Niche and mass markets

• The humble potato crisp is an example of a mass market product.
• Who owns Walkers crisps?

  Pepsi
• O'Donnell's gluten-free crisps are an example of a niche market product.
• O'Donnell's crisps are available in as many outlets as Walkers crisps.

  False
• Match the type of market with its characteristic:

  Mass market ↔️ Biggest part of the market

  Niche market ↔️ Smaller segment with specific needs
• In a mass market, customer needs are less specific.
• Niche markets have fewer customers but more specific needs.
• What is the key to success in a mass market?

  Low unit costs
• Economies of scale help reduce unit costs in mass markets.
• Walkers crisps hold over 55% of the UK crisp market.
• A strong brand can create a competitive advantage in a mass market.
• What are examples of ubiquitous mass market brands?

  Heinz beans and Cornflakes
• Targeting a mass market is considered lower risk compared to a niche.
• Achieving economies of scale allows a business to target a mass market profitably.
• Why do businesses target niche markets?

  Higher profit margins
• Specialist knowledge allows businesses to differentiate their products in a niche market.
• Niche market customers are willing to pay higher prices for differentiated products.
• What is a drawback of targeting a niche market?

  No economies of scale
• By targeting a niche, a business may be less likely to attract competition.