Market penetration
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Market penetration is one of the four growth strategies as defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service.
Other growth strategies include:
- Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers.
- Market development (new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes.
- Diversification (new markets, new products): Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications.
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