Kash and Calhoun, authors of How Companies Win, further suggest that there is a niche within any industry that represents no more than 10% of the total customers but holds a disproportionate percentage of the profit — what are termed profit pools. For instance, in the dog food industry, Kash’s team segmented the market based on the relationship between an owner and her dog (vs. the size of the dog) and found a group of owners they labeled “performance fuelers.” These are owners who are active — biking, hiking, jogging, and running — and want their dog with them. Though they represent only 7%
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