Why dont companies make jeans brands solely for overweight people?
Why dont directors make film solely for intelligent, matured audience?
Why dont hair salons exist that specialize in curly haired women only?
Thats because these are specialized services that is required by only a niche audience. And knowing niche, there is not much number there – both in terms of addressable market and profit.
Which is why businesses would rather cater to a mass market where there are already 10 competitions, rather than catering to a niche market where there is no competition. Think big, they might say.
Is this a valid strategy? Absolutely. The big question however is not that. The big question is can businesses continue to do that as a sustainable business strategy. When everyone moves to live in city center, the city becomes unlive-able and people move to suburbs. In the same way, when mass market becomes overcrowded, margin becomes thinner. And inevitably business will move to niche, untapped segment.
So why not make a first, proactive and timely move, right now?
One comment
Sadique Salim
September 26, 2010 at 8:22 am
Just one idea came from reading this thread:
What is one of the fun aspects of eating pizza during Ramadan in Pizza hut. It used to cheap, but now it is not. So why do we keep returing to that? Two reasons:
1. Tradition
2. Competition
How many slices did you eat the last time? Did you break your old record?
So my point is why dont someone go fora restuarant which will serve huge portions of food. Rather than standard MCberger, its standard serving will be 3 layer berger. Forget simple sandwich and lets serve 6 bread, chesse stuffed, beef and chicken sandwich.
DOnt serve a hotdog, serve a sub! Dont serve shwarma, Serve double parata wrapped (with fillers in both layers) and then just like Man Vs Food, throw record breaking challenges to people. Bring on 6lb burger, 24 inch sub, whole bread sandwich, and if you can win the challenge you get one year’s free food for two person everyday!
Something to brag about for the teens, something to show off to GFs, some money to make 🙂