Penetration strategy, in the context of retail, is a business approach aimed at increasing a company’s market share by attracting new customers to its products or services.
It typically involves targeted actions to increase brand awareness, attract consumer attention, and drive sales.
The goal is to secure a strong foothold in the market and potentially deter competitors. This strategy often involves sacrificing immediate profit margins to achieve long-term growth and customer loyalty. It can lead to increased brand recognition, customer engagement, and market dominance. However, it requires careful planning to ensure sustainable profitability once the initial penetration phase is successful.
