Changes in value of the Generation 50 plus and the effects on retail marketing

Mémoire (de fin d'études) , 2006 , 65 Pages , Note: 1,6

Gestion d'entreprise - Commerce et Distribution

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.

Inhaltsverzeichnis (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

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The main objective of this diploma thesis is to examine the changing values of the Generation 50 plus and their impact on retail marketing strategies. It aims to understand the specific needs and preferences of this demographic group and how they influence purchasing behavior.

• Demographic trends and the aging population
• Values and lifestyle changes in the Generation 50 plus
• Market potential and purchasing power of the Generation 50 plus
• Specific consumer needs and preferences
• Adapting the marketing mix to effectively reach the Generation 50 plus

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the problem statement and outlines the research approach. It explores the rising importance of the Generation 50 plus in the retail market. Chapter two delves into a demographic analysis of the target group, examining population trends, age structure, and the evolving image of seniors. The chapter concludes with a discussion on the characteristics, needs, and segmentation of the Generation 50 plus.

Chapter three focuses on the changing values of the Generation 50 plus, analyzing Maslow's hierarchy of needs and how it applies to this age group. It explores the concept of value and how values have shifted over time, as well as the emerging life styles and preferences of this demographic.

Chapter four examines the market potential of the Generation 50 plus. It explores their purchasing power, expenditure behavior, and the specific age-related changes that influence their consumer needs. This chapter delves into specific consumer needs, such as quality, price consciousness, brand loyalty, convenience, and the importance of advice and services.

Chapter five focuses on adapting the marketing mix of retail companies to effectively reach the Generation 50 plus. It examines different aspects of the marketing mix, such as product assortment, store design, and promotion strategies. It explores how retailers can tailor their offerings to meet the specific needs and preferences of this demographic.

Schlüsselwörter (Keywords)

The thesis focuses on the Generation 50 plus, their values, and the implications for retail marketing. Key themes include demographic trends, consumer behavior, market potential, purchasing power, age-related changes, and the marketing mix. The work explores specific consumer needs, such as quality, price consciousness, brand loyalty, and convenience, and discusses how retailers can adapt their marketing strategies to effectively target this important demographic.

• Université: University of Cooperative Education Ravensburg
• Note: 1,6
• Auteur: Kristin Klebl (Auteur)
• Année de publication: 2006
• Pages: 65
• N° de catalogue: V63975
• ISBN (ebook): 9783638568999
• Langue: anglais
• mots-clé: Changes, Generation