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90% of companies, in whatever industry, adopt one of two strategies: differentiation, through product or niche market, or cost leadership, both within the industry as a whole.
These companies want to achieve market leadership by either optimizing production and reducing the total cost of their product or by differentiating their product or service by creating something unique to the most significant number of people.
This strategy leaves a gap in the market, a segment of people with particular interests, or just in a certain geographical position that has not yet been served. In this segment, there are no substitute products or competitors, which is excellent. Let’s call it a “niche.”
Primary benefit: get the word out easily
The primary benefit of targeting a niche market is that it’s far easier to get the word out about your product. Audience, press, and influencers are much easier to access.
If you’re serving a niche, it’s more than likely that someone has already built your audience for you. You’ve just got to find where they hang out and share what you’ve been working on.
For environmental technology, new green ideas, or super-smart sustainability tools, the primary location is r/RenewableEnergy, a Reddit forum consisting of 94,5 thousand members interested in sustainable products. A simple post can be enough to share your new smart, sustainable tool or brand.
Another benefit of serving a niche market is that it’s far easier to get press. For example, if you’re into the food market, there will be some hardcore food bloggers out there whose full-time job is to write about your niche. And unlike mass-market journalists, niche journalists actually want you to email them.
When you are adding value to a niche market, it literally can be this simple!
How do you find them? Well, you can send us an email. Our business development team can help you. *wink, wink*
In any niche market, influencers are pretty well defined and easy to contact because they are really passionate fans about a certain product or service. This leads to the secondary benefit of targeting a niche. Niches are always full of devoted fans.
Secondary benefit: devoted fans in niche markets
There is a small but hardcore football supporters group in Portugal. They are the “White Angels,” from Vitoria Sports Club (VSC), in Guimarães. They don’t get a tattoo saying: “I love football.” They get a tattoo saying, “I’ll follow VCS, no matter how far.” So if it’s a five-hour drive to watch a game after a workday, they’ll be the first to get to the stadium.
The more passionate the audience, the more likely they will help share your product. This is called the viral coefficient, and niche markets have high ones.
What is the viral coefficient? Tiago Leão had already written about it in a previous blog post, but in long story short, it is an indicator that tells how vital an existing customer is within the growth loop. It results from the average of shares a customer does in total, multiplied by his conversion rate.
After doing the math, it measures the number of new customers that each existing customer can convert.
It’s easier to go viral in niche markets because:
1. People, in general, are easier to access.
2. Hardcore fans like VSC supporters will help share your product.
And this stuff applies to every niche. Just go to Reddit and find a new one.