Penetration into New Market Segment - A Review (2015)

AbstractMarket penetration has always been a vital challenge for the companies targeting a new segment. Samsung has outnumbered Nokia by introducing dual-sim technology and Android operating system in mobile-phones. Haldiram has been a dominant player in fastfood category in spite of the presence of McDonald's, KFC, Domino's in Indian Market. Sensodyne and Colgate Sensitive are the two brands struggling to make a mark in the midst of low-pricing oral care segment. Bajaj Scooters in India has experienced marketing myopia in spite of being a fast-mover in the two-wheeler segment. Keeping in view the problems faced by different sectors in the industry, a multiple qualitative case analysis has been done considering the innovative practice cases as previous knowledge. A site-ordered effects matrix model has been derived out of the cases about established market-players in the industry for finding out solutions to problems related to market penetration faced by the companies in FMCG, Automotive, Banking, Consumer Electronics, Real Estate, QSR segments.Keywords: Customer Engagement, Brand Revitalization, Affiliate Marketing, Upselling.IntroductionMarket Penetration has always been a key issue for launching any product or service especially for companies where competitors already exist. Positioning and differentiation creates a great impact when it comes to market penetration. Earlier, Samsung has outnumbered Nokia by introducing dual-sim card technology and Android operating system in mobile-phones. Samsung's extensive portfolio offering a range of handsets across price points and screen sizes has given it the edge over Nokia. It ended the 2013 financial year with revenues of Rs. 11, 328 crore, a growth of 43.6% as per the Voice and Data survey22. The oral care industry has not been able to retain its customers in the sensitive toothpaste category. Experts feel sensitive toothpaste brands like Sensodyne, Colgate Sensitive hit the mark initially but consumers switched to regular ones after early trials . It has also been observed that in Quick Service Restaurant (QSR) category, despite the profusion of MNC (Multinational Coiporation) brands with high cool quotient like McDonald's, KFC, Domino's; good old-fashioned Indian offerings from Haldiram's still dominating the Indian Market.Haldiram's presence has been felt both in ubiquitous casual dining eateries and packaged snacks. Every product of Haldiram is made in-house14.A slow-moving winter has affected the FMCG players viz. Emami, Dabur, Woodland. Sales of almost 20 products including cold creams, body lotions, specialized face-care creams, lip balm, chyawanprash, dry fruits and sweets such as chikki are down by 5-7% across general trade while sales of woollens including jackets and footwear such as boots are down by about 20% according to marketers and trade sources3. Two-wheeler scooter industry has been going through a changing phase. Most of the market-players like TVS, Piaggio, Honda, Hero Motors and Yahama have re-invented their scooters with innovative features and customer loyalty programmes. Two decades ago, Bajaj has been the key player in the two-wheeler scooter segment. Suddenly they have decided to stop producing scooters, which have been ruling the Indian roads from 1950-2000 as a result of technology obsolescence and redirected their focus on manufacturing and marketing of motorcycles20. The study has been conducted during the year 2014-2015 to identify the innovative practices implemented by the companies while penetrating a new market segment.Review of LiteratureA study has explored the factors that influence the launch of brands into new markets in a global environment. It incorporates multiple indicators of activities that can contribute to experiential learning relevant for launching brands in a global marketplace. Market attractiveness positively influences the propensity of a brand to be launched into a new market. …