Part 2. MM4XL Tools > 2. Analytical Tools > Business Formulas > mmHERF, Herfindahl Index

Business Formulas

mmHERF, Herfindahl Index

Category: Reporting > Ranking

The Herfindahl Index (mmHERF) is a market concentration metric derived by adding the squares of all market shares of products competing in a market. The index rises in markets dominated by large players.

Business analysis formulas for Excel. Marketing tool for professionals

Where:

MS = Market shares of brands in the same market segment

Syntax

mmHERF(Market_Shares)

Market_Shares The market shares of 2 or more brands in the same market

Example

See example file Business Formulas.xls, sheet mmHERF.

Business analysis formulas for Excel. Marketing tool for professionals

Related functions
  • mmBEI
  • mmBUYRATE
  • mmMSAR
  • mmPERFCV
  • mmPERFO
  • mmPERFR
  • mmPREMIUM
  • mmBDI
  • mmCDI
  • mmMOI
  • mmPRESS
  • mmRANGE
  • mmRANK
  • mmSHARE
Related MM4XL software tools
  • BCG Matrix
  • Brand Switch Analyst
  • Profile Manager
Source
Paul Farris, 2006, Marketing metrics: 50+ metrics every executive should master
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