Market Penetration Strategy
When developing a new business, product or service, it is very common for business people to focus more on the development details than the market penetration strategy. As each new market entry comes in to solve a problem or offer a solution that would do things better or cheaper than the existing ones, it is critical to have the exact positioning of the new proposal clearly identified.
To accurately understand the positioning of a new offering we need to realize if it creates a new market (like the iphone did creating the smartphone market), if it expands an existing market (like pepsi did in the non-alcoholic beverage market), if it intends to steal a piece of a market served by someone else (like a new barber does opening a new barber shop in a town that already has ten) or if it combines more than one of the above. To evaluate the existing market we need to define the overall size, the share each competitor holds and their role.
A consumer behavior analysis will determine what consumers think of each existing offering and predict each customer group reactions on the new market proposition.
The outcomes of this analysis combined with the aims of the new market entry will allow the formation of an effective strategy to exploit the weaknesses of the competitive offers and generate sales. This strategy will define the message, the aims, the mediums, the budget, the roles of people that will work on it and the timing each target market will be communicated. To be effective, every strategy has to be aligned with the quantified findings considering all individual particularities and competitive advantages of the specific case.