Entering the market

So you know you have a great product but you need to find how to position your brand in the market. Is that the dilemma you are facing at the moment as a new kid on the block?

Well ideally it should not be the case as while designing it you must have decided on your target market. But it generally happens to be the case because you tend to feel that your product has a mass feel.So should you target the niche market initially or go for the whole pyramid?

Ideally you should target the niche market to begin with.Why? let’s see!

1. Increases your brand equity- Your new product/service is an exclusive thing to have! Only few people have access to it and others are vying for it. Suddenly you have become the talk of the town and a page three figure.

2. Use it as a testing ground- The market segment is small and niche- implying high demand for quality. It provides you the perfect platform for identifying the shortcomings and eliminating them, thereby making your product/service much more competitive in the long run.

3. Focussed promotion- Since your product is new it is not advisable to target the entire pyramid with promotion since costs will run high and things can very quickly go wrong thereby causing you considerable losses. So going for a focussed segment is definitely a step in the right direction as if things go haywire you can bounce back.
4. Re-analyse your strategy easily- Since the market segment you targeted has been small, you now know where you stand. Conduct a survey among your users and hear what they think about you. Analyse your margins and growth and how far or ahead you are from your goals.Get all the facts in hand and then decide-
a) Is this the right segment you belong to? If not you know where you belong and now need to take the steps to increase your profitability.
b)Are you a product good enough for the mass market? You may want to extend the brand now to different segments if you feel based on the reaction of your customers. The question to address here is will it not dilute your brand value ? To some extent yes but if you have a quality product suited for mass appeal you will make up for it with higher volume sales.

Always remember the key to success is not marketing or branding- It lies in building a great product !

You will love reading: How to name products.  Must read article Spot the innovators


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