country on the planet. Dick Stroud

The Future Perfect Company

2009-11-11T09:50:00.001Z

Ages ago I talked with a lady called Philippa Aldrich who had an idea to create a web site to sell products that were designed to be useful to older people.

Unlike most people who have a good idea that never progresses beyond a hazy concept, this one has become a reality.

The Future Perfect Company has just launched its web site. I reckon it is well designed and is definitely age-friendly. Very best wishes to the company. Dick Stroud

H1N1 Vaccine: A Generation Gap?

2009-11-10T06:04:00.003Z

Being vaccinated against Swine Flu is a good idea? Your answer to the question appears to be governed by when you were born.

A fascinating article in Media Post suggests that in the US there is a distinct generational divide with older people getting the jab whilst their kids rejecting the offer. Another article appeared in the New York Times.

The argument put forward for this age divide is that older people were brought up with having their arms pricked against all sorts of nasties (e.g. polio, diphtheria) whilst for the younger generation it is a new thing. The other explanation proposed is that older people have first hand experience of the results of epidemics whilst younger people have only read about them, or more likely, listened to a podcast.

I would add another reason for the difference. Younger people have been brought up in an era when the story of a person suffering side effects, or worse dying, following a jab, is national news in a matter of hours. This situated occurred in the UK, with most of the population unaware that within a week the real explanation for the death was revealed as having nothing to do with the jab – the damage was done.

Why on earth is this of any interest to marketers, other than on a personal basis?

This is what the author of the article says:

But, this generational divide has also exposed a marketing misstep that has broader implications for all marketers. Public health officials neglected to take these different generational experiences into consideration when developing their marketing communication efforts. Had they done so, they might have been more effective in encouraging younger parents to inoculate their children.

It's a lesson all marketers should heed -- whether they are marketing health care, financial services or consumer products. Generational first-hand experiences drive attitudes, beliefs and purchase decisions.

Beware, don’t take this generation differences stuff too far, but in this case I think it is a pretty good explanation. It would be fascinating to know what the situation is in the UK. Anybody out there with an answer? Dick Stroud

Recession forces luxury brands to target the wealthy

2009-11-09T09:00:00.002Z

The first thing that popped up on “must blog” list is another item about luxury.

According to a Luxury Institute study, summarized by AdWeek, state-of-the-market series, 77% of high-end shoppers "agreed that luxury is less important in today's economy."

Surprisingly, the majority of affluent consumers aren't big luxury shoppers. Pre-recession, most of the luxury market's power came from lower-income aspirational buyers. Now they can no longer afford to shop that way, so luxury brands are looking for new ways to sell to the actual wealthy.

According to the survey, many affluent consumers said that they're primarily interested in quality and service, which they consider hard to find in luxury goods.

The survey also found that the rise of discounting has damaged people's brand perception.

"Radical discounting is a disaster. It tells people how big the margins were." Shoppers are confused, forgetting that luxury items are more expensive because they are of higher quality.
AdWeek suspects that shoppers will be much more discriminating in the future. One expert mentions a "rise of connoisseurship."

Interesting stuff. So if the aspirational buyers are having a hard time and it is the really wealthy who are still buying, what difference does that make to the profile of the target customer? Methinks it has just got older. Dick Stroud

"Luxury Shame" a byproduct of the recession

2009-11-08T16:54:00.005Z

According to the consulting group Bain & Co, shoppers are suffering from "luxury shame". These results appear in its latest report about the global luxury industry.

The WSJ (sorry subscription only) covers this research and has a fascinating article about the trials and tribulations of the luxury suppliers.

Guilt has really increased in the last year, says the brand strategist Martin Lindstrom.

Why am I talking about this? Well, it is an extreme example of the impact of the recession on consumer behaviour, something all marketers should be interested in understanding. Secondly, the 50-plus are significant purchasers of luxury goods so a large number of this generation are experiencing this phenomenon.

Apparently some luxury brands are emphasising marketing tactics they hope will be an antidote to the guilt syndrome. Things like promising to channel profits to a charity, as shoe brand Cole Haan recently did with its offer to get a 15% discount on a new pair of shoes when you donate an old pair to a designated charity.

The good old catch-all of promise of saving the planet from climate change is another wheeze being used to make people feel better, like the Swedish clothing brand Filippa K that opened a second-hand store in Stockholm that sells used clothes of its own brand for at least 50% off.

What seems like a much more commercial approach is encouraging Internet shopping (i.e. let people get the luxury buzz at home instead of in the store, away from the scorn of the poor). Not surprising that there has been an estimated 20% jump in online luxury sales this year (according to Bain & Co).

In the same week as the “luxury shame” story was being covered in the media there was news that, Milan's Versace Group announced that it would cut 26% of its worldwide workforce and consolidate its operations in an effort to return to profitability by 2011. The fashion house has also made plans to close all three of its stores in Japan due to poor sales, though the company's business is successful elsewhere in East Asia.

“We’re reviewing in a comprehensive way the whole structure of the company,” said the company’s chief executive - that sounds bad.

Next time you open a magazine that is full of ads for luxury watches, jewelry, holidays etc that are the same campaigns as were used pre-recession, just think what a total waste of promotional spend. Most of the luxury brands are still living in a state of denial. Dick Stroud

RIAS's focus on the 50-plus pays off

2009-11-08T13:35:00.003Z

RIAS, the insurance company that is exclusively for the 50-plus, has been voted in the top 2 Car insurance providers in the UK, by the Auto Express readers in the 2009 Driver Power survey, the same position as in 2008.

To drive, sorry excuse the pun, the company on to bigger and better things it has appointed BUPA's ex-chief marketing officer as marketing director, with a remit to increase the brand's use of digital channels in its direct marketing mix.

Just goes to show how successful a company can be that commits to selling to the older market.

A word of advice to the new marketing director. Have a good look at the company’s web site. It is need of good spring clean. Not very logical, inspiring or easy to use. Dick Stroud

Agency bosses too old and change resistant

2009-11-08T10:06:00.001Z

If I had a £ for every time somebody says to me: “the reason that marketing is youth-centric is that agency staff are all young” I would be a wealthy man. I would be even wealthier still if I also got a £ for every time somebody tells me this fact and then expects me to be surprised.

I have to say that I haven’t heard the statement about agency bosses being too old before. An interesting observation you might say, but even more so when it comes from a Mr M Sorrell (aged 64). I guess what he is saying is that it is all the other agency bosses, but not him, that are too old.

Of course what he is saying is probably true. I guess it is summed up by his statement: “WPP isn't an advertising business anymore.” Advertising was so yesterday, today, digital rules.

"The people who run agencies tend to be of an older vintage - to put it politely," said Sorrell. "They tend to be resistant to change and want to spend the last three to four years of their careers travelling around the world rather than dealing with fundamental strategic issues on a daily basis."

I have never subscribed to the argument that you can blame agencies’ focus on Yoof because the average age of their staff is just pushing 30 years old. Of course it is part of the problem, but the far more important issue is that agency staff, of all ages, tends to be a conservative, risk averse bunch; even thought they think the are totally the opposite.

Agency staff, and most of their clients, find it impossible to think outside the 18-35 ABC1 box. Sure, within that box they come up with zany ideas and innovative uses for digital technologies. but most of them have a ‘c’ for conservative stamped through their creative soul. Sad really, but I guess agencies attract these sorts of people. When they get older they become even more conservative as Mr S observers. Dick Stroud

Getting older going into debt a UK and US problem

2009-11-07T08:25:00.001Z

In March 2009 I wrote that in the UK borrowers approaching retirement owe four times as much as 10 years ago. I just read another report, this one from the US, titled “Debt of the Elderly and Near Elderly, 1992–2007” from the Employee Benefit Research Instiute. This paints an equally horrible picture of what is happening to the debt profile of older
people.

The headlines from the report say

Debt levels rising: Debt levels of those in or near retirement age are heading up: Among elderly families—and especially among the lower-income elderly—both housing debt and consumer debt levels are rising. For some cohorts, a substantial percentage have debt levels well beyond the threshold considered problematic.

Percentage with debt: A growing share of older American families had incurred debt through 2007, particularly those ages 55–64—the ages right before or at the start of retirement.

Debt levels: As the percentage of families with a head age 55 or older with any debt increased from 1992–2007, the average total debt level also increased: from $32,191 (2007 dollars) in 1992 to $70,370 in 2007; the median debt level (half above, half below) of those with debt increased from $15,923 to $43,000.

Rising housing debt a major concern: Although rising debt levels are not necessarily a sign of danger for all elderly or near-elderly families (especially if they are also high-income), rising housing debt is of particular concern, since housing typically is the major asset elderly families have. Leveraging it at this point in their lives may leave them without a major resource to finance an adequate retirement, given the recent downturn in the housing market.

What is terrifying about these results is that they are prior to the recession. Ahhhh. Dick Stroud

Twitter status of US users

2009-11-06T14:43:00.001Z

This is really interesting. Those who Twitter in the US look as if they are just as likely to have an MBA as being a High School drop-out. As you would expect the user base is still predominantly young. This analysis is from Pew Internet and appears in its reported entitled Twitter status of users. Dick Stroud

Pew Internet research on the democratization of social networks

2009-11-06T14:11:00.006Z

Social network services users have gone from being classic early adopters (i.e. Male, highly educated, young to middle-aged, urban) to become every man and woman – with a continued skew towards youth and as diverse, if not more than the internet-using population.

This doesn’t mean that more older adults aren’t flocking to social networks, they are, but younger adults are also still using these networks, so the overall representation of the age cohorts in the user population has actually gotten younger.

I think that is trying to say is that you are now getting all types of younger people using these networks, which is keeping the age profile young, however, you are also getting a lot of older users who are coming from a limited profile of society. Why don’t you download the presentation and make your own mind up. Dick Stroud

The ageing consumer and their online habits in Asia Pac

2009-11-06T12:45:00.004Z

Here's an abridged version of the presentation Kim Walker delivered to the 2nd Southeast Asian iMedia Agency Summit in Phuket, Thailand during October, 2009. Features information about the ageing consumer and their online habits. Good stuff. Dick Stroud