MARKETING TO BABY BOOMERS

On January 1, 2006, the oldest Baby Boomer turns 60, heralding the arrival of another watershed event in the lifespan of this generation. Then, for the next nineteen years, one Boomer will turn 60 about every 7.5 seconds. This demographic tidal wave will affect the health & fitness industry with greater impact than the aging of any previous generation. Mature values and trends will dominate marketplace realities like never before.

Over the last three decades, Boomers have made substantial monetary contributions to health and fitness companies. This generation is responsible for the early growth and development of many of today’s mega-brands such as Nike, New Balance and Nautilus.

However, some of the leading fitness brands have forgotten their legacies, recently ignoring the generation that propelled early growth. Ironically, Boomers can represent as much as 30% of a mall’s customer opportunities, reflecting population demographics; but population statistics alone do not capture the propensity of this generation to outspend younger generations by $1 trillion per year on goods and services. Boomers have $750 billion in annual discretionary income and a willingness to invest in traditional and alternative health & fitness products and services.

Given the enormity of the economic opportunities, plus shrinking of the market segment including adults 18 to 34, today’s enlightened health & fitness marketers are renewing commitment to reaching Boomer customers. And executives are learning that the motivations driving Boomers today are very different from those that were once the youth-centric foundation of industry.

Instead of marketing to externally-directed values, such as physical appearance and romantic conquest, Boomer-focused innovators address internally-directed values such as age acceptance, gains in stamina and energy, emotional well-being and forestalling age-related illnesses. Here are a few examples.

Curves, an extraordinarily successful neighborhood fitness franchise targeting middle-aged women, now exceeding 9,000 locations, has created a culture where members perceive that they’re helping each other. Understanding that middle-aged Boomers often seek like-minded communities for networking, validation, and peer support, the innovative company engenders greater loyalty among its clientele by facilitating formation of support communities.

Further, this burgeoning Texas-based company has also discovered the inherent power of “dialogue over monologue.” Their advertising messages reflect Boomers’ discerning need to feel part of an organization that honors deeply held values such as “beauty emanates from within.” And just to be sure Boomers feel completely at home when circuit training, the company plays classic and country rock music to create an uplifting, nostalgic user experience.

Another area of rising importance with respect to consumer motivations was recently discovered through national consumer research. A newly defined market segment has emerged, entitled Lifestyles of Health and Sustainability or LOHAS. This market represents slightly less than 30% of the U.S. population, but it is an economic powerhouse, purchasing over $350 billion in goods and services annually. Over 26 million members of the LOHAS segment are also Boomers, born between 1946 and 1959, or members of the late Silent Generation, born between 1940 and 1945.

LOHAS consumers differentiate themselves by preferring brands that meet value-driven expectations for wellness, self-development and healthy living. They are dedicated to the environment, systemic human health, spirituality and personal growth. They believe in the interconnectivity of all humankind on a macro scale and assimilation of mind, body and spirit modalities within the individual. Thus, they prefer fitness programs integrating this triumvirate, such as PIYO, a blend of Pilates and yoga.

From a retailing perspective, knowledge of changing Boomer values predicts new areas of opportunity. For example, key growth areas in the grocery category include foods or beverages with specific health claims (such as diabetes management), fortified foods or beverages, natural foods or beverages, organic foods or beverages, soy foods, and soy milk/soy beverages. Healthy, natural and organic foods sales have grown meteorically during the last few years, as typified by the spectacular growth of Whole Foods Markets

Further, sales of herbal supplements, homeopathic remedies, weight-loss supplements, and multi-vitamins will continue to mushroom as Boomers grow older. Self-directed healthcare, and implied personal empowerment, will provide impetus and long-term attraction among the members of an independent, sometimes iconoclastic generation.

Alternative healthcare is another growth industry that dovetails Boomers’ budding commitment to “do-it-yourself” health. Industry observers have noticed growing acceptance and swelling consumer healthcare investments in acupuncture/acupressure, biofeedback, enzyme therapy, homeopathy, nutrition therapy, massage therapy, and naturopathic medicine.

Addressing many of these emerging Boomer values, where New Age sensibilities converge with the modern technology, The Wild Divine Project located in Boulder, Colorado, has created an interactive computer game that enhances mindfulness and health-promoting control of emotional states. The game integrates biofeedback and arresting multimedia experiences with personal computers. By consciously elevating and lowering emotional states such as the brain’s alpha rhythms, the spiritual wanderer travels through a fantastical game-land reminiscent of Shangri-La to overcome obstacles and accomplish rites of passage

Other emerging Boomer intrinsic fitness drivers include the need to remain mentally and physically active for the purpose of being productive and useful. The last thing a typical Boomer wants is to pass away retirement glued to a rocking chair. This is a vigorous generation, and, according to recent surveys, Boomers' preferred exercise methods include walking, bicycling and weightlifting. Yet, this technology-loving cohort also resonates with the work-out advantages of high-tech equipment such as the machines that can be found at Curves.

The future looks bright for industries and businesses serving the health-oriented Boomer mindset. Boomers will increasingly pursue fitness as a way to obviate the cosmetic impact of aging. Less obvious will be up-and-coming motivations such as staying vigorous for grandchildren, undertaking intense physical preparation for adventure vacations and learning expeditions, and improving cognitive health and memory. Stay tuned for the arrival of a national mall chain of “mental gyms.”

Copyright © 2007, Brent Green & Associates, Inc., All Rights Reserved