A market penetration strategy seeks to increase market share of the current product or services in the existing market. This strategy adopted by the firms to raise their sales revenue without making changes in the products or services. The other dimension of market penetration is the existing market which means firm already offering products or services to the customer but can forecast that the existing sales figures can be improved by working on marketing penetration strategy.

Market penetration strategy can be implemented by offering sales, Increasing sales force, increase distribution and promotion of products, more expenditure in marketing and advertising activities will results in increasing sales. It is not guaranteed that market penetration fully works after investing in sales and marketing of products and services, a firm should go for this strategy only if any below of the desirable situation exists.

– Current market is not fully saturated.

– Market share of the competitors are decreasing whereas the industry growth rate is increasing.

– Existing buyers have the potential to purchase same products and services in more quantity.

– When economies of scale provides competitive edge.

All the above conditions gives green signal to the firm to go ahead with market penetration strategy.

Market Penetration Examples

– Airtel promoting its services to penetrate in the Indian market.

– Pizza hut offering discounts to the customers at night to increase the sales and each customer purchase value.

– Mobile service providers offering low price packages to increase talk time of the customers.