It’s a crowded marketplace.
Now, isn’t that the understatement of the century?
Are you stuck looking for a gap in the market? Something you can slip a product into?
There is no question that these days you cannot copy a competitor and win, except on price.
You’ll need a product that is different – or a brand position that is different – or to appeal to a different audience.
Check out your competition to provide you with clues to what opportunities might still be available to you.
How you break up your market is one way that people use to find “gaps” or “niches” that they can slip a new product into.
In the table 1 fictional model below, here is an example to illustrate furniture retailing. Applying the same principles to your market will help you to identify potential gaps in the market for a new entrant (you).
If you map out your competitors like shown, you can start to see how different players have different markets and messages. In this example, you can see that there is no furniture specialist for youth or young couples – which could potentially be a profitable opportunity.
While I’ve used life stage as the target market, we could easily replace it with some other criteria such as types of homes (see Table 2).
This would mean reclassifying by such segments as homeowners with back yards, families in rental properties, shared accommodation (such as flat or room mates), or apartment dwellers and so on. (It comes down to what is relevant to the industry you are looking into.)
If, for example, most major groups of the target market were fully serviced, I would recommend looking at another industry. The problem you will have in an industry that is well serviced is creating product differentiation, and you really need to find a target market that is not being adequately serviced to increase your chances of success.
RELATED POST: The Niche Marketer
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