CHAPTER – 1
Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by Ansoff. Market penetration occurs when a company enters/penetrates a market in which current products already exist. 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 (by advertising etc.). Ansoff developed theProduct-Market Growth Matrix to help firms recognize if there was any advantage of entering a market. The other three growth strategies in the Product-Market Growth Matrix are: * 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 "Penetration is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population."
This marketing technique is not very simple for some organizations, whereas for others this is very easy. This technique is when a company enters/penetrates a market in which current products already exist, and the best approved way of achieving this is by gaining competitors customers (partial market share), an alternative but less successful way is by advertising to the public about your product/service". A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company's sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product.
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. The market penetration is important as it shows the way to penetrate the positive areas of the market. that is why the market penetration is much important strategy. this strategy can be implemented to the sectional market or may be to the whole area. but this includes the proper timing that required to understand the actual area of the market. so, generally this can be said the market penetration is quick strategical solution when the entry mode to the market is concerned 1. The activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. 2. A measure of the extent of a product's sales volume relative to the total sales volume of all competing products, expressed as a percentage. Formula: Sales volume of a product x 100 ÷ Total sales volume of all competing products.
HSBC (abbreviation origin: the "Hongkong and Shanghai Banking Corporation") was founded in the former British colony of Hong Kong (in 3rd March 1865) and Shanghai (one month later) by Scotsman Sir Thomas Sutherland (1834–1922). HSBC Holdings plc established in 1990 became the parent company to The Hongkong and Shanghai Banking Corporation in preparation for its purchase of Midland Bank in the United Kingdom and restructuring of ownership domicile for the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings...