How to successfully penetrate the market with the right global strategy

Expanding into new markets is one of the most effective ways for businesses to grow. However, global expansion without a clear, strategic plan can expose companies to risk and inefficiency. That’s where a well-crafted market penetration strategy comes in.

This guide will explore market penetration and how to calculate it, as well as proven strategies for success. You’ll also find real-world examples of companies that have penetrated international markets to grow their global footprint.

What is market penetration, and how do you calculate it?

Market penetration measures the ratio of consumers who have adopted a product or service compared to the total estimated market size. It may also be referred to as “product penetration.”

This metric helps you determine how much room there is to grow with your existing product—and whether further marketing efforts might help expand your customer base. For global brands, improving market penetration often requires increasing the sales of existing products in established regional markets through localization and tailored messaging.

Market penetration is one of the four approaches to growth outlined in the Ansoff matrix, a planning tool that helps companies determine their product and market growth strategies.

Among these tactics, pursuing market penetration is typically the least risky, as it focuses on selling more of the same product in familiar or slightly adjusted ways.

Evaluating market penetration

You can calculate market penetration percentage using the following formula:

Market penetration rate = (Current customers / Total target market size) X 100

For example, if your company has 10,000 active users in a market with 100,000 potential users, the market penetration rate is 10%.

You can then benchmark this rate against industry norms. A relatively high market penetration rate in a large, competitive space can indicate strong product-market fit and effective brand presence. On the other hand, low rates may highlight an opportunity for better positioning or regional adaptation.

The benefits and pitfalls of market penetration techniques

When executed well, market penetration strategies can provide a robust foundation for sustainable growth. The benefits for global brands include:

• Low risk, high potential: Focusing on an existing product reduces the need for R&D and new infrastructure. Your company can capitalize on what it already does well, maximizing ROI from proven offerings.
• Cost-effective growth: Increasing sales within existing target markets often costs less than entering a completely unfamiliar space. Scaling established marketing efforts and fine-tuning local messaging can yield outsized returns.
• Brand loyalty boost: Market saturation efforts can strengthen your position and deepen trust among your customer base. A consistent presence—paired with culturally relevant messaging—fosters brand advocacy and long-term loyalty.

However, a market penetration strategy is not without challenges. These include:

• Market saturation: Without innovation, companies risk stagnation. Once you’ve maximized market share in a given region, growth slows unless you expand geographically or diversify your offerings.
• Price wars: Competing in a saturated space may necessitate discounts and reduced margins. Lower prices may devalue your product in the eyes of consumers, making premium repositioning more difficult in the future.
• Competitor response: A strong push to increase market share may prompt resistance from established competitors via increased advertising spend, price undercutting, or loyalty schemes designed to lock in existing customers.

5 proven global market penetration strategies

Here are several proven tactics that global businesses use to increase revenue and drive growth through market penetration:

1. Localize website and marketing content

One of the most effective ways to increase brand awareness and penetrate new markets is to translate your website and tailor your messaging to local expectations. Customers are far more likely to engage with and purchase from brands that speak their language and understand their culture.

Effective översättning av webbplatser and localization open the door to untapped audiences while maintaining a consistent brand experience across channels. Smartling’s localization services automate and manage translation workflows, reducing time to market and improving your international messaging. 

2. Add new distribution channels

Additional distribution channels help global brands adapt to local purchasing preferences and reach a broader audience. This diversification strategy takes careful planning, but it can significantly increase visibility and long-term business growth.

The aim is to create more ways for customers to access your product or service. For example, listing products on regionally popular platforms—like Shopee in Southeast Asia or Mercado Libre in Latin America—exposes your brand to audiences that may not visit your website or use your existing sales channels.

3. Optimize your pricing strategy

One of the best ways to attract a higher market share is to adjust your prices to align with local buying behaviors. This could mean selling products or services at a lower price than competitors (“penetration pricing”) or tweaking prices based on regional economic conditions (“geographical pricing”).

Penetration pricing aims to attract price-sensitive customers and build initial brand recognition. It’s a particularly effective strategy in emerging markets or regions with strong local competition. By capturing attention early, companies can quickly establish brand loyalty and later upsell higher-margin products or services.

However, a penetration pricing strategy requires careful cost control and a long-term plan to maintain profitability. A poor pricing strategy without follow-through can erode brand equity and encourage churn.

4. Run promotional campaigns and offer rewards

Persistent advertising, limited-time offers, and generous referral bonuses can rapidly expand your customer base. These tactics increase product visibility and give consumers a reason to choose your brand over others—especially if deals and marketing campaigns cater to regional motivations and values.

However, overusing promotions may devalue your product or service in the eyes of customers. It can also attract customers outside your target audience who are less likely to stick around for a long-term relationship. Incentives are just one aspect of a sustainable international business strategy.

5. Localize or rebrand your product

Aligning your branding with local values and pain points increases the likelihood of adoption. By listening to your customers and tracking competitor activity, you can pinpoint essential messaging that appeals to the target market.

And localization goes beyond language. It’s about tailoring the entire customer experience to ensure your offerings feel native and trustworthy in each market. Even subtle changes (e.g., adapting color schemes or marketing copy) can have a significant impact, but some companies choose to employ a multidomestic strategy and completely rebrand in new markets.

Market penetration examples that drove real business growth

Several global companies have achieved remarkable success through international go-to-market strategies that incorporate innovative market penetration efforts. Here are a few highlights:

Coca-Cola

Coca-Cola’s global marketing strategy showcases the importance of cultural adaptation and language-specific messaging. The beverage giant’s consistent branding and localized advertising have helped it build dominance in countless new markets.

For example, Coca-Cola’s “Share a Coke” campaign prints common names onto each can and bottle, encouraging a personal connection with their product. The list of names varies across regions, honoring local cultures while tying them to a global phenomenon.

Heavy investment in market penetration efforts has helped Coca-Cola remain the world’s most successful soft drink company, with over $47 billion in operating revenue in 2024.

Netflix

Netflix uses data analytics and personalized content recommendations to deepen its product penetration in the streaming sector. To power international growth, Netflix also invests in original content for local audiences; for instance, the show “Money Heist” helped the streaming giant break into Spanish-speaking markets. Despite numerous competitors, Netflix’s global market penetration strategy helps the brand continue to expand its subscriber base.

Airbnb

Airbnb’s market penetration strategy hinges on localization, which makes its platform feel native in each region. To establish cultural relevance and deepen adoption, the company provides its interface, customer support, and marketing materials in local languages.

In China, Airbnb rebranded under the name “Aibiying,” which translates to “welcome each other with love.” The company also integrated local payment systems like Alipay and WeChat Pay to reduce friction for Chinese users. These initiatives help Airbnb significantly increase its visibility and usage in highly competitive markets, demonstrating how localization directly supports market penetration.

Achieve successful market penetration with Smartling

Reaching new customers doesn’t always require new products. Sometimes, you just have to speak their language.

Localization is a crucial growth enabler, whether you’re entering a new market or looking to increase market share within existing audiences. Translating your content and adapting your messaging helps unlock regions previously out of reach.

Smartling’s translation services help global companies launch faster, connect authentically, and deliver on-brand experiences in every market. By combining AI-powered translation tools and professional language expertise, Smartling enables increased global impact while reducing costs.

Learn more about how Smartling supports high-performing multilingual marketing strategies.