Exploring Niche Marketing
June 20th 2007 07:13
How can you make money in a niche market? This question is often asked in marketing seminars especially those new to marketing or even non-marketers.
A "niche" is a "small market." The phrase "small market" refers to the niche's population size. It's the population size that's small, not the market size. Example is the "nicheing" of Unilever to it's product "Axe". This brand successfully made sales and profit by "nicheing" into the population of young men, not all of them, only those segment of young men who are "after a deep relationship with a girl." That's a niche, a small population size but their usage frequency is high and willing to pay a premium for a deodorant specifically tailored to their needs.
The other key is to go for multiple nicheing instead of remaining as a single "nicher". Consider today's athletic shoemaker, Nike, who remained a market leader by innovating in more and more niches. It continued to design shoes and innovate by going into special shoes for more and more sports and exercises. It went into niches for running, then basketball, hiking, tennis, biking, golf, badminton, and so on. Within each niche, it also grew the niche by developing variants.
A "niche" is a "small market." The phrase "small market" refers to the niche's population size. It's the population size that's small, not the market size. Example is the "nicheing" of Unilever to it's product "Axe". This brand successfully made sales and profit by "nicheing" into the population of young men, not all of them, only those segment of young men who are "after a deep relationship with a girl." That's a niche, a small population size but their usage frequency is high and willing to pay a premium for a deodorant specifically tailored to their needs.
The other key is to go for multiple nicheing instead of remaining as a single "nicher". Consider today's athletic shoemaker, Nike, who remained a market leader by innovating in more and more niches. It continued to design shoes and innovate by going into special shoes for more and more sports and exercises. It went into niches for running, then basketball, hiking, tennis, biking, golf, badminton, and so on. Within each niche, it also grew the niche by developing variants.
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