Pitching to the over-50s is a tricky pursuit

By CARROLL du CHATEAU

Remember the woman in the Telecom ad, who breaks out of an ardent embrace with her lover to lead a teleconference on her laptop? She's beautiful, if slightly wrinkled. He's devoted enough to paint her toenails while she squirms through the meeting. Their beach house overlooks a glorious coastline. The advertising catchline: "Stay in Touch."

Such marketing, aimed at fit, free and financially loaded people in their 50s, is trying to hit a very profitable target.

People in their "second adolescence" are independent again. After decades of supporting children and ageing parents, for those lucky enough to make it past 50 in reasonably good physical and financial shape, the world unrolls its opportunities.

Fifties means freedom. Suddenly you can decide to eat out when you feel like it, dash off for the weekend (or a week if you have the technology) without asking permission of anyone but the cat.

Sandy Burgham, a strategist specialising in consumer trends and behaviour, explains: "For years, marketers and ad agencies, pushed by pubescent copywriters, have been obsessed by 18- to 49-year-olds.

"What they're now missing out on are the baby boomers. They're probably the wealthiest group in history. And they're real high spenders. Their own parents are possibly leaving them some inheritance money, they've already got their houses, their kids are off their hands ... "

And how many are out there? Burgham estimates "about a million altogether."

The fat end of the boomer slice is already passing through its 50s, with 468,900, or 12.3 per cent of New Zealanders, aged between 50 and 60. By 2006 the group will grow to 541,500, while in 10 years, 14.6 per cent of the population will hit the 50-60 niche.

Stephen Pearson, of Lowe Lintas, the advertising agency that dreamed up for SIS Insurance the Third Age concept focusing on 50-pluses, explains that marketing to this group is tricky.

"It's hard to win these early boomers without insulting and patronising them," he says. Even more than previous generations, they see themselves as a decade-and-a-half younger than they really are, something Pearson describes as an "automatic age discount."

So using phrases like "Golden Age" (which implies the sunset years) is a turnoff. "That sort of label could be subtitled 'don't read this' for boomers."

Finding the right marketing angle has paid off for SIS, which has moved from scratch to "number four or five in the country" over the past 12 years. Explains CEO Martin Fox: "We've concentrated on this group of people [50-pluses] since the late-80s. By pooling the risk of like people, we can offer a very good deal."

The company's other strategy is to offer appropriate service. "When people ring us, they deal with people who have had a lot of training in making clients feel comfortable," says Fox. "You've got to have both - premiums that mean people often save money by joining, and empathy so clients can ask questions and get an honest answer."

A large part of the marketing effort, of course, cashes in on keeping the over-50s feeling 15 years younger and ready for action. The health food market is huge, with $80.7 million worth sold through supermarkets and pharmacies and an estimated $39 million sales either direct or through health food stores.

Every six weeks Tom Bleier, marketing director of Health2000, sends out 370,000 copies of newyou, a slickly presented supplement peddling health foods and dietary supplements. Five of the 12 products advertised are aimed specifically at the 50-plus market and eight are for young and old alike.

"Hey, these people are active a lot longer [than their parents were]," says Bleier. "Many have joint problems, a lot of guys are finding sexual function harder. And when we put sexual stimulation products on the market, the women's product, HerbalX, outsold the men's Tribulus Complex."

Bleier, who estimates that 70 per cent of the adult population have taken or take dietary supplements, points out that this age group will fight - and pay - to keep fit and active.

"Our industry is the wellness-maintenance business. Basically we're trying to boost the body's immune system. For example, Glucosamine helps joints and slows down the process of deterioration," he says.

And what does the 50-plus marketer take himself? "A multivitamin, an antioxidant - pine bark - and a garlic pill, too."

Alison Quesnel, of Blackmores, which sells around $7 million worth of dietary supplements a year, confirms that the baby-boomer market is huge. "Over a quarter of the regular supplement-users are women over 50," she says. "We were all hippies and we're naturally interested in our health from a holistic view."

Possibly because of the 15-year "discount" this age group generally gives itself, Blackmores does not market specifically to boomers. "People want to self-medicate. We provide an award-winning website with an online naturopath [www.blackmoresnz.co.nz] so people can check products themselves," says Quesnel.

On the other hand, Thompson's Nutrition joined the marketing rush three weeks ago with 3rd Age Senior Multi. Outgoing sales manager Bob Wells says so far the response from the company's 1000 retailers has been good.

Health supplements aside, experts such as Lowe Lintas' Pearson, suggest marketers should woo 50-pluses with extreme subtlety. For example, SIS lures boomers into buying insurance policies with believable, super-healthy icons like Peter Snell, by giving them accolades ("you're the group that put a man on the moon") and selling them the idea that the Third Age is about a great time of life, to be lived to the fullest but with appropriate safety nets under the bungy.

Dame Susan Devoy, who can't be more than 38, has recently joined the testimonial business, giving her name and sprightly image to Centrum Select 50+, a vitamin mineral mix "specially adjusted to meet the changing nutritional needs of men and women over 50" which, according to the blurb, means increasing most things but reducing the levels of vitamins B1, H, K1 and phosphorous.

Says Pearson: "You have to let boomers see themselves as young, therefore giving them permission to read this stuff. It's hard to put together a message that they'll really, truly identify with without stepping over the line and becoming insulting."

Only when they are satisfied that the product is for them, and not, presumably, someone they identify as 15 years older, can advertisers move on to delivering the conventional message - which, to clinch the deal, must satisfy a super-selective group that they are getting good value and personal service. "Only then will 50-pluses take action," says Pearson.

Another characteristic is this group's appetite for experiences rather than things. Fifty-pluses are more into fun, exhilaration, cooking, travel - preferably with a hint of nostalgia - than Gucci handbags.

They also tend to be more comfortable with who they are, willing to drop what philosopher Carl Jung described as their masks, in favour of honest relationships and a sense of deep and enduring meaning.

A birthday invitation reads: "Welcome to the Third Age," then (under a photo of a baby in booties) 1-30 education; (under a photo of birthday boy struggling with two huge buckets) 30-60 work/responsibility. The final pic shows a naked 60-year-old dancing in the surf. Caption, 60+ Indulgence. And at the bottom of the page, "No prezzies please. Those of the Third Age appreciate good company, food and wine - a favourite plate or bottle of wine would be most welcome."

Which is where Ena Hutchinson of MoaTrek comes in. The company markets Decidedly Different tours of New Zealand to travellers over 40 (make that 55 with the "age discount").

She says the third age is a magic time of life. "People are travelling like crazy in their 50s. They have the money and they have the attitude. Our tours target people's obsessions - golf, trout fishing, gardens, food and wine, wilderness experiences, mild sorts of adventures.

"Most people come from the United States and Britain, and when they get here they're really enthusiastic, keen to have fun."

After two years in business, MoaTrek offers Wine and Food Lovers' Odysseys, plus South Island, North Island and all New Zealand trips, on which travellers stay and dine with the owners at high-country sheep stations, gain entry to private gardens, vineyards and remote lodges accessible only by launch in the Marlborough Sounds.

"Marketing to baby boomers means clicking into what they're interested in. They love food, wine, people, being part of an intimate experience," says Hutchinson.

"Our clients are like grown-up, free and independent travellers in attitude, but just don't want to have to deal with driving on the wrong side of the road, or spend days finding the off-the-beaten-track places we visit.

"They like 16-seater mini-buses where they can stretch their knees." And yes, bookings for this summer are filling fast.

The list of people trying to milk the 50-plus potential cash cow is growing. The $1 billion retirement village industry is also setting its sights at 50-plus boomers, but with little effect so far, say marketers.

"We've one couple in their late-50s coming," says Christine Fowler of the Peninsula Club retirement village, five minutes from Red Beach on Whangaparaoa Peninsula. "But generally people think they're too young to come in that age."

So why market to the 50-plus group? To encourage people while they're still young enough to enjoy the facilities - heated pool, spas, bowling greens - and presumably to chip away at that delusional age barrier.

James Jordan, who sells Maygrove Village for Hopper Developments (of Pauanui and Whitianga waterways fame) says the word "retirement" is omitted from all marketing for the new village, based just behind Orewa township.

The complex centres on a "spectacular" five-level main building, with a four-level, glass-ceilinged atrium which "is as cool as hotels in downtown Auckland," Jordan says.

And already, with not even a display unit started, he has fielded more than 300 phone calls and sold 10 units and five houses off the plans. Why the stampede? It is those same factors that hook 50-pluses every time. Security, sparkling new large homes and units, five minutes from the beach, views and a developer they trust.

Edward Richards of the Retirement Villages Association believes people buy a lifestyle when they move into a retirement village. And those who take the village option will soon be protected by new legislation going through Parliament.

Then there is the second Golden Age Lifestyle Expo to be held at Greenlane from November 2-4, which talks about "the power of the silver dollar."

Organisers are filling the centre's 150-odd display spaces with products from retirement villages, financial and investment services, gyms, motor-cycle and walking clubs, Aussie Outback and Puhoi kayaking tours.

Salesperson Margaret Fish says the group is huge. "People are living healthier, longer. They've got more time to relax and they make better use of their time. That's what it's all about.

"In America they have started 100 clubs for people over 100 - and they're as fit as. If you're lucky and look after yourself, you can have a wonderful time. As the baby boomers come on stream between now and 2008, this will turn into a truly big show - it'll be like the Food Show, which put through 25,000 people in just three days."

The Golden Age selling team is obviously not worried about insulting the self-deluding over-50s.

And Fish points out the Expo is not all about money, but offers information on everything from tramping clubs to women's clubs.

As she says, Auckland, with its bracelet of beaches, studded with parks and volcanoes, is a wonderful place to explore, even if you are hard up.

The "hard up" scenario is, of course, the depressing side of the 50-plus picture. For those who retire with a relatively healthy savings plan, the Third Age should be as wonderful as the marketers like to paint it.

But for the bulk of people who spent as they went along, the future could be grim. Stephen Pearson points out that many baby boomers have lived relatively hedonistic lives. Most are lousy savers and they will find it tough to scale their lifestyles to national superannuation levels.

As usual, the baby boomers will probably find a way to enjoy every age, including the Third. Money Managers, an investment advice franchise operation working the 50-plus niche, ran 11 free seminars in Auckland, hooking in between 20 and 50 people a session - some as young as 45.

The message: avoid outliving your money; protect your standard of living in retirement; consider new tax-efficient investments to retire on. Adviser Guy Rowlands says many people are asset-rich and cash-poor when they retire.

"In Auckland especially, many have a considerable amount of money tied up in their houses.

"Our advice usually is to diversify investments, which is more prudent than relying on the residential real estate market to be the sole provider of retirement income. Who knows what the property market will be like in 20 years' time?"

For those who do want to cling on to their homes, there are always reverse annuity mortgages offered by SAI Life, which allow people to live in their homes until death while receiving monthly payments from the company.

SAI is predicting a boom in sales as the boomers see retirement on their radar. Under this sort of scheme the assurance company makes its money out of the value of the home on a mortgage basis, boomers get to keep the lifestyle - and their kids miss some of their inheritance.

Then there's the far less attractive option of working (rather than shopping) till they drop to finance the kind of comfort boomers have become accustomed to.

"Visiting the States, it's always struck me that waiters are often 60-plus and old people are sweeping the streets," says 48-year-old Stephen Pearson. "You've got to believe that's round the corner for us. I must say my fear of living between 60 and 85 on $30,000 a year keeps me focused."