Allen considered offering a variety of iPad accessories on her website, but decided just iPad covers was a better idea.
“Also, the set-up costs are very reasonable as you don’t have to put in an expensive shopping cart to house multiple products. It also allowed us to test the market to see if there was a need for the iPad cover and we found there are people looking for quality rather than price, especially in remote areas of Australia,” Allen says.
A clear marketing strategy is vital when trying to attract a niche audience. Demonstrating your loyalty is vital, McLean from Funky Trunks says.
“Our audience is very loyal, so we take care to ensure that we give them news and deals first, before everyone else.”
Online marketing can also work well for those trying to build a loyal niche, with free tools such as Google’s keyword tool and Google Trends, according to Ben Bradshaw, CEO of online marketing and ad word management firm, SponsoredLinX.
These tools make it easy to determine how much opportunity and potential business the market segment may present, as well as the competition in the market, Bradshaw says.
But those hoping to target a niche audience need to take their time, warns Lauren Brown, managing director of Pulse Marketing.
“Make sure you consider the size of the market now and in the future, and what your capacity is to service the market as it grows. You should also know whether someone else is already targeting that particular niche and how successful they have been,” she says.
You should also define the habits and behaviours of your intended audience as a first step, as opposed to just listing demographical or age/gender profiling information, she says.
Also, consider how well your business offering is aligned to the wants and needs of the niche audience you’re considering.
“Make sure you’re skilled and capable of delivering what you’re passionate about. Don’t choose a niche market simply because they’re high value customers.
“Niches come in different sizes and even though a niche is by definition a small market, make sure not to target a niche that’s too small as it may not be a profitable strategy.”
Kuehn adds that businesses need to understand the values and motivations of their particular target market.
“Finding an effective niche depends on being able to understand untapped potentials in your category. It also depends on whether you can understand the real drivers and emotions of a niche consumer market and build a brand that consistently addresses these at every single touch point,” Brown says.
