Thursday, March 15, 2018

Google's research about voice activate speakers and older consumers

You don't often see Google researching and commenting about older consumers. This might not have been the largest research study in the world (301 active voice-activate speaker owners in the US aged 55+) but it is a start and it provides some interesting insights.

“It's an entity in your life that's always behind the scenes for things you need” was the highlighted comment in article. I have been using the Apple HomePod for the past month and I kind of understand what this comment means. I suspect that the Hey Siri functionality I am using is behind the curve, unlike the brilliant sound quality of the speakers, but I am increasingly using the facilities.

I was a tad skeptical about the technology to start with but I can really see its uses.

Interestingly, the Google article said that the research group had made a lot of suggestions of additional features that could be added to make the technology even more useful. Lots of them around health and safety.

If you are interested in the behaviours of older consumers I suggest you read the article and get using voice activated speakers. Dick Stroud

Friday, March 02, 2018

How KFC used FCK to turn a disaster into a marketing triumph

Around the same time as Oxfam was suffering a major meltdown in its brand credentials, KFC's stores were running out of an important ingredient in their main product - chicken. Due to a logistics nightmare the stores in the UK were having to shut. No chicken no happy customers.

This article by Mark Ritson describes how the company turned this nightmare into a marketing triumph.

What's this got to do with ageing and marketing? Absolutely nothing to do with ageing but a lot to do with marketing.

It is informative and very funny. Well worth reading. Dick Stroud

Wednesday, February 14, 2018

New report from Bain : The Collision of Demographics, Automation and Inequality

Warning. This report from Bain is not something to embark upon if you only have a couple of mins. It is long and detailed and it makes you think. Those words aren't code for saying it is boring. It is anything but that. It is terrifying.

Forecasting a decade out is mighty difficult but the waves of change that Bain's report discusses are not fanciful or trendy concepts. They are heavy duty economic and social changes and they aren't going away. The difficulty for Bain is drawing conclusions from combining these trends. That's the hard bit.

I have selected a few items from the report for you to consider.

First the importance and the eventual end of consumer spending growth generated by baby boomers
Baby boomer spending growth will peak in the 2020s before tapering. Compared with previous generations, baby boomers will extend the period of high-income earning and spending by about 10 years. The sheer size of this generation means there are considerable market opportunities for most goods and services, including big-ticket items such as housing and transportation. But growth based on this demographic shift will become more concentrated among the top 20% of households.
Take note of the final sentence "concentrated among the top 20% of households". OK, here is what that means in marketing-speak. You have to have a refined, no an ultra-refined, marketing strategy to target this group.

The next chart is mighty interesting and it raised an issue I have never considered. That means you almost certainly haven't considered it.
Bain has combined the direct consumption of older people with 'subsidised consumption' to calculate a total household consumption figure. That is a genuinely new way of presenting the data. Not only is it new, but it makes a lot of sense. So when you look at an oldie you see somebody who is spending they own income/wealth and the state's wealth.

The final chart shows the way that people aged 75+ have increased their household expenditure since 1984 and what has accounted for the growth. Think to yourself - has your business been able to capture any of this consumption growth?

It is going to take me sometime to understand all the implications of Bain's insights. I really do suggest you spend some time getting to grips with what they have to say. Dick Stroud