social classes in india

8/3/2019 Social Classes in India

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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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social classes in india

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