What is a niche market
A niche is a well-defined business segment of people who have common interests and needs. Therefore, a niche analysis is a necessary step to a profitable business. In this way, it is possible to choose the right target audience and reduce the percentage of direct competition.
Unlike mass markets, people who belong to a niche market usually have the exact needs and sense of belonging. To understand that a niche is profitable, you need to make sure that there is a target market willing to spend money and that the trends for that market are not downward.
Before starting any business, you should have a clear idea of your sector: who the competitors are and what tasks the company will solve. It is worth using different systems and tools to know and analyze this data. The best strategy to determine the segment can be implemented using practical tools Google Keyword Planner and Google Trends.
Implementing a niche strategy doesn’t just mean concentrating on one or more small market segments. Small size is a typical feature of niches. But it is not enough for a market segment to be small to be a niche. A group of customers forms a niche with particular needs, different from the general market. These are people who are willing to pay to meet their specific needs.
Niche strategy has two significant advantages: high profitability and relatively little competition. And an adequately conducted niche analysis for the site will allow you to find a good direction.
Using Google’s keyword planner
Keyword research is used to understand how people search for specific products/services through search engines. It is also essential to know how often particular keywords are used.
If a niche market analysis is being conducted, keyword research can help find sub-niches, related niches, thinking about plans, strategies, partnerships with relevant sectors, etc.
We usually analyze:
- Search volumes: how often people, on average, search for a particular key.
- The complexity of keyword: estimated degree of difficulty to reach the highest positions (the competition in the search engine results is investigated).
- Correlations: for example, related keywords for “Hotel Kyiv” can be “4-star hotel Kyiv”, “Hotel Kiev in the city center,” “Cheap hotel Kyiv,” etc.
- Trends or seasonality: if the key is vital in summer and we want to position ourselves in time, we should start working on it at least six months earlier. By doing these estimates, we can get a clearer idea of when we will begin the project and the work’s timing.
Based on the selected keywords in the future, paid advertising can be worked out as a strategy for SEO promotion.
Using the Google Trends tool
Бесплатный сервис от Google служит для анализа тенденций. Если термин, относящийся к сегменту рынка, теряет интерес, это может быть тревожным звонком. Business niche analysis using such a tool is used to understand how promising the chosen direction is. In addition, trends help us understand the seasonality of specific markets and plan all promotion strategies in the best possible way.
Marketing analysis of the niche and competitors on a particular example
The specialists of iPapus Agency conducted a market study in Poland in EdTech.
Google Keyword Planner
Initially, the most popular keyword phrases on the subject of edtech were collected from competitors’ sites and search, which can be used to build a new site structure in a Google search. This structure can be used for paid advertising and a block in SEO site development.
When working through the semantic core, it was concluded that direct demand for services does not cover the entire market. The analysis of the niche site made it possible to understand that the selected product may be of interest to the audience, which is looking for targeted queries not directly relevant to our product but related to the education of a child or parent-child relationship of the target age.
In the second stage, the specialists of iPapus Agency analyzed the topic of edtech on demand according to the service Google Trends for the last five years in the region of Poland for the ten most frequent keywords in the subject.
It was found that the matter was periodically gaining popularity at the time of the study. However, since 2021 the demand for this niche has decreased in the region of Poland, but in months of high demand (e.g., September), it has a popularity of 70/100. Therefore, the market analysis concluded that the education niche in the Polish market has an average demand. At the same time, the narrow niche of online education and child development is free, as the market now has players focused on offline education.
The main sub-regions in which the demand for edtech topics has been analyzed. Based on this data, it was possible to determine that the highest popularity have:
- Lublin Voivodeship;
- Masovian Voivodeship;
- Podlaskie Voivodeship;
- Podkarpackie Voivodeship.
Lower demand has: Opolskie Voivodeship and Świętokrzyskie Voivodeship. Each region can give us positive results tied to target profitability, but we must first focus on the most popular areas.
Competitive environment analysis
Having analyzed the search results for the edtech niche in the Poland region, our experts have identified several major direct competitors and competitors with the same audience on edtech, which account for most of the traffic in the search.
Competitors were selected based on the volume of keyword displays on edtech, external links, and content. We managed to find out that the competitors use the site to sell services for both online and offline events. From this, we conclude that the online education of children/parents is relevant in Poland. The work carried out allowed the business to enter a new market to achieve profitability goals.
Every business owner can order a niche analysis today. The specialists of iPapus Agency will do the job with a guarantee of the result – in any language for any region and topic. So leave a request for a free consultation and take a step towards a profitable business!