Update Your Niche Whenever Necessary

Bargain hamburger retailer Burger King has been suffering from falling sales and profits. According to a Bloomberg Businessweek article, the niche is probably the reason: Burger King is known in many consumers’ minds as, well, a bargain hamburger retailer.
     That identity might appeal to younger men seeking a filling meal at a cheap price. Burger King’s dancing-chicken style of advertising has amused this target demographic, and there’s evidence the sometimes old, sometimes untidy restaurants have been tolerated by this target demographic. The problem is that members of Burger King’s target demographic have been dining out less often than in the past. The lesson for all sorts of retailers is to regularly assess for a need to update your niche.
     If you’re in Burger King’s marketing position, it’s not that you were wrong in selecting a niche. Considering that McDonald’s has almost three times as many restaurants worldwide as you do, a good alternative to positioning yourself as just an alternative to McDonald’s is to focus on a promising market segment.
     Consumers are drifting from the general to the specific, from the one-size-fits-all to the specialty and the customized. Another recent Bloomberg Businessweek article discusses the growing popularity of niche social networks like GoFISHn, where anglers can brag about their latest catch; Dogster, where members have been debating whether pets and their owners should bed down together; and PatientsLikeMe, where people can share progress notes on treatment for chronic medical problems, such as flea bites from lying down with dogs.
     The venture capitalists backing specialized sites like these are saying that Facebook and Twitter are great places to learn how to do social networking, but they’re insufficiently focused. Here, one lesson for all sorts of retailers is that a specialized social networking site could be a great place for you to advertise to your niche markets. Because it’s online advertising, you can promptly change your social networking presence each time you navigate your niche to a different location. Be on the Dogster pages today and the GoFISHn boards tomorrow.
     The tip from shopper psychology is not to make the changes too abrupt. Reach out with a line extension and then pull in and eliminate your weaker lines. Earlier this month, Burger King announced they were adding to the menu blueberry biscuits, a pancake platter, and seven more breakfast items. But the bargain burger stays for now.

Click below for more:
Maintain a Niche So You’re a Destination Location
Keep a Store-Within-A-Store Compatible