Analysis Of Niche Marketing Essay

Question:

You are required to Identify three Nicher's firms and/or brands.

Answer:

Introduction

This essay is based on the niche marketing concept related to the marketing activities that are undertaken by an organization for small markets and for the people who have some different desires from the particular market. The niche marketers aim at small groups of people rather than larger ones. The strategy of the niche marketers is to channelize all the efforts regarding marketing towards a small group of the population. The niche strategies do not exist in the organization; however, the marketing managers make these strategies by identifying the needs of the customers (Aufderheide, 2013). Niche marketing strategy is technique that is used with the aim to select a specific or unique segment of the market. The identification of the wants of the customers and their specific needs helps in the creation of niche market segments. The niche marketing strategy helps the organization to deliver the best possible solution to the customers based on his or her needs.

The companies that are taken into consideration for this analysis are, Dropee, JY Aquaculture Resources and Mii FoodService Pte Ltd. Dropee provides a platform for B2B market for the retailers as well as the wholesalers. The retailers can have access to more than thousands of products of the wholesalers and grow their business accordingly. Dropee promotes many branded products of the categories including, office and stationery products, dining and kitchen related products, bath and bed related products. The products also include housekeeping and cleaning related products and personal and health care related products as well (Dropee.com, 2017). The second company that is taken into consideration is JY Aquaculture Resources, which is active company that works in filtration system of household water. The company aims at providing direct services to the customers to save the costs related to the agents (Jyaquacultureresources.webs.com, 2017). The third company that is taken into consideration is Mii FoodService Pte Ltd. This company works in the field of supplying equipment to the hotels and restaurants used for the purpose of cooking. This company is new in the market and is based in Singapore. They provide food equipment to the restaurants in Singapore (Miifoodservice.com, 2017). The analysis related to niche marketing is based on these three companies and the different aspects of the business related to niche marketing.

Discussion

The three companies that are considered for this essay have followed the niche marketing strategy. The first company is Dropee, which connects the suppliers and the retailers. This website makes it easy for the retailers to establish contact with the wholesalers. The organization has an interactive website that provides the link between the manufacturers or suppliers with the retailers and the wholesalers. The website provides opportunities for the retailers to purchase the products in bulk quantities directly from the wholesalers and making the payment through the website itself (Dropee.com, 2017). The website also provides credit facilities for the retailers on the approval of the suppliers. This company has almost zero level of competition in the market as there are not many companies that provide these facilities to the consumers. The customers who are concerned in this case are the retailers and the wholesalers as well. The direct platform that is provided to them by the website helps in decreasing the costs related to the middle men of the supply process (Boons et al., 2013). The company has maintained good relationships with the suppliers and the retailers by providing them with facilities of making payments of the purchased goods through the website itself and making the credit facilities available for the retailers. The website of the organization provides the facility of easy returns and refund (Toften & Hammervoll, 2013). The defective merchandise that maybe found in the shipments can be returned to the company within fourteen days of purchasing. Some of the products are exceptions in this case. The refund policy of the organization is also strong and it emphasizes on the satisfaction of the customers regarding the products. The organization promises direct reimbursement of the money for the retailers in this case (Bressler, 2012). Dropee also ensures the returns of the goods that are purchased from the third-party sellers or the suppliers who are registered with Dropee. The return and refund policy of Dropee is clean and transparent. The company encourages in the return of the products based on some criteria which include, the damaged or defective prodcts, wrong products or products that not delivered in time. The transparent return and refund policy of the organization helps Dropee in maintaining healthy and fruitful professional relationships with the suppliers of the organization as well as the retailers who purchase the goods. The payment process of Dropee is also secure and safe, which helps the new users in trusting the organization. The company has its own efficient logistics team which aims at delivering the products safely to the retailers. The registration process of the website is also quite user friendly and fast and the instructions are provided clearly regarding the registration of new members in the Dropee website (Cronin-Gilmore, 2012). The organization aims at providing the business opportunities to the retailers who wish to purchase their products directly from the wholesalers. The group of target customers is small in this case. The reason is that the organization is targeting the wholesalers and retailers in this case and not the consumers directly. This is helping the organization in providing the best service to the target customers. Instead of targeting a large group of people or customers, the organization is targeting a small group and trying to fulfil the needs only of that particular group. This has helped the organization in going strong since its inception. The organization has followed the niche strategy of marketing and has gained huge advantage due to this. Dropee does not face much competition in the same industry, because there are not many companies that provide these facilities to the retailers and suppliers (Gupta, Seetharaman & Raj, 2013). The service provided by Dropee has also proved to be effective in this case, as this service in huge demand among the retailers of Malaysia. Purchasing the products from the Dropee website helps the retailers to buy those products at much lower rates as the middle men are eliminated and further, the retailers can gain much more profits by selling these products.


The second company that is considered for the niche market analysis is JY Aquaculture Resources, which is an organization that actively supplies filtration system for water used for household purposes. The company aims at supplying the filtration systems to the houses without involving the agents in between. They source the items directly from the factories and thereby supply them for household purposes (Jyaquacultureresources.webs.com, 2017). This helps them in providing the goods for much lower as compared to the prices that can be provided by involving the agents in the process. This organization also provides the best quality of services after sale of the products to the customers (Herweg & Herweg, 2017). The company aims at providing the filtration services for the water used for household purposes and they also try to provide the best level of customer satisfaction as well. The company has an interactive website and it has a variety of products that are showcased in the website. The company provides filtration techniques for alkaline water, which is a type of water that is suitable for health related purposes. There are many advantages of alkaline water for the health of an individual. The alkaline water helps in managing the pH level of the normal body of a person. Alkaline water has many other advantages which includes the reduction of blood sugar level, blood pressure and cholesterol level as well. The company has a variety of products in its web store that is showcased with all details in the organization’s interactive website (Ibrahim, 2015). The products include the Yamada 389-20 hot or warm or cold alkaline water filtration, the 4 stage k-pro series alkaline water filter (p.h8.5), the Yamada 389-17(hot and cold) alkaline water filtration. The other products include, Water Dispenser NWD389-16, Yamada WDYLRZ-01A Water Dispenser WITH 4 stage alkaline filtration system. These products are available in the website of JY Aquaculture at much lower rates as compared to the market. The reason being that the company sells the products directly from the factories to the consumers. The organization is one of a kind in the field of water filtration and it has almost no competition in this field. The organization is dealing with a small group of people, which includes the water filter companies and their customers. JY Aquaculture acts as a connection between them and supplies the goods to the customers without involving the agents which leads to the reduction in prices. The low prices of the products help in attracting the customers towards the company and thereby increasing the customer base (Kivimaa & Kern, 2016). The company aims at a small group of customers and tries to provide the highest level of satisfaction to these customers. The niche strategy is useful for the organization because the organization becomes successful in providing the best of services to the small group of people. The company is focussed towards only the water filtration products and does not aim at providing any other type of products to the customers. This helps the organization to concentrate on the products that they are manufacturing and thereby providing the best products to the customers at the lowest prices (Sun et al., 2012). The company aims at building strong relationships with the customers so that they can understand their needs and demands. The interactive website of the company has options that provide the opportunity to the customers to interact with the company by filling testimonial forms and submitting it to the company (Kumar & Reinartz, 2012). The forms will help the company to get the feedback of the customers and thereby act upon this feedback and improve their products and offerings as and when required. The organization has a stable business since the time of its establishment and has been providing valuable service to the customers as well. The company has a different concept altogether and this is the reason why they have no competition in the market.


The third company that is considered in this essay is Mii FoodService Pte Ltd. The company was founded in the year 2015 and it has an innovative concept of supplying food based equipment to the restaurant and hotels. The company aims at supplying tailor-made solutions for the professional kitchens of the restaurants and the hotels. The goal of the company is to find out the suitable and best fit solution for the kitchens (Miifoodservice.com, 2017). The company is creative in nature and has fruitful partnerships with the manufacturers of the products by understanding the needs and demands of the market. The vision of the company is to provide the easy to use, within budget, safe and hygienic products to the restaurants and the hotels as well (Suliyanto & Rahab, 2012). The organization is focussed towards developing its brand and maintain a good relationship with the customers (Lechner & Gudmundsson, 2014). The approach of the organization is friendly in nature and that is the main driving force towards the innovative approach of the company. The team of the people working in the organization have over 10 years of knowledge about the kitchen products and have immense experience in the field of commercial cooking. The company has its headquarters in Singapore itself and the food service stations are located in Malaysia and Kuala Lumpur. The organization has tie-ups with many brands which provide kitchen equipment including, Frylow, Vitamix, Zumex, Peel Master, The Spade, Frontline International, NaOCLean, Lincat, XLR Rail. These companies work in the field of providing technology based kitchen equipments for the restaurants and hotels. Frylow produces equipments that are used for frying purposes (Lee, Shin & Park, 2012). The device is photo-catalytic in nature and is used in the deep fryers. The technology helps in extending the life of the oil used for frying by around 400% and the period of changing the oil is longer. The other company producing technology based kitchen devices is Vitamix which specializes in the production of mixing or blending machines which reduces the preparation time of the cooking process and increases the cooking precision as well. Another process that is important in the professional kitchens is the peeling of fruits, this is taken care of by the Peel Master company who are specialists in designing tools that are used for the purpose of peeling fruits. Mii FoodService sources the kitchen equipments from all these companies and supplies them to the hotels and the restaurants. The company acts as a business partner for the restaurants and hotels where they supply food. The equipments are user friendly and the warranty of the equipments are also ensured (Martens, Matthyssens & Vandenbempt, 2012). The organization provides the facility of leasing the equipments, renting the equipments and they also have qualified project managers who can help the restaurant in any aspect of the business. The company has little competition in the market as it is a newly established organization and their field of work is also innovative and different. The organization always aims at building and maintaining strong relationships with the customers and look after their needs, desires and problems as well. The organization acts as a partner in the business of their clients and not only as a supplier of equipments (Rosli, 2012). The company is new in the market, however it is evident that they working quite well in the field of the management and supply of food equipments. The organization has many happy users including, Hyatt hotels, Toby’s Estate, Yum, Swensen’s, Marina Bay Sands, Singapore, Starbucks Coffe, Sofitel Singapore, Amakase burger, Montreux cakes, One Farrer Hotel and Spa, Mc Donald’s, Highlands Coffee, Dunkin’ Donuts, Burger King and many more. The list of the satisfied customers of the company in such less time proves that the company has become quite successful and it has built its own position in the market (Shaw, 2012). The market is also not quite large as the type of company providing these facilities is not much. The organization is serving a concentrated market of the restaurants and hotels and trying to provide the best of services to these customers. This will help the organization in maintaining good relationship with the restaurants and hotels and trying to increase their business in the sane sector.

Conclusion

The analysis of the three companies that is, Dropee, JY Aquaculture and Mii FoodService Pte. Ltd. proves that niche marketing is a useful way of marketing the products and services of a particular company. Niche marketing mainly refers to the strategy made by the marketing managers to promote the products of a particular company to a small group of prospective or potential customers. The organization concentrates its marketing and promotional activities towards a segment of customers. This results in effective marketing of the products and the highest level of customer satisfaction. The companies that apply these strategies are small in size and they do not have a high level of competition in the market as well. The organizations aim at a specific group of people with their marketing activities and take sufficient measures to satisfy the needs and wants of that group. The three companies that are chosen for this analysis apply the same technique, as these companies are different and innovative in nature and they concentrate on a particular group of customers and target their activities according to their needs. This essay can be concluded by saying that niche marketing is a useful strategy for small companies.

References

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