A niche market is a focused and targeted part of the market. Your target market is the specific group of people you work for e.g. people with learning disabilities or older people. Your niche is the service you specialise in offering to your target market e.g. supported living, care homes or home care for example.
Operating in a niche narrows down or specialises your service to a particular audience and provides a number of business benefits, including:
You and your team become specialised in your area of expertise
Business growth is more tangible and focussed.
Can be more profitable.
You can be more targeted in reaching your audience.
You become known for your niche and therefore networking and forming alliances with commissioners and other stakeholders could become more valuable.
Having completed the exercises in weeks 1 and 2, now ask yourself:
Can you tailor your current service to attract more of the same type of people (instead of trying to meet the needs of a varied audience)?
What advantages could you gain from focusing on what you do well?
Top Tip! Your niche might not be about the whole service offered, it could be your location, certain facilities or features that are appealing to a particular group of people.
Once you know your niche - research companies that are operating in that niche and compare your organisation’s offer to what they do. Ask yourself:
What could we do better?
How could we stand out compared to them?
Once you have been through this process it should help you see the overall business in a clearer light - what needs to be addressed to improve customer satisfaction and how to start to focus more effectively on growing the business by concentrating your approach.
Next week: Define your marketing strategy for growth