Bag Those Boomers
Retailers can win over today's young-at-heart baby boomers by developing products and messaging that meet their unique needs.
Much has been written about the baby boomer generation — the 75.8 million Americans born between 1946 and 1964. Also dubbed the "Me generation," the group once accounted for a whopping 40 percent of the U.S. population (in 1964) and still claims a 26 percent share, according to a December 2010 publication from the Pew Research Center of Washington, D.C.
This year, the oldest baby boomers turn 65. The youngest boomers, meanwhile, are in their 40s — with retirement still a fairly distant reality.
Despite the nearly 20-year gap between the youngest and oldest boomers, the generation as a whole can be expected to fight the aging process every step of the way. In fact, a 2009 Pew Research Center survey found that baby boomers do not believe "old age" actually begins until age 72.
And as a group, baby boomers still boast tremendous purchasing power. A Nov. 16, 2010 USA Today article says boomers' spending "is growing at a pace that's leaving younger generations far behind," noting that U.S. consumers age 50 and older spent $2.9 trillion in 2009.
That reality presents numerous store brand product-development and marketing opportunities for retailers willing to do their homework.
A diverse bunch
Complicating the product development and marketing strategy is the fact that U.S. baby boomers are a very diverse bunch in terms of life experiences and need states. "It is not an unquestionable truth that a boomer is a boomer is a boomer," asserts Rockville, Md.-based Packaged Facts, in its June 2008 "Baby Boomers" report. For that reason, the market research firm breaks down the generation into "older boomers" (born between 1944 — two years before the boomer years officially begin — and 1953) and "younger boomers" (born between 1954 and 1963 — a year before the boomer years officially end).
As it turns out, older boomers tend to be less optimistic than their younger counterparts.
"Recent research has uncovered a trend called 'boomer bummers,"' notes Michelle Edelman, boomer expert and president of NYCA, a Solana Beach, Calif.-based integrated marketing and ad agency. "As [older] boomers pass into the typical retirement ages — as they get their AARP cards and turn milestones — they start to get depressed."
Edelman, also a contributing author/editor for two baby boomer-related books, notes that the rates of suicide and clinical depression for these older boomers are rising. After all, they were part of the generation that wanted to change the world, but now are facing realities they cannot alter. "Much
is not controllable," she adds, "particularly as age affects health and appearance." In
contrast, younger boomers are still in the "family forming" stage, Edelman says. Many still have children at home; they are actively pursuing careers and were not greatly impacted by the turbulent times of the 1960s.
"They are more optimistic and feel more in control than their older counterparts," she explains.
But Stanton Kawer, CEO of Northbrook, Ill.-based Blue Chip Marketing Worldwide, contends that stage is more of a factor than age within the boomer segment.
"Their differences — defined by income, consumption, shared cultural references and vitality — are too varied to paint a broad stroke," he says. "In addition, their own sense of self goes through stages and can greatly influence the products they would put into their 'consideration set' and the positioning they would find most relevant."
Eugene Fram, emeritus professor of marketing at Rochester (N.Y.) Institute of Technology's E. Philip Saunders College of Business and a marketing consultant, says psychologists also divide boomers into subsets according to four major factors: their physical mobility, mental acuity, social activity and financial stability. Boomer behaviors, including those related to purchase decisions, are influenced greatly by how a person functions within each of these factors.
Gender counts, too
Boomer wants and needs also differ somewhat by gender. According to Sharon Glass, group vice president of health and wellness for St. Petersburg, Fla.-based Catalina Marketing, boomer women — like other women — are more concerned than men about their appearance.
"The only difference is that... there are different issues with appearance later in life than there were when they were in their 20s," she says. "Men are taking more interest in skincare, creating a new market. However, the men's market is not as mainstream as the women's market."
Female boomers also tend to be more health-conscious than men in their approach to eating. In fact, 66 percent of female boomers surveyed for the Packaged Facts report said they "work for the right balance in their diet," as opposed to 52 percent of male boomers.
Despite women's greater interest in anti-aging skincare and health-minded foods, retailers could find an opportunity in male boomer-specific products, suggests Jason Provenzano, president and founder of Farmingdale, N.Y.-based Vitacap Labs.
"Very few products are geared toward baby boomer males, so this remains an untapped market," he says. "Historically, men have always looked for products that are reactive rather than proactive in regard to approaching their overall health and well-being. But baby boomer males are beginning to go to doctors for regular checkups and are subsequently finding value in being proactive with their health."
Products with appeal
Despite their age- and gender-related differences, boomers as a whole are interested in products that will keep them young — or at least looking and feeling young — for as long as possible.
Boomers want to be healthier than their own parents were at their age, Glass notes, and are trying to fight the aging process on both the inside and outside of their bodies.
"Any products that have been proven to help reverse or stop the aging process are of the utmost interest among this group," she adds.
Moreover, brand loyalty does not appear to be an issue. Kawer notes that a 2009 study performed by Chicago-based SymphonylRI Group found that the popularity of store brands actually accelerates with age.
"Sixty-six percent of boomers age 53 to 62 purchased store brands, and 83 percent gave the products 'excellent'
quality ratings, while only 70 percent of boomers 44 to 52 [at the time] and 73 percent of [consumers] age 34 to 43 concurred," he says. "This indicates that there is significant opportunity for retailers to capitalize on products that align with this particular segment of boomers, including health and nutrition products."
Boomers also are what Edelman calls "conscientious consumers" — meaning they pride themselves on being smart with their money. She says retailers can win boomers over with store brand products that fall into two categories: products with no obvious psychological value (such as batteries) and products that are volume-oriented (such as facial tissue and liquid hand soap). In addition, boomers place value on American-made products.
"They are experimental in nature," Edelman adds. "The idea of brand loyalty is not necessarily true, as they will experiment with things via couponing, [a] sale or new package design."
Eye on ingestibles
Store brand opportunities likely are most plentiful, however, on the nutritional supplement and food and beverage sides of retail. Within the supplement arena, boomers seek out omega-3 formulations for heart health, as well as products geared toward joint health, anti-aging and weight loss.
"As our appearance has been — and will continue to be — one of the most focused-on elements of our body health and wellness, retailers should continue to capitalize on the profit margins associated with products that cater to anti-aging and weight loss," Provenzano notes.
Liquid delivery systems are of particular interest to boomer users of joint health and anti-aging nutritional supplements, who often have to swallow multiple pills or tablets per day, notes Tarick Gamay, business development manager for DreamPak LLC of Alexandria, Va. He points to his company's single-dose LiquidTubes — portable, lightweight single-dose portions — as a potential solution. Consumers simply add the liquid to water to make an enjoyable finished drink.
"Delivering supplements and beverages such as single-serve liquid concentrates is a completely untapped market," he adds. "Such products would capitalize on the baby boomer generation's need for easy-to-purchase, -carry and -consume products."
Catalina Marketing's health studies have shown that boomers also are very interested in health-related foods, Glass says.
"They want to avoid common diseases and conditions that historically occur in their age group, such as heart disease, diabetes and cancer," she notes.
Less health-minded foods that appeal to ; boomers age 53 to 62 include ice cream, chocolate candy, nuts, seeds and corn nuts, Kawer adds, based on recent point-of-sale data. And younger boomers — who tend to be time-pressed and budget-conscious — gravitate toward salty snacks, frozen pizza and cold cereal.
Get boomers to buy
The development of boomer-minded store brand products is only part of the equation for success. The right packaging, merchandising and marketing also go a long way to attract the boomer dollar.
According to a Feb. 5 article in The Wall Street Journal ("From Diapers to 'Depends': Marketers Discreetly Retool for Aging Boomers"), boomers are very concerned about a product's appearance, not just its utility. And boomers also appreciate packages that are easy to open and that include key information in larger font sizes.
And when it comes to marketing messages, retailers need to consider boomers' varying life stages, Kawer says. He maintains that product messaging that promises to "enhance a vibrant and healthy life" is quite different than that purporting to "extend or protect" a healthy life. Boomers, however, are targets for both types of products.
"It still comes back to marketing 101," he days. "Retailers need to demonstrate empathy and respect for their shoppers' preferences rather than merchandising by assumption."
Messaging also must match the environment of the medium employed, Kawer says. Speaking of media, retailers need not limit themselves to print, radio and TV to reach boomers.
"Boomers are engaged at surprising levels," he notes. "One-third of the 195 million Internet users are age 50-plus. Two-thirds of Americans 50 to 64 use the Internet, and 72 percent of baby boomers have broadband Internet in their homes."
As they age and develop new health issues, boomers want to learn how to battle these challenges, Provenzano says. They use the Internet to educate themselves on how to live longer and healthier lives.
Boomers also are very comfortable with social media, Edelman stresses.
"Huge droves of boomers are joining and using social media," she notes. "Fifty percent of boomers are on Facebook, Linkedln, and that number increased 88 percent from 2009 to 2010 — a big reason is connection to past colleagues or friends, and another is photo-sharing with kids [and] grandkids."
Boomers' interest in social networking (although they still prefer e-mail communications) presents an opportunity for retailers to reach out with coupons for store brand items or free samples, she adds.
As for the marketing message itself, boomers — annoyed in general by advertising — detest a pitch that overpromises, Edelman says.
"If you don't have a defensible claim, don't do claims-based marketing to boomers," she advises. "They want real information they can trust."
Boomers rely on their physicians for sound health advice, meaning a product that has a medical reason behind it will be appreciated if it is presented in an informational context, Edelman says.
"They read nutritional information and would not mind advertising that is comparative in this way," she adds. "It might seem 'uninspiring,' but it will not be seen that way by boomers."
Retailers also will want to customize offers and promotions to meet boomers' individual needs, Glass notes. A one-size-fits-all approach will not work. Some boomers are concerned about weight gain and their physical appearance, while others are more worried about heart disease, cancer or diabetes.
Still, some messaging works well across the entire segment. For example, boomers respond well to convenience and ease-of-consumption claims, DreamPak's Gamay says.
Finally, retailers could find ways to make shopping easier and more pleasurable for boomers.
"Sixty-three percent say that shopping used to be more enjoyable for them," Edelman notes. "So imagine if you don't enjoy shopping, and you've just downsized your big house in the suburbs for a downtown loft and you have to buy toilet paper — completely ungratifying."
Delivery and/or free shipping offers could attract these boomers, Edelman says, particularly in non-perishable store brand categories.
Some retailers are even altering the store environment to make the shopping experience more satisfying for boomers, notes The Wall Street Journal, by lowering store shelves, making typefaces larger and avoiding yellows and blues in packaging (these colors might not appear as sharply distinct to older eyes).
And it's also worth remembering that as a generation, baby boomers have been catered to their whole lives — and likely will still expect preferential treatment as they age into their senior years, Fram says.
"They will probably have more expectations than the people who are seniors now, who are basically Depression-oriented," he says.
Older baby boomers came of age during the turbulent 1960s and tend to be less optimistic than younger boomers.