The Hindu Business Line : A brave, grey world

Marketers will tell you that while they are looking at this market, this is more by way of sound bytes for media's consumption and not too much by way of specific action.

SPIRITED AND VIBRANT, today's seniors are also increasingly well-heeled, and could be a good market if only marketers' mindsets changed.

Retirement - double the husband, half the pay" is the caption on the mug in which I drink my morning cup of coffee. Is that in-your-face communication? Or a subtle hint of what will happen to me in the not too distant future? Or is it the indifferent manner in which the world views the grey market?

Looks like this is not a problem of perception that is restricted only to India. In fact, Wally Ollins, the design expert, has this to say on the subject: "Our society portrays the old as boring, lacking excitement and not sexy. Why should anybody be concerned with the old? Why should marketers be any different?" The Western world has had a myopic view of the grey market, refusing to see its value, or perhaps is targeting the low hanging fruit - youth. India, if anything, is worse in this regard. In this country too, youth is a heady cocktail and almost irresistible to marketers. Hardly surprising, given the fact that 57 per cent of the Indian population is estimated to be under the age of 25. So who has the time or the inclination to look at the 50-plus?

The world is grey

"The world is greying" might seem an exaggerated claim, but it is not way off the mark. Many of the causes of death that plagued developing countries in the past are history now. People are living longer, sometimes even long after retirement and not surprisingly, are a lot more affluent than marketers expect them to be.

Japan is a country which has a relatively higher share of older people. A recent survey indicates that nearly 20 per cent of Japanese are over the age of 65 and by 2014, one in every four people is expected to touch this magical figure of 65! They are not shy of accepting this fact and you could see t-shirts emblazoned with the line "Japan is a country of older men and women."

How does this translate into marketing action? A mobile phone company in Japan actually designs phones for older people. Definitely an interesting concept! Given the fact that so often we see older people in India struggling with the size of the numerals on their sleek mobile phones, which have obviously been designed for their grandchildren.

The times they are a-changin'

The 50-plus of the earlier generation was very different from the same age group of today. In the early days of independent India, the only thing that the middle-class Indian had was freedom. He had a large joint family, parents to look after, children to educate and at times, aged aunts to care for. He lived for the future. The future of his children. But his children, many of whom are 50-plus, born in post-Independence India, are different, to put it mildly. The upper division clerk of pre-Independence India has spawned a vice-president who, in his early 50s, is young at heart.

Even if that sounds like a dangerous oversimplification, the fact of the matter is that this generation is far more affluent. And it is not only psychographics that we are talking about. The person we are talking about is a post-graduate with sophisticated, technologically-savvy children who are working and a portfolio manager to handle his money. He is not an over-the-hill, bored clerk that marketers think he is. And this is an opportunity that few are looking at.

Dick Stroud, who has done pathbreaking work on the 50-plus market, brands an important subset of this large opportunity as MOFS (Male Over Fifty Spenders). Yes, that is the right word - spenders. Sadly, though, as marketers we are more comfortable targeting the "always broke" generation in their early twenties. Forgetting that the earlier generation is actually funding the current generation's mobile phones! The kids understand the brand and the technology, but it is the seniors who are opening their wallets! And speaking of numbers, recent estimate says that 18.8 per cent of India is 50 years and above. So we are talking serious numbers here.

Marketing myths/myopia

At the risk of offending a few, I must say that marketers exhibit a childlike naïveté about this segment. I say childlike because of this recent incident. I was quizzing my ten-year-old niece about her school and teacher. When asked about her teacher she said, "She is nice but very old." "Old?" I asked, curiously. "Yes, uncle, she must be at least thirty." I don't need to tell you where an old fossil like myself would have liked to hide. But that is probably how marketers feel about people who are older. Never mind the fact that corporate India's movers and shakers are all in their fifties!

Mind you, companies in financial services, insurance and maybe real estate are realising the value of this segment. But what about the others? Privately, marketers will tell you that while they are looking at this market, this is more by way of sound bytes for media's consumption and not too much by way of specific action. So what is holding marketers back when it comes to the 50-plus market?

The first problem is the mindset. Marketers will talk about how a brand cannot be everything to everybody and how marketing strategy is sacrificing opportunities and having the discipline to prioritise. But I am not sure if they are still going for the low hanging fruits and being reassured by all the media hype and excitement around the youth market. There are also some myths that marketers are fond of repeating:

The older you are, the less willing you are to try new brands.

The older you are, the less responsive you are to advertising.

If your advertising appeals to older people it puts off younger people.

Older people may have the money but will not spend it!

These and a few other myths can be questioned and proven to be unfounded. Let me address just one of the issues and say that creating advertising that is age-neutral is a challenge that can be won. Internationally, brands like Honda and Guinness produce ads that work across age segments. And as for those who say old people don't spend, I can only say one thing - just take a look at our credit card bills!

Targeted marketing is key

I think the key to marketing is to use a rifle and not a shotgun. Intel, for example, recognised the value of this segment by rewarding British talent in the 50-plus segment. Revlon has launched a brand called Vital Radiance addressed to women over 50. And American carmakers are targeting baby boomers (many of whom are over 50). Boomers account for more than half of US spending and there is a point of view that says the older boomers get, the deeper the pockets become.

While all these examples may inspire us, we need to look at the opportunities here closer home. The solution may not lie as much in mass media as in direct response advertising. I am in hundreds (forgive the exaggeration) of mailing lists which have intimate (!) details like my date of birth. I receive birthday cards and offers from several on my birthday. And yet, how difficult is it to offer me products and services that are tailored to my age and interest - books, yoga wear, CDs, collectors' items, paintings ... You get the picture.

Let me give you another example of mothers-to-be. Savvy marketers of baby products like Johnson & Johnson target pregnant women and build a dialogue and a relationship that extends for years. Sending them literature on pregnancy, pre-natal care and infancy, they have a relationship driven by communication for years with the prospect. Hardly surprising that the prospect becomes a loyal customer who provides tremendous, positive, word-of-mouth. I wish someone had built a relationship with me and would continue it, if not till my grave, at least for a few more years when I am well and spending.

Light at the end

Marketing very often looks at obvious solutions and success. Life, unfortunately, isn't all that easy. And it is not only gut feel and instinct that makes for success. Marketers need to take a long, hard look at this segment. A catch-all strategy may not cut much ice with our generation. Try to understand this generation which has been there, done that. A generation that will spend time at the 19th hole and at the Chinmaya mission. A generation that has money and will spend. For a few more years, at least. Yes, we are waiting. But you have to woo us as well!

Are you ready?

(Ramanujam Sridhar is CEO of Brand-comm.)

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