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Definition

Concentrated marketing

Concentrated marketing (or niche marketing) is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. For example, Whole Foods Market has about 285 stores and $8 billion in sales, compared with goliaths such as Kroger (more than 3,600 stores and sales of $76 billion) and Wal-Mart (8,400 stores and sales of $408 billion). Yet, over the past five years, the smaller, more upscale retailer has grown faster and more profitably than either of its giant rivals. Whole foods thrives by catering to affluent customers who the Wal-Mart of the world can’t serve well, offering “organic, natural, and gourmet foods, all swaddled in Earth Day politics.” In fact, a typical Whole Foods customer is more likely to boycott the local Wal-Mart than to shop at it.

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