
O&P Business News, November 1, 2007
Cover Story
Diabetes and Niche Marketing
Be like Nike and communicate that you are aware of,
and have designed your products and services to meet, the needs of
certain patients.
By Elizabeth Mansfield
© 2007/DigitalVision/Getty Images
On Sept. 25, Nike unveiled what it said is the first shoe designed
specifically for American Indians, an effort aimed at promoting
physical fitness in a population with high obesity rates. The Air
Native N7 is designed with a larger fit for the distinct foot shape of
American Indians, and has a culturally specific look. The N7 name is a
reference to the seventh generation theory, used by some tribes to look
to the three generations preceding them for wisdom and the three
generations ahead for their legacy.
The design features several “heritage callouts” including sunrise to
sunset to sunrise patterns on the tongue and heel of the shoe. Feather
designs adorn the inside and stars are on the sole to represent the
night sky.
I would call this a great example of micro-niche marketing. I would also call it a brilliant publicity move by Nike.
Biggest niche market ever
Why not be like Nike?
Diabetes and the diabetic population could be considered one of the
biggest niche markets today. Everyone and their grandmother is jumping
on the diabetes marketing bandwagon. On www.monster.com and www.careerbuilder.com, there are job openings specifically listed as “diabetic marketing managers.” The diabetic market overall is booming.
But what about the niches?
Customer relationships
The American Marketing Associations’ definition of marketing is an
organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.
Health care providers are stakeholders in the care of their patients
with diabetes. They are also your customers. Create, communicate and
deliver value with your niche marketing efforts.
Who are two primary stakeholders? They are diabetic nurse educators
and primary care physicians. Did you know that primary care physicians
are the number one provider of diabetic care, managing 90% of care? If
the stakeholders are convinced of the value you are offering, you have
succeeded. The publicity or awareness generated by successful
communicating can be worth its weight in gold.
Case in point. Stakeholders in the Native American community had this to say about Nike’s Air Native N7 shoe.
Kelly Acton, MD, MPH, director of the national diabetes program for
Indian Health Services, said she was dubious of working with a
corporation at first but said she was delighted with the result, saying
Nike “‘bent over backwards’ to design a shoe and respect public health
needs.”
John Dickson, a member of the executive council of the Native
American Leadership Alliance in Washington, D.C., said in a news report
on www.yahoo.com,
“The reason I like it is that, even if there is not a big Native
American market, it gives people the impression there is a constituency
that deserves attention.”
Financial opportunity
According to Nike, the company anticipates selling at least 10,000
pairs and raising $200,000 for tribal programs. At $42.80 wholesale, it
represents less of a financial opportunity than a goodwill and branding
effort.
Nike gets it. They realize that there are other markets out there
similar to the Native American market, like say, the worldwide diabetic
market. Don’t be surprised if, after they have ridden the Native
American wave, Nike debuts a diabetic sneaker.
Niche and grow rich, right?
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