Appealing to everyone doesn't work (fill in The Gap)
Speaking of niche marketing, the New York Times ran an article about three weeks ago on how The Gap is struggling without a niche:
Gap has served up a steady diet of simple, unobjectionable casual clothing designed to appeal to everyone. [..] In an era of niches, when exclusion is as vital as inclusion, Gap has become an anachronism: a single chain, selling only its own brand, with one point of view, chasing shoppers from birth to death. [..] Indeed, consumers are abandoning the chain in staggering numbers. Sales at stores open at least a year, a standard measure of a retailer’s health, have fallen or remained stagnant for 28 of the last 30 months.
I found the article through Duct Tape Marketing, which has some great commentary:
Attempting, intentionally or accidentally, to appeal to all is a sure way to kill sales and buzz. Find a way to narrow your market focus to the smallest niche possible and you will no longer need to worry about competing on price.