Background of the Study
Niche marketing refers to a strategic approach where businesses target specific market segments or niches rather than competing in the broader market (Hirsch, 2023). This strategy is particularly relevant for small and medium-sized enterprises (SMEs) in emerging markets like Nigeria, where intense competition and market saturation often discourage broader market targeting (Akinbo & Alabi, 2024). Boutique firms, as part of this category, have leveraged niche marketing to differentiate their offerings and establish a strong identity within their market segment. This approach helps boutique firms create a loyal customer base by catering to the unique preferences and needs of their target market (Ayodele & Ogunleye, 2023).
In Gombe State, boutique firms have adopted niche marketing strategies in the fashion and beauty industries, positioning themselves as providers of exclusive, high-quality products that meet specific consumer demands. However, despite the growth potential, many boutique firms face challenges such as limited resources, competition from larger retailers, and difficulties in sustaining a competitive advantage in the long term (Oluwaseun, 2025). This study will examine how boutique firms in Gombe State utilize niche marketing strategies to build and sustain a competitive advantage in their local and regional markets.
Statement of the Problem
While niche marketing has been identified as an effective strategy for small firms, there is limited empirical research on how boutique firms in Gombe State adopt and implement these strategies. Additionally, the impact of these strategies on their competitive advantage in the local market remains unclear. Despite the growing number of boutique firms in the state, many still struggle with maintaining their market position due to the lack of clear strategic direction, limited consumer knowledge, and the growing competition from larger players in the retail industry (David & Okoye, 2024). Therefore, this study seeks to investigate the effectiveness of niche marketing strategies in boutique firms in Gombe State, focusing on how these firms can achieve a sustainable competitive advantage in a challenging business environment.
Objectives of the Study
1. To assess the niche marketing strategies employed by boutique firms in Gombe State.
2. To determine the relationship between niche marketing strategies and competitive advantage among boutique firms in Gombe State.
3. To evaluate the challenges faced by boutique firms in implementing niche marketing strategies and sustaining their competitive advantage.
Research Questions
1. What niche marketing strategies do boutique firms in Gombe State use to differentiate themselves in the market?
2. How do niche marketing strategies contribute to the competitive advantage of boutique firms in Gombe State?
3. What challenges do boutique firms in Gombe State face when implementing niche marketing strategies?
Research Hypotheses
1. H₁: Boutique firms in Gombe State that implement niche marketing strategies achieve a significant competitive advantage.
2. H₂: There is a significant relationship between niche marketing strategies and customer loyalty among boutique firms in Gombe State.
3. H₃: Boutique firms in Gombe State face significant challenges in maintaining a competitive advantage despite the use of niche marketing strategies.
Scope and Limitations of the Study
The study will focus on boutique firms in Gombe State, Nigeria, particularly those in the fashion, beauty, and accessories industries. Limitations include the potential for biased responses due to the self-reporting nature of the data, as well as the possibility of limited access to some boutique firms due to the size of the market. Additionally, there may be challenges in obtaining reliable financial data from these small businesses.
Definitions of Terms
• Niche Marketing: A marketing strategy that focuses on targeting a specific segment of the market with tailored products and services.
• Boutique Firms: Small, specialized retail businesses that offer exclusive or unique products, often in fashion, beauty, or lifestyle.
• Competitive Advantage: The ability of a firm to outperform its competitors due to the strategic advantages it has, such as unique products, low costs, or brand loyalty.
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