Published: 01.28.2022


Market Penetration

Market penetration is a measurement of the size of a potential market compared to the percentage of that total business by one company. For example, if there are 10 million soda drinkers in the U.S. and 8 million of those drink Coke, then Coke has an 80% market penetration. This also shows that Coke has 20% more available market share to go after and steal away from Pepsi. Companies with a lower-than-desired market penetration can embark on a strategy to increase that number by going after customers of a competitor.