BABY BOOMERS II

Presented by:

Jonathan Felix, Jeffery Shoykhet,

Efe Yildirim, & Amanda Pinney

What is a Baby Boomer II ?

Younger boomers born 1956-1965

Presently 39 – 48 years old

45 million people (16% population)

50% male / 50% female

16.9% are minorities

Over 50% of baby boomers live in the following states: California, Texas, New York, Florida, Pennsylvania, Illinois, Ohio, Michigan, and New Jersey.

“A Boomer turns 50 every 7 seconds”

EducationHave the highest level of education of any generation

88.8% of boomers completed high school

28.5% have a Bachelor’s Degree or more

Increasing demand for continued educationWill previous models meet the desire of the

older learner?Will online educational offerings be feasible

in the future?

Boomers are extremely concerned with their children’s education.College administrators often see baby boomer parents as them as a necessary nuisance.“When we were college students we questioned the administration. Now we're getting a second chance.” -Steve Peri

23.9 million households with 1.7 earners per household

Estimated annual spending power $1.1 Trillion

Annual average spending per household $45,149

Financial

Children are still the priority of younger boomer’s spendingThe group spends 11% more than average on pets,

toys, and playground equipment.

69% of households own their own homes instead of renting, so a larger share of budgets. 38% more than average is devoted to mortgage payments.

Younger boomers don’t seemed so concerned with the future, as they spend 10% less than average on life and other personal insurances.

Item THEN (1972) NOW (2004)

Gas $0.36 $1.70

Car $4,500 $21,000

House $40,000 $168,000

Life Experience1962 - The United States and the Union of Soviet Socialist Republics narrowly avoided war during the Cuban Missile Crisis.

1963-1964 - Important civil rights reforms were passed by Congress.

1965-1973 - U.S. forces fought in the Vietnam War, which sparked widespread protests in the United States.

1969 - U.S. astronauts became the first people to land on the moon.

1972- Watergate Scandal

1974 - In the wake of the Watergate scandal, Richard M. Nixon became the first U.S. president to resign from office.

1980s - The U.S. economy emerged from a recession but was faced with increasing federal and foreign trade deficits.

Core ValuesBoomers on average

See themselves as forever young

Want to have fun

Demand immediate gratification

Are not passive.

They like creature comforts.

Are time deprived

Will pay for luxury, expertise and convenience.

Are skeptical of institutions and individuals

Like to associate with people like themselves

Motivators & Goals

Children are still the priority of younger boomer’s spending

Retire early and comfortably monetarily

Don’t rely on social security as much as past

Want to live long, healthy lives

THEN

1 car per household; fell apart after 5 yrsMuch smaller, fuel efficient import carsSmoking allowed everywhere; no gymsWomen stayed home; look after kidsSundays were spent at home; picnicMuch less stress

Technology??

NOW

Average of 3 cars per household; luxury Bigger cars, bigger engines; SUV’s, Vans Health obsessed society

Women work full time jobsIt’s Sunday: Let’s go to the mall! Stress is everywhere

Not technologically savvy

Lifestyle Now & Then

Product Need recognition

Nursing homes

Chasing youth and beauty

Traveling / Real estate in warmer climates

Luxury cars

Wealth preservation and distribution

Ad response

They have spent their lives being overexposed to blatant advertising and therefore advertisers need to use different methods.

What ads appeal, what ads don’t?Focus on the prospect, not on the productBaby boomers want to feel older, not oldAdventurous, not chill outTalk to my lifestyle, not to my age

Preferred Media?They have historically relied on newspaper and print but are quickly turning to the internet as a source of consumer information.

Companies In Touch With Boomers

Sony Harley DavidsonBMWBosePanasonic Royal CaribbeanPfizer

In general, luxury products and healthcare products are most often targeted toward baby boomers.

Why luxury products?Baby boomers II are the most affluent consumers Feel-good purchases-they like a comfortable lifestyle which they feel they have earned

Why healthcare products?Boomers are not ready to give up and grow old just yetThey want to age gracefully

Healthcare Example

“Baby boomers value comfort, intimacy and spending time at home with family and

friends.”- Reed Fry

RealityLong hours at workStressLimited time to exerciseUnhealthy dietCan lead to health concerns Confidence issues

Ultimately, family life and intimate life suffers

The Answer in a Pill

Pfizer develops Viagra to treat EDED affects millions of men—more than half of all men between 40 and 70 years old Viagra was the fastest launch in drug history, earning $411 million in sales the first three months

Pfizer advertises Viagra using humorInforms public on an important health issueEases feelings of shame, embarrassment Easier to ask a doctor for treatment

MessagePfizer facilitates relationships that are valuable to members of the boomer generation

Conclusion

“The core of their consumerism is not about owning-it’s about lifestyle and living. They

make no apology for what they desire. They are entitled to it. They work hard for it. They’ve

earned it.”-Reed Fry