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 characteristics. the same buying behaviour may have differing motivations (which are essential elements to know for marketing and promotion). promotion).

Niche Strategy 

A niche strategy refers to concentration on a small market segment with the objective of achieving dominance of that segment. segment. Niche Marketing is the process of finding small but potentially profitable market segments and designing custom-made products or services customfor them. A niche is a small distinguishable them. segment that can be uniquely served. served. 

Essential elements of a niche marketing strategy
Know the customers. Segmenting the overall market customers. allows the business manager to target what the business venture can offer. offer. Set clear goals and objectives for what the business hopes to achieve by following a niche marketing approach: 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 motivations and interests of the consumer segment

the

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. operation. 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. operation.

2.

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. 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. 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. enterprise.

5. Organizational Realignment The management will have to consider an organizational realignment of resources, human capital and marketing efforts. To efforts. 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. within.

Advantages 

Less competition Because niche specific marketing focuses on specific or particular services or products, niche marketers address very specific needs. needs. As a result, you have less competition to worry about. 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. marketing. This is one of the greatest advantages of being a niche marketer. 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. 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, goodwatched 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 ageageold 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

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