Depth of sales of a particular product in a given market. The deeper the penetration, the higher the volume of product sales. In order to expand the sales of current products in markets where their products are already being sold, marketers utilize market penetration strategies such as cutting prices, increasing advertising, obtaining better store or shelf positions for their products, or innovative distribution tactics.
Market penetration (existing markets, existing products): Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow. Other growth strategies include:
•Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers. •Market development (new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes. •Diversification (new markets, new products): Mohen A.S, Bion Products, Selectron Ltd, bk The penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country's households who have bought that particular brand or product at least once within a defined period of time.
Recent examples for market penetration are,
1.Tata nano..having affordable prices to the costumers an penetrating deep into the market for middle class people.
2.Starbucks was founded in 1971 in Seattle, and was able to achieve widespread market penetration across the United States. Soon after,...