Marketing Strategies for Aging Baby Boomers

This assignment delves into the marketing implications of an aging population, focusing specifically on the Baby Boomer generation. It examines how demographic shifts influence consumer behavior and provides insights into industries that stand to benefit from this trend. The analysis emphasizes the importance of understanding the needs and preferences of older consumers and developing targeted marketing strategies to cater to them.

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MARKETING AND ENTREPRENEURSHIP
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Executive summary
Marketing is a primary activity in operations of every business organization. Successful
marketing demands for the adoption of the best marketing strategies to reach the market
effectively. This paper discusses two activities related to marketing. Firstly, the report discusses
segmentation strategy in FMCG companies and establishes the level of effectiveness in the
adoption of this approach by the organizations. Then, in the second activity, the assignment
paper discusses how the demographic factors affect international trade. Further, the report
discusses the industries that are likely to benefit from baby boomers. Thus, the paper is critical in
helping in understanding the marketing strategies both at the local level and at the international
market.

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Table of Contents
Segmentation in FCMG Companies................................................................................................4
How Demographic Factors affect International Marketing.............................................................6
Increase in diversity.....................................................................................................................6
The aging population and millennial generation..........................................................................6
Population growth........................................................................................................................7
Industries Set To Benefit From Ageing Baby Boomers..................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Segmentation in FCMG Companies
The three websites of fast moving consumer goods that are going to be discussed in this
activity are Fonterra, Coca-Cola, and Parmalat. Fonterra Company deals with dairy nutrition.
Australia is its largest market, but it has also expanded to Brazil, China, Indonesia, New Zealand
and Malaysia. Coca-Cola Company deals in beverages. The Company has the market all over the
world, and it is known by many customers as a leading beverage company in the world. The
Parmalat Company deals with milk products and fruit based drinks. It has marketed its products
in some countries in the world.
In the two companies Fonterra and Parmalat, there is an evidence of segmented approach.
The segmented approach is mostly exhibited in Fonterra as it mainly targets Australia customers.
The company has focused on the geographical region and considers Australia because it is where
it is based, and therefore, the organization enjoys the degree of loyalty to Australia than those of
other countries. Parmalat also has evidence of both segmented approach and mass marketing in
its areas of operation. Coca-Cola Company has evidence of mass marketing because it has a wide
variety of Audience (Sismeiro, Mizik and Bucklin, 2008, pp. 63-92).
To compare the three companies, Coca-Cola Company is the one that has best
implemented the market segmentation strategy. It has divided its market basing on the needs of
most customers among other factors (Pride and Ferrell, 2014). The products of this company
cover all kinds of consumer demographic issues. Parmalat comes second as it has also covered a
larger region compared to Fonterra. Fonterra has mostly based on the consumers' geographical
area. The Fonterra Company considers that those people who can have easy access to their

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products give them a high degree of loyalty. Unlike Fonterra, Coca-Cola does not consider this
but rather distributes the products to the whole word.
The three companies could segment their companies further by considering the socio-
economic class. The companies could produce products that target a broad range of
socioeconomic groups. This can be done by packaging smaller quantities for everybody to be
able to buy. Another aspect they should consider is a lifestyle (Kotler and Keller, 2012). People’s
lifestyles vary and therefore the companies should find a way of marketing that considers the
different lifestyles. The companies should know that people are motivated to buy products for
different reasons. The companies should ensure that they have different shapes and color of
packaging to attract many customers, for example, most women love pink color while men
despise it. Gender and age should be a basic consideration for them to be able to segment their
market further. Produce different products for different gender and age of people.
In conclusion, therefore, for any company to carry out marketing, they should consider
how far they want to distribute their products. This can help a company to carry out mass
marketing or look for the segmented approach. Even when going for mass marketing the
companies should consider segmenting the population to ways that are appropriate to carry out
marketing because different countries have their ways of carrying out businesses (Cameron,
2014, pp. 22-27). The cultures of different people should be considered so that they are not
offended.

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How Demographic Factors affect International Marketing
Increase in diversity
An increase in diversity is one of the demographic trends that are affecting opportunities
for international marketing. The changing face of the world also marks the changing face of
businesses industries. Currently, the world has become more diverse, and these have led to
opportunities. More women have risen to ranks of leadership, and there are more cultural
changes because people are adapting to new ways (Steven and Britt, 2008). For people that are
coming up with new products and services, they can now market internationally as they can
interact easily. The baby boomers are also stepping down leaving generation x to take their
place. Therefore industries dealing with aging people like health industry gets more customers
(Jansen, Moore, and Carmen, 2013, pp. 286-302).
The aging population and millennial generation
The changing age structure is another demographic trend. The aging population highly
affects the opportunities for international marketing. It has created enormous opportunities for
the products and services catering for the elderly, for example, the financial services and leisure
activities get a good number of customers and therefore more products and services rendered
(Chacon and Mason, 2011, pp. 271-290). This also affects international marketing negatively
because business people will have to start looking for skilled and productive labor and this
reduces the resources. Goods and services offered to the millennial generations rely on constant
digital communications, therefore, a high market for those dealing with telecommunications
(Charles, 2012).

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Population growth
An increase in the population is another factor that positively affects international
marketing. Population growth is both size and age leads to provision of more products and
services for a longer period. An increased population of the elderly mostly has an impact on
health care services. For example, the health care technology, therefore, gets more customers
increasing international marketing. It is an opportunity for business people and innovators to
develop new products that can address challenges facing the older generation and the young
generation (Rugman and Collinson, 2008).
Industries Set To Benefit From Ageing Baby Boomers
The baby boomers need more attention to their lifestyle. The health care industries
benefit the most as they have issues with their health that need to be addressed. The skin care
industries are also beneficiaries as the baby boomers like to lessen their wrinkles and also
improve the firmness of their skin (Teixeira, Koufteros and Peng, 2012, pp. 69-81). The travel
insurance industry is also likely to benefit because older people like to travel to have leisure and
they want their lives to be insured. Pilates and Yoga studio industries are also beneficiaries of the
aging baby boomers. When they baby boomers retire, they dedicate more of their time to
physical fitness to gain strength and flexibility.
Conclusion
In conclusion, therefore, marketers should observe the current demographical trends, for
example, the aging population and diversity to know their target customers and the products and
services they want. The baby boomers are currently the aging population, and therefore
innovators should take that advantage to come up with products that satisfy their needs. The

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innovators should understand that baby boomers are not only the fast growing population but
also the wealthiest, for this reason after retirement they want recreational services that innovators
should work towards to satisfy them.

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References
Cameron, B. (2014). Management. Strategic Leadership Review, pp. 22-27.
Chacon and Mason (2011). An Analysis of the Relationship between the Passenger Loyalty and
Consumer Buying Behaviour for Network and Low-Cost Carriers. Transportation Journal, pp.
271-290.
Charles L. (2012). Essentials of Marketing (7th Ed.). Mason, OH: South-Western Cengage
Learning.
Jansen, B., Moore, K. and Carmen, S. (2013). "Evaluating the Performance of Demographic
Targeting Using Gender in Sponsored Search." Information Processing and Management, pp.
286-302.
Kotler, P. and Keller, L. (2012). Marketing Management (14th Ed.), Upper Saddle River: Pearson
Prentice Hall.
Pride, W. and Ferrell C. (2014). Marketing (17th Ed.) Mason: Cengage Learning
Rugman, A. and Collinson, S. (2008). International Business, Financial Times Prentice Hall
Sismeiro, C., Mizik, N. and Bucklin, R. (2008). A New Dynamics-based Segmentation Approach
for Maximizing Long-term Marketing Impact. Marketing Science Institute Reports, Issue 2,
Report No. 08-109, pp. 63-92.
Steven M. and Britt, W. (2008). Organizational Psychology, Scientist-Practitioner Approach,
John Wiley, and Sons.
Teixeira, R., Koufteros, X. and Peng, D. (2012). ." Journal of Operations and Supply Chain
Management, pp. 69-81.

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