Oldies but goldies
Posted by Simone Militzer on November 1st, 2006 at 8:00pm
Recently there has been a massive change of direction in the German advertising industry that should be observed. A new target group called the Best Agers have experienced a notable change of image. This group is also known as the Generation 50 Plus. Other terms of reference include Silver Ager; Golden Oldies; or Midager. All terms alike, Best Agers are people aged 50 years and over. Formerly a rarely observed target group, German marketers now experience a Best Ager Hype. But why is there such hype?
Presently Germany has 82 million inhabitants of which about 30 million belong to the Best Ager target group. The German Federal Statistical Office has calculated that, by the year 2030, approximately half of the German population will be 50 years and older. This is due to a decreasing birth rate and increasing life expectancy. This lends itself to a closer look.
The Generation 50 Plus is a very interesting and attractive consumer group for the economy. In the past, 14 to 49 year olds stood at the fore of the advertising and media industries. Now there is reconsideration. The Generation 50 Plus is now and in the future the group spending the most money [approximately 90 billion Euros per annum!].
The Best Agers have a huge quantitative potential. People in the age group of 50 and over dispose of a very high buying power and for this reason they hold a high commercial potential. Fifty to sixty-four year olds pay great attention to brands and are brand loyal, but they are also open to new ones.
An example of this new approach is a German food company called Edeka. Edeka recognised the needs of the Best Ager and opened a shop in November 2005 called Supermarket of the Generations. The Supermarket of the Generations is a food store with a special concept, which is especially aligned to older consumers.
The concept includes more building blocks for the convenience of the Best Ager. For example wide shopping aisles; lenses for the visually impaired; or speaking scanners. The opening was a great success and more stores will be open soon.
However, we are not speaking of a homogeneous group. The German market research institute TNS-infratest arranged a study and discovered a topology of Best Agers. They found three well-defined segments of Best Ager consumers. These include the Passive Senior segment; the Active Cultural-Orientated segment; and the Experience-Orientated segment. All of which vary in structures of motivation and values. The following passages describe these three segments in more detail.
The Passive Senior segment:
Persons in this segment show a passive behaviour in their leisure time and they are typically retired. This group form the oldest of the three groups with a low level of education and income. This segment is very family orientated, traditional and materialistic.
The Active Cultural-Orientated segment:
This segment is more interested in culture and has a broad interest in social contacts [family, friends, co workers and etc]. People in this segment are athletic and the proportion of women is large. There is a distinctive corporate feeling as well as an affinity for cosmetics and fashion.
The Experience-Orientated segment:
Experience-orientated people have a distinctive technical affinity; an extrovert lifestyle; and they are interested in extreme sports – such as inline skating, bungee-jumping and free climbing – and nightlife. The proportion of men is preponderate. This segment is, more than most, interested in the cellular phone network; consumer electronics; and the Internet. Religious and family values are irrelevant. They people have high incomes and are well educated. Hedonistic values are predominant.
As a result of these consumer insights, the knowledge of a heterogeneous group of the Best Agers is important for the marketing industry. Not every 50+ person is interested in the same things and has the same needs. It is important to differentiate among the alternate individual groups. If you know the different values, expectations, consumption usages and requirements of each group you can better design and position your products. You can effectively respond to your customers and understand their needs better.
The awareness of using different marketing strategies to capture the Best Ager customer’s attention is worth a lot of money and an arbitrative competitive advantage.
Posted in Insight
