Move over mass marketing, niche is the latest crush for marketers. 4Ps B&M probes deeper and unveils the simmering trend that marketers can afford to ignore, but only at their own peril... By pallavi srivastava, savreen gadhoke & angshuman paul
Imagine Vijay Mallya launching plush Kingfisher
flights with soft leather couches, live bands, et al, for travellers seeking only luxury-in-air. Or HP launches customised laptops only for tweens (age group 8-12 years) complete with in-built ‘homework’ software. Or imagine Star India launching a 24-hour yoga channel for health freaks alone. Do the above ideas sound suicidal, set to make a big red blot on their respective balance sheets? After all, these niche products and services will entice few customers and ultimately take away from the bottom line than add to it, right? Wrong.
In the emerging market-o-nomics, new money can seemingly be made only by servicing newer niches. Take the example of one of the biggest mass marketers, Maruti Suzuki. The omnipresent Maruti 800 for years remained a symbol for every Indian who was driving or aspiring to drive a four-wheeler. But that was when the only competition for the nimble 800 came from bulky yesteryear models. Gradually Hyundai (Santro), Tata (Indica) and Maruti’s own Zen sauntered into the market, allowing the consumer an elevation in comfort and style. Today, the 800 and Alto may still be the car for the masses, but their sales are showing negative YoY growth. Maruti is catering to the demanding and discerning consumer (the nouveau niche), with the Swift and SX4. “It’s all about horizontal as opposed to vertical segmentation. Some consumers may go in for a Swift because it’s ‘their kind of car’ rather than the fact that it is cheaper than Esteem,” offers ace marketer, Santosh Desai.
Imagine Vijay Mallya launching plush Kingfisher
flights with soft leather couches, live bands, et al, for travellers seeking only luxury-in-air. Or HP launches customised laptops only for tweens (age group 8-12 years) complete with in-built ‘homework’ software. Or imagine Star India launching a 24-hour yoga channel for health freaks alone. Do the above ideas sound suicidal, set to make a big red blot on their respective balance sheets? After all, these niche products and services will entice few customers and ultimately take away from the bottom line than add to it, right? Wrong.In the emerging market-o-nomics, new money can seemingly be made only by servicing newer niches. Take the example of one of the biggest mass marketers, Maruti Suzuki. The omnipresent Maruti 800 for years remained a symbol for every Indian who was driving or aspiring to drive a four-wheeler. But that was when the only competition for the nimble 800 came from bulky yesteryear models. Gradually Hyundai (Santro), Tata (Indica) and Maruti’s own Zen sauntered into the market, allowing the consumer an elevation in comfort and style. Today, the 800 and Alto may still be the car for the masses, but their sales are showing negative YoY growth. Maruti is catering to the demanding and discerning consumer (the nouveau niche), with the Swift and SX4. “It’s all about horizontal as opposed to vertical segmentation. Some consumers may go in for a Swift because it’s ‘their kind of car’ rather than the fact that it is cheaper than Esteem,” offers ace marketer, Santosh Desai.
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