NICHE STRATEGY

Presented By:
Anjali Rawat
Sweta Sinha
Anuradha Mathuria
 Niche Market
Niche markets consist of groups of
consumers (market segments) within the
larger market place who have similar
demographic, buying behaviour, and/or
lifestyle characteristics. Even consumers with
the same buying behaviour may have
differing motivations (which are essential
elements to know for marketing and
promotion).
 Niche Strategy
 A niche strategy refers to concentration on a
small market segment with the objective of
achieving dominance of that segment.

 Niche Marketing is the process of finding small

but potentially profitable market segments and
designing custom-made products or services for
them. A niche is a small distinguishable segment
that can be uniquely served.
 Essential elements of a niche
marketing strategy
• Know the customers. Segmenting the overall market
allows the business manager to target what the business
venture can offer.

• Set clear goals and objectives for what the business

hopes to achieve by following a niche marketing
approach: Reach new customer segments? Lower
marketing costs? Secure premium pricing?

• Does niche marketing match up with the resources,

capabilities and preferences of the venture?
 3 Rules for Niche Marketing
1. Meet the market’s unique needs
This may require consumer and/or market research

2. Say the right thing

Develop promotional materials targeted at the
motivations and interests of the consumer segment

3. Test market
Start small with minimal capital investment, which may
require partnering with established retailers or partners
 Five Stages to Fully Address the
Niche Opportunity
1. Strategic Planning
Strategic planning encompasses many of the issues
discussed above, including the assessment of market
opportunities, as well as an inventory of internal
resources, values, potential strengths/capabilities
(addressed in more depth below), and any
weaknesses/short falls of the current operation.

2. Define Mission and Objectives

The mission is the operation’s statement about why it
exists, and sets the tone of what the company and its
products’ image should be at the very highest level of
the operation.
3. Strategies and Action
To begin taking specific actions, with timelines and
measurable outcomes that will support the broader
mission, strategies, and goals of the business, it
may be most effective to develop a work plan. That
plan should include a key personnel list, timeline for
the activity, a list of resources or budget needed to
execute the plans, and any other relevant
information.

4. Monitoring Key Projects/Objectives

Monitoring a firm’s progress towards its goals is one
of the most crucial actions during the first years of a
new (or significantly changed) enterprise.
5. Organizational Realignment
The management will have to consider an
organizational realignment of resources,
human capital and marketing efforts. To
be successful in niche marketing, it is
important to align the structure and
culture of the business and the personal
lives of the owners in ways that are
compatible with the niche the business
hopes to operate within.
 Advantages
 Less competition
Because niche specific marketing focuses on specific or particular
services or products, niche marketers address very specific needs.
As a result, you have less competition to worry about.

 Less expensive startup costs

Because the services and products of a specialized company are
limited, startup costs need not be too expensive with niche
marketing. This is one of the greatest advantages of being a niche
marketer.

 Customer selection and satisfaction

Although niche marketing limits the number of services or products
that a particular company offers, the specialized nature of the
products and the services significantly increase the chance of
meeting customer satisfaction.
 Products focusing Niche Strategy
 Itchguard
 Vicco Vajradanti
 Himalaya
 Star sports
 Colgate herbal
 Himalaya Drug Company
In 1999, the leading Indian herbal health care company,
Himalaya Drug Company (HDC) launched an
advertisement campaign for its range of personal care
products branded 'Ayurvedic Concepts.' The Rs 120
million campaign was extensively covered by the
electronic and print media.

The television commercials (TVCs) for the brand featured

an unusual brand ambassador. Indians, who were used
to advertisements featuring celebrities from the world of
movies/sports, and young, good-looking models,
watched in amusement an old, 'grandmotherly' lady
promoting the brand.
 Not just that, the brand ambassador referred to
as 'Dadima' (a Hindi language term for
grandmother) be broke the stereotype image
associated with grandmothers (and people of
that age group) in the country. Unlike the typical
grandmothers, she was aware of the latest
trends and happenings in the world around her.

 Moreover, she conveyed her knowledge of age-

old health tips and HDC's products in fluent
English and was thus, successful in presenting a
contemporary image of Ayurveda.
 HDC claimed that the advertisements
managed to establish the credibility of
'Dadima', and Ayurvedic Concepts, in
general. Not only did it promote Ayurveda,
as a science but was able to build a huge
amount of recall for Ayurvedic Concepts.

In the next two years, Ayurvedic Concepts

became reasonably successful, and its
visibility increased considerably
THANK YOU