Marketing to the Greys
November 14 2001
Thomson Intermedia has revealed the findings of its detailed investigation into the marketing and advertising strategies of the key players currently targeting the "Affluent Grey" market in the UK.
The report has been inspired due to the large proportion of both the UK and Europe's population aged over 50, with this group currently accounting for over a third of the UK's population. TI believes better health and longer life spans are contributing to this trend, which is set to continue over the next 50 years, resulting in a shift towards a sizeable majority of middle aged and elderly consumers. This has convinced many brand owners and marketers to examine the opportunities to target this group more closely and develop products specifically targeting the "grey" or over-50's market.
Thomson Intermedia looked at the influence of such brands as Benecol, BUPA, Cornhill Direct, Imperial Cancer Research Fund, L'Oreal, Reader's Digest, SAGA Holidays and Seven Seas.
The key findings of the report include:
- Marketing to the grey market tends to involve large marketing budgets and strategies are usually integrated and multi-channel.
- Television accounts for a large proportion of marketing spend, with every brand analysed spending over £1 million in the year to 31st July 2001 on television commercials.
- Many brands successfully target the grey market through direct mail. For example, almost 95% of Saga Holiday's direct mail is sent to those over 50 and over 80% of Cornhill Direct's direct mail is sent to those over 50.
- Trust, confidence, quality, reliability and service are key brand values communicated by the selected brands.
- Relationship marketing is often key to marketing strategies targeting the over 50s, aiming to create a sense of community and build brand loyalty.
- Prompted brand awareness is over 74% for all brands, with Reader's Digest receiving the highest score, followed by BUPA.
- Advertising for all brands is rated positively by the over 50's.
- It is not necessarily the case that the over 50's rate advertising specifically targeted at them more positively than other advertising from other brands. However, lessons can be learnt from Saga Holidays, which received the most positive advertising appeal rating from both thrivers (aged 50-59) and seniors (60-69).
- Cornhill Direct, L'Oreal, BUPA and Benecol all received the highest advertising recall figures for their television advertising; Saga Holidays and Reader's Digest received the highest recall figures for their direct mail and Imperial Cancer Research Trust and Seven Seas receive the highest advertising awareness for their press advertising.
- Nearly half of respondents have used L'Oreal products in the past year, and over a third of thrivers surveyed have bought from products or services from Reader's Digest over the past year. Although only 6% of all users have bought from Saga Holidays in the past year, 14% of thrivers and 17% of seniors intend to buy a Saga Holiday in the next year.
Providing analysis of the market drivers with a comparison of product and service offerings, as well as analysis of the communications spend, the report delivers an in-depth insight into the branding, positioning and targeting strategies employed by affluent grey brands in the UK. Utilising Thomson Intermedia's own in-house media monitoring capabilities as well as its 20,000 strong consumer panel of Internet users, the report gives access to intelligence on consumer perception and brand awareness, and implications for the future.
According to Charles Ilsley, Research Director at Thomson Intermedia's Research & Consultancy Division, "If you can reach the Affluent Grey market effectively you will reap the rewards, they are extremely reactive to advertising and have the money to spend. Brands such as BUPA, Readers Digest, L'Oreal and Saga Holidays, are leading the way from the brands we looked at."
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
