New Socio Economic classification system.Market Classification and segmentation on the basis of customers education and income. A marketing management topic.

1. The New SEC system
(SOCIO ECONOMIC CLASSIFICATION)
BY GROUP – 6
• VAIBHAVAGARWAL
• MANAV SINGHAL
• VARUN GARG
• SHEEBA SULTAN
• NAVNEET KAUR
• KUMAR ARASTU

2. 1. What is SEC SYSTEM?
2. OLD and NEW SEC
system.
3. What is THE CURRENT
SEC SYSTEM?
4. The DRAWBACKS ofThe
Current SEC system.
5. What is THE NEW SEC
SYSTEM?
6. How do we CLASSIFY
HOUSE HOLD in new
SEC system?
7. The ADVANTAGES and
DRAWBACKS of new SEC
system.
ROADMAP

3. WHAT IS
SEC
SYSTEM?

4. What is SEC SYSTEM?
SEC or Socio Economic Classification system is the classification of Indian
consumerson the basis of various parameters.
Developed by:
o IMRB international
o MRSI (Market Research
Society of India)
Used by:
o Media Researcher
o Brand Managers
To Understand:
o Market Segments
o Consumer Behaviour

5. SEC SYSTEM
NEW SEC SYSTEMCURRENT SEC SYSTEM
RURAL SEC SYSTEMURBAN SEC SYSTEM
OLD and NEW SEC
system

6. What is THE CURRENT SEC SYSTEM?
o Consists of two grids
Urban SEC Grid Rural SEC Grid
Based on two variables
Education Levels
Occupational Criteria
Based on two variables
Education Levels (Of the Chief Wage earner)
Type of house (Pucca,
Semi-Pucca & Katcha)
(Of the Chief
Wage earner)
Classification into 7 groups. Classification into 4 groups.
GROUPS : R1 , R2 , R3 , R4GROUPS : A1 , A2 , B1 , B2 , C
D , E1 , E2

7. Current Rural SEC system
Current Urban SEC system
Distribution of Households (Current
SEC)

8. The DRAWBACKS of The Current SEC system
ASSUMPTIO
N
HIGHER
EDUCATION
HIGHER
INCOME
HIGHER
CONSUMING
POTENTIAL
But… Is it always true?
GROCERY
SHOP
OWNER
COMPANY
EXECUTIVE
NO EDU. QUALIFICATION POST GRADUATE
INCOME
1,20,000
INCOME
80,000

9. What is THE NEW SEC SYSTEM?
o Based on two variables.
EDUCATION OF THE
CHIEF EARNER
ILLITRATE
LITERATE(No formal
schooling.)
Graduate/Post Graduate:
Professional
Schooling up to 4 years
Schooling up to 5-9 years
SSC/HSC
Some college (Not
graduation)
Graduate/Post Graduate:
General
EDUCATION OF THE
CHIEF EARNER
Ceiling Fan
Two Wheeler
Refrigerator
Personal Computer/Laptop
Air Conditioner
Electricity Connection
LPG Stove
Color TV
Washing Machine
Car/Jeep/Van
Agricultural Land
Classification into 12 groups
GROUPS : A1 , A2 , A3 , B1 , B2 , C1 , C2
D1 , D2 , E1 , E2 , E3

10. New (Rural + Urban) SEC system
Distribution of Households (New
SEC)

11. How do we CLASSIFY HOUSE HOLD in new SEC
system?
JUST two questions THAT NEED TO BE ASKED :
Please take a look at this list and tell me which of these items do you
have at home? (It could be owned by you, your family, or provided by
the employer or it could be available in the house you live in; but it
should be for the use of just you or your family)
Does your family own any agricultural land, by agricultural land I
mean land that is currently under cultivation or plantation?
Could you tell me something about the person who makes the biggest
contribution to the running of the household. To what level has he
studied?
Q1
(a)
Q1
(b)
Q2

12. RECORDING The Grid
Items owned / have access at
home
Circle Tick
1(a)
Electricity Connection 01 √
Ceiling Fan 02 √
LPG Stove 03 √
Two Wheeler 04 √
Colour TV 05 √
Refrigerator 06 √
Washing Machine 07
Personal Computer/Laptop 08
Car/Jeep/Van 09 √
Air Conditioner 10
1(b) Agricultural Land 11 √
NUMBEROF STANDARD 11 OWNED 8

13. No. of
durables
(Transfer
from Q1)
Chief Earner: Education (Q2)
Illiterate Literate but
no formal
schooling/
Schooling up
to 4 years
School 5 to 9
year
SSC/HSC Some college
(including a
Diploma) but
not
Gradation
Graduate/
Post
Graduate :
General
Graduate/
Post
Graduate :
Professional
1 2 3 4 5 6 7
None E3 E2 E2 E2 E2 E1 D2
1 E2 E1 E1 E1 D2 D2 D2
2 E1 E1 D2 D2 D1 D1 D1
3 D2 D2 D1 D1 C2 C2 C2
4 D1 C2 C2 C1 C1 B2 B2
5 C2 C1 C1 B2 B1 B1 B1
6 C1 B2 B2 B1 A3 A3 A3
7 C1 B1 B 1 A3 A3 A2 A2
8 B1 A3 A3 A3 A2 A2 A2
9+ B1 A3 A3 A2 A2 A1 A1
RECORDING The Grid - 2

14. The ADVANTAGES and DRAWBACKS of new SEC system
ADVANTAGES DRAWBACKS
o More discrimination as compared with
current systems.
o A single system for urban and rural
India.
o Less subjectivity-as we no longer use
occupation.
o It’s simple -easy to answer, not very
time consuming, easy to classify
o We need to be better prepared to
handle minor changes to the system,
because “consumer durables”
penetration will change faster than
education or occupation.
o The questioning can appear intrusive
to people who are unaccustomed to
market research. It’s not a problem
elsewhere.
There are no serious problems. But..

15. THANK YOU