Given the 3 assumptions I had stated in my last post apply, from here on we will look at different examples – on how I would go about expanding the business in the niche.
Its never easy to get into a new market with a new product or service. So we first do our survey on the demographics to see if there is a large enough market. So if we were to look at the market for Red Eggs – our niche in the eggs segment, that we want to capture then we would find a segment of people who like to have gourmet eggs, who understand the benefits of these eggs.
Then our first effort would be to find where can we get hold of the top influencers – the top 25 people you could influence with your product or service who would then vouch directly or indirectly. You need to then figure out what’s in it for them, how you can help them, for them to be interested in looking for you. What Robert Cialdini call the principle of “Reciprocity”
So if there is a celebrity chef, a store which sells gourmet foods anything else….list out all these 25 people. Then work to figure out who do you know, who knows someone, who knows one of the 25 people and start making your connections.
First help them in areas where they need support – and everyone has some areas where they need support. Maybe you help them in their charity work – all the red eggs that you sell – all the revenues go to fund their favorite charity as an example. This helps get you exposure and further connects.
Since you have chosen a very small market to focus on you will not have to waste energy or money or time to go all across and reach people in distant places. You will be local in the area and the word about your product or service will spread fast.
As a next step you need to find the people who already do business with the potential client you have identified. So if you are looking to start in a small county in New Jersey which has luxury homes where you think your ideal client for “red eggs” exists then you find other businesses who sell to those luxury home owners. The dry-cleaners, the carpet cleaners, the local retailers and set up a mechanism to help them keep all the profits from what they sell of you “red eggs”. If you hear the ilovemarketing podcasts from Joe Polish and Dean Jackson you will get so many ideas on doing these partnerships
Which brings me to a very important concept , to pick up tomorrow – the life time value of a client. You can’t do a lot of the stuff I am speaking about above, if you don’t understand this concept.
Till tomorrow then.