[Business] What is the Market Niche Strategy?

1. What is the Market Niche Strategy? 

The market niche is a type of market that serves a minor segment of the market. Though its market share is relatively low, however, it satisfies the needs of a niche market and expects continuous expansion of the market. Traditionally, production was unified and mass-produced. However, as the business trend transmutes into customization, the importance of targeting niche markets has been increased. Thus, numerous companies targeting niche markets has been increased.

 

2. Example: Patagonia

For instance, in the fashion industry, Patagonia (GSBANSAL, 2014) is one of the cases for a niche market. Compared to other companies which segment consumers in age, lifestyle, and other factors, this company targets consumer who enjoys the outdoor activity and highly concern about the environment. Though this company has a high price and use recycled material, eco-friendly consumers are willing to pay high prices. Despite this company covers a limited market, as it expands its market share through enhancing brand awareness from a niche market, it occupies the second largest market share in the United States and retains brand evangelists supported by a high level of product quality and lifetime value provided by Patagonia.  

3. Example 2: Buldak Stir-Fried Noodle 

 

For the case of the food industry, Bul-dak stir-fried noodles target a niche market of spicy-taste-holic or maniacs who prefer the hot taste. Due to the extreme level of hot taste, its success was suspicious. However, its target customers generate word of mouth and increase brand awareness and market shares continuously. Though the company targets specific mania who prefer the hot taste, their experience spreads through media and stimulates people’s curiosity. Nowadays, it has numerous brand evangelists and loyal consumers who addict to its special taste.

 

 

Niche marketing, 

It can be operated regardless of the type of company industry. The development of digital technology and diversification of media facilitate the company to improve its brand awareness and market share through its target market is limited. Different from the traditional business model which targets a wide coverage of the market segment through mass production, fragmented and customized services, and products corresponds to customers’ needs will be highlighted.