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NOBODY ELSE WANTS

There is a tendency for firms to aim for the most attractive groups
of customers all the time—the wealthiest, or the youngest (on the
assumption that they will have a longer life as customers), or those
with the highest usage rates for the product. This is fine, except that
everybody else is targeting the same groups, so you can expect some
fierce competition.

This was particularly the case for the older consumers. Companies
assumed that elderly people on pensions would have little money to
spend and would probably already have most of what they wanted.
What these companies had not noticed is that many older people
have generous occupational pensions, low fixed outgoings (having
paid off their mortgages, and having relatively few loans) and also
more leisure time to enjoy activities.

The idea

This is the market Saga tapped into. Originally, Saga targeted the
over-60s, offering vacations that catered for people who were
prepared to pay a small premium for extra care. Saga understood
their customers’ needs—while they ensured that less mobile people
got the help they required (for example, older Saga customers rarely
need to carry their own baggage), they also recognized that most
people in their sixties are fit, active, and interested in adventures. Saga
moved vacations for the elderly away from coach trips to Blackpool
or the Lake District toward adventure breaks in the Amazon Rain
Forest and activity weekends. The company also retains a greater
degree of flexibility than other package companies—recognizing

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