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Open Access
Article
Publication date: 28 April 2023

Bart Kamp and Iñigo Ruiz de Apodaca

This paper aims to study whether international niche market leaders (INMLs) gained their leading position as early mover or diligent follower, and assess whether they leveraged…

Abstract

Purpose

This paper aims to study whether international niche market leaders (INMLs) gained their leading position as early mover or diligent follower, and assess whether they leveraged hard or soft forms of technological, supply pre-emption and customer lock-in advantage mechanisms.

Design/methodology/approach

Empirical material stems from qualitative and quantitative data on a sample of 20 niche companies from the Basque Country (Spain) that operate in business to business markets.

Findings

The sample predominantly followed an early entrant strategy and applied soft measures to reach niche market leadership.

Research limitations/implications

Findings imply that early entering fosters conquering leadership in niche markets, that pioneer advantage is easier to sustain in niches than in mainstream markets, and that soft measures are more effective in niche markets than in larger markets. A limitation to our findings is that they follow from explorative research on a sample of firms from a reduced geographic setting.

Practical implications

Hidden champions and INMLs can be important sources of technological progress and economic value for the localities that host them. Therefore, despite their traditional low profile and the fact that they are not always the largest firms around, policymakers may want to pay more attention to this type of companies.

Originality/value

Tot he best of the authors’ knowledge, this is the first paper to research entry timing and its outcome for market leadership with regard to niche players or hidden champions-type of firms. It introduces an original taxonomy to operationalize and distinguish between hard and soft measures to leverage advantage mechanisms related to market entry timing.

Details

Competitiveness Review: An International Business Journal , vol. 33 no. 6
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 2 September 2014

Tobias Schaefers

This paper aims to define the niche market concept and to investigate the extent to which purchasing niche products represents a form of conspicuous consumption. Consumers…

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Abstract

Purpose

This paper aims to define the niche market concept and to investigate the extent to which purchasing niche products represents a form of conspicuous consumption. Consumers increasingly seek products that differ from the mainstream, and companies regard niche markets as a promising opportunity beyond saturated mass markets.

Design/methodology/approach

Based on survey data that combines self-report scales and actual purchase decisions, the effects of different dimensions of conspicuous consumption on niche product choice are investigated using binary logistic regression.

Findings

Choosing niche products over mass market products is mainly influenced by differentiation tendencies. Moreover, consumers use niche products to strengthen their role as opinion leaders. Choice of mass market products, on the other hand, is influenced by assimilation tendencies. In contrast to common assumptions, status-seeking consumers are more likely to choose a mass market alternative over niche products.

Research limitations/implications

Based on the conceptualization of niche markets, this study reveals that niche products are a means for consumers to distinguish themselves. Limitations include the focus on a single product domain and country. Future research should replicate the study for other types of niche products and in other cultural settings.

Practical implications

Niche firms should explicitly consider the social effects of conspicuous consumption as a key driver of demand. Specifically, the unique nature of a niche product should be highlighted and recognizable to increase the acceptance among potential customers. Moreover, instead of focussing the status of niche products, marketing activities should address opinion leaders’ desire to maintain their standing among the social group by providing in-depth information and enhanced customer experience.

Originality/value

This paper addresses the call for a conceptual definition of niche markets. Moreover, while previous work focussed on the company perspective, this study allows for an improved understanding of consumer behaviour with regard to niche markets.

Details

European Journal of Marketing, vol. 48 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 August 2005

Wade Jarvis and Steven Goodman

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

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Abstract

Purpose

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

Design/methodology/approach

The paper uses revealed preference data of the Australian wine market, comprising 4,000 wine shoppers' purchases over a 12‐month period. Standard brand performance measures such as penetration and purchase frequency are applied to the data to define niche and change‐of‐pace brands. Using the same data, price tier loyalty is measured using polarisation, and discussed in relation to the attribute offering required and the direct marketing approach required for true niche positions.

Findings

The empirical results show that both niche and change‐of‐pace positions are prevalent in the wine market and small wineries, within a direct marketing channel approach, should target higher price points with branded wines but also lower price point products as well. The results suggest that attribute levels that are change‐of‐pace are unsustainable for small brands and can only be undertaken by large brands with the appropriate marketing resources.

Research limitations/implications

The authors conceptualise that small brands should focus on attribute levels that have excess loyalty. Large brands can absorb attribute levels that are change‐of‐pace. This conceptualisation requires further discussion, particularly from the strategy literature, as well as further empirical testing.

Practical implications

Whilst “niche” positions are the holy grail of some teaching and much practitioner endeavour, this paper has presented data that demonstrate the need for managers to ascertain if the position they occupy is in fact a niche or a change‐of‐pace position.

Originality/value

This paper fulfils a need by using revealed preference behavioural data to highlight different strategies for small and large brands. Behavioural analysis and papers in the past have emphasised the strength and tendency towards large brands without offering insight into small brand strategies.

Details

Journal of Product & Brand Management, vol. 14 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 April 1994

Tevfik Dalgic and Maarten Leeuw

The mass markets of previous decades have splintered into smaller marketsegments or niches, in which companies could be safer from cut‐throatcompetition and explore new market…

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Abstract

The mass markets of previous decades have splintered into smaller market segments or niches, in which companies could be safer from cut‐throat competition and explore new market opportunities. Although part of a positioning strategy, niche marketing may be used as a deliberate marketing strategy to create “safe havens” and business opportunities for many companies. Aims to analyse the concept, basic issues and different methods of applying this marketing strategy.

Details

European Journal of Marketing, vol. 28 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 14 September 2012

Robert Hamlin, James Henry and Ron Cuthbert

This paper seeks to establish that the instability of niche markets, and their predisposition to catastrophic collapse, makes market flexibility a prerequisite for long‐term…

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Abstract

Purpose

This paper seeks to establish that the instability of niche markets, and their predisposition to catastrophic collapse, makes market flexibility a prerequisite for long‐term survival among niche marketers. It describes the two ways by which a niche marketer can acquire this market flexibility and demonstrates the advantages of the second of these two approaches, i.e. the development of a portfolio of separated niches.

Design/methodology/approach

An in‐depth discussion of niche instability/implosion, and how niche market flexibility can be acquired to increase the survivability of such events, provides the context for a single in‐depth case study of a company employing a systematic niche market flexibility approach. A multi‐method approach was adopted drawing on both interviews and documentary evidence.

Findings

Planning for flexibility is essential for long‐term survival as a niche marketer. Two broad approaches to achieve this exist – i.e. contingency and portfolio planning – which are not mutually exclusive. The portfolio approach offers specific advantages and examples of its successful applications exist.

Research limitations/implications

This is a single case study.

Practical implications

The article has significant implications for practice, as fragmentation of markets and globalisation of production makes niche marketing desirable/essential for many players.

Originality/value

The area of planning for flexibility using a niche portfolio marketing strategy is under‐researched at present.

Details

European Journal of Marketing, vol. 46 no. 10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 December 2006

Erin D. Parrish, Nancy L. Cassill and William Oxenham

To examine how companies in the maturity stage of the product life cycle can implement and maintain a successful niche market strategy to increase competitiveness in the face of…

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Abstract

Purpose

To examine how companies in the maturity stage of the product life cycle can implement and maintain a successful niche market strategy to increase competitiveness in the face of new competition, with particular reference to the global textile industry.

Design/methodology/approach

Responsible executives in eight firms in the textile and apparel/clothing sector in the USA were interviewed face‐to‐face or by telephone, or completed an online questionnaire. The sample contains leaders in the industry.

Findings

Research results suggest that niche marketing is an effective strategy for countering price competition in a mature industry and can use a niche market strategy. They identify key success factors, the most important factor of which was found to be a thorough understanding of the targeted consumers. It is concluded that the marketing mix plays a more important part than is generally suggested in the literature, by communicating non‐price product attributes to the niche market.

Research limitations/implications

The small sample limits generalization beyond the companies that participated in the study and comparable firms in the US textile and apparel/clothing industry.

Practical implications

This research study shows, within its limitations, that niche marketing is a promising global competitive strategy for mature industries. The study proposes practical guidelines for putting it into practice.

Originality/value

This study generally confirms the literature, but comes to some original further conclusions.

Details

Marketing Intelligence & Planning, vol. 24 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 31 August 2010

Kjell Toften and Trond Hammervoll

The purpose of this paper is to better understand how strategic orientation guides the marketing strategy and marketing efforts of niche firms, by addressing the questions of…

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Abstract

Purpose

The purpose of this paper is to better understand how strategic orientation guides the marketing strategy and marketing efforts of niche firms, by addressing the questions of which strategic orientation niche firms apply and how managers in niche firms handle the potential problems associated with different strategic orientations. Based on these findings, managerial implications are discussed.

Design/methodology/approach

Qualitative research in terms of in‐depth interviews of key informants in six niche firms in the seafood and wine industries.

Findings

The niche firms appear to be product oriented and customer oriented at the same time. They overcome the potential problems related to the respective strategic orientations by focusing on their product‐related strengths, while benefiting from their close and few customer relationships.

Practical implications

Managers in niche firms should focus on high‐quality products, specific product concepts and the continuous improvement of these. In addition, they should initiate and develop close and long‐term relationships with a few trusted business customers.

Originality/value

This research paper is one among very few papers that present findings related to niche firms and their choice of marketing strategy. This paper of strategic orientation can contribute to a better understanding of how niche firms prioritize, allocate resources and choose strategies.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 1 July 2020

Jake David Hoskins and Abbie Griffin

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if…

Abstract

Purpose

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if and when brick-and-mortar retailers should include niche brands in their category assortments.

Design/methodology/approach

The authors empirically analyze the category performance implications of focusing assortments on niche brands, at the expense of mainstream brands, in two product categories that have significant niche brand presence, namely, coffee and beer. The empirical data include sales, distribution and marketing tactical information for 50 US geographic markets from 2001–2011.

Findings

This research finds that a mainstream brand focus has a generally positive impact on category performance. However, a store’s strategic shift toward niche brands is beneficial in certain cases such as when a store has higher average prices or product form variety or when they are part of a powerful chain. The authors also find that a niche brand focus strategy is becoming increasingly viable over time for brick-and-mortar retailers.

Originality/value

Little is known about the parameters that might make a brick-and-mortar retailer more or less likely to pursue a niche brand focus strategy and when doing so might improve category performance. This analysis helps clarify the conditions under which a brick-and-mortar retailer may experience category level sales increases from focusing assortments on niche brands.

Article
Publication date: 3 May 2013

Kjell Toften and Trond Hammervoll

The purpose of this paper is to present a concise status of niche marketing research and thereby provide a basis for further scholarly enhancement and insights for practitioners.

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Abstract

Purpose

The purpose of this paper is to present a concise status of niche marketing research and thereby provide a basis for further scholarly enhancement and insights for practitioners.

Design/methodology/approach

This paper takes the form of a literature review.

Findings

Reasons for why and when to pursue niche marketing, key success factors for implementing niche marketing and the potential problem areas are identified. Avenues for advancing knowledge about niche marketing are discussed.

Research limitations/implications

Practitioners benefit from this comprehensive review of findings and insights from previous research. Scholars benefit from this review, as it summarizes and identifies key areas for future niche marketing research.

Originality/value

There has be no known scholarly article assessing the status of niche marketing research since Dalgic and Leeuw's seminal work.

Details

Marketing Intelligence & Planning, vol. 31 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 October 2006

Erin D. Parrish, Nancy L. Cassill and William Oxenham

The purpose of this study is to examine how the textile and apparel industry can utilize a niche market strategy in order to compete with lower priced imports.

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Abstract

Purpose

The purpose of this study is to examine how the textile and apparel industry can utilize a niche market strategy in order to compete with lower priced imports.

Design/methodology/approach

The research design used for this study was an in‐depth case study method. The sample consisted of selected companies from the fiber, textile, apparel, and auxiliary sectors who are considered leaders in the US textile and apparel industry.

Findings

Results indicated that firms can approach a niche strategy from either a market or a product perspective. Findings also indicated variables that are used by firms for both approaches. The most important factor in which a firm needs to focus is understanding the consumer.

Research limitations/implications

Because of the limited sample size of US textile and apparel firms, the results can only be generalized to those companies that participated in the study and not the entire textile and apparel industry.

Practical implications

This research study showed that a niche strategy is a promising global competitive strategy for the textile and apparel industry that can be used to compete with lower priced imports.

Originality/value

This study clarifies not only how a niche market/product is defined by the industry, but also how firms can implement and maintain a successful niche strategy.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1361-2026

Keywords

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