Businesses often rely on advertising and marketing to attract and sell to specific demographic groups in their markets.
If your market is saturated, you may need to find another approach to drive out competitors.
Most businesses will at some point consider this strategy since, according to the Ansoff matrix, it carries the lowest amount of risk.
It can be especially helpful in the early stages of starting up.
To devise a good market penetration strategy, you must have a successful product and a detailed knowledge of your market.
You must also thoroughly understand your competitors.Unit sales can also be used if you're products are at a completely different price level than the competition such as a 0 mobile device with a strategy to take the market of a 00 mobile device.For example, if you sell 1 million devices in a market where a total of 4.4 million devices are sold: © 2010-2019 Simplicable. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.Don't worry if there is competition because it's a sign that there is a market for what you want to offer.At the same time, if there is a lot of competition, or a company that gets the lion's share of the business, you need to know that and figure out how you can edge your way in.A third way to measure a market is using unit sales.This is done when you have better unit sales data than revenue data for a market.The Market Analysis section also needs to include the percentage of market share you envision and why.Writing the business plan can seem tedious and sometimes overwhelming.Total market size can be calculated or estimated using data provided by governments, industry groups or market research firms.In many cases, the revenue of your competitors is available in their public financial disclosures and press releases.