Studies
80/20 Rationalizations
The 80/20 rule is a statistical principle that states that 80% of results often come from approximately 20% of causes. For example, in business, it is often said that 80% of sales result from 20% of clients.In 1895, Italian economist Vilfredo Pareto published his findings on wealth distribution after he discovered that 20% of Italy’s citizens owned 80% of the country’s wealth. Since Pareto’s findings, other scholars have applied his 80/20 rule of cause and effect— also known as the Pareto principle—to a variety of situations outside of wealth distribution, including business principles and professional development.While 80/20 is the most commonly found ratio, the Pareto principle may also exist in other similar ratios, such as 70/30, 75/25 or 85/15. These values all show that a low percentage of causes affect or create a high percentage of results.
What does this mean for your business? You need to focus your energy on your A- customers and get rid of some of your B- customers. Yes...and that is a tough one for sales teams. The savings come in terms of a more focussed sales force as well as a differentiation of services.
Brand Management
"Our brand is doing just fine". We hear that a lot. But how come you can't get 15 to 20% higher prices that your biggest competitor?
We typically begin with an analysis on how your Brand is currently perceived in the market, then proceed to planning how the brand should be perceived if it is to achieve its objectives and continue with ensuring that the brand is perceived as planned and secures its objectives.
Sounds easy? No...by far not. Even within your company and your customers you will find that nothing is as clear as you expected it to be.
Brand mangement is a marathon and not a sprint. It requires razor sharp differentiation and substantial investments but it is a great investment into the future.
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Distribution Analysis
Have you recently asked your head of sales about Numeric and Weighted Distribution of their sales? Did you get some generic answers instead of an actual number? A recent study found that only 14% of US companies work with this metric.
Weighted Distribution (WD) is the percentage of stores in which a product is available, giving each a weight proportional to their sales, usually of the category considered. The weight as a percentage of WD of a large store will thus be greater than the weight in percentage of a smaller store.
Numeric Distribution (ND) is the number of outlets in which a product or reference is available, all of which being considered equal in importance. This figure in relation to the total number of points of sale in the universe studied makes it possible to obtain the numeric distribution in percentage.
We help facilitate these discussions with your sales teams and implement a process to make this an active KPI in your company's metrics
Project Name
This is your Project description. Provide a brief summary to help visitors understand the context and background of your work. Click on "Edit Text" or double click on the text box to start.
Project Name
This is your Project description. A brief summary can help visitors understand the context of your work. Click on "Edit Text" or double click on the text box to start.
