Knowing the C-D-E consumers better

Get the upper AB market because they have the disposable income. This is the textbook advice for anybody in manufacturing or distribution.

ACNielsen Phils. Inc. director Susan Macion says otherwise. Based on the results of the pilot test run of ACNielsen’s homepanel services, Class C,D and E are the markets to deal with. The pilot test run monitored the buying habits of 4,200 homes in the Greater Manila Area for six weeks from July to September.

Here are some of ACNielsen’s findings:

* the D and E markets, which made up 74% of the household population surveyed, accounted for 46% of total money spent in buying grocery items like laundry bars, beverages, shampoos and instant noodles;

* the C market, which made up 22% of households surveyed, accounted for 39% of the total grocery spending; and

* the A and B markets, which made up 4% of the household population, accounted for 15% total purchases.

The survey showed a household made an average four trips a week to the store. This is because the C, D and E markets do not have enough cash to buy a lot of consumer goods in one shot. To stretch their budgets, they buy small packets or sachets of consumer products such as coffee and shampoo. The A and B markets do their groceries once a week or less in a month.

These results also showed the sari-sari stores continue to be very important outlets for manufacturers and distributors, largely because of the patronage of the C, D and E markets.

Mercury drugstore, which has a mini grocery, was the most frequented establishment (30%), followed by SM supermarket (18%) and 7-Eleven (12%). Small stores and groceries accounted for the rest.

Methodology

"Worldwide, market research plays an important role. Such firms are now considered as business partners and the results from such studies are used as a basis for overall planning and strategizing," said Macion.

For its GMA survey, data were culled from the homepanel diaries of households who have agreed to be included in the ACNielsen survey. Under the set up, members of the recruited households jot down in their diaries whatever purchases they have made.

This allows AC Nielsen to track down how the average Filipino households are buying and from what outlet they are making their purchases.

Because it already has a retail panel service which shows how a brand performs in various outlets, including the sari-sari stores and supermarkets, ACNielsen is able to integrate the results of the two services to come up with a comprehensive insight into the preferences of consumers.

Take the case of instant noodles, which is experiencing unprecedented sales. While it is also bought by the AB markets to enhance the menu, instant noodles is considered a staple item among the C,D and E markets. "We can see here the differences in lifestyle of the AB markets and of the C,D and E markets," said Macion. "Since the A and B markets have more disposable income, they eat out more often. They do not need to stock up on instant noodles."

ACNielsen’s homepanel service was formally launched last month. This early, ACNielsen already plans to monitor more products and categories when to go full blast in January 2002.