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
• SEC is an indicator or a pointer towards the
“likely to consume” but often defies the reality
of not pointing clearly towards the “consuming
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
Factors taken in it
• HPI also takes these factors
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