CNRS Model: Lifestage Segmentation

CNRS Model TGI Lifestage Segmentation: Understanding and Targeting Beyond Standard
Demographic Audiences
The most efficient way of segmenting consumers varies from market to market. However, a method
that underlies many markets, especially in China is Lifestage i.e the stage that an individual has
reached reflected both by their age and the composition of their household.
% Adult Population
TGI Lifestage Group
Fledglings
Demographic Description
in Group
15-13, not married, two generations in the household
11.8%
15-34, not married, on generation in the household
4.28%
15-34, married, one generation in the household
5.09%
Playschool Parents
Two generations in the household, have children 0-6 years old
10.2%
Primary School Parents
Two generations in the household, have children 7-11 years old
7.20%
Secondary School Parents
Two generations in the household, have children 12-14 years old
4.60%
35+, have children, more than one generation in the household
2.94%
Flown the Nest
Nest Builders
Juggling Parents
35-54, two generations in the household, no children of 0-14 years
Mid-life Mature Parents
18.4%
old
Mid-life Independents
Unconstrained Couples
Older Mature Parents
Senior Sole Decision Makers
Empty Nesters
35-54, not married, one generation in the household
0.99%
35-54, married, one generation in the household
7.93%
55+, no children on 0-14, two generations in the household
5.57%
55+, not married, one generation in the household
0.76%
55+, married, one generation in the household
7.93%
Non-classified (none of the
12.2%
above)
None of the above
TGI determines all of this information at the face-to-face interview stage of its data collection
process and, after the self-completion stage is completed, overlays it on the database in the form of
a thirteen segment Lifestage classification. This way of describing the population then has its
discriminatory capabilities further enhanced by combining it with other discriminating factors such
as level of education.
Dividing the population using these lifestage classifications can provide significant insight into how
consumers can be targeted by different brands. Brands can target people at different stages of
their consumer life and focus on reaching consumers through their preferred media.
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By looking at the graph you can
see that Juggling Parents are
the group most likely to have
health insurance as they are
47% more likely than average to
have it. The next most likely
groups are Secondary School
Parents (36%), Primary School
Parents (30%) and Playschool
Parents (26%). Understanding
the type of people who are more
likely to have health insurance
and what stage of their life they
are in can be important for both health insurance providers but also to other brands. This is
because it can indicate what type of person they are. People who have health insurance are often
more risk adverse. This fits in with the lifestage groups who are more likely to have health
insurance as they have young children and so have a loved one to protect.
The lifestage segmentation is very useful when combined with the TGI Socio-Economic Levels
(SEL). As SEL levels are another tool which can be used to segment the market, it is interesting to
combine the tools. SEL splits the Chinese population into 4 different groups with Level 1 being the
most affluent and having the highest levels of education.
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Looking at the graph above it is interesting to see how people in different lifestages are in different
socio-economic groups. If we look at the different ends of the lifestage and socio-economic scales
we can see that Playschool Parents are 65% more likely to be in Socio-Economic Level 1. At the
other end of the lifestage scale are Empty Nesters who are 32% less likely than average to be in
SEL 1 and 85% more likely than average to be in SEL 4; the least affluent group.
The number of Empty Nesters may be increasing due to the ageing population in China. This could
be interesting to brands as the purchasing power, patterns and priorities of the Playschool Parents
and Empty Nesters will be very different. This could be of particular importance to brands of more
“luxury” status such as cosmetics as they are not a necessity. For example Playschool Parents are
19% more likely than average to agree that “I’d rather spend less on other things than on skincare.”
However, Empty Nesters are 31% less likely than average to agree with the statement and
prioritise spending on cosmetics.
Therefore, brands will need to market their product differently to the different groups. Empty
Nesters may become particularly important to brands as their number increases in future years.
Lifestage is an important tool which could be useful to many different types of brands as it allows a
brand to target people at a certain stage of their life. This can help many brands focus on the
correct group of target consumers as people reach different stages of their lives at different times
and their lifestage affects their purchasing patterns significantly.
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