Marketing to older adults

8/7/2019 Marketing to older adults

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Marketing to Older AdultsMarketing to Older Adults

21.01.2009

Article on:

MuqaddasMuqaddas CGA080116CGA080116 017017--30706263070626 [email protected]@gmail.com ChinaChina

NicoleNicole CGA090068CGA090068 016016--28478472847847 [email protected]@yahoo.co.uk MalaysiaMalaysia

MeiMei CGA090105CGA090105 012012--36932803693280 [email protected]@yahoo.com MalaysiaMalaysia


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21.01.2009 Marketing Management CMGB6101 2

OutlineOutline

Mission: We want to make people thinkMission: We want to make people think

1

2

4

Introduction

Mini Cases

Conclusion & Discussion

References


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Who is an older adult?Who is an older adult?


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Introduction:Introduction:


Growing MarketSegment est. 2bil ofworld population >60yrs (2050)

- Why are they an importantsegment?

-high net worth-disposable income- buying power- spend more on

healthcare

Opportunities &Challenges

Source: IMF 2006


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y

Target market: Persons of high net worth(>RM300,000) liquid asset

y 10-year social visit pass for individual and family

y Since inception of programme: >12,000 participantswere recruited : Investment worth RM4bil


Mini CaseMini Case

Video 1: Testimonial byBrian S. Everett

Source: www.mm2h.gov.my


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Dato Seri Mohd EffendiDato Seri Mohd Effendi

Second Finance Minister, MalaysiaSecond Finance Minister, Malaysia

MM2H : Did not deliver the real desired resultsMM2H : Did not deliver the real desired results

The Star OnlineThe Star OnlineSunday December 20Sunday December 20thth , 2009, 2009

Why?

- Older adults are a heterogeneous group

E.g: Healthy Indulgers> Healthy Hermits> Ailing Out goers> Frail Recluses

- Convenience-oriented consumers

- Concerned about quality (safety issues)

- Value dependability, stability

- Personalized services

- Product (services) development that closely caters to their needs

Next step

* MoT: Apply customer oriented marketing philosophy

* Review segmentation of the older adults market

* Promotional mix that targets this market segment

* Processes collaboration among different government agencies One-stop shop


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JapanJapan

2015 more than 25% of the

population will be over age 65

from2025

onwards more thanhalf of the population over age

50

Japan - the number one older

adult marketMany innovations can be found

to cater the growing market

21.01.2009 Marketing Management CMGB6101 7Source: Kohlbacher, F., Gudorf, P.,and Herstatt, C. (2010).


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RakuRaku--Raku PhoneRaku Phone

Developed by Fujitsu in accordance with universal

design principles. September, 2001, 1st release

Not too many functions, but new optional functions

Big screen, big fonts

More than 15 millions of units sold; already 4th

release available

21.01.2009 Marketing Management CMGB6101 8Source: Kohlbacher, F., Gudorf, P.,and Herstatt, C. (2010).


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Otto Japan (fashion retailer)Otto Japan (fashion retailer)


Since the 80s, followed

the main customer group

between the ages of 35

and 55

Otto introduced the new catalogue "Otto Madame"

specifically targets women between the ages of50 and

65

High expectations fulfill with a VIP hotline

Source: Kohlbacher, F., Gudorf, P.,and Herstatt, C. (2010).


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""I'm 62 But I feel 26."I'm 62 But I feel 26."

Ya.. Im old unhealthy in painthats why I need this product?

OrOr

I feel good and energetic when Iuse this product!

Which one is more appealing?Which one is more appealing?

Do you like to be labeled

Unhealthy? Isolated?Unhealthy? Isolated?Cranky?Cranky?

21.01.2009 Marketing Management CMGB6101


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More examplesMore examples

another marketing disaster, 1950s

Marketed as soft foods for older adults withdentures.

Product line bombed Who would want toadmit:

Im a denture wearer?

Senior FoodsSenior Foods

FreedentFreedent - Launched in 1975.

a gum made with a non-stick recipe for denturewearer.

Marketing strategy: focus on the benefits of theproduct without mentioning the problem it isdesigned to help.

A huge success and sold in U.S., Germany, NewZealand, France, and Canada.

21.01.2009 Marketing Management CMGB6101Source: Meyer, A. (1990),and Richardson, M. (2007).


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Another ExampleAnother Example

According to International OsteoporosisFoundation 2009, the Osteoporosisproblem affects approximately 1 in 3women and 1 in 5 men over the age of 50.

A campaign launched since 2009 inMalaysia and other countries to raiseawareness on bone health and

osteoporosis.

Brand ambassador - The Bond girl:Michelle Yeoh

21.01.2009 Marketing Management CMGB6101Source: www.anlene.com.my


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ConclusionConclusion


More research

- they save/ invest more, spend more on quality/ reputableproducts, seek personal attention and servicesetc

Understand their real needs

- physiologically, socially and psychologically

- sell needs, not newness (Lunsford and Burnett, 1992).

Apply existing knowledge on marketing strategy

- segmentation based on life events/ circumstances, not age

Test first!

- test if the campaign is acceptable for that market.

What is their feedback?

- sales volume, store traffic, and attitude

Video 2 : Nestle Butterfinger All you can share for love


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Marketing Challenge:Marketing Challenge:

How you would market M&Msto older adults?


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ReferencesReferences


1. Anlene: Listen to your bones. (2009). Retrieved on Jan 10, 2010 from http://www.anlene.com.my/

2. Kohlbacher, F., Gudorf, P., and Herstatt, C. (2010). Silver Business in Japan: Implications of

Demographic Change for Human Resource Management and Marketing. Tokyo: Nexxus

Communications K.K.

3. Lunsford, D. A. and Burnett, M. S. (1992). Marketing Product Innovations to the Elderly:

Understanding the barriers to adoption. The Journal of Consumer Marketing; Fall 1992; 9, 4;

ABI/INFORM Global pg. 53

4. Meyer, A. (1990). Unmasking the mature market: older Americans may not conform to the image

marketing minds have projected for them.Prepared Foods. Retrieved on Jan 10, 2010 from

http://findarticles.com/p/articles/mi_m3289/is_n4_v159/ai_9216235/

5. Ministry of Tourism Malaysia (2010). Malaysia My Second Home. Retrieved Jan 5, 2010

from www.mm2h.gov.my.

6. MM2H : Did not deliver the real desired results. The StarOnline, (2009, 20th Dec).

Retrieved on Jan 5, 2010 from.

7. Moschis, G.P. (2003), Marketing to older adults: an updated overview of present

knowledge and practice,Journal of Consumer Marketing, Vol 20, No 6, pp 516-525.8. Richardson, M. (2007). Wrigleys: A case study. Retrieved on Jan 10, 2010 from

http://www.ragusmedia.com/portfolio_web/wrigley.pdf

9. Source: IMF, 2006

10. Video 1: Testimonial by Brian S. Everett. Retrieved on Jan 5, 2010 from www.mm2h.gov.my

11. Video 2: Nestle Butterfinger All you can share for love. Retrieved on Jan 10, 2010 from

http://www.kewego.com/video/iLyROoaftIax.html

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Marketing to older adults