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The current Socio-Economic Classification (SEC) adopted in India is based on ownership of consumer durables and automobiles.
Perhaps GDP and income growth, the proliferation of consumer durables, and car ownership have increased significantly, making current socio-economic classifications less discriminatory and more unstable. The need to redefine key variables led to the formation of a more stable and robust structure, ISEC (Indian Socio-Economic Classification).
Unlike the previous New Consumer Classification System (NCCS), which only took into account the educational background of the main earner and the presence of certain consumer durables in the household, ISEC takes into account a person’s level of education. According to Market Research Institute of India (MRSI), highly educated adult men and women.
MRSI held a panel discussion on Wednesday, February 21st. Shuvadip Banerjee, Chief Digital Marketing Officer, ITC Ltd and Director General, MRSI, moderated the conversation with Amit Adarkar, CEO, IPSOS India. Jasmine Sachdeva, Managing Wavemaker India Her Partner, Muralidhar Salvateeswaran, Kantar Chief Operations Officer, Insights APAC. Rajiv Dubey, Head of Media, Dabur India, Vivek Malhotra, Group CMO, India Today Group, and Vinay Virwani, Head of Consumer Insights, Dabur India, discuss the importance of a stable and representative SEC system, the challenges of NCCS, Discuss the transition to ISEC.
Sachdeva said: “Parameters, growth, consumer media consumption and ad receptivity have changed significantly. We are dealing with consumers today who have so many choices that we need to approach them differently. there is.”
Adharkar said he believes the country has undergone a major demographic change over the past five years.
“Nowadays, you think you’ve managed to break through the YouTube consumption pattern, and then all of a sudden you have a WhatsApp channel and people start following it. realizes that it is still a distant dream. It’s only digital and doesn’t have a single customer perspective. That to me is the biggest complexity,” the Kantar executive said of the challenges with changing consumer patterns.
Virwani added: “Consumers themselves are complex to begin with. The complexity of how they make decisions today. It’s no longer linear. And the way they choose in one category can be quite different from the other.
“So you can’t classify them as premium customers or mass customers. They can be premium in some categories that are relevant to them. They can also be mass in something else. There is,” he said.
Additionally, Dubey shared that the 60 percent penetration rate is now 99 percent. So how does the challenge become for brands to reach a profitable and growing segment within it? How do they speak to them? What words are they using to persuade them to buy your category?
When it comes to the large-scale segmentation process and identifying consumer pockets, the classic system Dabur follows is a very classic segmentation of wealth, then purchasing propensity, and then how much can a consumer afford to buy? This is the method.
But apart from that, Dabur found that segmentation and behavioral targeting can be quite effective, especially when it comes to the healthcare category. “So we find that if they are interested in more health activities, they are more likely to be consumers of health supplement brands like Cyawanprash,” Virwani explained.
But what next?
Once the demographic and psychographic foundations are complete, it is very important to see where the sources of growth are coming from. Does a new era of brands need increased consumption or increased penetration? And that is the beauty of today’s digital data, Sachdeva emphasized.
The next thing to look at is India Alpha, who make up about 1.8 percent of India’s population. They account for approximately 64,000 billion yen (approximately $50 million) of consumer goods purchases. Goldman Sachs says this will reach about 100 million by 2027. So how do marketers identify these 2.3 billion users?
Dubey believes most companies are working in the same direction. “You get your own stack of first-party data, you create your own cohorts, and you try to collect as much data as possible.”
According to Malhotra, in this current perspective, the role of the media becomes extremely important. This is purely because of the amount of data that the media receives from the different industries in which they operate.
“When I look at my data now, I see three problems: Sometimes I have very little data, sometimes I have too much data, and sometimes the data is in silos. If I were to solve all my problems, what I really need to do is engage more deeply with the consumer. I can’t just get his email ID or mobile number. You’ll have single sign-on on all of his properties, and you’ll be able to see everything he’s been up to. It goes even deeper. So you can see what he’s actually reading. “You really need to know what you’re consuming,” he added.
Therefore, the industry needs to maintain dynamic cohorts rather than stable, static cohorts. So there may actually be partnerships that go further than just building a CDP.
Ipsos executives emphasized: “We’re in a world where we always assume consumers are toothpaste consumers or car consumers, but we’re talking about humans. And the dangers of relying too much on first-party data. One of the things about it is that you have these walled gardens and you can’t see outside your immediate garden.”
Sachdeva forgot that marketers may also have a propensity to buy, but emphasized how much disposable income there is in a propensity to buy.
“I may have the money to buy the latest iPhone, but do I want to spend that money? Even if you had the money, would you be inclined to spend it?” she asked.
By the end, all panelists agreed that focusing only on the economic part and segmenting consumers by that parameter is not helpful for brands. In order to influence all categories of consumers, the social capital part also needs to be captured.
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