Submitted by Group 8

Introduction
Falling birthrates and increasing longevity means that,

for the rest this century, the fastest consumer group will be over age of 60. As people live longer the implication for the marketers, retailers and manufacturers promise to be both dramatic and far reaching.

About the study

A.T. Kearneys Global Business Policy Council launched a global

survey 2947 people surveyed in 23 countries Participants from cities, towns and rural areas Participants from all income brackets Age group: 60s, 70s and 80s Half of surveys performed were face to face interviews in a variety of shopping areas Other half were conducted on A.T. Kearny website Geographic breakdown of survey:

One-third in the Euro zone 22% in BRIC nations 14% in emergent markets 12% in USA

Continued
60% respondents were women out of which only 12% were from

rural areas There were different classifications for income groups:

Below minimum local income Between minimum and average local income Above average local income(over represented by males)

The sample was believed to be broad enough to represent local

consumer groups of the market These people signify the main shopping communities for their age groups The modest over-representation of above average income group makes them of particular interest to retailers Employment statistics:
55% retired 18% did volunteer work 27% worked part-time or full time

Facts
In the United States alone, people who are 60 and reaching that

milestone soon (50+ in 2011) will control more than half of the projected $706 billion spent on grocery in 2015, stated the McKinsey U.S. Aging Consumer Initiative The A.T. Kearney report cites disappointments felt by older shoppers
The inability to navigate large stores too many products beyond their easy reach on either high or low

shelves hard-to-open product packages hard-to-read labels, prices and directions

Consumers polled by the consultancy also noted the lack of rest

spots, understaffed stores and a lack of knowledge by store staff. On the whole, mature consumers want and expect a sympathetic understanding of the realities of age, but they do not want to be treated as old or elderly

Continued
As older shoppers grow more important to the food

industry, retailers and CPG manufacturers need to understand their desire for better health which means theyll continue to look to make smarter, better-informed food purchases in comfortable settings.

Continued
Other insights from the A.T. Kearney study of 2,947

people older than 60 in 23 countries: They enjoy shopping as a social and leisure experience offering physical activity They prefer to shop on weekdays, often early in the mornings when stores are less busy The older they are, the more they prefer smaller stores and shopping closer to home They seek quality products, are loyal to brands, and not particularly price-sensitive

The Age-quake

Decrease in birth rates worldwide

Characterstics of demographic agequake

Birthrates are falling People are living longer

People are staying healthy longer

People are wealthier People are working longer

Life Expectancy at age 60

Evolution of income share for the over -60s

U.S workforce age-wise growth

Difficulties faced
Large stores
Hard to reach products on shelves Difficult packaging

Small labels, pricing and directions

No sitting space

Mature shoppers shopping pattern

Shopping for social and leisure experience
Shop for more than 2 times a week Prefer time when shops are less busy

Prefer small stores

Choose stores close to their place Spend less on clothes & transportation Spend more on health products & beverages Prefer quality products

Different patterns among different Nationalities

Japanese prefer Tailored product
Western European more loyal to brands Indian prefer spending on housing

American more on health products

People in sub tropical areas spend on energies

Effects of promotions
Prefer promotional products if they suits there quality

needs For 34% respondents, promotional offers are good. 22% people were not influenced by promotions. Mature customers dont buy more than needed

Technology usage

Internet Usage
Want to be well informed
Use internet for information,

research and communication In developing companies mature people are moving towards online shopping In UK, Silver surfers becoming fastest growing internet usage group

Online shopping

Advertising too loud and focussed on young generation Most of mature customers do not relate to the

advertisements at all Failed campaign of Geritol and Fortisan. Developing age neutral advertising is a challenging task.

Mature British consumers reaction to advertising

76% 74% 72% 70% 68% 66% 64%

62%
advertising portrays us negatively I do not relate to advertising at all

Requirements of mature customers

Social interaction
Personal attention, seating and clear selection Easy to open packages Easy to read labels

The new old age

AARPs efforts to understand the needs of aged and old

consumers Encourages its members to come forward and vote Mature consumers have a high influence on political process as they are almost three times more likely to vote than youth Issue of social security playing its part in political circles in the US.

Understanding the mature consumers

MITs Age Lab innovative efforts to understand

implications of aging, focussing on three themes Infrastructure Innovation Institutional Development of AGNES , a suit to calibrated to understand the challenges associated with aging Retail, public transportation, home , automobiles are using AGNES.

Conclusion
In next 25 years, individuals older than 85 years will

represent more than 8% population of Japan and 3-5% of USA and Europe. The group will be having a high purchasing power in coming years So the companies needs to understand the needs of this segment and device their marketing strategies accordingly.