Heart of the Market
This term refers to the total unit volume of a market in the Primary and Secondary role positions with the Very Large and Large customers.
Heart of the Market Example #1Customer Size/Supplier Role Matrix
Building Insulation Market Sales to Retailers Market Share by Position
Explanation: Overall, the industry gives 83% of its purchases to the Primary Supplier, 16% to the Secondary and only 1% to the Tertiary. Very Large Customers in this industry give more than average purchase volume to the Secondary Supplier.
The Heart of the Market: has
83% of this industry's total volume.
| Heart of the Market Example #2 |
Customer Size/Supplier Role Matrix
Building Insulation Market Sales to Contractors
Market Share by Position
Explanation: These contractors are customers who purchase and install the product for end users. In this market, the average Primary Supplier controls 73% of the customer's total purchases, the Secondary Supplier controls 14% of the volume, and the Tertiary/Other Supplier controls 13% . Very Large Customers are the main customers purchasing from Tertiary/Other Suppliers. These customers require three and sometimes more suppliers in order to cover all of their geographic regions and to meet all of their special product needs.
The Heart of the Market: has
69% of this industry's total volume.
| Heart of the Market Example #3 |
Customer Size/Supplier Role Matrix
Gypsum Market
Market Share by Position
Explanation: Overall, the Primary Supplier controls 65% of the industry's volume, while Secondary, Tertiary and Other Suppliers control 21%, 8% and 6% respectively. Very Large and Large Customers need more than three suppliers in order to cover their geographic requirements because gypsum is expensive to ship.
The Heart of the Market: has
66% of this industry's total volume.
| Heart of the Market Example #4 |
Customer Size/Supplier Role Matrix
Credit Card Processing Industry
Market Share by Position
Explanation: Only Very Large Customers have Secondary Suppliers. Often, this is due to a historical legacy relationship that has yet to be consolidated, as few customers want to have more than one supplier for their credit card processing.
The Heart of the Market: has
75% of this industry's total volume.
| Heart of the Market Example #5 |
Customer Size/Supplier Role Matrix
Disposable Diaper Industry Sales to Consumers
Market Share by Position
Explanation: We have combined Very Large and Large Customers and also Medium and Small Customers. Consumers, overall, give 81% of their purchase volume to the Primary Suppliers. However, Very Large and Large Customers spread their purchases out to a greater extent, often in search of lower prices.
The Heart of the Market: has
75% of this industry's total volume.
| Heart of the Market Example #6 |
Customer Size/Supplier Role Matrix
Disposable Diaper Industry Sales to Retailers (Intermediary Customers)
Market Share by Position
Explanation: The Primary Supplier controls only 40% of the industry's total volume, while the Secondary controls a strong 30%. This reflects the close market share race between Procter & Gamble and Kimberly Clark, who lead the industry. Tertiary and Other Suppliers, which are also relatively strong in this industry, offer special products and private labels to support the retailer.
The Heart of the Market: has
56% of this industry's total volume.
| Heart of the Market Example #7 |
Customer Size/Supplier Role Matrix
Consumer Credit Card Industry
Market Share by Position
Explanation: This industry has an additional size category for Ultra Large Customers. Ultra Large Customers have distinct purchasing patterns, and they spend significantly more on credit cards than do Very Large Customers. As a result, we placed them in a separate size category in the industry. Overall, credit card users give 83% of their total credit card purchases to their Primary card, 13% of their second card, and 4% to their third card.
The Heart of the Market: has
76% of this industry's total volume.
| Heart of the Market Example #8 |
Customer Size/Supplier Role Matrix
Personal Computer Industry Sales to Retailers
Market Share by Position
Explanation: This industry has a separate category for Ultra Large Customers who purchase in a different manner than do Very Large Customers. Overall, in this industry the Primary Supplier gets 75% of the average customer's purchases, the Secondary Supplier receives 20% and the Tertiary 5%.
The Heart of the Market: has
76% of this industry's total volume.
| Heart of the Market Example #9 |
Customer Size/Supplier Role Matrix
Coated Paper Industry
Market Share by Position
Explanation: Paper is expensive to ship, and manufacturers' capabilities and quality of product can vary from one region of the country to another. As a result, most Very Large, Large and Medium Customers have three or more suppliers in order to meet all their needs. Overall, the industry's customers give 47% of their purchases to the Primary Supplier, 24% to the Secondary, 13% to the Tertiary and 16% to Other Suppliers.
The Heart of the Market: has
53% of this industry's total volume.
| Heart of the Market Example #10 |
Customer Size/Supplier Role Matrix
Commercial Printing Industry
Market Share by Position
Explanation: Larger customers in this industry tend to use three or more suppliers in order to cover all of their printing needs and geographical locations. Overall, the industry's customers assign 67% of their total purchases to the Primary Supplier, 17% to the Secondary, 7% to the Tertiary and 9% to Other Suppliers.
The Heart of the Market: has
65% of this industry's total volume.
| Heart of the Market Example #11 |
Customer Size/Supplier Role Matrix
Truck Manufacturing Industry
Market Share by Position
Explanation: Customers in this industry tend to concentrate their purchases with one manufacturer, assigning 83% of total purchases to the Primary Supplier, 13% to the Secondary and 4% to the Tertiary.
The Heart of the Market: has
76% of this industry's total volume.
| Heart of the Market Example #12 |
Customer Size/Supplier Role Matrix
Commercial Healthcare Market in California
Market Share by Position
Explanation: Most customers in this market maintain three or more suppliers in order to offer their employees sufficient coverage and choice among suppliers. Overall, the industry's customers give 62% of their total purchase volume to the Primary Supplier, 22% to the Secondary, and 16% to the Tertiary and Other.
The Heart of the Market: has
66% of this industry's total volume.
| Heart of the Market Example #13 |
Customer Size/Supplier Role Matrix
Less-Than-Truck Load Industry
Market Share by Position
Explanation: This industry has strong regional suppliers competing with national suppliers. As a result, many of the larger customers have more than three suppliers in order to optimize shipping times and costs in all of their geographic regions. Overall, the Primary Supplier wins 55% of the average customer's business, the Secondary 25.5%, the Tertiary 9.5% and Other Suppliers 10%.
The Heart of the Market: has
63.5% of this industry's total volume.