Whenever you try to create a differentiation – it is always with respect to a market.
The red egg differentiation will not matter to a person who does not eat eggs.
I talk multiple times about Joe Polish and Dean Jackson. The reason I am so impressed with them and their podcasts on ilovemarketing and morecheeselesswhiskers is because they explore this concept in so much depth.
You will hear a lot of marketing people talk about identifying a niche in the market, but fail to say the immediate statement after that. Is there a market in that niche
This is the most critical aspect when you decide to segment the market for a niche.
When I started my career in selling process control equipment, we had an amazing product which was also very expensive. Indian industry at that time was still new to the idea of micro processor based process control equipment.
Our product was very good good for controlling complex processes. However there were very few companies who really had the need for such a powerful equipment. And we didn’t have a range of products.
While there was a niche in the market for controlling complex processes, there was no market in the niche…. because there were very few companies with a need for such a product.
Eventually this product could not take leadership even though we came out with this amazing product much before anyone else.
So while finding a niche in the market is important, to be able to differentiate and stand out. You should always see if there’s a market for you in the niche.
Till next time.