Penetration strategy example

There are many market penetration examples that have been tried and tested for retail expansion strategies. And the recipe for success is always different. Market penetration can be understood as a strategy to enter into a new market. Professionals from the retail space should always consider applying both definitions to their expansion plans for the best results. A market penetration strategy can be broken down into tactics that must be aligned with favourable market conditions.

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Market Penetration

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6 Market Penetration Examples for Successful Expansion | Geoblink

In a market heavily driven by consumer trust and brand loyalty, many consumers are reluctant to switch brands or try new products. The barriers to entry in a retail market are very high both due to the heavy competition and demanding consumer base. Retailers need to think outside the box to make waves in the market to catch the attention of potential customers and convert them into loyal consumers. Penetration pricing introduces customers to a new product at a steep discount, and often at a loss to the merchant. Businesses use this strategy to attract customers to a new product or service to win market share. Here are five examples of penetration pricing strategies being put to work.
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6 Market penetration examples for successful expansion

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Under Armour promotes its products through sponsorship agreements with celebrity athletes, professional teams, and college athletic teams. Market penetration requires strong execution in pricing, promotion, and distribution in order to grow market share. Under Armour is a good example of a company that has demonstrated successful market penetration.
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