The Boomer Project-Boomers Over 50

THE COMING BABY BOOMER BOOM:
FIVE “NEW” PRIORITIES FOR BOOMERS OVER 50

INTRODUCTION

Over the next four years, 17 million Boomers will turn 50 years old.
And there’s nothing they can do to stop it.

It’s estimated by Find/SVP that these newly minted “seniors” will
spend $2 trillion annually on consumer goods and services.

What’s your share?

Baby Boomers have, from birth, been the economic engine of
consumer goods and services. As they pass the half century mark,
they remain the largest, most important demographic group in
America. Boomers have always gotten what they’ve wanted, and
unlike the “senior” generation ahead of them, they have not
established unshakeable product buying habits and are “always
looking for better products” (AARP/RoperASW Survey in May 2002).
They have always experimented with products and services and
enjoy trying new things.

But life is changing for them now as they reach 50 and beyond.

Until now, marketers have followed one of two courses when it
came to targeting the 50 and over crowd. Either they’ve ignored
them, focusing instead on the 18-49 segment, or they have targeted
them, but done so by lumping everyone over 50 into the “senior” or
“mature market” group – complete with ads and materials featuring
gray-haired “active adults” leading “active lives.”

Now, neither approach will work.

You can’t afford to ignore Boomers over 50 (“Boomers” are those
born between 1946 and 1964 – there are 78 million of them.
“Boomers over 50” are about half of the total and about 4 million
more join the club every year). There’s simply too much money in
their hands. And you also can’t market to them like you’ve marketed
to previous over 50 groups. They think, act and feel differently than
any previous over 50 generation.

The Boomer Project would like offer marketers targeting Boomers
over 50 insights into the five “new” priorities that will shape Boomer
spending over the next 10-20 years. Think of these as the basic
instructions for how marketers should approach this new version of
an ageless cohort. You know, the one with $2 trillion ready to
spend. Differently.

THE COMING BABY BOOMER BOOM: FIVE “NEW” PRIORITIES FOR BOOMERS OVER 50

FIVE “NEW” PRIORITIES FOR BOOMERS OVER 50:

1. Personal: Look & Feel
2. Financial: Income & Independence
3. Nesting: Home & Hearth
4. Enjoyment: Life & Leisure
5. Experiences: Explore & Escape

Life is different over 50. At least it has been for previous
generations. For Boomers, though, as they pass 50 they view life as
simply something that’s been experienced longer. At this new stage,
life remains something that they want to make sure continues to be
experienced – and, if possible, not just experienced well, but
experienced better.

So the priorities aren’t necessarily new to Boomers, but are revised
versions of existing priorities, re-focused through the lens of 50
years on the planet.

Let’s take a look at each one and the implications for marketers
trying to connect with Boomers over 50.

1. PERSONAL: LOOK & FEEL

Mick Jagger is 60. Robin Williams is 51. In November, Kim Basinger
turns 50. In February, 2004, so do Christie Brinkley and John
Travolta.

The “Youth Culture” is finally
getting old. But don’t worry, they “You Look
aren’t going to act old, feel old or Mahvelous, Dahling”
look old (have you seen Christie
Brinkley recently?).

For them, time has inevitably marched forward, turning the ageless
Baby Boomer into an aging Baby Boomer. Yet despite this, Boomers
still maintain the same fundamental cultural mindset that has shaped
this group from the beginning: Young.

They see themselves as 10-20 years younger than they actually are.
They don’t think of themselves as old people who “think young” but
as young people with grey hair and some wrinkles. They will start
to see themselves as “old” when they hit 70.

Until then, the “Me” generation still puts Number 1 as number one.
How Boomers look and feel, inside and out, will be the top priority

Boisseau Partners | Boomer Project 2
Richmond, Virginia 804.775.2184 www.boomerproject.com


for their spending over the next 10-20 years. There’s no better and
safer investment than in one’s self, and the navel-gazing Boomer
generation will put their money where it matters most – in the
mirror.

IMPLICATIONS FOR MARKETERS:

For marketers, the fact that Boomers want to look and feel young,
healthy, vital and sexy means health care, fitness and “better-living-
through-pharmaceuticals” will dominate spending patterns. Boomers
have a simple goal: live longer and better. Yes, they agree it’s
getting harder and harder to keep their figure or stay attractive. But
that doesn’t mean they are going to stop trying. If anything, they’ll
redouble their efforts.

Physical health, mental health, apparel, cosmetics, botox, plastic
surgery, Viagra, hair care, fitness centers, health food, Lasik surgery,
teeth whiteners, spas and everything in-between will remain big
businesses if they cater to the Boomer over 50 market.

2. FINANCIAL: INCOME & INDEPENDENCE

By age 50 most Boomers have reached their peak earning years and
are eyeing the big “R” (retirement) in a matter of years. They have
been salting away money in 401(k) plans and other investments.
They’ve made progress in paying down their home mortgages and
have even tapped into that equity for
some wants and needs. In many cases,
“The Living is
they’ve been recipients of life
Easy, Paying for it
insurance payouts from the death of a
is Hard”
parent. They are about as cash rich,
and debt-free, as they’ll ever be.

But they are also getting squeezed financially in ways they could not
have possibly foreseen:

v The stock market shrinkage in recent years has turned their
401(k) into a 201(k). The resulting retirement nest egg is
much smaller than anticipated, putting thoughts of early
retirement off for now, and making them realize they really
will have to fund their own retirement entirely.

v College and education expenses for their children are even
higher than anticipated and are growing year-to-year at a
rate north of 20% (in most states).



v Health care and living expenses for their aging and infirm
parents are higher than anticipated.

These new financial obligations and realities make managing their
money more important than it has ever been before. Especially since
they know that after their peak earning years they will hit their non-
earning years.


Financial planning, estate planning and overall portfolio
management services will grow in importance for all Boomers,
whether they have income to preserve now or want to manage their
money for their retirement. Mutual funds, annuities, products with
inflation protection, insurance – including affordable long-term care
insurance – and other financial tools will become increasingly
important for Boomers over 50. So will investments with short-term
potential.

3. NESTING: HOME & HEARTH

Boomers are home owners. Boomers over 50 are home owners with
low or no mortgages, so they have equity in their homes that they can
use to improve it, enlarge it or replace it. American Demographics
forecasts Boomers will buy an additional one million second homes
by 2010.

That means Boomers over 50 are going to spend billions to feather,
or refeather their nests. They will want a functional and comfortable
environment, one that’s practically carefree because they aren’t
going to spend any time providing
maintenance. They will want rooms
“Home is where
or features that enable them to live
the Heart is”
their fantasy lifestyle – gourmet
kitchens, home theatre, home
offices.

As Boomers plan their retirement, they are deciding it’s more
important to stay near family and friends versus relocating to a
sunnier climate. Called “aging-in-place,” this is a boon for home
remodelers and decorators, not necessarily in Florida or Arizona, but
in locations with outdoor activities and scenery – Northern
California, Colorado, Virginia and Texas will be popular spots.
Those homes will have to be maintenance free, or gardening,
cleaning and upkeep services will need to be readily available.




From homes to home décor to home maintenance, Boomers over 50
will be big spenders in coming years. Real estate developments that
aren’t “retirement” or “active adult” communities, but high end,
maintenance free, and close to activities and scenery will be the
next wave. Functional home products, easy to see and use, and
easy-to-buy maintenance programs will fly off the shelves. Home
décor that delivers on the lifestyle fantasy of Boomers will be the
next trend.

All-in-all, anything to make the home more comfortable and
enjoyable for Boomers will sell big over the next 10-20 years.

4. ENJOYMENT: LIFE & LEISURE

Baby Boomers have always taken time for themselves and that
won’t change as they become 50 and older. They are finding ways
to enjoy their life and balance the demands on their time. Anything
and everything they can do to better manage the stress in their lives,
they are indulging in. From toffee nut lattes to dinner out at a high
end restaurant, Boomers look for ways to make life more enjoyable.

There are three components to daily life where priorities are
changing: gizmos, apparel and entertainment.

Boomers over 50 are spending their readily available disposable
income on televisions, DVD players, surround sound systems, TiVo,
automobiles, GPS navigation systems, OnStar and other gizmos to
make life more pleasant on a daily basis. They are looking for time-
saving and space-saving devices to reduce stress – from closet
organizers to wireless home networks.

Interestingly, Boomers once giggled at “Life isn’t meant to be
their parents who couldn’t program the endured, but enjoyed”
VCR or read the controls on the remote
control. But as their own eyesight
begins diminish-ing and technology keeps advancing, they won’t
have any patience for products or devices that are too difficult to
see or complicated to use. They are used to having products
developed for their needs and capabilities. As they age, they don’t
expect it to be any different.



When it comes to apparel, they are ready to splurge on themselves
with clothes and shoes, but are finding the selection less and less
appealing – women’s clothes are designed and cut either for stick-
thin waifs or mature matrons. Try as they might, Boomer women
over 50 aren’t the same shape or size as they were when they were
in their twenties. Yet they can’t find appealing clothes or shoes that
fit their self-image and their waist-line.

Daily entertainment decisions revolve around staying home or going
out – for meals, for movies, for sporting activities. Boomers over 50
can leave the children at home alone (if they still have any at
home), so little to no pre-planning is required. They are looking for
daily “experiences” when they go out – at the restaurant, at the
theatre, at the sporting event. They want minimum hassle and
maximum enjoyment. Venues that cater to their needs will earn their
entertainment dollar.


As the priorities and physical abilities for Boomers over 50 evolve,
marketers will need to evolve how they package and promote their
lifestyle, leisure and entertainment offerings. Boomers have money
to spend, and are willing to spend it. But they have to feel as if they
are getting maximum enjoyment out of the investment.

Even though this is the group that once laughed about “The
Clapper,” they now wonder why someone doesn’t make lights that
are easier to turn on or off. They want to enjoy a nice dinner out,
but don’t want to go to a noisy restaurant where they can’t enjoy
their conversation. Bottom line, they won’t accept inferior products
or experiences that don’t meet their changing needs.

5. EXPERIENCES: EXPLORE & ESCAPE

Boomers over 50 also enjoy getting away from it all – either
physically or mentally. Roughly three out of four Boomers over 50
consider themselves “travelers” and do so regularly, spending a
forecasted $57 billion on travel by 2005. They travel for fun and
adventure, to get away and to indulge.

They are driven by what has always
“He who
driven the Boomer generation,
Experiences the
obtaining the most or best
Most, Wins”
“experiences.” A study by the Travel
Industry Association and National
Geographic Traveler identified four types of travelers which include



Boomers over 50: adventure-loving, culture-loving, luxury-loving
and outdoor sportsmen.

In all cases, Boomers are escaping everyday stress and looking for
ways to rejuvenate and recharge. Travel and tourism marketers, from
hotels to attractions to cities to tour operators to activities, need to
appeal to this cohort when they want to get away, taking into
consideration that they are older and less physically able to do the
things they once did on vacation – hang glide, climbing the tower at
Notre Dame and so forth.

Boomers over 50 are also still interested in improving themselves, so
vacations where they can learn a new skill – photography, cooking,
painting – will continue to be popular. For some segment, the “elder
hostel” will remain an attractive option, but in general, this traveling
group has money to spend and is willing to do so.


Packaging your travel-related products and services to appeal to
Boomers over 50 will be critically important for your long-term
growth. They have changing physical capabilities, and want to be
accommodated, but don’t want to be treated like the elderly or
handicapped.

They want their vacations to be experiences they will enjoy and
brag about. Even though they aren’t ready to sign up for bus tours
and the early bird discounts, they do want to be treated in a way
that shows you’re accommodating them.

WHERE TO GO FROM HERE

By now you’ve concluded that Boomers over 50 are a growing and
important segment of the marketing pie, especially over the next 10-
20 years. For years, marketers have discounted anyone in their sixth
decade. But those times are gone.

To be successful, marketers need to be mindful of the new priorities
of Boomers as they reach 50 and beyond. And how to speak to
Boomers in advertising and marketing communications materials in
a way that connects with them.

They aren’t old people who think young. They are Boomers who
are living longer.



HOW THE BOOMER PROJECT CAN HELP

With over thirty years of experience marketing to Baby Boomers,
the Boomer Project knows a few things about how to effectively
connect with this audience – even as they pass 50. We work with
clients who want to form or maintain an important relationship with
Boomers over 50, providing insight, techniques and approaches that
resonate with Boomers. For example, we know how to create
communications programs that:

v Make travel, leisure or lifestyle products or services
remarkably more appealing to Boomers over 50.

v Position purchases that were at one time discretionary as
more of a necessity for Boomers over 50.

v Use youthful imagery and icons in a way that does not shout
“this is for Boomers” but connects with them more so than
any other audience.

v Enhance the experiential benefits of your product or service.

As marketers venture into this new territory trying to reach this
changing cohort, the Boomer Project can help.

To find out how, contact Matt Thornhill at the Boomer Project: 804-
775-2184 or matt@boomerproject.com.


The Boomer Project-Boomers Over 50

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