Niche Marketing: Bellisimo!

Scratch that Niche!

When discussing product and service differentiation, it is imperative to focus on your business’ niche. Your niche is that very specific demographic component to which you are targeting your product or service. While it might seem tempting to try and sell your product to everyone (after all, the more people to whom you expose your product, the more potential customers you have) doing that is the opposite of what you should do. By trying to market to “everyone”, you severely reduce your chances of successfully selling to anyone.  Instead, the key is to pinpoint as specific a demographic niche as possible and go after it ferociously. Scary but true and it works.

“Many companies take comfort in the fact that by striving for a market position that has a wide appeal, they’ll only need to capture a small percentage of share to be productive,” says marketer Geoff Dillon here. “What they don’t realize is that even a small share can be remarkably difficult to obtain. By owning an identifiable market position...you greatly improve your chances for survival and success. Your offerings will be well aligned with the needs of at least some of the people in the market, as opposed to an offering that is designed to appeal to everybody but only does so mildly.”

Why do I Need a Niche?

Why is this so? According to Dillon, finding an identifiable niche does three important things.

1. Ensures your product or service has impact. It provides your business with an identity and gives those unfamiliar with you a reason to consider dealing with you. A niche strategy “gives some of the people in your chosen market a strong reason to call you,” says Dillon. This is almost always preferable to giving many people in the market a weak reason to call you, or no reason at all.
   
2. Gives you legs to stand on against the competition. The moment you start to have success, you can bet that competitors will be running right alongside to capture your niche. The stronger your position meets the needs of your targeted niche, the less likely someone else can come in to fit the job as excellently as you.
   
3. Makes your marketing path crystal clear. If you service your niche well, customers will start doing some of the marketing for you! Word of mouth referrals, positive recommendations and feedback are some of the most powerful, cost-efficient marketing tools out there!

In looking at the current marketplace, two brands serving entirely different niches can be held up (no pun intended) as great examples: Vizio televisions and Wonderbra.

Vizio. The “everyman” TV.

In the big, bad world of shiny televisions, the “S’s” have ruled for years. Sony, Sharp and Samsung have historically captured the highest percentage of market attention. But over the last few years, a new giant has come to town. Its name is Vizio. According to research, Vizio is a “legitimate big brand killer” that, in the second and third quarters of 2007, beat out all competition to take FIRST place in its market share. According to CNBC’s Silicon Valley Bureau Chief, Jim Goldman, Vizio came out of nowhere to dominate the marketplace. What makes this extraordinary is not the picture quality (which is, of course, excellent) but the fact that Vizio grew its brand without any traditional marketing or advertising.

So what allowed Vizio to capture such strong market penetration? Its niche. With the slogan, “Where Vision Meets Value”, Vizio has offered the marketplace the single lowest cost option for LCD TVs. Its strategy has simply been to be recognized as the lowest-priced brand. How have the strategic choices Vizio made led to its niche domination? Try going into Best Buy and buying a Vizio. You can’t. The only places to buy a Vizio today are discount retailers like Costco Wholesale, Sam’s Club and Wal-mart - shopping institutions known for their middle-American, everyday man personality.

In the first few years of its product launch, Vizio relied solely on word of mouth, buzz and retail relationships to grow its business. No fancy marketing, no elaborate e-campaigns. Instead, just a product that knew its niche - everyday folks who wanted the value and a really cool LCD TV. Recently, Vizio has made a commitment to its marketing. In doing so, however, they continue to perpetuate their niche positioning. A recent series of commercials made in partnership with retail giant Costco highlights the Vizio’s everyman appeal. The commercials show regular guys, some overweight or middle aged, shopping in Costco or in the parking lot enjoying football. And what could be more “everyman” then football on a big TV? Knowing the marriage to NFL would only solidify its niche more, Vizio did two things: signed a deal with 2006 NFL MVP LaDanian Tomlinson to appear in Vizio ads, and created the “Vizio Top Value Performer Award”. The first award was given to David Garrard, quarterback for the NFL Jacksonville Jaguars. The award’s mission? “To salute the athlete whose performance on the field outpaced his salary by the widest margin,” according to www.topvalueperformer.com.

Wonderbra. A wonderful niche in a saturated industry.

Lingerie is lucrative. One brand that has held firm in the marketplace for years is Wonderbra. How do they do it? An unbeatable niche. Women’s incidentals generally fall into two categories - those that place form over function and the type designed to please the opposite gender. Wonderbra aims to please by doing both and neither at the same time. With functional, fun pieces and a marketing campaign directly designed to engage and empower women, Wonderbra has managed to carve a solid niche for itself on a global scale.

“It would be simple to label Wonderbra as a brand that took a well-designed, comfortable signature bra and spiced it up. But there’s something deeper going on,” says brand strategist Jenn Gidman here. “Underneath the lace and satin, there’s an empowering tribute to what it means to be a woman, instilling confidence in all women who want to look their best, no matter what their body shape or size.”  

Most importantly, the Wonderbra’s messaging is about SHE. The marketing and advertising speak to the women who wear the product - not a man for whom a woman might please. And unlike some brands that fix a woman’s flaws, Wonderbra aims to fit every woman! One might say its marketing embraces the essence of being a woman. After all, in the past, the Web site’s “Wonder Stories” section highlighted emotional stories of women who have finally found comfort in their own skin thanks to a properly fitting bra (for those who are unaware, 70% of women are currently wearing the wrong size bra).

Wonderbra marketing has also embraced its fun side. Its models don’t sulk or pout dangerously while displaying garments. For example, this commercial says everything and shows nothing all at once. This wildly popular viral video streamed its way into millions of homes by parodying a brilliant popular candy commercial. Other irreverent yet empowering marketing Wonderbra has done includes this “pointedly effective” outdoor ad and this print ad, a parody of a famous Economist magazine ad. The niche? Fun, fearless females who buy undergarments to please themselves...a novel concept.

Are you a business owner with a product or service searching for great niche marketing? Contact the team at corecubed! Our group of marketing gurus can help you pinpoint the most effective and efficient ways to target your niche marketing for maximum success!

corecubed specializes in monthly marketing communications using a strategic approach to help clients better reach their target markets to grow their businesses. corecubed has a special niche in servicing businesses that offer products or services that are considered “at need”, meaning that the consumer may  not be interested in the product or service until the need arises.

The MOSTSM program is a prime example of the strategy, now serving home care and home health care companies across the USA. Visit MOSTSM for more information.

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