Focused or Niche Strategy

(b) diversified its product portfolio; extend target customers and meet the variable needs of customers.

Before proceeding with the next section (objectives), it is recommended that you complete the Marketing Plan Worksheet. Ask the academic mentor in the learning community for this if you do not have it.

Useful where multi consumer type, each with own needs, but not one product to meet all needs

By adding all these steps and by implementing these strategic objectives we can realize the tactics and measure the target audiences as well. This business plan must also include the shareholder value or financial perspective, our customer value perspective; the business must know the process or internal operations perspective well keep a balance sheet on what goes in to the business and what goes out

1. First define company’s strategy, objectives and work towards the goal. Use some kind of framework to plan out the strategy. Second establish key performance indicator to measure the results. Third identify risks that can drive variability in performance since this is physical product. Fourth establish key risk indicators and tolerance levels for critical risks. Strategies the company should follow or implement in order to reduce the risk are community based marketing. They should be interacting with their customer on daily bases. The company should develop technological innovation. Lastly focus differentiation. Some companies should compare historical performance with today’s performance. Lastly the companies can provide integrated reporting and monitoring. If company starts to take these steps, they would be reducing the potential risks.

The first condition for a niche market is ideal is if the market is large enough to be profitable for businesses. The fact that the niche market 's size is too small to offset the cost to the business. In this case the "exploring" a niche market have no meaning for business anymore. Secondly, niche markets have to grow potentially. Once businesses have chosen a niche market, the growth of niche markets synonymous with the growth of the company. In fact if holding a niche businesses can not afford to expand business will bring a lot of risks, no assurance market segment that will not shrink. The third reason is niche market is not ideal anymore to exist due to too many competitors. Even though the opponent is not too strong a threat to enterprises - pie will become less tasty if it is divided for too many people. Once you have identified a niche market to satisfy all three conditions, then on the 4th reason, it now needs to do is to determine their ability to meet that segment or not. If the potential of the small businesses that require large customer, the exploit that niche will become meaningless. The last thing. whether the company has the ability to protect themselves against the attacks of the main competitors or not? This is an important factor to ensure the company can stand on its

Identify the opportunities, to monitor how well the company is doing and understand how marketing works overall.

A specialization strategy focuses on a narrow market segment or niche and pursuing either a differentiation or cost leadership strategy in that market segment according to Jean Phillip and Stanley Gully. To be successful, businesses following a specialization strategy are required to know their market segment very well, and often enjoy a high degree of customer loyalty. The company can be successful using this strategy if it results in either lower costs than competitors serving the same niche or an ability to offer customers something that other competitors cannot.

Markets consist of buyers that differ in their needs, wants, resources, locations, buying attitudes and buying practices. To reach customer insight, it is important to understand the needs of different segments and to communicate pertinently to them (Brown L, Brown C, Gallagher SM, 2008).

Develop an action plan of strategies and tactics to be implemented. Finalize the marketing plan.

The strategy I chose for the simulation is “Niche Cost Leader." First, with the key focus being value, this strategy will challenge me to keep costs at a minimum and force me to streamline overall costs to produce a valuable commodity that, in turn, will generate financial success that can be shared with internal and external stakeholders. Second, as the success of this strategy primarily relies on the existing product line being prosperous, I will be able to practice and hone my forecasting skills based on one product. Though I eventually will produce more than one product, most of the simulation will be conducting under making the primary product as successful as it can be, and reliable forecasts are

This section will focus on customers’ needs, identifying collaborators and their strategic goals and identifying the competition that provides similar products.

Keep in mind that the level of customization and system integration should be the primary basis for segmenting the market and selecting a target. Construct a matrix and answer the following two questions. Keep in mind that high level of customization and integration would be costly.

Fully focused business provides a very limited type of services to a narrow and specific market segment (Palmer, 2011). A market focus firm focus on a narrow market segment but provides wide range of services. Whereas service focus industry provides a narrow range of services to a broad

The focused low cost strategy purposed to create a price advantage for the company. Usually, a company that use this kind of strategy more focus on a specific market niche, offering products to a narrow market segment instead of a broad one. The company then aims to be the cheapest supplier in the particular niche but not necessarily in the overall market.