Increase your product’s market share by knowing the market penetration of the Generic

Reza Bin Zaid

Retain or increase your product’s market share by knowing the market penetration of the Generic

Prof. Reza Bin Zaid, PhD

Market penetration is the measurement of the number of prescription of a generic compared to the total theoretical prescriptions. Market penetration of a generic focuses on measuring the relevance/ needs of a generic, in terms of usage by a specific specialty, in a given period of time.

Higher the market penetration for a generic indicates the potential for increasing prescription by a specific specialty. In other words, smaller the market penetration of the product, the more the company should invest, in its strategy for marketing that product.

How could you use market penetration?

A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share.

Penetration strategy is the concept of taking aggressive action to greatly expand one's share of the total sales in a market. The resulting increased sales volume typically allows a business to produce goods or obtain merchandise at lower cost, thereby allowing it to generate a higher profit percentage.


Market penetration refers to the successful prescription of a product in a specific market. It is measured by the number of doctors who prescribed a particular brand divided by the relevant market size, expressed as a percentage.

An example, if 500 doctors out of 100,000 prescribed a brand, the brand penetration rate is 0.005 (500/100,000), or 0.5 percent.


The aim of the market penetration is to use your product effectively, enter the market as quickly as possible and seize a large market share.... Also, if there is a business plan to increase market penetration, it is important to implement certain tactics & strategies that will increase your sales and decrease the competitors.



Market penetration is one of the four alternative growth strategies in the Ansoff Matrix.

A market penetration strategy involves focusing on promoting your existing brand into your existing markets to gain a higher market share. This is the first strategy most company will consider because it carries the lowest amount of risk.

This strategy of promoting more to the current prescribers and to the new prescribers who can be thought of being in the same therapeutic purposes.

For example, if your current prescriber base consists of Gastroenterologist for therapeutic indication of Rabeprazole then this strategy would involve attempting to promote more of your existing brand to the same group.


One key constraint is that, you cannot allow anything in your drive, to grow your market share to compromise your existing success. You need to be aware of, what has made the product a success so far and ensure that nothing you do, that will undermine it.

You should give this strategy a careful consideration, if you are not in a position to invest heavily or you are not comfortable with taking risks, as the amount of risks associated with this strategy is relatively low.


There are four approaches you can adopt when implementing this strategy:

Maintain or increase the market share of current products

You can achieve this by adopting a strategy that is made up with a combination of growth-share matrix in the BCG. MedAnalytics uses BCG matrix to understand the necessity of investment of a brand- “When and why need to invest for a brand”   This would involve focusing on investment, cash generation and part of PLC management. This part of marketing is responsible for managing the promotion of the product to secure dominance in the growth.


Secure dominance of growth markets

An approach you can take is to identify a new specialty for your product, for example, you found in the market penetration report that Dentistry and Dental surgeon group need to prescribe Rabeprazole with NSAIDS frequently. An excellent decision of such strategy would be to invest in that new category of your brand prescribers and then aggressively market your brand to that specialty group.

Your role in the discussion as a senior executive will be, to define their strategy to provide the market intelligence to the executive team that helps the current dynamics of the market. The data you provide will help the team to decide whether a growth of the market is an extension of the current market or it is truly a 'new' market. This decision of investment is likely to be based on, how your organization is going to approach in this growth market.


Restructure a mature market by driving out competitors

You may find your brand in a mature or saturated market but to achieve further market share requires a different approach. This strategy requires an aggressive promotional campaign, supported by a strategy that will be designed to make the market unattractive for smaller competitors.

With a mature market there are no more specialty sectors to exploit and the only way to attain the market share is to take it from the competitors. Examples of this strategy can be seen in some of the brands, where the larger players now dominated. More recently there has been the introduction of loyalty campaigns, where the company compete for the market share through doctors’ loyalty programs.


Increase usage by existing prescribers

Another approach of market penetration is to persuade your existing doctors to prescribe your brand more frequently. There are several tactics you could use to do this, including the loyalty schemes, adding value to the current brand by promoting the “detailing mixture” or making brand extension to the generic that encourage greater use.

The aim of the tactics of this approach to 'tie in' your prescribers to your brand by making it more difficult for them to move to another competitor’s brand. The ability of your company to achieve higher usage by prescribers can be greatly enhanced by rapidly changing technologies (brand extension) that encourage prescribers to upgrade or offer more reasons to use the brand.

A good example of this would be Multivitamins: extensions are now upgraded with the addition of new features and capabilities like Multivitamin with minerals, for old, for adult, for teen-him/ her, and for kids-chewable form. A successful market penetration strategy requires to understand market situation of your brand and competitor’s brand.


It relies on you, having a successful product in the market which you already know well.


The key role you are asked to perform is to capture the intelligence that is required to make informed decisions. Understanding why this information is being asked will help you to capture and deliver the most relevant and significant information’s.


Key Points

               Market penetration involves focusing on promoting your existing brand into your existing market to gain a higher market share.

               This can be achieved in four ways: maintaining or increasing the market share of current brand; securing the dominance of growth markets; restructuring a mature market by driving out competitors; or increasing the usage by existing customers.