Third Age
Essay Preview: Third Age
Report this essay
The third age contemplates huge and attractive opportunities to companies willing to innovate and renovate products, processes and services, in order to captivate a larger market.
Any company needs to develop this items to be different from others.
Portugal, like Europe, is getting old and is facing significantly changes in the demography of its population, due to the reduction of mortality as well the reduction of birth-rate. We can also observe an increasing proportion of the “older people”. The aging of Portuguese population is being accompanied by important changes connected with the development of new technologies, increasing scholarity, changes in family relations, and universalization of social security, better health level. All this factors, together, improved quality of life of third age.
Also important is the fact that this generation contribute to a different social-economic configuration, changing the modus vivendi of their parents, trying to build an alternative society, keen to the consume.
Huge economic groups donÒt loose good business opportunities. And what other market offers growing rates so secure as the third age? For example, Caixa Geral de Depуsitos, Grupo Mello and Espнrito Santo are already exploring the market of “senior residence” . This work scenario is based in the projection of INE ( Instituto Nacional de Estatнstica ), where we can observe that in 2050 the “aged people” will represent 30% of population, twice than in last rate from 2000.
Consumer wants and abilities change with age. Toothpaste brands such as Crest and Colgate offer three main lines of products to target kids, adults, and older consumers. Age segmentation can be even more refined. Nevertheless, age and life style can be tricky variables. In some cases, the target market for products can be the psychologically young. For example, Honda tried to target 21-year-olds with its boxy Element, which company officials described as a ” dorm room on wheels”. So many baby boomers were attracted to the car`s ads depicting sexy college kids partying near the car at a beach, however, that the average age of buyers turned out to be 42! Nostalgia can also play a role. Chrysler had a young target market in mind for the PT Cruiser, but found that lots of older consumers were reminded of hot rods from their youth. Toyota has been more successful with its younger pitch for Scion.
Generation- Each generation is profoundly influenced by the times in which it grows up- the music, movies, politics, and defining events of that period. Demographers call these groups cohorts. Members of a cohort share the same major cultural, political, and economic experiences. They have similar outlooks and values. Marketeers often advertise to a cohort group by using the icons and images prominent in their experiences. In our case we may remind The Gl generation (16 million people), born 1901-1924, shaped by hard times and the Great Depression, financial security is one of their core values. Conservative spenders and civic-minders, they are team-oriented and patriotic; and Silent Generation (1925-1945), trusting conformists who value stability, they are now involved in civic life and extended families; and already pointed by us Baby Boomers (78 millions), born 1946-1964, great acquisitors, they are value- and cause-driven despite indulgences and hedonism.
Returning to the Portuguese example ( Caixa, Grupo Mello e Espнrito Santo ), the target of this Groups is not old people with a pension of 300 Euro but the middle-high class, Portuguese or from north-Europe countries, willing to travel to the south to meet sun, securance and, above all, lower prices for buying apartments or renting. However, the average price per month of 1000 Euro.
Attractivity of Portuguese sun is , as a matter of fact, the reason driving Carlton Life ( Society between Caixa Geral and Grupo