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New

Approach for
Indonesia Socio Economic
Status
Needs Assessment
Background
Current SES definition was adopted since 1970s, using one single measure:
Routine Monthly Household Expenditure
Nielsen received inputs from client and industry on the need of revamping
the SES to be more relevant to their current needs
While this measure was best at its time, recent development of society and
consumer behavior require an updated approach to segment consumers
based on their socio-economic status
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Needs Assessment
Objectives
What we are aiming, to have relevant measure that well discriminate the
Indonesian consumers in terms of social economic:

Work well in differentiating consumer behavior: purchasing power, product


and brand purchase/usage, lifestyle
Valid for urban (metro, rest of urban) and rural
Consistent implementation across Nielsens products (consumer, and Media)
Using existing robust establishment survey
Relevant across areas/widely available
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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ConsideraBon: BPS data

To meet the above requirement of robust sample, we used BPS data i.e.
SUSENAS.
SUSENAS also known as Economic Census was conducted by BPS once
every two years. The study we used was the 2010 measurement

Using BPS data will provide continuity when data need to be updated due to
change in society condition
BPS data is also an official source adopted by many parties
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Framework
Scoring System
Attribute Selection Validation
Development

Latent Class
Segmentation was
applied to SUSENAS As opposed to use a Results is then
data in order to come up single measurement, validated through
with respondents groups/ scoring system was Nielsen Media Index
segments as well as to adopted as better SES and Nielsen Home
identify the relevant indicator Panel
attributes forming the Order importance of
segments each attribute (resulted
from Latent Class
Segmentation) was
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

used to develop the


scoring system

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Framework
Scoring System
Attribute Selection Development Validation

Selected attributes resulted from Latent Class Segmentation


Source of drinking water
Electricity power
Type of fuel (for cooking)
Ownership of Refrigerator
Ownership of LPG Tube 12 KG
Ownership of Personal Computer/ Laptop
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

Head of HH Education level


Monthly household expenditure (Total of Food and Non Food)

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Framework
Scoring System
Attribute Selection Validation
Development

Determining the segment considering:


Number of segments
Segment size in total and at area level (urban metro/ non metro vs rural)
Profile of each segment (cross-tabbing)
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Framework
Scoring System
Attribute Selection Validation
Development

Attribute Scoring

Calculate Total Scoring from 8 attribute selected and come up with the range of score from
1 to 32
Determining the segment considering:
Number of segments
Segment size in total and at area level (urban metro/ non metro vs rural)
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

Profile of each segment (cross-tabbing)


Final Scoring Criteria

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Framework
Scoring System
Attribute Selection Development Validation

Validation was conducted through Nielsen Media Index and Nielsen Home Panel to assess
how this new SES align with other measurement on consumer behavior such as product
and brand usage
Nielsen Media Index is a large scale survey among n = 15,700 with respondents age 10+
years old
Nielsen Home Panel
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Framework
Scoring System
Attribute Selection Validation
Development

Profile of each segment (cross-tabbing)


Based on Media Index Data August 2011

Based on SUSENAS DATA in ALL AREAS (INDONESIA)

Based on SUSENAS DATA in METRO AREAS


Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Why is it beQer?

Beyond Consumer Better


Spending Wide Coverage Differentiating

Taken into account Survey covered national This new approach is


other attributes Attributes are relevant to able to differentiate
beyond consumer all areas/work for varied not only mass
spending: areas consumer but also
More accurate the upper class
attributes segment
Reflecting lifestyle
Copyright 2012 The Nielsen Company. CondenBal and proprietary.

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Copyright 2012 The Nielsen Company. CondenBal and proprietary.

New Consumer SegmentaBon

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