What Do Mature Consumers Want

7/31/2019 What Do Mature Consumers Want

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Submitted by

Group 8


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Introduction Falling birthrates and increasing longevity means that,

for the rest this century, the fastest consumer groupwill be over age of 60.

As people live longer the implication for themarketers, retailers and manufacturers promise to beboth dramatic and far reaching.


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About the study A.T. Kearneys Global Business Policy Council launched a global

survey 2947 people surveyed in 23 countries Participants from cities, towns and rural areas Participants from all income brackets

Age group: 60s, 70s and 80s Half of surveys performed were face to face interviews in a variety

of shopping areas Other half were conducted on A.T. Kearny website Geographic breakdown of survey:

One-third in the Euro zone 22% in BRIC nations 14% in emergent markets 12% in USA


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Continued 60% respondents were women out of which only 12% were from

rural areas There were different classifications for income groups:

Below minimum local income Between minimum and average local income Above average local income(over represented by males)

The sample was believed to be broad enough to represent localconsumer groups of the market

These people signify the main shopping communities for theirage groups

The modest over-representation of above average income group

makes them of particular interest to retailers Employment statistics:

55% retired 18% did volunteer work 27% worked part-time or full time


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Facts In the United States alone, people who are 60 and reaching thatmilestone soon (50+ in 2011) will control more than half of the

projected $706 billion spent on grocery in 2015, stated theMcKinsey U.S. Aging Consumer Initiative

The A.T. Kearney report cites disappointments felt by oldershoppers The inability to navigate large stores too many products beyond their easy reach on either high or low

shelves hard-to-open product packages hard-to-read labels, prices and directions

Consumers polled by the consultancy also noted the lack of restspots, understaffed stores and a lack of knowledge by store staff. On the whole, mature consumers want and expect a sympathetic

understanding of the realities of age, but they do not want to betreated as old or elderly


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Continued

As older shoppers grow more important to the foodindustry, retailers and CPG manufacturers need tounderstand their desire for better health whichmeans theyll continue to look to make smarter,better-informed food purchases in comfortablesettings.


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Continued Other insights from the A.T. Kearney study of 2,947

people older than 60 in 23 countries: They enjoy shopping as a social and leisureexperience offering physical activity They prefer to shop on weekdays, often early in themornings when stores are less busy The older they are, the more they prefer smallerstores and shopping closer to home They seek quality products, are loyal to brands, andnot particularly price-sensitive


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The Age-quake


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Decrease in birth rates worldwide


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Characterstics of demographic

agequake

Birthrates are falling

People are living longer People are staying healthy longer

People are wealthier

People are working longer


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Life Expectancy at age 60


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Evolution of income share for the over -60s


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U.S workforce age-wise growth


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Difficulties faced Large stores

Hard to reach products on shelves

Difficult packaging Small labels, pricing and directions

No sitting space


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Mature shoppers shopping pattern Shopping for social and leisure experience

Shop for more than 2 times a week

Prefer time when shops are less busy Prefer small stores

Choose stores close to their place

Spend less on clothes & transportation

Spend more on health products & beverages

Prefer quality products


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Different patterns among different

NationalitiesJapanese prefer Tailored product

Western European more loyal to brands

Indian prefer spending on housingAmerican more on health products

People in sub tropical areas spend on energies


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Effects of promotions

Prefer promotional products if they suits there qualityneeds

For 34% respondents, promotional offers are good.

22% people were not influenced by promotions.

Mature customers dont buy more than needed


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Technology usage


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Internet Usage Want to be well informed

Use internet for information,research and communication

In developing companiesmature people are movingtowards online shopping

In UK, Silver surfers

becoming fastest growinginternet usage group


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Online shopping


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Advertising too loud and focussed on young generation

Most of mature customers do not relate to theadvertisements at all

Failed campaign of Geritol and Fortisan.Developing age neutral advertising is a challenging task.

M t B iti h ti t


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Mature British consumers reaction to

advertising

62%

64%

66%

68%

70%

72%

74%

76%

advertisingportrays usnegatively

I do not relate toadvertising at all


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Social interaction

Personal attention, seating and clear selection

Easy to open packages

Easy to read labels

Requirements of mature customers


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AARPs efforts to understand the needs of aged and oldconsumers

Encourages its members to come forward and vote

Mature consumers have a high influence on politicalprocess as they are almost three times more likely to votethan youth

Issue of social security playing its part in political circles inthe US.

The new old age


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MITs Age Lab innovative efforts to understandimplications of aging, focussing on three themes

Infrastructure

Innovation

Institutional

Development of AGNES , a suit to calibrated to understandthe challenges associated with aging

Retail, public transportation, home , automobiles are usingAGNES.

Understanding the mature consumers


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In next 25 years, individuals older than 85 years willrepresent more than 8% population of Japan and 3-5% ofUSA and Europe.

The group will be having a high purchasing power incoming years

So the companies needs to understand the needs of thissegment and device their marketing strategies accordingly.

Conclusion


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What Do Mature Consumers Want

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