There is a lot of competition in the market. Customers are divided among your competitors.  So, how will you acquire all the customers (including competitors’ customers) using the same products and services? The answer is ‘Market Penetration’! Market penetration means acquiring the complete market.  The more you penetrate in the market, you will get: ► More Economies of Scale ► Cost Advantage ► Bulk Production ► Manage Costing ► Lower Price ► Bargaining Power When such a large economies of scale comes, you get the budget to do advertising & promotion. Advertising & Promotion helps you to: ► Increase the Market Share ► Gain Customers ► Improve Brand Image ► Become the Preferred Product Once you are able to increase your market penetration, it becomes easy for you to bring new products because your working capital is saved and you have extra revenues.  For example, Maggi has a market share of 60%. So, it is able to bring new products like Atta Noodles, Pazzta, Dip & Spread, Sauces, Oats Masala Noodle, Baked Sweet Corn Noodle, Atta Masala Noodle, Peri Peri Noodle, and Barbeque Noodle.   **Strategies for Market Penetration** There are various methods and strategies to grow a business like Geographical Expansion, Merger & Acquisition, Strategic Alliance, New Product Development, Diversify Business, Turn aroundManagement, etc. However, all these strategies are costly. In market penetration, you neither have to spend a lot of money nor have to make a big acquisition. Here are 10 strategies that will help you to penetrate in the market.   # **Attract and Create New Customers in the Market** Some customers do not buy your products due to high price. How will you acquire such customers? For example, a middle-class man will not buy an AC due to high price. But, if you give the AC on EMI at zero interest, then he will buy it. For this, you can get into partnership with small banks and credit card companies. If you start acquiring new customers, you are selling the same product or service to more customers and thus, your market share will increase drastically.  # **Technology Integration to Gain Competitors’ Customers** It is very easy to kill an unorganized market using technology.  So, if you are a player of unorganized market, then you can incorporate technology to increase your market penetration and market share. When you integrate technology in your business, you will get customer database that will help to re-market, re-position, develop loyalty programs, and new schemes to bring back your existing customers. Technology will also help you to expand your business easily because it will help you to manage your multiple offices and branches.  # **Innovative Schemes of Pricing and Positioning** You need to identify the way through which you can sell your products at a lower price than your competitors. This will help you to acquire your competitors’ customers. These customers will come to buy one or two products and will buy several other products as well. You need to develop innovative schemes like Buy One Get One Free, Diwali Offers, Festival Offers, etc. to attract your competitors’ customers. In a scheme like Buy 2 Get 5 Free, the two shirts bought are at full price while the 5 free shirts are of low price so it got adjusted.  Such schemes will help you to increase your market penetration and thereby, market share.  Discounting is of two types – **i) Helpless discount –** This discount is given by the companies because their product is not selling in the market. **ii) Strategic discount –** This discount is given after determining how you can bring back the discounted money later.  However, the strategic discount works only in case of a loyal customer because he will definitely come back to you.  If you give the discount to a new customer, then there are chances that he/she will not come back to you. In such a case, you will incur losses. If you have built recurring revenue, then the discount will work and you can increase your market penetration. # **Strategy to Increase the Usage** You need to do something to increase the usage of your product or service. This will increase your market penetration and market share. For example, Colgate has increased the size of the top (or mouth) of the toothpaste tube to increase the quantity of the toothpaste dispensed. As the usage of toothpaste has increased, so, the toothpaste gets empty soon and the customer needs to purchase the new tube more frequently. Some of the ways to increase the usage of your product or service are:  ► Use the gun and bullet strategy, which means if you are buying a gun, then you need to buy the bullets. Similarly, if you are buying a game, you need to buy the CD and if you are buying a razor, you need to buy the blade. ► Use schemes like exchange schemes during festivals, offers on festivals, etc. to increase # **Improving the Imperfection of Innovator** A unique or innovative product may have some imperfections. You can correct these imperfections and bring up a new product to the market. As your product does not have the imperfections, so, your product will be sold more.  For example, Vodafone, Airtel, Idea, and Reliance Communications were in the market but Mukesh Ambani has corrected the imperfections in these mobile networks and come up with a new network, Jio, and become more popular.  All the other mobile networks have old technology and 3.5G while Jio has new technology and 4G and 5G. # **Focus on Intangible Service Dimension** Sometimes, companies only think about the product and forget the after-sales service. You can make your after sales service so good that customer buys the product only from you to get such services. # **Sales and Delivery Innovation** Sometimes, you cannot change the product as you are not the manufacturer; you are only selling or delivering the product.  In such a case, you can bring innovation in the sales and delivery of the product.  For example, Amazon is a glorified logistics company that has delivered products from Leh-Ladakh to Andaman & Nicobar and from Ahemdabad to Agartala. They have done overnight delivery and now they are coming up with drone delivery.  # **Accessibility through Distribution Network** Start building good relationships with your distributor and retailer. This will help you to enter the distribution network. For example, Oppo and Vivo are entering the tier 2 and tier 3 cities and rural areas by building relations with distributors, giving good margins to retailers, providing training to promoters, etc. This has increased their market penetration. Similarly, when ITC Limited introduced Bingo Mad Angles, the complete chips market was captured by Lays Chips. So, ITC Limited started distributing the Bingo Mad Angles on the Local Cigarette Shops. It gets empowered by making good relations with the distributors. # **Advantage of Mind Share to Market Share** Develop some low-cost marketing ideas that help you to enter in the minds of your customers. If you are able to enter the minds of your customers, then your market share will increase automatically.  For example, when there were frequent floods in Chennai, Aircel used an advertisement in which it showed a boat that will save you at the time of emergencies. During floods, there were Aircel boats to rescue the people. So, during the news of floods, their boats are also shown on the television. This helps the company in branding and the support given by it during the emergency gets registered in the minds of the people. Thus, the market share of the company has increased in the South. # **Share of Preference and Brand Voice** Increase your brand equity by doing so much advertisement that the brand gets registered permanently in the minds of the customers. This is called the voice of the brand.  For example, Patanjali has sponsored all the prime time shows on television. So, Patanjali advertisements are shown in all these shows. As a result, the products get registered in the minds of the customers. This increases the sales of Patanjali products.