I returned today from my travel, due to which the gap in writing the post.
Today's topic is related with consumer segmentation. Indonesia is a large country and for a marketer it is essential to categorize the consumers to be able to target effectively. In some countries ethnicity is an important determinant, while in other religious preferences play a dominant role. Given the geographical spread of the country it is possible to categorize the consumers based on the different islands or provinces.
However, in spite of the geographical spread, various ethnicity and religious preferences the consumer preferences correspond more closely to the income group than any other factors. This means that the purchasing decisions of a consumer is more due to the income than lifestyle or local culture.
Thus, the urban and rural classification is a good starting point for segmentation. Urbanization is on the rise in this country, steadily increasing from 31% in 1990 to 51% in 2012 (Comparative numbers - In 2012 China's and India's urban population stood at 51% and 32% respectively). And the rate of urbanization is around 2.45% (Source: https://www.cia.gov/library/publications/the-world-factbook/fields/2212.html). As per the UN the urban population of Indonesia is expected to increase to 68% by 2030.
Top 5 of the largest cities are - Jakarta, Surabaya, Bandung, Bekasi, and Medan - which accounts for around 17-18% of the total urban population.
Today's topic is related with consumer segmentation. Indonesia is a large country and for a marketer it is essential to categorize the consumers to be able to target effectively. In some countries ethnicity is an important determinant, while in other religious preferences play a dominant role. Given the geographical spread of the country it is possible to categorize the consumers based on the different islands or provinces.
However, in spite of the geographical spread, various ethnicity and religious preferences the consumer preferences correspond more closely to the income group than any other factors. This means that the purchasing decisions of a consumer is more due to the income than lifestyle or local culture.
Thus, the urban and rural classification is a good starting point for segmentation. Urbanization is on the rise in this country, steadily increasing from 31% in 1990 to 51% in 2012 (Comparative numbers - In 2012 China's and India's urban population stood at 51% and 32% respectively). And the rate of urbanization is around 2.45% (Source: https://www.cia.gov/library/publications/the-world-factbook/fields/2212.html). As per the UN the urban population of Indonesia is expected to increase to 68% by 2030.
Top 5 of the largest cities are - Jakarta, Surabaya, Bandung, Bekasi, and Medan - which accounts for around 17-18% of the total urban population.
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