The Bowling Pin Model
Cascade of niche markets
The Bowling Pin Model is a marketing strategy that involves targeting specific niches or markets and using them as a foundation to expand into broader markets. This approach allows companies to establish a strong presence in a particular area and then use that as a springboard to move into other related markets. The model is based on the idea that by focusing on a specific niche, a company can create a cascade of demand that will help it to expand into other areas.
- Focus on specific niches or markets to establish a strong presence
- Use the niche as a foundation to expand into broader markets
- Create a cascade of demand by targeting specific areas
- Identify a specific niche or market to targetThe first step in using the Bowling Pin Model is to identify a specific niche or market to target. This should be an area where the company has a strong presence or where there is a high demand for the company's products or services.Pro tipIt's essential to choose a niche that is large enough to be worth targeting but small enough to be manageable.WarningBe careful not to choose a niche that is too small or too competitive.
- Establish a strong presence in the nicheOnce a niche has been identified, the company should focus on establishing a strong presence in that area. This can involve developing products or services that are specifically tailored to the needs of the niche, as well as building relationships with key players in the niche.Pro tipIt's crucial to understand the needs and preferences of the niche and to develop products or services that meet those needs.WarningBe careful not to overextend the company's resources by trying to establish a presence in too many niches at once.
- Use the niche as a foundation to expand into broader marketsOnce a strong presence has been established in the niche, the company can use that as a foundation to expand into broader markets. This can involve developing new products or services that are tailored to the needs of the broader market, as well as building relationships with key players in the broader market.Pro tipIt's essential to leverage the company's existing presence in the niche to establish credibility and trust in the broader market.WarningBe careful not to lose focus on the niche that the company has established a strong presence in.
PeopleSoft is an example of a company that used the Bowling Pin Model to establish a strong presence in the market. The company started by targeting the niche of human resources systems and then used that as a foundation to expand into broader markets.
Lotus Notes is another example of a company that used the Bowling Pin Model to establish a strong presence in the market. The company started by targeting the niche of global account management and then used that as a foundation to expand into broader markets.
The Bowling Pin Model was developed by Geoffrey A. Moore, who observed that successful companies often start by targeting specific niches and then use those niches as a foundation to expand into broader markets. Moore argues that this approach is particularly effective in the technology industry, where companies need to establish a strong presence in a particular area in order to be successful.