A Niche Market is a small, specialised market for a particular product or service. [ Niche definition from a Product or Branding view point ]
A Niche Market is the subset of the market on which a specific product is focused. The market niche defines as the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. It is also a small market segment.
niche marketing involves targeting a very specific, well defined segment of the market. Niches do not ‘exist’ but are ‘created’ by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond. Also called micro marketing.
Importance of Niche marketing
Niche marketing often focuses on market segments that are poorly targeted, or not targeted at all. Businesses that capitalise on the opportunities that lie in an untapped segment can open up the doors for an influx of success. Marketers identify the niches to target by identifying the desires and needs of consumers in specific segments. Efficiently tailoring a marketing campaign to a niche audience is crucial.
Marketers that create a well-defined niche have the ability to create a very personalised campaign with greater appeal .
Providing goods and services to a Niche Market reduces competition. Companies and individuals who target Niche Market audiences will be endowed with first-mover advantages that give the company better positioning against new competitors.
Niche Market Example : Lush
Unlike other cosmetics brands on the market, LUSH advocates for ethical buying and purity of handmade products. It differentiates itself from competitors with eco-friendly packaging, organic ingredients, and refusal of animal testing.
Rather than selling an image, LUSH found its niche by selling a viewpoint on how they define beauty. LUSH’s core values of honesty and positivity have allowed it to build a loyal following.
LUSH is also famous for its clever and quirky copywriting, with product descriptions as a huge focus of the brand’s online shop.
The brand uses influencer marketing and partners with YouTube stars to promote its products, and it has racked up an impressive number of organic mentions on social media as well.
In addition, LUSH prioritises relationships with customers and features user-generated content on its social media sites. Using hashtags like #lushtime, the brand encourages people to share their LUSH experiences on social media.