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Penetration
Definition
The percentage of households or consumers that purchase a product, brand, or category within a defined period. Penetration measures reach and buyer base size, not purchase frequency.
How It's Calculated
(Number of purchasing households ÷ Total households in the market) × 100
Example
A cereal brand is purchased by 2 million households out of 10 million total households in the market, resulting in 20% penetration.
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