<ul><li>Highlights: </li></ul><ul><li>Online Survey of 150 Boomers </li></ul><ul><li>How did we get into this mess? </li><...
Six Major Themes/Dimensions: 1. Budgetary Restraint 2. Institutional Antipathy 3. Liberal Antipathy 4. Slippage 5. Credit ...
A Less Than Idyllic Retirement <ul><li>33%  of respondents responded  “Frankly I don’t ever think I can afford to retire” ...
Impoverished Millionaires. <ul><li>Of Respondents claiming net worth of  $1MM-$5MM   (including home equity): </li></ul><u...
What They’re Saying: On Retirement: “ The idea of retirement has become further and further away.” “ I have enough to live...
The Socio-Tectonomic Shift <ul><li>76%   of respondents classified themselves as  “Comfortable, Affluent or Rich”   PRE-Do...
The Natives Are Angry <ul><li>65% of respondents either  “Tremendously ”  or  “Very” Disillusioned   with business and gov...
What They’re Saying: On Blame: “ Really mad at Wall St., big banks, investment firms and mortgage companies. They were all...
Employment Angst. <ul><li>43%   of Total Respondents have some sort of “issue” with their employment status </li></ul><ul>...
Consumption Consequences:  Recent Consumption Changes <ul><li>Three types of spending patterns emerge as a result of the D...
Credit Cards = Dinosaurs? <ul><li>32%  of respondents reported  Heavy Usage/Reliance   on Credit Cards  PRIOR  to the Down...
What They’re Saying: On Employment and Consumption Patterns: “ Both my husband and I had jobs eliminated last year.” “ Hus...
Going Forward:  Spenders or Spendthrifts? <ul><li>Not one respondent expects to increase their level previous level of spe...
Lifestyle Issues:  Housing Situation <ul><li>83%  of respondents  claim a decrease   in home value  of 10%+ vs. a year ago...
Lifestyle Issues:  Stress and Activity Levels Response <ul><li>74%  of Respondents claimed either a “Modest,” “Fair Amount...
What They’re Saying: On Declining Home Values and Stress: “ Pity the people who lost their investments plus the house decr...
Baby Boomer Survival Guide
How Can Boomers Possibly Survive? Cut Back on Spending NOW! Fill in the GAP. Re-Invent Yourself Seek Out Affordable Living...
Baby Boomer Marketing Opportunities
Marketing Opportunities: <ul><li>Greed is Gone :  </li></ul><ul><li>The era of excess is over in reality but most importan...
Marketing Opportunities (cont’d): <ul><li>De-Stress the Distress :  </li></ul><ul><li>Short term opportunity to position a...
www.babyboomerbust.net www.Brandloft.com
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Transformation in Progress: A Report from the Trenches - Roger Chiocchi

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Roger Chiocchi, author of Baby Boomer Bust? and principal of Brandloft, revealed results from his study conducted for his book on how baby boomers around the nation have been impacted by the recession and where they stand in terms of retirement.

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Transformation in Progress: A Report from the Trenches - Roger Chiocchi

  1. 2. <ul><li>Highlights: </li></ul><ul><li>Online Survey of 150 Boomers </li></ul><ul><li>How did we get into this mess? </li></ul><ul><li>9 Individual Boomer Profiles </li></ul><ul><li>The End of the World as We Know It? </li></ul>
  2. 3. Six Major Themes/Dimensions: 1. Budgetary Restraint 2. Institutional Antipathy 3. Liberal Antipathy 4. Slippage 5. Credit Card Avoidance 6. The Blame Game
  3. 4. A Less Than Idyllic Retirement <ul><li>33% of respondents responded “Frankly I don’t ever think I can afford to retire” </li></ul><ul><li>42% responded, “Before the economy turned, I thought I was fine. Now I’m not sure.” </li></ul><ul><li>17% responded, “I plan to work until I drop because I have to.” </li></ul><ul><li>Only 21% responded, “Between by 401K, Personal Assets, Home and Social Security, I’ll be fine.” </li></ul>
  4. 5. Impoverished Millionaires. <ul><li>Of Respondents claiming net worth of $1MM-$5MM (including home equity): </li></ul><ul><ul><li>16% classified themselves as “Compromised/Poor” POST-Downturn </li></ul></ul><ul><ul><li>33% were worried about their jobs </li></ul></ul><ul><ul><li>26% were uncomfortable about being able to make their mortgage payments going forward </li></ul></ul><ul><ul><li>47% weren’t confident about their retirement plans POST-Downturn </li></ul></ul>
  5. 6. What They’re Saying: On Retirement: “ The idea of retirement has become further and further away.” “ I have enough to live on, but not to retire.” “ I will not be able to retire and maintain my present life style.” “ As a Texas teacher, my retirement pension will be appx. $3900 per month before taxes and medical insurance. Retirement becomes a joke.” “ I have no retirement plan. We have a little savings and that’s it. I will work until I can’t and die.”
  6. 7. The Socio-Tectonomic Shift <ul><li>76% of respondents classified themselves as “Comfortable, Affluent or Rich” PRE-Downturn . </li></ul><ul><li>Only 42% classified themselves as “Comfortable/Affluent/Rich” POST-Downturn . </li></ul><ul><li>Only 7% classified themselves as “ Compromised/Poor” PRE-Downturn. </li></ul><ul><li>32% classified themselves as “Compromised/Poor” POST- Downturn. </li></ul>
  7. 8. The Natives Are Angry <ul><li>65% of respondents either “Tremendously ” or “Very” Disillusioned with business and government leaders </li></ul><ul><li>66% “Furious” at Mortgage Companies </li></ul><ul><li>53% “Furious” at Investment Banks/Hedge Funds </li></ul><ul><li>49% “Furious” at Wall St. </li></ul><ul><li>43% “Furious” at Large Multinational Banks </li></ul><ul><li>39% “Furious” at Bush Administration </li></ul>
  8. 9. What They’re Saying: On Blame: “ Really mad at Wall St., big banks, investment firms and mortgage companies. They were all very responsible.” “ Treating homes as casino chips was a poor idea, and packaging loans into traded derivatives was destructive.” “ Small banks that stuck to the tried and true are fine today.” “ I’ve been fiscally responsible and now I’m supporting the slackers.” “ I witnessed the rampant greed and puffery led to the current credit/mortgage situation….there were few controls and zero accountability.” “ Most people in government and executive positions are immoral – until that changes our country will go downhill. ‘The Fall of Rome.’”
  9. 10. Employment Angst. <ul><li>43% of Total Respondents have some sort of “issue” with their employment status </li></ul><ul><ul><li>13% work for big companies and are worried about their jobs </li></ul></ul><ul><ul><li>2% are public employees and worried about their jobs </li></ul></ul><ul><ul><li>5% have recently been laid off </li></ul></ul><ul><ul><li>21% are self-employed and describe business as “not so good” </li></ul></ul><ul><ul><li>2% have to hold down more than one job to get by </li></ul></ul>
  10. 11. Consumption Consequences: Recent Consumption Changes <ul><li>Three types of spending patterns emerge as a result of the Downturn: </li></ul><ul><ul><li>Luxury Items: Consumers plan to either “eliminate completely/significantly cutback” on Vacations (46%), Wardrobe (41%), Restaurant Meals (41%) and Leisure Activities (32%) </li></ul></ul><ul><ul><li>“ Cheap Thrills”: Consumers plan to either “increase” or make “no change” to DVD/Premium Cable (63%), Movies(51%) and HBA (47%) </li></ul></ul><ul><ul><li>“ Essentials” : Consumers plan to either “increase” or make “no change” to purchases of Med/Pharma (80%), Groceries (48%), Alcohol/Tobacco (56%). </li></ul></ul>
  11. 12. Credit Cards = Dinosaurs? <ul><li>32% of respondents reported Heavy Usage/Reliance on Credit Cards PRIOR to the Downturn. </li></ul><ul><li>Only 15% anticipated Heavy Usage/Reliance on Credit Cards in the FUTURE – a 53% decline. </li></ul><ul><li>28% reported that they used Credit Cards Sparingly/Not at All PRIOR to the Downturn. </li></ul><ul><li>51% reported that they planned on using Credit Cards Sparingly/Not at All n the FUTURE – an 82% increase . </li></ul><ul><li>According to the open-ended responses, many respondents indicated that they use credit cards only for convenience/bonus points with very little revolve . </li></ul>
  12. 13. What They’re Saying: On Employment and Consumption Patterns: “ Both my husband and I had jobs eliminated last year.” “ Husband had to fire half of his department and is seeking to take package and leave before company’s benefits decrease.” “ I have cut up most of my cards. I used to pay them off when extra money came in but then the extra money stopped. I found myself with $28K in credit card bills.” “ They decreased my limits on my cards and increased my finance charges. I have decided not to pay.” “ Haven’t been to the beauty salon for nearly a year. I’ve been cutting my own hair and it isn’t pretty.” “ All non-essential expenses were reduced significantly or eliminated.” “ The 46 inch flat screen will have to wait… A bigger TV doesn’t make me happy.” “ We’re going to cut back – Anna Wintour was recently quoted at an ostentatious fashion show: ‘That’s so Dubai.’ In other words: ‘that’s so over.’”
  13. 14. Going Forward: Spenders or Spendthrifts? <ul><li>Not one respondent expects to increase their level previous level of spending when the economy rebounds. </li></ul><ul><li>Only 27% claim that they will return to their previous level of spending </li></ul><ul><li>65% claim that they will either cut back “slightly” or “significantly” from their previous level of spending when the economy rebounds. </li></ul>27% 44% 21%
  14. 15. Lifestyle Issues: Housing Situation <ul><li>83% of respondents claim a decrease in home value of 10%+ vs. a year ago; 44% claim a 10%-30% decline. </li></ul><ul><li>39% indicate some level of discomfort in being able to stay in their homes going forward. </li></ul>
  15. 16. Lifestyle Issues: Stress and Activity Levels Response <ul><li>74% of Respondents claimed either a “Modest,” “Fair Amount” or “Significant” amount of Added Stress/Anxiety due to the Downturn. </li></ul><ul><li>34% claimed a “Significant” or “Overwhelming” amount of Stress/Anxiety </li></ul><ul><li>“ Exercise/Workout/Jogging ” (26%) and “Yoga/Meditation” (11%) exhibited the largest activity increases in response to the Downturn </li></ul>Activity Level Increases Due to Downturn
  16. 17. What They’re Saying: On Declining Home Values and Stress: “ Pity the people who lost their investments plus the house decreases and they if they lose their job – times will be very tough.” “ If I lose my job, my house will be foreclosed within two months.” “ The only way to get assistance is to stop paying the mortgage, which I don’t want to do. “ I always worry about my job.” “ I definitely feel more stressed about my retirement savings. I’m hoping I won’t have to work until I’m 80! “ I’m mad as hell and I don’t know who to complain to.”
  17. 18. Baby Boomer Survival Guide
  18. 19. How Can Boomers Possibly Survive? Cut Back on Spending NOW! Fill in the GAP. Re-Invent Yourself Seek Out Affordable Living Alternatives
  19. 20. Baby Boomer Marketing Opportunities
  20. 21. Marketing Opportunities: <ul><li>Greed is Gone : </li></ul><ul><li>The era of excess is over in reality but most importantly, emotionally. </li></ul><ul><li>Emphasis on “the good life” – unless very narrowly targeted -- will not resonate with most consumers and will most likely turn them off. </li></ul><ul><li>Popularize Populism : </li></ul><ul><li>Any marketing products/communications that bypass the grasp of large institutions on individuals lives should resonate. </li></ul><ul><li>Examples: social networking programs, cooperatives, credit unions, regional/local banks, etc. </li></ul><ul><li>Solutions, Not Celebration : </li></ul><ul><li>Consumers want hard-nosed concrete solutions to their problems. </li></ul><ul><li>How can I afford to retire? How can I ever pay for college? How can I afford to keep food on the table? What happens if I lose my job? </li></ul><ul><li>Companies that develop and communicate solutions to these and other problems will resonate with the masses. </li></ul>
  21. 22. Marketing Opportunities (cont’d): <ul><li>De-Stress the Distress : </li></ul><ul><li>Short term opportunity to position a variety of products/services as stress-relievers. </li></ul><ul><li>Examples: health clubs, meditation regimens, certain food products, short term getaways, etc </li></ul><ul><li>Programs for the Self-Employed : </li></ul><ul><li>35% of respondents classify themselves as self-employed. </li></ul><ul><li>Opportunity to develop innovative programs that cater to this group </li></ul>
  22. 23. www.babyboomerbust.net www.Brandloft.com

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