SOCIO ECONOMIC CLASSIFICATION

Older SEC Technique

• It is based on two parameters

• Occupation( 7 types)

• Education of the chief earner (12 types)

Classitionfication of table

• A1,A2 WHITE COLLAR JOBS

• B1,B2 SSC QUALIFIED JOBS

• C,D CLIMBERS(SKILLED JOBS)

• E1,E2 UNSKILLED LABOUR.

Three things about new sec

• what is socio-economic classification ?

•Why is it being changed?

•How sec will be measured now?

Socio economic classification• It is the way of segmenting consumers based

on their purchasing power.

• It is surveyed on 2,56,000 house holds responses of their buying behaviour.

Why is it being changed?

• Indian consumer profile dramatically changed over the years.

• Besides marketers need a better way to finely segment upper end customers.

How sec will be measured now?

• Households will now be grouped into 12 classess based on two factors

1.the education of chief wage of the earner

2.No of consumer durable

Consumer durables

Education of the chief earner

How it will help in marketing?

• Marketers need to plan their media expenses.

• So they will get an idea what customer already have, and what they willing to buy.

• It mainly uses to predict the purchasing power.

Draw back of sec

• Socio Economic Classification (SEC) lack in discriminating the truly potential households and audience.

• SEC is an indicator or a pointer towards the “likely to consume” but often defies the reality of not pointing clearly towards the “consuming class”.

What is HPI?• HPI allocates high scores for less penetrated product categories and services. On the other hand, lower scores to higher penetrated categories or mass consumed categories.

• HPI eliminates judgmental factors and is therefore a more systematic approach, across all segments of households, from the “super affluent”.

Factors taken in it

• HPI also takes these factors

1. demographics,

2. Highest Education in the household,

3. Number of working members,

4. education of the housewife.

How they categorise urban vs rural?• UPPER most segment crorepathis

(who also spend and consumer)

• MIDDLE segment core target for growth of very many categories

• The LOWER most segment, “volume generator” for many FMCG categories and lower end durables and services

By HARI KRISHNAN N