MATURE CONSUMERS

Baruch Case
Challenge
 Executive Summary
Matures, comprising of Boomers and Seniors, today are a significant
demographics
Over 110 million, or 45% of all adults
Over $50 trillion in assets

Matures spend $2.5B on Oral and $2.8B in Home Care categories, or about
42% of all adults spending, although their per capita spending is lagging
younger generations

Colgates share of Matures business is smaller than overall Colgates share

in Oral Care, but larger than its overall share in Home Care
 Generation Segments Description

Generation Born at Influential Life Events

WWI , WWII, Korean war

Seniors (Greatest Great Depression
Generation) Before 1946 Cold War
Stock Market Crash

Civil rights movement

MLK & JFK Assassinations
Boomers 1946-1964 Nixon Resignation
Vietnam
Woodstock, Elvis
AIDS
MTV
Generation X 1965-1978 Personal computers
Global financial crisis

9/11, Columbine
War on Terror
Millennials
1979-1995 Climate change
(Generation Y)
Globalization of information
Internet, Social networking
 Matures will account for more than 38% (120mln) of US Population by
2020 present attractive growth opportunities for CP
Mature Consumers
28% in 2012 to 38%
in 2020

Source: Kantar Retail Analysis 2012

 Mature Consumer mix will change in 2025
Share of 50+ by Generation Cohort Share of 50+ by Age groups

100% 100%
100% 100%
0%

35% Gen X
-2 Pts
67% 67% 65% 50-68

Baby
53% Boomers

+2 Pts
33% 33% 35% 69+
12% Seniors

2013 2025 2013 2025

Source: US Census 2013 Estimate, 4i Projection

Boomers are a large and wealthy generation. Seniors are smaller,
but also have a sizable amount of wealth accumulated
Size and Wealth of Generations, 2010*

Size, Millions Wealth, Net Worth, $T*

74 76 32

57

19

35

5
2

Millennials Gen Xers Boomers Seniors Millennials Gen Xers Boomers Seniors

Source: U.S. Census Bureau; Federal Reserve Boards Survey of Consumer Finances; 4i analysis
* Data is for 2010/latest available from US Census
 Description of Colgates Product Categories

Category Includes Category Includes

Includes the following 4

Includes the following 4
categories: Toothpaste,
Oral Care (OC)
Mouthwash, Manual brush,
and Power brush
categories: All Purpose
Home Care (HC) Cleaners, Fabric Conditioners,
Light Duty and Auto Dish
Detergent

Toothpaste Whitening, sensitive, anti- All Purpose

cavity, multi-benefit, Cleaner Sprays, pours, wipes, etc
freshening etc.

Mouthwash Freshening, multi-benefit, Fabric

Conditioners Fabric Conditioning liquids and
whitening, halitosis, dryer sheets
anticavity etc.

Manual Toothbrush Light Duty

Manual toothbrushes Liquid Liquid hand dishwashing liquid
(LDL)

Power Toothbrush Auto Dish

Battery, electric and hybrid Detergent Machine dishwashing liquid,
toothbrushes (ADD) powder, and dose packs
 Key Trends will drive future Mature Sales
THERE WILL BE MORE! +18% People 50+ (19MM); + 16% HH 50+ (10MM)

BY 2025: Matures will be primarily Boomers & Gen-X

GROWING IN SOCIAL MEDIA: Steady adoption & integration

LOYAL TO EXISTING BRAND CHOICE'S: Unless disrupted or enticed

MOVE TO SMALLER HOMES: Aging Boomers will downsize in general

COPING WITH MOBILITY ISSUES: From slight to disabilitating

LIVING LONGER + ACTIVE YEARS: Healthy; In the workforce longer

 Messaging that connects with Mature
Swiffer has seen increase in Female 50+ spend
Morty Are you listening?
Reasons for success:
Common thread between ad
imagery

Speaks to Mature Consumer in

their circumstance (want to feel
my best) not their focusing on
physical changes

Use messaging that references

their life NOT their age
 Messaging that connects across Generations
Wet Jet - Generations
Reasons for success:
Life situations with broad
cultural relevance & appeal

Include multiple generations

interacting naturally

Thread Mature Consumers

into mainstream messaging
Gen X Plays Important Role in Mature Segment

Todays Gen X are tomorrows Mature

Colgate currently has a strong presence with Gen X

Source: US Census 2013 Estimate, 4i Projection