What is a Niche Market Strategy?

A niche market caters to the specialised needs of a select segment of the market. It offers products or services in an industry vertical that is oft neglected. 

The strategic advantage of establishing a niche market include:

• It facilitates ease of market share capture in the given niche by meeting a majority of the demand in the niche category.
• There is less competition as another small business might not want to take on an already established brand locally.
• Large businesses mostly ignore such brands and dont directly give them any competition.
• Its a good toehold to enter into an established market with larger scope.

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Academic Research on Niche Strategy

• Niche market strategy for a mature marketplace, Parrish, E. D., Cassill, N. L., & Oxenham, W. (2006). Niche market strategy for a mature marketplace. Marketing Intelligence & Planning, 24(7), 694-707. This article proposes and expounds on a Niche Market Strategy for an established marketplace. 
• Niche strategy and export performance, Zucchella, A., & Palamara, G. (2006). In International Marketing Research (pp. 63-87). Emerald Group Publishing Limited. This paper delves into the Niche Market Strategy deployed by small businesses to exploit the export goods industry.
• Niche strategy: Merging economic and marketing theories with population ecology arguments, Noy, E. (2010). Journal of Strategic Marketing, 18(1), 77-86. This paper examines the long term viability of Niche Markets in light of changing population ecology.
• Tourism, niche strategy and networks as factors for both entrepreneurship and rural sustainability, Dinis, A. (2011, June). In IX Rural entrepreneurship conference: a sustainable rural (pp. 21-29). This paper presents the relationship between rural sustainability and entrepreneurship in light of factors like Niche Strategy, networking, and tourism.
• Early and accelerated internationalisation: the role of the niche strategy in a new generation of exporters, Zucchella, A., Hagen, B., Denicolai, S., & Masucci, M. (2016). International Journal of Export Marketing, 1(1), 27-47. This study explores the export business and the niche business strategies at play in this sector. 
• The formation of core technical competencies based on niche strategy [J], Zhang, M. E., & Tian, D. (2005). Studies In Science of Science, 3, 019. This paper explores the technical aspects of Niche Business Strategy.
• The niche marketing strategy in internationally-oriented small and medium enterprises: A literature review and lessons for New Zealand, Stachowski, C. A. (2012). Small Enterprise Research, 19(2), 96-112. This paper presents a literature review of international niche business strategies deployed by small and medium businesses in New Zealand.
• On Market-niche Strategy [J], MA, J. J., & LI, X. C. (2007). Commercial Research, 5, 045. This paper presents an in-depth view of Niche Market Strategy. 
• Research on the Niche Strategy of Innovation in Complex Products and System [J], ZHANG, M. E., & TIAN, D. (2007). R&D Management, 3, 003. This paper explores the niche strategy involved in research and development of new products. 
• Study on Implemented Niche strategy of New Geography Curriculum [J], JIN, S. L., & ZHOU, J. B. (2010). Journal of Shangrao Normal University, 6, 021. This paper reviews the Niche Strategies deployed in modern geographic curriculum.
• Niche Marketing Strategy and Firm Success: Review on SMEs in Peninsular Malaysia, Akbar, F., Razak, A., Omar, B., & Wadood, F. (2015). International Journal of Research & Review, 2(11), 697-702. This paper explores the small and medium businesses market in Malaysia and analyses their niche business strategies relative to their success.