Silver Marketing: The State of Play in Asia · Silver Marketing: The State of Play in Asia...

Prepared for: SICEX 2008 Date: 11 January 2008

Silver Marketing: The

State of Play in Asia

Presentation

Prepared for:

SICEX 2008

Date:

11 January 2008

Prepared by:

Leon Perera, Spire Research and Consulting

Website and Contact:

www.spireresearch.com

[email protected]

http://www.spireresearch.com/


Topic Page

i. Key Survey Findings 5

ii. Issues in Silver Marketing 12

iii. Case Studies of Silver Marketing in Asia 15

iv. Key Take-aways 21

Table of Contents


B2B Customer

Decision

Dynamics

Market Sizing &

Segmentation

Competitor

Analysis

Channel

Research &

Value-chain

Analysis

Country Research

Price

Analysis

Holistic Market

Environment Research

(MER)

Business

Partner Selection

Spire Research and Consulting

Channel Research and Value Chain Analysis

Channel analysis – channel mapping,

identities of key channels & their vendor

alignments, drivers of channel loyalty and

satisfaction, brand perceptions,

satisfaction levels with principals, current

competitor-channel relationship analysis

Competitor analysis and

competitive environment analysis

Competitive environment:

Competitor strategy, targets

and tactical plans

Competitor infrastructure

Competitor operations

Analysis & forecast of

competitor financials

Recommendations on

competitor threat response

Benchmarking from

competitor best practices

Company investigation for partnerships

and M&A

Profiling & SWOT analysis of

potential partners

Evaluation and recommendation

for business partnership

negotiations

Market sizing and segmentation

Market sizing and forecasting

Market segmentation by geographic region, by

channel type, by price band & by customer

segment

Market trend analysis, future price inflexion points

Price Analysis

Price trend analysis

Product price gap analysis

Product price positioning

Product price & specification

database

Country economic, political and

social analysis

Development of country plans,

including legal/regulatory

issues analysis, government

relations strategy formulation &

scenario forecasting

B2B Customer decision dynamics

Customer base analysis

Customer usage & brand perception

Customer decision-making process &

key decision makers/influencers

Drivers of customer loyalty

Database of customer procurement

Research on specific customers

Recommended best practice in

marketing, sales & post-sales support


~20% of Asia is >50 years now, rising to ~40% by 2030

Big exceptions – India & Indonesia

Asia Pacific’s demographic transformation

22 2415

2330 30

16 1524 21 20

3746

24

50 52

40

2823

4238

31

4553

33

57 59

4337

30

48 4539>40

0

10

20

30

40

50

60

70

80

90

100

Japan

Chin

a

South K

orea

India

Singapore

HongKong

Austra

lia

Indones

ia

Mala

ysia

Taiwan

Thaila

ndTota

l

Countries in Asia Pacific

Perc

ent

ag

e o

f po

pul

atio

n

ag

ed

50

and

ab

ove

2005 2030 2050

Source: US Census Bureau

The Rising Silver Hair Segment Aging populations are tomorrow’s business opportunity


Research Methodology

Extent of Business Operations in Asia

Operates in

3 to 6 Asian

countries

30%

Operates in

1 to 3 Asian

countries

41%

Operates in

7 or more

Asian

countries

29%

Survey conducted in May 2007 as part of Spire Research and Consulting published

research program.

“Silver-hair” defined as aged over 50

Extension of Spire’s “Silver-Hair” survey with Singapore-based companies in 2006

Telephone interviews across seven Asia-Pacific countries – China, Hong Kong, India,

Indonesia, South Korea, Malaysia, Singapore

Total sample size = 105 firms

Profile of respondents:


Existence of Silver-Hair Marketing Strategy in Asia

Breakdown by existence of silver-hair*

marketing strategy in Asia (n=105)

Does not

have silver-

hair

marketing

strategy

77%

Has silver-

hair

marketing

strategy

23%

77% of MNCs interviewed currently do not have a marketing strategy

targeted at the Asian silver-hair segment

* The silver-hair market refers to senior citizen consumers aged 50 and above.


Plans to Strengthen Silver-Hair Marketing Strategy

Are there plans to strengthen these marketing

efforts? (n=24)

Will not

strengthen

marketing

efforts

21%

Will

strengthen

marketing

efforts

79%

Among the MNCs that currently have a silver-hair marketing strategy,

79% plan to strengthen these marketing efforts in the future


For those that do not currently have a silver-hair

strategy, will a strategy be developed in the near

future? (n=81)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Develop in next 1-2

years

Develop in next 3-5

years

Nu

mb

er

of

resp

on

de

nts

No

Yes

Intention to develop Silver-Hair marketing strategy

within the next 5 years (overall)

35% of MNCs that currently do not possess a silver-hair marketing strategy recognise a

greater need for such a strategy in the medium-term (next 3 to 5 years).

35%

65%

7%

93%


Breakdown of industries by existance of silver-hair marketing strategy

48

41

9

6

20

6 5 644

11 1

104

38

0

5

10

15

20

25

Healthcare

pro

ducts a

nd serv

ices*

Lifest

yle a

nd Leisu

re

Financ

ial s

ervic

es

Skin

and b

eauty c

are ICT

Pharm

aceutical

Auto

motiv

e

Cons

umer d

urable

s

Food a

nd Beve

rage

Reta

il

Energ

y/indust

rial

Oth

ers *

Nu

mb

er

of

resp

on

de

nts

Yes No

Breakdown of Industries by Existence of

Silver Marketing Strategy

Most MNCs in the ICT industry have no Silver strategy.

* The ‘Others’ category includes MNCs providing security services, advertising, and education & training services.


Industries that will benefit from silver-hair market growth

0

10

20

30

40

50

60

70

80

90

100

Hea

lthca

re

Pharm

aceutic

al

Life

styl

e and le

isur

e

Bank

ing a

nd in

vestm

ent

Insu

ranc

e

Medic

al e

quip

ment

Food

and

beve

rage

Prop

erty

Profe

ssio

nal serv

ices

Cons

umer e

lectro

nics

Aut

om

otive

Nu

mb

er

of

resp

on

de

nts Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Industries with Greatest Benefit from Growth of

Silver Market

The healthcare industry is perceived to be the greatest beneficiary of Silver market

growth


Countries that will offer greatest opportunities for the silver-hair market in

the next 5 years

0

10

20

30

40

50

60

70

Japan

China

Korea

India

Singa

pore

Hong K

ong

Aus

tralia

Mala

ysia

Taiw

an

Thaila

nd

New

Zeala

nd

Vie

tnam

Indonesi

a

Nu

mb

er

of re

spo

nd

en

ts

Greatest potential Second greatest potential Third greatest potential

Country Markets with Greatest Potential for Silver Strategies

Japan and China are perceived to offer the greatest opportunities for Silver strategies


Issues in

Silver Marketing


Among international companies in Asia there is little excitement and urgency about the

silver segment

There is a relative dearth of publishing & events, compared to eg PMEB and youth

marketing

Most of the interest is shown by only a handful of industries

Why so little interest in Asia’s Silver segment?

Why?

Other factors:

Ageing trend is seen as long-term…no need to act now!

Perception: Silver segment has less disposable incomes & spending, less well

educated

Marketers have less experience and expertise about this segment

Accomplished Silver marketers will soon be highly sought after!

Dearth of media to run targeted campaigns


Too explicit positioning around age may alienate boomers?

Examples from the West: Heinz pureed food for seniors, Gap’s

Forth & Towne chain… yet Sony’s “zoomer” cam-corder ads

were well-received

Issues in Silver marketing

Concerns that Silver campaigns may alienate younger consumers

Not enough Silver-focused channels to enable targeted

campaigns, implying need for programs like road-shows

Costs of redesigning products and testing/research

Lack of economies of scale

Possible need for more high-touch pre- and post-sales service, as

boomers may be less time-pressured


Case Studies of

Silver Marketing in Asia Insert relevant

picture


Healthcare

Best World

Best World is a publicly-listed, Singapore-based manufacturers

of nutritional supplements, personal care products and

healthcare-related consumer devices

Source: Spire Research and Consulting analysis of primary interview with Best World, secondary

research

Most of its consumers are in their 40s, with those aged >55

making up <25% of revenue

Keenly aware that its brand loyal customers are moving

into the >50 group

Recruits network marketers from the pool of older consumers

of its products, to sell to Silver segment (aged >40)

Most marketing investment goes to direct selling infrastructure,

with mass media advertising playing a supplemental role


High-Calcium Milk Powder

Fonterra

Anlene series of milk powder launched in 1995

Contains 500mg of calcium per 6-ounce serving, about

twice as much as regular milk

Targeted at women

The line now generates US$75 million in sales worldwide

Anlene Gold milk powder launched in 2005 in Asia

Source: Fonterra and US Dairy Export Council, 2000

Dietary supplement that helps protect against

osteoporosis with an additive that locks calcium into the

bones

Targeted at elderly women

Anlene Bone Health check program rolled out in 2006 – over

1.2 million people scanned in 9 Asian countries

Free bone scans for elderly women using portable

ultrasound devices, to raise awareness of osteoporosis

Public figures appointed Anlene Bone Health ambassadors


Special Mobile Phones

NTT DoCoMo

Raku-Raku mobile phone launched in Tokyo, Japan

Generation III in 2006, with Fujitsu and Fortemedia technology

Source: NTT Docomo, 2003

Features:

‘Slow Voice’ – slows down the spoken words coming

through the earpiece for easy listening

‘Clear Voice’ noise detection – takes into account

surrounding noise levels and adjusts the earpiece

and ringtone volume accordingly

Automated voice – reads out text from email or web

pages and announces incoming caller identities

Pedometer – works out daily calorie consumption


Top spots for Silver holiday-makers are Asian countries like

Taiwan, Japan, South Korea and China

>50% of China-bound bookings taken up by senior citizens

Tailored Tours

Dynasty Travel

Dynasty launched several elder-friendly tour packages to China and South Korea in 2007

Itinerary includes more time allocated for rest stops and

toilet breaks

Special meals provided

Source: Secondary data

Commonwealth Travel Services Corporation (CTC)

CTC introduced family-friendly tours four years ago and gives

special discounts for senior citizens traveling with their families

CTC currently has five such packages and at least 80% of the seats are filled each time.


Research, research, research!

In the short-term: avoid too much product redesign and leverage common platforms

Best Practices for winning in Asia’s Silver arena

Example of Sony which spent US$25m on advertising CE gadgets to the elderly

Try to target Silver segment by choice of media rather than developing new brand

messages, to manage impact on the brand

There is a dearth of Silver-focused media but this will change

When making product adaptations for Silver consumers:

Pay attention to their physical attributes in designing not only product functionality

and packaging but also waiting rooms, retail spaces, print-outs

Consider hiring boomers to sell to boomers

Manage value – an inflationary environment will challenge the Silver segment

Consider cross-industry alliances with other companies, eg nutrition and personal care


Key Take-aways Insert relevant

picture


How will Asia’s Silver segment be served in future?

Companies need to act fast on Silver marketing because it

takes time to build knowledge, tweak products, rethink go-to-

market processes and build brand loyalty

Some industries are in the fore-front of this effort (healthcare,

lifestyle, financial) while others (eg ICT, automotive) need to

catch up

China will be a major arena for Silver marketing, but other

countries in Asia should not be neglected – “old”/aging

countries like Korea & Singapore, as well as “young” countries

with large populations like India and Indonesia

There is a lack of focal points for outreach to the Silver

segment

Do Asian countries need an AARP equivalent?

E-communities and web portals will become more

important: Asian versions of Eon and grandparents.com

will spring up

Silver Marketing: The State of Play in Asia · Silver Marketing: The State of Play in Asia...

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