The
numbers inside the pyramid represent the percentage of
consumers in each segment, expressed in whatever fashion
reported in the data source e.g. adults, households, women,
men. In the above example, the high-value segment is twenty-two
percent of all adults. The forty-five percent of adults
do not use this category constitute the no-profit segment.
The
numbers to the left of the pyramid represent the percentage
of the total value in the market accounted for by each
segment over an extended period of time, most often a
year. Value can be measured in a variety of ways, such
as sales, units, pounds, ounces, or usage occasions. In
the above example, the high-profit segment accounts for
79% of all category value.
The
numbers to the right of the pyramid are an index of the
value of each consumer in the segment versus the average
buyer or user, whose index is set at 100. In the above
example, a high-profit consumer indexes at 199, signifying
that they are twice as valuable as the average. A medium-profit
consumer is only about half as valuable as the average
consumer, thus indexing at 47.
By
browsing through the DFM pyramids for a variety of categories,
the core truth of DFM will become self-evident. In virtually
every category of goods or services, a relatively small
percentage of consumers controls the overwhelming majority
of sales. These are the big fish in the market that every
marketer needs to catch.
Food
& Beverage
Household
Products
Personal
Products
Less
Frequently Purchased Products
Considered
Purchases
Financial
Services
Other
Services
International
Business
to Business
To
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