Strategic steps adopted by Niche players to dominate the

markets
 Select the target segment of the market that has special demand.
 Carry out market research to identify the niche market.
 Ensure the exceptionality of the niche product through Branding, Packaging and Patent.
 Organize delivery and inventory channels.
 Prepare an effective promotional plan to reach the target market.
 Execute the marketing plan.
 Monitor the marketing effectiveness in meeting with niche needs.
Niche Roles Of Specialization-
End-user specialist-The firm specializes in serving one type of end-user customer.
Vertical-level specialist-The firm specializes at some vertical level of the production-distribution value
chain.
Customer-size specialist-The firm concentrates on selling to either small,medium sized,large or
neglected customers.
Specific-customer specialist-The firm limits its selling to one or a few customers.e.g-General Motors.
Geographic specialist-The firm sells only in a certain locality, region or area.
Product or product-line specialist-The firm carries or produces only one product line or product.
Product-feature specialist-The firm specializes in producing a certain type of product or product feature.
Job-shop specialist-The firm customizes its product for individual customers.
Quality-price specialist-The firm operates at low or high quality ends of the market.
Service specialist-The firm offers one or more services not available from other firms.
Channel specialist-The firm specializes in serving only one channel of distribution.
Gartner Magic Quadrant research methodology provides a graphical
competitive positioning of four types of technology providers in fast-
growing markets: Leaders, Visionaries, Niche Players and Challengers.
LV- A Niche player of
Owned by LVMH (Louis Vuitton Moet Hennessey) as
mother company , Louis Vuitton is strongest brand in mass
luxury goods luxury market.
Moreover, Louis Vuitton is in Market Leader position &
Strong competitive position when comparing with other
competitors because of following factors :
• Highest brand equity. Louis Vuitton has best perception
of best quality and trendy products toward customers’
minds.
• Louis Vuitton and LVMH have full control over both
production & distribution instead of outsourcing.
• Louis Vuitton is the first mover and leader to make
effective acquisition and line expansion to another
product.
• Sales revenue & sales volume & operating margin in
most of its product lines are in highest rank. Even Louis
Vuitton is in middle level of Leather goods.
• Louis Vuitton has strategy as cost leadership in
Niche market • For Niche market competitors, -Hermes is in Market
Leader position & Dominant competitive position when
competitor of LV comparing with other companies because of following
reasons-
• Hermes produces products those have high uniqueness
and best differentiation. Even sales volume of Hermes is
lower than Louis Vuitton but because of its uniqueness,
price of Hermes product lines are very high.
• Brand equity in term of “Most Luxury item” has come
to Hermes immediately.
• Price was clearly no object for the women who crowed
Hermes waiting lists around the world which shown us
that Hermes products are low price-sensitivity in
customers’ minds.
FACTORS REPRESENTING POSITION OF COMPANIES
IN LUXURY MARKET
1) Luxury image & Uniqueness 2) Operating margin & Cost Leadership

• Hermes is the first rank followed by Chanel, • Louis Vuitton is top at 30% followed by
Gucci , Louis Vuitton and Prada. (Gucci, LV Gucci at 23%, Hermes at 20%, Prada at 19%
and Prada has same rank) and Chanel at 10%.