Niche Market Strategies and Sustainability

The assignment provides an in-depth analysis of niche markets, their benefits, and challenges. It discusses how organizations can enter and succeed in niche markets by identifying customer needs and demands. The report focuses on Lush as a brand that has successfully entered the niche market segment in the beauty industry, providing good quality products at reasonable prices. The assignment also explores competitor brands such as Sephora, BOMB Cosmetics, and Etsy. It concludes that niche markets are created by delivering specific and specialized products and services, allowing firms to increase their sustainability and growth.

Marketing
Management

Table of Contents
INTRODUCTION......................................................................................................................1
DISCUSSION............................................................................................................................1
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
A niche market refers to the subset of the market on which a
particular product is focused. The market niche define as the product
features that aims at satisfying specific customer needs, as well as
the price, production quality and the demographics that is intended to
impact growth of business. A niche is a more narrowly defined customer group seeking a
distinctive mix of benefits within a segment. Niche marketers avoid large markets and have a
focus on targeting small market or niche. Niches have to perform various activities such as
creating niches, expanding niches, and protecting niches. Such business ventures are more
profitable because of less competition and disinterest of part of big organization. Niche
marketing refers to the process of identifying and delivering profitable market segment and
producing customer demanded products as well as services. Niche marketers are generally
dependent on business model in order to maintain their profits sales and revenue.
The report has focus on developing understanding about niche marketing. It emphasizes
on analyzing the reason for considering firm as niches. The project will include discussion on
niches brand on firm.
DISCUSSION
The niche market is extremely specialized and intends to sustain
among the
Competition from numerous big organizations. Small investment provider
usually opts for nice market with contracted demographics as to increase
high rate of return on investment. In Niche market product quality is not
based on price elasticity of demand. It is totally dependent on specific needs
that the particular good intends to satisfy and sometime it is based on brand
recognition.
In present scenario Affiliate marketer used advance technology in order to
promote their products and services. A broader niche has potential to face
stiff competition. The selection of customer target group and market by
niche firm is based on traditional beliefs, production philosophy.
Organization makes few attempts to position their product in market. The
business unit is dependent on their resources based advantages, good
quality products personal relationships when competing in the market
Now-a-days, despite of many companies who look towards expanding their product
portfolio by introducing more and more goods and services in their product portfolio, however,
some entrepreneurs are interested in getting specialization in a specific sector or product, such
are called nichers (Wu and et.al., 2016). In other words, a niche market can be defined as a
market subset which focuses on certain specific products, goods and services and avoid focus on
larger market segments. Thus, they have a narrowed and small market with limited buyers who
are not adequately served by the existing suppliers. Therefore, there are limited competing firms
from which nichers face tough competition (Ottosson and Kindström, 2016). They perform
three key tasks that are creating niches, its expansion and protection as well.
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Grab, earlier known as Grab Taxi is a technology firm that offers ride hailing & logistic
facilities through its app in Southeast Asian countries such as Malaysia, Philippines, China,
Myanmar, Thailand, Indonesia and others. At the end of June 2017, it has exceptional break
record by heaving more than 1,000,000 drivers registered and the app has been downloaded by
more than 45 million viewers across Southeast region. It was established by MyTeksi in
Malaysia which extremely focuses on its taxi-booking apps to grab high market share (Pallante,
Drucker and Sthapit, 2016). Grab Taxi is founded as a niche marketer due to many reasons,
discussed here as under:
Little/No competition: Company’s key competitors in the Malaysia include Uber which
is one of the powerful and successful taxi service delivering company. Recently, Uber in
Malaysia launched new facilities in Klang Valley which are highly similar to that of Grab Taxi
which is a direct indicator of tough competition between the Uber and Grab. The twop services
launched recently includes UberTaxi and UberFlash that arises tough market challenges for the
Grab Taxi (Uber Malaysia launches 2 new services in KL as competition with Grab heats up,
2017 ). In this area, company had decided to charge prices on the basis of meter usage, though,
as per the demand, it may opt dynamic pricing mechanism considering their profit targets. In
order to take sudden action on Uber’s announcement on Monday, after just few hours, Grab
launched its aggressive moves in Singapore. Besides this, other rivalries include Easy Taxi,
Ezcab and ComfortDelGro Taxi. Thus, due to limited number of taxi services providers, Grab is
found niche marketers.
Focused business: Grab Taxi focuses only on specific market including taxi, car, Hitch,
Share, Coach, Shuttle, Shuttle Plus, JustGrab, Grab Now and Rental services. Thus, by this way,
it focuses only on key areas and do not covers a wide range of products and service offerings in
their portfolio coverage. It provides transportation facilities to the people whenever demanded
and accept payment on its mobile payment platform featured with GrabpPay Credits, Share
Your Ride and many others (Baker and Russell, 2017). The key aim of the business is to
become champion in the focused niche market segments by rendering exceptional taxi facilities.
In Malaysia, Grab taxi expanded its niche markets across Kota Kinabalu, Negeri Sembilan,
Selangor, Johor Bahru, Penang, Malacca, Johor Bahru and others.
Strong relationship with the consumers: Grab maintains sound relationship with the
users through having a platform of various online apps which includes GrabBike, GrabCar,
GrabExpress, Grab Taxi and others. Moreover, in order to promote connectivity with the service
users, recently, in the year 2016, Grab launched a new feature in its app for instant messaging so
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as to allow ease of communication between drivers and riders. At the same time, the app also
provided facility to translate the languages if both the parties are different to foster easy
communication.
Business stability: Assuring delivery of increased value to the riders enable Grab to
satisfy and exceed user’s expectations. Moreover, it targets its consumers through number of
apps or online distribution platform. Innovation and adoption of new features for the app
satisfied the client requirement and generate traffic. At the starting point, Grab Taxi was
launched in Malaysia which expanded to Philippines, Thailand and Singapore in 2013. In next
year, it continued expansion in different parts i.e. Vietnam, Indonesia and 2 more cities
including Cebu and Davao. In 2015, it launched GrabCar + in Philippines which specially
focuses on higher-end cars and expanded the business in lloilo. Besides this, introducing
GrabShare also offers car sharing and taxi services. Recently, in March 2017, it launched
GrabFamily targeted especially young children that are under 7 year old (Aufderheide, 2013).
Thus, by this way, company had expanded its operations and niche market and protect the same
for ensuring stability. Currently it is operating in cities in 6 different countries in the Southest
Asia
MakanSharing is another niche marketer identified in Malaysia that was started by two
siblings Naysan & Mylini. They converted 50% space of their home into private kitchen and a
dining space that can accommodate easily approximately 30 people (Arcadier, 2017). The idea
of the business is based on serving neighbour to neighbour food deliveries that is quite
astonishing and totally new and unique and none of the business is working on this concept
currently. It only becomes possible due to the coming of sharing economy platform. It owns a
prominent market place in Malaysia which delivers home-cooked food to food lovers through a
wonderful dining space, takeaways and delivery at home. The reasons why it is considered as a
nichers are presented here as under:
Little/no competition: There is no existing firm which is operating in Malaysia on the
similar concept therefore, direct completion does not exist. However, on the other side, all the
other food service providers Mac Food, DPO International Sdb Bhd, Mission Foods Malaysia
and others are the indirect competitors from which can bring challenges for the Makan Sharing.
Focused business: From the concept, it is very clear that the business focuses only on
home-cooked delivery segments. Founders started the company with a clear defined vision to
create new tech platform surrounding the idea of Makan means to eat. It provides a platform to
all the food lovers with home cooks, chefs and others who are interested and willing to make
food for others (Fonner and Sylvia, 2014). Thus, interested party can register themselves on the
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MakanSharing’s platform and able to design their own menus, location and launching different
events. Interested foodies can taste the unique and new food item to enjoy delicious, healthier
and tastier food.
Another firm is Airstream that is
Strong relationships with customers: Makan Sharing uses its own tech platform where
both the foodies and willing parties to prepare their own food dishes can register. Both can
communicate easily to satisfy their need. However, in order to validate chefs credentials,
MakanSharing managerial team interview all the prospective chefs. It provides a healthy
platform to home cooks and food lovers to satisfy everyone and resultant consumer satisfaction
to achieve long-term growth (Winston and Weinstein, 2016).
Business stability: Home-cooked meal in various ranges including top most dishes such
as Nasi Tomato, Rosemary Roast Chicken, Pandan Gula Melaka Cupcakes satisfied client need.
It also rented Makan Truck which helps to share food with each and every food lover. Makan
Cook Community support everyone who love and willing to cook food including both home
cooks and professional chefs. In spite of this, MakanEvent are conducted to find out foodies
requirement, so that they can be served with quality offers accordingly (Pasquier and
Villeneuve,2017)
Lush is another well recognised brand, and organisation that is dealing in niche market.
The enterprise has differentiated themselves from competition by entering into niche market.
Business entity has global reach with a domestic warm and fuzzy approach that helps firm in
expanding their business (Bruwer, Bruwer and Herbst, 2017). The company offers pure and hand
made a product that does not contain any harmful chemical. It provides ethical buying option to
consumers. The organisation has effective branding strategy. The company branding is simple
and genuine, that include great contrast between visuals. Branding has helped the firm in
differentiating their product from other markets. This is the reason the Lush beauty product are
liked by niches consumers. The enterprise has focus on producing herbal beauty products. It has
unique trademark stamped on their products (Wolf, Ainsworth and Crowley,2017).The business has
focus on following-
Understanding their clients-They have focus on targeting girls and organisation emphasizes on
understanding their customer perception. This activity allows them to develop and maintain
healthy relationship with customers.
Selfless with their products-The organisation offers free samples and trials to attract customer
belonging to nice market segment. This has enabled business entity to attract more numbers of
customers
Enterprise does not only believe in selling their beauty products but their perception is to define
beauty. . The company also offers customers a way to recycle used black pots by bringing
empty ones back to the store for a free Fresh Face Mask for every five returned. This activity
has allowed firm to gain customer loyalty.
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The main objective of such type of firm is to provide great real life experience to customer.
Organisation intends to provide good quality product at reasonable price.
Competitor- The top competitors of Lush brand in niche market are Sephora, BOMB
Cosmetics, Etsy.
CONCLUSION
It has been concluded from the report that firm, brand or market is known as niche due
to their uniqueness. The organisation prefers to enter into niche market segment as it provides
organisation an opportunity to increase their profits and sales. The big organisation decides to
enter into nice market in order to reduce or eliminate competition. It has been concluded from
the study that niche market are created by identifying customer needs and demands. This type of
market allows firm to increase its sustainability and enhanced their growth .It has been
concluded from the project that niche market is the part of market that have focus on delivering
specific and specialised product and services.
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REFERENCES
Books and Journals
Aufderheide, P., 2013. Niche-Market Culture, Ofi ‘and On Line. The electronic grapevine:
Rumor, reputation, and reporting in the new on-line environment. p.43.
Baker, B.P. and Russell, J.A., 2017. Capturing a Value-Added Niche Market: Articulation of
Local Organic Grain. American Journal of Agricultural Economics. 99(2). pp.532-545.
Fonner, R. and Sylvia, G., 2014. Willingness to pay for multiple seafood labels in a niche
market. Marine Resource Economics,. 30(1). pp.51-70.
Ottosson, M. and Kindström, D., 2016. Exploring proactive niche market strategies in the steel
industry: Activities and implications. Industrial Marketing Management,. 55. pp.119-130.
Pallante, G., Drucker, A.G. and Sthapit, S., 2016. Assessing the potential for niche market
development to contribute to farmers' livelihoods and agrobiodiversity conservation:
Insights from the finger millet case study in Nepal. Ecological Economics. 130. pp.92-
105.
Winston, W. and Weinstein, A., 2016. Defining your market: winning strategies for high-tech,
industrial, and service firms. Routledge.
Wu and et.al., 2016. An online niche-market tour identification system for the travel and
tourism industry. Internet Research. 26(1). pp.167-185.
Online
Arcadier, 2017. 4 Niche marketplaces in Malaysia. [Online]. Available through: <
https://www.arcadier.com/learn/articles/malaysia-boleh-4-niche-marketplaces-based-in-
malaysia>.
Uber Malaysia launches 2 new services in KL as competition with Grab heats up. 2017.
[Online]. Available through: http://www.todayonline.com/world/asia/uber-malaysia-
launches-2-new-services-kl-competition-grab-hots.
Akbar, F., Omar, A.R.B. and Wadood, F., 2017. The Niche Marketing Strategy Constructs
(Elements) and Its Characteristics-A Review of the Relevant Literature.
Wolf, I.D., Ainsworth, G.B. and Crowley, J., 2017. Transformative travel as a
sustainable market niche for protected areas: a new development, marketing and
conservation model. Journal of Sustainable Tourism, pp.1-24.
.
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Bruwer, J., Bruwer, and Herbst, F.2017. Domain-specific market
segmentation: a wine- related lifestyle (WRL) approach. Asia Pacific
Journal of Marketing and Logistics, 29(1), pp.4-26.
Pasquier, M. and Villeneuve, J.P., 2017. Marketing management and
communications in the public sector. Routledge.
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