4.3.2 Niche Markets

• A global niche market is where a business targets a smaller segment of a larger market,where customers have specific needs and wants,but the market is on a global scale with products sold in countries round the world.
• Characteristics of a global niche market

  Specific features of a global market that make it identifiable

  • Clear understanding and specific needs of customers
  • Location usually found under own brand name
  • Expertise in that field
  • Prioritising profit over market share/presence
  • Premium prices
  • Limited competition
• Advantages of a global niche market

  • Can specialise,meet specific needs
  • Listen to customer feedback
  • Products tend to be price inelastic,so premium pricing can be used
  • Smaller markets - better customer relationships
  • Some degree of EOS can be reaped,one product marketed and sold throughout the world
• Disadvantages of a global niche market

  • EOS can never be fully achieved
  • Market can become self-saturated and difficult to expand organically
  • Success may attract larger businesses to compete and bring to mass market
  • Niche markets can be more vulnerable to changes in consumer taste
• How could you challenge whether a product was in a global niche market as an evaluative point?

  for example Red Bull it is in so many shops and it has high sales volume so you can argue that is no longer a niche so energy drinks could now be classed as a mass market in itself