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Railway Modeling Market Research

SEO STAR ✪

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Table of Contents

1. INTRODUCTION ...................................................................................................................... 2

2. MARKET ANALYSIS ............................................................................................................... 4

2.1 Market Overview ................................................................................................................... 4

Sales value of electric model trains, scale models and construction sets/toys manufactured in the

United Kingdom (UK) from 2008 to 2015 (in million GBP) ....................................................... 4

2.2 Modeling Railroads ................................................................................................................ 4

2.2.1 Industry Growth .............................................................................................................. 5

2.3 Branding ................................................................................................................................. 5

2.4 Older generation .................................................................................................................... 5

2.5 Habits of old people and why the are buying railroad modelling .......................................... 6

2.6 Ways to engage people .......................................................................................................... 7

Swap Meets .................................................................................................................................. 7

Train Shows .................................................................................................................................. 7

E-mail lists and Forums ................................................................................................................ 8

Prototype Modelers' Meets ........................................................................................................... 8

2.7 Competition ......................................................................................................................... 10

2.8 US market ............................................................................................................................ 11

3. TRENDS .................................................................................................................................... 13

Maybe Model Trains Aren’t Dying ................................................................................................ 13

Model railway accessories from the 3D printer .............................................................................. 13

Global aging population .................................................................................................................. 14

4. Marketing to old people ........................................................................................................... 14

How to Find and Reach Your “Older” Target Audience Online ................................................ 14

Advertising ................................................................................................................................. 15

Once you've successfully driven "senior traffic" to your site ..................................................... 15

The Millennials ........................................................................................................................... 16

Millennials will soon dominate the market. ............................................................................... 16

5. Conclusion ................................................................................................................................. 18

6. REFERENCES ......................................................................................................................... 19

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1. INTRODUCTION

As Rod Stewart reveals that he always books a hotel room for his model railway, we ask the

enthusiasts why these tiny tracks hold such a big place in many men's hearts.

While promoting his new album, Rod Stewart has revealed a hobby that doesn't quite align with his

leopard-print trousers or the excitement of his hard-partying youth. The 70-year old rocker enjoys

building and playing with model railways.

Admitting that he always books two hotel rooms (one for himself and one for his trains) Stewart also

revealed that the track at his Beverly Hills mansion rivals the area of a regulation size tennis court –

which, at over 20 metres long, is a lot of track.

It's easy to mock model railway enthusiasts as the dull cousin of train spotters, but the truth is that

attics and spare rooms across the nation are filled with small buildings and model engines. So what is

it about the guilty pleasure of building tiny tracks and watching tiny trains zip around them that is so

appealing?

Mike Hughes is the Marketing Director for the British branch of the National Model Railroad

Association (NMRA). He believes that constructing model railway tracks is a "hobby that transcends

generations" and encourages people to nurture a wide range of skills as problem solvers.

"It's a complete range of skills," says Hughes, 68. "You can begin by researching the different railways

and trains, and then of course a great deal of skill goes into the planning. Woodworking skills are

required to lay the track and then electrical skills to successfully install all the wiring. You improve

your artistic and modelling skills as you build as well."

"People think that they're toys, but it does take a great deal of skill. They're anything but toys these

days, with digital command controls (DCC) and such things."

Hughes is keen to dispel the stereotype of the middle-aged male model train enthusiast. "There are a

great deal of women who build. And it does become a community after a while, people joining with

a common hobby.

"But then there's a great range within the NMRA, people model different things. Some steam, some

diesel, some electric. All of these different aspects are what generates the interest."

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Indeed, model train titans Hornby cite an increase in young modellers as a key factor in their "healthy

and steady" year-on-year sales. "Model train building is a nostalgia thing," a spokesman for the

company said. "Dads and grandads alike are introducing their kids to it because it’s what they

themselves grew up with – they either collected Hornby as a kid or they were around for genuine old

steam trains."

Hornby's key demographic continues to be the over-50s, who indulge their passion with an increased

financial ferocity post-retirement. But the average age of the model railroader is dropping, and the

ethnicity and gender of modellers is becoming correspondingly diverse.

"For many, myself included, a model railway isn’t just a trainset, but an attempt to recreate a real life

location in miniature. It’s like a 3-D art form. And the more realistic you make it, the more people

like them – it’s quite addictive!"

Smith believes the future of model railway building to be bright, with sales of the magazine going

from strength to strength. "Demand for British Railway Modelling magazine has increased in recent

times," he explains, "and we’re quite pleased with that. It’s reassuring to know that such a great hobby

has a future and can evolve and appeal to other generations."

Mike Hughes agrees, saying he has witnessed the birth of a new modelling generation first hand. "My

generation enjoyed modelling, but then the next didn't. But the children who are growing up now, who

enjoy Thomas the Tank Engine for example, are becoming interested once again.

"I think they like having something physical as well as being able to play video games."

Perhaps Rod Stewart's dedication to his model railtrack shouldn't come as a surprise - and even less a

target of mockery. Many model train enthusiasts appear to break the stereotypical mould, and with

sales rising and a new generation becoming increasingly interested in the littlest of locomotives, model

railroading looks like an industry on the rise. Full steam ahead!

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2. MARKET ANALYSIS

2.1 Market Overview

Sales value of electric model trains, scale models and construction sets/toys

manufactured in the United Kingdom (UK) from 2008 to 2015 (in million GBP)

This statistic shows the value of sales of electric model trains (including accessories) and other scale

models and construction sets/toys manufactured in the United Kingdom (UK) from 2008 to 2015. In

2012 approximately 17.63 million British pounds (GBP) worth of electric model trains and

constructional toys were sold by UK manufacturers.

2.2 Modeling Railroads

Model railroads serve as a hobby for many people across all age groups. Some people have even

turned their hobby into a business, selling model railroad equipment or even building layouts for

others. Model railroading business owners can grow their business through deliberate marketing

efforts, just like any other business. However, as an industry that is both hobby and business to some,

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the thought of marketing may not be all that appealing. Model railroad marketing can have benefits,

though, even for those who primarily treat it as a hobby.

2.2.1 Industry Growth

Model railroading is one of those industries that consists of both older and newer generations of

enthusiasts. Older enthusiasts sometimes revisit the hobby as they get older, returning to it after their

participation in railroading as a childhood activity. Some are familiar with the industry because of

their parents who may have been model railroaders themselves. Marketing efforts can also reach

newer generations of enthusiasts to grow the industry and keep it thriving.

2.3 Branding

One of the realities of the model railroading world is the divide between older and newer generations

of hobbyists. Acquia.com notes that the divide between these enthusiasts has allowed some companies

such as M.T.H. Electric Trains to go different directions with its products and marketing efforts to

create its own brand. Whereas older enthusiasts often return to the railroad companies of their youth,

M.T.H. has been able to create an entirely new brand that blends nostalgia with innovation. M.T.H.

has created thousands of new products and has used marketing as a way to raise awareness of its brand

and build business by attracting both old and new hobbyists

2.4 Older generation

▪ Most model railway layouts at exhibitions are actually operated by older gentleman rather than

the younger ones.

▪ Clubs also say especially committee members that their members are ageing and that they are

getting more geriatric and filling out (another word for getting older) yet the small amount of

youngsters they have they actually alienate out of clubs because some older modellers think the

clubs layout is theirs and not the clubs and youngsters aren’t allowed to operate their own trains

on it.

▪ AMRM and other magazines hardly show any new layouts that are actually built by younger

members of our hobby and also AMRM one time did a readers survey and the majority were over

the age of 55 years old.

▪ Older people tend to perceived as having a higher income compared to the younger generation

because of superannuation and government packages but the reality is that compulsory

superannuation has not been around for that long (1993 I think)

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▪ That younger modellers aren’t encouraged because they can go out and get a Wii Console,

controller and game for around $350.00 and yes our hobby should advertise you can get the a train

set (decent one) and also extra track and some rolling stock for that same price but have a booklet

inside on how to actually run your layout like the prototype.

▪ That older modellers purchase the most modern of rolling stock that comes out when in actual fact

yes they do but in a lower percentage compared to the young ones who save their money to

purchase it. In other words it takes a younger modeller much longer to save for that particular item

they want.

▪ Younger modellers get girlfriends, get married, have children and then wait till they have left

home to start their hobby however some encourage their children to actually help out.

▪ Last but not least the perception is out there we need to change it before the hobby disappears yes

it might not disappear overnight but it will one day.

2.5 Habits of old people and why the are buying railroad modelling

Mike Hughes is the Marketing Director for the British branch of the National Model Railroad

Association (NMRA). He believes that constructing model railway tracks is a "hobby that transcends

generations" and encourages people to nurture a wide range of skills as problem solvers.

"It's a complete range of skills," says Hughes, 68. "You can begin by researching the different railways

and trains, and then of course a great deal of skill goes into the planning. Woodworking skills are

required to lay the track and then electrical skills to successfully install all the wiring. You improve

your artistic and modelling skills as you build as well."

"People think that they're toys, but it does take a great deal of skill. They're anything but toys these

days, with digital command controls (DCC) and such things."

Hornby's key demographic continues to be the over-50s, who indulge their passion with an increased

financial ferocity post-retirement. But the average age of the model railroader is dropping, and the

ethnicity and gender of modellers is becoming correspondingly diverse.

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2.6 Ways to engage people

Swap Meets

Swap meets are the most primitive of formal model railroad social events. In Southern California,

with good weather for much of the year, they are almost always outside, on parking lots roped off for

the purpose. They are organized by clubs, museums, and hobby shops, primarily as fund raisers or as

part of a business promotion. They are formal insofar as they take place at a particular date and time

announced by the organizer; often vendors pay a fee to participate, and sometimes the customers must

also pay an admission fee. However, they are informal insofar as efforts are seldom made to enforce

state sales tax laws, and there is no warranty offered on merchandise by vendors. Indeed, buyers can't

be fully assured that some merchandise on offer is not stolen, and conversely, vendors have no way

to assure themselves that checks from buyers are good.

Train Shows

Train shows differ from swap meets chiefly in that the organizer specializes in conducting such shows,

they take place in an established venue such as a county fairgrounds facility or convention hall, and

there is always an admission charge. One well-known organizer is the Great American Train

Show. Another is the Great Scale Model Train Show, well known in the hobby as the "Timonium

Show" or the "Howard Zane Show" after one of the organizers. The organizer of such shows imposes

higher fees and slightly higher standards on the vendors than are found at swap meets, keeping

marginal participants out, and there is a greater effort to enforce sales tax laws.

However, many swap meet vendors also sell at train shows. Part of their business model is to acquire

stock at putatively low prices at swap meets, then sell it at higher prices at train shows -- but as we've

seen, prices at swap meets are already quickly bid up to the sales-resistance level due to the bubble

mentality of these same dealers. As a result, it's common to see outdated, imperfect, or used

merchandise and remnants on sale at train shows for prices several dollars above what you would pay

for equivalent new items at a hobby shop. The presence of essentially unsellable non-model railroad

junk toy items, noted at swap meets, is also a problem at train shows.

In addition to the admission charge for such shows, there's usually also a substantial parking charge,

so that the full cost of admission to the show isn't trivial, and that cost must also be added to the cost

of any merchandise acquired there. This total is likely to be significantly more than the cost of shipping

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paid to a discount web or mail-order vendor, or the sales tax paid at a hobby shop. Consumers who

buy merchandise at train shows without being well-informed on prices risk a real fleecing.

E-mail lists and Forums

An innovation in the hobby that has come with the Internet is the rise of e-mail lists and forums.

Among the most popular e-mail lists are those found at Yahoo Groups, but others exist hosted by other

value-added providers, as well as on independent servers. A forum differs from an e-mail list in that

all messages are posted on the server and are viewed by visiting the site, rather than by receiving

broadcast e-mails. A popular forum site is Trainorders.com. There really hasn't been a form of

communication like e-mail lists or forums before the rise of the Internet; the closest equivalent was

round-robin letters, in which each correspondent added sheets to a group letter that was re-mailed in

sequence to a list of participants. This, of course, was slow and unwieldy. It was used, however, by

model railroad pioneers such as John Allen and others to develop techniques that we now regard as

standard for model railroad operation.

Clearly it's useful for a group of people whose interests focus on a common subject to exchange views

on a real-time basis. If the information is complex and technical, doing it in writing will be more

productive than a conference call. The rationalistic assumption would be that such an activity would

be most productive if all members of the group are at an approximately equal (and relatively advanced)

level of familiarity with their subject area, though necessarily some members will be better-informed

in particular fields than others. Each member can then expand her knowledge of the subject by using

the contributions of the other members, while providing her own contribution to the group from her

specialty field. As one hobbyist put it, "nobody knows everything, but everybody knows something."

This assumes an egalitarian model, where each member has equivalent respect for every other

member's specialty knowledge, as well as a shared view of the common goal of the group. It's possible

to imagine ways in which such an egalitarian-cooperative model could break down. A central problem

is that each member feels he has an equal claim on every other member's attention, and his opinions

are of equal merit to every other member's.

Prototype Modelers' Meets

The phrase "prototype modeler" has considerable resonance and prestige in the model railroad hobby.

It came to currency in a grassroots movement in the mid-1970s as modelers became dissatisfied with

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the low quality and poor selection of the commercial products that were available to the hobby at the

time. By the mid-1970s, many railroad technical and historical societies were well-established and

publishing research on railroad equipment that was much more thorough than what had been

available. Extra 2200 South, a specialty magazine publishing detailed information on contemporary

locomotives, provided much more information on locomotives' technical features, history, and variety

than the mainstream hobby magazines.

There was a general sense that those mainstream magazines were neither encouraging improved

products from the hobby industry (who were their advertisers), nor publishing material that suggested

that improvements might be made to existing products on an aftermarket basis, again presumably

because it might offend advertisers to imply that their products were less than perfect. But it might

even be going too far to impute commercial motives to the editors for their complacency, since

complacency alone was probably a sufficient explanation. The magazines were also, it was felt, giving

insufficient attention to railroads in interesting parts of the country, such as the Rocky Mountain states

and California.

Model Railroad Clubs

A model railroad club is a formal organization, often incorporated, of model railroad hobbyists who

make use of membership dues income, in addition to other business or endowment income as may be

available, to build and operate a model railroad layout that is owned by the joint venture and used for

their mutual benefit. The New York Society of Model Engineers is apparently the oldest such

organization in the US, having been incorporated in 1926, but its web site says that it existed as an

informal organization since the 1910s, though it didn't focus on model railroading in its earliest years.

In talking about clubs, we have an advantage in that two well-established organizations come about

as close as any real-world institution can to matching the rationalistic expectations we might have of

what a model railroad club ought to be. The La Mesa, CA Model Railroad Club, part of the San Diego

Model Railroad Museum, has been building a model representation of the railroad line over Tehachapi

Pass. While the La Mesa club was founded in 1961, it lost its original building in 1978 and moved to

San Diego's Balboa Park museum complex. This project opened to the public in 1982, though the

overall layout is a work in progress. All features of the layout have been executed to a very high

standard. As part of a public museum, the layout is required to be in operation on a near-daily basis,

so that reliability and durability are key qualities. Rensselaer Model Railroad Society at the Rensselaer

Polytechnic Institute was founded in 1947, but work on the existing layout dates from 1972. Like the

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La Mesa club, the standard of execution is very high, with equipment, structures, and scenery based

on careful historical research. It is also regularly open to the public as an educational exhibit, but not

as frequently as the San Diego Model Railroad Museum.

2.7 Competition

BACHMANN INDUSTRIES

1400 E. Erie Avenue

Philadelphia, PA 19124

(215) 533-1600

www.bachmanntrains.com

Bachmann Industries is the world's largest producer of N, HO, O, On30 and Large-Scale model

railroading products. The company also manufactures many industry-leading brands such as E-Z

Track®, E-Z Mate®, Big Haulers®, Silver Series® and Spectrum®.

The company has been in existence since 1833, but first entered the hobby market in 1947 with their

Plasticville USA® line. In 1969, Bachmann joined the model train marketplace, and produced an N

scale electric train set. such as E-Z Track®, E-Z Mate®, Big Haulers®, Silver Series® and

Spectrum®.

Today, with its long and proud history, Bachmann is a leader in the hobby industry. For more than

50 years, the company has thrived in the hobby market, producing hundreds of train sets, accessories,

and other hobby-related products.

------------------------------------------------------------------------

KALMBACH PUBLISHING CO.

21027 Crossroads Circle

Waukesha, WI 53187-1612

(262) 796-8776

www.kalmbach.com

Publisher of Model Railroader, Classic Toy Trains and Garden Railways magazines and associated

books, as well producer of www.trains.com, Kalmbach is known worldwide as a leader in hobby

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publishing. Founded in 1933, the firm first published Model Railroader in 1934. Today the company

has grown to include 14 magazines, more than 250 books and a variety of web sites.

Kalmbach is an industry source for current information on model train enthusiasts and can help

provide background information for you in preparing your story.

2.8 US market

March 26, 2013. The Hobby Manufacturers Association Board of Directors has just released the

findings of its 3rd Size of the U.S. Model Hobby Industry Study which was conducted in the fall of

2012 and shows actual sales for 2011 and estimated sales for 2012. “HMA member manufacturers

and distributors reported that 2012 model hobby product sales were estimated to be $1.31billion as

compared to 2010 estimated sales of $1.47 billion and actual 2011 sales of $1.265 billion,” announced

Fred Hill (The Coach Yard), HMA President. “The 2011 actual sales of model hobby products show

a 9% decrease from the 2009 actual sales reported by survey respondents,” added Hill. “However,

respondents reported an estimated increase of 3% in projected sales for 2012 over 2011. ”This

decrease in sales was due in large part to the industry’s later recovery from the economic recession

that impacted other industries in 2008 and 2009. “Our industry also saw more mergers and

consolidations among member manufacturers and an increase in more web-based sellers of hobby

products,” stated Hill. Based on the standard average markup on manufacturer and distributor sales

which is reported to be 40% to 50%, the estimated size of the hobby industry at retail would be

between $2.5-3.0 Billion. The 2012 estimated sales in the individual product segments as compared

to the 2010 projections are:

According to data and research, there are a stable market growth in Modelling Railroad at US

market.

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The study was conducted by the University of Louisville School of Business via an online

questionnaire survey tool, Survey Monkey. All data was transmitted anonymously through this

surveying device to protect the confidentiality of responding companies. The survey was designed to

give the industry valid statistics for business use by HMA members, lending institutions, potential

new entrepreneurs, and industry retailers.

“We received a 38.9% participation rate among the surveyed companies of HMA,” said Tom

Grossman, chair of HMA’s Education Committee, which oversaw the research project. “We want to

thank all our member companies and exhibitors for answering the questionnaire,” added Grossman.

The 2011-12 Survey included new questions on social media marketing and satisfaction with off-

shore manufacturing. 95.7% of survey respondents said they utilize Facebook to enhance their

marketing efforts and 52.2% use Twitter to engage with consumers. Advertising on social media

outlets might shift the industry’s aging demographic and help promote the increased sophistication of

industry products. 34% of respondents said they are concerned with the competition from outside the

U.S. and the potential of more products flooding the market. Survey respondents were asked their

opinions on the major problems facing the industry. The five major themes were:

1. Hobbyists are aging and the industry is not attracting a younger demographic.

2. The economy impacted the industry as hobbyists cut back on their hobby expenditures.

3. Internet sales and direct sales to retailers are hurting the traditional distribution channels.

4. Cheaper and lesser quality products from sources outside the U.S. are costing hobbyists more in the

long run.

5. The decline in hobby retail stores has made it more difficult for consumers to find products and to

try and learn more about them

32,533 Attend Train Show Making it the Most Attended Ever in Illinois

Schaumburg, IL – The World’s Greatest Hobby on Tour pulled into the Schaumburg Convention

Center on January 16 & 17, 2016 and was host to thousands of people anxious to experience model

railroading on a grand scale. Despite the subzero weather on Sunday, attendance was strong and by

the end of the day all indications were there that the show had surpassed previous attendance records

for train shows not only at the Schaumburg Convention Center but the entire state of Illinois. All the

leading model railroad manufacturers were at the show including:

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3. TRENDS

Maybe Model Trains Aren’t Dying

It is not uncommon to read articles about how the model train industry is on the decline. Statistics

commonly depict a dying hobby who’s users are aging and declining in number. NMRA articles often

feature a president’s message looking for ways to bring young people to the hobby. Train shows are

filled with rectangular layouts with elderly club members operating their locomotives safely from the

center of the display (which often includes safety glass). But if you attended the Amherst train show

in Springfield, MA last month, you may have seen something different. Young kids are downloading

apps onto their smart phones and running trains themselves. Bachmann is the first major

manufacturers to build Bluetooth Smart directly into their trains. Families with kids are downloading

the free control app on their smart phones and running the trains themselves. The trains use the same

technology found in the Apple Watch and Fitbits, and are a great example of refitting a classic hobby

with cutting edge technology. This is accomplishing its goal of bringing younger users to the hobby.

35% of the people who’ve purchased Bachmann E-Z App™ trains since they released this Christmas

are between the ages of 25-34, and 28% are between the ages of 18-24. These are young families with

kids, and just the target audience the model railroading hobby is trying to reach. The photo at the top

of this article (taken from the Amherst show) tells the story of an older model railroader handing the

hobby to another younger generation. In this case, he is handing it over in the form of an iPad mini,

and the child seems interested.

Model railway accessories from the 3D printer

For accessory manufacturers, attractive themes that appear on a seasonal basis are one of the main

revenue sources. Faller, NOCH and Busch are good examples of this. Some people prefer

"Buschheide", a little village where the villagers live a traditional life and go to the pub after a hard

day's work, while others are more ecological and progressive with their "green stations". We can see

here how the main trends of our time are reflected in model railways.

Years ago there was a gap between the supporters of traditional plastic injection moulding processes

and laser cut models; now the industry is entering the world of digital production. NOCH has a product

range with 10 models in HO gauge and 4 models in TT and N gauge, that all come out of the printer.

This could be an economically viable solution to the problem of increasing the number of new

products while reducing quantities.

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Global aging population

The market opportunity Globally, the number of those aged 65 and over is growing at around twice

the rate of the overall population. This age cohort is now the fastest-growing primary segment of the

world’s population and its growth rate is outstripped only by that of an even older subgroup – those

aged 80 plus.5 In the UK today, ‘the majority of the UK’s personal wealth is now held by the over-

55’s … Unmortgaged home equity owned by older generations was estimated to be worth £1 trillion

in 2006’ 6 . The older consumer market is large and it is growing. When we compare this to the

younger segment of the market, we see that the 18-59 year old group is only forecast to grow by 7%

in comparison to the older market, which is forecast to grow by 81% from 2005 to 2030.

By 2030 the over 65s will account for 25% of the total consumer market (people over 16 years old)

Today’s over 50’s already hold 60% of the UK’s savings … and are responsible for 40% of the

consumer demand in the country, spending £200 billion per year.8 This reflects a significant

opportunity for those companies willing to address the needs of people in later life. Opportunities not

only exist for companies developing products and services for older consumers, but for those able to

capitalize on the knowledge and skills of an ageing workforce. These are the two key areas that have

been identified as being important for business by the Economist Intelligence Unit in their report ‘A

Silver Opportunity’

4. Marketing to old people

How to Find and Reach Your “Older” Target Audience Online

▪ Does my business target customers or clients who are over 50 years old?

▪ Am I marketing to this target audience online?

▪ If the answer to the second question is no, then ask yourself why not?

▪ Companies marketing to a senior demographic have traditionally put most of their time and

money into offline media. There is a long-standing belief that people over 50 are either not on

the internet at all or are only going onto sites such as AARP.org or WebMD.com.

The fact of the matter is that seniors control 70% of America's disposable income and they are far

more web savvy than most people believe.

Recent Studies show that in 2014, 70% of the 50-65 age bracket use the internet, while 38% of those

over 65 years old go online.

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Of the "wired" seniors:

▪ 94% use the internet for e-mail

▪ 77% shop online

▪ 71% are looking for health information

▪ 70% use the internet to read news

The rate of senior Americans adopting social media is steadily increasing. For the first time, more

than half of all online adults 65 and older (56%) use social media, Facebook in particular, according

to Pew Research Center’s Social Media Update for 2014. This represents 31% of all seniors in the

US.

While these numbers may pale in comparison with the 18-29 (86%) and 30-49 (61%) groups, it should

be noted that as of November 2008 (a short time ago) only 16% of the 50-64-year-old group and 4%

of the 65+ group were using Facebook.

Advertising

Many companies whose clientele are heavily weighted to the senior market are already marketing and

advertising online. According to Quantcast, 62% of the visitors to Sears.com are over 50. In an effort

to attract more seniors, Sears advertises on a number of "senior friendly" sites, including Senior.com

(see below).

Another example of senior-targeted advertising is Bayer Pharmaceutical, which chose

the PGATour.com site to advertise the erectile dysfunction drug Levitra. According to a Scarborough

Research report, 68% of men's golf fans are over 45 and men's golf fans are 33% more likely to be

over 65 than the general population.

Once you've successfully driven "senior traffic" to your site

If you expect a significant portion of your potential clients or customers to be seniors, then it is

important to understand that the senior audience presents specific challenges in terms of design and

messaging.

Suggestions for making your website "senior friendly" include:

▪ Make sure your font size is large enough for easy reading. Laptops and most monitors are

relatively small, making reading difficult for many seniors. I suggest a minimum of 12 point.

▪ Keep the navigation as simple as possible.

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▪ Age appropriate photos and graphics. If you are trying to get an older audience to buy, then make

them feel comfortable and welcome on your site.

▪ Understand the market. Marketing to seniors is a sub-specialty. Most internet marketers tend to be

younger and don't quite understand the senior market. It makes sense to add at least one person to

your marketing team that has experience working with senior consumers.

▪ Create landing pages specifically targeted to the senior audience. If your online advertising is

geared to attract a senior audience, then it makes sense to create a landing page or alternate home

page specifically geared to that audience.

The Millennials

Conversely, there are the Millennials. The Millennials are the generation coming to power who will

soon transform the market. The millennial generation is the largest in US history. As they reach their

prime spending years, their impact on the economy is going to be huge.

Also known as Generation Y, the generation born between the early 1980’s and the early 2000’s is

already considered a primary or secondary audience for nearly three-fourths of all marketing

campaigns in the United States. The 80 million or so Americans considered Millennials are digital

natives who came of age alongside the Internet, which has had a huge impact on how they interact

with brands and make purchase decisions.

Millennials will soon dominate the market.

According to a recent study from Digitas, Millennials are about to take a sharp swing upward in the

luxury brand space. That is because a nice chunk of Millennials are on the doorstep of affluence, with

an increasing number expected to earn $200,000 or higher in the next 10 years - making them a

massive target for luxury consumer marketers.

Another study suggests those that already qualify as wealthy are 17 percent more likely than their

older (35+) counterparts to make a luxury purchase. Furthermore, while they were practically raised

on brands, Millennials have an innate distrust of marketing. Still, this latest batch of twenty-

somethings demand personalization, mobility and have an overriding need to be recognized as

individuals. It may be a lot to ask if you’re tasked with improving a company’s online marketing ROI,

but soon they will be in charge. You better start getting to know who they are and how to reach them.

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Here are a few more hints: They are well-educated, and have also been well-praised by a generation

of doting parents, which has led to negative stereotypes regarding their sense of entitlement. So they

are hard to please yet at the same time demand to be pleased.

They’ve been exposed to interactive messaging from an early age and are adept at tuning out what is

not relevant to them. However, they aren’t unreachable. Below are a few key steps luxury brands

should take to make sure they’re reaching Millennials:

1. Start now. There’s already a small contingency of Millennials coming into a modicum of wealth,

and studies predict that more will join their ranks over the next 10 years. A universal truth about luxury

brands is that consumers feel loyal to them. Start building that loyalty online now so that Generation

Y will already be attached to your brand once they can afford to buy it.

2. Engage online. It’s no secret that the Millennial generation is active online. They’re not your core

audience yet, so don't drop your core marketing tactics, but this is where the next generation of buyers

is most active right now. You should have a strong presence online (especially in social media) and

use this time to start listening. Find out what they like and dislike about your brand and start gathering

insights on how you can strengthen your brand in their eyes.

3. Be genuine. Generation Y believes they can see through phony marketing messages and have

developed a love/hate relationship with certain over-the-top branding. Rather than using loud and

overly promotional online messaging, identify what they like about a brand and develop a story

around it that they will be excited to follow.

4. Leverage peer recommendations. With social media becoming an increasingly important part of

Millennials’ daily routines, it’s important to keep peer recommendations in mind. This generation has

24/7 access to their social circles and it’s highly unlikely that they’ll make a major luxury purchase

decision without consulting their friends and, or family first.

5. Focus on experience. Hard selling is considerably less effective than creating a memorable brand

experience. Static messages don't register, so figure out how to get Generation Y to interact with your

brand. It could be online in the form of a game or a microsite, or maybe it’s a live event or sponsorship.

There’s an excellent example of how LVMH moved from hard selling to creating an enjoyable online

experience in this NY Times article.

6. Show value. With the proliferation of online product reviews and peer recommendations, it’s

becoming more important than ever to highlight the value and quality of your product. Millennials do

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extensive research before buying a luxury product, so make sure your positioning is very clear on the

reasons your product is the best.

7. Offer exceptional customer service. Generation Y is hyper-connected and they expect their brands

to be as well. Make sure you’re available on multiple communication channels to answer any

questions they might have, without being pushy or trying to upsell. Upsell is seemingly less necessary

with Millennials than with past generations because they are exceptionally loyal. According to

a report by Edelman Digital, 70 percent will keep coming back to a product or service they like.

8. Do good. One of the best ways to start resonating with Generation Y now is to engage in social

good. They grew up with volunteering as a major part of their high school and college requirements

and consequently, being socially conscious has become a part of their core belief system. Show that

your brand cares about humanity and the environment and you’ll start to build a positive image in the

eyes of Millennials.

5. Conclusion

The ageing population presents a significant opportunity for companies who can innovate, enhance

existing products and services or develop new product lines suitable for the older consumer. A

significant amount of research has been done to identify the business sectors most likely to benefit

from older consumers such as those involed with health and wellbeing, leisure, tourism and financial

services. And much has been written about the opportunities for those who can help individuals

achieve more independent lifestyles in old age. But much more work is required to better segment the

ageing markets and ascertain their size in other areas. For many companies already focused on the

ageing market their strategy has been to adapt their existing offering to make it more attractive and

applicable to older consumers.

In conclusion, many in business, government and academia are taking active steps to respond to the

challenges and opportunities of an ageing population. There are significant barriers to overcome:

ageism, stereotyping, inflexibility and uncertainty. Those who are able to effectively address these

challenges at a city, regional and national level, will be well-placed to take advantage of the economic

opportunities presented by the ageing demographic. In Newcastle and the North East of England it

would appear that, for the large business-facing public sector organisations, the ‘penny has dropped’.

They are mobilising their knowledge, expertise and networks to make sure that local and regional

businesses, as well as regionally-based international businesses, get the help they need to grasp the

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opportunities - and that older people, and the economically challenged public sector who support

them, will benefit as a consequence of their needs being met with innovative services and products.

The final advice for railways modeling business is to improve exiting models and connect the with

various gadgets at home, including tablets and other divices, this can give a second chanse for train

modelling.

6. REFERENCES

Hagerty, J. (2017). End of the Line for Model Trains? Aging Hobbyists Trundle On.

[online] WSJ. Available at: https://www.wsj.com/articles/end-of-the-line-for-model-

trains-aging-hobbyists-trundle-on-1455157546 [Accessed 10 Mar. 2017].

HMA. (2017). 2012 ESTIMATED SIZE OF U.S. HOBBY INDUSTRY IS $1.31 BILLION.

[online] Available at:

http://www.pmsa.us.com/HMA/Size_Of_Industry_Press_Release_2013.pdf

[Accessed 10 Mar. 2017].

Hmahobby.org. (2017). Model Railroad | Hobby Manufacturers Association. [online]

Available at: http://www.hmahobby.org/?page_id=73 [Accessed 10 Mar. 2017].

OregonLive.com. (2017). Are model trains still relevant? Hobbyists stay on track at the

Great Train Show in Portland. [online] Available at:

http://www.oregonlive.com/entertainment/index.ssf/2015/01/are_model_trains_still_

relevan.html [Accessed 10 Mar. 2017].

Shaoolian, G. (2017). How to Find and Reach Your “Older” Target Audience Online.

[online] Bluefountainmedia.com. Available at:

http://www.bluefountainmedia.com/blog/reach-older-audience-online/ [Accessed 10

Mar. 2017].

Smallbusiness.chron.com. (2017). Benefits of Model Railroad Marketing. [online]

Available at: http://smallbusiness.chron.com/benefits-model-railroad-marketing-

37916.html [Accessed 10 Mar. 2017].

Statista. (2017). Model train/constructional toy sales value 2008-2015 | UK Statistic.

[online] Available at: https://www.statista.com/statistics/377308/electric-model-

trains-scale-model-construction-set-sales-manufactured-in-uk/ [Accessed 10 Mar.

2017].

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Trainweb.org. (2017). The Sociology of Model Railroading. [online] Available at:

http://trainweb.org/lfnwfan/html/Sociology.htm [Accessed 10 Mar. 2017].

Wells, J. (2017). Why do men love model railways?. [online] Telegraph.co.uk. Available

at: http://www.telegraph.co.uk/men/thinking-man/11918663/Why-do-men-love-

model-railways.html [Accessed 10 Mar. 2017].