Step 2.3 SpecializationBuy a book
Your core product or service should be a natural extension or reflection of your niche strategy. If you have three or four main products, few will believe that you are a specialist in anything. Specialize in one thing and build your idea on it.
Here is a good example. The electronics store had 16 competitors. They all tried to win the battle for product and price. Their advertisements looked the same as below.
Why Barry's electronics store almost went broke:
1. Barry played the "race for the leader." Barry thought he would be able to make money simply by following the marketing and advertising strategies of his competitors, who own electronics megastores. So did his father. However, this strategy does not work in a specialized economy. Today, people want to turn to specialists and experts. Until Barry realized the futility of his attempt to rise above the mass of his competitors, he still did not understand the meaning of "finding his place."
2. Barry's business did not mean anything special or exclusive. Since Barry’s business was modeled after other businesses, there was nothing original, unique or exclusive in his store. Therefore, his customers often quickly dissolved, moving to the new stores of his competitors.
3. Barry's advertisements looked like others. Not wanting to be different, because it could "damage the trade," Barry played for sure and did everything that other electronics stores did. If they issued special advertisements, he also issued special advertisements. “Keeping up with competitors' strategy” is the plan that brought him to the brink of destruction.
4. The name Barry was uninteresting. The repeating line at the end of the Barry ad and logo are elements of the era of general electronics stores. The logo and line at the end of the advertisement say that there is nothing unique or special in the store.
Feeling defeated in the competition, Barry shifted his focus from “all electronics” to one thing: delivery and installation of large-screen televisions on the same day. With such a narrowing of the range, he became known as a specialist in large-screen TVs. Moreover, his income was three times higher than previous income. Associated goods (sound systems, etc.) only strengthened the dignity of the main and served as a good complement.
What made the offer of the new store to decline:
1. Specialization. Barry began selling only large-screen televisions.
2. Ownership of the category. Having chosen a goal, he became a specialist and stopped moving in large numbers with his main competitors.
3. The name of the niche. Barry changed the name of his store to another, which reflects his specialization. The new name has become a marketing tool, which added credibility to his business.