Creating a brand is not a quick or simple process. A strong brand combines good reputation, image, customer loyalty, patience, and a unique value proposition to deliver a service and experience customers can’t get elsewhere. This uniqueness is vital to success in a saturated market where the competition makes it harder for consumers to tell brands apart. Finding a genuine need within a niche category is a great way to make your brand known.
Simon Kronenfeld is a great example of this strategy at work. Kronenfeld revolutionized the luxury market by finding and exploiting a gap in the market, bringing real value to an underserved segment of consumers. This was a key factor in enabling his company to become a multi-million business in just a few years. Simon Kronenfeld saw that damaged and returned products were being discarded while the new products were beyond the budget of most people. He realized that those products were often still entirely functional and valuable, and could generate returns by enabling consumers to access them at a lower cost.
This electronics company began to draw a lot of attention as other companies replicated its model. With Kronenfeld as the creator of this niche, the brand quickly rose to the top and secured a significant market share. The new refurbished products industry succeeded thanks to the benefits it offered to both companies and consumers. This is a perfect example of a unique value proposition.
Simon Kronenfeld immigrated to Canada from Israel, and started his working career washing dishes. Within a few years, he created his own construction company and was able to quickly put together and execute a sound business plan strategy. This model was not only profitable, it brought Kronenfeld’s personal brand image into the market.
Operating with the sole intent of earning profit may work for some businesses, but not for all. When you understand and address the key needs of businesses and consumers, profits are sure to follow. Furthermore, putting this at the forefront of your company enables you to understand how to serve those needs in ways your competitors are missing. To achieve sustainable returns, businesses need to ensure their brand image accurately conveys their message to the target audience.
Understanding their place in the market will help businesses stand out and secure more consumers. The lack of competition is a core benefit of creating a niche business, especially in the early growth stages. This makes brand strategy a valuable tool in establishing your business’s market share.