Strategy consultants are often engaged to analyze the market for a product line, business unit or entire company. Charts play a critical role in communicating market size, growth and segmentation. Marimekko charts are especially helpful for resenting information on differences in market segmentation by region by competitor and by product line. This toolkit presents a set of charts that map markets by competitor, product line, and geography, assess the full potential of a market, and provide an overview of market segmentation, growth and profitability.

1. MARKET ANALYSIS
David Goldstein
President, Mekko Graphics
david@mekkographics.com

2. Introduction
• Strategy consultants are often engaged to analyze
the market for a company or business unit.
• This slide deck (presentation) contains data-driven
charts that help to explain a market, focusing on the
market’s segments, its competition, its growth
potential and its profitability.
• The slides in this solution toolkit will provide charting
and data presentation ideas you can adopt for your
own work.
• Each chart is presented on two slides
• The first contains an example of how the chart is used
• The second contains an explanation of the chart and
information on how to create it
• All charts are created using Mekko Graphics; and
you can copy, edit, and reuse them in your own 2

3. Market Maps
• The first few slides in this deck contain market maps.
• These are Marimekko charts that examine the market along
two dimensions.
• These charts answer questions about market fragmentation,
market competition, and regional differences in market
penetration.
• The market maps can be a powerful tool.
• They capture in one slide some key market dynamics.
• Using colors to highlight key segments, action titles and tag
lines help focus your audience on the most important insights
to be gained from these charts.
• At first glance, these maps can be confusing, but with some
guidance they can add significant value to your analyses.
3

4. Market Map Shows Segment Size
and Degree of Fragmentation
4
Our market is highly fragmented. None of the large players compete across
multiple segments.

5. Market Map by Competitor and Segment
5
• The market map can provide an overall picture of the segments in which you
compete and who competes against you in each.
• You can determine how fragmented each segment and the overall market
is.
• The data needed for the chart is revenue for each competitor in each
segment.
• Use colors to highlight key competitors and group smaller competitors in

6. Regional Market Map Highlights
New Opportunities
6
We compete in only three European markets. Each market has a different set
of competitors, with some overlap in competition between Spain and France.

7. Market Map by Competitor and Region
7
• The market map by region shows the degree of market fragmentation in
each region and the mix of competitors that are in one and multiple regions.
• Use the analysis to consider regional expansion or regional acquisitions.
• Combine this analysis with a chart that shows growth of the market by region
or add regional growth as a data row to this chart.

8. Map of Regional Differences in
Product Penetration
8
Product use varies significantly by region with Product Line 2 dominating
Europe and Product Line 1 accounting for a large share of other regions.

9. Market Map by Product Line and Region
9
• The market map by product line and region shows the relative product
penetration in different parts of the world (or country).
• They could be accounted for by regional differences in customer product
preferences or by regional differences in competition.
• Regional variations could point out growth opportunities to introduce your
product into other regions or could highlight potential competitive threats in
different regions.

10. Assessing the Market’s Full Potential
10
• The next few slides illustrate a full potential market
analysis.
• This is a top-down approach to assess the size of the overall
market.
• Use it to estimate the potential for market growth and to
break down this growth potential by market segment.
• Contrast this approach to the bottom-up or as-is
analysis in the preceding market maps.

11. Assessing the Market’s Full Potential
11
Taking a top-down approach, the market’s full potential is about $5B with the
majority of potential revenue coming from smaller companies.

12. 100% Stacked Bar to Estimate the
Market’s Full Potential
12
• Take a top-down approach to estimate overall market size by splitting the
potential market into segments and estimating the potential of each.
• The 100% stacked bar outlines the size of each segment in terms of number of
customers and total revenue.
• Based on an estimation of spend per company per segment, calculate the
market potential of each segment and place it in the last bar.

13. Market Potential by Industry Vertical
and Customer Size
13
Between 60 and 70% of the potential of each vertical is in smaller customers
with under $50MM in revenue

14. Marimekko Chart for Market Size by
Industry Vertical and Company Size
14
• Drill down into the potential market by showing the potential market by both
industry vertical and customer size.
• Marimekko shows the two dimensions on a single chart, allowing you to
compare opportunities within each industry vertical and to determine which
size companies in which vertical to target.

15. Market Penetration by Industry Vertical
15
The largest competitor has under 20% of the potential market and all competitors
have only 45%. The automotive segment has the highest penetration.

16. Marimekko Chart for Market Penetration
for Competitors by Industry Vertical
16
• Examine the market opportunity by industry vertical by combining the current
competitors’ market share with the unpenetrated market.
• Use an average line to show the overall level of market penetration and an
axis break to reduce the size of the unpenetrated segments, if needed.
• Choose the number of competitors to show on the chart to focus the
message.

17. Market Overview
17
• The last set of slides provide approaches to give your
audience an overview of the market.
• They contain:
• A market segmentation breakdown
• An analysis of market growth by segment
• A market profitability analysis

18. Market Segmentation Overview
Our software sells into 6 major verticals. Manufacturing can be divided into 4
key markets, with high tech as a small but significant market.

19. 100% Stacked Bar Charts Segment the
Market
19
• If your audience is not familiar with the key market segments, use a 100%
stacked bar as an alternative to a pie chart to divide a market into mutually
exclusive and completely exhaustive (MECE) segments.
• The relative segment sizes are related to segment height, making it easier to
compare them.
• Use a second bar to ‘explode’ a key market into its sub-markets and color to
highlight a key market (or sub-market).

20. Market Segment Growth
20
Overall market growth was 4.7% with the medical segment seeing significantly
higher growth than the other segments.

21. Stacked Bar Chart Show Growth by
Market Segment
21
• Tracking segment growth helps to identify those segments that you might
consider targeting.
• Use a stacked bar to show growth for a relatively small number of time
periods (under 12) and an area chart for a greater number of time periods.
• Add a CAGR column and a growth line to show segment and overall growth,
respectively.
• Add multiple CAGR columns to show past and projected growth.

22. Market Segment Profitability
22
Automotive is lagging with respect to contribution, while medical is above
average.

23. Bar Mekko for Segment Profit
Contribution
23
• This Bar Mekko summarizes profit margin for each market segment in which
you compete.
• The width of the segment is proportional to segment size and the height to
profit margin.
• Use colors to highlight key segments.
• Use a similar bar-mekko to compare segment size versus segment growth.