Baby Boomers

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Baby Boomers
Getting Your Share of This Crucial Market
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• Mary Brown
• Partner, Strategy Insights, JWT BOOM
• Claudia Rose
• Director of the Diamond Promotion Service

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WHY CARE ABOUT BOOMERS?
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WHY CARE ABOUT BOOMERS?

• Already 37 US HHs
• By 2015, 45 mil. HHs age 51-70 vs. ca. 25 mil
  for previous generation
• 54 have household incomes exceeding 100K

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WHY CARE ABOUT BOOMERS?

• 50 control more than 75 US assets
• Estimated annual spending 2 trillion 11th
  largest world economy!

• US Boomerland is 15th largest world population
  -- more spending than GDP of Mexico or Canada
• More women over 50 in US than entire population
  of Australia or Canada

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Growth of Older Americans will Accelerate in
Next 20 Years
Between 2000-2020 number of persons aged 55-74
will increase by 74
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Percentage of Boomers in 50 population

• In 2006 Boomers began turning 60 rate of at
  least 8,000/day
• Will continue for next 18 years

22
2000
44
67
2005
Source U.S. Bureau of the Census, 2005
2010
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Growth of Older American Workforce over Next
decade
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GENERATIONAL / AGE COHORT DEFINITION

• Group of consumers born within same time period
• Influenced similarly by events within their
  formative years (late teens early twenties)
• It is not experiences events themselves that
  have meaning
• Shared beliefs and core values created as result
  of these events are important

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External Influences Shaping the Generational
Profile
Leading Boomers
Middle Boomers
Trailing Boomers
Cohort Influences Formative Years
WWII
Ikes
FormativeYears
1974 to 1983
1930 to 1945
1967 to 1977
1960 to 1970
1946 to 1963
Hostage Crisis, Reagan, Terrorism, Middle East
Conflict, Rise of Conservatism
Political/Social
Prohibition, Social Security, FDR/ New Deal,
Bread Lines, WWII, Labor Movement
McCarthyism, Cold War, Brown vs. Board,
Highways Suburbanization, Korea
JFK, LBJ, MLK, Civil Rights, Viet Nam,
Woodstock, Kent State, Draft Lottery
Viet Nam, ERA, Watergate, Roe vs. Wade, No
Fault Divorce, Casual Sex
Economic
Stock Market Crash, Great Depression, Keynsian
Econ
G.I. Bills, Housing Act, Prosperity
New Frontier,Medicare, Great Society
Price Controls,Nixonomics,Inflation
Oil Shocks, Reaganomics,Stagflation
Popular Culture
Chaplin, Babe Ruth, Radio, Talkies, F Scott
Fitzgerald, Lindbergh, Movies, No TV
Sinatra, James Dean, Elvis, M. Monroe, Disney,
Hot Rods, Duck Cover, Sputnik, Family TV
The Beatles, Dylan,Rolling Stone Mag, Moon
Walk, The Pill, Psychedelic Drugs, News TV
Sat Night Live, All in the Family, Mary Tyler
Moore, Ms Magazine, Counterculture
Star Wars, Disco, Fitness Craze, Punk Rock,
Space Shuttle, Crack and Drugs, Crime
Violence TV
Core Traits
Status conscious, Individualistic, Seek
Immediate Gratification
Idealistic, Demanding, Nonconformist, Seek
Immediate Gratification
Thrifty, Patriotic, Sacrificing, Defer
Gratification
Status Quo, Dont Rock the Boat Respect
Authority
Pragmatic, Apolitical, More Conservative, Fade
to GenX
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THE AGE WAVE
1970
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THE AGE WAVE
1980
1970
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THE AGE WAVE
THE AGE WAVE
1990
1980
1970
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THE AGE WAVE
2000
1990
1980
1970
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THE AGE WAVE
2010
2000
1990
1980
1970
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GENERATIONAL / AGE COHORT INFLUENCE
As Boomers have migrated through various stages
of life, the issues that concern them whether
interpersonal, physical or financial have
become the dominant social, political, and
marketplace themes of the time.
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Leaving a Legacy

• A rise in socially conscious behavior and
  concerns directly correlates with increasing age.
• Almost three-quarters (70) of boomers say that
  they feel a sense of responsibility to make the
  world a better place.
• This social and environmental consciousness will
  increasingly shape the purchasing behaviors of
  boomer shoppers.

AARP/Focalyst 2007
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Household income peaks around age 50, while
assets continue to grow
UNDERSTANDING AFFLUENCE
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50-Something Period of Transition

• More life changes occur between age 5059 than
  any other time of life
• Transition marketing opportunity
• Help consumer acknowledge, celebrate changes

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Life Stage Mosaic
BOOMERS
Second Careers
Retraining/Going Back to School
Career Consolidation
Volunteerism/Going Back to Work
Caregiving
Divorce
Retirement
Marriage
Remarriage/Second Families
Illness and Recovery
Empty Nesting
Parenting Teenagers
Widowhood
Parenting Young Kids
Grandparenting
30
60
40
50
70
80
90
Age
Source Age Wave
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Best Years of My LifeOptimism is Abundant

• Natural progression across three generations from
  feeling like best years still ahead to feeling
  you are experiencing them now

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JWT/CR Boomer Heartbeat 2006
Q.11 As you think about your life, would you
say?
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Seek Experiences

• Value experiences and self-actualization even
  more than material acquisitions
• Favor products and services that help commemorate
  experiences

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SummaryBaby Boomer Key Insights

• Aging workforce. Are you tapping into this pool
  of experienced workers? Flexible schedules?
  Intergenerational training?
• Boomers are negotiating more change than any
  other age group. Time is their currency, even for
  a luxury purchase.

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SummaryBaby Boomer Key Insights

• For Boomers, quality and service trump price tag
  or brand label. Expectation for relationship to
  evolve, surprise, and delight them from
  introduction to acquisition and beyond.
• Legacy, giving back and social responsibility
  increases with age of this generation. Boomers
  will check under your corporate hoodhow do you
  rank?

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SummaryBaby Boomer Key Insights

• Boomer forever young factor Balancing
  aspiration with reality in retail touch-points

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Huge, Moneyed Segment

• But how do they feel about diamond jewelry?

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Check Out the Numbers!

• 50-64s rock diamond category
• Purchase over 8 million pieces, worth 6.4
  billion
• On average, spend 12 more than 18-49s (783 vs.
  702)
• Over 20 growth in value contribution

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Many Diamond Enthusiasts

• More than 25 Boomers are Heavy Owners of
  Diamond Jewelry (8 pcs)

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So Much Growth So Little Effort!

• What if we actively marketed to them?

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Diamond Jewelry Already Integrated Into Her Life

• Entitlement enjoyment of luxuries
• 64 of 50-64s like wearing diamonds
• Same as 18-49s

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Shes Assertive

• Half agree its best to shop with husband for
  diamond jewelry
• Wont rely on him to do it alone!

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News You Can Use

• Moving from data to marketing initiatives

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Buying DiamondsGuilt Free!

• 39 married women 50-64 dont feel guilty
  buying DJ -- if I like it, I buy it (vs. 28
  of 18-49s)
• 61 of single female Boomers feel Why not? I
  work hard can buy a diamond if I want
• Cater to her fashion sense and desire to treat
  herself

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Many Diamond Occasions

• New milestones, like childs college graduation
• Acquiring all piece types

• While big birthdays are fast becoming Diamond
  Days, dont rub her nose in the year

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Shes Also Giving Diamond Gifts

• Almost 10 50-64s purchasing for woman
• Give to friends, mom, siblings
• Give to daughters, nieces
• creating tomorrows diamond zealots
• Important new trend, but marketers havent caught
  on

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Grandparents New Occasions to Give Get

• Shed love DJ to mark birth of her grandchild
• 52 50-64s say diamond gift appropriate for
  teenage girl

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Variety of Piece Types

• Interested in everything bracelets, pendants,
  rings, ear-wear
• Many buy yellow gold

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But No Occasion Needed!

• Having occasion to buy less important vs. 18-49s
• Just Because is fine
• With age, increasing self-purchase

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Upgrading

• Huge opportunity -- larger studs a must
• Daughters big DER a motivator
• Mother of the Bride Trade-Up Program?

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Tech-Savvy

• Huge increase in pieces bought by Boomers on web
• Is store experience failing to engage them?
• Very likely to research DJ online
• Is your website ready?
• Even more likely to acquire DJ online than
  18-49s

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Experience Drives Their Taste

• Many have seen done it all

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Always Seeking Next Big Thing

• Many have become connoisseurs
• Antiques, art
• Fine wines
• Travel
• Increasingly want the extraordinary
• One of a kind
• Limited edition

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Want Total Experience

• Music
• Comfortable seating
• Interaction scopes, design your own

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For Him Concise Facts. Hes Been Around the
Block

• Provide solid, straightforward attributes
  benefits
• Treat as negotiation explain merits of argument
• Dont drag it out

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Summary Seize the Opportunity!

• Rapidly growing segment, huge increases in
  diamond jewelry acquisition
• Major repository of Heavy Diamond Owners your
  best source of business in any economy. Identify
  these enthusiasts, get their wish lists,
  communicate with them
• Shopping experience matters a lot surprise
  delight them with luxury details, graciousness,
  expertise. Showcase limited edition, custom-made,
  one-of-a-kind

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And Dont Forget

• These women no guilt buying for themselves.
  Dont imply that she may need him to decide!
• And, they are buying for other women! Feature
  gift ideas in store online for sisters
  retirement, moms birthday
• Market to their new occasions celebrating birth
  of grandchild, childs graduation (end of
  tuition!)
• Big Birthdays becoming Diamond Days. Showcase
  birthday product choices, but dont earmark for
  Fiftieth or Sixtieth. They never think they
  look their age!

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Thanks For Your Attention!Questions Welcome