Question# Explain the strategy refer to as Marketing Penetration Strategies
showcasing the different tactics that can be used by a marketer to follow this
strategy by citing a practical example.
Answer:
In marketing there are so many theories and strategies to use for the specific time and
products. Market penetration is one of the strategies from ansoff’s matrix. In this
marketing strategy both product and the market are old or we can say current market and
current product. For example we can say “EconoDx ball pen” the ball pen introduced by
Econo Company. We have already few ball pen companys at that time in the market but
they came and shake the whole ball pen industry with new look EconoDx ball pen.
Because of econoDx’s introduction his competitors need to think again. This is what
called market penetration where competitors penetrate by the old one came with the new
look.
Market penetration
Market penetration is the name given to a growth strategy where the business focuses on
selling existing products into existing markets. Market penetration seeks to achieve four
main objectives:
• Maintain or increase the market share of current products – this can be achieved
by a combination of competitive pricing strategies, advertising, sales promotion
and perhaps more resources dedicated to personal selling
• Secure dominance of growth markets
• Restructure a mature market by driving out competitors; this would require a
much more aggressive promotional campaign, supported by a pricing strategy
designed to make the market unattractive for competitors
• Increase usage by existing customers – for example by introducing loyalty
schemes
A market penetration marketing strategy is very much about “business as usual”. The
business is focusing on markets and products it knows well. It is likely to have good
information on competitors and on customer needs. It is unlikely, therefore, that this
strategy will require much investment in new market research.
Example of Market penetration:
There are so many products do this penetration strategy often for let the market and the
customers know about the existence of their products. If I am going to pick one I will
pick “lifebuoy shop”. In Bangladesh market Lifebuoy shop introduced by the unilever.
Lifebuoy shop is one of the oldest shops in the market. Through out the life cycle of
lifebuoy shop changes so much. Some times it came with new color some times with new
size and flavor but the focus was always the same “Market penetration”.
Fast Moving Consumer Goods (FMCG) like lifebuoy shop has to be Some requirements
for making an impression in the market for penetrating:
1) Strong distribution channel
2) Minimum profit margin
3) Simple marketing message
4) Lesser-priced packs to increase affordability
5) Packaging in smaller units and localized design that attracts consumers
6) Convenience of storage while use
7) Thorough knowledge of the village psyche
In brief, the strategy revolves around what attracts consumers to a product.
Segmentation and Target market of Lifebuoy shop
Lifebuoy is mainly targeted hardworking people those who relatively earn less money but
give more labor. For example I can say village people. Lifebuoy with its distinct perfume
and catchy jingle was associated with health and well-being, making it the world’s largest
selling soap brand. Its ads carried the message that Lifebuoy washed away germs and
kept one protected and healthy. Now a day’s lifebuoy came up with new color and new
flavor for the different target market but the main target market is still same, lower
middle class people.
Lifebuoy is now an entirely new mix with a superior formulation, fragrance, lather profile
and a contemporary shape. It offers an improved bathing experience and skin feel. The
new Lifebuoy is targeted at today’s astute housewives who seek family health protection.
It made a thoughtful shift in positioning from being a male soap, champ of health to a
family soap with a more reliable health protection against germs for the entire family.
How they penetrate
Lifebuoy use more or less all the marketing tools, such as
• Promotion
• Pricing
• Distribution
• Process
Tactics under the marketing penetration strategy:
• They use sales promotion so effectively that is one of the strong point of lifebuoy
shop. Both the push and pull strategy use by them.
• Extensive distribution is very much there because of segmentation and the target
market of the product.
• Price is very much got able by the target market consumers.
• There message to the target consumer is very clear and so effective. Any one can
understand the message from the lifebuoy. Perfect use of media like TV, radio
and paper is making easy to communicate with the consumers.
Lifebuoy is always in the front line shop for the last three decade in Bangladesh. There
strong distribution channel and the proper segmentation help to get and sustain in the
market as a “Lifebuoy”. Still now lifebuoy is the name which reminds the germless bath
every time. Affective penetration and the implementation is the power of marketing
strategies which Lifebuoy doing since 1895.
