boomer marketing
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BoomerMarketingMainstay of the Travel Industry
Presented by Warren Sukernek to the Seattle Direct Marketing Association – October 2006
Travel Market Reality
• Today there are 78M boomers
• 10,000 people join the 50+ market
each day
• Bread and butter of the travel
industry
• 50+ market buys 80% of luxury travel
Boomers Are The Growth
Opportunity• By 2010, the 35-44 year-old group will decline by 2.5 million people and
the 45-59 year-old group will grow by 4.5 million people!
– Just beyond Boomers—those 60-64—will grow by 3.7 million.
Total
US
<14 15-
19
20-
24
25-
29
30-
34
35-
39
40-
44
45-
49
50-
54
55-
59
60-
64
65-
69
70+
Population Change by Selected Age Groups 2005-2010
4.5%1.8% 0.8%
4.1%
8.2%
2.1%0.9%
11.0%12.4%
28.1%
20.2%
5.6%
-3.5%-7.7%-10%
-5%
0%
5%
10%
15%
20%
25%
30%In 2010, there
will be 6% fewer 35-44 year-olds
than in 2005
2000 – 2020 Trends
• 55 – 64 year olds +72% growth
• 65+ 54% growth in population
• 25 – 44 decline of 8% (4.3M)
Percentage of Boomers in 50+ Population
67%
2010
2000
22%
2005
44%
Source: U.S. Bureau of the Census, 2004
Boomers in PerspectiveThey’re a Huge Market!
• ―Boomerland‖ is the 15th largest world population –78 million people
– A population larger than England, Italy or France
• Largest population segment in the U.S.
• Estimated to spend up to $2 Trillion annually
• Makes them the 11th largest world economy
– Spending larger than GDP of Mexico or Canada
They’re Powerful!
• Ikes/WWII—51 million
• Gen X—57 million
• Gen Y—76 million
They’re Dominant!
Lifestage
Affluence
Demographics
Health
Market
Behavior
Age/
CohortValues
Mature consumers are complex
Thrifty, Patriotic,
Sacrificing,
Defer
Gratification
Boomer Influences: Formative Years
Political/
Social
Formative
Years1930 to 1945 1974 to 19831967 to 19771960 to 19701946 to 1963
Prohibition,
Social Security,
FDR/ New Deal,
Bread Lines,
WWII, Labor
Movement
McCarthyism,Cold
War, Brown vs.
Board, Highways &
Suburbanization,
Korea
JFK, LBJ, MLK,
Civil Rights, Viet
Nam, Woodstock,
Kent State, Draft
Lottery
Viet Nam, ERA,
Watergate,
Roe vs. Wade,
No Fault Divorce,
Casual Sex
Hostage Crisis,
Reagan, Terrorism,
Middle East Conflict,
Rise of Conservatism
Economic Stock Market Crash,
Great Depression,
Keynsian Econ
G.I. Bills,
Housing Act,
Prosperity
New Frontier,
Medicare, Great
Society
Price Controls,
Nixonomics,
Inflation
Oil Shocks,
Reaganomics,
Stagflation
Popular
Culture
Chaplin, Babe
Ruth, Radio,
“Talkies”,
F Scott Fitzgerald,
Movies, Lindbergh,
No TV
Sinatra, James
Dean, Elvis, M.
Monroe, Disney,
Hot Rods, Duck &
Cover, Sputnik,
Family TV
The Beatles, Dylan,
Rolling Stone
Magazine, Moon
Walk, The Pill,
Psychedelic Drugs,
News TV
Saturday Night
Live, All in the
Family, Mary Tyler
Moore, Ms
.Magazine,
Counterculture TV
Star Wars, Disco,
Fitness Craze, Punk
Rock, Space
Shuttle, Crack and
Drugs,
Crime & Violence
TV
Core Traits Idealistic, Demanding,
Nonconformist, Seek
Immediate
Gratification
Pragmatic,
Apolitical, More
Conservative,
Fade to GenX
Status Quo,
“Don’t Rock the
Boat” Respect
Authority
Status conscious,
Individualistic,
Seek Immediate
Gratification
WWII IkesLeading
Boomers
Middle
Boomers
Trailing
Boomers
Purchases
Occupation
Values are the “traffic cop” of behavior
Hobbies
Lifestage
Affluence
Demographics
Health
Age/
CohortValues
The Values Philosophy
Members of any generation are linked by the shared life experiences of their formative
years.
It is not the experiences and events
themselves that have meaning . . .
The beliefs and core values that are created as a result of these events are
important.
Why Values?Values provide powerful explanations of
consumer behavior:
• Serve as standards of conduct
• Tend to be limited in number
• Remarkably stable over time
-0.042
-0.019
-0.019
0.000
0.010
0.033
0.065
0.391
-0.20 -0.15 -0.10 -0.05 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40
Home Entertainment
Investors
Techno-Geeks
Do-it-Yourselfers
Field and Stream
Home and Hearth
Athletics
High Culture
Mean Factor Score
Cruise Line Customer
Affinities - Destination Asia
Gender
• While gender differences in terms of processing
information are huge in younger cohorts, as people
age, the male approach to information processing
actually moves toward the more intuitive, that is,
more “female” in the way they approach information
and ideas.
• When marketing to consumers 50+, messaging for a
female consumer has broader appeal to male
consumers.
PrimeTime Women
› 80% of all spending in U.S. households
› 94% of home furnishings
› 89% of vacations
› 88% of kitchen appliances
› 75% of new homes
› 80% of healthcare spending
› 66% of personal computers
› 55% of consumer electronics
› 60% of new cars/80% of all car sales
› 80% of home improvement projects
› 50% of the private wealth
› 75% of household finances
Women control:
Boomer Insight
• Boomers are not planning to retire the way Matures did in their 60’s.
– They will work in flexible arrangements, start their own businesses, and volunteer in unprecedented numbers
– Matures are the largest segment of leisure travelers.
– Boomers will take shorter trips, with more frequency because of work and caregiving commitments.
– Grandtripping is a growing trend.
– Traditional cruising will have to shift from Mature values to Boomer values.
– International travel is still tentative for every segment.
– Boomer international travel is often experientially driven; cooking vacations, wineries, genealogy, exploration.
WesternCanadaMexicoCaribbean
14%
18%
11%9%
7%
19%
24%
31%
25%
4%3%3%
4%4%
14%15%
29%
23%
2%4%
5%6%
8%10%
20%
23%
31%
34%
26%26%
Eastern
Europe
AlaskaSouth
America
Central
America
AsiaHawaiiWestern
Europe
CanadaMexicoCaribbean
International Destinations
• The most common international traveldestinations are close by—the Caribbean,Mexico, Canada and Western Europe.– The Matures are exploring the widest array of
destinations.
Q.17: Which international destinations have you traveled to in the past three years for vacation?
Among Those Who Travel Internationally For
Leisure
Ge
n X
ers
Bo
om
ers
Ma
ture
s
Conclusions
• The Me generation– I’m special
– I deserve it
– Health conscious
• Experiential– Local culture
– More volunteerism
– Adventure travel
– Extended family travel
– Mastery travel
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