Niche Market vs Mainstream Market

Niche Market vs Mainstream MarketA niche grocery is a focused, targetable portion of a grocery store. Niche markets tend to be sm completely but sanitary defined and specific segments of the state. The market segmentation can enumerate on the product universe sold and can vary based on the targeted audience based on price, quality or several(predicate)iation strategies. Since the targeted audiences be usu eachy small and well off, crimson though at that place is a specific portion, the profit margins be on the high end. Niche markets do not exist but are made by entrepreneurs, identifying the postulate and requirements which are not being met and then aiming to satisfy these with products or run.In a Mainstream Market, products and services appeal to a broader spectrum of the society, and the products and services are readily available to the general public. (Business dictionary, n.d.).In niche marketing, the company aims to sell to specific people and targets their p romotional test specifically to the needs of people not being met by mainstream and develops products and services which can be specifically customized and tailored to meet the needs of these individuals, resulting in a strong brand image. However low sales volumes are yielded in thisMainstream Marketing targets all the individuals and profits generated depend upon the quantity of products sold. The company tries to accommodate all the desires of the entire market into one product type. An other(a) advantage being that the producer can close d admit the market for other competitors. However different marketing mix strategies need to be enforced to reach target audiences as well as multiple products need to be produced. (Rangkuti, 2007)Four prosperous niche market occupationes in United Arab Emirates (UAE)Rolls Royce MotorsOwning a Rolls Royce is the ultimate show of wealth and claiming that a person has made it big. due to the immense oil wealth and hugely successful crinklees present in UAE, and the need to stand unwrap from others, this car brands major(ip) markets include UAE. The highly levels of craftsmanship, use of latest technologies and being bowl over built as well as unlimited customization opportunity which caters to all the desires and needs demanded by customers attracts the rich and wealthy to this brand. The fact that not e realbody can acquire this car, and special limited edition works being launched ensure that brand loyalty and image is strong. The opening of the worlds biggest showroom in Abu Dhabi has also helped to increase the customer gaiety and demand in this state of matter. (AGMC Rolls Royce, n.d.)Jumeirah Hotels and ResortsThe Jumeirah group is the leading hotels division and is one of the intimately luxurious and innovative targeting the rich and famous all across the world. The group has its own hotels in Dubai, London, New York and across the globe. Having its own training academy, The Jumeirah Academy of Hospitalit y Management, ensures that its entire staff is well trained and world class service is provided to its customers. The major attractions include Burj Al Arab, the worlds only seven star hotel and world restaurants and bars as well as complete A to Z services are made available at a phone call. Having world class Spas and the only themed amusement park in UAE have helped the group earn legion(predicate) international travel and tourism awards. (Jumeirah International LLC, 2008)Al Tayer InsigniaAl Tayer Insignia is the largest luxury retailer in Middle East and is headquartered in UAE. The brands portfolio includes Bvlgari, Boucheron, Bottega Veneta, Dolce Gabbana, Giorgio Armani, Gucci, Ligne Roset, and Yves Saint Laurent amongst others. payable to high net income available per person, people in UAE tend to prefer these luxury brands and the Al Tayer radical caters to their needs by under stand up the regions appreciation and needs of luxury and harnessing brand potential through s ystematic and timely investments. In fact, the Al Tayer group is the first to have license to operate Harvey Nicholas outside(a) UK and Bloomingdale outside USA. This attracts customers as they are assured that al the latest products are made available and the company employs over 1200 employees which embodies excellence in service across all the stores. (AL Tayer Group, 2010)Arabian AdventuresArabian Adventures is the leading destination management company of this region, catering to the needs of the local as well as tourist population by offering cruises, excursions, adventure tours, cultural bears as well as extreme sports opportunities. As it is a part of Emirates Group and has professional associates and 300 hundred permanent wave staff trained in 10 different languages. This high quality of service and vast array of activities which are offered under one roof attracts customers. uplifted levels of safety standards, creative approach, individual client customization of packa ges, in depth knowledge and value added services continue to attract clients and customers to this company. (Arabian Adventures, n.d.) p office stafftariat TWOPESTEL Analysis of tailor and changes that bequeath give rise to niche market opportunities in the next three years in UAEThe PESTEL Analysis testament be used to tumble the trends and changes. A detailed description and definition of PESTEL has been included in Appendix 1 for reference. The PESTEL model looks into the macroenvironment by looking into the following factors for considerationPOLITICAL The UAE has a very stable political environment and even though in that location is no democracy, the rulers have clear and established laws and policies which are favorable for attracting businesses and investment from abroad. This country has zero income tax and so is the reason for attracting a lot of investment from abroad. The setup of dedicated industrial, information and telecommunication and university zones encourages people to set up business as well as ensure a ready pool of talented and educated staff/employees are available.ECONOMICAL The global recession had a negative impact across the globe but UAE in particular was the least affected and hence is amongst the first countries to have successfully come out of it. Energy availability at a cheaper price compared with other countries is also a major factor for various industries to have been setup here as power is available with zero interruption. Interest rates are also low and finance is available at flexible terms in UAE. Due to the recent recession, banks and finances have shifted their attention to Small and Medium Enterprises (SME) with the government also supporting the SME sector.SOCIAL The UAE population has a higher income per capita and consists of majority of expat population which has come to UAE seeking a better lifestyle. Hence, there is tendency to purchase goods which are considered a luxury back home and improve the lifestyle standards. The UAE is very cultural country and there is freedom for everybody to practice their culture freely, hence a lot of revenue is generated during Islamic festivals as well as Christmas and other much(prenominal) days of respected communities.TECHNOLOGICAL The UAE government is investing a lot in latest technologies and ensures that the latest is available to the public as well as businesses. In fact, SME businesses are offered for example high internet speeds and bandwidth to encourage them and special incentives are offered to those businesses which adapt green policies and techniques.ENVIORMENTAL UAE is the largest consumer of treated water and has the highest emissions per capita due to opinion on treated water as it is a desert and air conditioning which takes up a lot of energy. Hence businesses which tend to offer such services using fewer emissions are encouraged as well entire foodstuffs shops have the government backing to ensure healthy and fresh food is a vailable.LEGAL Clear and precise laws are written which encourage businesses as well as protect employee and employer rights and prevent any abuse. Any new build commercial or residential is required to have solar panel etc. to earn green credentials and be energy efficient or else not seek approval from government. Zero Tax on income and special funds for entrepreneurs and competitions are held to find such ensure that there is positive process in business every year.Four potential niche markets where small business might flourishThe first potential niche market is that of organic produce. As UAE is desert, fruits and vegetables grown here tend to be produced in artificial conditions to ensure cheap supply. By focusing on the health conscious population, and providing organic produce a good small business can be set up which has the potential to grow big if done properly proceed the green trend, the second market to be considered can be providing solar panels and alternative elec tricity sources for residential subject fields. The residents of UAE would wish to prefer to reduce their air-conditioning bills and this is a salaried area to focus.The third niche market can be considered of providing hand stitched luxury goods using exotic materials and ensuring limited supply as there are high margins to be earned in this area due to vast income available for expenditure in high net individuals.As there is vast majority of expats, conventional restaurants can be opened catering to the needs of any particular community as they would love to have traditional home cooked style meals. These do not have to be unnecessarily expensive, as greater profits can be earned through volumes sold. as well as the hectic and fast lifestyle will favor the restaurants offering take away as this will save a lot of time for people.TASK THREEentrepreneurAn entrepreneur is an individual who builds up capital, establishes a company or by organizing a venture to take benefitaof an opportunity through jeopardy or exercising an initiative. (Sulliavn, 2003) This word is a loan word from French and first defined by Irish-French economist Richard Cantillon.In other words an entrepreneur can be described as a person who is willing to set up a new organization or enterprise or company and take responsibility of whatever the outcome will be.An entrepreneur leads the company and by selecting appropriate managerial staff displays leadership skills. Good knotty management skills and the ability to build teams are essential qualities requiredEntrepreneurs emerge on demand as they seek opportunities and are well placed to extend to them and by doing so become leaders as they perceive that they amongst the few present who can analyses and solve the problems. Social composition of workplace and workplace peers are the most significant influence in an individuals decision to become entrepreneur. According to economist Joseph Alois Schumpeter (1883-1950), entrepreneursaar e not necessarily motivated by profit butaregard it as a standard for measuring achievement or success. Schumpeter discovered that they greatly value self-reliance, strive for distinction through excellence, are highly optimistic, and always favor challenges of modal(a) try. (Business Dictionary, n.d.)There are various types of entrepreneurs, Social Entrepreneur who seeks to improve social, environmental, educational and economic conditions, Serial Entrepreneur who continuously comes up new reports and innovations, Lifestyle Entrepreneur who places passion before profit and Cooperative Entrepreneur who doesnt works alone but works in collaboration with other entrepreneurs amongst others.Entrepreneurship.The American Heritage Dictionary defines entrepreneur, to mean A person withinaa large corporation who takes directaresponsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.Entrepreneurs focus on research, innovation and cr eativity to transform an idea into a profitable venture while working within an organizational or such environment.Entrepreneurship is the act of behaving like an entrepreneur while working within a large organization. Entrepreneurs parting theasame traits as entrepreneurs such as conviction, zeal and insight andaas the entrepreneur continuesato expresses his ideasavigorously, it will strike the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds and if not he is likely to leave and start his own organization.How the role of manager differs from that of an entrepreneur or an entrepreneur?An entrepreneur starts a business to fulfill his vision and has a personal stake in the business and takes the risk of the outcome whereas the manager provides his service in an organization already established by someone.An entrepreneur provides idea, a new solution to a problem, new idea whereas the manager in in ch arge of running the company, probably in the direction set by the entrepreneur or entrepreneur.There is a differenceain standing an entrepreneur is the owner of the company whereas the manager is an employee of the entrepreneur or his company. Also an entrepreneur is not induced to fall into fraudulent behavior whereas a manager might do so possibly to earn more or in coercion with rival firms.An entrepreneuradeals with faults and failures as a part of learning experience where asaa manageramake every effort to avoid mistakes and he postpones failure.Entrepreneur is required to have certain qualifications and qualities like highaaccomplishment motive, innovative thinking,aforethought, risk-bearing ability etc. Conversely its mandatory for a manager to be educated in the fields of managementatheories and practices.An entrepreneur can be a manager but a manager cannot be an entrepreneur. (Cite HR Padma Praveen, 2007)TASK FOURAs a sole trader setting up a small niche market business, o nline technologies will definitely be needed to be utilized to reach out to the target audience as well as achieve a greater share of the market than otherwise possible. After all, only a certain amount of foot traffic will come into the shop and does not guarantee good sales. In fact, in this modern age one does not even need to upon a retail front or shop and utilizing the Amazon business model run a successful business by just using networking.The web will be the primary method to tug the companys products as it is the most cost effective method to reach a wider audience. Most frequented websites such as news websites and social media websites can be contacted to place tickers, or pennon advertisements on them respectively which can ensure appropriate audience is reached.However the best way to utilize the web is to set up a website which not only displays the company products, gives contact numbers but also gives the opportunity to buy products online. This is the best way to j ump start a business without even opening a shop front. Optimum online security will be needed to put in place to ensure that credit/debit gameboard details are not lost and customers feel comfortable in using this facility. Also other payment methods such as PayPal can be used to offer wider opportunities. Cash on delivery can also be offered and some sort of loyalty program can be implemented to encourage sales and increase customer loyalty and bring customers back.Accounts or pages can be made on social media websites like Twitter, Facebook, and LinkedIn etc. which will help reach out to the younger generation and increase customer base. Constant updates and status changes will help generate hype about products being offered as well as online polls can be utilized to decide which colour or product type needs to be launched. This will ensure no bad inventory ends up at the end of every season. Also this will give the customers and potential clients to freely interact with the bus iness and have their queries answered and any complaints resolved directly. This will raise improve the brand image and increase sales.Mobile phones are a good medium to advertise the services and products and after paying a fee, set people can be sent SMSs or targeted with a certain income structure and so further increase the chance of guarantying a sale. Also with this modern age where internet is readily available on mobile phones and social media access everyone has, by utilizing such sites as mentioned before a greater audience can be targeted without any additional costs.These technologies definitely make existence easier for small and niche market businesses as the biggest advantage is of cost savings made. Just a small capital is needed and a upfront shop or display area is not necessarily required to start a business and run it. In fact using online marketing strategies a greater market share can be achieved as well as greater customer base targeted. Companies like Amazon have been widely successful using such online marketing techniques they stared off small targeting niche markets and due to rapid growth became large organizations.List of ReferencesAGMC Rolls Royce Information AGMC Rolls Royce, Online, Available http//www.rolls-roycemotorcars-agmc.com/information 28 lofty 2012.AL Tayer Group (2010) Our Companies, Online, Available http//www.altayer.com/CompanyDetail.aspx?cid=6 28 August 2012.Arabian Adventures intimately Us Arabian Adventures, Online, Available http//www.arabian-adventures.com/en/about-us/index.aspx 28 August 2012.Business Dictionary entreprenuer, Online, Available http//www.businessdictionary.com/definition/entrepreneur.html 28 August 2012.Business Dictionary Mainstream, Online, Available http//www.businessdictionary.com/definition/mainstream.html 28 August 2012.Cite HR Padma Praveen (2007) Distinction between an Entrepreneur and a Manager, January, Online, Available http//www.citehr.com/23096-distinction-between-entrepreneur-m anager.html 28 August 2012.Jumeirah International LLC (2008) About Us jumeirah International LLC, Online, Available http//www.jumeirah.com/en/Jumeirah-Group/About-Jumeirah-Group/ 28 August 2012.Rangkuti, F. (2007) Understanding the difference between niche marketing and mass marketing, 23 September, Online, Available http//www.helium.com/items/609299-HYPERLINK http//www.helium.com/items/609299-understanding-the-difference-between-niche-marketing-and-mass-marketingunderstanding-the-difference-between-niche-marketing-and-mass-marketing 28 August 2012.Sulliavn, A. (2003) political economy Principles in action. , New Jearsey Pearson Prentice Hall.Ward, S. Niche Market, Online, Available http//sbinfocanada.about.com/cs/marketing/g/nichemarket.htm 28 August 2012.KAPLAN (2010) The PESTEL model, in P3 Business Analysis, Berkshire Kaplan financial.APPENDICES