Niche marketing is a marketing tactic deployed to target a specific market segment which is unique. A niche market does not mean a small market, but it involves specific target audience with a specialized offering.
By doing so, the company becomes a market leader and it becomes impossible for other firms to enter that particular segment. The company is virtually the market leader and enjoys price monopoly.
Since the company operates in a small segment, the relationship between the brand and the customer becomes stronger which is also a key to customer loyalty.
Niche businesses are often high margin business. Customers do not mind paying a little extra because they are only able to get that service in that company or under its brand.
Raya first appeared several years ago as a dating app aimed at people in creative industries. They focus on a very niche market segment.
It has expanded into an invitation-only social network populated by movie stars, fashion designers, pro athletes, tech executives and many Instagram models.
The app cost $ 7.99 (Rs 550) a month but joining is no small ordeal.
Prospective members are evaluated by an algorithm and human gatekeepers, who consider factors like the size of an applicant’s Instagram following, how many Raya members he or she knows and other attributes.
Only about 8% of applicants are accepted, making Raya a slightly harder nut to crack than Harvard Business School.
At a time when social networks like Facebook and Twitter are struggling to rebuild user trust after a flurry of scandals, Raya stands out as an example of a social network that is succeeding by emphasizing exclusivity over scale, and turning privacy into a selling point. Raya may be the first app to successfully create an atmosphere of intimacy and trust.