When
we’re not contributing to society in other super-meaningful ways, my business
partner Bob Hoffman & I consult to advertisers and the media on the
importance of marketing to the 50+ consumer. This is a lot harder than it should
be.
Don’t
get me wrong, nobody argues with the facts. People over 50 control about 70% of
the wealth in the U.S., we are responsible for about half of all consumer
spending, and we dominate 94% of CPG categories. But who needs facts when you have fairy tales to keep you warm?
One of the
most popular marketing fairy tales we hear is that if you want to sell cars, you have
to target young. Forget that people over 50 buy 62% of all new cars. If you’re
not targeting young, you’re old. I saw a great example of this recently.
“Cadillac
still suffers from more of an older demographic,” declared Jessica Caldwell,
senior analyst with Edmunds.com. She was quoted in a NY Times article reporting
Cadillac’s intention to up its luxury game by adding a new, larger sedan to
its lineup.
Cadillac
no doubt suffers from a great many things (forgettable, unsexy products for
example), but an older demographic just ain’t one of ‘em. Especially as they
look to secure a place in the “elite class of top-level luxury cars,” as
Cadillac’s president Johan de Nysschen claims.
Here’s
some news you might want to consider, Ms. Senior Analyst. The average age of a buyer
of BMW, Porsche, Maserati, Tesla, Ferrari, Mercedes-Benz, Rolls Royce, Lexus,
Bentley and every other top-level luxury car you can name is over 50.
But
fairy tales have power. Especially when propagated by “industry experts” who
really should know better.
Why am I not surprised? Just visited my home state CA. Every car you mention is driven by one of my friends, all of whom are 60+. My sons, 26 & 27 cannot afford any of these cars. Why? They don't make enpough $$
ReplyDeleteIt's crazy that car companies don't get it. But they don't.
DeleteIt's crazy that almost no one gets it!
ReplyDelete