SENIORS MARKET IN INDIA AND ABROAD

Presented by: Sree Shivam Shan Prabhakaran Nishant Sinha Pranay Jha

what is seniors market?

 UNITED STATES MATURE MARKET

Larger than African-American and Hispanic market segments combined. The most affluent of any age segment Account for 60% of all healthcare spending Purchase 74% of all prescription drugs Buy 51% of all over-the-counter drugs Acquire 41% of all new cars Purchase 25% of all toys Account for 80% of all luxury travel

Spend $7 billion online annually Fastest growing segment on the Internet Spend more time online than teenagers Adults 50+ control a household net worth of $19 trillion. Own more than three-fourths of the nation's financial wealth Own 70% of all money market accounts and certificates of deposit assets Have an income per capita that is 26% higher than the national average

Seniors in India and abroad

 Spend more than one trillion dollars on goods and services The largest 55+ population resides in California, New York, and Florida respectively 42% of museum visitors are 55+ Spends more per capita on groceries, O-T-C products, travel and leisure than any other age group Travel ranks among the top leisure activities for men and women over 50 Mature vacationers travel more frequently than any other age group and stay longer 55+ households are the fastest growing user segment to embrace computer technology 22 million adults 50+ are now online, representing 28% of the 50+ population. *Source: www.onmagazine.com

Seniors in India and abroad

Senior website visitors are special. Why? Once a person enters the "retiree" demographic, he/she will be a member for life (rather than teens moving to 20s to 30s, etc.) There are currently more than 76 million seniors and over the next 20 years, more than 70 million baby boomers will join the "senior" rank. This represents unlimited opportunity to expand your company's brand. Senior websites like Suddenly Senior and Retired.com have captured the trust and attention of the wealthiest consumer on the planet. This consumer group has the most disposable income with the greatest buying power; interested in new services to enhance their lifestyle and is currently the largest consumer in more product categories than any other market group. If you have valuable offerings, Suddenly Senior could be a gold mine for your company and your one source to gain the marketing advantage over your competition addressing this valuable consumer group. Suddenly Senior and Retired.com are servicing the most desired consumer on earth - retiree's. Retiree's have many exciting attributes that make them extremely valuable to corporations around the world. While earning their trust takes time, their loyalty insures long-term revenues and profits for decades to come. Here's some recent research to more acquaint you with our membership base:

Internet Use - Seniors are logging on in record numbers. In 2000, almost 14 million seniors, or 17% of all Americans aged 55+ were active Internet users. By 2002, the number of seniors online will grow to 22 million, accounting for 36% of all seniors. (According to eMarketer's recently released eRetail Report) 76% of seniors are online daily, compared to 68% of all online adults. Online Shopping - During a recent holiday shopping period, the average online shopper spent a total of $629, while those shoppers aged 55+ spent $1,819, nearly 3 times the average (Source: Zona Research, Inc.) 42% of those users over 65 and 39% of those aged 50-64 have made online purchases (Source: Baruch Collete-Harris Poll 1997). Online Life - Of those surveyed, 66% aged 65 or older said the Internet had made their lives more interesting, and 46% in the same age group said the Net had improved their relationships (Source: Activmedia, 1998). This same study found that 40% of all U.S. adults over the age of 55 have a home computer, up from 29% in 1995. Of those, 70% surf the Web. Content areas preferred by Seniors - Weather 63%, Health & Medicine 40%, Investing 34%, Food & Cooking 29%. Financial - The 50-plus population controls 77% of all financial assets in the U.S., and account for approximately 40% of consumer demand (Source: "Selling to Seniors" Monthly Report on Marketing, Jan. 1999). In the areas of finance, this group represents 40 million credit card users, owning almost 50% of all credit cards in the U.S., with over 50% of discretionary spending power (2.5 times the average per capita) and with 80% of their personal wealth in financial institutions. In the housing market, over 79% of all 50-plus Americans own their own home, with 67% of these being mortgage-free. Who's got extra discretionary money to spend? Age 15-24 $2,833, Age 25-34 $2,833, Age 35-44 $3,010, Age 45-54 $3,701, Age 55-64 $4,906 per year. Health - This population segment dominates healthcare spending. The 50-plus group spends over $525 billion on healthcare, with that number expected to reach $1.1 trillion by the year 2007. They purchase 74% of all prescription drugs and 51% of all over-the-counter drug purchases representing a $100 billion market. Per capita spending is approximately $467, more than double the average.

Seniors are aging well, living longer and healthier lives than any generation before them. Sixteen million seniors exercise at least three times per week. From 1987 to 1995, the number of 55-plus health club members jumped 119%, and the number of 65-plus who joined health clubs rose a staggering 669%. Life expectancy has increase 30 years in the past century, extending the life of our members. We can expect similar results in the coming century. (American Academy of Anti-aging medicine, 2000)

Travel - It's no surprise that seniors like to travel and do it often. They represent 80% of all luxury travel purchased in the U.S., making up 65% of all cruise passengers and typically spending 74% more on vacations than the 18-49 year-old population segment.
The Over 50 Age Group Is The Most Affluent Internet Consumer Market. Suddenly Senior presently receives 243,000 of these individual visitors each month. Just like any other network, we make a wide variety of seniors oriented information and programs available to our audience. The population contains an ever-increasing proportion of older adults. Their social interests and lifestyles are ever-broadening. These seniors are pouring on-line to create one of the most important consumer groups yet seen in this supposedly youth-oriented medium. According to a Greenfield Online consumer research study at: http://beta.greenfield.com/pages/go_article.asp?aid=1196 an amazing 92 percent of wired seniors have window-shopped online and 78 percent have made a purchase. This is significantly higher than the online shopping and buying by the total Internet population, according to tracking studies by the Westport-based company that pioneered online marketing research. Also, According to a Baruch College-Harris Poll commissioned by Business Week Magazine: Internet Users Over 50 Age Group Are The Most Likely To Buy Online.

The survey found that young people are more likely to use the Net for entertainment and socializing, while older folks spend most of their time on more serious matters. For example, 24% of 50-to-64-yearolds and 19% of those 65 and over say they use the Net often for investing purposes.
The over 50 age group represents 26% of the population, control nearly 75% of North America's personal wealth, spend 28% of all discretionary income, nearly double that of households headed by those who are 34 years old or younger, and represents close to 50% of all consumer spending in North America. The typical profile of the over 50 Internet user is a 57-year-old grandparent who owns a car, has a higher than average education and has yearly household income in excess of $60,000. The fact that this age group purchases more than half of the luxury automobiles sold in North America indicates their immense buying power.

Seniors in India and abroad

Senior website visitors are special. Why? Once a person enters the "retiree" demographic, he/she will be a member for life (rather than teens moving to 20s to 30s, etc.) There are currently more than 76 million seniors and over the next 20 years, more than 70 million baby boomers will join the "senior" rank. This represents unlimited opportunity to expand your company's brand. Senior websites like Suddenly Senior and Retired.com have captured the trust and attention of the wealthiest consumer on the planet. This consumer group has the most disposable income with the greatest buying power; interested in new services to enhance their lifestyle and is currently the largest consumer in more product categories than any other market group. If you have valuable offerings, Suddenly Senior could be a gold mine for your company and your one source to gain the marketing advantage over your competition addressing this valuable consumer group. Suddenly Senior and Retired.com are servicing the most desired consumer on earth - retiree's. Retiree's have many exciting attributes that make them extremely valuable to corporations around the world. While earning their trust takes time, their loyalty insures long-term revenues and profits for decades to come. Here's some recent research to more acquaint you with our membership base:

Internet Use - Seniors are logging on in record numbers. In 2000, almost 14 million seniors, or 17% of all Americans aged 55+ were active Internet users. By 2002, the number of seniors online will grow to 22 million, accounting for 36% of all seniors. (According to eMarketer's recently released eRetail Report) 76% of seniors are online daily, compared to 68% of all online adults. Online Shopping - During a recent holiday shopping period, the average online shopper spent a total of $629, while those shoppers aged 55+ spent $1,819, nearly 3 times the average (Source: Zona Research, Inc.) 42% of those users over 65 and 39% of those aged 50-64 have made online purchases (Source: Baruch Collete-Harris Poll 1997). Online Life - Of those surveyed, 66% aged 65 or older said the Internet had made their lives more interesting, and 46% in the same age group said the Net had improved their relationships (Source: Activmedia, 1998). This same study found that 40% of all U.S. adults over the age of 55 have a home computer, up from 29% in 1995. Of those, 70% surf the Web. Content areas preferred by Seniors - Weather 63%, Health & Medicine 40%, Investing 34%, Food & Cooking 29%. Financial - The 50-plus population controls 77% of all financial assets in the U.S., and account for approximately 40% of consumer demand (Source: "Selling to Seniors" Monthly Report on Marketing, Jan. 1999). In the areas of finance, this group represents 40 million credit card users, owning almost 50% of all credit cards in the U.S., with over 50% of discretionary spending power (2.5 times the average per capita) and with 80% of their personal wealth in financial institutions. In the housing market, over 79% of all 50-plus Americans own their own home, with 67% of these being mortgage-free. Who's got extra discretionary money to spend? Age 15-24 $2,833, Age 25-34 $2,833, Age 35-44 $3,010, Age 45-54 $3,701, Age 55-64 $4,906 per year. Health - This population segment dominates healthcare spending. The 50-plus group spends over $525 billion on healthcare, with that number expected to reach $1.1 trillion by the year 2007. They purchase 74% of all prescription drugs and 51% of all over-the-counter drug purchases representing a $100 billion market. Per capita spending is approximately $467, more than double the average.

Seniors are aging well, living longer and healthier lives than any generation before them. Sixteen million seniors exercise at least three times per week. From 1987 to 1995, the number of 55-plus health club members jumped 119%, and the number of 65-plus who joined health clubs rose a staggering 669%. Life expectancy has increase 30 years in the past century, extending the life of our members. We can expect similar results in the coming century. (American Academy of Anti-aging medicine, 2000)

Travel - It's no surprise that seniors like to travel and do it often. They represent 80% of all luxury travel purchased in the U.S., making up 65% of all cruise passengers and typically spending 74% more on vacations than the 18-49 year-old population segment.
The Over 50 Age Group Is The Most Affluent Internet Consumer Market. Suddenly Senior presently receives 243,000 of these individual visitors each month. Just like any other network, we make a wide variety of seniors oriented information and programs available to our audience. The population contains an ever-increasing proportion of older adults. Their social interests and lifestyles are ever-broadening. These seniors are pouring on-line to create one of the most important consumer groups yet seen in this supposedly youth-oriented medium. According to a Greenfield Online consumer research study at: http://beta.greenfield.com/pages/go_article.asp?aid=1196 an amazing 92 percent of wired seniors have window-shopped online and 78 percent have made a purchase. This is significantly higher than the online shopping and buying by the total Internet population, according to tracking studies by the Westport-based company that pioneered online marketing research. Also, According to a Baruch College-Harris Poll commissioned by Business Week Magazine: Internet Users Over 50 Age Group Are The Most Likely To Buy Online.

The survey found that young people are more likely to use the Net for entertainment and socializing, while older folks spend most of their time on more serious matters. For example, 24% of 50-to-64-yearolds and 19% of those 65 and over say they use the Net often for investing purposes.
The over 50 age group represents 26% of the population, control nearly 75% of North America's personal wealth, spend 28% of all discretionary income, nearly double that of households headed by those who are 34 years old or younger, and represents close to 50% of all consumer spending in North America. The typical profile of the over 50 Internet user is a 57-year-old grandparent who owns a car, has a higher than average education and has yearly household income in excess of $60,000. The fact that this age group purchases more than half of the luxury automobiles sold in North America indicates their immense buying power.

Seniors in India and abroad

2012 vs 2050

Population census of seniors in India and abroad

Population census of seniors in India and abroad

Segmentation in seniors market

Segmentation in seniors market

 Marketers acknowledge that the over 50s market is not homogenous and it must not be treated as one. The senior market can be segmented on the criteria of:
1. 2. Their Health i.e. The healthy hermits, Ailing out goers, Healthy Indulgers and Frail reclusives. Their stages in life i.e. when they become Empty Nesters or Grandparents OR on two decisive factors: Children and Work. Young Old (55-64), Mature old (65-74), Old old (75+). Prime lifers (50-65), Recently retireds (65-75) and 75+. The masters (50-59), The liberated (60-74), The peaceful (75-84), The elderly (85+).

There are more conventional segmentations, which are purely based on Age.
1. 2. 3.

Age can be a determining criterion of segmentation that allows the other to be organised. Segmenting this market on the basis of age may be an over simplified approach and other factors, like income level and state of health , should be also taken into account.

Segmentation in seniors market

 Traditionally, the elderly in India have stayed with their children. But over the years, nuclear families have increasingly become the norm as younger citizens are more likely today to move to other cities or countries in pursuit of career opportunities. A significant section of seniors today are independent, financially stable, well-travelled, socially connected, and as a result have well-developed thoughts of how they want to spend time after retirement. The 50-65 segment seem to be the more privileged among the larger segment of senior market. They spend 5% more than the national average and they are responsible for about 30% of consumer spending. Thanks to their higher levels of home ownership and possession of private or occupational pensions. We have also come to know that on an average the mortgage and other loans are paid by the age of 52 and the children leave home when the father is 54 and the mother is 5, leaving their parents with the biggest disposable income they have ever had in their lives.

Segmentation in seniors market

 Besides their economic wealth, the consumers belonging in the 5065 segment present rather active lifestyle that contradicts some of the most widespread misconceptions concerning this age. There is an emerging fabulous 50s segment of affluent people who find themselves with free time, good health and the ability to spend their money in quite a youthful way. It is the kind of living that researchers characterise as a long vacation lifestyle. With a lot of free time, the over 50s exercise activities that few years ago somebody would not expect like working out and using the internet. This is the age group which is most responsive to advertisements on televisions, radios, newspapers and magazines. They give priority to purchases that make life more comfortable such as house equipments, cars and leisure electronics. Some prefer to travel the world to satisfy their intellectual pursuit.

Life style of seniors in India and abroad

 With medical advancement, availability of health supplements, a new attitude towards a healthy lifestyle, and wise use of their time many seniors are able to keep a productive work and family life even after the age of 60. Others in fact engage in second careers or active learning, either pursuing a second or third degree or enrolling in enrichment courses. With more discretionary income than at any other life-stage, the elderly market remains virtually untapped with under-valued consumption.

The bitter truth:

Not the entire over 50s segment matches the lifestyles described here and certainly not all of the 50+ consumers live rich and glamorous lives. It is true that the needs of senior citizens for housing, food, medical and so on are different. On the face of it, it can be seen as a specialized market segment. But in the absence of strong health insurance and social security measures, this remains a very small segment. Not many senior citizens can independently afford the kind of lifestyle that they have when they stay with their children. In the Indian context primarily there is an added issue of social stigma. For example, the specialised homes for senior citizens are derisively called old-age homes and are seen as being meant primarily for those discarded by their families.

Life style of seniors in India and abroad

 Television vision watching the most frequent activity of the elderly Mass medias faithful customer Elders portrayed in a negative manner Elderly spokesperson attract older peoples attention Seniors looks for factual information about the product. Family values in ads are appreciated by elderly people

Advertisement done in seniors market

 4.5 hours worth of television viewing among the over 50s. 97% of the elderly people watch television everyday. 62% picks up new ideas by watching television, 33% trying something new, 27% actually buying something.

Advertisement done in seniors market

 its got to be televisionevery family has one atleast and everybody is watching more or less I watch them sometimes, especially if I see a new one attracts may attention. However , most of the time I tend to switch to a different channel. I find most of them irritating.

Response of the elderly customers regarding the advertisements

 I also expect it to be aesthetically niceTV is based on images right?... it should be done in a intelligent way to remember the product.. Advertisement can make a product look good.. Ads shot in nice places, when they have a nice story to tella beautiful girl or famous actress perhaps

Response of the elderly customers regarding the advertisements

 They are full of big promises I really dont like when they correlate ice creams with sexit doesnt make any sense So many exaggerations sounds like insulting to our intelligence How can a toilette paper, let say, will make your living better

Response of the elderly customers regarding the advertisements

 advertising is something that motivates me.. young faces in the advertising is actually refreshing Its probably with the younger people that we feel closer with

Response of the elderly customers regarding the advertisements

Result of the research