Niche Market- Substantiates a less crowded trading environment that offers merchandise that is mainly designed to fit the specification of the consumer. An automobile with particular emphasis on the Bugatti is worth a fortune and is assembled to the buyer specification and hence comes with it the desired comfort and prestige to the purchaser.
Niche market retailer- Encompasses a vendor of merchandise that is designed for use on identified consumers who have the prerogative to use the merchandise to improve their well-being substantively after consuming the commodity. The merchandise is disproportionately priced in that it may not satisfy the concept of demand and supply. The perspective accentuates that the merchandise may be available in limited number, but the price varies. The commodity income will fairly be inadequate comparing to products made and subsequently sold in massive quantities in a crowded marketplace. To appropriately collaborate the concept of a niche market vendor who avail products that are designed for use by an identified cadre of consumers, Billabong provides a classic example in this case study. Billabong operates in Australia and some European countries and specializes in sports.
Mass market- Describes a market that does not discriminate in the production of goods and services. The products and services are produced at a large scale with the availability of such items being universal. The merchandize is readily available and is highly substitutable.
Mass market retailer-the main characteristic of this vendor is the presence of numerous outlets dispersed in various locations around the world cities and transact their wide variety of merchandise to different classes of consumers. Moreover, given that the products are available in huge quantities from the vendors, they are usually made for the low-income people who comprise of the largest composition of people in the universe. Vendors that suit this particular market include Next. The vendor avails to the market a wide variety of attires that can be purchased by a large mass of people because of its competitive prices which are in many cases affordable. Next concentrate on the lower income population and in most cases they produce this attires at very low cost and can survive due to selling its product in mass rather than specialize to a particular market hence presence of outlets in various cities around the world to meet the needs of this cadre of people.
To further articulate the perspective further, we can identify the characteristics that substantiate the Billabong, which is a niche market vendor and Next, who are mass market vendors.
The features that define Billabong as a vendor in the niche market segment include;
Billabong concentrates in one product range. The perspective is articulated with the fact that it sells to the market sportswear and equipment products only. Therefore, we can advance that Billabong market niche is concentration on the sportswear and equipment market. For Billabong to sell to this particular niche market, they conceptualize the use diversification for their product. This is in regard male or female, children or adult, size in the form of large or small or by type and it may include footwear or dressing attire.
Billabong also uses a variety of brands as a characteristic. This concept, however, does not deviate from the position as a niche market vendor because the brand variety still concentrates on sports products.
To further substantiate the characteristics of Billabong as niche market vendor, they have to keep a low inventory because they concentrate their sale towards people interested in sportswear merchandise.
A niche market vendor like Billabong make small sales but sell authentic products to the consumers. This is used as a marketing tool and thus a method to attract consumers to the particular segment in the market.
Moving to Next which is a mass market vendor its characteristics can be articulated by
The mass market vendor offers to the market a huge variety of product. The merchandise is distinguished by function such as clothing or home accessories,
A mass market vendor serves all classes of customers who are in need of items that serve their universal taste and preferences.
Mass market vendors such as Next classifies their shopping facilities in the form of departments as a way of concentration. This is done with the aim of assisting the shoppers to be able to identify easily what they need to purchase.
Mass market vendors such as Next stock in the shops all types of brand thus the consumer can have a broad range of brands on the same product to select.
Next, as a mass market retailer has a huge inventory which translates to a high rate of turnover both in the form of clients and product sales.
From the above explanation on the characteristics that substantiate Billabong as a niche market specialist and Next as a retailer in the mass market, we can derive differences such as:
The market reach for a mass market vendor like Next is considered to be extensive compared to the niche market position held by Billabong.
Regarding tastes and choices, Billabong concentrates on people who favor sporting activities, and it would include participants in sporting activities. Next focuses on all tastes and choices to all kind of individuals.
Niche market and mass market also differ in the frequency of different brands of products and the varying styles in the products.
Geographic location and lifestyle play a crucial role in distinguishing the two markets. The concern for Billabong is in a particular geographic region that is Australia and some European cities. Next concentrates its activities on people who have different mode of lifestyle and are geographically dispersed across major world cities
The differences between the two vendors accentuate that Next keeps a huge inventory that translates to a high volume of sale and flow of clients. Billabong, on the other hand, has a small inventory that accentuates low volume of sales and flow of clients.
Billabong and Next as articulated by research have some similarities, and they accentuate the following;
The two vendors have a multinational appearance based on the fact that they are located in different geographical areas around the world.
The two vendors also share the concept of use of internet making it easier for the clients to purchase products offered and subsequently these delivered irrespective of the geographic differences of the retailer and the customer.
Next being a department store requires the need for the adequate arrangement of the massive products available to the consumer to ensure easy accessibility. The perspective has been further made easier by the presence of an online shop that enhances the efficiency in the arrangement of such a huge facility thus enabling them to increase the income through worldwide sales.
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