RestaurantA vegetarian restaurant in a small town estimates that there are 12,000 vegetarians in the area. They have 1,200 unique customers in a year. They estimate their market penetration as follows:penetration = (1,200 / 12,000) x 100 = 10%The restaurant decides to invest in local advertising to reach more customers.
Business ServicesA telecom company has identified 1,300 corporate customers as their target market. They currently have signed 883 customers. They calculate their market penetration as:penetration = (883 / 1,300) x 100 = 67.9%The firm decides to expand their distribution to reach a broader target market.
Fast Moving Consumer GoodsA market research firm estimates the percentage of total customers in a nation that have purchased a variety of branded consumer products each quarter. Firms use this information to evaluate their customer base and develop strategies in areas such as advertising and promotion.
|Overview: Market Penetration
The percentage of a target market that purchase a product, service or brand in a period of time.