Market Compass: Bulgarian Lifestyles 2009
In Market Compass: Bulgarian Lifestyles 2009 you will find a consumer map of Bulgaria which gives a clear view beyond demographics. By describing both consumers’ behaviour and motivation, this report provides knowledge that will improve the accuracy of marketing forecasts and will refine product-specific segmentation.
The analysis begins with a macroeconomic preview of Bulgaria. It outlines the dynamics of the local environment in which consumer lifestyles develop.
The report continues with the three main factors that drive the segmentation of Bulgarian consumers. As expected, social status is the most significant factor. The second factor is the attitude towards the world and new technologies. It determines to what extent people feel they are a part of the world and alter their lifestyle accordingly or whether they choose to be more conservative. The third factor that probably gives the most interesting view of the people’s lives is the attitude towards family values and heritage. We discovered that this factor is a good proxy for consumer self-confidence which is also an important driver of market behavior.
On the basis of these three factors seven lifestyle groups were determined:
The analysis begins with a macroeconomic preview of Bulgaria. It outlines the dynamics of the local environment in which consumer lifestyles develop.
The report continues with the three main factors that drive the segmentation of Bulgarian consumers. As expected, social status is the most significant factor. The second factor is the attitude towards the world and new technologies. It determines to what extent people feel they are a part of the world and alter their lifestyle accordingly or whether they choose to be more conservative. The third factor that probably gives the most interesting view of the people’s lives is the attitude towards family values and heritage. We discovered that this factor is a good proxy for consumer self-confidence which is also an important driver of market behavior.
On the basis of these three factors seven lifestyle groups were determined:
- The Active - highest social status, interest in the world and new technologies, respect for family values and heritage. They are the 9% of the society who work actively for their success and achieve it.
- The Content - higher social status, interest in the world and new technologies, respect for family values and heritage. They are similar to the Active in their lifestyle though the main difference is that they feel they have achieved a lot and they are satisfied with their status.
- The Indifferent – higher social status, interest in the world and new technologies, lack of family values and heritage. The lack of self-confidence and pride of the Indifferent makes them apathetic and passive in their lifestyle - no clear goals and motivation for development.
- The Passive – average social status, average interest in the world and new technologies, average respect for family values and heritage. They are people who prefer to follow, and yet, do not like to stay far behind. They try not to demonstrate extreme positions in thinking or behaviour.
- The Rejective – lowest social status, lack of interest in the world and new technologies, lack of respect for family values and heritage. The lack of self-confidence and pride leads to contempt towards the world and to denial of the new, the old and the current.
- The Positive – lower social status, interest in the world and new technologies, respect for family values and heritage. The greater openness of the Positive gives them a deeper and more exploring vision of life despite of the constrained budget.
- The Confined – lower social status, lack of interest in the world and new technologies, respect for family values and heritage. They focus their lives on their home and family.
1. GOALS OF THE REPORT
1.1 Situation
1.2 Goals and tasks of the report
1.3 Organization of the report
2. EXECUTIVE SUMMARY
3. MACROECONOMIC FRAME OF BULGARIA
3.1 Basic macroeconomic indicators
3.2 Demography
Age structure
Age structure by place of residence
Forecast about the age structure in 2016
Marriages, divorces and marriages, divorces and birth rate
Household typology
Employment and income
A trend of an emerging middle class in Bulgarian society, but the process is still in an early stage
3.3 Inflation
4. METHODOLOGY AND BACKGROUND OF THE GENERIC SEGMENTATION
4.1 Factor analysis
Methodology
Statistical factor analysis, that defines three fundamental factors of consumers’ way of thinking and behaviour
Influence of the factors
Analysis of the weight of the factors that define the consumer and life motivation of the Bulgarian population
4.2 Definition of the generic groups
Methodology
Cluster analysis that discovers the seven groups of consumers with homogeneous way of life
Social class differentiation
The first attempt to match the seven generic groups to the different steps of the socio-economic ladder
4.3 Location of the groups with respect to the factors, that define them
Coordinate system
4.4 Format of the research
5. CONSUMER SEGMENTATION
5.1 Active
Values and attitudes
The challenges, brought on by the future and the unknown, is the fuel that energizes and motivates them
Demography
Their higher education and age give them an opportunity to have more choices for work, to reach higher positions on the social ladder and to develop their abilities
Home and household possessions
Personal finance
Household purchases
Food and beverages
Their menu is diversified because their higher income and open-mindedness remove the barrier of the risk of trying new products
Personal purchases
Personal care
Free time
Traveling and vacations
The new wave of spending holidays overseas is mainly driven by people of this cluster
Transport
Media consumption
Internet
Expenditures
5.2 Content
Values and attitudes
The strong devotion to their heritage gives them comfort and self-confidence, that they have found their place in society
Demography
Home and household possessions
Personal finance
Household purchases
They prefer appliances with maximum features
Food and beverages
Personal purchases
Personal care
Connected to passive activities like drinking lots of water, relaxing, keeping track of weight
Free time
Traveling and vacations
Transport
Personal car is the most popular vehicle
Media consumption
Traditional media – radio and daily press – play a significantly more important role
Internet
Expenditures
5.3 Indifferent
Values and attitudes
The lack of values and any sense of belonging whatsoever deprive them of history and identity in the world that they are headed for
Demography
This is the youngest cluster with average age of 34,2 years
Home and household possessions
Personal finance
Household purchases
Food and beverages
It doesn’t matter if the products give them variety in eating, if they are healthy, rich and with less fat
Personal purchases
The most significant category is mobile phones
Personal care
Free time
The most popular activities are going out with friends or surfing on the computer
Traveling and vacations
Transport
Media consumption
The only cluster in which there are some people who say that they do not seek to inform themselves
Internet
Expenditures
5.4 Passive
Values and attitudes
People whose behaviour pattern is to follow – never falling behind but also never leading
Demography
Home and household possessions
Personal finance
Household purchases
Food and beverages
Personal purchases
They have a practical view towards clothing – they change it when it wears out
Personal care
Free time
Traveling and vacations
Transport
Media consumption
Internet
They feel uncertain about new things and this reflects on the way they use the Internet
Expenditures
5.5 Positive
Values and attitudes
People with contemporary attitudes but constrained resources
Demography
Home and household possessions
Lack of a home mortgage is characteristic of the cluster
Personal finance
13% save and 14% were granted consumer loans
Household purchases
Food and beverages
Personal purchases
Personal care
The right way of eating and regular medical exams are the key to good outer appearance and health
Free time
Family is the center of their world and everything revolves around it
Traveling and vacations
Transport
The main vehicle that they use is the bus
Media consumption
Internet
Expenditures
No matter how little money remains after covering their necessary expenditures, they always save for gifts for their relatives
5.6 Confined
Values and attitudes
Locked from the world and turned exclusively to the family
Demography
They are the eldest group
Home and household possessions
Personal finance
Household purchases
Food and beverages
They are not interested in the nutritional value of the products
Personal purchases
Personal care
Free time
Traveling and vacations
Transport
Media consumption
Internet
Expenditures
5.7 Rejective
Values and attitudes
Offended by the world, they actively avenge it by not accepting anything from it
Demography
The highest share of unemployed people in active age
Home and household possessions
Personal finance
Household purchases
Food and beverages
Personal purchases
Personal care
Free time
Traveling and vacations
Transport
Media consumption
They inform themselves through TV and radio
Internet
Expenditures
They spend about half of their disposable income on cigarettes, alcohol and mobile phone services
6. COMPARISON BETWEEN THE SEGMENTS
6.1 Behavior of the segments in the different spheres of life
Who are the people in a certain market, what’s common between them and what’s different?
6.2 Relative distribution of the budgets of different clusters
What part of the income of each group is spent on various products and services?
6.3 Distribution of purchases/consumption by segments
How does the size of a segment, together with its activity, reflect on the overall profile of the consumer in a certain market?
7. APPENDIX
1.1 Situation
1.2 Goals and tasks of the report
1.3 Organization of the report
2. EXECUTIVE SUMMARY
3. MACROECONOMIC FRAME OF BULGARIA
3.1 Basic macroeconomic indicators
3.2 Demography
Age structure
Age structure by place of residence
Forecast about the age structure in 2016
Marriages, divorces and marriages, divorces and birth rate
Household typology
Employment and income
A trend of an emerging middle class in Bulgarian society, but the process is still in an early stage
3.3 Inflation
4. METHODOLOGY AND BACKGROUND OF THE GENERIC SEGMENTATION
4.1 Factor analysis
Methodology
Statistical factor analysis, that defines three fundamental factors of consumers’ way of thinking and behaviour
Influence of the factors
Analysis of the weight of the factors that define the consumer and life motivation of the Bulgarian population
4.2 Definition of the generic groups
Methodology
Cluster analysis that discovers the seven groups of consumers with homogeneous way of life
Social class differentiation
The first attempt to match the seven generic groups to the different steps of the socio-economic ladder
4.3 Location of the groups with respect to the factors, that define them
Coordinate system
4.4 Format of the research
5. CONSUMER SEGMENTATION
5.1 Active
Values and attitudes
The challenges, brought on by the future and the unknown, is the fuel that energizes and motivates them
Demography
Their higher education and age give them an opportunity to have more choices for work, to reach higher positions on the social ladder and to develop their abilities
Home and household possessions
Personal finance
Household purchases
Food and beverages
Their menu is diversified because their higher income and open-mindedness remove the barrier of the risk of trying new products
Personal purchases
Personal care
Free time
Traveling and vacations
The new wave of spending holidays overseas is mainly driven by people of this cluster
Transport
Media consumption
Internet
Expenditures
5.2 Content
Values and attitudes
The strong devotion to their heritage gives them comfort and self-confidence, that they have found their place in society
Demography
Home and household possessions
Personal finance
Household purchases
They prefer appliances with maximum features
Food and beverages
Personal purchases
Personal care
Connected to passive activities like drinking lots of water, relaxing, keeping track of weight
Free time
Traveling and vacations
Transport
Personal car is the most popular vehicle
Media consumption
Traditional media – radio and daily press – play a significantly more important role
Internet
Expenditures
5.3 Indifferent
Values and attitudes
The lack of values and any sense of belonging whatsoever deprive them of history and identity in the world that they are headed for
Demography
This is the youngest cluster with average age of 34,2 years
Home and household possessions
Personal finance
Household purchases
Food and beverages
It doesn’t matter if the products give them variety in eating, if they are healthy, rich and with less fat
Personal purchases
The most significant category is mobile phones
Personal care
Free time
The most popular activities are going out with friends or surfing on the computer
Traveling and vacations
Transport
Media consumption
The only cluster in which there are some people who say that they do not seek to inform themselves
Internet
Expenditures
5.4 Passive
Values and attitudes
People whose behaviour pattern is to follow – never falling behind but also never leading
Demography
Home and household possessions
Personal finance
Household purchases
Food and beverages
Personal purchases
They have a practical view towards clothing – they change it when it wears out
Personal care
Free time
Traveling and vacations
Transport
Media consumption
Internet
They feel uncertain about new things and this reflects on the way they use the Internet
Expenditures
5.5 Positive
Values and attitudes
People with contemporary attitudes but constrained resources
Demography
Home and household possessions
Lack of a home mortgage is characteristic of the cluster
Personal finance
13% save and 14% were granted consumer loans
Household purchases
Food and beverages
Personal purchases
Personal care
The right way of eating and regular medical exams are the key to good outer appearance and health
Free time
Family is the center of their world and everything revolves around it
Traveling and vacations
Transport
The main vehicle that they use is the bus
Media consumption
Internet
Expenditures
No matter how little money remains after covering their necessary expenditures, they always save for gifts for their relatives
5.6 Confined
Values and attitudes
Locked from the world and turned exclusively to the family
Demography
They are the eldest group
Home and household possessions
Personal finance
Household purchases
Food and beverages
They are not interested in the nutritional value of the products
Personal purchases
Personal care
Free time
Traveling and vacations
Transport
Media consumption
Internet
Expenditures
5.7 Rejective
Values and attitudes
Offended by the world, they actively avenge it by not accepting anything from it
Demography
The highest share of unemployed people in active age
Home and household possessions
Personal finance
Household purchases
Food and beverages
Personal purchases
Personal care
Free time
Traveling and vacations
Transport
Media consumption
They inform themselves through TV and radio
Internet
Expenditures
They spend about half of their disposable income on cigarettes, alcohol and mobile phone services
6. COMPARISON BETWEEN THE SEGMENTS
6.1 Behavior of the segments in the different spheres of life
Who are the people in a certain market, what’s common between them and what’s different?
6.2 Relative distribution of the budgets of different clusters
What part of the income of each group is spent on various products and services?
6.3 Distribution of purchases/consumption by segments
How does the size of a segment, together with its activity, reflect on the overall profile of the consumer in a certain market?
7. APPENDIX
