Definition: Market Penetration is a measure of the amount of sales or adoption of a product or service compared to the total market wallet for that product or service.

Example: The Fast Moving Consumer Goods (FMCG) giant’s market penetration strategy involved providing branded refrigerators to shopkeepers which they would then only stock with the company’s products.

Business Insight:  Market penetration when quantified can be used to determine the success of a company’s marketing techniques, as well as provide insight into how its product is perceived by consumers in comparison to an identical/similar product of a competitor.