“Amul doodh peeta hai India” an ad jingle by Amul famous pan India, everybody can easily sing along owing to great marketing efforts that targeted the entire nation. However, how many of us pay attention to an ad of say, Pedigree? Only pet owners will show interest because Pedigree is a niche product and niche products are not meant to target the masses but only a few classes. Let us first understand what exactly niche marketing is…
What is Niche Marketing?
Not all brands aim at gathering the attention of all the consumers in a vast universe of brands. Some brands aim at being the only trusted brand in a specific yet small segment rather than trying to be a small brand in a big segment. For brands that aim at being a big fish in a small pond, Niche marketing and advertising is the most beneficial strategy. Niche Market is a consumer specific market. It refers to concentrating all marketing efforts on a small but specific and well defined segment of the population. A Niche does not just ‘exist’, a brand has to carve out its own niche by identifying needs, wants, and requirements that are being addressed poorly or not at all by others first, and developing and delivering goods or services to satisfy them.
Why choose Niche marketing?
Niche marketing provides a variety of advantages:
1. The segment chosen is unique and thus there exists no or little competition.
2. The company can easily become a market leader and enjoy unrivaled monopoly in that segment.
3. Building strong customer relationship is easier and a more attainable task as the segment is small. A strong bond between a brand and the consumers forms the key in establishing and building customer loyalty.
4. Niche businesses are often high margin business.Customers do not mind paying a little extra because, they are only able to get that service through that particular company or brand.
Who are the Niche audience?
A Niche audience is formed when a set of people share a common need, want or interest. The brands that cater to the niche audience manufacture product or provide services valid only for that limited segment of audience. For example: A company manufacturing airplane neck supporters is limiting its audience to only frequent travelers who travel by air often and for long hours. This audience will then be reached not through TV but through travel magazines, travel websites, print ads inside the airport etc.
How to advertise Niche products and services?
Once a niche brand identifies its audience advertising decision is taken as to how to reach that audience. BTL advertising suits the best when it comes to niche advertising. A Rolex watch will be best advertised in hoarding inside a mall or a print ad in a lifestyle magazine read by the elite. A niche brand is seen to be more premium. Best advertising for Pedigree would be to advertise in pet shops, vet clinics, parks etc. Hence, when you want your brand to have a premium appeal you must venture into the niche.
Niche marketing is not just a way of advertising but an advertising strategy that ensures a profitable return. When one clearly demarcates their territory of operation, they make sure that they do not waste their time trying to convince uninterested consumers rather they invest their precious resources, time and money in convincing the already interested consumers about the quality and relevance of their product. Niche marketing is a tricky task and can be described as the art of gaining more profits while eliminating wasteful expenditure. Thus niche marketing is not for the mass but for the class. Venture into the unexplored avenues with niche marketing.