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Marketing Plan For A Cross-Border Transportation Services Business
Market Penetration is about digging deeper into your existing market by selling more of your current product or service. A Market Penetration strategy is focused on growing revenue by increasing market share. A market penetration strategy aims to achieve that by reaching maximum customers in the market till it becomes saturated.
What Is Market Penetration Strategy? – 8 Proven Tactics
Starbucks has always been aggressive in expanding its presence in territories where they already have a footprint. In the U.S., for example, before the pandemic, it opened more drive-throughs and express stores in New York, Boston, and Seattle, even if it has already a considerable presence in these locations. It opened its first store in 1999 in Beijing and has continuously opened new stores; as of 2016; there are over 2,300 Starbucks stores in China. It has also modified its store mix with lesser dine-in and restaurants and more express and pick-up stores. In Korea, the 11th coffee market globally, Starbucks grew its presence by partnering with upscale department store Shinsegae.
Other advancing brands
Additionally, it strengthens its relationship with customers by maintaining and nurturing those bonds. Not only has Dunkin’ successfully penetrated their market by opening and maintaining so many stores in New England, but they’ve also increased market penetration by making specific changes to their branding and menu. It certainly lives up to its name as fast food as it is known worldwide for its speedy service. Areas where options were once severely limited are now seeing choices open up to an unprecedented degree.
Cross-border pricing is a critical factor in the success of global expansion, as it enables companies to tap into new revenue streams and unlock profitable growth opportunities. However, navigating the complexities of setting prices for customers in different countries poses significant challenges. A one-size-fits-all approach can result in missed revenue or customer alienation, while a lack of coordination across borders can lead to channel conflicts and frustration. This article provides a comprehensive guide to cross-border pricing, including common challenges, winning strategies, transitioning between pricing models, critical success factors, and future trends.


Companies can also leverage successful market penetration by being more strategic with what they offer customers. Instead of being a price taker, companies that have a deeper presence in a market are more likely to be able to set their own price and sale terms or enhance their products as they see fit. In many ways, market penetration can only occur through product differentiation and being able to convey unique benefits to consumers. Distribution channels significantly contribute to extending the market reach and propelling growth. Expanding retail and online sales outlets and forming strategic partnerships can help businesses broaden their customer base, increase sales, and gain a competitive edge in the market. There are many market penetration strategies for you to choose, plan, and apply to at your company, so read this article to determine what is your company’s best option and get started right away.
A joint venture is one of the forms of strategic alliances, and the purpose is to share the resources towards mutual benefits. Here modifying your existing product means that you announce to improve the quality of the product by adopting better standards. That’s how a business could keep its customers for a long time and make them buy your product.
The price adjustment of the existing product means that you offer the product at a lower price than competitors. https://livingwellcenters.org/members/sinclairparrott3/activity/1079685/ would instantly help the company increase the market share and gradually earn the reputation of economical product manufacturer. The average market penetration rate for ordinary consumer products falls within the range of 2% to 6%, and it ranks for business products from 10% to 40%. You should compare your product’s market penetration rate with the average rate to see the difference. If the market penetration rate of your product is lower, then you try to improve it. Market penetration strategy is one of the four growth strategies explained in the product/market expansion grid known as Ansoff Matrix.
Note this includes international business transactions, and does not exclusively cover C2C transactions alone. Commercial-based cross-border payments also outpaced consumer transactions in Asia-Pacific — the region with the highest value of cross-border transactions in the world. By adhering to these steps and implementing appropriate strategies, companies can unleash their true potential, attain sustainable success, and establish themselves as dominant market leaders. Market penetration through collaborations and partnerships involves teaming up with other businesses to leverage their strengths and expand the customer base.
As a business owner, you can buy a competing company to gain its customers and market share. If you are a startup, you can form a strategic partnership with similar organizations to reach your target audience and grow your market base. Achieving high market penetration rates allows you to experience rapid financial growth and gain recognition as a reliable market player. Moreover, it helps you establish pricing strategies based on competitor analysis rather than blindly following industry trends. With this, you can maintain a competitive edge and sustain your upward momentum in the market. The key is to meticulously analyze and integrate these strategies, aligning them with the overarching business objectives, customer needs, and market dynamics, to drive sustainable growth and success.
The more precise information you’ll acquire about the target demographic, the more accurate calculation you’ll have. You may perceive the market penetration in two ways; either an activity or measurement. The measurement is about analyzing the sale of the new product relevant to the total customer market. Dunkin’ (formerly known as Dunkin’ Donuts) was founded in the 1940s in Quincy, Massachusetts. In reality, worldwide, there are 12,500 Dunkin’s (9,000 of which are in the U.S.). In terms of market penetration, Dunkin’ proceeds to tap into their huge and supportive market by introducing and maintaining that large portion of their stores in the US.
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