Page 116 - DMGT408DMGT203_Marketing Management

Unit 5: Designing a Customer-driven Strategy .......

Single Segment Specialisation or Niche Marketing: Many companies succeed by producing a Notes
specialised product aimed at a very focused market or a niche. This strategy also appeals to firms
with limited resources. The company targets a segment and goes for a larger market share
instead of a small share in a larger market segment.

Example: Recycled paper producers often focus on the market for greeting cards or
wedding cards. Oshkosh Truck is the largest producer of airport rescue trucks.

Concentrated strategy may involve more than normal risks. If a large competitor decides to
enter the same segment, the going may become quite tough for the smaller company.

Self Assessment

Fill in the Blanks:
8. Markets which are not separated by the marketers for the purpose of promotion are called
…………………… markets.
9. HUL produces and promotes different versions of All Clear Shampoos. This is a case of
…………………… marketing.

Caselet Right Targeting

yka manufactures women’s shoes for aerobics, step aerobics, walking, running,
hiking, and cross training. Knowing full well that it would not be easy to compete
Rwith giants like Nike and Reebok for a new firm like Ryka in the athletic footwear
industry to capture a sizeable share, the founder Sheri Poe, right from the beginning
resorted to some unusual marketing strategies. For example, she had her footwear British
distributor deliver several pairs of Rykas with a personal note to fitness enthusiast Princess
Diana. The royal trainer told Ryka that the princess not only liked the fit, but was also
moved by the company’s donation of part of its profits toward stopping violence against
women. Ryka is Poe’s way of fulfilling her dream - running a business and also helping
women who are victims of rape, assault, and abuse.
The Ryka phenomenon began when Poe and several of her aerobics classmates realised
that they were experiencing back pain because their shoes didn’t fit right. Poe surveyed
department stores and athletic footwear shops, asking customers and sales people what
kind of shoes they wanted. She discovered that no one was paying attention to the women’s
market. The majority of the women’s shoes were designed simply as scaled-down versions
of men’s shoes. To get a proper and painless fit, women needed athletic shoes with higher
arches and thinner heels, but couldn’t find them. Poe decided that there was a future for a
company that made athletic shoes just for women.

Rather than cater to the whims of fashion, Ryka concentrates on manufacturing only high-
performance athletic shoes that fit a women’s foot. Rykas are anatomically correct for
women’s feet, and the company’s patented Nitrogen E/S system provides cushioning and
shock absorption for the heel and ball of the foot. Ryka Ultra-Lite aerobics shoes weigh
only 7.7 ounces, about one-third that of regular aerobics shoes. Ryka was the first athletic
shoe producer to develop market lightweight shoes specifically designed for the ups and
downs of step aerobics.
Source: Marketing-Text and Cases, SHH Kazmi, Excel Books, New Delhi

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