Market penetration strategies

More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. Consider the case of KFC who opened its first Chinese restaurant in Tiananmen Square in The time and effort spent with branding strategies, market research, and local competitor analyses stand to push back to the date for achieving the full return on the initial market penetration investment. It relies on you having successful products in a market that you already know well. Market Penetration in a Saturated Market Market saturation is one of the primary limitations to market penetration. Restructure a mature market by driving out competitors Many organizations find themselves in a mature or saturated market and to achieve further market share requires a different approach.

Therefore, if there are two players in the market, the first entrant will have a market share of 59 percent and the second entrant will have a market share of 41 percent which is 70 percent of 59 percent. New Products for New Customers. Knowing the the general area in geographic terms like radius helps to determine the gross population of potential customers.