CHART SELECTION WEBINARHow To Choose The Right Chart For Your Audience

David GoldsteinPresidentMekko GraphicsOctober 20, 2015

2

Last Week’s Customer Question…

Mr. Goldstein or Whom it May Concern,  How to easily show taking market share away from competition over a set (i.e. 5 year) period of time? The example comes to mind when I tried to show this information in a 5-year strategic plan covering pure share gain. I ended up listing each customer’s CAGR, but it was still difficult to determine who/where we would be taking market share from.

Regards,

And My Reply…

3

I would suggest trying a 100% stacked bar chart like the one attached.  You can see share change for each company and you can see the CAGR. 

0%

20%

40%

60%

80%

100%

20153%

41%

44%

13%

$11.1M

20165%

44%

38%

13%

$13.0M

2017

11%

35%

35%

20%

$14.1M

2018

13%

31%

28%

29%

$15.7M

2019

27%

29%

17%

28%

$16.2M

55%

-7%

-17%

17%

2015-2019CAGR

My Company

Competitor1

Competitor2

Competitor3

Track

Compare

Segment

Types of Charts

4

Start by understanding what you’re trying to do.

Types of Questions

5

Often this is easier to assess if you think about the questions you’re trying to answer.

How do sales compare to previous periods?How have earnings changed?What has contributed to the change?

How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?

What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?

Track

Compare

Segment

6

How has revenue changed?Add a growth line to show change over the time period and a CAGR column to show annual growth rate.

0

2

4

$6B

2011

$1.6B

2012

$2.1B

2013

$2.9B

2014

$3.8B

2015

$5.0B

+223%

34%

CAGR

+223%

2011-2015

How are sales tracking vs. prior weeks?Add enhancements like a target line or rolling average to give additional context.

0

50

100

150

$200K

Target $85K

5/16

$110K

5/23

$99K

5/30

$112K

6/6

$99K

6/13

$145K

6/20

$156K

6/27

$125K

7/4

$99K

7/11

$105K

7/18

$89K

Target $85K

10 week Rolling Average

7

8

How do sales compare to other products?

Use a line chart to emphasize overall trends. Adding the data row helps the audience understand how growth rates have changed.

0

50

100

150

Millions of Units

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

-15% -18%125% 389% 411% 75% 31% 6% -1% -7%iPod Growth81% 77%729% 78% 93%iPhone Growth

iPod Units

iPhone Units

What’s driving the change?Use cascade charts to show how products or regions contributed to the change between the two time periods.

Growth by Product

Q2 2014

$45.6B

iPhone

$14.2B

iPad

-$2.2B

Mac

$0.1B

Other

$0.2B

Q2 2015

$58.0B

Growth by Region

Q2 2014

$45.6B

Americas

$3.3B

Europe

$1.3B

Greater China

$7.0B

Rest of Asia

$0.8B

Q2 2015

$58.0B

9

Which items had the biggest impact on cash flow?Use a cascade to walk the audience through each step. Show positive contributions as green and negative as red.

0

1,000

2,000

3,000

4,000

$ Millions

Beginning Cash

782

ESOP

873

Def. Revenue

799

D&A

706

Other

270

Loan Proceeds

297

Loan Pmt

-854

Net Securities

-537

Change in A/R

-545

-321

CapEx

-290

Net Loss

-273

Ending Cash

908

Def. Commissions

10

Types of Questions

11

Often this is easier to assess if you think about the questions you’re trying to answer.

How do sales compare to previous periods?How have earnings changed?What has contributed to the change?

How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?

What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?

Track

Compare

Segment

12

How do our retention rates compare?Use color to distinguish between business and consumer products or services and add an average line to highlight over and under performance.

30

40

50

60

70

80

90

100%

Retention Rate

Average 82%

VMWare

100%

SAP

98%

Oracle

95%

Intuit Payroll

85%

CRM

85%

Turbotax

74%

Cable

80%

Wireless Postpaid

80%

Wireless Prepaid

40%

Average 82%

BusinessConsumer

Which product category hasthe biggest upside?Use net lines to show current forecasted performance as a second series.

0

10

20

30

40

50%

% of Total Sofware Revenue

CRM

45%

40%

HRM

39%

30%

ERP

10%

3%

SCM

24%

9%

Business Intelligence

7%

3%

45%

39%

10%

24%

7%

Current Cloud Penetration Forecasted Cloud Penetration

13

How does technology use varyby generation?You can use a series of bar charts to show comparisons on different market research questions.

Silent 6%

Baby Boomer 30%

Gen X 50%

Millennials 75%

Have a Profile on Social Networking Site

11%

35%

48%

62%

Use Wireless Internet Away from Home

20%

50%

68%

86%

Sleep with a Cell Phone

14

Where are labor costs the highest?A bar mekko allows you to show a second metric, GDP in this case, to help the audience see the relative importance of each bar.

Average €25

€54

€39€37

€35 €34€31

€28

€21

€8

Bar Widths Proportional to GDP

Total Labor Costs

Average €25

Norway

Denmark

€40

Belgium

Sweden

France

Netherl

ands

Finlan

d

€32

Austria

€32

German

y

Irelan

d

€30

Italy

United

Kingdo

m

€22

Spain

Greece

€15

Portug

al

€13

Czech

Rep

ublic

€9

Poland

Roman

ia

€5

15

16

How do restaurant stocks compare?Use a scatter chart to show performance on two key measures. Adding the regression line in this case helps make the point that the stocks above the line are priced at a premium.

0

11

12

13

14

15

16

17

18

19

20

0 10 20 30 40%

Earnings Growth

Valuation EV/EBITDA

Yum!

Wendy's

Tim Horton's

Starbucks

McDonald's

Dunkin

Dominos

-10

-5

0

5

10

15%

0 15 20 25 30 35 40 45 50Liter

300M Population

Wine Consumption Volume per Capita

Consumption Growth

China

U.S.

Germany

France

UK

Italy

Spain

Argentina

300M Population

Australia

Portugal

Which countries have the highest consumption?

To add a third metric, use a bubble chart. If we did this as a scatter chart, we would miss the key insight that the largest markets by population have the lowest consumption volume.

17

Types of Questions

18

Often this is easier to assess if you think about the questions you’re trying to answer.

How do sales compare to previous periods?How have earnings changed?What has contributed to the change?

How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?

What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?

Track

Compare

Segment

19

What is our market share by channel?Using two 100% stacked bars allows you to show market share for each channel and make comparisons between channels.

0

20

40

60

80

100%

Pizza Delivery Share

Domino's

Other Major Chains

Small Chains

Independents

Digital Share

Domino's

Other Major Chains

Small ChainsIndependents

Where do we make money?Use multiple 100% bars to show more than one metric. Add a data column to showcase data that supports your message. In this case, the most profitable market is declining.

0

20

40

60

80

100%

% of Total

Sales Volume

Latin America 29%

Asia Pacific 21%

Eurasia & Africa 15%

North America 21%

Europe 14%

Operating Income

Latin America 24%

Asia Pacific 21%

Eurasia & Africa 10%

North America 21%

Europe 24%

1%

3%

7%

0%

-1%

Volume Growth

20

How has the product mix evolved?You can use 100% bars over time to show mix changes, in this case by price tier. Skip years to highlight the changes and add a CAGR column to reinforce the message that growth is in the highest and lowest price tiers.

0

20

40

60

80

100%

2008<$200

$200-400

$400-600

$600+

2010

<$200

$200-400

$400-600

$600+

2012

<$200

$200-400

$400-600

$600+

55%

-7%

-17%

17%

2008-2012CAGR

21

How are profits distributed?You can use the cascade chart to walk the audience through each segment and its relationship to the total.

Big East

15%

$25M

Big 12

11%

$18M

ACC

10%

$18M

Big Ten

10%

$17M

SEC

9%

$16M

Pac-12

9%

$15M

Top 6

64%

$108M

All Other

36%

$60M

Total

100%

$168MAverage Distribution from 2009-2013 tournaments

22

23

Where can we cut costs?Use the exploding bar to drill down on a particular cost category.

Total

Food & Beverage 34%

Restaurant Labor 12%

Restaurant Operating 7%

Fixed Labor 19%

Occupancy 13%

G&A, Other 10%

Marketing 4%

Food and Beverage

Beef 28%

Shellfish & Seafood 11%

Other Meats 10%

Dairy 8%

Produce 12%

Breads & Oils 7%

Other 24%

24

What’s included in the $2+ TrillionIT industry?The marimekko allows you to show an industry by category and segment. Notice that each category has different segments.

0

20

40

60

80

100%

Software

Applications

Custom Software

Middleware

Operating Systems

Outsourcing & Maintenance

Hardware Support

Networks/Other

Infastructure

Hosting

Application Outsourcing

Application Mgmt

Computer Equipment

PCs

Tablets

Servers

Storage

Peripherals

Other

Consulting & SI

Strategy and Other

Systems Integration

Communications Equipment

Telcos

Enterprise & SMB

Total = $2,069B

Who competes in the electric car market? The marimekko allows you to show the market by competitor and product category. Notice that some competitors appear in multiple product categories.

0

20

40

60

80

100%

Conventional Hybrids

Ford

GM

Toyota

Other

Ford

GM

Toyo

ta

Nis

san

Tesl

a

Other

2013 Electric Vehicle Sales by Manufacturer

Plug-in Hybrids

100% Electric

25

Where are wine grapes grown?A marimekko can be used to show a wide range of metrics, including costs, customers, or in this case, capacity by region and country.

0

20

40

60

80

100%

Surface Vine Area (mha)

Europe

France 800

Italy 769

Spain 1,018

Turkey 517

Other 618

AP/Africa

Australia 169

China 570

South Africa 131

Other 37

South America

Chile 205

Argentina 221

Other 91

North America

USA 407

26

Summary

27

Track Compare SegmentKey chart types

Bar, line, bar-line, area, cascade

Bar, bar mekko, scatter, bubble

100% stacked bar, cascade, marimekko

Key questions • How have sales, costs or profitability changed over time?

• What are the components of that change?

• How do I compare to competitors on price, cost or retention rate?

• Which country has the highest labor cost, internet penetration, consumption or unemployment?

• How did different groups respond to market research questions?

• What is our market share by segment, profitability by product or cost by category?

• Which product categories are the largest?

• Who are the competitors in each market?

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Resources• This slide deck and recording will be posted today and the link will be

emailed to all registrants• Slightly longer version of this deck in Chart Selection Toolkit:

http://www.mekkographics.com/resources/get-started/chart-selection-toolkit/

• Mekko Graphics Chart Gallery provides examples of many uses of our charts: http://www.mekkographics.com/resources/charts-by-type/

• Chart of the Week Blog provides topical examples of Mekko Graphics charts: http://www.mekkographics.com/resources/blog/

• Videos show how to produce different types of charts and how to use different product features: http://www.mekkographics.com/resources/get-started/videos/

• For other questions or product feedback, email me at david@mekkographics.com