Finding Your Niche

In my last post I introduced you to a key component of being an entrepreneur. It stated that entrepreneurs are those people who use creativity and innovation to fill an apparent need or solve current problems. Today I want to discuss the process of identifying problems and filling existing needs; creating a niche. In my opinion, finding niches are what Jamaicans do best. The term niche refers to a targeted segment of a market. It is also used to describe something that is an ideal fit, or most suitable. Additionally, for architectural purposes it describes a recessed space in a wall.  I like all these definitions because I think they all sum up what a niche is to an entrepreneur. It is a sort of recess in a market, a hollow or untapped area. It is also most suitable. The niche product or service is ideal for the targeted market and is usually not available anywhere else or not done appropriately if available elsewhere. As well, it is usually ideal for the entrepreneur. Businesses find their niche when they find that product that they offer better than any other competitor or any other possible product. This refers to both a competitive and a comparative advantage.

Some ways in which Jamaicans have successfully capitalized on creating niche markets are:

The Bag Juice 
The bag juice is a distinctively Jamaican product that over the years has grown to become an iconic treat for youngsters growing up in Jamaica. It is gobbled down on hot days, which in Jamaica is practically year round and it can be seen either sold or consumed at every turn on a typical Jamaican market day. It is refreshing, extremely affordable, and convenient to drink on the go. It fills a niche that other juices have not been able to compete with.

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Devon House Ice cream  
The producers of Devon House Ice cream are able to deliver the unique flavours of Jamaica in their richly formulated treat. Adding to their appeal is the location that inspired the brand. Being situated on the grounds of the historic Devon House provided the perfect backdrop for them  to lure us with flavours like sour sop, mango and devon stout, allowing patrons a yummy taste of Jamaica they could find no where else.

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Route Taxis (Robots)  
Jamaicans do have a knack for discovering areas where needs exist. When one seeks to provide a convenience or a low cost solution there is always a niche market lurking around. In Jamaica where traveling in rural areas can be a hassle and options are extremely limited, or in urban areas where the demand for transportation is overwhelming, the route taxis or robots emerged. Robot taxis provide the convenience of a taxi without the cost of a charter, by allowing customers to share a cab along a specific route at a cost similar to bus fare. They are often attracted to overcrowded routes or routes not supplied by conventional transport services. Route taxis filled an obvious gap in the supply of transportation services in Jamaica and are widely used by all. Currently there are a number of concerns surrounding how route taxis are operating, as an abundance of illegal operators may serve to do more harm than good.

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The problems with the Jamaican route taxis aside, it is the concept that is important today. The most successful business niches usually evolve into larger markets as they grow and become more main stream. This usually occurs when the product or service is duplicated and provided by others to create a more competitive market and demand becomes greater as the products popularity reaches a larger demographic. The cellular phone is a great example of this. In the 1980's when cell phones were first introduced to the public it was considered a high end niche product. It was an expensive gadget that was sold to successful businessmen, politicians and the like. Today it is estimated that cell phones are used by over 4.1 billion people globally, which represents 3/5 of the world's population. Officially no longer a niche.   With all that said, how do you find your niche? Have you been paying attention? Let's review.

• Start by looking at a problem that exists. It may be a problem that you encountered personally when you had a need for a product or service.
• The next step is researching how many people have similar problems. Sometimes great ideas are staring you in the face. It could be based on a topic you and your friends complained about this afternoon at lunch, or something you keep reading about in the newspaper. When you discover the common need among a large enough group, you have found an untapped area.
• So the market exists, but is it your market? Is it suitable? At this point you need to determine how you would seek to supply a solution. and if so how to do it better than any one else who may come along. This is when you must develop a strategy to give you a competitive advantage. Many times niche markets areliterally carved out of an existing market. Our tourism product is a great example. It can be designed to reach many niche markets, eco-tourism, wellness tourism or sports tourism are just a few areas to be explored as alternatives to usual cruise ship or all-inclusive clients we cater mostly for. 
• When trying to fill a niche be cognizant of your strategic objective. This objective should be incorporated when creating a vision for your business. Niche marketing usually focuses on specific objectives;  convenience or cost saving. A convenience may come as a low cost solution, but popular niche markets may also exist for providing a luxury convenience. 
• Finally, ensure that your niche is what you love to do. You will work harder, longer and better at making your business a success if you love what you are doing.

When searching for your niche pay keen attention to your environment, focus on problem solving and think critically. You will have to be inventive and take a risk on an untried market. Be prepared to dig deep when coming up with a valuable solution, if the answers were obvious then everyone would be doing and it wouldn't be a niche. If you are successful the reward is great. Being first in a market will allow you to set the standard, and makes it easy for you to brand the product or service. Even as competitors emerge your name could irrevocably be associated with the product or service.