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Johannesburg - Forget the youth market. According the latest UCT Unilever Institute of Strategic Marketing study, middle-aged and older consumers are now the most desirable psychographic segment.
What the research refers to as Prime-Timers are affluent whites, coloureds and Asians aged 40-plus. This is a financially secure market making up 6% of the population but responsible for almost 20% of consumer spend. Yet they feel marginalised by marketers as they are not directly spoken to.
The study revealed that they are handling the recession best. At a time when brand loyalty is tumbling generally, this segment still values brands, but they are drawn in by the purchasing experience rather than the image.
Prime-Timers are growing in numbers and strength, and their high financial flexibility has been proven again with this study. The new research identifies six demographic segments, and gives them new labels: Strugglers, Youth, Pre-Family, Young Family, Older Black Middle Class, and Prime-Timers.
The Black Middle Class is also faring well. They still have the money and are not as overwhelmed by debt as earlier studies showed. They may be unwilling to really downgrade but financial consolidation now ranks high on the agenda. For this reason, products that enable future investments have become essential.
Value and quality need to be reinforced as self and brand image are important. Groups adversely affected are the Strugglers and Young Family. Both register significant changes to lifestyle and shopping habits.
The Strugglers are resourceful shoppers searching for lower prices, smaller packages and payment options. For the consumer who has little or nothing left after paying the bills, marketers are advised "inspire confidence" by showing how they can help them cope better.
Young Families are all about the children, so family values reign supreme. Black parents are striving to maintain a better lifestyle than they used to enjoy. The other groups are downgrading as a unit, but whites are most depressed about this.
However, they are unwilling to part with cellphones, Dstv and internet, so pay as you go options are increasingly favoured over contracts. The Youth are also looking for ways to make keeping in touch more affordable. Cheaper airtime vouchers and MXit are proving popular.
Although 96% are worried about finding employment they don't want messages that sympathise. They want product information so that they can make decisions on the value they get. The trick here is providing the information through a trusted source, because it is more about who says it than what is said.
The Pre-family are most worried about losing their jobs but they are willing to sacrifice other areas such as savings to maintain their lifestyle. Brand loyalty remains high but outlets have shifted to factories that promise lower prices. They are not totally reckless as reliance on credit has decreased, with debit cards being favoured.
Most of the respondents across the groups are experiencing the recession- 76% feel it will get worse and 65% are spending more responsibly. The urban study covers half of the population, accounting for 88% of spend.
- Fin24.com
