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 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 the Product-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."
Read more about Market Penetration: Methodologies
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