Silverville – life in a UK retirement village

The programme describes itself as: “following the lives and loves of some of the 350 residents of a new retirement village in Milton Keynes. How will they cope - and how can they thrive - as they get to grips with a different way of living?”

The first programme was shown last evening but can be still be viewed (if you are in the UK) using BBC iplayer.

I am not sure what to make of it. I fear that the need for human interest stories will dominate what could be a fascinating subject. Probably best to wait until the end of the series to comment. Dick Stroud

Get out of marketing before 2021

If you believe Nielsen’s analysis, and I do, the combination of the ageing population, slowing birth rate and increasing ethnic diversity will change the face and buying patterns of consumers in the US.

2020 is a long way away and a lot can happen, between now and then, but these three developments are already occurring.

I wonder how many marketers, especially those involved in making decisions about long term capital spending projects (like hotels) are ensuring that they are future proofed for this coming tsunami? Not many I would think. This is a good article. Definitely worth reading and doing something about. Dick Stroud

iPod for Oldies

I saw this ad in The Spectator magazine.

This is the UK’s right of centre weekly mag for grumpy oldies of the Attila the Hun persuasion.

What better place to put this ad? I thought it was amusing that the company changed the ad title from the tag line on the Web site - "iPod for Old Boys".

The company (Past Perfect) has a really good looking web site. Not sure about the ad but the product concept looks good. Dick Stroud

How the average 50-year-old is healthier than someone half their age

I am always suspicious of PR generating ‘research’.

According to this article, Herbalife concluded that your ‘average’ 50-plus is in good shape, compared to their kids.

I wouldn’t use the results, other than to make a point, but I think there is a difference (not sure how big) between age groups in their attitude to healthiness.

Is this a lifestage or cohort effect? I think you can safely say it is cohort with a tad of lifestage.

Kids always think they will be immortal and today’s 50-plus are subject to a pile more ‘healthiness’ messages and services than their parents.

Wellness and the 50-plus, well some sectors of the 50-plus, is and will remain big business for years to come. Dick Stroud

The Kindle is a great product for the older consumer

The Aging in Place Technology Watch blog has an interesting post about Amazon’s Kindle.

It quotes the CNET research that found that that 50% of the people usign Kindles are 50-plus and 27% were 60+. This was not the most scientific of surveys but it made me think.

Who would want a light product that could hold numerous books at a font size that was suitable to reader and with an illumination that is user controlled and will next have the ability to convert the text to sound? I wonder. I wonder who that would appeal to?

Unfortunately it looks like us Brits will have to wait until Xmas to get our hands on the device. Dick Stroud

You must watch this

Chuck Nyren posted this video on his excellent blog about advertising to Boomers. It is hilarious and echoes all the things Chuck said in his book. Do watch it. Dick Stroud

Wrinklies aren’t worth it

There was an article in The Sunday Times with the above title. You won’t find it on the newspaper’s web site, using that name, since it has magically changed to: “Ageing is an ugly business.” I guess somebody thought they had better tone down the sarcasm. Amusing.

The gist of the article is that people become less productive as they age, but are paid more, which is daft. Conclusion, age discrimination is OK. I am not going to get stuck into this argument, but I would like to point out the nasty habit of journalists selectively quoting academic research .

I suspect the journalist (Emma Duncan) did a quick scan of the articles, selected the bits that she thought supported her arguments and ignored the rest.

The two papers she quotes are: “When does age-related cognitive decline begin” by Timothy Salthouse. The paper does indeed suggest that cognitive abilities start declining from our mid- twenties onwards. What it doesn’t deduce is the extent to which the rate of decline is relevant to how people complete their work related tasks. It most certainly doesn’t make any attempt to balance the rate of decline with the amassing of experience that results from ageing.

The other paper is: Age and Individual Productivity – a literature survey. A few things about this study. Firstly it is old – August 2003 – and a lot of the research that it quotes dates back to the early 1990s. A lot has happened since then.

Secondly, it is what is says, a literature survey, not a research study. For instance, the journalist quotes one of the research studies that studied the output of jazz musicians, painters and novelists in the 20th century and found that male musicians peaked at 30 and male painters peaked at 40.

From this rather abstract bit of research Ms Duncan makes the mental leap and concludes: “Older workers are not as useful as younger ones. Discriminating against them therefore seems perfectly reasonable to me.”

This is a nasty example of lazy journalism portraying itself as a serious article. Not good.

There is an article to be written on this subject but my guess is Ms Duncan is not the person to do it. Dick Stroud

Marketing to the 65-plus

AdWeek has a long article about marketing to the Boomer’s parents. The format is a handful of gurus talking about different aspects of the advertising. I have to say that a couple of the gurus were new to me.

• The subjects covered:
• Chronological versus perceived age.
• The importance of their grand parenting role
• Need for connectedness
• Length of copy
• Effect of the recession

This is a long rambling article that could benefit from some serious editing.

The commentators talk good sense. The single thread that comes through in all of the answers is to make the ads ‘real’ and not contrived. Hordes of smiling faces and couples on beaches running along hand in hand or with grandpa balancing on a bike, really don’t cut it.

Nor do you want to portray the far from pleasant reality that is the life for many of the 65-plus.

It is all about good advertising. Getting into the head of the consumer and seeing the world through their eyes. Not difficult for a 65 year old. Extremely hard for a 25 year old creative. Dick Stroud

Generation Jones – revisited

Back in 2006 I wrote an article about a Generation Jones – people born between 1954 and 1965.

I thought it was about time I had a look to see what, if anything has changed and what more, if anything, we know about this bunch.

Like all of the other groupings, the dates are arbitrarily specified.

For those of you who have mislaid your calculator, that makes them aged between 44 and 55.

If you want to annoy a GenJoneser then refer to them as a Boomer (now aged 45-63). It has the same effect as mistaking a Canadian for an American. They get really grumpy.

They get even grumpier if you think they are called Jones after Tom Jones or Zeta Jones or Indiana Jones. Apparently, it is because they feel they are the anonymous generation and wanted a matching nondescript name.

They may feel anonymous but they make a lot of noise. There are multiple web sites telling their story – this is probably the best.

In writing this article I stumbled upon the research study, that has been undertaken in the US, since the 1960s, that looks at the attitudes of freshman entering college. It reveals some fascinating insights into generational differences. Have I whetted your appetite? Come on; download the article, it is free, what have you got to lose? Dick Stroud

Wealthy elderly turn backs on seaside havens

Richard Webber wrote the section of my book that dealt with geodemographics. He was the man behind the development of Experian’s Mosaic segmentation database. Want to know anything about geodemographics then ask Richard.

This Sunday he is quoted in an article in the Observer about the development of new segmentation categories for the older age groups.

For decades, many of Britain's coastal towns have been synonymous with retirement. But according to an analysis of demographic data, many of today's wealthier pensioners are turning their backs on traditional retirement destinations and moving into upmarket towns and cities in some of the UK's most sought-after inland locations - such as in the Cotswolds, and parts of Hampshire and Kent.

As a result, Experian has identified five new types of retiree.

Beachcombers
This group reflects the growing trend for the middle-class retired to select smaller communities, many on the coast or a river, rather than larger resorts. Popular destinations: Barnstaple, Newport (Isle of Wight), Carmarthen, Inverness, Kendal, Newton Abbot.

Balcony downsizers
Higher-status retired people in their 70s and 80s, who live in privately owned or leasehold apartments in purpose-built blocks of flats suitable for those too fragile to cope with the upkeep of houses and gardens. Popular destinations: Worthing, Boscombe, Edinburgh, Southend-on-Sea, Barnet, Kingston upon Thames.

Golden retirement
People with accumulated assets, who pick prestigious retirement communities. They lead busy social lives, drive and garden. Popular destinations: Exeter, Southampton, Poole, Chichester, Norwich, Canterbury and Ipswich.

Bungalow quietude
Retirees with modest pensions, living in older-style bungalows, often in less well-off areas unattractive to younger families. Popular destinations: Blackpool, Rhyl, Scarborough, Plymouth, Nottingham, Peterborough, Newcastle upon Tyne, Lincoln, Leicester.

Country-loving elders
People on comfortable incomes living in former farms or older-style properties in quiet villages and market towns. Popular destinations: Truro, King's Lynn, Hereford, Carlisle, Shrewsbury.

Interesting stuff. Dick Stroud

Vox Pops interviews

Vox Pops does some interesting work interviewing the 50-plus.

I thought this sample of interviews, with answers to the question - “Are you financially stable for the future - does this worry you?” - gave a good idea of how lots of older Brits are thinking at the moment.

Note the number of them with a concern for their kids not themselves. Dick Stroud

Differences in the income distribution between men and women of different ages

These charts are taken from 2006/2007 data published by the UK’s Inland Revenue.

A few observations (some blindingly obvious):

• How much lower the mean and median of women’s income is to that of men
• For the age range 30 – 54, women’s income is almost constant
• The substantial differences between mean and median, especially for men, that illustrates there are a hell of a lot of lower paid people that brings down the average.
• The median income of men aged 65+ is about half of that of those aged 45-49. Note there is nothing like the same fall in the level of women’s income.

Fascinating stuff. I will next publish some musings about the distribution of wealth. Dick Stroud

The Leaner Baby Boomer Economy

This is the title of this week’s US edition of BusinessWeek

I reckon the journalist who wrote the lead article (David Welch) has done a good job. I urge you listen to the podcast of his interview about the article.

The basic premise is that times are bad and despite the optimism of Boomers they are going to be cutting back on their spending. Nobody knows for how long or how deep the cuts will be but it clear it will have a serious impact. There are lots of good examples of how companies are responding including Mercedes and Starwood.

My only issue with the article is that makes the assumption that these companies have been specifically targeting Boomers. The truth is that they have taken Boomer business for granted and are now feeling the pinch when it starts to decline.

As the journalist says, there isn’t much point trying to target other generations since Gen X and Y are equally, if not worse, off. Maybe the result of this will be that companies have to start to really think about marketing to the Boomer generation.

There is another feature on the BusinessWeek site where the guys who started the new US 50-plus agency give their views about Boomer advertising campaigns. Nothing much new but worth a quick look. Remember, listen to the podcast. Dick Stroud

Good intentions makes good PR but don’t change the world

If you are busy and don’t have time to read something that is only tangentially related to the 50-plus marketing then farewell and have a good day. If you have a minute or two and are interested in reading a few more of my moans about the UK, then thanks for hanging around.

The “bottom line” is this; over the past decade “doing things” has been replaced by an endless stream of consultations, initiatives, enterprises, action-groups, commissions and all sorts of expensive bodies that generate words but no action. To feed the government’s need to be seen to be doing something, a whole parasitic industry of agencies. NGOs and consultants has exploded to generate the impression that things have or are about to change. Let’s be honest, over the years I have worked on this type of Government related work so I am not blameless.

Here are a couple of examples of what I mean. Back in early June it was announced that the government was going do something about the “Digital Divide” – the great unwashed who don’t pay broadband bills. With a great fanfare it was announced that one of the UK’s most charismatic entrepreneurs was going to help tackle this problem. Older people were specifically mentioned as a group who would benefit from her work. I wrote about this at the time.

A month passes and we learn that this objective has been dropped and that the focus of her attentions will be poorest 6 million people in the UK – obviously this will include a good number of the old. In truth it doesn’t matter a jot since the chance of her having any impact, with a budget of £2 million and working part time, is next to zero. The point is it generated a slew of headlines that gave the impression that something was about to happen when nothing could be further from the truth.

Another example. This week we read the headlines:” Urban allotments, reading groups and computer training for the over 50s are just some of the good practice initiatives detailed in a new approach to public mental health.” You might be mistaken for thinking that hordes of over-50s were about to start reading books on growing potatoes, checking the weather forecasts on the web before descending in their legions on a carpet of allotments that will magically appear across the country. No. Wrong. This is all part of a “consultation process” (i.e. it wont happen).

This farce reminds me of the line in Evita: “As soon as this smoke from the funeral clears, we're all gonna see, and how, she did nothing for years! You let down your people, Evita.” Substitute “British Government” for ‘Evita’ and you have the state of UK Ltd in one. OK, moan over, onwards and upwards etc etc etc.

Another aside. Is this cynical and defeatist attitude one of the negative effects of ageing or one of the benefits of having been around to see so many of these initiatives come to nothing? Dick Stroud

Twiggy now modelling for Olay at Boots

Twiggy must be coining it in. She had a long period making ads for Marks and Spencer and now she is promoting Olay via Boots. This ad taken from the Saga magazine.

Sensible idea for Olay to pick up on her popularity. Dick Stroud

Ford’s Hill Launch Assist

Flipping through the latest edition of Saga Magazine I came upon this ad for an optional extra on some of Ford’s UK cars. It seems that it has been around for nearly a couple of years but this is the first time I have ever heard of it.

According to Ford the gadget helps drivers make the perfect hill start no matter how steep the gradient or how heavy the load.

It goes on to say: “The car's sophisticated software detects the attitude of the car every time it becomes stationary – for example at traffic lights. The locking system eliminates the need for the driver to apply the handbrake and instead automatically holds the car while the driver's foot travels from the brake to the accelerator pedal. As soon as sufficient engine torque is available it releases the brakes without the risk of either stalling or rolling backwards.”

The fact that the feature is standard on Ford’s Transit vans make me think that it wasn’t designed as a feature to appeal to the older market. I suspect some bright spark came up with the idea of promoting the benefits to the older market as an aid to assist their driving. Sounds a reasonably good idea. Dick Stroud

The Age of Responsible Consumerism

An interesting item from Matt Thornhill about: "Responsible Consumerism".

He makes a couple of point that I partly agree with (at an instinct level) but would feel happier if I had the research to back up my instincts.

Instinct 1. The reduction of consumption as people grow older.

Matt, qualifies this point by saying people purchase fewer material goods and more enriching experiences. The total consumption, measured in dollars might be the same or more but it shifts from ‘stuff’ to experiences.

Here are a few of the uncertainties. If we strip out the purchases needed to support the family, are older people spending less on themselves than they did before? We know that a lot of older people are helping fund their kids and grandchildren - how much of this is spent on material goods?

Is it possible to disentangle the effects of changing economic circumstances from what is due to some inherent change in behaviour ?

Is the nature of the material purchases changing (i.e. less white goods more electronics and high ticket items) but the dollar/pound level staying the same?

Instinct 2. Consumers of all ages are thinking more about the environmental impact of their purchase behaviour and consumption patterns. I have noted a couple of times that UK research suggests that the 50-plus think more about environmental impact than their kids.

My main uncertainty with this argument is the difference between 'intention' and 'action'. A comment left about Matt’s article explains the point:

“A recently-completed study of UK shoppers tracked both reported attitudes and actual behaviour and found that as few as one-third of consumers actually translate the responsible attitudes they profess into action. For the most part, value remains a far more effective driver of consumer behaviour than environmental or social concerns alone.

My bet is that there is a mega difference in attitudes between the professional socio-economic groups, who are grossly over-represented in the media, and the rest of population. Basically, I think that much of the commentary about the environment is the converted preaching to the likeminded. I wonder how much real change there has been in the behaviour of the rest of society?

Both points are worth musing for a few minutes since the repercussions could have a big impact on your marketing. Dick Stroud

New York creative agency having a crack at the US 50-plus.

The new agency (Agencyfive0) has got off to a flying start with this article in Forbes, by one of the founders.

This is what Five-0 says about itself

At Five-0, we’ve spent the last year studying, researching and conversing with consumers age 50 to 70 across America. We’ve met with experts and authors on their habits. We’ve interviewed researchers and statisticians about their trends. We’ve heard their opinions about advertising and marketing in segments from packaged goods to automobiles to erectile dysfunction.

What have we learned?

We’ve learned that today’s 50+ consumer (the boomer) is changing everything about aging and marketing. From what they buy to where they buy to why they buy etc etc.

As always, it is great to see new agencies and consultancies entering the 50-plus space. I like the web site and style. A few gripes. Pity about the Intro screen. Also, the name is a tad confusing – is it five0, five-0, agencyfive0. But, these are minor things. Dick Stroud

What do they know that I don’t?

I have been banging on for ages about the fallacy of social networking sites that are age specific and just when I think the message must have dropped another crop of the ***** appear.

I can only assume it is the indomitable positive attitude of my generation that in spite of all of the evidence to the contrary people keep having a go at winning Boomer eyeballs by creating age ghetto web sites.

There is an alternative explanation, which part of me would like to believe, and that is I am wrong and these sites are little gold mines. Will somebody put me out of my misery and tell me what is really happening.

This is a nice article about Boomercafe.com, one of the first Boomer sites that has been going for a decade and run for the fun of it – nothing wrong with that – I guess it was a blog before blogs existed.

These two articles (one and two) contain background about these four new Boomer sites. Hey Ho. Dick Stroud

Interview with Harvard Business School professor John Quelch.

If you get a chance go to the Harvard Business Review Web site and look at the video interview with John Quelch, about the impact of the psychology on consumer behaviour.

I reckon this guy talks a lot of sense. Dick Stroud

More evidence that oldies are flocking to Facebook

I think the chart says it? If you want chapter and verse read the comScore press release. Dick Stroud

Age ghetto social networking sites don’t work

Earlier this month I wrote that TeeBeeDee had turned up its toes and was no longer. It had followed in the footsteps of the famous Norwegian Blue Parrot.

If you don’t know what I am talking about put it down to one of the formative experiences of living during the era of Monty Python.

Chuck Nyren also covered the subject and forcefully rammed home the point that age ghetto social networking sites are at best a cottage industry at worst a way to burn a lot of filthy lucre.

Chuck’s post also includes a fascinating set of comments from TeeBeeDee’s ceo in the WSJ.

Anybody thinking of making their fortune out of capturing the 50plus/Boomer £/$ by building a social networking site please read this stuff. Dick Stroud

A 30 minute presentation about the 50-plus and digital

Yesterday I gave a 30 minute presentation to the marketing seminar that preceded the Retirement Show in London.

These are the three subjects I spoke about:

1. Age and Internet use. What do we know – what assumptions do we make – is age a proxy for Internet use?

2. Where do they (the 50-plus) go –what do they do? Lots of marketers reckon that there is some mystical place where the 50-plus hang-out online and if only they could find where it is they would be able to ‘engage’ them. It aint that simple.

3. So What? After you have heard my pearls of wisdom what should you do? If I am lucky, one of the points from presentation will have stuck in the audience’s head. I gave them five actions to select from. Dick Stroud

McCann Erickson’s 50-plus research

Marketing magazine has the results of some research conducted by McCann Erickson and the Future Foundation about the 50-plus.

Nothing much new, but it is always nice to see further confirmation of our own research.

I found the above chart very interesting. What percentage of each age group agree with the statement: “I love shopping for clothes.”

I know I am always banging on about age neutral marketing but this chart really seems to confirm an age-neutral response of consumers. Of course if you were dig into these numbers and look at the responses of different lifestyles you would find a wide range of attitudes. Dick Stroud

New Mosaic classifications

Experian has rebuilt and updated its consumer classification Mosaic UK with a range of additional data sources.

This is what Experian says about its changes for the 50-plus.

The new version of Mosaic improves understanding of older people by making a distinction between the increasingly active nature of early retirement years (with the commercial opportunities this presents) and the latter years requiring more health and social care.

It identifies a move away from the traditional south coast retirement towns with many more affluent retirees (dubbed County Loving Elders) moving inland to historical and cultural towns and others (Beachcombers) seeking exclusive seaside villages and expensive holiday destinations.

I want to get more details about these changes but navigating the Experian web site is like playing Level 99 on some devious Nintendo mind trainer. Maybe Experian thinks that it is providing a public service by making its web site as difficult as possible to use. Dick Stroud

Making sense of consumers' recession behaviour

Chief Marketer contains a very sensible article about consumer behaviour during the recession (from the US).

The research shows that consumers have cut spending in many ways, but certain industries have been hit harder than others, for example:

• 20% of consumers have cancelled summer vacations
• 46% reported spending less on home improvements
• more than two thirds of consumers reported cutting back their household spending on luxury goods and services, as well as entertainment
• 50%+ reported cutting back spending on apparel and personal care (clothing, shoes, accessories, cosmetics) and major household items (electronics, appliances, household accessories)

In addition, consumers also seem to be losing optimism that the end of this recession is near.

In April 40% of said their household economic situation was improving or that they expected it to improve this year. Those reporting the same feeling in May fell to 29%.

I know it is US based and is multi-age but I think there are some good lessons for the UK’s 50-plus market. Dick Stroud

Are your customers still employed?

Yesterday gave us the latest snapshot of UK unemployment. It doesn’t make very good reading. The jobless rate is now 7.6%, the highest in more than 10 years.

You need to dig a bit deeper than the headline figures to understand what is really going on.

• 29 million are still employed, down 269,000 from the three months to February 2009 and down 543,000 on a year earlier (i.e. on the year we have lost around 2% of the workforce).
• The split of people in full-time employment is 13.68 million men and 7.79 million women.
• Those in part-time employment splits 1.88 million men and 5.65 million women.
• Government employs 6.02 million people, up 15,000 from December 2008. Those who pay the wages of state workers (those in private sector employment) are 23.09 million, down 286,000.These figures hide the real scale of state employment since there are many indirect jobs that are dependant on Government funding.
• The number of UK born people in was 25.28 million, down 451,000 from the three months to March 2008. The number of non-UK born people in employment was 3.81 million, up 129,000 for the same period.
• Unemployment for 18 to 24 year olds is 726,000, up 95,000 from the three months to February 2009.

So what does this mean to marketers?

The young are having a really bad time of it. If you are dependant on Yoof spending then be afraid.

Government employees are doing well. Some would say at the expense of those in the private sector. If there is anyway you can target public sector workers, do it. In the longer term public sector employment will be decimated but right now it is growing. Don’t forget state employees are paid far better pensions than those in the private sector so they are ideal consumers to acquire for the longer term.

People not employed in the UK are doing pretty well, both at getting and keeping their jobs. Targeting ethnic markets looks like a winner.

The employment stats make no mention about what is happening with 50-plus employment. Previous data suggest that it is holding up reasonably well, however, when older people lose their job then getting another is extremely difficult. One explanation for the resilience of the older group of employees is the reluctance of companies to enforce retirement policies because of the precarious state of their pension provisions. The Chartered Institute of Personnel and Development, said: 'Unlike in earlier recessions, companies are worried about pension liabilities, so they are not shipping (older workers) off into retirement. Dick Stroud

Grandparents provide $370 Billion support to their grandchildren

Almost two-thirds of America’s grandparents provided financial support to their grandchildren during the last five years, 40% for general purposes and 26% for education, according to the MetLife Mature Market Institute.

This is press release and here is the full report.

The research indicates that those with less income and net worth are giving a higher percentage than they did before the economic downturn - and some of them are feeling the pinch, with more than 20% reporting that their generosity has had a negative impact on their own financial picture.

My findings in the UK show a similar picture.

If you ever needed evidence that the financial dynamic between grandparent and grandchild is important than this research provides it. Dick Stroud

Over-50s are confused about finance - so are the financial institutions

Today there is research published that comes to totally different conclusions about the financial attitudes of the over-50s.

LV= concludes that Britain's over 50s are struggling more than ever to keep up the level of savings needed to fund a comfortable retirement lifestyle.

Who or what you might ask is LV=. Every time I write anything about his company I wonder how much they paid their branding consultancy to come up with this name.

On the same day we read that: “Contrary to the perception that people are stashing cash under the mattress in the recession, research by Saga Financial Planning shows that many over 50s are forecasting strong investment opportunities over the next 18 months, with nearly a third (29%) tipping shares as good prospects.

Optimistic over 50s are also seeing growth potential in the housing market, with a fifth (20%) thinking it offers superior long term returns. One in ten says that savings offer the best opportunity to make the most of their money.

Pays your money takes your choice who you believe.

With all of this PR generating research you have to ask yourself: “what research results are in the best interest of the company.” It is amazing how the results and corporate best interest seem to coincide. Call me a cynic? You had better believe it. Dick Stroud

More factlets about the rate of adoption of new services by the 50-plus

There is a plethora of research being published that compares the digital habits of Gen Y and Baby Boomers. It all shows the same thing, plateauing of uptake by the young, rapid rate of uptake by the oldies.

Of course the explanation for the high growth rates is due to the low starting base in 2008. However, it does tell a message about the way that older people are entering the domain of Yoof and using their digital toys. Dick Stroud

Online, ‘a Reason to Keep on Going’

This excellent article from the New York Times explains one of the great motivations for older people to use the Internet and in particular social networking.

Online contact is a way of overcoming social isolation and clearly a lot of older people are using digital technology to replace ways of interacting that their bodies no longer permit. Definitely worth a read. Dick Stroud

The UK Care market in crisis

Four Seasons is one of the UK’s largest providers of care for older people (15,000 people in 400 locations).

The company is also a high profile examples of what goes wrong when valuations plunge and the high levels of debt can not be refunded.

At the last minute it looks as if it has staved off going into administration but only at the cost of wiping out many of the creditors. There are a lot of companies in Four Season’s position.

The vulture funds are out there waiting to pounce and pick-up cheap assets. I don’t reckon they will have that much longer to wait.

I wonder if the Government authorities realise that a large part of the UK Care Industry is in such a precarious financial position and that this will undoubtedly be having a negative impact on the quality of care provided. Perhaps they don’t care? Dick Stroud

Asking media consumers about their consumption - weird idea

The investment bank Morgan Stanley has published a report on teenage media consumption written by a fifteen year old.

The intern was asked by the company’s media and research department to describe how he and his friends "consumed media" like games consoles, cell phones, television and the Internet...

Morgan's head of media analysts said his report was "one of the clearest and most thought provoking insights" the company had seen. So they decided to publish it, and to much interest among its clients, which include media investors and executives.

This article in Forbes gives a balanced account of the paper. You can also download the full research paper.

To be honest it didn’t say anything that came as a great shock. Anybody who looks at generational media consumption data should already know this stuff. The fact that the guys at Morgan Stanley were so shocked goes some way to explaining the chaos in the financial markets?

How about Morgan Stanley media analysts trying another idea and have somebody in their 60s and 70s write a paper about their media consumption? Why do I think it will not happen? Dick Stroud

Ageing China an opportunity and a potential disaster

All good marketers should understand global demographics. I am sure it is not something that is taught but it should be.

Here is a factlet that everybody should know - by 2030 China will have a higher proportion of its population who are 60+ than the US.

This weekend two excellent articles about this subject were published. You should read them both. If you only have a few minutes make sure it is the one from the LA Times. Here is the other one.

I love this quote: “China may be the first major country to grow old before it grows rich.”

"So what" I hear you ask. Well China has only a couple of decades to find a solution to its ageing problem. I suspect it will be far more fleet of foot about it than Europe and the US.

For Western companies that understand something about ageing and the associated services and products this is a terrific opportunity. But, just imagine that China puts its industrial muscle to work? Just imagine the flow of cheap ageing products into Western markets. Watch out Stannah Stairlifts! Dick Stroud

Sagazone revisited again

Every so often I have a look to see how many people are listed on the SagaZone social networking site.

Today the figure is 63,111 back in July 2008 it was 44,000. I make that a growth rate of 55/day. The previous period I measured showed a growth rate of a 100+ new profiles a day.

When you consider how few of these profiles will be active it doesn’t prove a resounding success for the idea of age-specific social networking.

Anybody from Saga like to add there side to the argument? Dick Stroud

Ageshift - interesting style of document

This is an interesting publication.

Forster describes itself as the: “UK’s leading social change communications consultancy.” I have bumped into them over the past few years and know that they have an interest in the older market.

This document is part promotional part educational (a collection of bits and pieces about older people). It is pretty good.

A couple of gripes I have the document. Firstly, it republishes, in an uncritical way, research about climate change and older people (Greening the Greys).

When this research was first published I wrote about the far from rigorous methodology that was used to derive the data. It is a pity to see the reports conclusions republished as if they are facts.

Secondly, there is not enough consideration about the heterogeneous nature of the older age group.

Other than that it is a good document and well worth a read. I really like the design, although I not sure about the cover photo, but it certainly got my attention. Dick Stroud

2009 Facebook demographics for the US show a 513% Growth in 55+ Year Old Users. College & High School Drop 20%

My guess is that these numbers should not be taken at face value and need more analysis.

However, they do show the way in which older people are jumping into Facebook.

Most of the time I think it is only to see what all of the fuss is about but it might be enough to sound the death knell of the site as a secure retreat for Yoof.

What teenager wants to be hanging around a place where 35-54 year olds are the largest group of visitors? Dick Stroud

Don’t forget older men in your marketing plans

The arguments/examples in this article are from the US but I reckon the argument holds true for the UK.

I am as guilty as anybody in telling my clients that it is all about targeting the older woman not men. Maybe I have been overdoing things a bit.

According to this article 40% of men over the age of 50 said they are not feeling increased stress because of the economy, compared with 30% of women in the same age group. In addition, Baby Boomer men are taking on more family shopping roles and are more likely to buy brand-name products.

The survey found that about one-third of Baby Boomer males are the main household grocery shopper, up from 20% ten years ago. While in the store, about half (46%) of these men are willing to purchase brand names over store brands, compared with about 26% of women.

I am a sure this change in behaviour has a big divide between the young-old and the old-old and also by socio economic group so the results need to be read with caution. Dick Stroud

Grey Power - specialising in the insurance needs of mature Canadians.

I have been travelling in Canada. When overseas it is always fascinating watching TV ads and wandering around shopping malls looking at how other countries tackle 50-plus marketing.

I have seen a lot of ads for Grey Power. This is not from the current ad campaign which I think a lot better. The company has a nice clear web site and a simple and compelling message. Looks good to me. Dick Stroud

UK age composition of Facebook users

An interesting factlet from the FT – the 45+ are a third of all Facebook users. Dick Stroud

Age old stereotypes

I was not that complimentary about one of the Standard Life’s earlier ads about: “People don’t grow old like they used to.” A more recent one is better - but I wonder how many people know who the guy is? I do, do you?

Anyway this is not to do with the creative but the ongoing research from Standard Life into oldies. The most recent document is called “Age Old Stereotypes”. This is what it says about itself

This report, the latest in the ‘Death of Retirement’ series, adds to the body of evidence that the baby boomers will abolish the current understanding of the concept of retirement.

Those born between 1946 and 1964 are more ambitious for the future than any other generation before at this age. This transformation provides a clarion call to the financial services industry. We have to change how we discuss ageing and long term planning, using language that harnesses consumers’ excitement, rather than dwelling on their fears.

If we can help consumers make the connection between their aspirations and long term savings solutions, then we will enable people to have the future they hope for. It really is that simple.

Well I certainly agree with the sentiment.

It is a strange report. Not the lush glossy approach of HSBC’s equivalent document. It is a bit edgy – a compliment not a criticism. I don’t think you will learn anything new but is definitely worth a quick look. Dick Stroud

Homecare franchise

I have been amazed how long it has taken UK franchise companies to target the homecare sector. Brightstar, a US company, appears to have got the idea with 130 locations currently open the company has plans for an additional 500 locations in the next five years.

Maybe there are such operations running in the UK? Dick Stroud

Financial institutions - we don’t trust you

Harris Poll has asked Americans about their trust of financial institutions (this includes all sorts from banks to insurance companies) and discovered an interesting generational difference.

Almost two-thirds (64%) of Gen Xers (those aged 33-44) and 61% of Baby Boomers (those aged 45-63) say they do not consider any of these to be honest and trustworthy compared to 52% of Echo Boomers (those aged 18-32) and 53% of Matures (those aged 64 and older). So grandparents and Yoof have more trust than their parents. Dick Stroud

Age specific social networking is high risk stuff

Back in July 2007 I wrote about a social networking site called TeeBeeDee.com that was: “founded to provide a voice for the wisdom of our crowd – those of us who have learned from our life experiences and want to keep on growing at midlife.”

Anybody who has read my blog will know that I am highly sceptical of social networking that relies on the person’s age as the primary reason to get and retain their attention.

In a note to members, the founder said that the company had lacked the resources to continue developing the site: “Our business opportunity proved disappointing.” The site had raised more than $9 million but had only 70,000 unique visitors last month. Instead, they were quite content with using Facebook, which has seen its fastest growth in users over 55.

The article concludes that: “Baby boomers apparently did not want to be categorized away by their age.” Sad but inevitable. Here is the Reuter's note about the business. Dick Stroud

Growing Old in America: Expectations vs Reality

The Pew Research Center has just released a 152 page report detailing the research results from a telephone survey of a nationally representative sample of 2,969 adults living in the US. The survey was conducted by Princeton Survey Research Associates International.

It is pointless attempting to summarise such a long document, especially since I haven’t yet read it, but, from first glances it looks to contain some interesting ideas. The report covers

• Demographics of Older Adults
• Perceptions of Old Age
• The Daily Lives of Older Americans
• Family and Friends
• Intergenerational Relations within Families
• Work and Retirement
  

So when is somebody ‘old’? Amusing results.

When I have worked my way through the detail I will comment. The report is free so there is no excuse for not downloading. Dick Stroud

The old have seen it all before

McKinsey has just published a paper about how the spending behaviour of US consumers is changing and concluded that after two decades of unsustainably high levels it is returning to where it was in the past - much lower.

The bit of the research that really interested me was the difference in the expectations of how the stock market will behave over the next 30 years. Of course nobody has the faintest idea, but answering this question is a good proxy for people’s optimism about the future and the extent to which they perceive today’s economic problems as transitory. The chart says it all.

McKinsey concludes.

Finally, the historically poor returns of US equity markets during the lives of investors under the age of 45 may be creating a generation of equity-averse consumers. Less than half of US respondents believe that the stock market will produce returns above inflation over the next 30 years. Eighty-five percent of consumers from 36 to 45 believe that it won’t.

What a fascinating conclusion. Do the young know something the old don’t? Methinks not. This is all about the dent this recession has created to the risk averseness of the younger age groups. A factor that will be around for a long time to come. Dick Stroud