Strageties For Capturing The Boomer Opportunity: kasina study

NEW YORK, December 18, 2005 – Though the Baby Boom generation accounts for more than 25 percent of the U.S. population and controls roughly 70 percent of all investable assets, the vast majority of asset management firms still have not developed a Boomer-specific product and marketing strategy, according to “Strategies for Capturing the Boomer Opportunity,” a study by kasina, a leading consultant to the asset management industry.

“Our research indicates that nearly two out of three firms have not yet developed a comprehensive marketing and product strategy to capture Boomer dollars,” stated Malachi Black, Senior Business Analyst at kasina. “It’s not enough to just put a new wrapper on an existing product and say that you are addressing the needs of these investors. The firms that will be successful in winning business from Boomers as they age and enter retirement will be those that use the framework of Intelligent Distribution to develop products and marketing strategies geared towards the specific needs and desires of this generation.”

Beginning in 2011, a Baby Boomer will turn 65 every eight seconds, or roughly 11,000 daily and 4.5 million every year — the most dramatic demographic shift in American history. Recognizing this, asset management firms have stepped up their efforts to address the market opportunity, spending more than $5 billion on Boomer-related advertising in the first eight months of 2005, according to a recent article in The Wall Street Journal. Yet much of this money is likely to be misdirected if it is not supported by the development of Boomer-specific investment products and Intelligent Distribution techniques, according to kasina.

In its whitepaper, kasina provides a recommended course of action for addressing this challenge:

  • RESEARCH – Identify more meaningful information about specific Baby Boomer subgroups, as well as advisor populations, and leverage this data in targeted messaging and service initiatives. At present, just 20 percent of firms are engaged in researching the habits, financial needs, and behaviors, and expectations of retirement of the Baby Boomers, according to kasina.

  • SEGMENTATION – Eliminate “one-size-fits-all” marketing strategies, and replace them with market segmentation and targeted marketing strategies in order to appeal to the needs of profitable Boomer segments.

  • PRODUCT DEVELOPMENT – This Link Boomers’ retirement needs to applicable older products. Develop new products based on the values, behavior patterns, and income needs of this group.

  • MESSAGING – Shift from mass market messaging to a more targeted approach by educating advisors about how best to connect with the age-defining experiences and interests of the Baby Boomers and by reaching out to retail audiences directly.

�Demographers agree that there are a number of characteristics that make the Boomer generation unique,” said Black. “They plan to be more active in their retirement. They are less likely to be covered by a traditional defined benefit plan. Income from Social Security will play a smaller role for them than it did for their parents. Finally, they can expect to live longer in retirement than any other generation in history. Successfully marketing to the Boomers will require taking all these elements into account, along with the group’s unique value set. Simply taking a product off the shelf and re-naming it won’t work. Furthermore, pushing messages through traditional channels will have less impact.�

The full kasina report �Strategies for Capturing the Boomer Opportunity,� is now available for purchase.

About kasina

kasina is a management consulting firm that is focused on helping financial services companies create intelligent relationships with their investors and intermediaries. By combining knowledge of distribution trends, technological innovations, and marketing strategies, kasina aids leading asset management firms with front-office efforts and publishes a regular schedule of cutting-edge industry research. kasina�s client list includes 18 of the 20 largest asset managers in the United States and leading firms in Canada, France, Germany, and the United Kingdom. Visit