| dc.description.abstract | The purpose of this thesis is to explore whether and how marketing practitioners
use the Pareto Principle by studying the thesis statement: “The Pareto Principle:
The opportunities and consequences for FMCG brands of relying on a Paretodistributed
small core of consumers for a large portion of sales.” This study
explores the existence and use of the principle in terms of labeling, segmentation,
detriments, and potential of the trivial many. This is done through an exploratory
qualitative study using semi-structured interviews of marketing practitioners within
the FMCG industry in Norway. The findings indicate that marketing practitioners
are generally unaware of the term Pareto Principle and refer to it as the 80/20 rule.
They have limited knowledge about the small core, and therefore do not consider
the principle when conducting marketing activities. Further, marketers feel a sense
of responsibility towards their consumers and are concerned about the health and
environmental impact of consumers’ overconsumption. Finally, the findings show
that marketing practitioners are not dependent on the small core, in contrast to the
assumption of academics, and believe in the potential of the trivial many. One
implication of this study for marketing practitioners is that a data-driven approach
should be taken to identify the small core and the trivial many. This approach would
allow for usage-based segmentation and effective targeting in order to increase the
potential sales from both groups. Another implication is that marketers should be
aware of the potential detrimental effects of heavy use; a balance should be struck
between wanting to sell their products and selling something that is not detrimental
to consumers.
Keywords: Pareto Principle, 80/20 rule, marketing practitioners, FMCG | en_US |
