he situation of constantly growing and increasingly fast developments in society, economy and politics during the past years probably will not change in the next decades. One of the greatest and most significant trends in the society of industrial countries is the demographic change. Many western nations are experiencing a radically demographic revolution in their history which is about to change the age structure of the countries drastically. The fact of an increasing life expectancy is enhanced by a concurrently decreasing birth rate and leads to an obsolescence of the society, and therefore to a shift of the proportion between the generations from younger to older people. Only in a few years, for the first time, Germany’s population will consist of more old people than of younger ones. In 2050, more than one third of the population will be over 60 years and only 16% under 20 years old, whereas 100 years before, in 1950, just 14.6% were between 60 and 80 years and 30.4% of the inhabitants under 20 years old.
In consequence of this mentioned development, the main regarded issues are:
•Analyzing the therewith connected shift of the value system of the older people and
•Priority of rectification of the marketing concepts in retail, based on the new circumstances.
Shift of the Value System
In conjunction with the rising expectancy of life, the calendar age is not an ap- propriate criterion for splitting up the generations anymore, as in the past the age between 50 and 55 separated the older from the younger persons. Nowadays it is the functional age that is deciding. Today’s Generation 50plus and their values and needs are greatly varying from those of the people aged 50 in the past. The mental attitudes and wishes of the so calledBest Agersare much closer to those of a 45year-old than a 75-year-old person. It turns out that older people are more active, autonomous, wear more jeans and drink more Coke than their antecessors. A significant change has taken place in the last years and decades as the expected older generation does not consist of a homogeneous group, but has increasingly various feelings, thoughts and point of views about the way of living. Depending not only on the eventfully past of yesterday’s older generation like war, hunger and diseases, their behavior and attitudes greatly differs from those of the seniors of today.
Table of Contents
1 Introduction
1.1 Problem Statement
1.2 Way of discussion
2 Analysis of the target group
2.1 Demographic Development
2.1.1 Population
2.1.2 Age Structure
2.2 The Grey Market
2.2.1 Classical image of the seniors
2.2.2 Modern view of the seniors
2.3 The Generation 50 plus
2.3.1 Household Situation
2.3.2 Educational Level
2.3.3 Financial Situation
2.3.4 Segmentation
3 Values of the Generation 50plus
3.1 Maslow’s hierarchy of needs
3.2 Definition of Value
3.3 Change of Values
3.4 Life Styles
3.4.1 Health and Sports
3.4.2 Family and Relationship
3.4.3 Traveling
4 Market Potential
4.1 Purchasing Power
4.2 Expenditure Behavior
4.3 Age-related Changes
4.3.1 Physical Changes and Consequences
4.3.2 Psychological and Social Changes
4.4 Consumer Needs
4.4.1 Quality
4.4.2 Price Consciousness
4.4.3 Brand Loyalty
4.4.4 Convenience
4.4.5 Advice
4.4.6 Services
5 Marketing Mix of the Retail Branch
5.1 Assortment
5.1.1 Product
5.1.2 Range of Goods
5.1.3 Service
5.2 Store Design
5.2.1 Safety and Convenience
5.2.2 Clearness and Accessibility
5.2.3 Readability of Information
5.3 Promotion
5.3.1 Copy Strategy
5.3.2 Communication
5.3.3 Advertising
5.3.4 Media Selection
5.3.5 Sales Promotion
6 Conclusion and Prospects
Objectives and Topics
This thesis examines the impact of demographic change in Germany on the retail sector, specifically focusing on the evolving needs and values of the "Generation 50 plus." The core research question addresses how retail marketing concepts must be adapted to effectively serve this growing, economically powerful, and heterogeneous target group while maintaining a competitive advantage.
- Demographic shifts and the aging of the German population.
- Transformation of values, life styles, and consumer behavior among seniors.
- Purchasing power and market potential of the "Best Agers."
- Analysis of consumer needs: quality, convenience, advice, and services.
- Adaptation of the retail marketing mix (assortment, store design, and promotion).
Excerpt from the Book
Rectification of the marketing concepts in retail
However, despite of the gradual demographic development in the previous centuries, the societies, economies and markets have not been prepared for the growing number of seniors and their changed values and needs. The main focus of marketing is still on the market of younger people, even if it is especially the Generation 50plus that develops a completely new, active and vital target group. The high potentials of the Best Agers and their great market power become increasingly more important for industry and retail. That is why a special marketing concept focused on the individual values and needs of the seniors turns out to be more and more essential. Especially in retail marketing, necessary consequences arise from the increasing and altering circumstances of the Generation 50plus. The point is to recognize opportunities and thus keep competitive advantages opposed to the business rivals (Meyer-Hentschel and Meyer-Hentschel, 2004, p. 17).
Summary of Chapters
1 Introduction: This chapter introduces the demographic shift in Germany and outlines the thesis's approach to studying the aging population's impact on retail marketing.
2 Analysis of the target group: This section details the demographic development, defines the "Grey Market," and provides a segmentation of the diverse Generation 50 plus.
3 Values of the Generation 50plus: This chapter explores the psychological underpinnings of the seniors' behaviors, including Maslow’s hierarchy and the transition of values from "yesterday" to "today."
4 Market Potential: This part analyzes the significant purchasing power and expenditure behavior of the elderly, identifying core consumer needs like quality and convenience.
5 Marketing Mix of the Retail Branch: This central chapter discusses practical adaptations in retail, covering assortment strategies, store design requirements, and effective promotional communication.
6 Conclusion and Prospects: The final chapter summarizes the necessity for retailers to evolve their business models and product ranges to successfully integrate the Generation 50 plus as a primary consumer segment.
Keywords
Generation 50 plus, Best Agers, Demographic change, Retail marketing, Consumer behavior, Purchasing power, Grey Market, Aging society, Marketing mix, Customer needs, Value shift, Seniors, Service, Convenience, Brand loyalty
Frequently Asked Questions
What is the primary focus of this thesis?
The work examines how the demographic shift toward an aging society in Germany affects the retail industry and explores strategies to adapt marketing concepts to the Generation 50 plus.
Who is the target group defined in this study?
The target group is the "Generation 50 plus" or "Best Agers," a diverse cohort of older consumers who possess significant purchasing power and evolving individual values.
What is the main research objective?
The objective is to demonstrate that seniors are no longer a homogeneous, passive group, and to provide guidelines for retailers to capture this market through tailored products and services.
Which scientific methods are employed?
The thesis utilizes a literature review, analysis of demographic and statistical data, and case studies to evaluate current retail practices and senior-related market potential.
What is covered in the main part of the work?
The main part covers the analysis of the senior market, the evaluation of their changing values and life styles, the measurement of their purchasing power, and specific recommendations for the retail marketing mix.
Which keywords best describe this research?
Key terms include Generation 50 plus, demographic change, retail marketing, consumer behavior, and the Grey Market.
How does the author view the "Grey Market"?
The author argues that the Grey Market is a vital, active, and economically powerful segment that has been historically underestimated and neglected by the retail industry.
Why is the "Age Explorer" mentioned in the text?
The "Age Explorer" is presented as a tool that allows marketers to physically simulate the limitations of aging, helping them to better understand and design solutions for the specific needs of older consumers.
- Quote paper
- Kristin Klebl (Author), 2006, Changes in value of the Generation 50 plus and the effects on retail marketing, Munich, GRIN Verlag, https://www.grin.com/document/63975
