In a down economy, do you target the rich or the ‘masa’

Published in Philippine Daily Inquirer, Business Friday, May 2, 2008

The marketer’s daunting task is to have the consumer budget appropriated to his brand

In a depressed economy and prolonged stagflation, business owners generally aim their guns at the affluent market hoping to recover investments quickly.

Buoyed by the population that comprises the middle market as opposed to a small upscale market, not all entrepreneurs are truly prepared to sustain their presence in this market, colloquially referred to as the masa market.

Economic segment defined

Research companies define the AB market to include those with a monthly household income of Php50,001 and above representing 1 to 2% of total urban households. The C market is estimated between 9 to 12% with a monthly household income between Php15,000 to Php50,000.

Economic segment % of total population
AB 1%
C 9%
D 55%
E 35%

Source:  ACNielsen Surviving and Succeeding in Chaos and Crisis, 2004

Economic segment % of total urban Philippines
AB 2%
C 12%
D 63%
E 23%

Source:  TNS World Panel Philippines 2006

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