Social Classes In INDIAN Market

What is Social Class:

Social Class is used to denote societal rank ones position relative to another on one or more dimensions valued by the society It is a result of Characteristics possessed by an Individual

A social class system:

can be defined as hierarchical divisions of a society in to relatively distinct and homogenous groups with respect to attitudes, values and lifestyles

Bases for social Classes

Religion & Caste Occupation Power Prestige Education Wealth

Classification on the bases of income

Upper-Upper Class Lower-Upper Class Upper-middle Class Lower-middle Class Upper-Lower Class Lower-Lower Class

The upper-upper class

Small number of Well establishes families Serve as trustees for colleges and hospitals May be owners of major long-established firms Ex: Mr. Munjal of Hero Group in Ludhiana

The lower-upper Class

Not quite accepted by the upper crust of society. Represent new money Successful business executives Ex: CEOs OF MNCs like Bharti Airtel

Upper-middle class
Career oriented, Active in professional & social activities. Young successful professionals, corporate managers, & business owners. Have a keen interest in obtaining the better things in life

The lower-middle class

Non managerial White collar worker and highly paid workers. Want to achieve respect and be accepted as good citizens

The upper-lower class(security minded majority

Largest social-class segment Solidly blue collar Strive for security

The lower-lower class

Poor uneducated, unskilled laborers Often out of work Children are poorly treated Tend to live a day-to-day existence

Applications of social classes

Advertising
Social class members must understand the language and symbols used in advertising Lower and working class-strongly visual which show activity, on going work and life, practical problems in daily requirements Upper-class significant of their status and self expressive aims

Market segmentation Upper-class- style color Lower-class- appliances that work Distribution
Lower- Discount store & Neighborhood store Upper regular department store, nature and variety of merchandise

Product Development-

India as a Consumer Market

Presently 12th largest consumer market in the world(17 trillion Indian rupees) Poised to become the 5th largest by 2025(70 trillion Indian rupees) Indian spending patterns will evolve, with basic necessities such as food and apparel declining in relative importance, and categories like communications and health care growing rapidly.

Economic classes
Deprived (< Rs.90,000) Aspirers (Rs.90,000- Rs.200,000) Seekers (Rs.200,000- Rs.500,000) Strivers (Rs.500,000- Rs.1,000,000) Global Indians (Rs.1,000,000)

All India Spends

Food & Grocery --35.9% Rent 13.6% Education6.2% Fuel & Transport6.2% Apparel & Accessories5.2% Savings & Investments4.1% Communication4.1% Books & Music3.1%
Food & Grocery 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Apparel & Accessories Savings &Investmen ts Fuel & Transport Rent & Utilities Education

The Concept
The socioeconomic classification (SEC), groups urban Indian households on the basis of education and occupation of the chief wage earner (CWE: the person who contributes the most to the household expenses) of the household into five segments.

This classification is more stable than one based on income alone and being reflective of lifestyle is more relevant to the examination of consumption behavior.

Constitution
SEC A&B, constitute over a quarter The mid economic class, SEC C constitutes 21% Lower two SECs account for over half the population.