A niche market is a specific segment of a larger market with distinct needs and preferences. Finding the right niche is crucial for start-up success. It allows you to focus your resources, differentiate your offerings, and build a loyal customer base.
The process of new product development starts with the search for new ideas. Abstract ideas are molded in such a way to suit the market needs.
Businesspersons who want to capture a major share of the market have to think out of the box, to tide over the competition. Small things can make a big difference. Monotonous pattern of thinking will not help you in the long run to survive and sustain in the market.
The objective is to obtain ideas for new products, new attributes for the existing products and new usage for the existing product line. Why do you think so much of investment goes into research and development? The fruits of such R and D activities are reflected in the form of improved sales turn over.
Market updates on a daily basis also gives you an excellent feedback about the new products that throng the market.
Think about this, it is not possible for every organization to invest such huge sums in R and D which demands technically qualified personnel to carry out the research activities and it is next to impossible that each and every firm in the market can establish the necessary infrastructure for the purpose of research.
What might be the solution? Companies generally rely on internal sources, customers, competitors, distributors, suppliers and others for new product ideas. The sales force of a firm can provide excellent inputs as they meet customers on a regular basis.
Through SWOT analysis, a company can make a conscious, deliberate and systematic effort to identify opportunities that can be profitably exploited.
Top management should encourage the employees to think more imaginatively to create a niche market for its product range. The management has to prioritise its objectives first and channelise the efforts of employees accordingly.
The success of new products can be attributed to two aspects, one is creativity and the other being quality.