When an existing product is used to reach a new market segment (new target market), the company is using a market penetration growth strategy.
Market penetration refers to the successful sale of goods or services in a particular market. It is measured by the level of sales volume of existing goods or services compared to the overall target market for that product or service.
Market Penetration is a measure of how well a product or service is used by customers compared to the estimated total market for the product or service. Market penetration can also be used to develop strategies to increase the market share of a particular product or service.
For example, if you estimate that about 50,000 people will need your product/service and you made about 20,000 sales, your market penetration is 40%.
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