Age is just a number.
Well, I beg to differ because, in today’s time, it is more than that.
It’s a cohort that shares preferences, beliefs, needs, and life experiences.
Businesses have adopted this market segmentation form (age segmentation) to build brands that target and align with the people of the age group.
Examples: Bewakoof and Spotify (targets Gen Z and millennials), Abercombie and Fitch (targets teenagers and young adults), LEGO (targets children), and many more.
We studied them on factors such as their spending and decision-making power and characteristics (brand and buying).
We hope this blog helps you unbox some valuable insights on various age segments to boost your branding efforts.
Children – The Little Loyals
Spending Power: They are in the stage where they don’t understand/ aren’t aware of concepts such as money.
But they can comprehend what buying is to some extent.
Decision-Making Power: They are not the decision-makers, nor do they verbally influence anyone.
Their reactions, liking, and behaviour influence their parent’s decisions.
In short, they don’t express what they want with words but through their actions.
- They have no affinity towards any brand or product (in most cases).
- Firms don’t/ can’t target them directly, but brands build themselves around these toddlers’ interests and actions (to hook their parents).
- They watch TV and YouTube videos from creators (nowadays).
They might like an Ad but can’t differentiate between what’s promotional and what’s not.
Children – The Fans
Spending Power: They have not yet reached the stage where they can earn and spend.
Decision-Making Power: They are not the decision-makers. Their parents are.
They are consumers who can influence a parent’s choice (of brand or product).
A mother will only buy chocolate powder for milk instead of strawberry or choose one brand over the other based on the child’s liking.
- They have exposure to channels like TV. They are likely to be drawn by creative ads and movies and want to have the same product.
- They observe their parents, teachers, and friends and be like them (in terms of values and interests).
Teenagers – The Trend-Setters
Spending Power: They do have money to spend (pocket money), but it is not comparable to the older age groups.
Decision-Making Power: Parents still know and have a say in their decisions.
- In some cases, they can choose on their own (buying a low-price, low-risk good).
- In others, they are the influencers (while purchasing a high-price, high-risk product).
- They are the main leads while deciding the brand and aesthetic factors like design (what to buy).
They can’t choose alone when it comes to where to buy, when, and how much to spend.
- They go online to find new brands and products, see what people they adore (following influencers), think about these products, form opinions and sometimes make decisions.
- They are brand conscious (due to peer pressure), but they are yet to be truly loyal to any brands.
Their preferences and personality are still taking shape.
- They want to interact with brands and contribute to creation (co-creation) and promotion (user-generated content) activities.
Youth – The Transitioners
Spending Power: They earn and spend on their own and are willing to try new things and brands.
Decision-Making Power: They hold complete control over their decisions.
The age group falls between teens and adults.
- People here look for the best value for their money (but they are not as price sensitive as adults).
- They listen to the opinions of the people around them (but the extent to which it influences their choices is lesser than teens).
- They are loyal to some brands (as they have grown up with them).
- They are brand conscious, but now at the same time, they become a bit thrifty about spending on them.
Hence, they’re looking for a win-win situation where they get high-quality and high-aesthetic products at prices that please their pockets.
In short, the best value for money.
- They shop for the experience and want the same when they buy online.
- They enjoy shopping online due to its ease and options.
- This age group loves to engage with the online world through social media.
Adults – Decision Makers
Spending Power: They earn and can spend more than the younger age groups.
Decision-Making Power: They make decisions, but they do think about the impact their choices will have on the people they are close to (also influenced by them).
They are thrifty as they want to save money for life occasions: getting married, starting a family, buying a house, or starting a business.
- They willingly spend more on things and brands that align with their values and interests.
- They want to know a brand inside-out and would love it if you take them behind the scenes and show them how you do what you do, share why you do it, and show them the people who help you do it.
- They research and weigh options to choose what, when, where, and how to spend to buy.
- They are also quite comfortable with taking calculated risks.
Golden Years: The New 20s
Age: 50 and above
Spending Power: They have savings from all the years they have worked to earn.
Some still work, and some have retired and now get pensions.
Decision-Making Power: They’re both decision-makers (when it comes to buying products for their needs) and influencers (when they have to guide their close ones to make a choice).
- They don’t frequently change brands as they have developed a habit and sense of comfort with the ones they have used for some time.
But factors such as affordability, availability, and more valuable benefits may make them take the step to switch.
- They want to choose brands that align with their values and help them in every stage of their journey to make it easy (pre- and post-purchase).
- They shop both online and offline, but they prefer in-store shopping as it is more comfortable, and they don’t have to ask others for help.
- They appreciate quick customer service and buy from brands that make the buying experience fun and easy.
Of course, how these age groups behave will also change with the events in the market and society.
You can and should always try to enhance this picture through surveys and focus groups and help you get a deep dive into their nature.
You can book a free Consultation session with us if you wish to know which group your target audience belongs to and their nature.