How did Google become the #1 search engine in the world? It processes over 90% of all internet searches! The answer is the market penetration strategy.
Please keep reading to figure out what market penetration is and how companies can increase their market shares.
🔝 Top Market Penetration Examples
- Computer Sales Business Concept Strategic Management Plan
- Apple Company's Penetration Strategy in the Russian Market
- Walmart's Business Strategies and Alternatives
- Airship Tours Limited Company's Marketing Plan
- British Airways – Strategic Management
🔃 What Is Market Penetration Strategy?
A market penetration strategy is a method companies use to achieve a higher market share. This is a typical action plan for the most influential brands and those who are only starting. Combined with other business strategies, a well-planned market penetration guarantees success.
Marketing Penetration Strategy Explained
By definition, market penetration indicates how intensively a company’s product is used compared to the total estimated market for that product. A brand must first measure the current market share to acquire a better grasp of the market size and the percentage of people that purchase its products.
For example, a simple Apple market penetration strategy entails a steady stream of upgrades. As a result, Apple’s market share in the United States reached an all-time high.
How to Calculate Market Penetration?
To determine market penetration, use this formula:
Market Penetration Rate = (Number of Customers / Target Market Size) x 100
Here’s a market penetration example: If you live in a country with 100 million people and 10 million use your product, you have a 10% market penetration rate. Theoretically speaking, there are still 90 million people to whom you can reach out.
What Is Price Penetration in Marketing?
Penetration pricing is a marketing strategy when a manufacturer sets a low price for a product as an initial offering. The strategy aims to persuade customers to test the new product and gain market share while hoping to keep the customers after the prices return to normal.
✍️ A List of Market Penetration Strategies
- Price adjustment. A pricing adjustment strategy includes lowering or raising prices to boost sales.
- Marketing strategy changes. One example is the Coca-Cola market penetration strategy, where the product is remarketed as a catchall beverage rather than just a drink partnered with snacks.
- Quality standards improvement. Inform customers of the improved product quality, perhaps through a simple change in packaging.
- Thinking outside the box. Every marketing trick described in books has been implemented by major companies. Maybe it’s time to pull off something that’s never been done before.
- Sales promotion. Encourage customers to come back through loyalty programs or offer discounts and other perks.
🌟 Market Penetration Example – 4 Best Cases
Let’s look at these market penetration examples from the market giants. These companies invest a lot of effort in marketing, so there’s something to learn for everyone.
The Google market penetration strategy combines several tactics. Its aggressive strategy is a compelling blend of diverse product lines, appropriate pricing structures for various industries and markets, widespread product distribution, and cost-efficient promotions.
Starbucks
Another tremendous market penetration example is from Starbucks. They intensively expand their presence by growing the number of stores, elevating the coffee experience, and championing digital engagements.
Coca-Cola
One marketing penetration approach by Coca-Cola is the acquisition of its rivals in the same market. This is obviously not a viable strategy for startups, but it paid off handsomely. They now own Smartwater, Vitaminwater, and Minute Maid.
Amazon
Amazon enjoyed rapid growth in the United States because of its market penetration strategy. They offer low costs and prices and implement an active marketing campaign to attract more customers.
Visit the provided resources to read more compelling essays on marketing strategies.
📝 Market Penetration Strategy Research Paper Examples
- Blockbuster Marketing Strategy Analysis [SWOT, Porter’s Forces, & Marketing Mix]Business essay sample: Researching Blockbuster marketing strategy? 📀 This paper analyzes Blockbuster strategy concerning its strengths, weaknesses, opportunities, and threats. 🔍 Read thoroughly to learn more about Blockbuster business model and marketing strategies. ✅
- Business Plan and How to Build ItBusiness essay sample: The purpose of this paper is to help highlight strategies and models suitable for turning the proposed idea into a reality.
- ‘Ansoff Matrix’ Application in EnterprisesBusiness essay sample: This matrix is used by marketers who have objectives for growth. And it offers strategic choices to achieve growth objectives for a company.
- Pinkberry Product: Strategy and Launch to TaiwanBusiness essay sample: This paper takes a comprehensive and critical analysis of the marketing strategies and promotion of Pinkberry product and launch to Taiwan market.
- Postmodern vs. Normative Marketing StrategiesBusiness essay sample: This paper incorporates postmodern marketing vs. normative marketing strategies, taking into consideration what some firms have done to penetrate the market environment.
- Aussie Pooch Mobile Pty: Strategic PlanBusiness essay sample: The main success factors include the popularity of the brand among customers and franchisees and the increase of the company revenues.
- Truck Safety Company's Marketing StrategyBusiness essay sample: The Truck Safety Company’s selling strategy will be to sell to ready buyers and the target is made up of people in the transport industry.
- Buckley’s Cough Syrup’s Export to Saudi MarketBusiness essay sample: In order to accomplish the business of exporting Buckley’s cough syrup from Canada to Saudi Arabia, it is necessary to examine the market for the product in the export country.
- Marketing Plan for the FlaBlaster ProductBusiness essay sample: This is a document about FlaBlaster, a product that is able to reduce the weight of a person without using other weight loss procedures such as surgery.
- Marketing: The SWOT Analysis of Manor House Country Club HotelBusiness essay sample: This article gives the SWOT analysis of Manor House Country Club Hotel in order to know the strengths and weaknesses of the hotel.
- Woolworths Group: Marketing Tactics and ImplementationBusiness essay sample: Woolworths's first marketing objective is to maintain the existing customers across the different age, geographical, and income target groups of the population.
- Woolworths Group's Marketing RecommendationBusiness essay sample: The SWOT analysis performed for the Woolworths Group organization allowed for the identification of several problematic issues in the performance of the company.
- Marketing Plan for Smart Pacifier for Infants "Little Tikes Smart Pacifier LLC"Business essay sample: The marketing plan focuses on creating awareness and launching the new smart pacifier in UK market, maximizing profit and expanding the target market within the region.
- Starbucks Corporation in China: Problems During September 2017Business essay sample: This paper analyzes the case of Starbucks Corporation during the fiscal year ending September 2017; the primary problem identified was a marketing strategy.
- Red Bull Company's Marketing AnalysisBusiness essay sample: The analysis of marketing is designed to identify strong features in Red Bull's production, pricing, promotion, distribution, and market segmentation approaches.
- Internationalization: The Case of AsanaBusiness essay sample: The paper discusses Asana. It is a company that develops project management software and helps different organizations track and shape their work.