InStore Marketing Presentation 11/13/08

The Impact of Aging Consumers on Manufacturers and Retailers

WHO IS VARSITY?

WHAT WE DO

Experience began with more than 75 retirement communities

Backed up by a 50-member marketing team at Pavone

National experts

Branding

ArchImaging

Research

Design

Packaging

Advertising

Public relations

Interactive

Sales promotions

CRM

Media

WHY WE DO IT

Most marketers are not in this demo

To better understand a new marketing demo without assumptions

Ethnographic research to create a truly unique point of view

To assemble a predictive model of future Boomer behavior

DEMOGRAPHICS

55+ market is larger than Hispanic and African-American markets combined

Holds over 75% of the nation’s wealth

Has nearly 2 trillion dollars in disposable income

Controls 70% of all disposable income

Life expectancy of 55+ continues to rise

DEMOGRAPHICS

Older adults will continue to be a MUST target

Distinct cohorts

65+ are patient, thrifty,

honorable, respect authority

55-65 (leading-edge Boomers) are impatient, wealthy, decisive, seek entertainment

GOALS OF STUDY

Add depth to base of existing Boomer/older adult intelligence

Study of emotional and physiological needs to inform new products, marketing design, and best use of media

Study mature market for base of comparison against aging Boomers in future studies

INITIAL STUDY

Ethnographic research

2 researchers lived 24/7 at CCRC for 31 days

Conducted focus groups, shop-alongs, personal interviews

Residents’ and researchers’ journals, blogs and video

SOME RESULTING SUGGESTIONS

SOME SUGGESTIONS

Product/packaging design

Retail design

Boomer mindset

OVERALL APPROACH

The biggest opportunities

Help them take things for granted again

Treat them as smart consumers

Be clear about what you are selling

Keep their physiology in mind

Sight

Strength

Stamina

RETAIL DESIGN

Access is important

Automatic door, but not “handicap” automatic door (Boomers won’t use it)

Wide aisles – space for scooters

Non-skid flooring

Large signage

Greater need for non-glare lighting to make it easier for them to read

Large/clear labeling with high contrast

Furniture that accounts for physiology of older adults

Actions when planning to go shopping

Used when shopping

Found difficult while shopping

55+ BOOMER SPENDING

PACKAGING DESIGN

Difficulties with products

55+ BOOMER SPENDING

55+ BOOMER MINDSET

Don’t want to be “seniors”

See themselves as 15 years younger

Active aging – engaged in life

Feel and act younger than parents

General sense of optimism

Transition from accumulating possessions to collecting experiences

Self-fulfillment and lifelong learning

55+ BOOMER LIFESTYLE

Boomers

Their lifestyle is who they are

What they do says more than their age

Want to maintain lifestyle into old age

Retirement is a time of self-expression and reinvention

They want to collect different experiences

55+ BOOMER LIFESTYLE

Experiences

Restless and searching for novelty

Adult learning classes have grown

Forensics to world religions

Gourmet cooking classes

55+ BOOMER SPENDING

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55+ BOOMER SPENDING

SUMMARY