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Market Penetration: What It Is and Strategies to Increase It
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Don't forget to share this post! What’s an example of a successful market penetration strategy?
Initially a single coffee shop, Starbucks embarked on a rapid expansion strategy, opening numerous outlets both domestically and internationally. This information is vital in adapting and refining the market penetration strategy over time. Staying attuned to changes in customer preferences and market dynamics ensures that the strategy remains relevant and effective.
To make it successful, you have to schedule content, gather queries on user intention, utilize different SEO tools, and more. By leveraging competitive analysis, businesses can develop effective strategies to penetrate the market and gain a competitive edge. Find an end-to-end logistics solution—one like Digital River’s—that can help you avoid costly delays at the border, leverage existing networks, and process fast, convenient cross-border and local returns. When you go to the sneakers section of a store like Foot Locker or Dick’s Sporting Goods, Nike consistently takes up a large portion of the space.
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Tools like Affise BI help you manage all that unstructured data across different marketing channels intuitively. You don’t need any technical expertise to benefit from Affise BI and start making better, evidence-based business decisions every day. The more accurately you can assess your number of customers and market size (TAM) the more accurate your Market Penetration Rate calculation will be. In cases like these it’s often best to hone in on your most relevant target market and take it from there. It was also the case for Apple when iPhones amounted to a 15% to 20% market penetration rate. That’s when Apple sold more than 77 million iPhones, ending 2018 with a 19.2% share, according to Omnia Retail.
What’s an example of a successful market penetration strategy?
Hopefully, once customers get to know and love your product, some of them will keep purchasing even once the price rises to the normal RRP. So, you have to develop a good market penetration strategy, which all depends on a reasonable market penetration rate. And the market penetration rate depends on your product, how you can add value to your industry and your total addressable market (TAM). If you’re using market penetration as a metric and strategic framework, use the formula below to discover how much a product or service customers use compared to its total evaluated market. Elevating awareness through intensified marketing efforts or attractive promotional offers can encourage brand switching and attract competitors’ customers.


It facilitates increased visibility of products or services and enables markets to comprehend the company’s advantages. As a result, businesses may need to reevaluate their goals and strategies in light of high sales volume and market penetration success. If the purpose of marketing and promotional activities is to increase the customers’ market share, then market penetration does it well. It helps you to kick out the competitors from the market and expand the customer base.
Yet in our experience, much of this can be overcome with a sound initial assessment and good planning. Digital River has more than 25 years of experience helping brands sell internationally and offers an extensive logistics network that easily flexes to fit your unique needs — and complements your existing suppliers. In a single back-end solution that integrates with your chosen commerce platform, we simplify global payments, taxes, fraud, compliance, and logistics. From delivering localized checkout experiences to reducing legal risk, there’s quite a lot to consider when it comes to learning how to expand your ecommerce business internationally. It can be daunting, but teaming with a Merchant of Record can simplify your international expansion—helping your business tap into ongoing global growth without all the hassle. As we mentioned above, it’s critical to offer your products and purchase experience in local languages – but that doesn’t mean it’s just translated from your home market.
Russian shoppers are known to be brand loyal, so retailers who prove to be trustworthy and good value will attract and retain the Russian consumer. Partner or merge with another business in a mutually beneficial way (e.g. run a co-marketing campaign). Resolve the challenges of your customers and buyer personas more effectively by updating or changing a product or feature. A successful leggings brand, Booty by Brabants, has made waves in recent years in the athletic-wear industry. The brand has established itself as a seller of high-quality and unique leggings for women of all sizes.
To tackle the challenges that come with building a successful strategy for organizational growth, it’s essential to start by knowing how to build a business growth strategy effectively. Or, use the current sale volume in the following equation for your product or service, then divide it by the total target market volume of all products available in your market. While DVMAGIC EUROPE focuses on existing products, subtle improvements or add-ons can reinvigorate interest and encourage repeat purchases or increase the product’s appeal to a wider segment of the market. For more than 28 years, WebFX has helped businesses use SEO to grow their product lines, teams, and market share. With our award-winning team and technology, companies like yours have generated over $10 billion in revenue from the web and more than 24 million qualified leads.
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