It is true that “stepping one foot” into the market with a fresh brand is difficult. As a result, market penetration strategy is the first choice for new companies seeking to effectively reach and engage target customers.
Nanglife.com can help you understand what a market penetration strategy is and what factors are vital in developing a plan that is appropriate and effective.
1. What exactly is market entrance strategy?
Market Penetration is a marketing approach used to enhance market share for a brand’s present products and services. A market penetration strategy is a plan to grow in an existing well-developed market with similar products and increase market share by recruiting the consumers of rivals. competitor.
This necessitates that your brand develop and implement a precise, clear, and optimal strategy for marketing and competing with current brands in the market.
1.1 When should a market penetration approach be used?
In the following situations, a market entrance plan should be developed:
- When the market for a certain product or service is not saturated
- When the customer’s product utilisation is high
- When the primary competitor’s market share falls as sales rise
- As the business size grows, several advantages become available.
2. Typical Market Entry Strategies
Essentially, the following strategies may be used to accomplish the market penetration and market share strategy:
2.1 Raise or lower the selling price
Pricing is one of the most important strategies that new companies may employ to obtain market share and successfully grow sales. Price modifications can fully assist business owners in determining the amount of success in their price strategy.
- Has market share risen or decreased over time as a result of valuation?
- How many new clients resulted from the pricing change?
- Do price cuts/increases induce clients to switch to your competitors?
Discounts work successfully in narrow marketplaces when people buy products based on their cost. Customers will research your rivals and compare your products and services at this point in order to make a purchase choice. Properly altering the pricing will assist you in efficiently achieving your market entry aims.
2.2 Changing marketing tactics to boost brand awareness
If your business is new to the market, it is critical to have an effective marketing strategy in place to raise client awareness. Because this is the foundation for attracting many of your rivals’ consumers, potential customers to come and become your loyal customers.
Proper marketing keeps clients interested in your company. Finding new methods to give significant value to your clients will help you effectively keep them.
Delivering exceptional experiences and making customers happy, in particular, has the ability to convert existing customers into brand ambassadors, bringing you closer to additional potential consumers by word of mouth and their prices. As a result, your market share will increase significantly.
2.3 Product and service substitution orientation
A product change strategy entails listening to consumers and their demands if you are a shop importing items to carry out commercial operations. Along with that, consider what consumers are saying about rivals’ offerings in order to uncover their inadequacies in product search and capacity to satisfy demands.
This is attempting to differentiate yourself and provide the market with what your target clients want but cannot find elsewhere.
The behemoth Coca-Cola, with its Diet Coke product, is one example of this method. Diet Coke was created to please customers, yet its moniker draws female users. Coca-Cola developed Coke Zero at the same time, with identical flavour and advantages but positioned and promoted with a significant male market share.
3. Examples of major brand market penetration tactics
3.1 Market penetration strategy of Android
In terms of price, Android is widely recognised for its go-to-market approach. By selling a modest entry-level phone product to entice people away from Apple, which has a large part of the smartphone industry.
3.2 Market penetration strategy of McDonald’s
McDonald’s has long been noted for its aggressive marketing and advertising campaigns. This brand has a wide range of promotional techniques and covers all channels in many nations across the world, from television and radio to events such as the FIFA World Cup or the Olympic Games. McDonald’s has used 23 distinct slogans in their advertising in the United States to far.
3.3 Market penetration strategy of Netflix
Netflix is regarded as a prime example of pricing strategy. Netflix provides new customers with a free one-month subscription.
Of course, this resulted in a big number of complaints, but a large number of people accepted and felt comfortable paying for the following months. Netflix is now the market leader, with 51% of US streaming subscribers.
Nanglife.com would like to discuss the following crucial market penetration strategy considerations with you. We believe that the information provided above will assist you in better understanding this approach, allowing you to maximise reach and income.
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