Creating Strategic Advantage With The Pareto Report

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?

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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