INCREASE MARKET PENETRATION PENETRATION

Inthe CPG industry, market penetration refers to the percentage of potential customers who purchase a specific product or brand within a specific market or geographical region. It is a measure of the market’s adoption or acceptance of a product or brand.

The total number of customers who have purchased a product or brand is divided by the total number of potential customers in the market to calculate market penetration. For example, if a product has 1 million potential customers and 100,000 customers have purchased it, the market penetration rate is 10%.

Market penetration is an important metric for CPG companies because it helps them understand market saturation and growth potential. A high market penetration rate indicates that a product or brand has a strong consumer appeal and is well-established in the market, whereas a low market penetration rate may indicate that there is room for expansion and growth.

CPG companies may use a variety of marketing and sales strategies to increase market penetration, such as targeted advertising, price promotions, product innovation, and expanding distribution channels. Companies can increase sales volume, capture a larger share of the market, and strengthen their competitive position by increasing market penetration.

Here’s how you can leverage image recognition AI to increase the market penetration of your company:

Identify market gaps and opportunities: Image recognition can be used in retail stores to analyze product placement and shelf space. CPG companies can identify market gaps and opportunities for expansion by analyzing the SKUs that are selling well and which products are underrepresented or not available in certain stores.

Image recognition can assist CPG companies in ensuring that their products are placed in the most visible and interactive locations in stores, such as at eye level or near the checkout. Companies can increase visibility and attract more customers by optimizing product placement.

Improve inventory management: CPG companies can ensure that they have the right products in stock to meet demand by using image recognition to monitor inventory levels and sales performance in real time. This can aid in avoiding stockouts and ensuring that customers have access to the products they desire.