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Social Classes In INDIAN Market
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What is Social Class:
Social Class is used to denote societalrankones
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 withrespect to attitudes, values and lifestyles
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Bases for social Classes
Religion & Caste
Occupation
Power
Prestige
Education
Wealth
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Classification on the bases of income
Upper-Upper Class
Lower-Upper Class
Upper-middle Class
Lower-middle Class
Upper-Lower Class
Lower-Lower Class
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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 LudhianaThe 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
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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 lifeThe lower-middle class Non managerial White collar worker and highly paid
workers.
Want to achieve respect and be accepted as goodcitizens
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The upper-lower class(security minded
majority Largest social-class segment
Solidly blue collar
Strive for securityThe lower-lower class Poor uneducated, unskilled laborers
Often out of work Children are poorly treated
Tend to live a day-to-day existence
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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
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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-
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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.
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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)
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All India Spends
Food & Grocery --35.9%
Rent13.6%
Education6.2%
Fuel & Transport6.2%
Apparel &
Accessories5.2% Savings &
Investments4.1%
Communication4.1%
Books & Music3.1%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Food &Grocery
Rent &Utilities
Education
Fuel &Transport
Apparel &Accessories
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The Concept
The socioeconomic classification (SEC), groups urban Indianhouseholds on the basis ofeducation and occupation of thechief wage earner (CWE: the person who contributes the mostto the household expenses) of the household into five segments.
This classification is more stable than one based on income aloneand being reflective of lifestyle is more relevant to theexamination of consumption behavior.
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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.
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