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
US Population % by Age Group
27%
26%
10%
Under 18
18 to 24
25 to 44
45 to 64
24%
13%
65+
Seniors have a combined net worth of $9.5 Trillion!
$250,000
Median Net Worth by Age Group
$200,000
$232,000
$180,125
$150,000
$98,350
$100,000
$51,575
$50,000
$1,475
$8,525
$0
Under 25
25-34
35-44
45-54
55-64
65+
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” (6580) 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