what do mature consumers want
TRANSCRIPT
-
7/31/2019 What Do Mature Consumers Want
1/29
Submitted by
Group 8
-
7/31/2019 What Do Mature Consumers Want
2/29
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.
-
7/31/2019 What Do Mature Consumers Want
3/29
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
-
7/31/2019 What Do Mature Consumers Want
4/29
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
-
7/31/2019 What Do Mature Consumers Want
5/29
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
-
7/31/2019 What Do Mature Consumers Want
6/29
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.
-
7/31/2019 What Do Mature Consumers Want
7/29
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
-
7/31/2019 What Do Mature Consumers Want
8/29
-
7/31/2019 What Do Mature Consumers Want
9/29
-
7/31/2019 What Do Mature Consumers Want
10/29
The Age-quake
-
7/31/2019 What Do Mature Consumers Want
11/29
Decrease in birth rates worldwide
-
7/31/2019 What Do Mature Consumers Want
12/29
Characterstics of demographic
agequake
Birthrates are falling
People are living longer People are staying healthy longer
People are wealthier
People are working longer
-
7/31/2019 What Do Mature Consumers Want
13/29
Life Expectancy at age 60
-
7/31/2019 What Do Mature Consumers Want
14/29
Evolution of income share for the over -60s
-
7/31/2019 What Do Mature Consumers Want
15/29
U.S workforce age-wise growth
-
7/31/2019 What Do Mature Consumers Want
16/29
Difficulties faced Large stores
Hard to reach products on shelves
Difficult packaging Small labels, pricing and directions
No sitting space
-
7/31/2019 What Do Mature Consumers Want
17/29
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
-
7/31/2019 What Do Mature Consumers Want
18/29
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
-
7/31/2019 What Do Mature Consumers Want
19/29
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
-
7/31/2019 What Do Mature Consumers Want
20/29
Technology usage
-
7/31/2019 What Do Mature Consumers Want
21/29
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
-
7/31/2019 What Do Mature Consumers Want
22/29
Online shopping
-
7/31/2019 What Do Mature Consumers Want
23/29
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
-
7/31/2019 What Do Mature Consumers Want
24/29
Mature British consumers reaction to
advertising
62%
64%
66%
68%
70%
72%
74%
76%
advertisingportrays usnegatively
I do not relate toadvertising at all
-
7/31/2019 What Do Mature Consumers Want
25/29
Social interaction
Personal attention, seating and clear selection
Easy to open packages
Easy to read labels
Requirements of mature customers
-
7/31/2019 What Do Mature Consumers Want
26/29
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
-
7/31/2019 What Do Mature Consumers Want
27/29
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
-
7/31/2019 What Do Mature Consumers Want
28/29
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
-
7/31/2019 What Do Mature Consumers Want
29/29