Definition
A Marimekko chart, or Mekko chart in Excel, is a type of two-dimensional stacked chart that allows users to visualize data in relation to two variables, usually percentages. Unlike regular stacked charts, the width of the bars in a Mekko chart also hold significance, representing another data characteristic. Essentially, it’s a graph tool commonly used in finance and business for displaying complex interrelationships between different data sets.
Key Takeaways
- Marimekko Charts, also known as Mekko Charts, provide a way for Excel users to visually represent two-dimensional data. They display complex scenarios where multiple factors need to be accounted for simultaneously.
- Each bar in a Marimekko Chart represents a particular category, with the width of the bar reflecting the category’s volume or total. The segmented or stacked sections within each bar represent a proportional breakup of the category, usually in terms of percentages. Therefore, both the width and the height of the bars are significant.
- Despite their utility, Marimekko Charts are not a standard feature in Excel. To create one, you must apply specific data arrangement in Excel, utilising a stacked bar chart and adjust the horizontal axis manually, or use specialized add-ins or third-party softwares that support Marimekko Charts.
Importance
The Marimekko Chart in Excel, also known as Mekko chart, is a significant financial term due to its unique ability to represent complex data in a visually graspable manner.
It acts as a two-dimensional stacked chart displaying multivariate data, where the width of a column signifies one set of percentages, while the height represents another.
Consequently, Mekko charts allow finance professionals to analyze patterns, correlations, and distribution trends more effectively.
They are valuable in finance-related domains including market research, strategic consulting, and portfolio analysis, thereby facilitating informed decision-making by providing a lucid explanation of comparative data.
Explanation
The Marimekko chart, also known as a Mekko chart, serves a significant purpose in finance and business analytics as it is used to express complex data in a comprehensive, visual manner. When dealing with a multitude of variable categories that need to be compared against one another, using a Mekko chart makes it easier to visualize and interpret the data. The chart is utilized to reflect market trends, identify market growth or decline, observe product distributions and market shares, and to display and understand the correlation between different datasets.
The difference in the width of the bars in a Mekko chart signifies the total size or value of a specific category among various categories, thereby offering a holistic view of the market scenario or the business condition. Furthermore, creating a Mekko chart in Excel is a strategic way of portraying multiple layers of data within a single chart. This kind of chart enhances data analysis by providing a more detailed interpretation of data which, in turn, aids in strategic marketing decisions.
For instance, a business analyst looking to understand how different product ranges are performing within different regional markets, may use the Marimekko chart Excel to visualize such multi-faceted data. This enables a detailed yet concise analysis. Therefore, whether you’re analyzing market research data, delineating categorical expenditures or demonstrating product performance, Marimekko charts in Excel provide a detailed and comprehensive evaluation of numerous datasets.
Examples of Marimekko Chart in Excel (Mekko)
Market Analysis: In many retail or manufacturing industries, a Mekko chart can be incredibly useful for illustrating market share data. For instance, a clothing company could use a Mekko chart to depict their market share compared to competitors within different segments (women’s clothes, men’s clothes, children’s clothes). The width of the columns can represent the total market size, while the height of the segments can represent each company’s share within that market.
Revenue Breakdown: A multinational corporation can effectively use a Mekko chart to break down their global revenue. In this case, the width of the column can represent the total sales (or revenue) in every region, and the height can signify the revenue contributed by various product categories in each region. This would provide a clear snapshot of which products are performing well and where.
Portfolio Analysis: For an investment portfolio manager, a Mekko chart can be beneficial in analyzing diversified investment portfolios. The chart’s width can symbolize the total value of investments made in different sectors (technology, health, energy, etc.), while the height depicts the returns from each investment. This gives a clear presentation of where the most and least profitable investments are, helping in making future investment decisions.
FAQ: Marimekko Chart in Excel (Mekko)
What is a Marimekko Chart in Excel (Mekko)?
A Marimekko Chart (also known as a Mekko chart) in Excel is a two-dimensional stacked chart in which the width of a column is proportional to the total of the column’s cells. This type of chart is useful in displaying large amounts of data with different units of measure.
How to create a Marimekko Chart in Excel (Mekko)?
To create a Marimekko chart in Excel, you generally would need a Marimekko Chart Builder add-in, as Excel doesn’t have a built-in Mekko chart. But, you can create a Marimekko-like chart by stacking sections vertically and spreading sections horizontally simulating the two dimensions of Marimekko charts.
When to use Marimekko Chart in Excel (Mekko)?
Marimekko charts can be used when you want to display proportional data, such as market share data or data with different units of measure. Moreover, you should use it when you want to highlight the contrast among different data segments.
What are some limitations of Marimekko Charts in Excel (Mekko)?
One of the limitations of the Marimekko chart is that it can be difficult to understand, especially for those unfamiliar with this type of chart. It can also be challenging to create without a dedicated add-in, and the chart might be misleading if the plotted data doesn’t fully highlight the dimensions it’s trying to represent.
Can I update the data of a Marimekko Chart in Excel (Mekko)?
Yes, you can easily update the data of a Marimekko chart in Excel by changing the values in the original data table. The chart will automatically update to reflect any changes in the data.
Related Entrepreneurship Terms
- Data Visualization: This term refers to the display of data in a pictorial or graphical format. Marimekko Charts in Excel are a type of data visualization tool.
- Market Share: This refers to the percentage of an industry’s total sales that is earned by a particular company over a specified time period. Marimekko Charts are often used to display market share data.
- Segment Proportions: This refers to the relative size of different segments within a total market or population. In a Marimekko Chart, the width of each column represents the size of the segment.
- Count Axis: This finance term is associated with Marimekko Charts as it allows for the representation of the market size. It displays the number of entities pertaining to each segment.
- Percentage Stack: This is a feature available in Marimekko Charts where the components of each segment are stacked and displayed as percentages, so each segment sums up to 100%.
