Creating Strategic Advantage With The Pareto Report

Do you know who are your key customers?
And do you really understand them as people, not just as users of your product or service?

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Back in 1906 the Italian economist Vilifredo Pareto made the famous observation that twenty percent of the population owned eighty percent of the property in Italy. This was later generalized by Romanian born Joseph M. Juran into the Pareto principle or the 80/20 rule. In business, the principle is mostly translated as  80% of the sales come from 20% of the clients. And indeed. Looking deeper into the higher income consumers, we discovered a distinct bubble of disproportionate impact for current and future revenues.

This is the top 20% of the broad commercial target by income or the Pareto Population. Each country has a Pareto population, the most valuable consumers with a very disproportionate share of revenue in most consumer categories. They are the driving force for new products or service adoption.

Understanding their world provides important context for targeting, brand portfolio strategy choices, new product or service introductions, brand positioning, pricing strategies and integrated marketing communications. The report comes from deep experience in developing winning propositions for consumers of above average income. A comprehensive project done in 5 distinct stages enabled us to discover and understand the Pareto Population and compare it with the Broad Commercial Target through many lenses such as:

  • Who are they, how are they different from the general population?
  • How much do they earn and what are their money used?
  • What makes them tick? Which are their motives and fears?
  • How do they make their spending choices?
  • How do they see an ideal bank, car, drink, etc?
  • What’s their approach to career, parenting, free time?
  • What are their sources of information and media choices?
  • What is their ability to drive trends?
  • What do they think / feel / do about living in Romania?

Beyond the comparison of the Pareto Population and the Broad Commercial Target, an advanced analysis stage led to identification of extremely valuable new insights:

Firstly, the Pareto Population is not homogenous. In fact we have identified 5 subgroups based on their motivations and needs: Appreciation Seekers, Ambitious Achievers, YOLO/FOMO, Easy Goers and Dedicated Caregivers. The above questions are answered for each of these subgroups. Their portraits are must-have tools for works of targeting, portfolio, brand and product strategies.

Secondly, we have learned that 83% of the Early Adopters are part of the Pareto population. This group is critical for the market success of new product or service launches, and therefore we have assembled a special chapter of innovation adoption. It includes the portraits of Early Adopters, Early Majority and what separates them from the rest.

As such, the Pareto Report provides an exceptional wealth of information of various depth and with potentially different uses. We have organized it in distinct products which could be purchased separately based on your needs:.

Read further: Which Report is Right for you?

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Mihai Bârsan

Founder, Pareto Report

It all starts with a big, real, yet unmet business need. Looking deeper into the higher income consumers, we discovered a distinct bubble of disproportionate impact for current and future revenues. The top 20% of the broad commercial target by income or the Pareto Population. These consumers are nevertheless seriously under-represented in most trackers, U&As, segmentations etc. That’s what The Pareto Report was born for: strategic insight into the most valuable 20%. 

Răzvan Orbulescu

Marketing DirectorFrieslandCampina Romania

We are all operating in a fast paced environment where customizing strategies became a must have for any successful business. In this context, having granular knowledge about our consumers is critical, allowing brands to uncover insights that are distinctive enough to be effective, and do that fast. By looking at the top 20% of the Romanians by income, the Pareto report does just that, but it also offers a unique view on how the future trends may be shaping.

Laura Mihăila

Head of Marketing – BCR

The Pareto Report is marketing research news: profiling a target segment that is very attractive, but not granularly detailed in the market studies we frequently commission. The BCR marketing team was nothing short of enthusiastic about the professionalism of the team involved, the data reliability but especially the high actionability of the customer insights we were able to get through this study. The Pareto Report was rapidly embraced by the organisation, already “The Paretos” as a customer target group appears currently in our business conversation.

Dragoș Anastasiu

Owner/CEO Eurolines Grup
Founder Rethink Romania

There are many conditions of durable business success. Top ranking are knowing your customers and focusing your resources where it matters most. The Pareto Report helps you address both these conditions at the same time with essential information about the top 20% of the Romanians by income, the most valuable consumers in most B2C markets. A study of an exceptional value for businesses, both entrepreneurs and corporations.

Which report is right for you?

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The Pareto White Paper Report

A streamlined but comprehensive portrait of the Pareto Population in Romania, the English language version.

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The Pareto Gold Report

A multi-faceted portrait of the Pareto Population in Romania and a full chapter on Innovation Adoption.

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The Pareto Black Report

A full portrait of the Pareto Population including deep dive into 5 motivational subtypes and the Innovation Adoption chapter

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An ample research programme which is both comprehensive and engaging.

We have designed a syndicated research programme to uncover the Pareto world. The guiding principles: meticulousness through rock-solid methods, reliability by large sample and uncovering AHA insights by asking the right questions across stages.

  • 1. Set a solid ground
    • rp-1 icon Desk research on income statistics
    • rp-2 icon Income survey on 1400 Romanians
  • 2. Explore the unknown
    • rp-3 icon In-depth interviews (n=20), 2-3 hrs each
    • rp-4 icon 5 days netnographies (n=10)
  • 3. Dimension the known
    • rp-5 icon Online study on Pareto representation sample (n=900)
    • rp-6 icon Broad Commercial Target (n=500) as benchmark
  • 4. Light up opportunities
    • rp-7 icon Rich insights reports
    • rp-8 icon Opportunity assessment workshops

Considerations on research limitations:

Representativity
  • Current study is representative for BCT and Paretos, while not mirroring the audience below 18yo and over 65 yo, nor the non-Internet users (22% excluded on this principle).
  • We assume an auto-selection bias, implied by the fact that respondents with higher completion willingness were first to be considered in the sample.
Subjectivity
  • The study presents perceptions of respondents about themselves, about things around them, and does not reflect an objective reality.
  • We assume a desirability bias, respondents mentioning things they like to believe are truthful, which are not necessarily truthful.
Comparability
  • The study is a snapshot of a precise moment (Sep 2021), and does not include evolutions across time.
  • The study is a snapshot of Romania and does entail comparisons with other markets.