Niche Market vs Mainstream Market

Niche Market vs Mainstream MarketA quoin market is a guidanceed, targetable portion of a market. Niche markets slant to be secondary besides s strong up delineate and specific segments of the creation. The market segmentation preempt depend on the carrefour being sold and sight vary based on the targeted audience based on price, feature or differentiation strategies. Since the targeted audiences ar usually down(p) and healthful forth, thus far though in that respect is a specific portion, the profit margins be on the high end. Niche markets do not exist but argon make by enterprisers, identifying the demands and requirements which are not being met and whence aiming to satisfy these with products or go.In a Mainstream Market, products and services appeal to a broader spectrum of the society, and the products and services are readily forthcoming to the general public. (Business mental lexicon, n.d.).In street corner merchandise, the gild aims to sell to sp ecific people and targets their promotional campaign specifically to the charters of people not being met by mainstream and develops products and services which tramp be specifically customized and tailored to meet the needs of these various(prenominal)s, resulting in a strong brand depict. However low sales volumes are yielded in thisMainstream Marketing targets all the individuals and profits drawd depend upon the quantity of products sold. The comp both tries to patch up all the desires of the entire market into one product type. An opposite payoff being that the producer stomach close down the market for other competitors. However different marketing mix strategies need to be implement to reach target audiences as strong as multiple products need to be produced. (Rangkuti, 2007)Four successful niche market caperes in get together Arab Emirates (UAE)Rolls Royce MotorsOwning a Rolls Royce is the ultimate show of wealth and claiming that a person has do it big. Due to the immense oil wealth and hugely successful businesses position in UAE, and the need to stand out from others, this car brands major markets embroil UAE. The highly levels of craftsmanship, use of latest technologies and being hand built as tumesce 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 everybody can barter for this car, and peculiar(prenominal) limited edition models being launched insure that brand loyalty and image is strong. The opening of the worlds biggest showroom in Abu Dhabi has as well as helped to change magnitude the customer pleasure and demand in this country. (AGMC Rolls Royce, n.d.)Jumeirah Hotels and ResortsThe Jumeirah sort is the leading hotels division and is one of the almost luxurious and innovative targeting the rich and famous all cross substances the world. The group has its own hotels in Dubai, London, New York and acro ss the ball. Having its own training academy, The Jumeirah academy of Hospitality Management, ensures that its entire staff is well trained and world separate service is provided to its customers. The major attractions include Burj Al Arab, the worlds only seven confidential information hotel and world restaurants and bars as well as complete A to Z services are made operational at a phone call. Having world class Spas and the only themed amusement park in UAE stimulate helped the group earn numerous international travel and tourism awards. (Jumeirah world-wide LLC, 2008)Al Tayer InsigniaAl Tayer Insignia is the largest sumptuosity retailer in drift East and is headquartered in UAE. The brands portfolio includes Bvlgari, Boucheron, Bottega Ve enlightena, Dolce Gabbana, Giorgio Armani, Gucci, Ligne Ro embed, and Yves Saint Laurent amongst others. Due to high net income available per person, people in UAE tend to prefer these luxury brands and the Al Tayer Group caters to t heir needs by understanding(a) the regions appreciation and needs of luxury and harnessing brand latent through and through systematic and timely investings. In fact, the Al Tayer group is the freshman to do license to operate Harvey Nicholas outside 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 experiences as well as extreme sports opportunities. As it is a soften of Emirates Group and has overlord associates and 300 hundred permanent staff trained in 10 different languages. This high quality of service and vast array of activities which are offered under one roof attracts customers. High levels of safety standards, creative approach, individual client customization of packages, in depth knowledge and value added services watch to attract clients and customers to this company. (Arabian Adventures, n.d.)TASK TWOPESTEL Analysis of trend and changes that exit pass by rise to niche market opportunities in the next three eld in UAEThe PESTEL Analysis leave behind be used to analyse 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 factor outs 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 get by of investment fr om abroad. The moldup 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.stinting 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 overly a major factor for various industries to have been setup here as power is available with zero interruption. Interest rates are also low and pay is available at flexible terms in UAE. Due to the fresh recession, banks and finances have shifted their attention to Small and Medium Enterprises (SME) with the government activity 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 bette r lifestyle. Hence, in that respect is tendency to purchase penny-pinchings 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 burnish 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 font high profit speeds and bandwidth to encourage them and special incentives are offered to those businesses which adapt cat valium policies and techniques.ENVIORMENTAL UAE is the largest consumer of treated pee and has the highest emissions per capita ascribable to reliance on treated water as it is a desert and air conditioning which takes up a lot of energy. Hence businesses which tend to offe r such services utilise fewer emissions are encouraged as well organic foodstuffs let ons have the government backing to ensure healthy and fresh food is available. healthy Clear and precise laws are written which encourage businesses as well as protect employee and employer rights and prevent any abuse. Any new construct commercial or residential is need to have solar plank and so forth to earn green credentials and be energy competent 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 growth in business every year.Four capableness difference 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 focussing 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 properlyContinuing the green trend, the south market to be considered can be providing solar panels and alternative electricity sources for residential areas. The residents of UAE would uniform to prefer to reduce their air-conditioning bills and this is a lucrative area to focus.The third niche market can be considered of providing hand sewed 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, traditional restaurants can be undetermined catering to the needs of any particular community as they would jazz to have traditional home cooked style meals. These do not have to be unnecessarily expensive, as greater profits can be earned through volumes sold. likewise the hectic and fast lifestyle will favor the restaurants offering take away as this will hold back a lot of time for people.TASK THREE enterpriserAn entrepreneur is an individual who builds up capital, establishes a company or by organizing a venture to take benefitaof an opportunity through risk or utilization 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 governance or enterprise or company and take responsibility of whatever the outcome will be.An entrepreneur leads the company and by selecting appropriate managing directorial staff displays leadership skills. effectual sturdy management skills and the ability to build teams are essential qualities requiredEntrepreneurs emerge on demand as they seek opportunities and are well placed to achieve them and by doing so become leaders as they perceive that they amongst the few present who can analyses and solve the problems. Social firearm 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), entrepreneursaare not necessarily motivate by profit butaregard it as a standard for measuring effect or success. Schumpeter discovered that they greatly value self-reliance, strive for distinction through excellence, are highly optimistic, and always favor challenges of medium risk. (Business Dictionary, n.d.)There are various types of entrepreneurs, Social Entrepreneur who seeks to improve social, environmental, educational and economic conditions, concomitant Entrepreneur who continuously comes up new heads and innovations, Lifestyle Entrepreneur who places affectionateness 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 withina a large corporation who takes directaresponsibility for turning an idea into a utile finished product through assertive risk-taking and innovation.Entrepreneurs focus on research, innovation and creativity 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 share theasame traits as entrepreneurs such as conviction, zeal and incursion andaas the entrepreneur continuesato expresses his ideasavigorously, it will reveal 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 presumable to leave and quit his own organization.How the role of passenger car 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 charge of running the company, probably in the bearing 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(prenominal) 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, online 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 differently possible. After all, only a certain amount of foot craft 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 effective using networking.The network will be the primary method to circulate 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 passed to place tickers, or banner advertisements on them respectively which can ensure appro priate 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 jump start a business without even opening a shop front. Optimum online security will be needed to put in place to ensure that credit/debit card enlarge 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 knead 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 contemporaries and increase customer base. Constant updates and status changes will help generate hype about products being offered as well as online canvass can be utilized to decide which colour or product type needs to be launched. This will ensure no incompetent inventory ends up at the end of every season. Also this will give the customers and potential clients to freely interact with the business and have their queries answered and any complaints resolved directly. This will advance 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. average a small c apital 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. rock of ReferencesAGMC Rolls Royce Information AGMC Rolls Royce, Online, accessible http//www.rolls-roycemotorcars-agmc.com/information 28 supercilious 2012.AL Tayer Group (2010) Our Companies, Online, open http//www.altayer.com/CompanyDetail.aspx?cid=6 28 August 2012.Arabian Adventures About Us Arabian Adventures, Online, lendable http//www.arabian-adventures.com/en/about-us/index.aspx 28 August 2012.Business Dictionary entreprenuer, Online, visible(prenominal) http//www.businessdictionary.com/definition/entrepreneur.html 28 August 2012.Business Dictionary Mains tream, 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-manager.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) fellow feeling 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) Economics 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