how to reach a niche market

hi everyone

I am a student in Marketing, I am going to hand in a dissertation the 14th of august 2002, My subject is about selling some niche Cd music to a niche Market.

so far all my analysis is based on my survey and interviews because no one has ever done anything about this market, however, I am a bit stocked when it comes to:
1. define my target group
2. the kind of distribution channels should I use, knowing that my company ( the I am writing my dissertation for) is a small one with a small cash

I will be more than happy to get a little help from you

Thank you in advance