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The Big Grandparent Market
Baby Boomers are doing it again
by Richard Gottlieb
That big Baby Boom generation continues to move through its time in history like a large meal through a boa constrictor. Itâs big and itâs conspicuous.
A Houston Chronicle article entitled, "Toy sellers know who has the money: baby boomers," reported on the results of an AARP study on how grandparents spend their money. According to the study, grandparents account for 25% of all toy sales. If thatâs not enough to get our attention, grandparents control 70% of the nationâs wealth.
You would think that in our industry, grandparents would be top of mind. Yet, instead, we talk about grandparents as an after thought. We say: âParents are the gatekeeper of this item . . . and â¦oh yeah, grandparents are too.â We speak about marketing to grandparents but more as a secondary thought. Certainly not to the degree that they consume our industryâs products.
What would happen, however, if we made grandparents a primary focus in addition to parents? That would mean that we would:
- Actually put them on the cover of the package playing with the child.
- Create products, like dolls, that look like grandparents.
- Create brands or products that use âGrandparentâ or some other name iteration.
- Advertise on television channels that grandparents watch and in magazines that they read.
- Speak to their values.
To get started we will want to consider what grandparents think is important in a toy. After all, grandparents may actually make more choices without a child present then parents because grandparents are still, at least in most cases, not custodial. They are typically in the store, by themselves, making a choice for the child they love and whose intelligence and values they want to impact.
So what kind of toys do grandparents want to buy? Well, according to the Houston Chronicle article, Boomer grandparents are interested in three kinds of toys: ââ¦learning toys, including those that foster creativity in art and music; nostalgic toys such as Fisher-Price's Chatter Telephone and Snoopy Sniffer pull toy; and new electronics such as the Kid- Tough Digital Camera, enabling kids to stay in touch with out-of- town grandparents via e-mail photos.â
This mix is interesting in its blend of high and low tech. In either case I believe that what these products have in common is their appeal to grandparents who have a strong desire to connect with their grandchildren. Their grandchildren live in what appears to be a dangerous and frequently bewildering world.
I suggest that the purchase of the low tech products is driven by a mix of three components: values, distance and nostalgia. These grandparents want their grandchildren to have the toys that they and their own children loved and valued. They want to reach out and imprint their value systems. In short, they want their grandchildren to live in the world in which they lived. Safer. . At least in memory.
It does seem ironic that this same group of grandparents also purchases high tech toys. Maybe not so ironic when you consider that grandparents often live far away and, if they live close by, donât get to see much of grandchildren who live busy, heavily structured lives. This grandparent generation is computer literate so the internet, email, cell phones and other modern technology are now the easiest way for the âBaby Boomerâ generation to reach âGeneration Nextâ and beyond.
So, letâs say we acknowledge that grandparents buy a whole lot of toys and they do it as a means of connecting and imprinting values. Why then are they invisible on our packaging? Why then are there no toys that actually emulate grandparents? In fact, why are there no toys that look like grandparents?
Well, actually, there are. It is the surprisingly successful âAbuelitaâ dolls that are breaking out in the Hispanic market. These dolls, âPanchoâ the grandfather, âRosaâ the grandmother, and âAndreaâ, the baby are soft, look like traditional grandparents (they even have grey hair), and sing lullabies.
According to Kathy Boccellaâs article âBilingual playthings: Muy grande businessâ that appeared in the November 5, 2006 Philadelphia Inquirer, these soft, singing dolls started out in 60 Wal-Mart Florida stores as part of an initiative by Wal-Mart to gain more diversity in its suppliers. Says Boccella: âThey [the âAbuelitaâ dolls] are now in 335 Wal-Marts and about 380 Toys R Us and Target locations, more than 50,000 of the dolls are expected to be soldâ¦â in 2006.
Granted that the Hispanic population pays more deference to its senior family members, but might there not be a market in the non-Hispanic population to try something similar? Wouldnât it be cool for a grandparent to be able to buy a toy for their grandchild that looks like . . . well . . . themselves!
Here are some ideas for how we can jumpstart the process of growing this huge and largely untapped market:
- An enterprising toy company could come out with a line of grandparent toys. Toys that expressed the values and the faces of the boomer generation. How about a plush character that looked like a cuddly grandparent instead of a teddy bear.
- Brand the toys with a name that speaks to grandparents. It could be anything from the obvious like âGrandparent Toysâ, edgy like âGeezer Toys,â weirdly nostalgic like âMr. Naturalâ or mundane like âGrannyâ or âGrandpa.â Whatever is chosen, the brand should speak directly to the market.
- Manufacturers can do focus groups on grandparents and find out what products they want to buy and, as importantly, find out where they want to buy them. We may all be surprised.
- Manufacturers can also consider regional marketing campaigns in areas where grandparents reside in the greatest numbers. Florida, Arizona and North Carolina would seem to be strong candidates.
None of this works, however, unless retailers get on board. They need to merchandise and promote to grandparents. Even set up special sections. By doing so they can let them know that they want their business and that have the toys they want to purchase.
Retailers can also make themselves a destination for grandparents by providing extra services. Why not offer on location packaging and shipping for grandparents who live far away from their grandchildren and need to mail the toys?
How about being grandparent friendly in making recommendations for toys that grandchildren will enjoy and grandparents will understand? Maybe even explain technology and jargon for toys that require some sophistication to use or understand.
Here is the bottom line. If we as an industry expend a little energy and reach out we can grow a market that has dollars to spend and wants to spend them on their grandchildren. Imagine if we grew that $500 per child by a mere 10%. Imagine that.
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