As India grows it is time the we start defining our audience beyond SEC A,B,C,D,E. Though the definition of SEC is primarily from the parameters of Education and Occupation most of the people take it as surrogate for Income assuming higher SEC is higher Income!
Surely we will at some stage try and redefine the SEC to represent our audience in far better manner but till then we can look at them from few other ways.
I have compiled from different places of how we can look at our audience.
- Consumer Classification by Income
A study published by McKinsey Global Institute has segregated the audience in 5 clusters on the basis of their incomes.
- Deprived : less than 90000 INR
- Households in this income bracket are the poorest group, many living under the country's official definition of poverty 2400 calories per capita per day in rural areas, 2100 in urban areas)
- Households in this income bracket are the poorest group, many living under the country's official definition of poverty 2400 calories per capita per day in rural areas, 2100 in urban areas)
- Aspirers : 90000-200000 INR
- People are usually small-time shop keepers, small-hold farm, or low-skilled industrial and service workers
- People are usually small-time shop keepers, small-hold farm, or low-skilled industrial and service workers
- Seekers : 200000-500000 INR
- They range from young college graduates who have just started working to traditional white collar employees, mid-level government officials and medium-scale traders and businesspeople
- They range from young college graduates who have just started working to traditional white collar employees, mid-level government officials and medium-scale traders and businesspeople
- Strivers 50,0000-1,000,000 INR
- People in this band and upwards are generally regarded as very successful in Indian society, working as businesspeople in cities, as established professionals, senior government officials, medium scale industrialists in towns, and rich farmers in villages
- People in this band and upwards are generally regarded as very successful in Indian society, working as businesspeople in cities, as established professionals, senior government officials, medium scale industrialists in towns, and rich farmers in villages
- Global Indians 1,000,000+
- This group is the cream of the country and comprises senior corporate executives, large business owners, politicians, big agricultural-land owners and top-tier professionals
- This group is the cream of the country and comprises senior corporate executives, large business owners, politicians, big agricultural-land owners and top-tier professionals
- Consumer Classification by Value Orientation
Study done NCEAR
- The rich have most of the luxury goods
- Benefit maximizer class – money for value
- 'anywhere-in-the-world consumers' who just happen to be in India
- Benefit maximizer class – money for value
- The consuming class which has about 70% of the 'utility' durables and bulk of regular FMCGs
- Value for Money
- This segment is not in the market for premium products, but for what we call high end popular products
- They are very hard to seduce with imagery-oriented brand benefits as the major 'reason why' to buy
- Value for Money
- The climbers have at least one major durable in their homes. They are the main consumers of poplar segment consumer goods
- Cash constrained benefit maximizers, who within a confined budget look for the best market offer
- Price-point buyers
- Nirma detergent
- Nirma detergent
- Cash constrained benefit maximizers, who within a confined budget look for the best market offer
- The aspirants who are just entering consumption and have the very basic goods like a watch, a bicycle, a radio or a table fan
- Occasional consumers
- Shampoo hair on special occasions but use bathing soap otherwise
- Shampoo hair on special occasions but use bathing soap otherwise
- 'Paisa' pack of tea and detergent, low-priced shampoo sachets, loose glucose biscuits, are aimed at this segment
- Destitute who own and consume practically nothing, living as they do from hand to mouth
- Classification basis Mindset
Study done by Bates
There are three Indias in this India, three generations in this one big market. Understanding this unique mix has implications on business targeting, brand propositions, and language as well as product innovation pipelines. The three segments have their own distinctive worldviews an mindsets, and so are their consumption patterns and expectations from brands and products
- Partition's Generation
- Those born to the times of political independence/partition
- Those born to the times of political independence/partition
- Transition Generation
- Those born to the times of economic liberalization
- Those born to the times of economic liberalization
- No-Strings Generations
- Those born to the times of affluence and post economic liberalization
- Those born to the times of affluence and post economic liberalization
So my friends put on your thinking caps and start relooking at how you define your target audience.
