No businessman is immediately satisfied when he sees the achievements and success of his business. You will be challenged to expand your business to gain a larger market share. To meet these challenges, you need to adopt an effective market penetration strategy.
To some business people, the term market penetration is still foreign. Of course, there are still many business people who tend to play it safe and do not dare to adopt this strategy. However, you must adopt this strategy if you want to achieve even greater success.
We will review the full market penetration strategy in this article. Listen to the end before you implement this strategy in your business.
Understand Market Penetration
Market penetration has two meanings in the business world: as a metric and as a business activity. In terms of metrics, market penetration means the number of products or services used by customers compared to the total market estimate for those products.
Market penetration metrics are useful for developing strategies to increase market share for specific products or services.
In short, market penetration is useful for determining the size of the market potential. New business people in an industry will be more motivated to open their stores if the overall market becomes larger. They also believe they can reach that market share or a portion of the total potential customers in an industry.
What does market penetration mean for business? Market penetration is the company’s move to bring its products into markets that already offer the same product. The company hopes to gain market share from competitors or other companies through these products. This is what is known as a market penetration strategy.
9 Market Penetration Strategies You Need to Use
You will find it easier to understand market penetration if you apply the strategy to business operations. Even though it looks challenging, the following market penetration strategy can make your business achieve its goals. Here are some market penetration strategies that can be applied in business.
1. Adjust Product Prices
This strategy is very effective for businesses that want to capture a new market share and already have competitors in it. You can lower the price of the products you sell so that they are lower than the competitors’ products. Customers will also take a look at their products because the prices are affordable even though you are still a “new player” in the business.
2. Provide a Simple Transaction Process
Because of the complicated buying process, it can be difficult for your target market to get the products they need. Your business needs to be a solution by offering convenience in the transaction process. You can offer online purchasing options on marketplaces or social media, as well as different payment options that suit them.
3. Improve The Quality of The Product
You can use this strategy when business conditions are not yet possible to lower product prices. Understand the target market’s taste first, then you can develop and improve the product quality according to their needs. Don’t forget to emphasize the advantages of your product in marketing, so that customers won’t think twice to buy your product.
4. Target Specific Locations
Some products or services are bound to be in higher demand in certain locations. You need to survey to find target locations that have more potential to increase sales. After you find the right location, you can start marketing products in that area.
5. Expand Your Business
You can also expand your business after you have successfully acquired many customers from market segmentation. The business expansion does not need to move to a new location but can market products in other market segments.
This method is most useful so that new competitors do not capture market segments that have never been reached by a business sector.
6. Change The Product Packaging Design
In addition to improving product quality, you also need to change product packaging design. This step is very useful to attract the attention of target markets already owned by competitors.
For example, you can change the packaging for chips from large plastic to plastic in different package sizes, starting from 250 g, 500 g, 100 g, and so on. Consumers also have many options when using this method.
7. Think Creatively and Be Unique
Market penetration challenges can be overcome by thinking creatively and uniquely. This is the thinking skill a business person must possess if they want to be successful.
You need to be more innovative in implementing sales strategies and dare to change some less relevant things. For one, you can replace the outdated Geprek chicken menu with the current chicken rice and roasted vegetable menu.
8. Conduct Market Education
Market education is an important key to entering the market share controlled by competitors. It is very important to educate the target market about your product or service as a new solution to an existing brand. They also emphasize the importance of using products from different areas of people’s lives.
9. Develop a New Marketing Strategy
A new market share certainly requires a different marketing strategy. This is what companies that have been in the market for a long time are often aware of and start implementing digital marketing strategies. They also need to conduct market research again to understand more relevant marketing strategies to reach them.
The only marketing strategy that can support the success of a market penetration strategy is digital marketing.