Market-Nicher Strategies
An alternative to being a follower in a large market is to be a leader in a small market, or niche. Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms. Over time, those markets can sometimes end up being sizable in their own right. The nicher achieves high margin, whereas the mass marketer achieves high volume. The risk is that the niche might dry up or be attacked, so nichers must seek to create new niches, expand existing niches, and protect their niches. Multiple niching can be preferable to single niching because strength in two or more niches increases the chances for survival. Table 7.2 shows the specialist roles open to nichers.
Examples Niche Markets
The clothing industry is one of the most exploited sectors. It has reached its saturation point. Therefore, companies are looking for market segments that they can use to boost their sales. For example, now companies rather than selling clothes in standard sizes are focusing on selling clothes to over-sized people. This niche market segment is known as “Plus-sized” or “Over-sized” Clothing line.
Similarly, companies are also focusing on niche markets consist of pregnant women. Finding comfortable and fashionable clothes is a problem that every pregnant woman deals with. Therefore, companies use this opportunity to sell “maternity clothes” for pregnant women. These companies make use of niche marketing methods to advertise their clothes to their target customers.
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