Lihat Artikel Lainnya

Upgrade your business today and save up to 70% implementation costs with CTC funding support for HashMicro's ERP Get It Now!
HomeProductsCRM-LeadsMarket Penetration Meaning, Example, and Strategies

Market Penetration Meaning, Example, and Strategies

A market penetration strategy is a deliberate attempt to reach the market by aggressively increasing your reach and influence across your target market.  This can involve creating new products, leveraging the internet, offering sales incentives, or becoming more visible through publicity. The goal is to increase the number of people in your target market that know about and use your product or service.  

You can also use CRM software to connect your various business operations (from sales to marketing to clients) and organizes the metrics and activities into one unified system. CRM software is an integrated, data-driven solution that manages, tracks, and saves information about your company’s existing and potential clients. By storing this data centrally, business teams can access it when needed.


What is Market Penetration and What is it for?

Market penetration can measure how often a product or service is used relative to the entire market. It can also be used to build strategies for increasing a product’s or service’s market share. Using market penetration, you can figure out how big the potential market is. A big market may encourage new entrants to gain market share or a percentage of potential customers.

Businesses within an industry can use Market Penetration to assess their potential to achieve market share or increase sales income. For example, the global cell phone market penetration is often used to determine if manufacturers can meet their earnings and revenue estimates. If a market is saturated, incumbent companies hold the vast majority of the market share, leaving little possibility for additional sales growth.

download skema harga software erp
download skema harga software erp

What Does Market Penetration Mean for Companies?

In other words, you can use market penetration to measure an industry’s potential to gain market share or grow sales income. As a metric, it is the number of potential customers who have bought a company’s product instead of a competitor’s or no product. A company typically expresses its market penetration as a percentage, which implies that its product represents a specific percentage of the whole market.

If a business’s products have a high market penetration, it is considered a market leader in that industry. Market leaders have an advantage in marketing because their well-known products and brands allow them to reach more potential customers. For example, a popular clothes company will have more shelf space and better positioning than competitors.

Moreover, market leaders can negotiate better terms with their suppliers because of their high sales volume. As a result, given the scope of their business, market leaders can frequently create a product at a lower cost than their competitors.

Also Read: ERP System Modules: Most Important Modules of ERP and Their Benefits!

Market Penetration Example

example market penetration brand

Implementing a plan is the starting point for market penetration, then it leads to the steps for a stable market takeover.

As of 2017, Apple’s mobile devices held a market share greater than 50 per cent of the worldwide market for smartphones. Since the iPhone first came out, Apple has always added new features, updates, and accessories. Because of this, Apple has a larger market share than all of its competitors combined.

The Coca-Cola brand became known as a drink that pairs well with snacks. It did well in the refreshment market until people started choosing healthier drinks. Coke made Diet Coke get a bigger share of the beverage market and attract people who cared more about their health.

The first Dunkin’ Donuts was opened in Massachusetts in the 1940s. Dunkin’ Donuts is now present in 46 different countries throughout the world. But one-third of all Dunkin’ Donuts stores are in New England, where its most loyal customers are.

Market Penetration Strategy


Companies can use market penetration strategies as part of their business plans to assist them in reaching their revenue growth target. The company earns a percentage of the total revenue earned in a specific market, which is known as its market share. The company can use penetration strategies to increase its market share in markets with a smaller position.

Enhanced marketing and advertising initiatives

The business may change the way it promotes itself and support aggressive advertising campaigns to raise brand awareness. Moreover, it helps in customer retention and attracts more customers from its competitors.

Penetration pricing

Penetration pricing is one of the key ways to gain market share and boost sales, such as reducing the product quantity to boost audience engagement. The company must determine how the product pricing plan changes will affect market share. It must also look at how many new customers it got after the most recent price change.

Product modifications

The business must watch how people react to its products and those of its competitors to find its must-have key features and activities. Then, it can change the product and add something new to get a bigger market share.

Procurements and coalitions

A business can either buy a competitor to get its customers and share of the market or shut it down. Otherwise, the new businesses can form strategic partnerships with similar organizations to reach their core audience and grow their market.


Any company of any size and from any industry can use a market penetration strategy to increase its sales. This is because we live in a resource-constrained world: there are only so many hours in the day and many potential customers. This means that every company competes for the same limited pool of resources.


Companies can use Market Penetration in order to identify an opportunity in a new product or service. It is the competitive and analytic appraisal of the extent of the company’s product compared with its competitors. Using CRM Software is also beneficial to support you in achieving your goal. To learn more about this software, get a free demo before implementing it in your company.

Interest in getting savvy tips for improving your business efficiency?

Syifa Fadiyah
Syifa Fadiyah
In my role as a content writer, I regularly produced a few articles to assist businesses in need of a system. In addition, I authored a few helpful articles that are related to the method that businesses use.

Typically replies within an hour

Looking for a Free Demo?

Contact us via WhatsApp and let us know the software you are looking for.

Claim up to 50% Enterprise Development Grant for various HashMicro Software!


Active Now


Active Now